W. Va. Code R. § 179-4-41

Current through Register Vol. XLI, No. 44, November 1, 2024

Section 179-4-41 - Supplier's License Application

41.1. To qualify for a supplier license, an applicant shall meet the requirements of this rule. Each applicant who is an individual who is a controlling person of an applicant that is not an individual shall be of good moral character and reputation, and shall have the necessary experience and financial ability to successfully carry out the functions of a gaming facility supplier. The Commission may adopt rules establishing additional requirements for a gaming facility supplier.

41.2. An applicant for a license to supply gaming devices, equipment and supplies to a gaming facility shall demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to the licensed operator of the gaming facility, conform or will conform to standards established by rules of the Commission and applicable state law.

41.3. A person applying for a supplier's license and any person required to be qualified as part of the application shall complete and submit application and disclosure forms in the manner and form prescribed by the Commission. The application and disclosure forms shall be made under oath on prescribed forms provided by the Commission and shall contain all information prescribed and required by the Commission.

41.4. Application procedures for a supplier's license are as follows:

41.4.a. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive. However, upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application.

41.4.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process.

41.4.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to the inspections, investigations, audits, searches, and seizures for the duration of the supplier's license for which application is made, if the license is issued.

41.4.d. Upon application, an applicant shall also authorize and consent, in writing, under oath, to release and disclose to the Commission and its authorized representatives and agents all otherwise confidential records of the applicant that the Commission requests from the applicant or from third parties, including, without limitation, tax records and financial records held by a federal, state, or local governmental agency, a credit bureau, or a financial institution while applying for, or while holding, a supplier's license under the Act and this rule.

41.4.e. The Commission shall use the information provided in the prescribed application and disclosure form as a basis for an appropriate background investigation, which the Commission shall conduct on each applicant, and for evaluating and determining the eligibility, qualifications, and suitability of the applicant to receive the license for which application is made. The Commission shall make the evaluation and determination under the licensing standards and criteria provided in the Act and rules of the Commission. A misrepresentation or omission in the application is cause for denial, suspension, restriction, or revocation of a license by the Commission.

41.4.f. A person applying for a supplier license shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission and West Virginia Lottery Security background investigators, and shall facilitate, assist, and cooperate with the Commission and West Virginia Lottery Security in their conduct of background investigations under the Act and this rule.

41.4.g. The Commission shall not issue a supplier's license or renewal license unless the person applying for the license, and each person required to be qualified as part of the application for issuance or renewal of the license, has completed and filed with the Commission all required applications, license renewal reports and disclosure forms in the manner and form prescribed by the Commission, has provided all information, documentation, assurances, waivers, and releases, and has paid the fees required by the Act and this rule.

41.4.h. An applicant shall file all required application forms before the expiration of deadlines established and published by the Commission.

41.4.i. An applicant is under a continuing duty to disclose any material changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission.

41.4.j. A person applying for a supplier license shall request amendment of its application when it knows, or should have known, that there has been a change in any of the following:

41.4.j.1. The applicant's key persons or the key persons of any holding company or affiliate that has control of the applicant;

41.4.j.2. The type of business organization or entity;

41.4.j.3. A holding company or affiliate;

41.4.j.4. A change of more than a 5% in the capitalization or a 1% change in the debt-to-equity ratio;

41.4.j.5. The investors or debt holders, or both; or

41.4.j.6. A source of funds.

41.4.k. A publicly traded corporation shall be considered to have complied with this rule if it has complied with the reporting requirements provided by section twelve of the Securities and Exchange Act of 1934, as amended ( 15 U.S.C. §78).

41.4.l. A supplier's license application may be withdrawn upon written notice to the Commission before Commission action on the application if all background investigation costs of the Commission have been paid in full by the person applying for a supplier license.

41.4.m. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application.

41.5. A supplier's license application shall require that the person applying for the license and a person required to be qualified as part of the application submit all of the following information and documentation on forms prescribed by the Commission:

41.5.a. The name of the person applying for a supplier license and any holding company or affiliate that has control of the applicant and the person's, company's, or affiliate's respective business address, phone number, federal identification number, and West Virginia taxpayer identification number;

41.5.b. To the extent known and identified by the applicant, the identity and home and business addresses and phone numbers of the key persons of the person applying for a supplier license, of a holding company or affiliate that has control of the applicant, and of any other person required to be qualified as part of the applicant's application under the Act and this rule; and

41.5.c. Applications and disclosure forms completed by the person applying for a supplier license and by the key persons of the applicant, a holding company or affiliate that has control of the applicant, and any other identified person required to be qualified as part of that applicant's application. The applications and disclosure forms shall contain all information and documentation that the Commission requires to determine the eligibility, qualifications, and suitability of each person under section thirteen of the Act, including, without limitation, all of the following information and documentation for each person:

41.5.c.1. Copies of all filings which are required by the Securities and Exchange Commission and which are issued and filed by the applicant, a holding company, or an affiliate that has control of the applicant during the preceding fiscal year;

41.5.c.2. All of the following properly executed documents in the manner and form prescribed by the Commission:

41.5.c.2.A. Consents to inspections;

41.5.c.2.B. Consents to warrantless searches and seizures;

41.5.c.2.C. Waivers of liability for disclosures of information; and

41.5.c.2.D. Consents to examination of confidential accounts and records;

41.5.c.3. Photographs and fingerprints of each individual person required to be qualified as part of the application. The photographs and fingerprints shall be taken at a time and place designated by the Director. Photos that have been taken within 90 days of submitting an application may be sent with the applicable disclosure form to fulfill the photo requirement;

41.5.c.4. All of the following information for each individual person required to be qualified as part of the application:

41.5.c.4.A. Name;

41.5.c.4.B. Aliases and nicknames;

41.5.c.4.C. Date of birth;

41.5.c.4.D. Physical description;

41.5.c.4.E. Citizenship;

41.5.c.4.F. Marital history and family data; and

41.5.c.4.G. Home and business addresses and phone numbers;

41.5.c.5. Personal, business, and financial information relevant to the moral character, reputation, integrity, business probity, experience and ability, and financial experience, stability, and responsibility of the person applying for a supplier license and each person required to be qualified as part of the application;

41.5.c.6. A listing of the jurisdictions in which the person applying for a supplier license and each person required to be qualified as part of that application holds or has held a supplier license or other gaming-related license;

41.5.c.7. Information regarding any previous civil litigation that involves the business practices of, or criminal arrests, charges, or dispositions involving, the person applying for a supplier license and each person required to be qualified as part of the application;

41.5.c.8. Information regarding the incorporation, partnership, or other business structure and organization of the person applying for the supplier license and the applicant's key persons and any holding company or affiliate that has control of the applicant;

41.5.c.9. Information regarding the equipment, goods, and services that the person applying for a supplier license will provide or supply to the limited gaming licensee or limited gaming license applicants, including, without limitation, information regarding inventory, prices, and the knowledge, skill, education, training, and experience of the applicant and the managerial employees and sales and service representatives who will represent the applicant and conduct its business in West Virginia;

41.5.c.10. Information regarding any previous bankruptcy proceedings filed by or against the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.11. Information regarding any previous formal legal proceedings to adjust, deter, suspend, or otherwise work out payment of any debt owed by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.12. Information regarding any present or previous tax delinquency or complaints, notices, or liens filed against the person applying for a supplier license, or any other person required to be qualified as part of the application, for nonpayment of local, state, or federal taxes and fees;

41.5.c.13. Information regarding any previous violation of, or noncompliance with, supplier licensing or regulatory requirements in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.14. Information regarding any previous violation of, or noncompliance with, any other licensing and regulatory requirements involving other regulated gaming or nongaming-related activity in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.15. Information regarding whether the person applying for a supplier license or any other person required to be qualified as part of the application has ever held a supplier license or other gaming-related license that was restricted, suspended, or revoked in West Virginia or any other jurisdiction;

41.5.c.16. Other information which is required by the Commission regarding the person applying for a supplier license and any other person required to be qualified as part of the application and which is considered necessary by the Commission to protect the public and enhance the credibility and integrity of gaming in West Virginia and to properly evaluate the applicant's eligibility, qualifications, and suitability to be licensed as a supplier under the Act and this rule.

W. Va. Code R. § 179-4-41