HOUSE BILL No. 4723 April 30, 1997, Introduced by Reps. Cherry, Wallace, Hood, Murphy, Scott, Vaughn, Leland, Hanley, Schermesser, Llewellyn, Law, Parks, Prusi, Hale, Rhead, Brater and Stallworth and referred to the Committee on House Oversight and Ethics. A bill to amend the Initiated Law of 1996, entitled "Michigan gaming control and revenue act," by amending section 4 (MCL 432.204). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 4. (1)Section 4. Michigan Gaming Control Board (a)2 There isherebyestablished amichiganMICHIGAN gaming con- 3 trol board which shall be a Type I agency within the department 4 of treasury.pursuant to the executive organization act of 1965,5Act. No. 380 of the Public Acts of 1965 being sections 16.1016to 16.732 of the Michigan Compiled Laws and whichTHE BOARD 7 shall have the powers and duties specified in this act. 8 (2)(1)The board shall consist of 5 members, not more 9 than 3 of whom shall be members of the same political party, to 10 be appointed by the governor with the advice and consent of the 02994'97 VPW 2 1 senate. The governor shall appoint the initial board within 60 2 days of the effective date of this act. 3 (3)(2)The members shall be appointed for terms of 4 4 years, except of those who are first appointed, 1 member shall be 5 appointed for a term of 2 years, 2 members shall be appointed for 6 a term of 3 years and 2 members shall be appointed for a term of 7 4 years.In the event of a vacancy or vacancies in the member-8ship of the board, the governor shall appoint in like manner a9successor or successors to fill the unexpired termA VACANCY 10 SHALL BE FILLED FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME 11 MANNER AS THE ORIGINAL APPOINTMENT. The governor shall designate 12 1 of its members to act as chairperson of the board. 13 (4)(3)Any member of the board may be removed by the gov- 14 ernor for cause. 15 (5)(b)The board shall enforce and supervise the adminis- 16 tration of this act. The board shall employ personnel as neces- 17 sary to implement this act. 18 (6)(c)The board shall promulgate ruleswhich shall be19necessary for the implementation ofTO IMPLEMENT this act pursu- 20 ant to the administrative procedures act of 1969,Act No. 306 of21the Public Acts of 1969, being sections 224.201 to 24.238 of the22Michigan Compiled Laws1969 PA 306, MCL 24.201 TO 24.328. 23 (7)(d)The business of the board shall be conducted at 24 public meetings held in compliance with the open meetings act, 25Act No. 267 of the Public Acts of 1976, being sections 15.231 to2615.246 of the Michigan Compiled Laws1976 PA 267, MCL 15.231 TO 27 15.246. 02994'97 3 1 (8)(e) A writingEXCEPT AS PROVIDED IN SECTION 4A, A 2 RECORD prepared, owned, used, in the possession of, or retained 3 by the board in the performance of an official function shall be 4 made available to the public in compliance with the freedom of 5 information act,Act No. 442 of the Public Acts of 1976, being6sections 15.231 to 15.246 of the Michigan Compiled Laws1976 PA 7 442, MCL 15.231 TO 15.246. 8 (9)(f)The board may suspend or revoke any license issued 9 pursuant to this act if the licensee or any officer, director, 10 agent, member, or employee of a licensee violates this act or 11 rules promulgatedhereunderUNDER THIS ACT. Proceedings autho- 12 rized by this act shall be conducted in accordance with and 13 subject to the administrative procedures act of 1969,Act14No. 306 of the Public Acts of 1969 being sections 24.201 to1524.238 of the Michigan Compiled Laws1969 PA 306, MCL 24.201 TO 16 24.238. 17 (10)(g)A quorum consists of 3 members. All board busi- 18 ness shall be conducted by not less than a quorum. 19 (11)(h)A board member shall not receive a salary for 20 being a board member, but shall be reimbursed for his or her rea- 21 sonable, actual and necessary expenses incurred in the per- 22 formance of his or her duties as a board member. 23 (12) IN FULFILLING ITS RESPONSIBILITY FOR IMPLEMENTING THIS 24 ACT, THE BOARD'S DUTIES SHALL INCLUDE, BUT ARE NOT LIMITED TO, 25 ALL OF THE FOLLOWING: 26 (A) DECIDING ALL LICENSE APPLICATIONS. 02994'97 4 1 (B) PROMULGATING RULES IN ACCORDANCE WITH THE ADMINISTRATIVE 2 PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328, 3 NECESSARY TO IMPLEMENT, ADMINISTER, AND ENFORCE THIS ACT, INCLUD- 4 ING, BUT NOT LIMITED TO, RULES THAT DO ALL OF THE FOLLOWING: 5 (i) GOVERN, RESTRICT, APPROVE, OR REGULATE THE CASINO GAMING 6 AUTHORIZED IN THIS ACT. 7 (ii) PROMOTE THE SAFETY, SECURITY, GROWTH, AND INTEGRITY OF 8 CASINO GAMING AUTHORIZED IN THIS ACT. 9 (iii) REGULATE EACH PERSON PARTICIPATING IN, OR INVOLVED 10 WITH, CASINO GAMING AUTHORIZED IN THIS ACT. 11 (C) EXCEPT AS PROVIDED IN SECTION 12, PROVIDING FOR THE 12 ESTABLISHMENT AND COLLECTION OF ALL LICENSE AND REGISTRATION FEES 13 AND TAXES IMPOSED BY THIS ACT AND THE RULES PROMULGATED BY THE 14 BOARD. 15 (D) PROVIDING FOR THE LEVY AND COLLECTION OF FINES IMPOSED 16 FOR THE VIOLATION OF THIS ACT AND THE RULES PROMULGATED BY THE 17 BOARD. 18 (E) REVIEWING AND RULING UPON ANY COMPLAINT BY A LICENSEE 19 REGARDING ANY INVESTIGATIVE PROCEDURES OF THE BOARD WHICH ARE 20 UNNECESSARILY DISRUPTIVE OF GAMING OPERATIONS, SUBJECT TO ALL OF 21 THE FOLLOWING: 22 (i) THE NEED TO INSPECT AND INVESTIGATE SHALL BE PRESUMED AT 23 ALL TIMES. 24 (ii) THE BURDEN SHALL BE UPON THE LICENSEE TO PROVE THE DIS- 25 RUPTION OF A LICENSEE'S OPERATIONS. 26 (F) HOLDING AT LEAST 1 MEETING EACH QUARTER OF THE FISCAL 27 YEAR AND HOLDING SPECIAL MEETINGS CALLED BY THE CHAIRPERSON OR 02994'97 5 1 ANY 2 BOARD MEMBERS UPON 72 HOURS' WRITTEN NOTICE TO EACH 2 MEMBER. 3 (G) APPOINTING 1 OF THE BOARD MEMBERS OR A HEARING OFFICER 4 TO CONDUCT ANY HEARING PROVIDED FOR UNDER THIS ACT OR THE RULES 5 PROMULGATED BY THE BOARD. A BOARD MEMBER OR A HEARING OFFICER 6 APPOINTED UNDER THIS SUBDIVISION SHALL HAVE THE AUTHORITY TO DO 7 ALL OF THE FOLLOWING: 8 (i) RECOMMEND FINDINGS AND DECISIONS TO THE BOARD. 9 (ii) EXERCISE ALL POWERS AND RIGHTS GRANTED TO THE BOARD IN 10 THIS ACT OR IN THE RULES PROMULGATED BY THE BOARD. 11 (H) REVIEWING THE RECORD MADE AT THE TIME OF A HEARING AND 12 ISSUING FINDINGS AND DECISIONS THAT SHALL CONSTITUTE THE ORDER OF 13 THE BOARD. 14 (I) MAINTAINING RECORDS THAT ARE SEPARATE FROM THE RECORDS 15 OF ANY OTHER STATE BOARD. EXCEPT AS OTHERWISE PROVIDED IN THIS 16 ACT, THESE RECORDS SHALL BE AVAILABLE FOR PUBLIC INSPECTION AND 17 SHALL ACCURATELY REFLECT ALL BOARD PROCEEDINGS. 18 (J) REVIEWING THE PATTERNS OF WAGERING AND WINS AND LOSSES 19 BY PERSONS IN CASINOS LICENSED UNDER THIS ACT AND MAKING RECOM- 20 MENDATIONS TO THE GOVERNOR AND THE LEGISLATURE IN AN ANNUAL WRIT- 21 TEN REPORT AND IN ADDITIONAL REPORTS AS THE GOVERNOR AND THE LEG- 22 ISLATURE MAY REQUEST. THE ANNUAL REPORT SHALL INCLUDE A STATE- 23 MENT OF RECEIPTS AND DISBURSEMENTS BY THE BOARD, ACTIONS TAKEN BY 24 THE BOARD, AND ANY ADDITIONAL INFORMATION AND RECOMMENDATIONS 25 THAT THE BOARD CONSIDERS APPROPRIATE OR THAT THE GOVERNOR AND THE 26 LEGISLATURE MAY REQUEST. 02994'97 6 1 (13) THE BOARD SHALL HAVE JURISDICTION OVER AND SHALL 2 SUPERVISE ALL GAMING OPERATIONS GOVERNED BY THIS ACT. THE BOARD 3 SHALL HAVE ALL POWERS NECESSARY AND PROPER TO EXECUTE THIS ACT, 4 INCLUDING, BUT NOT LIMITED TO, THE AUTHORITY TO DO ALL OF THE 5 FOLLOWING: 6 (A) INVESTIGATE APPLICANTS AND DETERMINE THE ELIGIBILITY OF 7 APPLICANTS FOR LICENSES OR REGISTRATION AND GRANT LICENSES TO 8 APPLICANTS THAT BEST SERVE THE INTERESTS OF THE RESIDENTS OF 9 MICHIGAN. 10 (B) HAVE JURISDICTION AND SUPERVISION OVER CASINO GAMING 11 OPERATIONS AUTHORIZED BY THIS ACT AND ALL PERSONS IN CASINOS 12 WHERE GAMING OPERATIONS ARE CONDUCTED PURSUANT TO THIS ACT. 13 (C) EXCEPT AS OTHERWISE PROHIBITED OR RESTRICTED BY THE LAWS 14 OR CONSTITUTION OF THIS STATE OR THE UNITED STATES, ENTER THROUGH 15 ITS INVESTIGATORS, AGENTS, AUDITORS, AND THE MICHIGAN STATE 16 POLICE, WITHOUT A WARRANT AND WITHOUT NOTICE TO THE LICENSEE, THE 17 PREMISES, OFFICES, CASINOS, FACILITIES, OR OTHER PLACES OF BUSI- 18 NESS OF A CASINO OR CASINO SUPPLIER LICENSEE, WHERE EVIDENCE OF 19 THE COMPLIANCE OR NONCOMPLIANCE WITH THIS ACT OR RULES PROMUL- 20 GATED BY THE BOARD IS LIKELY TO BE FOUND FOR THE FOLLOWING PUR- 21 POSES OR FOR ANY OTHER REASON THE BOARD DETERMINES IS REASONABLE 22 AND NECESSARY: 23 (i) TO INSPECT AND EXAMINE ALL PREMISES ON WHICH CASINO 24 GAMING OR CASINO GAMING BUSINESS OR SUPPLIER BUSINESS IS CON- 25 DUCTED, OR WHERE ANY RECORDS OF SUCH ACTIVITIES ARE PREPARED. 26 (ii) TO INSPECT, EXAMINE, AUDIT, IMPOUND, SEIZE, OR ASSUME 27 PHYSICAL CONTROL OF, OR SUMMARILY REMOVE FROM, SUCH PREMISES ALL 02994'97 7 1 BOOKS, LEDGERS, DOCUMENTS, WRITINGS, PHOTOCOPIES, CORRESPONDENCE, 2 RECORDS, VIDEOTAPES, ELECTRONICALLY STORED RECORDS, MONEY RECEP- 3 TACLES, OTHER CONTAINERS AND THEIR CONTENTS, OR EQUIPMENT IN 4 WHICH RECORDS ARE STORED, OR OTHER GAMING RELATED EQUIPMENT AND 5 SUPPLIES UPON OR AROUND PREMISES DESCRIBED IN SUBPARAGRAPH (i), 6 INCLUDING COUNTING ROOMS. 7 (iii) TO INSPECT A PERSON, AND INSPECT, EXAMINE, AND SEIZE 8 PERSONAL EFFECTS PRESENT IN A CASINO LICENSED UNDER THIS ACT, OF 9 ANY HOLDER OF A LICENSE OR REGISTRATION ISSUED PURSUANT TO THIS 10 ACT WHILE THAT PERSON IS PRESENT IN A LICENSED CASINO FACILITY. 11 (iv) TO INVESTIGATE AND DETER ALLEGED VIOLATIONS OF THIS ACT 12 OR THE RULES PROMULGATED BY THE BOARD. 13 (D) INVESTIGATE ALLEGED VIOLATIONS OF THIS ACT OR RULES 14 PROMULGATED BY THE BOARD AND TAKE APPROPRIATE DISCIPLINARY ACTION 15 AGAINST A LICENSEE OR A HOLDER OF AN OCCUPATIONAL OR SUPPLIER 16 LICENSE FOR A VIOLATION, OR INSTITUTE APPROPRIATE LEGAL ACTION 17 FOR ENFORCEMENT, OR BOTH. 18 (E) ADOPT STANDARDS FOR LICENSING UNDER THIS ACT, AS WELL AS 19 FOR ELECTRONIC OR MECHANICAL GAMING GAMES, AND ESTABLISH LICENSE 20 FEES. 21 (F) ADOPT APPROPRIATE STANDARDS FOR ALL CASINOS. 22 (G) REQUIRE THAT THE RECORDS, INCLUDING FINANCIAL OR OTHER 23 STATEMENTS OF ANY LICENSEE UNDER THIS ACT, SHALL BE KEPT ON THE 24 PREMISES OF SUCH LICENSEE IN A MANNER PRESCRIBED OR APPROVED BY 25 THE BOARD AND THAT A LICENSEE INVOLVED IN THE OWNERSHIP OR MAN- 26 AGEMENT OF GAMING OPERATIONS SUBMIT TO THE BOARD AN ANNUAL 27 BALANCE SHEET AND PROFIT AND LOSS STATEMENT, LIST OF THE 02994'97 8 1 STOCKHOLDERS OR OTHER PERSONS HAVING A 1% OR GREATER BENEFICIAL 2 INTEREST IN THE GAMING ACTIVITIES OF EACH LICENSEE, AND ANY OTHER 3 INFORMATION THE BOARD CONSIDERS NECESSARY IN ORDER TO EFFECTIVELY 4 ADMINISTER THIS ACT AND RULES PROMULGATED UNDER THIS ACT. 5 (H) CONDUCT INVESTIGATIVE AND CONTESTED CASE HEARINGS, ISSUE 6 SUBPOENAS FOR THE ATTENDANCE OF WITNESSES AND SUBPOENAS DUCES 7 TECUM FOR THE PRODUCTION OF BOOKS, LEDGERS, RECORDS, MEMORANDA, 8 ELECTRONICALLY RETRIEVABLE DATA, AND OTHER PERTINENT DOCUMENTS, 9 ADMINISTER OATHS AND AFFIRMATIONS TO THE WITNESSES, AND REQUIRE 10 AND RECEIVE TESTIMONY UNDER OATH OR AFFIRMATION. 11 (I) PRESCRIBE A FORM TO BE USED BY A CASINO LICENSEE AS AN 12 APPLICATION FOR EMPLOYMENT FOR POTENTIAL EMPLOYEES OF THE 13 LICENSEE. 14 (J) CONDUCT PERIODIC AUDITS OF CASINOS AUTHORIZED UNDER THIS 15 ACT. 16 (K) ESTABLISH MINIMUM LEVELS OF INSURANCE TO BE MAINTAINED 17 BY LICENSEES. 18 (l) DELEGATE THE EXECUTION OF ANY OF ITS POWERS UNDER THIS 19 ACT FOR THE PURPOSE OF ADMINISTERING AND ENFORCING THIS ACT AND 20 THE RULES PROMULGATED BY THE BOARD. 21 (M) TAKE ANY OTHER ACTION THAT IS REASONABLE OR APPROPRIATE 22 TO ENFORCE THIS ACT AND THE RULES PROMULGATED BY THE BOARD. 23 (14) THE BOARD SHALL ENTER INTO AGREEMENTS WITH THE DEPART- 24 MENT OF STATE POLICE, DEPARTMENT OF ATTORNEY GENERAL, DEPARTMENT 25 OF TREASURY, ANY OTHER DEPARTMENT OF STATE GOVERNMENT, THE CITY 26 IN WHICH A CASINO IS LOCATED OR IS PROPOSED TO BE LOCATED, OR A 27 LOCAL LAW ENFORCEMENT AGENCY TO ASSIST THE BOARD IN THE 02994'97 9 1 PERFORMANCE OF ANY OF ITS RESPONSIBILITIES UNDER THIS ACT. ANY 2 COSTS CHARGED, ASSESSED, OR ALLOCATED TO THE BOARD ASSOCIATED 3 WITH THE AGREEMENTS ARE EXPENSES OF OPERATING THE BOARD. 4 (15) WHEN THE BOARD IS AUTHORIZED OR REQUIRED BY LAW TO CON- 5 SIDER CRIMINAL HISTORY RECORD INFORMATION TO CARRY OUT ITS STATU- 6 TORY POWERS AND RESPONSIBILITIES, THE BOARD SHALL, IN THE FORM 7 AND MANNER REQUIRED BY THE DEPARTMENT OF STATE POLICE AND THE 8 FEDERAL BUREAU OF INVESTIGATION, CAUSE TO BE CONDUCTED A CRIMINAL 9 HISTORY RECORD INVESTIGATION TO OBTAIN INFORMATION CURRENTLY OR 10 SUBSEQUENTLY CONTAINED IN THE FILES OF THE DEPARTMENT OF STATE 11 POLICE OR THE FEDERAL BUREAU OF INVESTIGATION. THE DEPARTMENT OF 12 STATE POLICE SHALL PROVIDE, ON THE BOARD'S REQUEST, INFORMATION 13 CONCERNING ANY CRIMINAL CHARGES, AND THE DISPOSITION OF THE CRIM- 14 INAL CHARGES, CURRENTLY OR SUBSEQUENTLY FILED AGAINST AN APPLI- 15 CANT FOR OR A HOLDER OF AN OCCUPATIONAL LICENSE. INFORMATION 16 OBTAINED AS A RESULT OF AN INVESTIGATION UNDER THIS SUBSECTION 17 SHALL BE USED IN DETERMINING ELIGIBILITY FOR A LICENSE AUTHORIZED 18 UNDER THIS ACT. 19 (16) THE BOARD SHALL EJECT OR EXCLUDE ANY PERSON FROM A 20 CASINO LICENSED UNDER THIS ACT TO WHOM ANY OF THE FOLLOWING 21 APPLIES: 22 (A) THE PERSON HAS BEEN CONVICTED OF A CRIME INVOLVING 23 GAMING. 24 (B) THE PERSON HAS VIOLATED THIS ACT OR THE RULES PROMUL- 25 GATED BY THE BOARD. 02994'97 10 1 (C) THE PERSON HAS PERFORMED ANY ACT OR HAS A REPUTATION 2 WHICH THE BOARD DETERMINES WOULD ADVERSELY AFFECT PUBLIC 3 CONFIDENCE AND TRUST IN CASINO GAMING. 4 (D) THE PERSON'S NAME IS ON ANY VALID AND CURRENT LIST THAT 5 EXCLUDES HIM OR HER FROM A CASINO IN ANOTHER JURISDICTION IN THE 6 UNITED STATES. 7 (17) THE PERSON EJECTED OR EXCLUDED BY ORDER OF THE BOARD 8 UNDER SUBSECTION (16) MAY PETITION THE BOARD FOR A HEARING TO 9 REVIEW THE BOARD'S DECISION TO EJECT OR EXCLUDE THE PERSON. 10 (18) THE BOARD SHALL SEIZE, CONFISCATE, DESTROY, OR FORFEIT 11 ANY EQUIPMENT, GAMING DEVICE, MONEY, APPARATUS, PROCEEDS FROM 12 GAMING, SUBSTITUTED PROCEEDS, OR REAL OR PERSONAL PROPERTY USED, 13 OBTAINED, OR RECEIVED IN VIOLATION OF THIS ACT. 14 (19) BY JANUARY 31 OF EACH YEAR, EACH MEMBER, EMPLOYEE, AND 15 AGENT OF THE BOARD SHALL PREPARE AND FILE WITH THE BOARD A DIS- 16 CLOSURE FORM PRESCRIBED BY THE BOARD IN WHICH THE MEMBER, EMPLOY- 17 EE, OR AGENT AFFIRMS UNDER OATH AND PENALTY OF PERJURY ALL OF THE 18 FOLLOWING: 19 (A) THAT HE OR SHE IS NOT A LICENSEE OR AN APPLICANT FOR A 20 LICENSE UNDER THIS ACT, A MEMBER OF THE BOARD OF DIRECTORS OF, 21 FINANCIALLY INTERESTED IN, OR EMPLOYED BY A LICENSEE OR AN APPLI- 22 CANT FOR A LICENSE UNDER THIS ACT. 23 (B) THAT HE OR SHE CONTINUES TO MEET ANY OTHER CRITERIA FOR 24 BOARD MEMBERSHIP, EMPLOYMENT, OR AGENCY. 25 (C) THAT HE OR SHE HAS DISCLOSED IN THE DISCLOSURE FORM ANY 26 LEGAL OR BENEFICIAL INTEREST IN ANY REAL PROPERTY THAT IS OR MAY 02994'97 11 1 BE DIRECTLY OR INDIRECTLY INVOLVED WITH GAMING OR GAMING 2 OPERATIONS AUTHORIZED UNDER THIS ACT. 3 (D) THAT HE OR SHE HAS DISCLOSED IN THE DISCLOSURE FORM ANY 4 OTHER INFORMATION REQUIRED BY THE BOARD TO ENSURE THE INTEGRITY 5 OF THE BOARD AND ITS WORK. 6 (20) A MEMBER, EMPLOYEE, OR AGENT OF THE BOARD WHO DOES OR 7 HAS KNOWLEDGE OF ANY OF THE FOLLOWING SHALL IMMEDIATELY PROVIDE 8 WRITTEN NOTICE OF THE DETAILS OF THAT ACTIVITY TO THE CHAIRPERSON 9 AND SHALL NOT TAKE ANY ACTION ON BEHALF OF THE BOARD WITH RESPECT 10 TO ANY PERSON INVOLVED IN THAT ACTIVITY: 11 (A) HIS OR HER SPOUSE, PARENT, OR CHILD IS A LICENSEE OR AN 12 APPLICANT FOR A LICENSE UNDER THIS ACT, A MEMBER OF THE BOARD OF 13 DIRECTORS OF, FINANCIALLY INTERESTED IN, OR EMPLOYED BY A 14 LICENSEE OR AN APPLICANT FOR A LICENSE UNDER THIS ACT. 15 (B) NEGOTIATES FOR OR ACQUIRES AN INTEREST IN A PERSON OR AN 16 AFFILIATE OF A PERSON WHO IS A LICENSEE OR AN APPLICANT FOR A 17 LICENSE ISSUED BY THE BOARD OR A PERSON OR AN AFFILIATE OF A 18 PERSON WHO IS A LICENSEE OR AN APPLICANT FOR A LICENSE ISSUED BY 19 THE BOARD. 20 (C) ENTERS INTO A NEGOTIATION FOR EMPLOYMENT WITH A PERSON 21 OR AN AFFILIATE OF A PERSON WHO IS A LICENSEE OR AN APPLICANT FOR 22 A LICENSE ISSUED BY THE BOARD. 23 (D) RECEIVES AN INVITATION TO INITIATE A DISCUSSION CONCERN- 24 ING EMPLOYMENT OR POTENTIAL EMPLOYMENT WITH A PERSON OR AN AFFIL- 25 IATE OF A PERSON WHO IS A LICENSEE OR AN APPLICANT FOR A LICENSE 26 UNDER THIS ACT. 02994'97 12 1 (E) ACCEPTS A GIFT, GRATUITY, COMPENSATION, TRAVEL, LODGING, 2 OR ANYTHING OF VALUE DIRECTLY OR INDIRECTLY FROM A LICENSEE, 3 APPLICANT, OR AN AFFILIATE OF A LICENSEE OR APPLICANT FOR A 4 LICENSE UNDER THIS ACT UNLESS THE ACCEPTANCE CONFORMS WITH WRIT- 5 TEN POLICY OR DIRECTIVE THAT MAY BE ISSUED BY THE CHAIRPERSON OR 6 THE BOARD. 7 (F) THE EXISTENCE OF CIRCUMSTANCES THAT CONSTITUTE A CON- 8 FLICT OF INTEREST AS DETERMINED BY THE BOARD FOR THE MEMBER, 9 EMPLOYEE, OR AGENT OF THE BOARD. 10 (G) A MEMBER, EMPLOYEE, OR AGENT OF THE BOARD HAS BEEN 11 APPROACHED WITH OR OFFERED A BRIBE IN VIOLATION OF SECTIONS 117 12 AND 125 OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.117 AND 13 750.125. 14 (H) ENGAGED IN OR ATTEMPTED TO ENGAGE IN UNOFFICIAL COMMUNI- 15 CATION WITH A LICENSEE OR APPLICANT FOR A LICENSE UNDER THIS ACT 16 CONCERNING MATTERS THAT ARE BEFORE THE BOARD. 17 (I) BEEN CONVICTED OF OR CHARGED WITH A MISDEMEANOR INVOLV- 18 ING GAMBLING, DISHONESTY, THEFT, OR FRAUD OR A FELONY UNDER THE 19 LAWS OF THIS STATE, ANY OTHER STATE, THE UNITED STATES, OR ANY 20 OTHER JURISDICTION. 21 (21) A MEMBER, EMPLOYEE, OR AGENT OF THE BOARD SHALL NOT DO 22 ANY OF THE FOLLOWING: 23 (A) DISSEMINATE OR DISCLOSE MATERIAL OR INFORMATION IN THE 24 POSSESSION OF THE BOARD THAT THE BOARD CONSIDERS CONFIDENTIAL 25 UNLESS SPECIFICALLY AUTHORIZED TO DO SO BY THE CHAIRPERSON. 26 (B) ACCEPT A GIFT, GRATUITY, COMPENSATION, TRAVEL, LODGING, 27 OR ANYTHING OF VALUE, DIRECTLY OR INDIRECTLY, FROM A LICENSEE OR 02994'97 13 1 APPLICANT FOR A LICENSE, OR AN AFFILIATE OF A LICENSEE OR 2 APPLICANT FOR A LICENSE UNDER THIS ACT UNLESS THE ACCEPTANCE CON- 3 FORMS WITH WRITTEN POLICY OR DIRECTIVE THAT MAY BE ISSUED BY THE 4 CHAIRPERSON OR THE BOARD. 5 (C) ENGAGE IN ANY CONDUCT THAT CONSTITUTES A CONFLICT OF 6 INTEREST AS DETERMINED BY THE BOARD. 7 (D) ENGAGE IN POLITICAL OR POLITICALLY-RELATED ACTIVITY 8 DURING THE TIME HE OR SHE IS PERFORMING THE OFFICIAL DUTIES OF 9 THE BOARD OR AT ANY TIME THAT WOULD INTERFERE WITH THE PER- 10 FORMANCE OF THE OFFICIAL DUTIES OF THE BOARD. POLITICAL ACTIVITY 11 INCLUDES MAKING AND SOLICITING POLITICAL CONTRIBUTIONS. 12 (E) APPLY FOR ANY LICENSE UNDER THIS ACT. 13 (22) A FORMER MEMBER, EMPLOYEE, OR AGENT OF THE BOARD MAY 14 APPEAR BEFORE THE BOARD AS A WITNESS ABOUT MATTERS OR ACTIONS 15 HANDLED BY THE MEMBER, EMPLOYEE, OR AGENT DURING HIS OR HER 16 TENURE AS A MEMBER, EMPLOYEE, OR AGENT OF THE BOARD. THE MEMBER, 17 EMPLOYEE, OR AGENT OF THE BOARD SHALL NOT RECEIVE COMPENSATION 18 FOR BEING A WITNESS OTHER THAN A STANDARD WITNESS FEE AND REIM- 19 BURSEMENT FOR TRAVEL EXPENSES AS ALLOWED UNDER RULE OR STATUTE. 20 (23) AN EMPLOYEE OR AGENT OF THE BOARD SHALL NOT BEGIN OR 21 CONTINUE OUTSIDE EMPLOYMENT UNLESS THAT EMPLOYMENT IS APPROVED BY 22 THE BOARD. AN EMPLOYEE OR AGENT WHO HAS RECEIVED PERMISSION TO 23 ENGAGE IN OUTSIDE EMPLOYMENT SHALL NOT CONDUCT ANY ACTIVITIES 24 RELATED TO HIS OR HER OUTSIDE EMPLOYMENT DURING THE HOURS HE OR 25 SHE IS WORKING FOR THE BOARD. AS USED IN THIS SUBSECTION, 26 "OUTSIDE EMPLOYMENT" INCLUDES, BUT IS NOT LIMITED TO, OPERATION 02994'97 14 1 OF A BUSINESS AND PARTICIPATION AS AN EMPLOYEE, PARTNER, OR 2 OFFICER IN ANY BUSINESS ENTITY. 3 (24) EXCEPT AS OTHERWISE ALLOWED BY THE BOARD, A MEMBER, 4 EMPLOYEE, OR AGENT OF THE BOARD SHALL NOT DO EITHER OF THE FOL- 5 LOWING FOR A PERIOD OF 2 YEARS FOLLOWING THE DATE OF TERMINATION 6 OF HIS OR HER APPOINTMENT, EMPLOYMENT, OR AGENCY: 7 (A) ENGAGE IN ANY EMPLOYMENT WITH, HAVE A CONTRACTUAL RELA- 8 TIONSHIP WITH, OR HAVE A FINANCIAL INTEREST IN A LICENSEE OR AN 9 APPLICANT FOR A LICENSE UNDER THIS ACT. 10 (B) APPEAR BEFORE THE BOARD ON ANY MATTER ON BEHALF OF A 11 LICENSEE OR AN APPLICANT FOR A LICENSE UNDER THIS ACT. 12 (C) ENGAGE IN ANY DISCUSSION WITH A BOARD EMPLOYEE FOR OR ON 13 BEHALF OF A SPECIFIC APPLICANT OR LICENSEE REGARDING A MATTER 14 UNDER INVESTIGATION BY OR PENDING BEFORE THE BOARD. 15 (D) APPLY FOR OR HAVE ANY FINANCIAL OR BENEFICIAL INTEREST 16 IN A LICENSE UNDER THIS ACT. 17 (25) EXCEPT AS AUTHORIZED BY THE BOARD IN CONJUNCTION WITH 18 SURVEILLANCE, SECURITY, OR OTHER BOARD RESPONSIBILITIES, A 19 MEMBER, EMPLOYEE, OR AGENT OF THE BOARD SHALL NOT PARTICIPATE IN 20 OR WAGER ON ANY GAMBLING GAME CONDUCTED BY A LICENSEE UNDER THIS 21 ACT. 22 (26) A MEMBER, EMPLOYEE, OR AGENT WHO VIOLATES SUBSECTION 23 (21) OR (23) IS SUBJECT TO 1 OR MORE OF THE FOLLOWING: 24 (A) REMOVAL FROM THE BOARD. 25 (B) TERMINATION OF EMPLOYMENT. 26 (C) OTHER DISCIPLINARY ACTION BY THE BOARD. 02994'97 15 1 (27) A MEMBER, EMPLOYEE, OR AGENT WHO VIOLATES SUBSECTION 2 (24) OR (25) IS GUILTY OF A FELONY PUNISHABLE BY IMPRISONMENT FOR 3 NOT MORE THAN 1 YEAR OR A FINE OF NOT MORE THAN $1,000.00, OR 4 BOTH. 5 (28) THE BOARD SHALL NOTIFY ALL OF THE FOLLOWING WITHIN 24 6 HOURS AFTER IT BECOMES AWARE OF A VIOLATION OR A SUSPECTED VIOLA- 7 TION OF SUBSECTIONS (21) THROUGH (25): 8 (A) THE GOVERNOR. 9 (B) THE SENATE MAJORITY LEADER. 10 (C) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. 11 (D) THE ATTORNEY GENERAL. 12 (29)(i)There is appropriated for the fiscal year ending 13 September 30, 1997, $1,000,000.00 for the purpose of funding the 14 operations of the board. 02994'97 Final page. 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