This subtitle applies to instant bingo machines in Anne Arundel and Calvert Counties. Instant bingo machines and facilities regulated under this subtitle are permitted to operate only if: The instant bingo machines were in operation: For a 1-year period ending December 31, 2007 by a qualified organization as defined in Criminal Law Article, §13-201, Annotated Code of Maryland; or Under a commercial bingo license on December 31, 2007; The facility does not operate more than the number of instant bingo machines it operated on February 28, 2008; and The instant bingo machines: Are operated in the same manner as those that were in operation at that individual instant bingo facility on July 1, 2007; or Have been approved by the Commission for use by any other entity authorized to operate an instant bingo machine. An instant bingo machine that does not meet the requirements of §B of this regulation is an illegal electronic gaming device or slot machine. Before allowing an instant bingo machine to be operated under this subtitle, the owner of the instant bingo machine shall be licensed by the Commission as a: Facility operator; Principal employee; or Manufacturer. In this chapter, the following terms have the meanings indicated. Terms Defined. “Bill validator” means that part of an instant bingo machine that is designed and configured to: Accept currency or other instruments authorized by the Commission; and Activate credits on an instant bingo machine. “Books and records” means any document pertaining to, prepared in or generated by a facility operator, without regard to the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer generated data, forms, documents, internal audit reports and work papers, correspondence and personnel records. “Cash” means currency and coin. “Cash storage box” means a secure tamper resistant container in a bill validator into which cash, gaming tickets, promotional play instruments or other instruments authorized by the Commission for activating credits on an instant bingo machine are deposited. Deal. “Deal” means a pre-determined quantity of instant bingo tickets, among which are a predetermined and fixed quantity of winning chances, each of which rewards a predetermined prize value. A “deal” may include a set or series of preprinted instant bingo tickets. A “deal” may include predetermined but unprinted tickets that are printed: Within the instant bingo machine as a user plays the game; and In accordance with a finite, fixed, and predetermined sequence. “Facility” means a place where instant bingo machines are operated. “Facility license” means a license awarded by the Commission to operate an instant bingo facility. “Facility operator” means a person who operates or manages the operation of an instant bingo facility. “Gaming day” means a period of time determined by a facility operator not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports. “Gaming floor” means that part of a facility where instant bingo machines have been installed for use or play. “Instant bingo” means a game of chance played on an instant bingo machine. “Instant bingo machine” means an electronic machine, apparatus, or device that offers a game of instant bingo. “Instant bingo manager” means an individual who is employed by a facility operator and exercises control over the facility when a principal employee is not present. “Instant bingo ticket” means a paper or electronic ticket purchased from a deal. “Integrated system” means a computer system that communicates the results of a predetermined or randomly generated outcome for a game of bingo that is not the result of a contemporaneous live call of bingo on the premises where the integrated system is located. “Jackpot” means any prize to be paid to a player as a result of a specific combination of characters on an instant bingo machine that requires the filing of an IRS Form W-2G, Certain Gambling Winnings. “License” means a license issued to: An operator of a facility; A manufacturer; A principal employee; An instant bingo manager; or Any other person whom the Commission requires to be licensed. “Licensee” means the holder of a license under this subtitle. “Manufacturer” means a person that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing instant bingo machines, associated equipment or software, instant bingo tickets, or the cabinet in which an instant bingo machine is housed. Modification. “Modification” means a change or alteration that affects the conduct of play or operation of equipment, system, or software of an instant bingo machine, including a change or alteration to a: Control program; Graphics program; or Payout percentage; and “Modification” does not include the replacement of one approved component with an identical component. “Principal employee” means an individual who manages a licensee, or otherwise exercises management control over an instant bingo function of a licensee. A facility license holder may repair and replace its instant bingo machines provided that documentation has been submitted to the Commission that evidences, to the satisfaction of the Commission, that: The machines: Operate in the same manner as any that were in operation by that licensee on July 1, 2017; or Have been approved by the Commission for use by any other entity authorized to operate an instant bingo machine; and The licensee does not operate more than the number of instant bingo machines the licensee had in operation on February 28, 2008. Documentation submitted under §A of this regulation may consist of: Manufacturer invoices; Independent testing laboratory reports; Records from county licensing authorities; or Other records deemed acceptable by the Commission. A determination by the Commission on the sufficiency of documentation provided under §B of this regulation is final and not appealable. Instant bingo machines that are repaired or serve as a replacement shall comply with the technical standards as provided under COMAR 36.07.06. An instant bingo machine serving as a replacement under §A of this regulation may operate in the same manner as any instant bingo machine that was in operation by the licensee on February 28, 2008. Criminal Law Article, §§12-301.1 and 12-308; State Government Article, §9-110; Annotated Code of Maryland; Ch. 603, §6, Acts of 2012; Ch. 10, §23, Acts of 2018 Effective date: Regulations .01—.03 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) Regulation .01B amended effective August 13, 2018 (45:16 Md. R. 776) Regulation .03 amended effective January 2, 2017 (43:26 Md. R. 1450) Regulation .03A amended effective August 13, 2018 (45:16 Md. R. 776) Upon filing an application for a license under this subtitle, the applicant shall pay a nonrefundable application fee established by the Commission. If a license application must be submitted to the Commission by a particular date, the application shall be submitted not later than 5 p.m. on the last day of this period, and an application submitted after the deadline need not be accepted nor considered by the Commission. Applications. Documents submitted to the Commission under this chapter shall consist of an original and the number of copies required by the Commission and shall be in the electronic format required by Commission. Documents and information submitted to the 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. Director Review. Upon receipt of an application by the Commission, the Director shall review the application to determine whether it contains all the information required under this chapter. If the Director determines that the required information has not been submitted, the Director shall notify the applicant in writing and state the nature of the deficiency. An applicant notified in accordance with §D(2) of this regulation may submit the documents necessary to complete the application not later than 15 days after issuance of the notification. When the Director determines that an application contains all of the required information, the Director shall certify in writing that the application has been received by the Commission. An applicant who is notified in accordance with §D(2) of this regulation and who fails to submit the requested documents in a timely manner need not be certified by the Director, and the Commission need not consider the application. Changes in Application. 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 Director in writing of the change or inaccuracy. After an application has been filed by an applicant, the applicant may not amend the application except: To address a deficiency in accordance with a notice sent under §D(2) of this regulation; As required by the Commission or the Commission staff for clarification of information contained in the application; or 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. To amend an application under §E(2)(c) of this regulation, an applicant shall file with the Director a written request to amend the application, stating: The change in the circumstances surrounding the application that necessitates the amendment; The nature of the amendment; and The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission. The Commission shall grant or deny each request filed under §E(3) of this regulation. A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that: The circumstances requiring the amendment were outside the control of the applicant; 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 The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission. An application for an instant bingo principal employee license may be withdrawn if the: Applicant submits a written request to the Commission to withdraw the application; and Written request is submitted before the Commission has denied the application. Burden of Proof. The burden of proof shall be on the applicant to show that the applicant complies with the regulations of the Commission regarding eligibility and qualifications for the license. The Commission may deny an instant bingo principal employee license to an applicant whose past or present conduct would bring the State into disrepute. The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction. Administrative Costs of Background Investigations. Promptly upon receipt of an invoice from the Commission, an applicant for a license shall reimburse the Commission for: The administrative costs associated with performing background investigations of the applicant and any individual required to provide information under Regulation .02 of this chapter; and Any payments made by the Commission to a person approved by the Commission to conduct the background investigations. Failure to reimburse the Commission shall be grounds for disqualification of the applicant and denial of the license application. The Commission may require an advance deposit from an applicant for the Commission’s estimate of the administrative costs of conducting the applicant’s background investigation. The Commission shall refund to an applicant any unused amount of the advance deposit. Payment and Collection. Applicants shall pay the administrative costs and fees required under this regulation by: Wire transfer; Money order; Certified check made payable to the “State of Maryland”; or Any other manner designated by the Commission. Continuing Obligations. Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications. Failure to conform to the information contained in a license application shall be grounds for the Commission invoking against the licensee the sanctions described in Regulation .17 of this chapter. Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is: The applicant; A director, officer, or key management individual employed by the applicant; A partner of the applicant; or An owner of an interest of 5 percent or more in the applicant. An individual listed under §A of this regulation shall furnish the following: Full name and any previous names or aliases; Date of birth; Physical description; Home and business addresses and telephone numbers; Driver's license number and state of issuance; Social Security number; and Passport or identification photo. If the applicant is a corporation, the application documents shall state the: State in which the applicant is incorporated; and Name and address of the applicant's agent for service of process in Maryland. 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. 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. 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. An individual required to provide information under Regulation .02 of this chapter shall also submit a completed background form supplied by the Commission which includes a statement disclosing whether the individual has ever been: Arrested; Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense; Sanctioned by a government agency related to gaming; Found liable in connection with a civil action related to gaming; A debtor in a bankruptcy proceeding; or Denied a bond. An individual who is required to provide personal and background information under Regulation .02 of this chapter shall provide a statement that irrevocably gives consent to the Commission, the Maryland State Police, and persons authorized by the Commission to: Verify all information provided in the application documents; and Conduct a background investigation of the individual. An applicant shall authorize the Commission to have access to any and all information the applicant 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. If the applicant is a corporation, the application documents shall include a: Statement of when the corporation was organized; Copy of the articles of incorporation and bylaws of the corporation; 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 Statement and documentation of whether the corporation has filed restated articles of incorporation. If the applicant is an unincorporated business association, the application documents shall include a: Copy of each organizational document of the applicant, including any partnership agreement; and Description of any oral agreements involving the organization of the applicant. If the applicant is an unincorporated business association, the application documents shall identify: Each person who exercises voting rights in the applicant; and Each person who directly or indirectly owns 5 percent or more of the business association. If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the: Total number of shares; Par value, if any; Voting rights; Current rate of dividend; and Number of shares outstanding and the market value of each share. If the applicant is a corporation, the application documents shall identify each person who: Exercises voting rights in the corporation; and Directly or indirectly owns 5 percent or more of the corporation. 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: Name and address of each stockholder participating in the trust or agreement; Class of stock involved; and Total number of shares held by the trust or agreement. The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the: Name and address of the person holding the proxy; Name and address of the stockholder who granted the proxy; Class of stock for which the proxy may vote; and Total number of shares voted by the proxy. 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. 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. The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation. The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the facility. The application documents shall provide full disclosure for any stock options that may exist or have been granted. 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, either as a director, officer, partner, or an individual having key management responsibility. For each individual listed under §A of this regulation, the applicant shall provide: The individual's name and address; Each position or office of the applicant held by the individual; The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and The nature and extent of any ownership interest that the individual has in the applicant. The application documents shall: State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland; Describe the: Nature of the beneficial ownership; and Extent of control exercised by the beneficial owner; and Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner. The application documents shall state whether the applicant, a director, officer, or partner of the applicant, or an owner of 5 percent or more of an interest in the applicant: Has ever held an ownership interest in a licensee of the Commission; or Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement. The applicant shall describe the nature of participation stated under §A of this regulation. The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license. A bond shall be for the benefit of the State for the faithful performance of the requirements imposed by Maryland Criminal Law Article, §12-301.1, Annotated Code of Maryland, and any regulations issued under that section. The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond. The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee. General. Unless a facility operator holds a valid facility license issued by the Commission, the facility operator may not operate an instant bingo machine. The following persons must meet the Commission's facility license requirements: A facility; and Each person that owns or controls a facility. Qualification Requirements. The Commission may issue a facility license to a facility that has: Paid the application and license fee under §C of this regulation; If required, obtained a bond required under Regulation .10A of this chapter; Furnished the Commission with the information and documentation required under this chapter; and Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license. Application and License Fees. The application fee for a person is: $5,000 for a facility that will operate more than ten instant bingo machines; or $150 for a facility that will operate ten or fewer instant bingo machines. The license fee for a person is: $2,500 for a facility that will operate more than ten instant bingo machines; or $150 for a facility that will operate ten or fewer instant bingo machines. The annual license fee for each instant bingo machine in operation at a facility is $150. The facility license authorizes the licensee to operate an instant bingo machine. The facility license issued by the Commission shall specify the: Date and time at which operations may commence; and Maximum number of instant bingo machines that may be operated by the facility operator under the facility license. The Commission may issue a facility license subject to conditions. The Commission may issue a facility license after determining that: The facility complies with the regulations of this chapter; All instant bingo machines and associated equipment to be used in the facility have been tested and comply with any standards established by the Commission; The facility operator is prepared to implement the internal controls, surveillance and security procedures that are necessary to ensure that the operation of the instant bingo machines and facility is conducted safely and legally. 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 the Commission's regulations. Term; Renewal; License Renewal Fee. The term of a facility license is 15 years. The Commission may renew the license if, before the term of the license expires, the licensee applies for renewal; and Continues to comply with all licensing requirements; Submits to a background investigation under Regulation .03 of this chapter; and Pays a license renewal fee in the amount of the license fee that is required under §C(2) of this regulation. Unless a manufacturer holds a valid manufacturer’s license issued by the Commission or Agency staff, the manufacturer may not offer any instant bingo machine, associated equipment or software, or goods or services that directly relate to the operation of instant bingo machines. The following persons must meet the Commission's manufacturer license requirements: A manufacturer; and Each person that owns, controls, or is a representative of a manufacturer. A manufacturer of instant bingo machines shall meet the requirements of and be licensed as a manufacturer under this regulation or COMAR 36.03.02.13. Qualification Requirements. Agency staff may issue a manufacturer license to a person that has: Paid the application and license fee under §E of this regulation; If required, obtained a bond required under Regulation .10A of this chapter; Furnished the Commission with the information and documentation required under this chapter; and Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license. Application and License Fees. The application fee for a person is $10,000 for a manufacturer of an instant bingo machine. The license fee for a person is $5,000 for a manufacturer of an instant bingo machine. The manufacturer license authorizes the licensee to manufacture or distribute an instant bingo device to a licensed facility. Agency staff may issue a manufacturer license subject to conditions. Term; Renewal; License Renewal Fee. The term of a manufacturer license is 5 years. Agency staff may renew the license if, before the term of the license expires, the licensee applies for renewal and Continues to comply with all licensing requirements; Submits to a background investigation under Regulation .03 of this chapter; and Pays a license renewal fee in the amount of the license fee that is required under §E(2) of this regulation. A manufacturer shall pay the Commission an annual license fee of $150 for each of its instant bingo machines in operation at a facility. A manufacturer who operates, maintains, supports, manufactures, or distributes an unlawful gaming device of any sort is subject to revocation of the instant bingo manufacturer license and any other sanction available under Regulation .17 of this chapter. Unless an individual holds a valid principal employee license issued by the Commission, the individual may not be employed by a licensee as a principal employee. Qualification Requirements. The Commission may issue a principal employee license to an individual who is employed by a licensee, and who has: Paid the application and license fee under §C of this regulation; If required, obtained a bond required under Regulation .10 of this chapter; Furnished the Commission with the personal and background information required under Regulation .02 this chapter; and Provided the Commission with sufficient information to establish that the individual is qualified for a principal employee license. Application and License Fees. The application fee for a principal employee is: $1,250 for a facility that will operate more than ten instant bingo machines; or $150 for a facility that will operate ten or fewer instant bingo machines. The license fee for a principal employee is: $375 for a facility that will operate more than ten instant bingo machines; or $150 for a facility that will operate ten or fewer instant bingo machines. The principal employee license authorizes the licensee to function as a principal employee for any licensee in the State. A principal employee may not play an instant bingo machine or other electronic gaming device at a facility: Where the individual is employed; or That is operated by the individual’s employer. 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 under Maryland Criminal Law Article, §12-301.1, Annotated Code of Maryland or the Commission's regulations. Term; Renewal; License Renewal Fee. The term of a principal employee license is 5 years. The Commission may renew the license if, before the term of the license expires, the licensee: Applies for renewal; Continues to comply with all licensing requirements; Maintains employment as a principal employee; Submits to a background investigation under Regulation .04 of this chapter; and Pays a license renewal fee of: $375 for a facility that will operate more than ten instant bingo machines; or $150 for a facility that will operate ten or fewer instant bingo machines. Sponsored License. The Commission may issue to a principal employee license applicant a sponsored license to permit the individual to legally work as a principal employee before the Commission’s licensing process is complete. A licensed facility operator or manufacturer may submit an application for a sponsored license on behalf of an individual who is seeking a principal employee license. An application for a sponsored license shall be in a format designated by the Commission and shall include: A completed application for a principal employee license; Payment of the fees required under §C of this regulation; and Documentation to verify that the sponsor has: Offered the individual at least conditional employment; Obtained bond as required under Regulation .10 of this chapter; and Performed, at a minimum, a Social Security database check, criminal check, employment verification, and a national database search. The Commission may grant a sponsored license after: Receiving all items required under §H(3) of this regulation; and Performing on the individual a: Criminal background investigation under Regulation .04; and Credit check. A sponsored license: Is valid for one nonrenewable 1-year term; Is not transferable to employment with a different facility operator or manufacturer; and Automatically converts to a principal employee license when the Commission notifies the sponsor that the individual meets the license qualification requirements under §B of this regulation. Unless an individual holds a valid instant bingo manager license issued by the Commission, the individual may not be employed by a licensed facility operator, manufacturer, or contractor as an instant bingo manager. The Commission may issue an instant bingo manager license to an individual who has: Paid an application fee in the amount of $150; Paid a license fee of $150; Unless exempt, obtained a bond required under Regulation .10 of this chapter; Furnished the personal and background information required under Regulation .02 of this chapter; Provided the documentation and fees required under Regulation .03 of this chapter; Executed the consent for investigation required under Regulation .04 of this chapter; Received at least a conditional offer of employment from a licensed facility operator, manufacturer, or contractor; and Provided the Commission with sufficient information to establish that the individual has otherwise qualified for instant bingo manager license. The instant bingo manager license authorizes the licensee to be employed as an instant bingo manager in the State. A instant bingo manager may not play an instant bingo machine or other electronic gaming device at a facility: Where the individual is employed; or That is operated by the individual's employer. 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 the Commission's regulations. Term; Renewal. The term of an instant bingo manager license is 5 years. The Commission may renew the license if, before the term of the license expires, the licensee: Applies for renewal; Continues to comply with all licensing requirements; Maintains employment as an instant bingo manager; Submits to a background investigation under Regulation .02 of this chapter; and Pays a nonrefundable application fee of $150. Sponsored License. The Commission may issue to an instant bingo manager license applicant a sponsored license to permit the individual to work legally as an instant bingo manager before the Commission’s licensing process is complete. A licensed facility operator, manufacturer, or contractor may submit an application for a sponsored license on behalf of an individual who is seeking an instant bingo manager license. An application for a sponsored license shall be in a format designated by the Commission and shall include: A completed application for an instant bingo manager license; Payment of the application fee required under §B(1) of this regulation; Documentation to verify that the sponsor has: Offered the individual at least conditional employment; Obtained bond as required under Regulation .10 of this chapter; and Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search. The Commission may grant a sponsored license after: Receiving all items required under §G(3) of this regulation; and Performing on the individual a: Criminal background investigation under Regulation .02 of this chapter; and Credit check. A sponsored license: Is valid for one nonrenewable 1-year term; Is not transferable to employment with a different facility operator, manufacturer, or contractor; and Automatically converts to an instant bingo manager license when the Commission notifies the sponsor that the individual meets the license qualification requirements under this regulation. The Commission shall issue an identification card to an individual who is employed by a licensed facility operator or manufacturer and licensed as a principal employee or instant bingo manager. Identification Card. An identification card shall display a photograph of the licensee, and at a minimum, indicate: The individual's name; By color, pattern, or symbol, the licensing category; and The license expiration date. An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed facility operator or manufacturer. An identification card is the property of the Commission. Licensee Obligations. A licensee: Shall wear or otherwise prominently display his or her identification card at all times while working; Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission; May not allow another individual to possess the card; and Shall comply with an order of the Commission to surrender the card. Replacement Identification Card. If the identification card of a licensee who is employed by a licensed facility operator, manufacturer, or contractor is lost or stolen: The licensee shall immediately: Report the loss or theft to his or her employer; and 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 After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee; If the identification card of a licensee who is employed by a licensed facility operator or manufacturer is temporarily unavailable to the licensee: The licensee shall immediately: Report the temporary unavailability of the card to his or her employer; and In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable; After verifying the licensee’s identity, the Commission may issue a temporary identification card to the licensee that is valid for 30 days; and The licensee shall surrender the temporary identification card to the Commission by the end of the 30th day on which he or she received the card. If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission: $40 for the cost of a replacement identification card; and $20 for the cost of a temporary identification card. Surrender and Reissuance of Identification Card. The licensed facility operator or manufacturer that employs, or employed, a licensee shall ensure that the licensee surrenders his or her identification card to the Commission if the: Commission suspends or revokes the license; License is not renewed; Licensee separates from employment with a licensed facility operator or manufacturer; or Licensee is otherwise ordered to surrender the identification card. If an identification card is not surrendered as required under §D(2)(c) or §E(1) of this regulation, the licensed facility operator or manufacturer that employs, or employed, the licensee may be subject to a sanction under COMAR 36.07.17. If an identification card was surrendered when the licensee separated employment from a licensed facility operator or manufacturer, the Commission may issue the licensee another identification card if the: Licensee obtains employment with a licensed facility operator or manufacturer; Term of the license has not expired; and Commission verifies: The licensee’s identity; That the license was in good standing when the card was surrendered; and That the license has not expired and remains in good standing. There is no fee for an identification card issued under §E(3) of this regulation. Nothing in this regulation shall preclude the Commission from imposing on the licensee a sanction that is based on the circumstances related to a licensee’s separation from employment with a licensed facility operator or manufacturer. Deficiency. Assess the seriousness of the deficiency; Require the licensee to develop a corrective action plan; Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the license; Evaluate and, if acceptable to the Agency, approve the corrective action plan; Determine appropriate timelines for the completion of corrective action; Conduct periodic monitoring of a licensee for which the Agency required a corrective action plan to assess the licensee’s progress toward remedying the deficiencies; and Recommend that the Commission impose a sanction under Regulation .17 of this chapter if a deficiency is not remedied through implementation of corrective action. Deficiency Notice. A description of the violation; A description of the possible sanctions; and The requirement for the licensee to submit a corrective action plan to the Director within a time frame established by the Director. Corrective Action Plan. Within 10 days of receipt of a deficiency notice under §B of this regulation, the licensee shall submit a corrective action plan to the Director for the Director’s approval. The Director shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable. If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may: Provide the licensee with additional time within which to submit a revised corrective action plan; or Impose a sanction on the licensee under Regulation .17 of this chapter. If the Director provided a licensee notice under §B(3) of this regulation and received no timely written response, the Commission may adopt as final the Director’s decision to impose a sanction under Regulation .17 of this chapter. Corrective Action Outcomes. If at any time during the corrective action period the Director determines that the licensee has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may: For good cause, extend the time for completion of a corrective action plan; or Emergently suspend the licensee’s license. If at the end of the corrective action period the licensee has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .17 of this chapter. The Director may impose sanctions on a licensee for: Violating or failing to fulfill the licensee’s responsibilities under this subtitle or a condition of a license; Violating: A provision of the law; A regulation adopted under the law; or An order or directive of the Commission; Providing the Commission with false or misleading information; Failing to cooperate with the Commission; Failing to remit, or failing to make timely remittance of, funds owed to the Commission; Failing to prepare, submit, or implement an adequate corrective plan under Regulation .16 C of this chapter; Incurring criminal charges related to the conduct of illegal gaming; Possessing materials or equipment indicating involvement by the licensee or the licensee’s employees in the conduct of illegal gaming; or Other activities or action deemed by Director to require the imposition of a sanction. Types of Sanctions. Sanctions may include emergency suspension, suspension, revocation, and placement of conditions on the license. Suspension, Revocation, and Conditions. Except as set forth in §D of this regulation, the Director shall give the licensee notice of the intended suspension, revocation, or imposition of a condition at least 15 days before the imposition of the intended sanction. A licensee may appeal the Director’s imposition of a sanction before the date the sanction is imposed by submitting a request for a hearing before the Commission. The final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. Emergency Suspension. Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by a licensee to the security, financial stability, reputation, or integrity of the instant bingo program, the Director may suspend a license without prior notice. If the Director emergently suspends a license, the Director shall provide the licensee with written notice that includes: A statement of the authority upon which the suspension is based; The nature of the violation; The duration of suspension; Information about the licensee’s obligation to submit to the Agency a corrective plan; and A statement of the licensee’s right to request a Commission hearing. If after a license is emergently suspended, the licensee does not submit a timely written request for a Commission hearing, the Director may move to revoke the license by giving the licensee notice under §C(1) of this regulation. Recommended Sanctions. The Director or the Director’s designee may recommend a sanction concerning a license. If the Director or the Director’s designee recommends a sanction, including revocation, the Director or Director’s designee shall promptly provide the licensee with written notice of the: Recommendation; Basis for the recommendation; and Applicant’s right to request a hearing with the Commission. A licensee may submit to the Commission a request for a hearing: Within 15 days of the date of the recommendation of the Director or the Director’s designee; and Identifying the legal and factual bases for disagreeing with the recommendation of the Director or the Director’s designee. If a licensee fails to timely submit a hearing request under §A(3) of this regulation the Commission may adopt as final the recommendation of the Director or the Director’s designee. Denial of a License. After reviewing an application submitted under Regulation .02 of this chapter, the Director or the Director’s designee may recommend that the Commission deny a license. If the Director or Director’s designee recommends that the Commission deny a license, the Director, or the Director’s designee, shall promptly provide the applicant with written notice of the: Recommendation for denial; Basis for the recommendation; and Applicant's right to request a reconsideration meeting with the Director or the Director's designee. 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 §B(1) of this regulation. If an applicant fails to timely submit a request under §B(2) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee. During a reconsideration meeting, an applicant may: Be represented by counsel; and Present evidence as to why the license should be granted; 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 request for hearing before the Commission on the recommendation of the Director or the Director's designee; and The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee. 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. If an applicant fails to timely submit a hearing request under §B(5), the Commission may adopt as final the recommendation of the Director or the Director's designee. A hearing request that complies with §B(5) and (6) of this regulation shall be the subject of a hearing before the Commission, after which the Commission shall: Determine that the applicant is qualified and grant the license; or Determine that the applicant is not qualified or disqualified; and Deny the license; and Prepare an order denying the license with a statement of the reasons and specific findings of fact. The Commission's decision is final. A Commission hearing shall be conducted in the manner specified in: State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland; and COMAR 36.01.02.06. State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland Effective date: Regulations .01—.18 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) Regulation .12A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 Md. R. 529) Regulation .18 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 Md. R. 529) A facility operator shall submit its proposed hours of operation to the Commission for written approval. A facility operator shall, at its own expense, construct its facility in accordance with specifications established by the Commission, including: Computer space for the instant bingo validation and accounting server that is: Equipped with heating, ventilation, and air conditioning; Supplied with power including an uninterruptible back-up power supply; Secured with a key or alternative locking mechanism; and Covered by a surveillance system enabled to record all entry and exit to the computer space and activity in the area; A surveillance system approved in writing by the Commission that is: Configured to provide surveillance of all instant bingo machines and related activities within the facility in accordance with standards established by the Commission; and Enabled with a digital video recording format in accordance with standards established by the Commission; An alarm system connected to all emergency exits from the gaming floor that produces a distinguishable warning sound discernible in the vicinity of an exit when the emergency door is opened; Any signage required by the Commission; Communication systems capable of effecting timely communication between the facility, law enforcement exercising proper jurisdiction over the facility, emergency first responders; and Any other equipment or design feature required by the Commission. A facility operator shall submit a floor plan depicting its gaming floor and all restricted areas to the Commission for review and written approval. A facility operator may not commence operations until its gaming floor plan is approved in writing by the Commission. A gaming floor plan that a facility operator submits to the Commission shall depict: The gaming floor with a notation as to: Total square feet; Total square feet utilized for the placement of instant bingo machines; The location of each instant bingo machine; All restricted areas within the facility with a notation as to: Locations for redemption of instant bingo tickets; Location for the counting of currency from instant bingo machines; Locations for the storage of currency; Computer space allocated to the instant bingo validation and accounting system; An area designated for the storage or repair of instant bingo machines; Surveillance monitoring room; and Locations for the storage of instant bingo tickets. Each surveillance camera; and Each automated teller machine. A facility operator may not implement any change to its approved gaming floor plan without the prior written approval of the Commission. State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland Effective date: Regulations .01—.03 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) A facility operator shall maintain complete, accurate, and legible books and records of all transactions pertaining to the revenues and expenses of a facility. General ledger books and records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States. Subsidiary ledgers books and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States. Subsidiary ledgers and books and records shall include, at a minimum, documents that: Support the financial statements and all transactions impacting the financial statements including contracts or agreements with manufacturers, contractors, and management companies; Identify for instant bingo machine on a week-to-date, month-to-date and year-to-date basis: Coin in; Coin out; Win amount; Win percentage; and Payout percentage; Identify all costs and expenses associated with the operation of a facility; Are prepared in compliance with the internal controls approved by the Commission under this chapter; and Relate to: Loans and other amounts payable by a facility operator; and Investments in property and equipment for the benefit of a facility. A facility operator shall provide a list and written description of forms or documents used in its instant bingo operations. A form or document, including stored data, shall have: All information placed on the form or document recorded in ink or other permanent form; and The title of the form or document and the name of the facility imprinted or preprinted on it. A facility operator shall develop a written description of its administrative and accounting procedures including the system of internal controls over instant bingo operations. A facility operator’s internal controls are subject to review and approval under this regulation. Internal controls shall, at a minimum, include: Administrative controls and record keeping that document the authorization of transactions; Accounting controls that provide reasonable assurance that: Transactions or financial events which occur in connection with instant bingo operations are: Executed in accordance with the facility operator’s authorization protocols; Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets; Access to assets is permitted only in accordance with the facility operator’s authorization protocols; and The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy; Procedures and controls for ensuring: That an instant bingo machine accurately and timely communicates all required activities and financial details to the instant bingo validation and accounting system; That all functions, duties and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster or any other cause; Access controls which address, at a minimum: Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas; Issuance of a temporary access credential; and Comprehensive key controls; A record retention policy; Procedures and controls over the movement of cash and the count room; Procedures and standards for conducting internal audits; and Other procedures and controls the Commission may require to be included in a facility operator’s internal controls. A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls for at least five years subsequent to the date the internal controls were superseded. A facility operator shall submit its internal controls to the Commission for review and written approval. If the Commission determines that a submitted internal control is deficient, the: Commission shall provide the facility operator with written notice of the deficiency; and Facility operator shall revise the internal control as appropriate and resubmit it to the Commission for review. A facility operator’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission. The process developed by the Commission under §C of this regulation shall, at a minimum, require the facility operator to: Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out; Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review; Submit a narrative explaining the reason for the change or amendment which includes the facility operator’s target date for implementation; Maintain a log of all changes or amendments in approved internal controls which includes the initial approval date and the effective date of any change or amendment approved by the Commission; and Mark each page of approved internal controls with the date on which it was approved by the Commission. The Commission may require a facility operator to submit monthly, quarterly, and annual reports of financial and statistical data. Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission. The Commission may, on written notice to a facility operator, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission. A facility operator who operates more than ten instant bingo machines shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant. The annual financial statement shall include the method of calculation and a statement of the gross receipts subject to the admissions and amusement tax. The annual financial statements shall be prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States. The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .05 of this chapter and the audited financial statements. With regard to adjustments resulting from the annual audit. a facility operator shall: Disclose to the Commission all adjustments, whether or not recorded in the accounting records; and Record the adjustment in the accounting records of the year to which the adjustment relates. Not later than 120 days after the end of its fiscal year, a facility operator shall submit to the Commission: A copy of its audited financial statements; and Any management letter or report prepared with regard to the financial statements by its independent certified public accountant. A facility operator shall prepare a written response to the reports required by §E of this regulation which includes details as to any corrective action taken. A facility operator shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements: Resigns; Is dismissed as the facility operator’s principal accountant; or Is replaced by another independent certified public accountant as principal accountant. A report that is required to be filed under §G of this regulation shall include: The date of the resignation, dismissal, or new engagement; Whether in connection with the audits of the 2 most recent years preceding a resignation, dismissal or new engagement there were any disagreements, resolved or unresolved, with the former accountant on: Accounting principles or practices; Financial statement disclosure; or Auditing scope or procedure; The nature of any disagreement disclosed in §H(2) of this regulation; Whether the principal accountant's report on the financial statements for either of the past two years contained an adverse opinion, disclaimer of opinion or was qualified; The nature of any adverse opinion, disclaimer of opinion or qualification; and A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the facility operator in the report to the Commission submitted under this section. A report required to be filed under §G of this regulation shall be submitted to the Commission not later than 10 days after the end of the month in which the resignation, dismissal or new engagement occurred. A facility operator shall develop written record retention procedures for its instant bingo machine operations. All original books and records shall be: Prepared and maintained in a complete, accurate, and legible form; Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete; Retained in a secure location equipped with a fire notification system at: The facility; or An off-site location approved by the Commission for the express purpose of document storage; Kept immediately available for inspection by the Commission during all hours of operation; Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and Destroyed only after expiration of the minimum retention period required under this regulation. On submission of a written request by a facility operator, the Commission may, authorize destruction prior to the expiration of the minimum retention period required under this regulation. Unless a request for destruction is submitted in writing and approved in writing by the Commission, a facility operator shall retain indefinitely original books and records documenting: Ownership of the facility; Internally initiated investigations and due diligence; Personnel matters; Destruction of documents including: The identity of the document; Period of retention; and Date of destruction. Unless a request for destruction is submitted in writing and approved in writing by the Commission, a facility operator shall retain for a minimum of five years all original books and records. Nothing in this regulation shall be construed as relieving a facility operator of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity. For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to use that particular title. Subject to the requirements of this regulation, a facility operator shall tailor its table of organization to meet its needs and policies. A facility operator shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for instant bingo operations: A facility operator’s table of organization shall include: A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility; The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position both to: Commit an error or to perpetrate a fraud; and Conceal the error or fraud in the normal course of the individual’s duties; The performance of all functions, duties and responsibilities by qualified personnel; Areas of responsibility which are not so extensive as to be impractical for one individual to monitor; and A General Manager: Based for employment purposes at the facility; Licensed as a principal employee; and Ultimately responsible for the daily conduct of all operations at the facility. A facility operator may not implement a change in the table of organization approved by the Commission under §D of this regulation without the prior written approval of the Commission. A facility operator shall ensure that an individual employed at the facility is trained in the policies, procedures, and internal controls relevant to the individual’s function. If there is a vacancy in the General Manager position: Not later than 5 days after the date of a vacancy, the facility operator shall notify the Commission in writing of: The vacant position; The date on which the position will become or became vacant; and The date on which the facility operator anticipates that the vacancy will be filled on a permanent basis; Not later than 30 days after the date of a vacancy, a facility operator shall fill the vacant position on a temporary basis; Not later than 120 days after the original date of the vacancy, a facility operator shall fill the vacant position on a permanent basis; and Not later than 5 days after filling a vacancy, a facility operator shall notify the Commission in writing of: The vacant position filled; The name of the individual designated to fill the position; The date that the vacancy was filled; and Whether the vacancy has been filled on a temporary or permanent basis. A facility operator shall install in its facility a surveillance system that complies with the requirements of this regulation. A facility operator’s surveillance system shall be reviewed and approved by the Commission under Regulation .10 of this chapter. A facility operator’s surveillance system shall include: Light sensitive cameras that are: Enabled by lenses of sufficient magnification to observe instant bingo operations; Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and Configured to clandestinely monitor and record: Play and transactions conducted at instant bingo machines; Transactions conducted at cashier locations including the face of each individual transacting business with a cashier; Transactions conducted at automated teller machines; Activity in the count room; Movement of cash and cash storage boxes within the facility; Entrances and exits to the facility; Activities in all other restricted areas; and Other areas and events designated by the Commission; Digital video recording capability equipped to: Superimpose the date and time on all monitoring and recording; Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded; and Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images. Except as provided in §E of this regulation, a facility operator shall retain surveillance recordings for a minimum of 7 days. Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording. A facility operator shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions. A facility operator shall comply in a timely fashion with a request from the Commission to: Use, as necessary, any monitor room in the facility; Display on the monitors in its monitor room any event capable of being captured by the surveillance system; Relinquish control of a camera or monitor; Discontinue monitoring a particular camera or recording activity captured by it; Make a video recording or photograph of any event capable of being captured by the surveillance system; and Restrict or deny access to a recording or photograph. A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission. A facility operator shall submit to the Commission for review and written approval its surveillance operating procedures. A facility operator’s surveillance operating procedures shall, at a minimum, require: Coverage of all areas and transactions enumerated in Regulation .09; Contingency plans addressing: Full and partial failure of the surveillance system including: A contact list with telephone numbers for individuals required to be notified in the event of a failure; and Facility closure protocols; and Planned shutdown of the surveillance system; A surveillance incident log: Maintained in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting the scheduled coverage in §B(1) of this regulation and all other non-routine surveillance activity, such as: The date and time surveillance is commenced; The name of the individual initiating, performing, or supervising the surveillance; The reason for the surveillance; Whether the suspicious activity involves an alleged regulatory violation or criminal activity; The name, if known, alias or description of an individual being monitored; A description of the activity in which the individual being monitored is engaged; A reading on a meter, counter or device that identifies the point on the video recording at which the event was recorded; The time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated; The date and time surveillance is terminated; A summary of the results of the surveillance; and A description of the time, date and cause of any equipment or camera malfunction which occurred during the conduct of surveillance; A facility operator may not implement a change or amendment in its surveillance system or surveillance operating procedures approved by the Commission without the prior written approval of the Commission. A facility operator shall submit to the Commission for review and written approval its security operating procedures. A facility operator’s security operating procedures shall, at a minimum, include: A security zone plan for the facility designed to ensure: The physical safety of employees and invitees to the facility; The safeguarding of assets; Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures; That intoxicated individuals are identified, prohibited from entering the facility and, if necessary, immediately removed from the facility; and That an individual under the age of 18 years is identified, prohibited from playing instant bingo and, if necessary immediately removed from the facility; and Procedures and controls addressing: Facility access controls including: An access badge or key system; If utilized, specifications pertaining to a computerized access control system; and Administrative responsibility over a manual or computerized access control system; A temporary access credential; Key controls; Emergency alarm and fire command responsibilities; Evacuation of the facility in the event of fire or other emergency; The identification and immediate removal of an intoxicated individual, and, if applicable, an individual under the age of 18 years; and The notice requirements of §(B)(4) of this regulation; A security incident log: Maintained in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting: The assignment number of the incident; The date and time of the incident; The name of the person covering the incident; The nature of the incident; and The resolution of the incident; and A requirement that a facility operator notify the Commission upon detection of: An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; and An individual who is: Under the age of 18 years and has played instant bingo; or Intoxicated. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing physical access to the instant bingo validation and accounting system equipment located in the facility. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the general conduct of cashiers’ transactions. A facility operator shall at all times maintain a reserve cash bankroll sufficient to pay all winning wagers. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the payment of a jackpot or credit meter payout not totally and automatically paid by an instant bingo machine. A facility operator shall prepare and timely file IRS Form W-2G, Certain Gambling Winnings as required by the IRS. A facility operator shall pay a jackpot or credit meter payout of: $10,000 or more by check; and Less than $10,000 by: Cash or check; or Check on the request of a player. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing cash storage boxes to include: Access controls for cash storage boxes including: Key controls for access to cash storage box within instant bingo machines; Key controls for access to the currency contained within cash storage boxes; and A method for association of the contents of a cash storage box with an instant bingo machine. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the collection of cash storage boxes including: An access control matrix indicating which employee positions are authorized to participate in the cash storage box collection process; and Details of the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage boxes. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the counting and recording of cash storage boxes. A facility operator’s internal controls shall: Detail the actual procedures to be performed and documentation to be generated by: Count team employees conducting the counting process; and The employee verifying and accepting the count; and Require two separate counts and, if the separate counts are not in agreement, document the discrepancy. A facility operator shall report in writing to the Commission within 72 hours of the count: Any variance greater than $20 between the actual count of cash, in a cash storage box as determined in the count room and the amount for that particular cash storage box recorded on the: Facility operator’s instant bingo machine; and The instant bingo validation and accounting system; The reason for the variance; and The corrective action taken or adjustments made. A facility operator shall attempt to timely resolve a dispute with a player concerning operation of an instant bingo machine or payment of alleged winnings. A facility operator who is unable to satisfactorily resolve a dispute with a player shall provide the player with a Commission player complaint form together with instructions for completing and submitting the form. The Commission shall investigate a complaint submitted to the Commission and notify the player and facility operator of its determination. A facility operator shall submit to the Commission for review and approval internal audit standards and procedures designed to test the facility’s compliance with its internal controls. Criminal Law Article, §§ 12-301. 1 and 12-308; State Government Article, §9-110; Annotated Code of Maryland Effective date: Regulations .01— .19 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) Regulation .06A amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .14B amended effective May 25, 2026 (53:10 Md. R. 459) A person who transports an instant bingo machine shall comply with applicable provisions of 15 U.S.C. §§1171—1178, commonly known as the Johnson Act. Unless otherwise directed by the Commission, a person shall submit a written notice to the Commission prior to transporting an instant bingo machine. For each instant bingo machine to be transported, a person proposing to transport the machine shall submit to the Commission a written notice containing: The name and address of person initiating transportation; The reason for transportation; The method of transportation; The name of and address of the carrier; The anticipated beginning and end dates of transportation; The name and address of the destination; The name and address of the manufacturer; The manufacturer's serial number; The model number; A description of the instant bingo machine to be transported; and Any other information requested by the Commission. A person proposing to transport or transporting an instant bingo machine shall promptly submit to the Commission written notice of any changes to the information already submitted as required under §B of this regulation. A person transporting an instant bingo machine shall plainly and clearly label the package so that the name and address of the shipper and recipient, and the contents of the package, may be readily ascertained during an inspection of the outside of the package. After delivery of an instant bingo machine, the facility to which the machine is delivered shall promptly submit to the Commission written notice that includes: The date instant bingo machine was received; The date instant bingo machine will be placed into operation; and Any other information requested by the Commission. Storage. If an instant bingo machine will not be placed into operation upon delivery to a facility, the facility shall provide the Commission with written notice that includes: A precise identification of the instant bingo machine; The reason for storage; The storage facility’s location; and Any other information requested by the Commission. A facility may store an instant bingo machine only in a manner that the Commission has approved. The Commission shall maintain a register of each instant bingo machine placed in operation in the State. For each instant bingo machine placed into operation, the Commission shall: Assign an instant bingo machine certification control number; and Affix a Commission certification tag. An instant bingo machine may not be transported out of the State unless the Commission: Approves the action; and Removes the certification tag. The Commission may test instant bingo machines and associated equipment for: Accuracy; and Any other function that the Commission determines may be necessary to validate the proper functionality and performance of the machines and equipment. A facility shall obtain prior written Commission authorization before taking any of the following actions with respect to an instant bingo machine or associated equipment in its facility: Placing a machine into operation; Changing percentage payout; Changing software or hardware that has been tested by the Commission’s independent test laboratory; or Performing any other action that materially alters or interrupts the operation of a machine. Before the Commission may authorize an action described in §A of this regulation, a facility shall provide the Commission with written notice of the request that includes: A description of proposed action; The location of action; The start and end dates and times; The estimated “go live” date for the machine; Documentation demonstrating the approval of the manufacturer of the affected instant bingo machine; and Any other information requested by the Commission. Notice of Changes. A facility shall submit to the Commission written notice of any changes to the information already submitted under §A or B of this regulation. Commission Response to Request for Authorization. The Commission may impose additional requirements on the facility or the manufacturer before authorizing the action. The Commission may deny approval of the action. A facility shall notify the Commission if the action is not completed as approved by the Commission. State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland Effective date: Regulations .01—.05 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) A manufacturer may not offer the equipment, systems or software enumerated in §E of this regulation, or a modification to a Commission approved version of that equipment, system or software, for sale, lease, distribution or use in a facility without it having been: Tested and certified by an independent certified testing laboratory; and Approved in writing by the Commission. A facility operator may not purchase, lease, or otherwise acquire the right to install, utilize, or make available for use the equipment, systems, or software enumerated in §E of this regulation, or a modification to a Commission approved version of that equipment, system, or software, without it having been: Tested and certified by an independent certified testing laboratory; and Approved in writing by the Commission. A facility operator may not modify, alter or tamper with an instant bingo machine or associated validation and accounting system. Modification, alteration, or tampering with an instant bingo machine or associated validation and accounting system may result in the immediate suspension of a facility license by the Commission. The testing, certification, and approval requirements of this regulation shall, at a minimum, apply to: The instant bingo machine validation and accounting system; An instant bingo machine; The interoperability between an instant bingo machine and: An instant bingo machine validation and accounting system; and Any other component integral to the operation of the device; and Other equipment, systems, or software designated for testing and certification by the Commission. A prototype of equipment, a system, or software required to be tested, certified, and approved under §E of this regulation, or a modification to a Commission approved version of that equipment, system, or software shall, at a minimum, be tested for: Overall operational integrity; Compliance with applicable state laws and commission regulations; and Any other standards required by the Commission pertaining to the equipment, system, or software. If a facility operator develops any equipment, system, or software that is functionally equivalent to that enumerated in this regulation, or modifies a Commission approved version of that equipment, system or software, the facility operator shall be subject to the testing, certification, and approval requirements of this chapter to the same extent as if the equipment, system, or software were developed or modified by a manufacturer. A manufacturer shall pay all costs of testing, certification, and approval under this chapter including, but not limited to, all costs associated with: Transportation; Equipment and technical services required by an independent certified testing laboratory to conduct the testing and certification process; and Implementation testing. A manufacturer seeking Commission approval for equipment, a system, or software other than an instant bingo machine shall submit the equipment, system, or software to an independent certified testing laboratory. A manufacturer seeking Commission approval for a modification to a Commission approved version of equipment, a system, or software other than an instant bingo machine shall submit the proposed modification to an independent certified testing laboratory. At the conclusion of testing of a prototype or modification of equipment, a system or software other than an instant bingo machine, an independent certified testing laboratory shall issue to the Commission a certification report in: An electronic form; and A format acceptable to the Commission. A manufacturer seeking Commission approval for an instant bingo machine shall submit the instant bingo machine to an independent certified testing laboratory. A manufacturer seeking Commission approval for a modification to a Commission approved version of an instant bingo machine, including a change in theme, shall submit the modification to an independent certified testing laboratory. At the conclusion of testing of a prototype or modification to an instant bingo machine, an independent certified testing laboratory shall issue to the Commission a certification report in: An electronic form; and A format acceptable to the Commission. Upon receipt of a certification report from an independent certified testing laboratory, but prior to a decision to approve a prototype or modification to an instant bingo machine, the Commission may require a trial period. A trial period shall be of a scope and duration the Commission deems appropriate to assess the operation of the instant bingo machine in a live gaming environment. A trial period shall be subject to compliance by the manufacturer and the facility operator with specific terms and conditions required by the Commission, which may include: Development and implementation of product specific accounting and internal controls; and Periodic data reporting to the Commission. The Commission may order termination of the trial period at any time upon a determination by the Commission that: A manufacturer or facility operator has not complied with the terms and conditions required by the Commission; or The instant bingo machine is not performing as expected. Upon receipt of a certification report from an independent certified testing laboratory, the Commission may: Approve the prototype or modification, with or without specific conditions; Reject the prototype or modification; Require additional testing; or Require a trial period under §G of this regulation. Commission approval of a prototype or modification of an instant bingo machine does not constitute a guarantee of its safety or reliability. Upon request, a manufacturer shall deliver to the Commission: Technical and operator manuals, pay table information; A file, in a form satisfactory to the Commission, describing the instant bingo machine including: Manufacturer’s: Serial number; Model number; Software identification number; and Version number; Denomination or a designation as multi-denomination; Cabinet style; and Other information required by the Commission. Notwithstanding the requirements of Regulations .02C and .03C of this chapter, the Commission may, on submission of a written request by a manufacturer, authorize installation of a modification to equipment, a system or software required to be tested, certified, and approved by the Commission under Regulation .01E of this chapter, on an emergency basis. A written request submitted by a manufacturer to the Commission shall document the: Equipment, system, or software proposed for emergency modification including: Software identification number; and Version number; Facility; Reason for the emergency modification; and Proposed date and time of installation. A manufacturer may not install an emergency modification without the written approval of the Commission. Not more than 15 days following receipt of Commission authorization on an emergency modification, a manufacturer shall submit a modification identical to that receiving emergency authorization for testing, certification, and approval under this chapter. A manufacturer or facility operator shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission. A manufacturer shall: Confirm in writing any notice given to the Commission verbally pursuant to §A of this regulation; and If required by the Commission, notify a facility operator of any known or suspected defect or malfunction in equipment, a system, or software installed in its facility. A facility operator shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission. A facility operator shall confirm in writing any notice given to the Commission verbally pursuant to §C of this regulation. The Commission may, at any time, revoke an approval granted under Regulations .02, .03, or .04 of this chapter to equipment, a system, or software on a determination by the Commission that the equipment, system, or software does not comply with the technical standards specified by the Commission pertaining to the equipment, system, or software, as amended or clarified. The Commission may, at any time, impose additional conditions on the operation or placement of Commission approved equipment, systems, or software. A revocation by the Commission of an approval under §A of this regulation does not give rise to an appeal right. An instant bingo machine shall be configured to lock-up and preclude further play following a single jackpot event: Requiring the filing of an IRS Form W-2G, Certain Gambling Winnings, as required by the IRS; or At an amount lower than the IRS requires for reporting, as approved by the Agency. The following error conditions shall result in placement of instant bingo machine in a disabled mode, shall prevent play, and shall only be cleared by a manufacturer and/or operator: Low RAM battery; Printer: Failure; Jam; or Out of paper; Ticket dispenser: Failure; Jam; or Out of tickets; Presentation error; Program error or defective program storage media; Reel spin error; Removal of the control storage media; RAM defective or corrupted; and Bill validator jam. An instant bingo machine shall be capable of recalling and displaying a complete play history for the most recent game event and at least three games immediately preceding the most recent game event and shall: Be presented in the same sequence as the original game play; Be available when the instant bingo machine is in: Idle mode; Administrative mode; Disabled mode; and Tilt mode; and Include: Game outcome in graphics or text; The base game and all intermediate play decisions; Details sufficient to determine the credits available at the start and end of each game event; Wagers placed per line; Number of lines on which wagers were placed; and Credits won. A manufacturer and/or operator shall equip an instant bingo machine with a maintenance log for use in documenting each time a: Instant bingo machine is entered; or A device connected to an instant bingo machine which may affect the operation of the instant bingo machine is accessed. A maintenance log shall be: Signed by each individual accessing an area enumerated in §D of this regulation including representatives of a manufacturer, contractor, facility operator or the Commission; Maintained in a book with bound numbered pages that cannot be readily removed: In the main cabinet of the instant bingo machine; and On the cover of which are fields to record: The instant bingo machine’s manufacturer’s serial number; Commission certification number; and A log book sequence number; Utilized to document the following: Date and time of entry; Entering individual's signature; Reason for entering the instant bingo machine including the identification of areas inspected or repaired; and Retained by a facility operator for a minimum of two years from the date of the last entry unless a request for destruction is submitted in writing and approved in writing by the Commission. A manufacturer may not perform from a remote location analysis of, or technical support with regard to, an instant bingo machine or instant bingo validation and accounting system without: Submission of a written request to the Commission; and The written approval of the Commission. A facility operator intending to authorize remote access to an instant bingo validation and accounting system under this regulation shall include in its internal controls submitted for Commission approval under a written system of access protocols which require: A unique system account for each employee of a manufacturer identified by the manufacturer as potentially required to perform technical support from a remote location; Use of a dedicated and secure communication facility; Prior notice by the manufacturer of intent to remotely access a system to the: Facility operator; and Commission; The facility operator to take affirmative steps, on a per access basis, to activate a manufacturer’s access privileges; Imposition of limits on the ability of any individual authorized under this regulation to deliberately or inadvertently interfere with: The normal operation of the system; and Its data; An access log: Maintained by both the: Manufacturer; and Facility operator’s information technology department; Maintained in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting the: Manufacturer version number of the system accessed; Type of connection as leased line, dial in modem, or private WAN; Name of the manufacturer employee remotely accessing the system; Name of the information technology department employee activating the manufacturer's access to the system; Date and time of the connection; Duration of the connection; Reason for the remote access including a description of the symptoms or malfunction prompting the need for remote access to the system; and Any action taken or further action required. A facility operator may not authorize a manufacturer to remotely access an instant bingo validation and accounting system until its system access protocols are approved in writing by the Commission. Any modification to a system required to be tested, certified and approved by the Commission shall be processed as: An emergency modification under Regulation .05 of this chapter; or A standard modification under Regulations .02(B) and .03(B) of this chapter. If an employee of a manufacturer is no longer employed or authorized by a manufacturer to remotely access a system pursuant to this regulation, the manufacturer shall: Immediately notify in writing: Any facility operator that has established a unique system account for that employee of the change in authorization; and The Commission; and Verify with each facility operator notified of the change in authorization that the access privileges of the individual have been revoked. A manufacturer or facility operator may not utilize a location outside of a facility to store or repair equipment, systems, software, or related parts and inventory for use in a facility without the storage facility being: Inspected by the Commission; and Approved in writing by the Commission. A manufacturer or facility operator shall locate a storage facility in Maryland in a location or locations that reasonably permit the delivery of the support and technical services. A manufacturer or facility operator shall submit to the Commission a written request to utilize a storage facility under §A of this regulation which includes, at a minimum: Address; Physical description of the storage facility; Specifications for the surveillance system that has been or will be installed at the proposed storage facility; and Security procedures for the storage facility. State Government Article, §9-110; Criminal Law Article, §§ 12-301. 1 and 12-308; Annotated Code of Maryland Effective date: Regulations .01— .10 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019) Regulation .08A amended effective May 25, 2026 (53:10 Md. R. 459) A facility shall establish a responsible gaming plan that includes at least the following elements: Goals; Procedures and deadlines for implementation; Identification of facility personnel responsible for implementation; Responsibilities of facility personnel identified as responsible for implementation; Training for facility personnel on problem gambling; Means of educating players about: Problem gambling; and Problem gambling treatment resources, including treatment and prevention programs; Placement of responsible gambling awareness materials in the facility; and Any other element required by the Commission. A facility operator shall submit to the Commission the responsible gaming plan required under §A of this regulation for review and approval. A facility operator shall submit any amendments to a facility’s responsible gaming plan to the Commission prior to implementation. A facility operator shall submit to the Commission an annual report describing the operation of the facility’s responsible gaming plan. State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland Effective date: Regulation .01 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)