Virginia Law

A. In addition to the processes and requirements set out in 11VAC5-90-40 and 11VAC5-90-50, the requirements set out in this section shall apply to the applications for a supplier permit and the applicant's related entities and individuals.

B. There are four categories of suppliers:

1. Contractor;

2. Key manager;

3. Manufacturer; and

4. Slot machine management system provider.

C. An applicant for a supplier permit shall submit with its application all required fees and applications for:

1. The applicant itself;

2. If applicable, its principals; and

3. All known key managers.

D. The fee for each supplier applicant shall be a:

1. Nonrefundable $5,000 application fee for the supplier; and

2. Unless such fee has been submitted in behalf of the same applicant pursuant to another related or contemporaneously filed application, $50,000 background investigation fee for any principal, including any applicable key manager.

E. Following a successful background investigation and prior to issuance of a supplier permit, the supplier shall submit a $5,000 annual permit fee.

F. A person is ineligible to receive a supplier's permit if:

1. The person has been convicted of a felony under the laws of the Commonwealth or any other state or of the United States;

2. The person has submitted an application for a license under this chapter that contains false information;

3. The person is a board member, employee of the department, or a member of the immediate household of a board member or department employee;

4. The person is an entity in which a person described in subdivision 1, 2, or 3 of this subsection is an officer, director, principal, or managerial employee;

5. The firm or corporation employs a person who participates in the management or operation of casino gaming authorized under this chapter;

6. A prior license or permit issued to such person to own or operate casino gaming establishments or supply goods or services to a gaming operation under this chapter or any laws of any other jurisdiction has been revoked; or

7. A. period of five years has not elapsed since the date of final action on a denial of an earlier application for a supplier permit, unless the director in the director's sole and unappealable discretion has made an exception to that waiting period.

G. Issuance.

1. The department shall consider all information submitted in the supplier permit application and any information discovered as a result of the department's background investigation.

2. As a condition of accepting a supplier permit, permit holders shall expressly acknowledge their duty to adhere to all requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming.

3. Upon request of an applicant, the director may in his sole discretion issue a temporary or conditional supplier permit to an apparently-qualified applicant pending final board approval of the permit.

4. An applicant for a supplier permit may not be considered to be apparently-qualified if:

a. The applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a permit or license under the casino gaming law or this chapter;

b. The applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the Commonwealth of Virginia's casino gaming program; or

c. There are reasonable grounds to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under this chapter.

5. A temporary or conditional supplier permit holder whose permanent supplier permit is denied shall not receive a refund of any fees paid toward the application and the costs of the department's background investigation.

6. A temporary or conditional supplier permit:

a. May not be issued until the applicant has acknowledged in writing that the Commonwealth of Virginia is not financially responsible for any consequences resulting from termination of a temporary or conditional supplier permit, or a denial of the application;

b. Expires 60 days after the date of issuance; and

c. May be extended by the director for one period of up to 60 days.

7. When the board changes a temporary or conditional supplier permit into permanent status, the date of issuance of the permanent supplier permit shall be deemed to be the date that the director issued the temporary supplier permit.

8. If, during the course of conducting an applicant's background investigation, department staff reasonably believes that there is a basis for recommending denial of a permanent supplier permit to a temporary or conditional supplier permit holder, department staff shall:

a. Notify the director and the temporary or conditional supplier permit holder; and

b. If the board has not yet issued a final decision on the application, allow the application to be withdrawn.

9. By written notice to a temporary or conditional supplier permit holder, the director may terminate, without a hearing and without following the denial process under 11VAC5-90-40, the temporary or conditional supplier permit of an applicant for:

a. Failure to pay a required fee;

b. Failure to submit required information and documentation to department staff within 15 days of responding to a request for additional information or documents;

c. Failure to comply with any other request of department staff;

d. Engaging in conduct that obstructs department staff from completing the applicant's background investigation;

e. Failure to comply with the conditions imposed by the director; or

f. Violating any provision of the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming.

10. Unless the applicant withdraws the application within seven days of the notice issued under subdivision 8 or 9 of this subsection, the director's written notice of termination of a temporary or conditional supplier permit shall be deemed a denial and referred to the board for completion of the process set out in 11VAC5-90-40 F.

11. A decision by the department not to issue or renew a temporary or conditional supplier license is not appealable.

H. Suspension, civil penalties, revocation, and nonrenewal.

1. In addition to any other sanctions or civil penalties, including those set out in 11VAC5-90-90, the director may impose a civil penalty or suspend, revoke, or refuse to renew a supplier permit for:

a. Failure to comply with, or violation of, any provision of the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming;

b. Failure to disclose facts during the application process that indicate that the supplier permit should not have been issued;

c. Conviction of a felony under the laws of the Commonwealth of Virginia or any other state, or of the United States subsequent to issuance of the supplier permit;

d. Failure to file any return or report, keep any record, or pay any fee or other charges required by the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming;

e. Any act of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the integrity of gaming operations; or

f. A material change, since issuance of the supplier permit, with respect to any matters required to be considered by the director under the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming.

2. The director may temporarily suspend a supplier permit without notice pending any prosecution, hearing, or investigation, whether by a third party or by the director.

3. Disputes related to a suspension, revocation, or refusal to renew a supplier permit shall be conducted pursuant to the procedures set out in 11VAC5-90-40 F.

I. Portability.

1. A supplier permit holder who wishes to perform the functions approved by the department pursuant to its initial permit application at a different location or for a different licensee or permit holder shall inform the department in advance.

2. The department shall freely authorize transfers requested pursuant to subdivision 1 of this subsection.

3. The permit holder shall comply with the requirements set out in 11VAC5-90-40 for the replacement of identification cards.

J. Renewal term.

1. Unless otherwise required by law, a permit shall be automatically renewed each year after the first year for four additional successive annual terms.

2. A permit holder shall submit to the department an annual permit fee of $5,000 before the start of the next annual term.

3. The department need not conduct a new background investigation of the permit holder during the four renewal terms.

4. Every five years, a permit holder shall:

a. Submit a renewal application six to three months before the expiration date of the permit term, and

b. Pay any fees associated with the application and background investigation as directed by the department.