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<chapter num="02" heading="Application and Licensing" title_num="36" subtitle_num="07">
  <regulation prefix="Regulation" num=".01" heading="Process.">
    <paragraph num="A.">
      <text>Upon filing an application for a license under this subtitle, the applicant shall pay a nonrefundable application fee established by the Commission.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Applications.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Director Review.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Changes in Application.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>After an application has been filed by an applicant, the applicant may not amend the application except:</text>
        <paragraph num="(a)">
          <text>To address a deficiency in accordance with a notice sent under §D(2) of this regulation;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>As required by the Commission or the Commission staff for clarification of information contained in the application; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>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.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>The change in the circumstances surrounding the application that necessitates the amendment;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The nature of the amendment; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>The Commission shall grant or deny each request filed under §E(3) of this regulation.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that:</text>
        <paragraph num="(a)">
          <text>The circumstances requiring the amendment were outside the control of the applicant;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>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</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(6)">
        <text>An application for an instant bingo principal employee license may be withdrawn if the:</text>
        <paragraph num="(a)">
          <text>Applicant submits a written request to the Commission to withdraw the application; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Written request is submitted before the Commission has denied the application.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Burden of Proof.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Commission may deny an instant bingo principal employee license to an applicant whose past or present conduct would bring the State into disrepute.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>Administrative Costs of Background Investigations.</text>
      <paragraph num="(1)">
        <text>Promptly upon receipt of an invoice from the Commission, an applicant for a license shall reimburse the Commission for:</text>
        <paragraph num="(a)">
          <text>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</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Any payments made by the Commission to a person approved by the Commission to conduct the background investigations.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Failure to reimburse the Commission shall be grounds for disqualification of the applicant and denial of the license application.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Commission shall refund to an applicant any unused amount of the advance deposit.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>Payment and Collection.  Applicants shall pay the administrative costs and fees required under this regulation by:</text>
      <paragraph num="(1)">
        <text>Wire transfer;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Money order;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Certified check made payable to the “State of Maryland”; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Any other manner designated by the Commission.</text>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>Continuing Obligations.</text>
      <paragraph num="(1)">
        <text>Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Personal and Background Information.">
    <paragraph num="A.">
      <text>Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is:</text>
      <paragraph num="(1)">
        <text>The applicant;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A director, officer, or key management individual employed by the applicant;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A partner of the applicant; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>An owner of an interest of 5 percent or more in the applicant.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>An individual listed under §A of this regulation shall furnish the following:</text>
      <paragraph num="(1)">
        <text>Full name and any previous names or aliases;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Date of birth;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Physical description;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Home and business addresses and telephone numbers;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Driver's license number and state of issuance;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Social Security number; and</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Passport or identification photo.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>If the applicant is a corporation, the application documents shall state the:</text>
      <paragraph num="(1)">
        <text>State in which the applicant is incorporated; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Name and address of the applicant's agent for service of process in Maryland.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>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.</text>
    </paragraph>
    <paragraph num="E.">
      <text>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.</text>
    </paragraph>
    <paragraph num="F.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Information for Background Investigation.">
    <text>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:</text>
    <paragraph num="A.">
      <text>Arrested;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Sanctioned by a government agency related to gaming;</text>
    </paragraph>
    <paragraph num="D.">
      <text>Found liable in connection with a civil action related to gaming;</text>
    </paragraph>
    <paragraph num="E.">
      <text>A debtor in a bankruptcy proceeding; or</text>
    </paragraph>
    <paragraph num="F.">
      <text>Denied a bond.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Consent for Investigation.">
    <paragraph num="A.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Verify all information provided in the application documents; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Conduct a background investigation of the individual.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Organizational Documents.">
    <paragraph num="A.">
      <text>If the applicant is a corporation, the application documents shall include a:</text>
      <paragraph num="(1)">
        <text>Statement of when the corporation was organized;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Copy of the articles of incorporation and bylaws of the corporation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Statement and documentation of whether the corporation has filed restated articles of incorporation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>If the applicant is an unincorporated business association, the application documents shall include a:</text>
      <paragraph num="(1)">
        <text>Copy of each organizational document of the applicant, including any partnership agreement; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Description of any oral agreements involving the organization of the applicant.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Owners.">
    <paragraph num="A.">
      <text>If the applicant is an unincorporated business association, the application documents shall identify:</text>
      <paragraph num="(1)">
        <text>Each person who exercises voting rights in the applicant; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Each person who directly or indirectly owns 5 percent or more of the business association.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the:</text>
      <paragraph num="(1)">
        <text>Total number of shares;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Par value, if any;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Voting rights;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Current rate of dividend; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Number of shares outstanding and the market value of each share.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>If the applicant is a corporation, the application documents shall identify each person who:</text>
      <paragraph num="(1)">
        <text>Exercises voting rights in the corporation; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Directly or indirectly owns 5 percent or more of the corporation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Name and address of each stockholder participating in the trust or agreement;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Class of stock involved; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Total number of shares held by the trust or agreement.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the:</text>
      <paragraph num="(1)">
        <text>Name and address of the person holding the proxy;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Name and address of the stockholder who granted the proxy;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Class of stock for which the proxy may vote; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Total number of shares voted by the proxy.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>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.</text>
    </paragraph>
    <paragraph num="G.">
      <text>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.</text>
    </paragraph>
    <paragraph num="H.">
      <text>The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation.</text>
    </paragraph>
    <paragraph num="I.">
      <text>The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the facility.</text>
    </paragraph>
    <paragraph num="J.">
      <text>The application documents shall provide full disclosure for any stock options that may exist or have been granted.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Directors, Officers, and Partners.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>For each individual listed under §A of this regulation, the applicant shall provide:</text>
      <paragraph num="(1)">
        <text>The individual's name and address;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Each position or office of the applicant held by the individual;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The nature and extent of any ownership interest that the individual has in the applicant.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Controlling Entity.">
    <text>The application documents shall:</text>
    <paragraph num="A.">
      <text>State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Describe the:</text>
      <paragraph num="(1)">
        <text>Nature of the beneficial ownership; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Extent of control exercised by the beneficial owner; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Outside Interests.">
    <paragraph num="A.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Has ever held an ownership interest in a licensee of the Commission; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The applicant shall describe the nature of participation stated under §A of this regulation.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".10" heading="Bonds.">
    <paragraph num="A.">
      <text>The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond.</text>
    </paragraph>
    <paragraph num="D.">
      <text>The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".11" heading="Instant Bingo Facility License.">
    <paragraph num="A.">
      <text>General.</text>
      <paragraph num="(1)">
        <text>Unless a facility operator holds a valid facility license issued by the Commission, the facility operator may not operate an instant bingo machine.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The following persons must meet the Commission's facility license requirements:</text>
        <paragraph num="(a)">
          <text>A facility; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Each person that owns or controls a facility.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Qualification Requirements. The Commission may issue a facility license to a facility that has:</text>
      <paragraph num="(1)">
        <text>Paid the application and license fee under §C of this regulation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If required, obtained a bond required under Regulation .10A of this chapter;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Furnished the Commission with the information and documentation required under this chapter; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Application and License Fees.</text>
      <paragraph num="(1)">
        <text>The application fee for a person is:</text>
        <paragraph num="(a)">
          <text>$5,000 for a facility that will operate more than ten instant bingo machines; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>The license fee for a person is:</text>
        <paragraph num="(a)">
          <text>$2,500 for a facility that will operate more than ten instant bingo machines; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>The annual license fee for each instant bingo machine in operation at a facility is $150.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The facility license authorizes the licensee to operate an instant bingo machine.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The facility license issued by the Commission shall specify the:</text>
      <paragraph num="(1)">
        <text>Date and time at which operations may commence; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Maximum number of instant bingo machines that may be operated by the facility operator under the facility license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>The Commission may issue a facility license subject to conditions.</text>
    </paragraph>
    <paragraph num="G.">
      <text>The Commission may issue a facility license after determining that:</text>
      <paragraph num="(1)">
        <text>The facility complies with the regulations of this chapter;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of the Commission's regulations.</text>
    </paragraph>
    <paragraph num="I.">
      <text>Term; Renewal; License Renewal Fee.</text>
      <paragraph num="(1)">
        <text>The term of a facility license is 15 years.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Commission may renew the license if, before the term of the license expires, the licensee applies for renewal; and</text>
        <paragraph num="(a)">
          <text>Continues to comply with all licensing requirements;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Submits to a background investigation under Regulation .03 of this chapter; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Pays a license renewal fee in the amount of the license fee that is required under §C(2) of this regulation.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".12" heading="Manufacturer Licenses.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The following persons must meet the Commission's manufacturer license requirements:</text>
      <paragraph num="(1)">
        <text>A manufacturer; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Each person that owns, controls, or is a representative of a manufacturer.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Qualification Requirements. Agency staff may issue a manufacturer license to a person that has:</text>
      <paragraph num="(1)">
        <text>Paid the application and license fee under §E of this regulation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If required, obtained a bond required under Regulation .10A of this chapter;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Furnished the Commission with the information and documentation required under this chapter; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Application and License Fees.</text>
      <paragraph num="(1)">
        <text>The application fee for a person is $10,000 for a manufacturer of an instant bingo machine.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The license fee for a person is $5,000 for a manufacturer of an instant bingo machine.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>The manufacturer license authorizes the licensee to manufacture or distribute an instant bingo device to a licensed facility.</text>
    </paragraph>
    <paragraph num="G.">
      <text>Agency staff may issue a manufacturer license subject to conditions.</text>
    </paragraph>
    <paragraph num="H.">
      <text>Term; Renewal; License Renewal Fee.</text>
      <paragraph num="(1)">
        <text>The term of a manufacturer license is 5 years.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Agency staff may renew the license if, before the term of the license expires, the licensee applies for renewal and</text>
        <paragraph num="(a)">
          <text>Continues to comply with all licensing requirements;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Submits to a background investigation under Regulation .03 of this chapter; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Pays a license renewal fee in the amount of the license fee that is required under §E(2) of this regulation.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>A manufacturer shall pay the Commission an annual license fee of $150 for each of its instant bingo machines in operation at a facility.</text>
    </paragraph>
    <paragraph num="J.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".13" heading="Principal Employee Licenses.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Qualification Requirements. The Commission may issue a principal employee license to an individual who is employed by a licensee, and who has:</text>
      <paragraph num="(1)">
        <text>Paid the application and license fee under §C of this regulation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If required, obtained a bond required under Regulation .10 of this chapter;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Furnished the Commission with the personal and background information required under Regulation .02 this chapter; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Provided the Commission with sufficient information to establish that the individual is qualified for a principal employee license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Application and License Fees.</text>
      <paragraph num="(1)">
        <text>The application fee for a principal employee is:</text>
        <paragraph num="(a)">
          <text>$1,250 for a facility that will operate more than ten instant bingo machines; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>The license fee for a principal employee is:</text>
        <paragraph num="(a)">
          <text>$375 for a facility that will operate more than ten instant bingo machines; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The principal employee license authorizes the licensee to function as a principal employee for any licensee in the State.</text>
    </paragraph>
    <paragraph num="E.">
      <text>A principal employee may not play an instant bingo machine or other electronic gaming device at a facility:</text>
      <paragraph num="(1)">
        <text>Where the individual is employed; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>That is operated by the individual’s employer.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation under Maryland Criminal Law Article, §12-301.1, Annotated Code of Maryland or the Commission's regulations.</text>
    </paragraph>
    <paragraph num="G.">
      <text>Term; Renewal; License Renewal Fee.</text>
      <paragraph num="(1)">
        <text>The term of a principal employee license is 5 years.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Commission may renew the license if, before the term of the license expires, the licensee:</text>
        <paragraph num="(a)">
          <text>Applies for renewal;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Continues to comply with all licensing requirements;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Maintains employment as a principal employee;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Submits to a background investigation under Regulation .04 of this chapter; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Pays a license renewal fee of:</text>
          <paragraph num="(i)">
            <text>$375 for a facility that will operate more than ten instant bingo machines; or</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>Sponsored License.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An application for a sponsored license shall be in a format designated by the Commission and shall include:</text>
        <paragraph num="(a)">
          <text>A completed application for a principal employee license;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Payment of the fees required under §C of this regulation; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Documentation to verify that the sponsor has:</text>
          <paragraph num="(i)">
            <text>Offered the individual at least conditional employment;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Obtained bond as required under Regulation .10 of this chapter; and</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and a national database search.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>The Commission may grant a sponsored license after:</text>
        <paragraph num="(a)">
          <text>Receiving all items required under §H(3) of this regulation; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Performing on the individual a:</text>
          <paragraph num="(i)">
            <text>Criminal background investigation under Regulation .04; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Credit check.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>A sponsored license:</text>
        <paragraph num="(a)">
          <text>Is valid for one nonrenewable 1-year term;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Is not transferable to employment with a different facility operator or manufacturer; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>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.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".14" heading="Instant Bingo Manager Licenses.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The Commission may issue an instant bingo manager license to an individual who has:</text>
      <paragraph num="(1)">
        <text>Paid an application fee in the amount of $150;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Paid a license fee of $150;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Unless exempt, obtained a bond required under Regulation .10 of this chapter;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Furnished the personal and background information required under Regulation .02 of this chapter;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Provided the documentation and fees required under Regulation .03 of this chapter;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Executed the consent for investigation required under Regulation .04 of this chapter;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Received at least a conditional offer of employment from a licensed facility operator, manufacturer, or contractor; and</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Provided the Commission with sufficient information to establish that the individual has otherwise qualified for instant bingo manager license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The instant bingo manager license authorizes the licensee to be employed as an instant bingo manager in the State.</text>
    </paragraph>
    <paragraph num="D.">
      <text>A instant bingo manager may not play an instant bingo machine or other electronic gaming device at a facility:</text>
      <paragraph num="(1)">
        <text>Where the individual is employed; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>That is operated by the individual's employer.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of the Commission's regulations.</text>
    </paragraph>
    <paragraph num="F.">
      <text>Term; Renewal.</text>
      <paragraph num="(1)">
        <text>The term of an instant bingo manager license is 5 years.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Commission may renew the license if, before the term of the license expires, the licensee:</text>
        <paragraph num="(a)">
          <text>Applies for renewal;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Continues to comply with all licensing requirements;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Maintains employment as an instant bingo manager;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Submits to a background investigation under Regulation .02 of this chapter; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Pays a nonrefundable application fee of $150.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>Sponsored License.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An application for a sponsored license shall be in a format designated by the Commission and shall include:</text>
        <paragraph num="(a)">
          <text>A completed application for an instant bingo manager license;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Payment of the application fee required under §B(1) of this regulation;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Documentation to verify that the sponsor has:</text>
          <paragraph num="(i)">
            <text>Offered the individual at least conditional employment;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Obtained bond as required under Regulation .10 of this chapter; and</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>The Commission may grant a sponsored license after:</text>
        <paragraph num="(a)">
          <text>Receiving all items required under §G(3) of this regulation; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Performing on the individual a:</text>
          <paragraph num="(i)">
            <text>Criminal background investigation under Regulation .02 of this chapter; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Credit check.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>A sponsored license:</text>
        <paragraph num="(a)">
          <text>Is valid for one nonrenewable 1-year term;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Is not transferable to employment with a different facility operator, manufacturer, or contractor; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>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.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".15" heading="Identification Cards for Licensees.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Identification Card.</text>
      <paragraph num="(1)">
        <text>An identification card shall display a photograph of the licensee, and at a minimum, indicate:</text>
        <paragraph num="(a)">
          <text>The individual's name;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>By color, pattern, or symbol, the licensing category; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The license expiration date.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An identification card is the property of the Commission.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Licensee Obligations.  A licensee:</text>
      <paragraph num="(1)">
        <text>Shall wear or otherwise prominently display his or her identification card at all times while working;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>May not allow another individual to possess the card; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Shall comply with an order of the Commission to surrender the card.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Replacement Identification Card.</text>
      <paragraph num="(1)">
        <text>If the identification card of a licensee who is employed by a licensed facility operator, manufacturer, or contractor is lost or stolen:</text>
        <paragraph num="(a)">
          <text>The licensee shall immediately:</text>
          <paragraph num="(i)">
            <text>Report the loss or theft to his or her employer; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>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</text>
          </paragraph>
        </paragraph>
        <paragraph num="(b)">
          <text>After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>If the identification card of a licensee who is employed by a licensed facility operator or manufacturer is temporarily unavailable to the licensee:</text>
        <paragraph num="(a)">
          <text>The licensee shall immediately:</text>
          <paragraph num="(i)">
            <text>Report the temporary unavailability of the card to his or her employer; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(b)">
          <text>After verifying the licensee’s identity, the Commission may issue a temporary identification card to the licensee that is valid for 30 days; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>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.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission:</text>
        <paragraph num="(a)">
          <text>$40 for the cost of a replacement identification card; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>$20 for the cost of a temporary identification card.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Surrender and Reissuance of Identification Card.</text>
      <paragraph num="(1)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Commission suspends or revokes the license;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>License is not renewed;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Licensee separates from employment with a licensed facility operator or manufacturer; or</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Licensee is otherwise ordered to surrender the identification card.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Licensee obtains employment with a licensed facility operator or manufacturer;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Term of the license has not expired; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Commission verifies:</text>
          <paragraph num="(i)">
            <text>The licensee’s identity;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>That the license was in good standing when the card was surrendered; and</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>That the license has not expired and remains in good standing.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>There is no fee for an identification card issued under §E(3) of this regulation.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".16" heading="Corrective Action.">
    <paragraph num="A.">
      <text>Deficiency.</text>
      <paragraph num="(1)">
        <text>Assess the seriousness of the deficiency;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Require the licensee to develop a corrective action plan;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the license;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Evaluate and, if acceptable to the Agency, approve the corrective action plan;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Determine appropriate timelines for the completion of corrective action;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>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</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Recommend that the Commission impose a sanction under Regulation .17 of this chapter if a deficiency is not remedied through implementation of corrective action.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Deficiency Notice.</text>
      <paragraph num="(1)">
        <text>A description of the violation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A description of the possible sanctions; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The requirement for the licensee to submit a corrective action plan to the Director within a time frame established by the Director.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Corrective Action Plan.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Director shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may:</text>
        <paragraph num="(a)">
          <text>Provide the licensee with additional time within which to submit a revised corrective action plan; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Impose a sanction on the licensee under Regulation .17 of this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Corrective Action Outcomes.</text>
      <paragraph num="(1)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>For good cause, extend the time for completion of a corrective action plan; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Emergently suspend the licensee’s license.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".17" heading="Sanctions.">
    <paragraph num="A.">
      <text>The Director may impose sanctions on a licensee for:</text>
      <paragraph num="(1)">
        <text>Violating or failing to fulfill the licensee’s responsibilities under this subtitle or a condition of a license;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Violating:</text>
        <paragraph num="(a)">
          <text>A provision of the law;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>A regulation adopted under the law; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>An order or directive of the Commission;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Providing the Commission with false or misleading information;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Failing to cooperate with the Commission;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Failing to remit, or failing to make timely remittance of, funds owed to the Commission;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Failing to prepare, submit, or implement an adequate corrective plan under Regulation .16 C of this chapter;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Incurring criminal charges related to the conduct of illegal gaming;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Possessing materials or equipment indicating involvement by the licensee or the licensee’s employees in the conduct of illegal gaming; or</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Other activities or action deemed by Director to require the imposition of a sanction.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Types of Sanctions. Sanctions may include emergency suspension, suspension, revocation, and placement of conditions on the license.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Suspension, Revocation, and Conditions.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Emergency Suspension.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If the Director emergently suspends a license, the Director shall provide the licensee with written notice that includes:</text>
        <paragraph num="(a)">
          <text>A statement of the authority upon which the suspension is based;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The nature of the violation;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The duration of suspension;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Information about the licensee’s obligation to submit to the Agency a corrective plan; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>A statement of the licensee’s right to request a Commission hearing.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".18" heading="Recommended Actions and Hearings.">
    <paragraph num="A.">
      <text>Recommended Sanctions.</text>
      <paragraph num="(1)">
        <text>The Director or the Director’s designee may recommend a sanction concerning a license.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Recommendation;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Basis for the recommendation; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Applicant’s right to request a hearing with the Commission.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>A licensee may submit to the Commission a request for a hearing:</text>
        <paragraph num="(a)">
          <text>Within 15 days of the date of the recommendation of the Director or the Director’s designee; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Identifying the legal and factual bases for disagreeing with the recommendation of the Director or the Director’s designee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Denial of a License.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Recommendation for denial;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Basis for the recommendation; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Applicant's right to request a reconsideration meeting with the Director or the Director's designee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>During a reconsideration meeting, an applicant may:</text>
        <paragraph num="(a)">
          <text>Be represented by counsel; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Present evidence as to why the license should be granted;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(6)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>A request for hearing before the Commission on the recommendation of the Director or the Director's designee; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(7)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(8)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(9)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Determine that the applicant is qualified and grant the license; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Determine that the applicant is not qualified or disqualified; and</text>
          <paragraph num="(i)">
            <text>Deny the license; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Prepare an order denying the license with a statement of the reasons and specific findings of fact.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(10)">
        <text>The Commission's decision is final.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>A Commission hearing shall be conducted in the manner specified in:</text>
      <paragraph num="(1)">
        <text>State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>COMAR 36.01.02.06.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">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)</annotation>
    <annotation type="History" subtype="Administrative History">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)</annotation>
    <annotation type="History" subtype="Administrative History">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)</annotation>
  </annotations>
</chapter>