36.03.02.16

.16 Denial of a License.

A. Denial of a Video Lottery Employee, Manufacturer, or Contractor License.

(1) Except for an operation license, in addition to the hearing requirements in §B of this regulation, the following process shall precede a hearing on the denial of a video lottery employee or contractor license.

(2) After reviewing an application submitted for a video lottery employee, manufacturer, or contractor license, the Director may recommend that the Commission deny the application of an applicant who:

(a) Has not established by clear and convincing evidence that the applicant meets applicable qualifications; or

(b) Has violated:

(i) A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;

(ii) A regulation adopted pursuant to State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or

(iii) A condition set by the Commission.

(3) If the Director recommends that the Commission deny a video lottery employee, manufacturer, or contractor license, the Director, or the Director’s designee, shall promptly provide the applicant with written notice of the:

(a) Recommendation for denial;

(b) Basis for the recommendation; and

(c) Applicant’s right to request a reconsideration meeting with the Director or the Director’s designee.

(4) An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described in §A(3) of this regulation.

(5) If an applicant fails to timely submit a request under §A(4) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director’s designee.

(6) During a reconsideration meeting, an applicant may:

(a) Be represented by counsel; and

(b) Present evidence as to why the license should be granted;

(7) If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director’s designee, the applicant may submit to the Commission, in writing:

(a) A request for hearing before the Commission on the recommendation of the Director or the Director’s designee; and

(b) The applicant’s legal and factual bases for disagreeing with the recommendation of the Director or the Director’s designee.

(8) An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director’s designee after the reconsideration meeting.

(9) If an applicant fails to timely submit a written hearing request under §A(8) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director’s designee.

(10) Upon receipt of a timely written hearing request, the Director shall provide the applicant a hearing notice for a hearing before the Commission.

(11) The Director’s hearing notice, and the Commission hearing at which the recommended denial will be considered, shall comply with the requirements of COMAR 36.01.02.06.

(12) The Commission shall:

(a) Grant the license after determining that the applicant is qualified; or

(b) Deny the license after determining that the applicant:

(i) Is not qualified or is disqualified; or

(ii) Has violated a provision described in §A(2)(b) of this regulation.

(13) Following a hearing, the Commission shall:

(a) Prepare an order denying the license with a statement of the reasons and specific findings of fact; and

(b) Provide the applicant with written notification of its final action.

B. The Commission’s final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.