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<regulation prefix="Regulation" num=".13" citation="COMAR 36.03.02.13" title_num="36" subtitle_num="03" chapter_num="02" heading="Manufacturer Licenses.">
  <paragraph num="A.">
    <text>General.</text>
    <paragraph num="(1)">
      <text>Unless a manufacturer holds a valid manufacturer’s license issued by the Commission or Agency staff before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, table game device, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals or table games under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The following persons must meet the Commission's manufacturer license requirements:</text>
      <paragraph num="(a)">
        <text>A manufacturer; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Each person that owns, controls, or is a representative of a manufacturer.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Qualification Requirements. Agency staff may issue a manufacturer license to a manufacturer that has:</text>
    <paragraph num="(1)">
      <text>Paid the application and license fee under §C of this regulation;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Unless exempt, obtained a bond required under Regulation .15 of this chapter;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Furnished the Commission or Agency staff with the information and documentation required under this chapter;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Established by clear and convincing evidence that each person identified in §A(2) of this regulation has:</text>
      <paragraph num="(a)">
        <text>Qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Provided the Commission or Agency staff with sufficient information to establish that the manufacturer has otherwise qualified for a manufacturer license; and</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Established that its system, associated equipment or software, or goods or services meet the specifications and procedures in COMAR 36.03.12.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Application and License Fees.</text>
    <paragraph num="(1)">
      <text>The application fee for a:</text>
      <paragraph num="(a)">
        <text>Tier 1 manufacturer is $10,000; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Tier 2 manufacturer is $1,200.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The license fee or a:</text>
      <paragraph num="(a)">
        <text>Tier 1 manufacturer of a central monitor and control system is $25,000;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Tier 1 manufacturer of a video lottery terminal or table game equipment is $5,000;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Tier 1 manufacturer of associated equipment and software in §C(2)(a) or (b) of this regulation is $5,000;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Tier 1 manufacturer that distributes or resells a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software is $1,000; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Tier 2 manufacturer is $800.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>The manufacturer license authorizes the licensee to manufacture or distribute a video lottery terminal, table game equipment, central monitor and control system, and associated equipment and software to the Commission or a facility operator in the State.</text>
  </paragraph>
  <paragraph num="E.">
    <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.</text>
  </paragraph>
  <paragraph num="F.">
    <text>Term; Renewal; License Renewal Fee.</text>
    <paragraph num="(1)">
      <text>The term of a Tier 1 and Tier 2 manufacturer license is 5 years from the date of initial licensure.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commission may stagger the terms of licenses.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Agency staff may renew the license if the manufacturer licensee:</text>
      <paragraph num="(a)">
        <text>Submits an application for renewal to the Commission at least 6 months before the manufacturer’s license expires;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Continues to comply with all licensing requirements;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Submits to a background investigation under Regulation .05 of this chapter; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Pays a license renewal fee.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>The license renewal fee for a:</text>
      <paragraph num="(a)">
        <text>Tier 1 manufacturer of a central monitor and control system is $25,000;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Except as provided in §F(4)(a) of this regulation, Tier 1 manufacturer is $5,000; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Tier 2 manufacturer is $800.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Background Investigation Deposit.</text>
    <paragraph num="(1)">
      <text>A $2,000 background investigation deposit is required at the time an applicant files a manufacturer license application.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>If the deposit is exhausted prior to completion of the background investigation, the applicant will be billed for any additional investigative costs the Commission incurs.</text>
    </paragraph>
  </paragraph>
</regulation>