Mo. Code Regs. tit. 11 § 45-5.056

Current through Register Vol. 49, No.12, June 17, 2024

Section 11 CSR 45-5.056 - Ethical Restrictions

PURPOSE: This amendment updates the class designation, corrects the Supplier license title for consistency with other regulations in 11 CSR 45, and replaces "riverboat" with "excursion gambling boat" for consistency with the term defined in statute.

(1) For purposes of this rule-

(A) "Affiliate" shall be defined as any entity with a parent company that is a holder of or applicant for a Class A or Supplier's license, or any entity that shares a common parent company with a holder of or applicant for a Class A or Supplier license;

(B) "Appointed official" shall be defined as any employee or agent of a governmental entity who holds a position with discretionary authority to take or vote on the following actions:

1. Promulgation of ordinances, rules, or regulations with the effect of law that are applicable to the operations of a holder of or applicant for a Class A, Class B, or Supplier license;

2. Granting of governmental approvals, licenses, or certifications to a holder of or applicant for a Class A, Class B, or Supplier license;

3. Enforcement of statutes or of ordinances, rules, or regulations with the effect of law against a holder of or applicant for a Class A, Class B, or Supplier license; provided that, in the case of law enforcement personnel, such person must-

A. Actually exercise such authority;

B. Be specifically assigned by the governmental entity to exercise such authority; or

C. Hold the power to assign such personnel to exercise such authority; and

4. Entering into any contract or agreement between the governmental entity and a holder of or applicant for a Class A, Class B, or Supplier license;

(C) "Commission representative" shall be defined as any member, employee or agent of the commission or any employee of the state highway patrol designated by the superintendent of the highway patrol to have direct regulatory authority related to excursion gambling boats or any employee of the state attorney general's office designated by the state attorney general to have direct regulatory authority related to excursion gambling boats;

(D) "Direct gaming activity" shall be defined as the management of a casino, the operation of gambling games, the receipt of wagers as part of such games, the payment of winnings to wagerers involved in such games, and the providing of gaming equipment or supplies;

(E) "Direct ownership interest" shall be defined as any financial interest, equitable interest, beneficial interest, or ownership control held by the government official, or such person's family member related within the second degree of consanguinity or affinity, in an excursion gambling boat operation; in any holder of or applicant for a Class A, Class B, or Supplier license; or in any holding company or affiliate company of a holder of or applicant for a Class A, Class B, or Supplier license; provided that a direct ownership interest shall not include any equity interest purchased at fair market value, or equity interest received as consideration for goods and services provided at fair market value, of less than one percent (1%) of the total outstanding shares of stock of any publicly traded corporation or certificates of partnership of any limited partnership which is listed on a regulated stock exchange or automated quotation system;

(F) "Direct regulatory authority" shall be defined as any role in the enforcement of the Riverboat Gambling Act and the regulations promulgated thereunder;

(G) "Employ" shall be defined as any of the following:

1. Hiring a person as an employee;

2. Engaging the services of a person with knowledge or reason to believe that the person's employer provides consideration to the person that is derived from or contingent upon consideration paid to that employer for the services provided; or

3. Engaging the services of an entity controlled by a person with knowledge or reason to believe that the person will receive consideration that is derived from or contingent upon consideration paid to the entity for the services provided, in which case the controlling person is "employed";

(H) "Ex parte communication" shall be defined as direct or indirect communication by any holder of or applicant for a Class A, Class B, or Supplier license, or any representative or agent of such license holder or applicant, with any commission member regarding any matters under the jurisdiction of the commission related to the respective holder of or applicant for a Class A, Class B, or Supplier license, unless such communications take place during an official commission or commission committee meeting, or, if written, are provided to all other commission members within five (5) days of the initial communication and prior to any commission action on the matter. The following shall not be defined as ex parte communication:

1. Any written communication addressed and sent to all commission members;

2. Any communication taking place at a meeting of a governmental entity subject to the Missouri Open Meetings Act, including but not limited to meetings of the commission or any committee of the commission;

3. Any communication with employees or agents of the commission who are not commission members, including any such communication that may also involve a commission member as a participant, provided that, if a commission member does participate in such communication, this exemption shall apply only if the holder of or applicant for a Class A, Class B, or Supplier license summarizes, reduces to writing, and distributes such writing, to all commission members within five (5) days of the communication and prior to any commission action on the matter; and

4. Any communication between a commission member and a government official;

(I) "Government official" shall be defined as any of the following:

1. A commission representative;

2. A member of the General Assembly; or

3. An elected official or an appointed official of the state of Missouri or of any Missouri city or county in which the licensing of excursion gambling boats has been approved in either the city or county or both;

(J) "Parent company" shall be defined as a holding company defined in 11 CSR 45-10.040 or as any other entity which, directly or indirectly through one or more intermediaries, possesses the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract or otherwise; and

(K) "Representative or agent" of a license holder or applicant shall be defined as a key person or occupational licensee employee of the license holder or applicant or any individual who acts as a common law agent on behalf of the license holder or applicant before the commission, such as an attorney, accountant or lobbyist.

(2) No holder of or applicant for a Class A, Class B, or Supplier license may have a contractual relationship involving, as a party or agent of a party, a person who is a government official at the time of the relationship or who has been a government official within (2) two years prior to the relationship, if such contractual relationship is one in which any aspect of direct gaming activity is included in the duties or obligations of the government official, former government official, or the party for which he or she acts as an agent.

(3) No holder of or applicant for a Class A, Class B, or Supplier license, or any representative or agent of such license holder or applicant, may enter into any contractual relationship with any commission representative in which the commission representative receives consideration that is above fair market value.

(4) No holder of or applicant for a Class A, Class B, or Supplier license may employ or offer to employ a person, or the spouse or dependent child of such a person, who is a government official at the time of such employment or offer, or who has been a government official within two (2) years prior to such employment or offer.

(5) No holder of or applicant for a Class A, Class B, or Supplier license, or any representative or agent of such license holder or applicant, may attempt to influence any official action of a government official by reason of offering to employ any person; provided that this section shall not prohibit offering employment to any person who has been recommended for employment by a government official, if the offer of employment is not an attempt to influence a specific official action of that government official.

(6) No representative or agent of a holder of or applicant for a Class A, Class B, or Supplier license may employ or offer employment to any commission representative.

(7) No holder of or applicant for a Class A, Class B, or Supplier license may knowingly offer a direct ownership interest to or allow a direct ownership interest to be held by a person who is a government official at the time of holding such direct ownership interest or who has been a government official within two (2) years prior to holding such direct ownership interest; provided that knowledge of a broker or transfer agent for a publicly traded license holder or applicant shall not be imputed to such license holder or applicant for purposes of this rule.

(8) No holder of or applicant for a Class A, Class B, or Supplier license, or any representative or agent of such license holder or applicant, may offer any gift to any commission representative or to any peace officer of any city or county which has approved gambling games on excursion gambling boats.

(9) No holder of or applicant for a Class A, Class B, or Supplier license, or any representative or agent of such license holder or applicant, may knowingly engage in ex parte communication with any commission member.

(10) No holder of or applicant for a license or any representative or agent of such license holder or applicant may offer, promise, or give anything of value or benefit to a person who is connected with a licensee including but not limited to an officer or employee of a licensee or holder of an occupational license, pursuant to an agreement or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a gambling game, or to influence official action of a member of the commission.

(11) No holder of or applicant for a license or any representative or agent of such license holder or applicant may solicit or knowingly accept or receive a promise of anything of value or benefit while the person is connected with an excursion gambling boat including but not limited to an officer or employee of a licensee or holder of an occupational license, pursuant to an agreement or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a gambling game, or to influence official action of a member of the commission.

(12) No holder of or applicant for a Class A, Class B, or Supplier license or any representative or agent of such license holder or applicant may solicit, suggest, request, or recommend to any individual or entity the appointment of any commission representative to any office, place, position, or employment.

(13) No holder of or applicant for a Class A, Class B, or Supplier license or any representative or agent of such license holder or applicant may hire or utilize the services of a commission representative or a person who has been a commission representative within the previous two (2) years as a representative or agent of the holder of or applicant for a Class A, Class B, or Supplier license.

(14) No holder of or applicant for a Class A, Class B, or Supplier license may enter into any scheme or arrangement through which one (1) or more of the relationships, transactions, or activities prohibited by this rule is knowingly effected through an affiliate or parent company of the applicant or license holder in an attempt to circumvent the provisions of this rule.

(15) Notwithstanding sections (1) through (14), this rule shall not prohibit any applicant or licensee from-

(A) Allowing any person to engage in legal gaming activity as a patron of a casino;

(B) Charging an admission fee to any person to enter a gaming establishment; or

(C) Entering into an agreement with the state, any political subdivision of the state or any other governmental entity that is otherwise legal and that has been disclosed to the commission within ten (10) days of consummation; including, but not limited to, agreements for the reimbursement of expenses incurred by a governmental entity for services of agents or employees of that entity acting in their official capacities.

11 CSR 45-5.056

AUTHORITY: sections 313.800, 313.805, 313.812 and 313.830, RSMo 1994.* Original rule filed Feb. 19, 1998, effective Aug. 30, 1998. Amended: Filed May 13,1998, effective Jan. 30, 1999. Amended: Filed Nov. 12, 1998, effective June 30, 1999.

Amended by Missouri Register January 2, 2024/volume 49, Number 01, effective 2/29/2024.

*Original authority: 313.800, RSMo 1991, amended 1993, 1994; 313.805, RSMo 1991, 1993, 1994; 313.812, RSMo 1991, amended 1993, 1994, 1995; and 313.830, RSMo 1991, amended 1993.