Md. Code Regs. 36.03.02.17

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

Section 36.03.02.17 - Vendor Registration

A. Definitions. In this regulation, the following terms have the meaning indicated.

B. Terms Defined.

(1) "Commission" means Agency staff in this regulation.

(2) Vendor.

(a) "Vendor" means a person:

(i) That provides goods or services at a value of $50,000 or more to a video lottery operation applicant or licensee and is not required to be licensed as a manufacturer or contractor under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter; or

(ii) For whom the Commission determines registration as a vendor is necessary.

(b) "Vendor" does not include:

(i) Public utilities that provide water, sewerage, electricity; or natural gas;

(ii) Insurance companies that provide insurance to a video lottery applicant or licensee or its employees;

(iii) Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs;

(iv) Professional associations that receive funds from the video lottery applicant or licensee for the cost of enrollment, activities, and membership;

(v) Units of federal, State, county, or municipal government;

(vi) Manufacturers of alcoholic beverages;

(vii) State-chartered or federally chartered banks or savings and loan associations;

(viii) Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services;

(ix) Telecommunication, satellite, or internet services;

(x) Parcel shipping and delivery services;

(xi) Persons that engage in efforts to influence legislative or administrative action on behalf of a video lottery operation applicant or licensee for economic consideration;

(xii) Educational or training opportunities for facility employees;

(xiii) Professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a video lottery operation licensee to appear at a licensee-sponsored entertainment or promotional event;

(xiv) Representatives of a media outlet or provider of a simulcast service;

(xv) A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to State video lottery operation applicants or licensees of less than $50,000; or

(xvi) A vendor for whom the Commission determines registration is not necessary in order to protect the public interest.

C. Except as provided in §§D and G of this regulation, a vendor that conducts business with a video lottery operation applicant or licensee shall be registered with the Commission.

D. Certain Vendors Exempt from Registration Requirements.

(1) A vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a video lottery operator purchases solely to be given to a player.

(2) A vendor exempted under this section may only provide the following goods and services to a video lottery facility operator:

(a) Leisure or recreational travel;

(b) Lodging;

(c) Vehicles;

(d) Entertainment;

(e) Dining;

(f) Clothing;

(g) Jewelry;

(h) Gift cards; or

(i) Other gift items.

(3) A video lottery operator that purchases goods or services from a vendor exempted under this section:

(a) Is subject to the requirements of COMAR 36.03.10.09; and

(b) Shall identify in a report submitted under COMAR 36.03.10.09 each exempted vendor from which it purchased goods or services during the reporting period.

E. Vendor Registration.

(1) A vendor that provides, or anticipates providing, nongaming related goods and services to a single video lottery operation applicant or licensee shall be registered with the Commission.

(2) The video lottery operation applicant or licensee to which a vendor provides, or anticipates providing, the nongaming related goods and services shall submit to the Commission a completed registration form in a format designated by the Commission that includes:

(a) Vendor name;

(b) Vendor business address;

(c) Type of goods or services provided;

(d) Total value of goods or services provided to video lottery applicants or licensees in the State within a calendar year;

(e) Documentation that:

(i) The vendor's business is in good standing or active with the Maryland State Department of Assessment and Taxation; or

(ii) The vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation;

(f) Registration fee of $100; and

(g) Any other information the Commission requires.

(3) Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the vendor.

F. Except as provided in §G of this regulation, a vendor may not provide goods or services related to a video lottery operation applicant or licensee until it is registered with the Commission.

G. Emergency Notification. An applicant or licensee may accept goods or services from a vendor that is not registered by the Commission if:

(1) The applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a vendor; and

(2) Except as provided in §C of this regulation:

(a) No later than the next State business day after the vendor's emergency provision of goods or services, the applicant or licensee shall submit to the Commission a vendor emergency notification form that includes an explanation of the need for its emergency use of a vendor that is not registered with the Commission; and

(b) Within 20 business days of submitting the vendor emergency notification form, the applicant or licensee shall submit to the Commission a vendor registration form.

H. A vendor's registration:

(1) Remains in effect for 5 years from the date the Commission approves the registration;

(2) May be renewed by the Commission if the vendor submits the required form, and renewal fee required in §I of this regulation, as required under §D of this regulation at least 90 days before the expiration of 5 years from the date of written notification under §D(3) of this regulation;

(3) Shall automatically expire if a vendor does not comply with renewal requirements under this regulation; and

(4) Is subject to cancellation by the Commission if the Commission determines that the vendor's continued conduct of business with a video lottery operation applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this subtitle.

I. Renewal Fee.

The renewal fee for a vendor is $100.

J. The Commission's decision to deny or cancel a vendor registration, or to deny the renewal of a vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act.

K. The Commission may maintain and make publicly available a list of:

(1) Registered vendors; and

(2) Vendors that are prohibited from doing business with a video lottery operation applicant or licensee because the Commission has denied or cancelled their application or registration.

L. A video lottery operation applicant or licensee shall:

(1) Submit to the Commission a monthly vendor payments report in a format prescribed by the Commission; and

(2) Ensure that a vendor appearing on its monthly vendor payments report is:

(a) Registered; or

(b) Exempt.

Md. Code Regs. 36.03.02.17

Regulations .17 adopted as an emergency provision effective 40:6 Md. R. 470, eff.3/1/2013 ; emergency action expired effective July 20, 2013
Regulations .17 adopted effective 40:16 Md. R. 1347, eff.8/19/2013 ; amended effective 43:13 Md. R. 714, eff.7/4/2016; amended effective 47:21 Md. R. 905, eff. 10/19/2020; amended effective 48:18 Md. R. 695, eff. 9/6/2021; 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.