# COMAR Title 36 — Maryland State Lottery and Gaming Control Agency

## Subtitle 03 — Gaming Provisions

### Chapter 02 — Investigation and Licensing

**Authority:** : State Government Article, §§9-1A-01, 9-1A-02, 9-1A-04, 9-1A-06, 9-1A-07, 9-1A-12—9-1A-16, 9-1A-19, 9-1A-20, and 9-1A-24, Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.18 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013

**Administrative History:** Regulations .01—.18 adopted effective August 19, 2013 (40:16 Md. R. 1347)

**Administrative History:** Regulation .01 amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .01A, C amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)

**Administrative History:** Regulation .02 amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .02B amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)

**Administrative History:** Regulation .03A amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .04 amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation                                          October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .06M adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .11 amended effective September 26, 2016 (43:19 Md. R. 1073)

**Administrative History:** Regulation .12 amended effective August 18, 2014 (41:16 Md. R. 947)

**Administrative History:** Regulation .12 amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)

**Administrative History:** Regulation .12 amended effective March 14, 2016 (43:5 Md. R. 388)

**Administrative History:** Regulation .12 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .12A, E amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .12H, I amended effective December 12, 2013 (40:24 Md. R. 2018)

**Administrative History:** Regulation .13 amended effective December 12, 2013 (40:24 Md. R. 2018)

**Administrative History:** Regulation .13 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .13C amended effective March 14, 2016 (43:5 Md. R. 388)

**Administrative History:** Regulation .14 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .14B, E amended effective December 12, 2013 (40:24 Md. R. 2018)

**Administrative History:** Regulation .14D, E amended effective March 14, 2016 (43:5 Md. R. 388)

**Administrative History:** Regulation .16A amended effective March 14, 2016 (43:5 Md. R. 388)

**Administrative History:** Regulation .16A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .17 amended effective July 4, 2016 (43:13 Md. R. 714)

**Administrative History:** Regulation .17 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

**Administrative History:** Regulation .17C amended effective September 6, 2021 (48:18 Md. R. 695)

**Administrative History:** Regulation .17D amended effective October 19, 2020 (47:21 Md. R. 905)

**Administrative History:** Regulation .18C—E amended effective September 26, 2016 (43:19 Md. R. 1073)

**Administrative History:** Regulation .18E amended effective October 19, 2020 (47:21 Md. R. 905)

#### Regulation .01 Process.

*COMAR 36.03.02.01*

A. General Provisions.

  (1) Upon filing of an application for a license under this chapter other than an operation license, the applicant shall pay a nonrefundable application fee established by the Commission.

  (2) If a license application must be submitted to the Commission by a particular date, the application documents shall be delivered to the Commission not later than 5 p.m. on the last day of this period, and an application submitted after the deadline may not be accepted or considered by the Commission.

  (3) An applicant may not submit an application less than 1 year after the Commission has:

    (a) Taken final action on a license denial of a previous license application involving the applicant;

    (b) Taken final action on a sanction resulting in revocation of a previous license application involving the applicant; or

    (c) Provided an individual with written notice of termination of a temporary license.

B. Applications.

  (1) Documents submitted to the Commission or the Location Commission under this chapter shall consist of an original and the number of copies required by the relevant commission and shall be in the electronic format required by the relevant commission.

  (2) Documents and information submitted to the Commission or the Location Commission in a license application shall be sworn before a notary public as to their truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant.

  (3) Upon receipt of an application by the Commission, the Commission staff shall review the application to determine whether it contains all the information required under this chapter.

  (4) If the Commission determines that the required information has not been submitted, the Commission staff shall notify the applicant in writing and state the nature of the deficiency.

  (5) An applicant notified in accordance with §B(4) of this regulation may submit the documents necessary to complete the application not later than 15 days after issuance of the notification.

  (6) The Commission may not consider the application of an applicant who is notified in accordance with §B(4) of this regulation and who fails to submit the requested documents in a timely manner.

  (7) The Commission shall consider a timely, complete application.

C. Changes in Application.

  (1) If information submitted by an applicant as part of a license application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Commission in writing of the change or inaccuracy.

  (2) After an application has been filed by an applicant, the applicant may not amend the application except:

    (a) To address a deficiency in accordance with a notice sent under §B(4) of this regulation;

    (b) As required by the Commission or the Commission staff for clarification of information contained in the application; or

    (c) To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the Commission.

  (3) To amend an application under §C(2)(c) of this regulation, an applicant shall submit to the Commission a written request to amend the application, stating:

    (a) The change in the circumstances surrounding the application that necessitates the amendment;

    (b) The nature of the amendment; and

    (c) The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission.

  (4) The Commission or Commission staff shall grant or deny each request submitted under §C(3) of this regulation.

  (5) A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that:

    (a) The circumstances requiring the amendment were outside the control of the applicant;

    (b) Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the Commission; and

    (c) The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission.

  (6) Except for an application for an operation license, an application for a license may be withdrawn if the:

    (a) Applicant submits a written request to the Commission to withdraw the application; and

    (b) Written request is submitted before the Commission has:

      (i) Denied the application; or

      (ii) Terminated a temporary license.

D. Notice of Intended Change in Licensed Video Lottery Employee’s Employment Status.

  (1) Within 14 calendar days before a change in employment status, a licensee shall notify the Commission of the intended change in employment by submitting forms and documents required by the Commission in the manner set forth in §B of this regulation.

  (2) A licensee submitting notification of an intended change in employment status shall comply with the application requirements and processes set forth in §B of this regulation.

  (3) The Commission shall conduct a background investigation of the individual to verify that the individual’s license remains in good standing.

  (4) No later than 15 days after the Commission issues the notification that the individual’s license is not in good standing, the licensee shall submit:

    (a) Information, documentation, or assurances to establish, by clear and convincing evidence, that the licensee remains qualified to hold a license; and

    (b) Any other information, documentation, or assurances required by the Commission.

  (5) If the licensee has been separated from employment with a facility for more than 6 months and notified the Commission of an intended change in employment status, the licensee shall pay the fee for conducting a criminal history records check specified in Regulation .03B of this chapter.

  (6) The Commission may not approve a change in employment status for a video lottery employee licensee who fails to establish, by clear and convincing evidence, all license qualification criteria.

  (7) A video lottery employee may not effect a change in employment status without prior Commission approval.

E. Burden of Proof.

  (1) An applicant and licensee shall always bear the burden of proof to show by clear and convincing evidence that the applicant or licensee complies with the laws and regulations of the Commission regarding eligibility and qualifications for the license, including:

    (a) When an applicant submits a license application;

    (b) At a hearing on a recommended denial of a license;

    (c) When a video lottery employee licensee notifies the Commission of an intended change in employment status;

    (d) At a hearing on a recommended revocation of a license; and

    (e) In any other instance where qualifications for a license issued under a provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, are at issue.

  (2) Subject to State Government Article, §9-1A-14(c)(8), Annotated Code of Maryland, the Commission may deny a video lottery employee license to an applicant whose past or present conduct would bring the State into disrepute.

  (3) The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction.

F. Administrative Costs of Background Investigations.

  (1) Promptly upon receipt of an invoice from the Commission, an applicant for a license or a licensee who has notified the Commission of an intended change in employment status shall reimburse the Commission for:

    (a) The administrative costs associated with performing background investigations of the applicant, the licensee who has notified the Commission of an intended change in employment status, and any individual required to provide information under Regulation .04 of this chapter; and

    (b) Any payments made by the Commission to a person approved by the Commission to conduct the background investigations.

  (2) Failure to reimburse the Commission shall be grounds for disqualification of an applicant or disapproval of a licensee’s change in employment status.

  (3) The Commission may require an advance deposit from an applicant or a licensee who has notified the Commission of an intended change in employment status for the Commission’s estimate of the administrative costs of conducting the applicant’s or licensee’s background investigation.

  (4) The Commission shall refund any unused amount of the advance deposit.

G. Payment and Collection. Applicants shall pay the administrative costs and fees required under this regulation by:

  (1) Wire transfer;

  (2) Money order;

  (3) Certified check; or

  (4) Any other manner designated by the Commission.

H. Continuing Obligations.

  (1) Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications.

  (2) If information submitted by an applicant who is issued a license changes during the term of the license, the licensee shall immediately submit written notification of the change to the Commission.

  (3) In addition to the requirements of this regulation, a holder of an operation license must also comply with the requirements of COMAR 36.03.03.

  (4) Failure to comply with the obligations of §G(1), (2), or (3) of this regulation shall be grounds for the Commission taking enforcement action against the licensee under COMAR 36.03.04.

#### Regulation .02 Personal and Background Information.

*COMAR 36.03.02.02*

A. Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is:

  (1) The applicant;

  (2) A director, officer, or key management individual employed by the applicant;

  (3) A partner of the applicant;

  (4) An owner of an interest of 5 percent or more in the applicant; or

  (5) A principal.

B. An individual listed under §A of this regulation shall furnish the following:

  (1) Full name and any previous names or aliases;

  (2) Date of birth;

  (3) Physical description;

  (4) Home and business addresses and telephone numbers;

  (5) Driver's license number and state of issuance;

  (6) Social Security number;

  (7) Passport or identification photo;

  (8) Fingerprints for a criminal records check:

    (a) For a State resident, from an electronic fingerprinting service approved by the Commission; or

    (b) For an out-of-State resident, one FBI and one State fingerprint card, taken within the previous 45 days before submission to the Commission; and

  (9) Any other document or information required by the Commission.

C. If the applicant is a corporation, the application documents shall state the:

  (1) State in which the applicant is incorporated; and

  (2) Name and address of the applicant's agent for service of process in Maryland.

D. If an applicant is a nonprofit corporation, only an individual who is a director or officer of the applicant shall provide the information required under §B of this regulation.

E. A licensee who has notified the Commission of an intended change in employment status shall provide the information as set forth in §B of this regulation.

F. The Commission may require an applicant to furnish the information listed in §B of this regulation with regard to the applicant's family and associates.

G. Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this regulation may not be used as a reason by the Commission for disqualifying the applicant.

#### Regulation .03 Information for Background Investigation.

*COMAR 36.03.02.03*

A. If directed by the Commission, an individual shall also submit three complete legible sets of the individual's fingerprints and complete a background form supplied by the Commission which includes a statement disclosing whether the individual has ever been:

  (1) Arrested;

  (2) Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense;

  (3) Sanctioned by a government agency related to gaming;

  (4) Found liable in connection with a civil action related to gaming;

  (5) A debtor in a bankruptcy proceeding; or

  (6) Denied a bond.

B. The forms submitted in compliance with this regulation shall be accompanied by the:

  (1) Fee authorized under Criminal Procedure Article, §10-221(b)(7), Annotated Code of Maryland, for access to Maryland criminal history records;

  (2) Mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check; and

  (3) Mandatory processing fee required by Interpol for an international criminal history records check.

C. If an applicant for any license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, is a citizen of any country other than the United States, the background investigation required under State Government Article, §9-1A-07(d), Annotated Code of Maryland, shall include an international criminal history records check.

#### Regulation .04 Consent for Investigation.

*COMAR 36.03.02.04*

A. An individual who is required to provide personal and background information under this chapter shall provide a statement that irrevocably gives consent to the Commission, the Location Commission, the Maryland State Police, and persons authorized by the Commission to:

  (1) Verify all information provided in all documents or forms submitted to the Commission; and

  (2) Conduct a background investigation of the individual.

B. An applicant or licensee shall authorize the Commission and, if appropriate, the Location Commission to have access to any and all information the applicant or licensee has provided to any other jurisdiction while seeking a similar license in that other jurisdiction, as well as the information obtained by that other jurisdiction during the course of any investigation it may have conducted regarding the applicant.

#### Regulation .05 Organizational Documents.

*COMAR 36.03.02.05*

A. If the applicant is a corporation, the application documents shall include a:

  (1) Statement of when the corporation was organized;

  (2) Copy of the articles of incorporation and bylaws of the corporation;

  (3) Statement and documentation of whether the corporation has been reorganized or reincorporated during the 5-year period preceding the date on which the application documents are submitted to the Commission; and

  (4) Statement and documentation of whether the corporation has filed restated articles of incorporation.

B. If the applicant is an unincorporated business association, the application documents shall include a:

  (1) Copy of each organizational document of the applicant, including any partnership agreement; and

  (2) Description of any oral agreements involving the organization of the applicant.

#### Regulation .06 Owners.

*COMAR 36.03.02.06*

A. If the applicant is an unincorporated business association, the application documents shall identify:

  (1) Each person who exercises voting rights in the applicant; and

  (2) Each person who directly or indirectly owns 5 percent or more of the business association.

B. If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the:

  (1) Total number of shares;

  (2) Par value, if any;

  (3) Voting rights;

  (4) Current rate of dividend; and

  (5) Number of shares outstanding and the market value of each share.

C. If the applicant is a corporation, the application documents shall identify each person who:

  (1) Exercises voting rights in the corporation; and

  (2) Directly or indirectly owns 5 percent or more of the corporation.

D. The application documents shall include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held and shall state the:

  (1) Name and address of each stockholder participating in the trust or agreement;

  (2) Class of stock involved; and

  (3) Total number of shares held by the trust or agreement.

E. The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the:

  (1) Name and address of the person holding the proxy;

  (2) Name and address of the stockholder who granted the proxy;

  (3) Class of stock for which the proxy may vote; and

  (4) Total number of shares voted by the proxy.

F. The application documents shall state any provisions, and the procedures by which these provisions may be modified, for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest.

G. The application documents shall state whether the applicant's stock may be traded through options and whether the corporation or a stockholder has executed an agreement or contract to convey any of the corporation's or the stockholder's stock at a future date.

H. The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation.

I. The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the video lottery facility.

J. The application documents shall provide full disclosure for any stock options that may exist or have been granted.

K. The application documents shall disclose all principal entities of the applicant.

L. Principal Entities as Approved Institutional Investors.

  (1) A principal entity may request the Commission to waive the requirement of conducting a full background investigation of the principal entity.

  (2) The Commission may approve a principal entity's request for a waiver if the principal entity:

    (a) Meets one of the definitions of institutional investor in State Government Article, §9-1A-01, Annotated Code of Maryland; and

    (b) Satisfactorily completes and submits an institutional investor waiver application as required by the Commission.

  (3) A principal entity for which the Commission has approved a waiver request under §L(2) of this regulation is an approved institutional investor.

  (4) An institutional investor may maintain an approved waiver as an institutional investor by:

    (a) Maintaining an ownership interest in an applicant or licensee; and

    (b) Providing the Commission with the statement of ownership percentage it reported to the Securities and Exchange Commission:

      (i) Annually, before the last day of April; or

      (ii) As otherwise directed by the Commission.

  (5) If an approved institutional investor complies with §L(4) of this regulation, the Commission's approval is valid for 5 years from the date of approval, and:

    (a) The waiver may apply to one or more applicants or licensees in which the entity is an institutional investor; and

    (b) The institutional investor shall submit an institutional waiver application every 5 years from the date of the Commission's last approval.

  (6) If an approved institutional investor does not meet the requirements of §L(4) of this regulation with respect to one or more applicants or licensees:

    (a) The approved institutional investor shall notify the Commission in writing if the institutional investor's ownership interest falls below 5 percent; and

    (b) The Commission may require the institutional investor to submit a new waiver application if the institutional investor acquires an ownership interest of 5 percent or greater in any applicant or licensee.

M. Qualified Principal Entities.

  (1) This section does not apply to a principal entity that is an approved institutional investor under §L of this regulation.

  (2) If the Commission investigates a principal entity’s application for qualification and determines that the principal entity is qualified:

    (a) The Commission shall recognize the qualification determination for 5 years from the date the principal entity is found qualified; and

    (b) If the same qualified principal entity is identified in a subsequent license application within the 5-year period described in §M(2)(a) of this regulation, the principal entity is not required to submit a new principal entity disclosure form.

  (3) A qualified principal entity shall comply with the continuing obligation requirements described in Regulation .01 of this chapter.

  (4) If a qualified principal entity no longer meets a qualification requirement, the Commission may require the principal entity to:

    (a) File a new principal entity disclosure form;

    (b) Submit to a new background investigation; and

    (c) Pay all fees and costs associated with the new principal entity disclosure form and investigation.

#### Regulation .07 Directors, Officers, and Partners.

*COMAR 36.03.02.07*

A. If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the Commission or the Location Commission, as a director, officer, partner, an individual having key management responsibility, or any other principal.

B. For each individual listed under §A of this regulation, the applicant shall provide:

  (1) The individual's name and address;

  (2) Each position or office of the applicant held by the individual;

  (3) The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and

  (4) The nature and extent of any ownership interest that the individual has in the applicant.

#### Regulation .08 Controlling Entity.

*COMAR 36.03.02.08*

The application documents shall:

A. State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland;

B. Describe the:

  (1) Nature of the beneficial ownership; and

  (2) Extent of control exercised by the beneficial owner; and

C. Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner and principal entity.

#### Regulation .09 Outside Interests.

*COMAR 36.03.02.09*

A. The application documents shall state whether the applicant, a director, an officer, or a partner of the applicant, or an owner of 5 percent or more of an interest in the applicant:

  (1) Has ever held an ownership interest in a licensee of the Commission; or

  (2) Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement.

B. The applicant shall describe the nature of participation stated under §A of this regulation.

#### Regulation .10 Alternative Licensing Standards.

*COMAR 36.03.02.10*

A. General.

  (1) The Commission may establish an abbreviated process for licensing an applicant who holds a valid license in another state if the Commission determines that the licensing standards of the other state:

    (a) Are comprehensive;

    (b) Are thorough; and

    (c) Provide similar adequate safeguards to those in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.

  (2) Except for an operation or manufacturer license applicant, the Commission may:

    (a) Waive some or all of the requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and

    (b) Issue a license to a person having a similar license in another state.

  (3) The Commission may delegate its authority to decide whether to apply an alternative license standard to staff.

B. Process.

  (1) An applicant or licensee requesting the application of alternative licensing requirements shall submit a written request in a format specified by the Commission.

  (2) A written waiver request shall contain at least the following:

    (a) The state in which the applicant holds a valid license;

    (b) An explanation of the unique circumstances justifying the request; and

    (c) Any other information requested by staff or the Commission.

  (3) Upon receipt of a request that fails to comply with §B(1) and (2) of this regulation, staff shall notify the requestor:

    (a) Of any deficiency; and

    (b) That the waiver request will not be presented to the Commission unless the identified deficiency is corrected.

C. Decision.

  (1) Upon receipt of a waiver request that complies with §B of this regulation, staff shall:

    (a) Present the waiver request to the Commission as soon as practicable; or

    (b) If the Commission has delegated to staff the authority to decide the waiver request, decide the waiver request as soon as practicable.

  (2) After the Commission or staff decides whether to grant the waiver request, staff shall notify the requestor.

#### Regulation .11 Exemption or Waiver of License Requirement.

*COMAR 36.03.02.11*

A. General.

  (1) The Commission may:

    (a) Grant an exemption to a licensing requirement;

    (b) Waive a licensing requirement; or

    (c) Waive grounds for denial of a license.

  (2) Except for an operation or manufacturer license applicant, the Commission may grant an exemption or waive a requirement under this regulation only after the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.

  (3) The Commission may delegate its authority to decide a waiver of a licensing requirement to staff.

B. Process.

  (1) A person requesting an exemption or waiver shall submit a written request in a format specified by the Commission.

  (2) A written request shall contain at least the following:

    (a) The COMAR section for the standard for which the exemption or waiver is sought;

    (b) Detailed facts in support of the request;

    (c) An explanation of the unique circumstances justifying the request; and

    (d) Any other information requested by staff or the Commission.

  (3) Upon receipt of an exemption or waiver request that fails to comply with §B(1) or (2) of this regulation, staff shall notify the requestor:

    (a) Of any deficiency; and

    (b) That the request will not be presented to the Commission unless the identified deficiency is corrected.

C. Decision.

  (1) Upon receipt of a request that complies with §§A and B of this regulation, staff shall:

    (a) Present the request to the Commission as soon as practicable; or

    (b) If the Commission has delegated to staff the authority to decide the waiver request, [decide the waiver request] make a decision as soon as practicable.

  (2) At any time before or after a waiver or exemption has been granted, the Commission may:

    (a) Limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and

    (b) Require the licensee who is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption.

  (3) After the Commission or staff decides whether to grant or deny the request, staff shall notify the requestor of the decision.

#### Regulation .12 Video Lottery Employee Licenses.

*COMAR 36.03.02.12*

A. General. Unless an individual holds a valid video lottery employee license that is in good standing issued by the Commission, the individual may not be employed by a licensed facility operator, manufacturer, or contractor as a video lottery employee.

B. License Categories. The Commission may issue a video lottery employee license that is a:

  (1) Principal employee license;

  (2) Gaming employee license;

  (3) Nongaming employee license;

  (4) Temporary principal employee license; or

  (5) Temporary gaming employee license.

C. Requirements. The Commission may issue a video lottery employee license to an individual who has or has had on their behalf:

  (1) Paid all required application and license fees;

  (2) Submitted a completed license application to the Commission;

  (3) Furnished the personal and background information required under Regulation .02 of this chapter;

  (4) Provided the documentation required under Regulation .03 of this chapter;

  (5) Executed the consent for investigation required under Regulation .04 of this chapter;

  (6) Unless exempt, obtained a bond required under Regulation .15 of this chapter;

  (7) Received at least a conditional offer of employment as a video lottery employee from a licensed facility operator, manufacturer, or contractor;

  (8) Demonstrated that within the 365 days before the application is submitted, the applicant has not served as a Commission member or been employed by the Agency;

  (9) For an applicant for a nongaming employee license, documented that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has:

    (a) Obtained a bond if required under Regulation .15 of this chapter; and

    (b) Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and

  (10) Provided the Commission with sufficient information, documentation, and assurances to establish, by clear and convincing evidence, that the individual:

    (a) Except as provided in §L of this regulation, has not been mandatorily disqualified under State Government Article, §9-1A-14(c), Annotated Code of Maryland;

    (b) Has met the applicable requirements of State Government Article, §9-1A-07(c), Annotated Code of Maryland; and

    (c) Is otherwise qualified for a video lottery employee license.

D. Application and License Fees.

  (1) For a principal employee, $5,287.25, of which the:

    (a) Application fee is $2,500;

    (b) License fee is $750;

    (c) Refundable advance deposit authorized under Regulation .01E(3) of this chapter for the administrative costs of conducting the applicant's background investigation is $2,000; and

    (d) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

  (2) For a gaming employee, $437.25, of which the:

    (a) Application fee is $250;

    (b) License fee is $150; and

    (c) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

  (3) For a nongaming employee, $187.25, of which the:

    (a) Application fee is $50;

    (b) License fee is $100; and

    (c) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

E. Employment of a Video Lottery Employee Licensee.

  (1) A video lottery employee license authorizes the licensee to be employed as a principal, gaming or nongaming employee in the State.

  (2) Nothing in this chapter precludes a licensee from being employed by more than one video lottery facility or sports wagering licensee, concurrently or consecutively, while the individual’s license is in good standing.

  (3) A video lottery employee’s second or subsequent employment with a licensee or a sports wagering licensee does not change the term of the individual’s license.

  (4) Without filing an application for a sports wagering employee license, a video lottery employee may be employed by a sports wagering licensee if:

    (a) The individual will perform work for the sports wagering licensee that is comparable to work performed as a video lottery employee; and

    (b) The individual’s license is in good standing.

  (5) Under State Government Article, §9-1A-24(c)(2), Annotated Code of Maryland, a video lottery employee who is 18 to 20 years old may enter, or remain on, the gaming floor if the employee is working.

F. A licensed video lottery employee, or temporary licensee, may not play a video lottery terminal or table game at, or receive a jackpot from, a facility:

  (1) Where the individual is employed;

  (2) That is operated by the individual's employer; or

  (3) Where the individual is currently assigned to work.

G. A sports wagering employee who is employed as a video lottery facility employee is subject to the restrictions in:

  (1) Section F of this regulation; and

  (2) COMAR 36.10.06.07.

H. 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.

I. Term; Renewal.

  (1) The term of a video lottery employee license is 5 years from the date of initial licensure.

  (2) The Commission may stagger the terms of licenses.

  (3) Except for a sponsored principal or sponsored gaming employee, or temporary licensee, the Commission may renew the license if, before the term of the license expires, the licensee:

    (a) Applies for renewal;

    (b) Continues to comply with all licensing requirements;

    (c) Maintains employment as a video lottery employee;

    (d) Submits to a background investigation under Regulation .03 of this chapter; and

    (e) Pays the fees described in §I(4) of this regulation.

  (4) The fee required for processing a licensing renewal is:

    (a) For a principal employee, $2,787.25, of which the:

      (i) License fee is $750;

      (ii) Refundable advance deposit for administrative costs of conducting the applicant’s background investigation is $2,000; and

      (iii) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

    (b) For a gaming employee, $187.25, of which the:

      (i) License fee is $150; and

      (ii) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

    (c) For a nongaming employee, $97.25, of which the:

      (i) License fee is $60; and

      (ii) Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.

  (5) Except as provided in §H(5) of this regulation, a video lottery employee shall submit an application for renewal to the Commission at least 90 days before the video lottery employee's license expires.

  (6) A principal employee shall submit an application for renewal to the Commission at least 6 months before the principal employee's license expires.

J. Temporary License.

  (1) The Commission may issue to a video lottery employee license applicant a temporary license to permit the individual to work legally as a video lottery employee before the Commission completes the full licensing process.

  (2) A licensed facility operator, manufacturer, or contractor may submit an application for a temporary license on behalf of an individual who is seeking a principal or gaming employee license.

  (3) An application for a temporary license shall be in a format designated by the Commission and shall include:

    (a) A completed application for a principal or gaming employee license;

    (b) Payment of the fees required under §D of this regulation;

    (c) Documentation to verify that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has:

      (i) Obtained a bond if required under Regulation .15 of this chapter; and

      (ii) Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and

    (d) Documentation that the applicant has acknowledged, in writing, that the State is not financially responsible for any consequences resulting from termination of a temporary license under State Government Article, §9-1A-14(d)(4), Annotated Code of Maryland.

  (4) The Commission may grant a temporary license after:

    (a) Receiving all items required under §I(3) of this regulation; and

    (b) Performing on the individual a:

      (i) Criminal background investigation under Regulation .03 of this chapter; and

      (ii) Financial stability investigation.

  (5) A temporary license:

    (a) Expires 180 days after the date of issue; and

    (b) May be extended by the Commission for one period of 180 days.

  (6) A temporary license may not be issued if:

    (a) An applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a video lottery employee license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or regulations promulgated under that subtitle;

    (b) An applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the State's video lottery terminal or table game operations; or

    (c) There are reasonable grounds to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under State Government, §9-1A-07, Annotated Code of Maryland.

  (7) By written notice to a temporary licensee, Commission staff may terminate, without a hearing and without following the denial process under Regulation .16 of this chapter, the temporary license of an applicant for:

    (a) Failure to pay a required fee;

    (b) Failure to submit required documentation to Commission staff within 30 days of submitting the application;

    (c) Failure to comply with a request of Commission staff;

    (d) Engaging in conduct that obstructs Commission staff from completing the applicant's background investigation; or

    (e) Violating any provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.

  (8) Commission staff's written notice of termination of a temporary license is the final action of the Commission.

  (9) If, during the course of conducting an applicant's background investigation, Commission staff reasonably believes there is a basis for recommending that the application for a video lottery employee license be denied, Commission staff shall:

    (a) Notify the temporary licensee; and

    (b) Follow the process for denial of a license under Regulation .16 of this chapter.

K. Relinquishment of a License.

  (1) An individual who is licensed as a video lottery employee may relinquish the license.

  (2) A licensee shall relinquish a license in writing by submitting to Agency staff a document that:

    (a) Includes the licensee’s name and date of request;

    (b) Clearly expresses the individual’s desire to knowingly and voluntarily relinquish, end, or otherwise give up the individual’s licensure; and

    (c) Gives a reason for the request.

  (3) Agency staff may accept a relinquishment request that is consistent with §K(2) of this regulation.

  (4) Agency staff shall update the Agency’s records to show the voluntary relinquishment.

  (5) By submitting a written relinquishment request of a video lottery employee license under §K(2) of this regulation, the individual acknowledges that:

    (a) The State is not financially responsible for any consequences resulting from the relinquishment of the individual’s license;

    (b) Regardless of relinquishment, the Agency shall maintain an individual’s licensing records, to which public access is governed by General Provisions Article, §4-201, et seq., Annotated Code of Maryland;

    (c) Although relinquishment ends an individual’s obligation to comply with the Commission’s licensing requirements, relinquishment does not change or affect any other obligation.

  (6) Agency staff may deny a relinquishment request from an individual who is not in good standing.

  (7) An individual who has relinquished a video lottery employee license may request that the Commission return the license to active status, and the Commission may require the individual to:

    (a) Submit fingerprint cards; and

    (b) Provide any other information that staff requires.

L. Exemption from Mandatory Disqualification.

  (1) Definition. In this section, “problem-solving court” means:

    (a) A judiciary program under the Office of Problem-Solving Courts of the Maryland Administrative Office of the Courts; or

    (b) A program from another state that:

      (i) Provides a collaborative, therapeutic, nonadversarial approach to judicial supervision of eligible offenders; and

      (ii) Is comparable to a judiciary program described in §L(1)(a) of this regulation.

  (2) Except for a crime involving gambling, an applicant for a video lottery employee license is not disqualified from licensure under State Government Article, §9-1A-14(c)(1)(iii) or (iv), Annotated Code of Maryland, for a nonviolent misdemeanor offense for which the applicant has:

    (a) Been convicted or is on active parole, probation, or prosecution; and

    (b) Participated in and completed a problem-solving court program described in §L(1) of this regulation.

  (3) An applicant shall provide the Commission with documentation to verify the applicant’s exemption from disqualification under §L(2) of this regulation.

#### Regulation .13 Manufacturer Licenses.

*COMAR 36.03.02.13*

A. General.

  (1) 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.

  (2) The following persons must meet the Commission's manufacturer license requirements:

    (a) A manufacturer; and

    (b) Each person that owns, controls, or is a representative of a manufacturer.

B. Qualification Requirements. Agency staff may issue a manufacturer license to a manufacturer that has:

  (1) Paid the application and license fee under §C of this regulation;

  (2) Unless exempt, obtained a bond required under Regulation .15 of this chapter;

  (3) Furnished the Commission or Agency staff with the information and documentation required under this chapter;

  (4) Established by clear and convincing evidence that each person identified in §A(2) of this regulation has:

    (a) Qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and

    (b) Not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland;

  (5) Provided the Commission or Agency staff with sufficient information to establish that the manufacturer has otherwise qualified for a manufacturer license; and

  (6) Established that its system, associated equipment or software, or goods or services meet the specifications and procedures in COMAR 36.03.12.

C. Application and License Fees.

  (1) The application fee for a:

    (a) Tier 1 manufacturer is $10,000; and

    (b) Tier 2 manufacturer is $1,200.

  (2) The license fee or a:

    (a) Tier 1 manufacturer of a central monitor and control system is $25,000;

    (b) Tier 1 manufacturer of a video lottery terminal or table game equipment is $5,000;

    (c) Tier 1 manufacturer of associated equipment and software in §C(2)(a) or (b) of this regulation is $5,000;

    (d) 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

    (e) Tier 2 manufacturer is $800.

D. 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.

E. 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.

F. Term; Renewal; License Renewal Fee.

  (1) The term of a Tier 1 and Tier 2 manufacturer license is 5 years from the date of initial licensure.

  (2) The Commission may stagger the terms of licenses.

  (3) Agency staff may renew the license if the manufacturer licensee:

    (a) Submits an application for renewal to the Commission at least 6 months before the manufacturer’s license expires;

    (b) Continues to comply with all licensing requirements;

    (c) Submits to a background investigation under Regulation .05 of this chapter; and

    (d) Pays a license renewal fee.

  (4) The license renewal fee for a:

    (a) Tier 1 manufacturer of a central monitor and control system is $25,000;

    (b) Except as provided in §F(4)(a) of this regulation, Tier 1 manufacturer is $5,000; and

    (c) Tier 2 manufacturer is $800.

G. Background Investigation Deposit.

  (1) A $2,000 background investigation deposit is required at the time an applicant files a manufacturer license application.

  (2) 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.

#### Regulation .14 Contractor Licenses.

*COMAR 36.03.02.14*

A. 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.

B. 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:

  (1) Is qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and

  (2) Has not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland.

C. The Commission may charge a Tier 1 or Tier 2 contractor for the administrative costs associated with performing a background investigation.

D. Application and License Fees.

  (1) For a Tier 1 contractor:

    (a) The application fee is $1,500;

    (b) The license fee is $2,500; and

    (c) The Background investigation deposit is $2,000.

  (2) For a Tier 2 contractor:

    (a) The application fee is $750;

    (b) The license fee is $800; and

    (c) The background investigation deposit is $2,000.

E. Term; Renewal; Fees.

  (1) The term of a Tier 1 and Tier 2 contractor license is 5 years from the date of the initial licensure.

  (2) The Commission may stagger the terms of licenses.

  (3) Agency staff may renew the license if the contractor licensee:

    (a) Submits an application for renewal to the Commission at least 6 months before the contractor's license expires;

    (b) Continues to comply with all licensing requirements;

    (c) Submits to a background investigation under Regulation .05 of this chapter; and

    (d) Pays a license renewal fee.

  (4) The license renewal fee for a:

    (a) Tier 1 contractor is $2,500; and

    (b) Tier 2 contractor is $800.

  (5) The background investigation deposit for license renewal of a Tier 1 or Tier 2 contractor is $2,000.

F. A Tier 1 and Tier 2 contractor is exempt from:

  (1) Bond requirements under Regulation .15 of this chapter; and

  (2) Labor peace agreement requirements under State Government Article, §9-1A-07(c)(7)(v), Annotated Code of Maryland, unless the contractor is engaged:

    (a) As a lessee;

    (b) As a tenant; or

    (c) Under a management agreement.

#### Regulation .15 Bonds.

*COMAR 36.03.02.15*

A. The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license.

B. A video lottery employee may be exempted if the employee is not directly involved in video lottery operations and is employed:

  (1) As a nongaming employee; or

  (2) In any other category of video lottery employee for whom the Commission determines the bond is not necessary to protect the public interest.

C. A bond shall be for the benefit of the State for the faithful performance of the requirements imposed by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and any regulations issued under that subtitle.

D. For an operator of a facility, or an entity that contracts with the operator of a facility to provide any of the services related to operating the facility, the amount of the bond may not exceed three times the initial licensing fee under State Government Article, §9-1A-36(j), Annotated Code of Maryland.

E. For a manufacturer, the amount of the bond shall be specified in the Commission’s contract with manufacturers of video lottery terminals.

F. For a gaming employee, who is not covered by a bond under §D of this regulation, the amount of the bond:

  (1) Shall be determined by the Commission based on the employee’s level of responsibility and the State’s risk of exposure to liability for the employee’s performance; and

  (2) May not exceed three times the gaming employee’s initial licensing fee.

G. For any other licensee, the amount of the bond shall be determined by the Commission.

H. The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond.

I. The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee.

#### Regulation .16 Denial of a License.

*COMAR 36.03.02.16*

A. Denial of a Video Lottery Employee, Manufacturer, or Contractor License.

  (1) In addition to the hearing requirements in §B of this regulation, the following process shall precede a hearing on the denial of a video lottery employee, manufacturer, or contractor license.

  (2) After reviewing an application submitted for a video lottery employee, manufacturer, or contractor license, the Director may recommend that the Commission deny the application of an applicant who:

    (a) Has not established by clear and convincing evidence that the applicant meets applicable qualifications; or

    (b) Has violated:

      (i) A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;

      (ii) A regulation adopted pursuant to State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or

      (iii) A condition set by the Commission.

  (3) If the Director recommends that the Commission deny a video lottery employee, manufacturer, or contractor license, the Director, or the Director's designee, shall promptly provide the applicant with written notice of the:

    (a) Recommendation for denial;

    (b) Basis for the recommendation; and

    (c) Applicant's right to request a reconsideration meeting with the Director or the Director's designee.

  (4) An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described in §A(3) of this regulation.

  (5) If an applicant fails to timely submit a request under §A(4) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee.

  (6) During a reconsideration meeting, an applicant may:

    (a) Be represented by counsel; and

    (b) Present evidence as to why the license should be granted;

  (7) If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director's designee, the applicant may submit to the Commission, in writing:

    (a) A request for hearing before the Commission on the recommendation of the Director or the Director's designee; and

    (b) The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee.

  (8) An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director's designee after the reconsideration meeting.

  (9) If an applicant fails to timely submit a written hearing request under §A(8) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee.

  (10) Upon receipt of a timely written hearing request, the Director shall provide the applicant a hearing notice for a hearing before the Commission.

  (11) The Director's hearing notice, and the Commission hearing at which the recommended denial will be considered, shall comply with the requirements of COMAR 36.01.02.06.

  (12) The Commission shall:

    (a) Grant the license after determining that the applicant is qualified; or

    (b) Deny the license after determining that the applicant:

      (i) Is not qualified or is disqualified; or

      (ii) Has violated a provision described in §A(2)(b) of this regulation.

  (13) Following a hearing at which a license is denied, the Commission shall:

    (a) Prepare an order denying the license with a statement of the reasons and specific findings of fact; and

    (b) Provide the applicant with written notification of its final action.

B. The Commission's final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland

#### Regulation .17 Vendor Registration.

*COMAR 36.03.02.17*

A. Definitions. In this regulation, the following terms have the meaning indicated.

B. Terms Defined.

  (1) “Commission” means Agency staff in this regulation.

  (2) Vendor.

    (a) “Vendor” means a person that:

      (i) Provides goods or services at a value of $50,000 or more to a video lottery operation applicant or licensee; and

      (ii) Is not required to be licensed as a manufacturer or contractor under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter.

    (b) “Vendor” does not include:

      (i) Public utilities that provide water, sewerage, electricity; or natural gas;

      (ii) Insurance companies that provide insurance to a video lottery applicant or licensee or its employees;

      (iii) Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs;

      (iv) Professional associations that receive funds from the video lottery applicant or licensee for the cost of enrollment, activities, and membership;

      (v) Units of federal, State, county, or municipal government;

      (vi) Manufacturers of alcoholic beverages;

      (vii) State-chartered or federally chartered banks or savings and loan associations;

      (viii) Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services;

      (ix) Telecommunication, satellite, or internet services;

      (x) Parcel shipping and delivery services;

      (xi) Persons that engage in efforts to influence legislative or administrative action on behalf of a video lottery operation applicant or licensee for economic consideration;

      (xii) Educational or training opportunities for facility employees;

      (xiii) Professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a video lottery operation licensee to appear at a licensee-sponsored entertainment or promotional event;

      (xiv) Representatives of a media outlet or provider of a simulcast service;

      (xv) A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to State video lottery operation applicants or licensees of less than $50,000; or

      (xvi) A vendor for whom the Commission determines is not necessary in order to protect the public interest.

C. Except as provided in §§D and G of this regulation, a vendor that conducts business with a video lottery operation applicant or licensee shall be registered with the Commission.

D. Certain Vendors Exempt from Registration Requirements.

  (1) A vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a video lottery operator purchases solely to be given to a player.

  (2) A vendor exempted under this section may only provide the following goods and services to a video lottery facility operator:

    (a) Leisure or recreational travel;

    (b) Lodging;

    (c) Vehicles;

    (d) Entertainment;

    (e) Dining;

    (f) Clothing;

    (g) Jewelry;

    (h) Gift cards; or

    (i) Other gift items.

  (3) A video lottery operator that purchases goods or services from a vendor exempted under this section:

    (a) Is subject to the requirements of COMAR 36.03.10.09; and

    (b) Shall identify in a report submitted under COMAR 36.03.10.09 each exempted vendor from which it purchased goods or services during the reporting period.

E. Vendor Registration.

  (1) A vendor that provides, or anticipates providing, nongaming related goods and services to a single video lottery operation applicant or licensee shall be registered with the Commission.

  (2) The video lottery operation applicant or licensee to which a vendor provides, or anticipates providing, the nongaming related goods and services shall submit to the Commission a completed registration form in a format designated by the Commission that includes:

    (a) Vendor name;

    (b) Vendor business address;

    (c) Type of goods or services provided;

    (d) Total value of goods or services provided to video lottery applicants or licensees in the State within a calendar year;

    (e) Documentation that:

      (i) The vendor’s business is in good standing or active with the Maryland State Department of Assessment and Taxation; or

      (ii) The vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation;

    (f) Registration fee of $100; and

    (g) Any other information the Commission requires.

  (3) Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the vendor.

F. Except as provided in §G of this regulation, a vendor may not provide goods or services related to a video lottery operation applicant or licensee until it is registered with the Commission.

G. Emergency Notification. An applicant or licensee may accept goods or services from a vendor that is not registered by the Commission if:

  (1) The applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a vendor; and

  (2) Except as provided in §C of this regulation:

    (a) No later than the next State business day after the vendor’s emergency provision of goods or services, the applicant or licensee shall submit to the Commission a vendor emergency notification form that includes an explanation of the need for its emergency use of a vendor that is not registered with the Commission; and

    (b) Within 20 business days of submitting the vendor emergency notification form, the applicant or licensee shall submit to the Commission a vendor registration form.

H. A vendor’s registration:

  (1) Remains in effect for 5 years from the date the Commission approves the registration;

  (2) May be renewed by the Commission if the vendor submits the required form, and renewal fee required in §I of this regulation, as required under §D

  (3) Shall automatically expire if a vendor does not comply with renewal requirements under this regulation; and

  (4) Is subject to cancellation by the Commission if the Commission determines that the vendor's continued conduct of business with a video lottery operation applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this subtitle.

I. Renewal Fee.  The renewal fee for a vendor is $100.

J. The Commission’s decision to deny or cancel a vendor registration, or to deny the renewal of a vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act.

K. The Commission may maintain and make publicly available a list of:

  (1) Registered vendors; and

  (2) Vendors that are prohibited from doing business with a video lottery operation applicant or licensee because the Commission has denied or cancelled their application or registration.

L. A video lottery operation applicant or licensee shall:

  (1) Submit to the Commission a monthly vendor payments report in a format prescribed by the Commission; and

  (2) Ensure that a vendor appearing on its monthly vendor payments report is:

    (a) Registered;

    (b) Exempt.

#### Regulation .18 Identification Cards for Video Lottery Employees.

*COMAR 36.03.02.18*

A. The Commission shall issue an identification card to an individual who is licensed as a video lottery employee.

B. Identification Card.

  (1) An identification card shall display a photograph of the licensee and, at a minimum, indicate:

    (a) The individual's name;

    (b) By color, pattern, or symbol, the licensing category; and

    (c) The license expiration date.

  (2) An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed facility operator, manufacturer, or contractor.

  (3) An identification card is the property of the Commission.

C. Licensee Obligations. A licensee:

  (1) Shall wear or otherwise prominently display the licensee’s identification card at all times while working unless otherwise approved by the Commission for a specific date and time;

  (2) Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission;

  (3) May not allow another individual to possess the card; and

  (4) Shall comply with an order of the Commission to surrender the card.

D. Replacement Identification Card.

  (1) If an identification card issued under this regulation is lost or stolen:

    (a) The licensee shall immediately:

      (i) Report the loss or theft to the licensee’s employer; and

      (ii) In a form or format designated by the Commission, submit to the Commission a written description of the circumstances of the loss or theft; and

    (b) After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee.

  (2) If an identification card issued under this regulation is temporarily unavailable to the licensee:

    (a) The licensee shall immediately:

      (i) Report the temporary unavailability of the card to the licensee’s employer; and

      (ii) In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable;

    (b) After verifying the licensee’s identity, the Commission may issue an emergency credential to the licensee that is valid for 1 work day; and

    (c) The licensee shall surrender the emergency credential to the Commission at the end of the work day on which the licensee received the card.

  (3) If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission:

    (a) $40 for the cost of a replacement identification card; or

    (b) $20 for the cost of a temporary identification card.

E. Surrender and Reissuance of Identification Card.

  (1) The employer of the video lottery employee who was issued an identification card under this regulation shall ensure that the licensee’s identification card is surrendered to the Commission if the:

    (a) Commission suspends or revokes the license;

    (b) License is not renewed;

    (c) Licensee separates from employment with licensee’s employer; or

    (d) Licensee is otherwise ordered to surrender the identification card.

  (2) If an identification card is not surrendered as required under §D(2)(c) or E(1) of this regulation, the licensee’s employer may be subject to enforcement action under COMAR 36.03.04.

  (3) If an identification card was surrendered when the licensee separated employment from the licensee’s employer, the Commission may issue the licensee another identification card if the:

    (a) Licensee obtains employment with a licensed facility operator, manufacturer, or contractor;

    (b) Term of the license has not expired; and

    (c) Commission verifies:

      (i) The licensee’s identity;

      (ii) That the license was in good standing when the card was surrendered; and

      (iii) That the license has not expired and remains in good standing.

  (4) Nothing in this regulation shall preclude the Commission from taking enforcement action against a licensee based on the circumstances related to the licensee’s separation from employment or information obtained while reviewing a licensee’s notification of an intended change in employment status.