Md. Code Regs. 36.03.02.13

Current through Register Vol. 51, No. 12, June 14, 2024

Section 36.03.02.13 - Manufacturer Licenses

A. General.

(1) Unless a manufacturer holds a valid manufacturer's license issued by the Commission or Agency staff before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, table game device, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals or table games under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.

(2) The following persons must meet the Commission's manufacturer license requirements:

(a) A manufacturer; and

(b) Each person that owns, controls, or is a representative of a manufacturer.

B. Qualification Requirements. Agency staff may issue a manufacturer license to a manufacturer that has:

(1) Paid the application and license fee under §C of this regulation;

(2) Unless exempt, obtained a bond required under Regulation .15 of this chapter;

(3) Furnished the Commission or Agency staff with the information and documentation required under this chapter;

(4) Established by clear and convincing evidence that each person identified in §A(2) of this regulation has:

(a) Qualified under State Government Article, § 9-1A-07(c), Annotated Code of Maryland; and

(b) Not been disqualified under State Government Article, § 9-1A-08, Annotated Code of Maryland;

(5) Provided the Commission or Agency staff with sufficient information to establish that the manufacturer has otherwise qualified for a manufacturer license; and

(6) Established that its system, associated equipment or software, or goods or services meet the specifications and procedures in COMAR 36.03.12.

C. Application and License Fees.

(1) The application fee for a:

(a) Tier 1 manufacturer is $10,000; and

(b) Tier 2 manufacturer is $1,200.

(2) The license fee for a:

(a) Tier 1 manufacturer of a central monitor and control system is $25,000;

(b) Tier 1 manufacturer of a video lottery terminal or table game equipment is $5,000;

(c) Tier 1 manufacturer of associated equipment and software in §C(2)(a) or (b) of this regulation is $5,000;

(d) Tier 1 manufacturer that distributes or resells a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software is $1,000; and

(e) Tier 2 manufacturer is $800.

D. The manufacturer license authorizes the licensee to manufacture or distribute a video lottery terminal, table game equipment, central monitor and control system, and associated equipment and software to the Commission or a facility operator in the State.

E. 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 State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.

F. Term; Renewal; License Renewal Fee.

(1) The term of a Tier 1 and Tier 2 manufacturer license is 5 years from the date of initial licensure.

(2) The Commission may stagger the terms of licenses.

(3) Agency staff may renew the license if the manufacturer licensee:

(a) Submits an application for renewal to the Commission at least 6 months before the manufacturer's license expires;

(b) Continues to comply with all licensing requirements;

(c) Submits to a background investigation under Regulation .05 of this chapter; and

(d) Pays a license renewal fee.

(4) The license renewal fee for a:

(a) Tier 1 manufacturer of a central monitor and control system is $25,000;

(b) Except as provided in §F(4)(a) of this regulation, Tier 1 manufacturer is $5,000; and

(c) Tier 2 manufacturer is $800.

G. Background Investigation Deposit.

(1) A $2,000 background investigation deposit is required at the time an applicant files a manufacturer license application.

(2) If the deposit is exhausted prior to completion of the background investigation, the applicant will be billed for any additional investigative costs the Commission incurs.

Md. Code Regs. 36.03.02.13

Regulations .13 adopted as an emergency provision effective 40:6 Md. R. 470, eff.3/1/2013 ; emergency action expired effective July 20, 2013
Regulations .13 adopted effective 40:16 Md. R. 1347, eff.8/19/2013
Regulation .13 amended effective 40:24 Md. R. 2018, eff.12/12/2013 ; amended effective 43:5 Md. R. 388, eff.3/14/2016; amended effective 50:26 Md. R. 1130, effective 12/12/2023, exp. 6/9/2024 (Emergency); amended effective 51:10 Md. R. 529, eff. 5/27/2024.