ARTICLE 11. LICENSES

Transcription

1 ARTICLE 11. LICENSES Title 1. DEFINITIONS; GENERAL PROVISIONS 2. AMUSEMENTS 3. AUCTIONEERS 4. CONSTRUCTION TRADE LICENSES 5. FIRES 6. FOOD SERVICE FACILITIES 6A. HOTELS 7. HUCKSTERS 8. LIQUID WASTE HAULERS 9. MANUFACTURED MOBILE HOMES 10. MULTIPLE DWELLINGS AND ROOMING HOUSES 11. PARADES 12. PAWNBROKERS 12A. SECOND-HAND DEALER LICENSE 13. ROADSIDE VENDORS 14. SWIMMING POOLS 15. TAXICABS 16. TOWING COMPANIES TITLE 1. DEFINITIONS; GENERAL PROVISIONS Section Definitions Administration General requirements Right of entry Civil enforcement Stop-work orders Definitions. In this article, "Department" means the Department of Inspections and Permits and "Director" means the Director of Inspections and Permits or the Director's designee. (1985 Code, Art. 16, 1-101) Administration. The Director and the Department shall administer and enforce the provisions of this article, except that provisions relating to multiple dwellings and rooming houses shall be administered and enforced as provided in Title 10, provisions relating to nonconsensual towing ANNE ARUNDEL COUNTY, MARYLAND 1

2 companies and parking lot owners shall be administered and enforced as provided in Title 16, and the Health Officer and the Health Department shall administer and enforce the provisions relating to fires, food service facilities, and swimming pools. (1985 Code, Art. 16, 1-102) (Bill. No ) General requirements. (a) Applications. To apply for a license required under this article, an applicant shall file an application on the form required by the Department or the Health Department, as applicable. (b) Fees. No license may be issued or renewed until the applicant pays the required fee. Fees may not be refunded or prorated. (c) Falsification of information. Any person who falsifies information required or provided under this article shall be disqualified from becoming or continuing as a licensee. (d) Insurance. A licensee shall maintain workers compensation insurance in the amount and manner required by the Maryland Workers Compensation Law. A licensee required to maintain other insurance by this article shall provide insurance with a carrier licensed to offer insurance in this State or, for qualified Maryland taxicab companies, a valid certificate of self-insurance issued by the State of Maryland Motor Vehicle Administration pursuant to the Transportation Article of the State Code and COMAR , et seq. and as a Class B self-insurer, provide the Director with a copy of a certificate of the required insurance or self-insurance, and, except for a State-certified self-insured Maryland taxicab company, make the policy available for inspection upon request. The policy shall require 30 days written notice of cancellation to the licensee and the County, except that construction trade licensees, liquid waste haulers, and pawnbrokers shall provide notice of cancellation to the Department within 10 days of the cancellation date. A license shall be suspended on a provisional basis without a hearing if the licensee fails to maintain all insurance required by this article. (e) Compliance with other law. In addition to compliance with this article, a licensee shall comply with all applicable federal, State, and County law and regulations. (1985 Code, Art. 16, 1-103, 2-311, 2-320, 2-629) (Bill No ; Bill No ) Right of entry. The County may enter on property or into a structure without advance notice during reasonable hours to make inspections to ensure compliance with this article Civil enforcement. (a) Generally. The County may enforce the provisions of this article through injunctive proceedings, an action for specific performance, or any other appropriate proceedings. (b) Civil fines. It is a Class D civil offense for a person to violate any provision of this article. (c) Remedies are cumulative. The remedies available under this section are cumulative and not exclusive. Initiation of criminal proceedings under of this Code or civil proceedings under this section does not preclude administrative action to suspend or revoke a license based on the same violation. ANNE ARUNDEL COUNTY, MARYLAND 2

3 State Code reference Local Government Article, Stop-work orders. (a) Issuance. The County may issue a stop-work order to a licensee who is engaging in any activity in violation of this article or who is doing work on a structure in violation of this Code or otherwise in an unsafe and dangerous manner. The stop-work order shall state the conditions under which the work or activity may be resumed. It shall be served by posting on the site and by delivery to the owner of the property, the owner's agent, or the person doing the work. Upon service of the order, the work or activity shall be stopped immediately, except for work or activity directed to be performed to remove a violation or unsafe condition. (b) Civil fine. It is a Class D civil offense for a person to continue any activity or work in violation of a stop-work order. (1985 Code, Art. 16, , ) (Bill No ; Bill No ) TITLE 2. AMUSEMENTS Section Subtitle 1. General Provisions Inspections by Police Department Denial; refusal to renew; revocation Payment of taxes Amusement License Commission. Subtitle 2. Bingo Games Definitions Regulatory authority Rules and regulations Hearing by Office of Administrative Hearings Findings and recommendations of the Amusement License Commission General prohibitions Commercial bingo Commercial bingo licenses Location of commercial bingo games; notices and signs Instant bingo and progressive bingo by commercial bingo licensees Insurance to be maintained by commercial bingo licensees Ownership and control by commercial bingo licensees Standards to be met by commercial bingo owners and managerial employees Disclosure of stock ownership by corporate commercial bingo licensees Internal management controls required for commercial bingo licensees Annual report by commercial bingo licensee Transfer of ownership or control by commercial bingo licensee Manufacturer's and distributor's licenses Linked bingo game provider license Prizes and awards Commercial bingo and linked bingo. ANNE ARUNDEL COUNTY, MARYLAND 3

4 Audits Commercial bingo and linked bingo Financial reports and audits All license holders Service of notices and orders All license holders Renewal of licenses All license holders Suspension or revocation of licenses All license holders Confidentiality of information Retention of records Reportable events Arbitration. Subtitle 3. Carnivals (Class D) License required Fee Insurance Investigation Contents of license Operation under license Display of license License. Subtitle 4. Circuses (Class A) Subtitle 5. Coin-Operated Amusement Devices (Classes E, I, and FA) "Coin-operated amusement device" defined Licenses classified General prohibitions Class E license Class I license Class FA license. Subtitle 6. Drag Races (Class X) Class X license. Subtitle 7. Fund-Raising Events (Classes S and T) Definitions Licenses classified Display Limitations on issuance Term; renewal Class S license Class T license Prizes for Class S and T licenses Fees Reporting. Subtitle 8. Wheels of Fortune (Class U) ANNE ARUNDEL COUNTY, MARYLAND 4

5 Class U license. SUBTITLE 1. GENERAL PROVISIONS Inspections by Police Department. The Police Department shall make frequent inspections of premises for which licenses are issued under this title to ascertain that the premises and the devices in the premises are licensed. (1985 Code, Art. 16, 2-103) Denial; refusal to renew; revocation. The Department is not required to make an investigation before the issuance of a license and may refuse to issue or renew a license on the basis of the facts disclosed on the application. The Department may deny, refuse to renew, or revoke a license if it finds that the activity authorized by the license at the proposed premises will create a nuisance or be detrimental to the peace and welfare of the community. (1985 Code, Art. 16, 2-104, 2-628, 2-629, 2-705, 2-708) Payment of taxes. A person may not become or continue as a licensee under this article unless the person is current on the payment of all taxes owing to the County and the State Amusement License Commission. (a) Establishment. There is an Amusement License Commission consisting of seven members. Six members, who shall be residents of the County, are appointed by the County Executive. The seventh member shall be a police officer appointed by the Chief of Police. (b) Term. The term of a member runs concurrently with the term of the County Executive. At the end of a term, a member shall continue to serve until a successor is appointed. The County Executive may remove a member for cause prior to the expiration of the term of the member. If a vacancy occurs during the term of a member appointed by the County Executive, the County Executive shall appoint a qualified successor to complete the term. The member appointed by the Chief of Police shall serve at the pleasure of the Chief of Police. (c) Chair and Vice Chair. The Commission shall elect a Chair and Vice Chair from its membership. (d) Meetings; quorum. The Commission shall meet at the request of the Director, and the Chair shall schedule the meetings and preside over them. The Commission shall advise the Director on proposed ordinances and the adoption of regulations to implement the provisions of this title and shall perform other duties as assigned by the Director. The Commission shall issue findings and recommendations in the regulation of commercial bingo games under and A quorum of four members is required to make a recommendation under that subsection. The vote of each member on a recommendation shall be a matter of public record. ANNE ARUNDEL COUNTY, MARYLAND 5

6 (e) Rules of procedure. The Commission shall adopt rules of procedure for the orderly conduct of its business and for the issuance of findings and recommendations under this title. (f) Reimbursement for expenses. Members of the Commission are not entitled to compensation for their services, but are entitled to reimbursement for reasonable and necessary expenses as provided in the budget of the Department. (g) Conflicts of interest. Members of the Commission are subject to the same conflict-of-interest provisions applicable to County officials or employees under of this Code, and a member shall be disqualified from considering or advising the Director on any matter in which the member has a personal or financial interest, but this provision does not prevent a member engaged in an activity regulated by this title from participating in general regulatory matters or from participating in recommendations affecting a license other than that in which the member has a personal or financial interest. The Director may adopt regulations to implement the conflict-of-interest provisions, including requirements for disclosure by members of interests in activities regulated by this title. (h) Staff. The Director shall furnish clerical and other staff support to the Commission. (1985 Code, Art. 16, 2-111, 2-112) (Bill No ; Bill No ) Definitions. SUBTITLE 2. BINGO GAMES In this subtitle, the following words have the meanings indicated. (1) "Beneficial ownership" means record ownership and: (i) stock or other ownership in one or more entities in a chain of parent and subsidiary or affiliated entities, any one of which participates in the capital or profits of a licensee, regardless of the percentage of ownership involved; (ii) any interest that entitles a person to benefits substantially equivalent to ownership by reason of any contract, lease, understanding, relationship, agreement, or other arrangement, even though the person is not the record owner; and (iii) unless there are special circumstances, securities held by an individual's spouse or relatives, including children, living in the home. (2) "Bingo" means that specific game of chance played with cards having randomly-numbered squares ranging from 1 to 75 in which prizes are awarded on the basis of designated numbers on the cards conforming to a predetermined pattern of numbers. The cards shall have five vertical rows headed respectively by the letters B.I.N.G.O., with each row having five randomly numbered squares, except that one or more squares may be labeled "free". The term "bingo" includes instant bingo. (3) "Bingo equipment and supplies" means all equipment and devices commonly used in the direct operation of bingo or instant bingo, including the receptacle, object, rack, verification board, and cards. (4) "Commercial bingo" means bingo for which any type of consideration is paid or collected in order to play the game, but the term does not include bingo conducted by charitable and nonprofit organizations permitted to conduct bingo under State or County law. ANNE ARUNDEL COUNTY, MARYLAND 6

7 (5) "Commission" means the Amusement License Commission established by (6) "Gross receipts" means the total revenue received from bingo games and admission charges, excluding the cost of prizes or winnings distributed, but without regard to other expenses. (7) "Instant bingo" means a specific game of chance played by the random selection of one or more individually prepackaged cards, with winners determined by preprinted letters, numbers, or symbols. (8) "Licensee" means the holder of a commercial bingo license, but the term does not include the holder of a manufacturer's or distributor's license or a linked bingo game provider. (9) "License holder" means a licensee, a holder of a manufacturer's and distributor's license, or a linked bingo game provider. (10) "Linked bingo game" means a bingo game simultaneously played at two or more locations at which licensees are authorized to conduct commercial bingo games. (11) "Linked bingo game provider" means a person who provides equipment or management services to be used in the conduct of a linked bingo game. (12) "Managerial employee" means a director, officer, and any other employee having managerial control over a licensee's commercial bingo business, the general manager, the chief financial officer, the chief bookkeeper, and any individual placed in direct control of commercial bingo games during a session. (13) "Manufacturer and distributor" means any person who manufactures, sells, leases, or otherwise provides or distributes bingo equipment or supplies to licensees. (14) "Objects" means a set of 75 balls or other precision shapes identical in size and shape on which are printed numbers and letters, with numbers 1 through 15 marked with the letter "B", numbers 16 through 30 marked with the letter "I", numbers 31 through 45 marked with the letter "N", numbers 46 through 60 marked with the letter "G", and numbers 61 through 75 marked with the letter "O". (15) "Owner" means an individual proprietor or a general or limited partner, and the term includes a person with a beneficial ownership interest in a licensee and a shareholder of a corporate licensee having 10% or more interest, including beneficial ownership, in the licensee. (16) "Progressive game" means a bingo game in which a prize amount is carried over to a subsequent game if no winner is declared after a specified number of draws or calls are completed. (17) "Proposed transferee" means a proposed purchaser, lessee, assignee, or person acquiring ownership or control of a license or of a licensee. (18) "Rack" means the container in which the objects are placed after being drawn and announced. (19) "Receptacle" means the container from which the objects are drawn or ejected. (20) "Session" means a series of bingo games conducted by a licensee during a single 24-hour period. (1985 Code, Art. 16, 2-301, 2-307, 2-310) (Bill No ; Bill No. 4-00; Bill No. 9-05) Regulatory authority. ANNE ARUNDEL COUNTY, MARYLAND 7

8 In addition to the other powers specified by this subtitle, the Director shall have the power to conduct investigations and monitor the conduct of commercial bingo games and the manufacture and distribution of bingo equipment and supplies. The Director also may permit variations of the game configuration, after referral to and recommendation from the Amusement License Commission. (1985 Code, Art. 16, 2-302) (Bill No ; Bill No. 4-00; Bill No ; Bill No. 9-05) Rules and regulations. After public notice and an opportunity for comment from the public, license holders, and the Commission, the Director shall adopt rules and regulations to implement this subtitle. The scope of the rules and regulations may include all subjects necessary to implement the intent of this subtitle and to ensure the integrity of bingo games and the proper disposition of all funds derived from the commercial bingo games. The scope of the rules and regulations may include: (1) the issuance, denial, revocation, or suspension of licenses and the manufacturing and distribution of bingo equipment and supplies; (2) uniform procedures for requiring and reviewing personal and financial background information of owners and managerial employees, including requirements for an appropriate amount of time for completion of required background checks, a review by a certified public accountant of certified financial statements, a review of any contingent or pledged liabilities, an income statement for the most recent fiscal year, a statement of financial and related records of any business entity in which the owner or managerial employee has a majority interest, a submission of copies of federal and state income tax returns, a disclosure of all financial interests in commercial or nonprofit gaming, a criminal background review, and a character review; (3) the use of computer and electronic devices for conducting bingo; (4) the conduct of bingo games and activities involved in manufacturing and distributing bingo equipment and supplies; (5) recordkeeping, reporting requirements, and acceptable admission and sales receipting systems; (6) requirements that commercial bingo licensees maintain adequate records documenting the purchase of bingo equipment and supplies from licensed manufacturers and distributors and that manufacturer's and distributor's licensees maintain adequate records documenting the sale of bingo equipment and supplies to commercial bingo licensees; and (7) standards for the manufacture, distribution, and control of bingo equipment and supplies that may include the uniform standards promulgated by the North American Gaming Regulators Association or its successor organization. (1985 Code, Art. 16, 2-311) (Bill No ; Bill No. 9-05) Hearing by Office of Administrative Hearings. A hearing that this subtitle specifies to be held by the Director may be held by the Office of Administrative Hearings at the request of the Director and with the approval of the Chief Administrative Officer Findings and recommendations of the Amusement License Commission. ANNE ARUNDEL COUNTY, MARYLAND 8

9 The Director shall obtain the findings and recommendations of the Amusement License Commission before approval of a change in ownership or control of a license, approval of an owner or managerial employee of a licensee, approval of a license renewal, and, with the exception of an emergency suspension, suspension or revocation of a license General prohibitions Commercial bingo. (a) Loans. A commercial bingo licensee or its owners or managerial employees may not lend any person money for the purpose of allowing that person to play commercial bingo. (b) Competition. A commercial bingo licensee shall not act in concert with another licensee to limit or restrict competition. (c) Persons under 18. Except for an employee of the licensee, a person under 18 years old may not enter a commercial bingo establishment. (d) Alcoholic beverages. During a session, alcoholic beverages may not be served on the premises where the commercial bingo games are conducted. (e) Computer and electronic devices. A computer or electronic device may not be used for determining or generating the numbers and letters to be announced for the game in lieu of randomly selecting objects from the receptacle. A computer or electronic device may not be used in the direct operation of the bingo games without the prior approval of the Director. (1985 Code, Art. 16, 2-321) (Bill No ) Commercial bingo licenses. (a) Classes of licenses required. A Class NA license is required to operate a bingo game for up to 750 persons. A Class NB license is required to operate a bingo game for up to 1,000 persons. A Class NC license is required to operate a bingo game for up to 2,000 persons. (b) Number of licenses. The maximum number of commercial bingo licenses that may be issued each year is three. Licenses renewed under shall be counted against the total number of licenses that may be issued. If any of the three commercial bingo licenses are abandoned, surrendered, revoked, or not renewed, no new licenses may be issued to replace those licenses and the total number of licenses that thereafter may be issued shall be reduced to the number of the remaining licenses. Nothing in this subsection shall be construed to prohibit the transfer of ownership or control of a commercial bingo license under (c) Term. Commercial bingo licenses shall be issued for a calendar year. (d) Fees. The annual license fees are $3,000 for a Class NA license to operate a bingo game for up to 300 persons; $7,500 for a Class NA license to operate a bingo game for up to 750 persons; $10,000 for a Class NB license; and $12,500 for a Class NC license. (1985 Code, Art. 16, 2-303, 2-304, 2-305) (Bill No ; Bill No. 4-00) Location of commercial bingo games; notices and signs. (a) Location. Each license authorizes the operation of commercial bingo games in a structure at the single, specific location described on the license. The location of commercial bingo games may not be moved without the written approval of the Director. (b) Notice. A commercial bingo licensee shall post conspicuously on the premises where the commercial bingo games are conducted a notice that contains a copy of the bingo ANNE ARUNDEL COUNTY, MARYLAND 9

10 license, a description of all prizes to be awarded and how the prizes may be won, the rules under which bingo is to be played, and all costs to play. (c) Sign for reporting complaints. The names, titles, and business telephone numbers of the following individuals shall be displayed prominently on a sign at the premises where the commercial bingo games are conducted, with an accompanying explanation that the following individuals may be contacted in the event of a complaint: the employee of the licensee with general managerial control over the commercial bingo games; the managerial employee designated under ; and the Chief of Licensing of the Department or other individual designated by the Director. (d) Sign regarding compulsive gambling. There shall be a sign at the premises where the commercial bingo games are conducted stating that compulsive gambling is a treatable disorder, with the toll-free telephone number of the compulsive gambling hotline or other telephone number designated by the Director. The licensee shall pay to the nonprofit organization operating the hotline an annual charge, not to exceed $500, requested by the organization to defray the costs of maintaining the service. (1985 Code, Art. 16, 2-306, 2-318) (Bill No ) Instant bingo and progressive bingo by commercial bingo licensees. (a) Instant bingo. A commercial bingo licensee may offer instant bingo as part of its commercial bingo games, but only during a session at which regular games are offered. (b) Progressive bingo. A commercial bingo licensee may offer a progressive bingo game. A progressive bingo game shall be played to a conclusion and a consolation prize shall be awarded if the advertised prize is not awarded. (1985 Code, Art. 16, 2-316) (Bill No ; Bill No. 9-05) Insurance to be maintained by commercial bingo licensees. Throughout the term of a license, a commercial bingo licensee shall maintain commercial general liability insurance, including coverage for bodily injury and property damage, with a minimum coverage for any one occurrence of $500,000. (1985 Code, Art. 16, 2-320) (Bill No ) Ownership and control by commercial bingo licensees. (a) Generally. A commercial bingo licensee shall be the actual owner and operator of the business conducting the commercial bingo games. This provision does not preclude a licensee from renting the premises where the bingo games are located. (b) Individual proprietorship. A commercial bingo license for an individual proprietorship shall be issued to the individual proprietor, who shall be at least 18 years old and a resident and taxpayer of the State for at least two years before issuance of the license. The individual proprietor shall reside in and be a taxpayer of the State during the term of the license. (c) Partnership. A commercial bingo license for a partnership shall be issued in the name of the partnership, and each of the general partners shall be at least 18 years old and a resident and taxpayer of the State for at least two years before issuance of the license. Each general partner shall reside in and be a taxpayer of the State during the term of the license. ANNE ARUNDEL COUNTY, MARYLAND 10

11 (d) Corporation or other business entity. A commercial bingo license for a corporation or other business entity shall be issued in the name of the business entity. The entity shall remain in good standing during the term of the license. (1985 Code, Art. 16, 2-308) (Bill No ; Bill No ) Standards to be met by commercial bingo owners and managerial employees. (a) Requirements. A person may not become or continue as an owner or managerial employee of a commercial bingo licensee without the approval of the Director under the standards set forth in this section. At all times there shall be at least one owner or managerial employee on the premises and supervising the commercial bingo games being conducted. (b) Standards. No owner or managerial employee of a commercial bingo licensee may have: (1) ever been convicted, held liable, or found to have committed acts involving moral turpitude, including any violation of federal, state, or local law or regulation; (2) ever had a judgment entered in an action for fraud, deceit, or misrepresentation by any court of competent jurisdiction; (3) associations with individuals known to have engaged in organized crime or racketeering; (4) a financial relationship with any person known to have engaged in organized crime or racketeering; (5) had direct managerial or supervisory control over a gaming enterprise in which there was a pattern of cheating, fraud, or employee dishonesty; (6) violated the provisions of this article; or (7) engaged in any other conduct that the Director determines to be a threat to the integrity of commercial bingo or public confidence in the integrity of commercial bingo. (c) Access to records; fingerprinting and photographs. The Director and the Commission shall have access to both conviction and non-conviction criminal history record information in performing duties under this section. Each owner and managerial employee shall be fingerprinted and photographed at a facility of the Police Department, but the Director may make exceptions to the location of the fingerprinting and photographing if there are adequate safeguards for reliability of the information. Fingerprints and photographs may be submitted to the Maryland State Police and to the Federal Bureau of Investigation for further processing and identification. Any costs of processing charged by County, state, or federal agencies shall be borne by the licensee. (d) List maintained by licensee. The licensee shall maintain a current list of its employees who are involved in the commercial bingo operation, including cashiers and bookkeepers, but excluding employees whose duties include only custodial, maintenance, parking, or food service functions. The licensee shall indicate which of these employees the licensee considers to be managerial employees. On request by the Director, the licensee shall furnish this list, together with a description of each employee's duties, to the Director so that the Director may determine if the employee is a managerial employee as provided by this section. (1985 Code, Art. 16, 2-311) (Bill No ; Bill No. 9-05) Disclosure of stock ownership by corporate commercial bingo licensees. ANNE ARUNDEL COUNTY, MARYLAND 11

12 (a) Definitions. In this section, "owner of stock" means anyone who participates or has a vested right to participate in the capital payments, profits, or percentage of income from stock, or has a right under any set of circumstances to convert debt into an ownership interest in stock. (b) Stock ownership. A commercial bingo licensee shall maintain records of owners of stock of the licensee so that the names of all persons, including corporations, trusts, estates, and partnerships that are the beneficial owners of the stock, are disclosed regardless of the manner in which, or whether or not, the ownership interest is stated or registered on the stock of the licensee. A licensee shall include in its charter a prohibition against any person owning stock in the licensee unless the name of that person is listed as an owner in the corporate stock book and the person provides the affidavits required by this section. (c) Affidavits. A commercial bingo licensee shall obtain, at least once every calendar year, pursuant to written notice to the record owners of all stock of the licensee, an affidavit from each record owner of the stock of the licensee sworn to under the penalty of perjury, stating to the best of the affiant's knowledge, information, and belief: (1) if any person other than the affiant has any right of beneficial ownership of any kind in the stock held in the name of the affiant, or if the stock held in the name of the affiant is pledged, promised, or guaranteed as security to another person; (2) the name and address of the other person; and (3) the amount and nature of the ownership. The Director may limit the ownership that must be reported in an affidavit to 10% or more of the beneficial ownership of the licensee. The Director shall consider the number of stockholders and the burden to the licensee and if the licensee is a public corporation whose annual reports are publicly available. (d) Beneficial ownership in stock. If the commercial bingo licensee receives information indicating that a person other than the record owner has a beneficial ownership interest in stock of the licensee, the licensee shall request promptly by written notice to the other person that this person submit to the licensee within 60 days from the date of the notice an affidavit stating, to the best of the affiant's knowledge, information, and belief: (1) if the affiant has any right of ownership in stock of the licensee attributed to the affiant in the notice and the amount and nature of the ownership; (2) if any person other than the affiant and the record owner has any right of ownership of any kind in stock of the licensee attributed to the affiant by the notice of the affiant; and (3) the amount and nature of the ownership of any other person. (e) Change in stock ownership. Any change in the record ownership or beneficial ownership of stock of any commercial bingo licensee shall be reported promptly to the Director. On a failure of a licensee to maintain and report records of ownership of stock as required by this section or the failure of a licensee to make a reasonable effort to obtain the affidavits required by this section, the Director may suspend or revoke the license. (1985 Code, Art. 16, 2-310) (Bill No ) Internal management controls required for commercial bingo licensees. (a) Inspection and review. The Director, on reasonable notice to a commercial bingo licensee, may inspect and review the internal management controls employed by the licensee to ANNE ARUNDEL COUNTY, MARYLAND 12

13 ensure that all gross receipts are properly documented, and the licensee shall provide to the Director all information necessary for this inspection and review. (b) Admission and sales receipting systems. A commercial bingo licensee shall employ a progressively numbered admission and sales receipting system that has been approved by the Director. (c) Requirement to employ additional or alternative internal management controls; sanction for failure to do so. If the Director determines that the internal management controls employed by a commercial bingo licensee are insufficient to ensure that all gross receipts are properly documented, the Director shall have the authority to require the licensee to employ additional or alternative internal management controls. If the licensee fails to adopt the additional or alternative internal management controls, the Director may suspend the license until the additional or alternative internal management controls are adopted. (1985 Code, Art. 16, 2-317) (Bill No ) Annual report by commercial bingo licensee. (a) Designation of fiscal year. A commercial bingo licensee shall specify its fiscal year in its initial license application and thereafter may change its fiscal year only with the approval of the Director, which shall not be withheld unreasonably. (b) Annual report. Within the time established by the Director through regulation, each commercial bingo licensee shall submit an annual report under oath in the format required by the Director, including: (1) a list of its officers, members of its board of directors, and other principals of the licensee, including the managerial employees; (2) the ownership records and affidavits required by ; (3) an annual financial statement prepared in accordance with generally accepted accounting principles reflecting the total amount of gross receipts and all payments, deductions, and computations for the period covered by the statement. The annual financial statement shall: (i) be audited and certified by an independent certified public accountant; (ii) include the method of calculation and a statement of the gross receipts subject to the admissions and amusement tax; (iii) give the identity of the lender or borrower and loan amount or amounts where the amount of any single loan to or from the licensee exceeded $10,000 or where the aggregate amount of loans from a single lender or to a single borrower exceeded $10,000 for the year; and (iv) include a certification by the independent certified public accountant that the internal controls employed by the licensee are adequate to ensure the accuracy of the licensee's tax returns, including the returns for the admissions and amusement tax. (1985 Code, Art. 16, 2-319) (Bill No ) Transfer of ownership or control by commercial bingo licensee. ANNE ARUNDEL COUNTY, MARYLAND 13

14 (a) Definition. In this section, "control" means actual working control in whatever manner exercised, including majority stock ownership. (b) Consent of Director required. A license may not be sold, transferred, leased, assigned, or disposed of by forced or voluntary sale, merger, consolidation, receivership, or any other means without the prior written consent of the Director, and then only under such conditions as the Director may establish. Every transfer of control by the licensee shall subject the license to revocation unless the Director consents in writing. (c) Notification; presumptions. A licensee shall promptly notify the Director in writing of any proposed transfer of control of the licensee. A presumption that a transfer of control has occurred arises on the transfer by any person of 10% or more of the beneficial interest of the licensee, whether the transfer takes place through single or multiple transactions. A presumption that a transfer of control has occurred also arises on the acquisition by any person of 10% or more of the beneficial ownership interest of the licensee, whether through single or multiple transactions. (d) Qualifications of proposed transferee. For the purpose of determining whether the Director should consent to transfer of control, the Director may inquire into the qualifications of the proposed transferee, and the licensee shall assist the Director in the inquiry. In seeking the Director's consent to any change in ownership or control, the proposed transferee shall demonstrate to the Director that the proposed transferee has the financial and technical capability to enable it to operate the commercial bingo games and will employ internal management and financial controls sufficient to discourage employee dishonesty and maintain the integrity of the bingo games. The proposed transferee shall provide to the Director the personal and financial information for owners and managerial employees of the proposed transferee required under ; disclosure of stock ownership by a corporate proposed transferee as required under ; a financial statement for the proposed transferee audited by an independent certified public accountant; a detailed description of the proposed sources and methods of financing the commercial bingo operation; the organizational structure of the proposed transferee and the internal management and financial controls proposed by the proposed transferee to discourage employee dishonesty and to maintain the integrity of the bingo games; and the information required by subsection (e).the Director may not consent to a change in ownership or control unless the owners and managerial employees of the proposed transferee meet the standards set forth in and have paid all taxes as required by (e) Information. In addition to other information required by this section, a proposed transferee shall disclose whether the proposed transferee, any owner, director, or officer of the proposed transferee, any employee or agent of the proposed transferee, or any person controlling the proposed transferee, any owner, director, or officer of the proposed transferee, or any employee or agent of the proposed transferee has: (1) ever been convicted or held liable for acts involving moral turpitude including any violation of federal, state, or local law or regulation, or is currently under an indictment, investigation, or complaint charging such acts; (2) ever had a judgment in an action for fraud, deceit, or misrepresentation entered against the proposed transferee by any court of competent jurisdiction; (3) any pending legal claim, lawsuit, or administrative proceeding arising out of or involving the operation of a gaming enterprise; or (4) ever had a license or permit to operate a gaming enterprise denied, suspended, or revoked. ANNE ARUNDEL COUNTY, MARYLAND 14

15 (f) Costs and appeal to arbitration. On approval or disapproval of a change in ownership or control, the new licensee and any successor licensee shall be jointly and severally liable for the costs reasonably incurred by the County in reviewing the proposed change in ownership or control, including County personnel costs calculated in accordance with rates established by the County Controller. The licensee may appeal the calculation of these costs to arbitration under (1985 Code, Art. 16, 2-307, 2-309) (Bill No ; Bill No. 4-00; Bill No. 9-05) Manufacturer's and distributor's licenses. (a) Requirement. A commercial bingo licensee may not purchase or obtain bingo equipment or supplies except from a manufacturer or distributor licensed under this section. (b) Personal and financial background check. The Director shall conduct a personal and financial background check of the owners, officers, and directors of an applicant for a manufacturer's and distributor's license or renewal of a manufacturer's and distributor's license in the same manner as performed for the owners and managerial employees of a commercial bingo licensee under , except that the financial and stock ownership information shall be required only if determined necessary by the Director. In lieu of the personal and financial background check, the Director may extend reciprocity to a similar license issued to an applicant by another state or political subdivision if the Director is satisfied that the licensing criteria of that state or political subdivision are comparable to those contained in this subtitle. (c) Term. The term of a manufacturer's and distributor's license is a calendar year. (d) Fee. The annual fee for a manufacturer's and distributor's license is $2,000. (1985 Code, Art. 16, 2-314) (Bill No ) Linked bingo game provider license. (a) Requirements. A linked bingo game may be conducted only by a licensed linked bingo game provider, and the provider may conduct linked bingo games only at locations in the County at which commercial bingo is authorized. A linked bingo game provider may offer not more than one linked bingo game per session and shall provide documentary evidence to ensure that each prize winner is paid within 48 hours. (b) Standards. No linked bingo game provider may have: (1) ever been convicted, held liable, or found to have committed acts involving moral turpitude, including any violation of federal, state, or local law or regulation; (2) ever had a judgment entered in an action for fraud, deceit, or misrepresentation by any court of competent jurisdiction; (3) associations with individuals known to have engaged in organized crime or racketeering; (4) a financial relationship with any person known to have engaged in organized crime or racketeering; (5) had direct managerial or supervisory control over a gaming enterprise in which there was a pattern of cheating, fraud, or employee dishonesty; (6) violated the provisions of this article; or (7) engaged in any other conduct that the Director determines to have threatened the integrity of bingo or public confidence in the integrity of bingo. ANNE ARUNDEL COUNTY, MARYLAND 15

16 (c) Term. The term of a provider's license is a calendar year. (d) Fee. The annual fee is for the license is $3,000. (e) Bond or other security. A linked bingo game provider shall provide a bond or other security acceptable to the Director in the amount of $250,000 to guarantee prize payment. (Bill No. 9-05) Prizes and awards Commercial bingo and linked bingo. (a) Generally. A commercial bingo licensee may issue merchandise, coins, currency, tokens, or tickets redeemable in cash or merchandise, or other things of value as a prize or award to the players. The value of a prize or award other than cash shall be determined by its fair market value. (b) Value. A prize or award having an aggregate value in excess of $1,200 may not be awarded to the winner or winners of a single game, except that: (1) each session a licensee may offer one or more games with an aggregate prize limit of $300,000; (2) a licensee may offer a progressive game or games with an aggregate prize limit of $100,000 and may exceed that limit only with prior written approval by the Director; and (3) a linked bingo game provider may offer a linked bingo game with a prize equal to the sum of the maximum aggregate prize permitted for each participating licensee. (1985 Code, Art. 16, 2-315) (Bill No ; Bill No ; Bill No. 9-05; Bill No ) Audits Commercial bingo and linked bingo. (a) Generally. On 10 days' written notice, the Director may conduct an audit of the licensee's records for the year for which the annual financial statement has been provided. The audit shall be performed in accordance with generally accepted auditing standards. If the audit discloses that the licensee underpaid the admissions and amusement tax by 5% or more, the licensee shall assume all reasonable costs of the audit. The Director may perform no more than one audit on each licensee during a fiscal year, unless the most recent audit disclosed that the licensee underpaid the admissions and amusement tax by 5% or more. The records subject to audit shall include the returns and records filed and maintained by the licensee under the Tax-General Article, Title 4, Subtitle 2, of the State Code. (b) Appeal to arbitration. A licensee has the right to appeal the results of an audit performed by the Director to arbitration under (1985 Code, Art. 16, 2-319) (Bill No ) Financial reports and audits All license holders. (a) Quarterly financial statements. Each license holder shall file with the Director quarterly financial statements in the same form and including the same information as the annual financial statement, except that the quarterly financial statements need not be audited and certified by an independent certified public accountant. (b) Records. A license holder shall keep complete and accurate financial records in the form and with the information that the Director and the Comptroller of the State require. These records shall be made available for inspection and examination by the Director at any time ANNE ARUNDEL COUNTY, MARYLAND 16

17 during normal County business hours. The records available for examination and inspection by the Director shall include copies of the admissions and amusement tax returns filed by the licensee. (1985 Code, Art. 16, 2-319) (Bill No ; Bill No. 9-05) Service of notices and orders All license holders. (a) To Director or designee. All reports, notices, correspondence, and other documents to be filed with the County or the Director under this subtitle shall be sent to the Director. On written notice by the Director to each license holder, these reports, notices, correspondence, and other documents shall be sent to the Chief of Licensing or other designee of the Director. (b) Duty of license holder to keep name and address of person to receive notices current. Each license holder shall specify in its application for the issuance or renewal of a license the name and mailing address of an individual residing in the County who shall receive all formal notices and correspondence from the County or the Director under this subtitle. Before any change in the name or address of this individual becomes effective, the license holder shall notify the Director in writing of the change. (c) Service of suspension or revocation. A written order suspending or revoking a license shall be sent by certified mail to the individual designated in subsection (b) and shall be considered served as of the date of delivery to the address given. (1985 Code, Art. 16, 2-324) (Bill No ; Bill No ; Bill No. 9-05) Renewal of licenses All license holders. (a) Generally. A license holder may apply for a license renewal within the time period and under the regulations adopted by the Director. A change requested by a commercial bingo licensee in the classification of the license does not affect the right to apply for a license renewal. (b) Denial. The Director may deny an application for a license renewal on the grounds set forth in this subtitle for the approval of a change in ownership or working control of a license or licensee, or on any of the following grounds: (1) a pattern of customer complaints, including complaints concerning the manner in which the commercial bingo games were conducted during the license period; (2) a violation of this subtitle, violation of the rules and regulations enacted under this subtitle, or violation of any other applicable federal, state or local law or regulation during the license period; (3) failure of a commercial bingo licensee to maintain an active commercial bingo operation during the license period, including a failure to offer bingo games on a regularly scheduled basis; (4) an adverse impact of a commercial bingo licensee's operation on the neighborhood, including traffic, noise, and public safety; (5) a failure to employ required internal management and financial controls sufficient to discourage employee dishonesty and maintain the integrity of the bingo games; or (6) a failure to have paid all taxes as required by (1985 Code, Art. 16, 2-312) (Bill No ; Bill No. 4-00) ANNE ARUNDEL COUNTY, MARYLAND 17

18 Suspension or revocation of licenses All license holders. (a) Grounds for and length of suspension or revocation. The Director may suspend or revoke all licenses issued under this subtitle on the basis of a violation by a license holder or an owner or managerial employee of a license holder of any provision of this title or of a regulation adopted under the authority of this subtitle, or of any provision of other federal, state, or County law where the violation arises from the activities licensed under this subtitle. Except for an emergency suspension or a suspension under (d), the suspension of a license may not exceed 30 days. (b) Notice and hearing. Except for an emergency suspension or a suspension under (d), the Director may not suspend or revoke a license without notice and an opportunity for a public hearing. The notice of the proposed suspension or revocation shall specify the reasons for the proposed suspension or revocation, and the public hearing may not be scheduled earlier than 15 days after service of the notice. (c) Order. Within 15 days after the conclusion or waiver of the hearing, the Commission shall submit its written findings and recommendations to the Director. If suspension or revocation is warranted, the Director shall issue a written order to suspend or revoke the license specifying the reasons for the action. The order shall become effective on service. (d) Stay. A license holder whose license has been suspended or revoked may request the Director to stay the suspension or revocation pending an appeal to the Board of Appeals. In determining whether to grant a stay of a suspension or revocation, the Director shall consider the nature of the violation, the likelihood of a successful appeal, and the hardship on the license holder. (e) Emergency suspensions. The Director may order an emergency suspension of a license prior to a hearing if the Director determines that emergency suspension is necessary to protect the integrity of the commercial bingo games. An emergency suspension may not exceed 15 days. The written order implementing an emergency suspension shall become effective on service, shall specify the reasons for the emergency suspension, and shall notify the license holder of the date and time of the hearing at which permanent action will be considered. (f) Admissions and amusement tax disputes. If suspension or revocation is based on a failure to file an admissions and amusement tax return or to make an admissions and amusement tax payment when due as required by the Tax-General Article, Title 4, of the State Code, and a dispute exists between the licensee or linked bingo game provider and the Comptroller of the State over the amount of tax to be paid, the Director may require that the licensee or linked bingo game provider pay into an escrow account maintained by the Director an amount equal to the tax estimated by the Comptroller to be due pending final adjudication of the dispute. (1985 Code, Art. 16, 2-325) (Bill No ; Bill No. 9-05) Confidentiality of information. (a) Generally. The information gathered as a result of the personal and financial background check on an owner and managerial employee, annual and quarterly financial statements, and the financial statements of applicants shall be maintained in confidence by both the Department and the Commission and shall not be available for public inspection. Confidential information shall not be included in the minutes of the Commission. Before their ANNE ARUNDEL COUNTY, MARYLAND 18