General. If a video lottery operation licensee engages a Tier 1 or Tier 2 contractor to provide services described in COMAR 36.03.01.02B(2), the contractor shall qualify under the standards and provisions set forth in State Government Article, §§9-1A-07 and 9-1A-08, Annotated Code of Maryland. Qualification Requirements. Agency staff may issue Tier 1 or Tier 2 a contractor license to a person that has provided the Commission or Agency staff with sufficient information to establish by clear and convincing evidence that it: Is qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and Has not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland. The Commission may charge a Tier 1 or Tier 2 contractor for the administrative costs associated with performing a background investigation. Application and License Fees. For a Tier 1 contractor: The application fee is $1,500; The license fee is $2,500; and The Background investigation deposit is $2,000. For a Tier 2 contractor: The application fee is $750; The license fee is $800; and The background investigation deposit is $2,000. Term; Renewal; Fees. The term of a Tier 1 and Tier 2 contractor license is 5 years from the date of the initial licensure. The Commission may stagger the terms of licenses. Agency staff may renew the license if the contractor licensee: Submits an application for renewal to the Commission at least 6 months before the contractor's license expires; Continues to comply with all licensing requirements; Submits to a background investigation under Regulation .05 of this chapter; and Pays a license renewal fee. The license renewal fee for a: Tier 1 contractor is $2,500; and Tier 2 contractor is $800. The background investigation deposit for license renewal of a Tier 1 or Tier 2 contractor is $2,000. A Tier 1 and Tier 2 contractor is exempt from: Bond requirements under Regulation .15 of this chapter; and Labor peace agreement requirements under State Government Article, §9-1A-07(c)(7)(v), Annotated Code of Maryland, unless the contractor is engaged: As a lessee; As a tenant; or Under a management agreement.