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<chapter num="08" heading="Collection of Taxes, Fees, and Penalties" title_num="36" subtitle_num="03">
  <regulation prefix="Regulation" num=".01" heading="General.">
    <text>This chapter establishes the manner and method by which the Commission may collect from an applicant or licensee a tax, fee or civil penalty established under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and the manner by which a facility operator may reconcile proceeds under State Government Article, §9-1A-26, Annotated Code of Maryland.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Definitions.">
    <paragraph num="A.">
      <text>In this chapter, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes:</text>
        <paragraph num="(a)">
          <text>A license fee under State Government Article, §9-1A-07(b), Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>A fee associated with an applicant's criminal history records check under State Government Article, §9-1A-20(d), Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>An application, license, or renewal fee under COMAR 36.03.02, 36.03.03, and 36.04.02;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>An annual fee of $425 for each authorized video lottery terminal on a video lottery terminal operator’s license, to be paid by a video lottery operation licensee as required by State Government Article, §9-1A-33, Annotated Code of Maryland, and COMAR 36.04.02.02;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>For the highest number of table games in use on a single gaming day in the applicable calendar year, an annual fee of $500 to be paid by a video lottery operation licensee for each table game as authorized by State Government Article, §9-1A-33, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Except for an initial license fee for a video lottery operation license, any other fee imposed by the Commission under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and</text>
        </paragraph>
        <paragraph num="(g)">
          <text>A renewal of a video lottery facility license under COMAR 36.03.03.10.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>“Penalty” has the meaning stated in COMAR 36.03.04.02.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“Proceeds” has the meaning stated in State Government Article, §9-1A-01, Annotated Code of Maryland.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Obligation to Pay.">
    <paragraph num="A.">
      <text>A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law.</text>
    </paragraph>
    <paragraph num="B.">
      <text>For a fee or penalty:</text>
      <paragraph num="(1)">
        <text>The Commission shall issue an invoice or other order to pay; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Reconciliation of Proceeds.</text>
      <paragraph num="(1)">
        <text>In reconciling proceeds as described in this section, a facility operator shall account for video lottery terminal proceeds separately from table game proceeds.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If a facility operator returns to successful players more than the amount of money bet through video lottery terminal or table game play on a gaming day, the facility operator may subtract the difference between the amount bet and the amount returned to players from its proceeds of up to 7 following gaming days.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A facility operator may not subtract losses pursuant to §C(2) of this regulation for more than 7 consecutive gaming days.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Collection and Deposit of Payments.">
    <paragraph num="A.">
      <text>An applicant or licensee shall pay a fee or civil penalty by:</text>
      <paragraph num="(1)">
        <text>Wire transfer;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Money order;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Certified check made payable to the “State of Maryland”; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Any other manner designated by the Commission.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The Commission shall deposit payment of:</text>
      <paragraph num="(1)">
        <text>Except as provided in §B(3) of this regulation, an application, license, renewal, or other fee into a bank account that the State Treasurer designates to the credit of the State Lottery and Gaming Control Agency Fund to cover the Commission’s administrative costs related to licensing;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A fee into the Problem Gambling Fund established in the Maryland Department of Health under State Government Article, §9-1A-33(b), Annotated Code of Maryland:</text>
        <paragraph num="(a)">
          <text>An annual fee of $425 for a video lottery terminal; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>An annual fee of $500 for a table game; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>A fee for renewing a video lottery facility operator license as authorized in State Government Article, §9-1A-13, Annotated Code of Maryland, into the Education Trust Fund established in State Government Article, §9-1A-30, Annotated Code of Maryland.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue:</text>
      <paragraph num="(1)">
        <text>The unpaid amount of the fee or penalty;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Revenues lost to the State as the result of the nonpayment;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Attorney's fees; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Any other penalty, interest, cost, and expense allowable by law.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The failure of a licensee to timely pay a fee or penalty is a violation of a directive of the Commission.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The Commission's election to seek recovery under §C of this regulation for a licensee's failure to pay a fee or penalty does not preclude the Commission or the State from enforcing other rights, or seeking other remedies, for the same failure to pay.</text>
    </paragraph>
    <paragraph num="F.">
      <text>Nothing in this chapter shall be construed to preclude the Commission from withholding or reducing the distribution of proceeds to an operator under State Government Article, §9-1A-27, Annotated Code of Maryland, or instituting as set-off, counterclaim, fines, penalties, or any other legally permitted deduction, for a licensee's:</text>
      <paragraph num="(1)">
        <text>Failure to pay a fee or penalty;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Unsatisfactory performance;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Failure to timely fulfill all of the Commission's requirements; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Material breach of a term or condition of a license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>The Commission shall account for collection of a fee or penalty in accordance with applicable law.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, §§9-1A-01, 9-1A-04, 9-1A-13, 9-1A-26, and 9-1A-33, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B 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)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .03C adopted as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .03C amended effective August 13, 2018 (45:16 Md. R. 776)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04B amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04B, D 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)</annotation>
  </annotations>
</chapter>