36.03.02.13

.13 Manufacturer Licenses.

A. General.

(1) Unless a manufacturer holds a valid manufacturer's license issued by the Commission 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. After conducting a hearing that complies with the requirements of COMAR 36.01.02.06, the Commission 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 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 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 is:

(a) $10,000 for a manufacturer of a video lottery terminal or table game device;

(b) $10,000 for a manufacturer of a central monitor and control system;

(c) $10,000 for a manufacturer of associated equipment and software;

(d) $10,000 for a distributor or reseller of a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software; and

(e) $1,200 for a manufacturer that produces a product that:

(i) Is related to video lottery terminals, table games, or associated equipment and software that is intended for sale, lease, or other assignment to a licensee;

(ii) Does not have the ability to impact the integrity of a game; and

(iii) Is not essential to table game play.

(2) The license fee is:

(a) $5,000 for a manufacturer of a video lottery terminal or table game device;

(b) $25,000 for a manufacturer of a central monitor and control system;

(c) $5,000 for a manufacturer of associated equipment and software;

(d) $1,000 for a distributor or reseller of a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software; and

(e) $800 for a manufacturer that produces a product that is:

(i) Is related to video lottery terminals, table games, or associated equipment and software that is intended for sale, lease, or other assignment to a licensee;

(ii) Does not have the ability to impact the integrity of a game; and

(iii) Is not essential to table game play.

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 video lottery destination location 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 manufacturer license is 5 years from the date of initial licensure.

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

(3) The Commission may renew the license if the manufacturer licensee submits an application for renewal to the Commission at least 6 months before the manufacturer’s license expires and the licensee:

(a) Continues to comply with all licensing requirements;

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

(c) Pays a license renewal fee in the amount of the license fee that is required under §C(2) of this regulation.