205 Mass. Reg. 138.06

Current through Register 1523, June 7, 2024

Section 138.06 - System for Business Dealings with Vendors

(1) A system of internal controls submitted by a gaming licensee in accordance with 205 CMR 138.02 shall include a plan for ensuring that all persons conducting business with a gaming licensee as a vendor to a gaming establishment are properly licensed or registered in accordance with 205 CMR 134.04: Vendors or 205 CMR 234.00: Sports Wagering Vendors. The system of internal controls shall include, without limitation, the following:

(a) Procedures for assuring that only properly licensed and/or registered vendors are conducting business with a gaming licensee;

(b) Procedures to prepare and submit petitions for temporary licenses of vendors pursuant to 205 CMR 134.12: Temporary Licenses and 205 CMR 234.07: Temporary Licenses for Sports Wagering Vendors;

(c) Procedures to assure the timely renewal of licenses and registrations of vendors; and

(d) Procedures for terminating or suspending the conduct of business with a vendor licensed or registered pursuant to 205 CMR 134.00: Licensing and Registration of Employees, Vendors, Junket Enterprises and Representatives, and Labor Organizations or 205 CMR 234.00: Sports Wagering Vendors within 24 hours of notification from the Commission that the license, registration, or application of such vendor has been revoked, suspended, or denied.

(2) The system of internal controls submitted by a gaming licensee in accordance with 205 CMR 138.02 shall include a plan for providing a Disbursement Report to the Commission on a bi-monthly basis and in a format as directed by the Commission. The Disbursement Report shall reflect, for each vendor licensed or registered in accordance with 205 CMR 134.04: Vendors or 205 CMR 234.00: Sports Wagering Vendors, the following information:

(a) Name of vendor;

(b) Vendor license or registration number;

(c) The amount of each individual disbursement drawn by the gaming licensee to the vendor, and the amount of each individual disbursement drawn by the vendor to the gaming licensee;

(d) The date of each disbursement;

(e) The total of all disbursements made during the reporting period by vendor; and

(f) The date and amount of any payment to or from a vendor subsequently voided or corrected.

(3)Agreements with Vendors. Each gaming licensee shall maintain a fully signed copy of every written agreement and records with respect to every unwritten agreement to which it is a party which provide, at a minimum, the terms of the agreement, the parties to the agreement, a description of the goods and/or services to be provided under the agreement, and details regarding the exchange of direct compensation under the agreement including, but not limited to, dollar amounts for any person doing business for the benefit of the gaming licensee and/or the gaming establishment, any person doing business relating to the construction, maintenance, renovation, and/or expansion of the gaming establishment, and any person doing business on the premises of the gaming establishment.