(1)
Impact on gambling. In considering whether a manufacturer or
distributor applicant will be licensed or a specific product will be
distributed, the administrator shall give due consideration to the economic
impact of the applicant's product, the willingness of a licensed facility to
offer the product to the public, and whether its revenue potential warrants the
investigative time and effort required to maintain effective control over the
product.
(2)
Licensing
standards. Standards which shall be considered when determining the
qualifications of an applicant shall include, but are not limited to, financial
stability; business ability and experience; good character and reputation of
the applicant as well as all directors, officers, partners, and employees;
integrity of financial backers; and any effect on the Iowa economy.
(3)
Application procedure.
Application for a manufacturer's or a distributor's license shall be made to
the commission for approval by the administrator. In addition to the
application, the following must be completed and presented when the application
is filed:
a. Disclosure of ownership
interest, directors, or officers of licensees.
(1) An applicant or licensee shall notify the
administrator of the identity of each director, corporate officer, owner,
partner, joint venture participant, trustee, or any other person who has any
beneficial interest of 5 percent or more, direct or indirect, in the business
entity. For any of the above, as required by the administrator, the applicant
or licensee shall submit background information on forms supplied by the
division of criminal investigation and any other information the administrator
may require.
For purposes of this rule, beneficial interest includes all
direct and indirect forms of ownership or control, voting power, or investment
power held through any contract, lien, lease, partnership, stockholding,
syndication, joint venture, understanding, relationship (including family
relationship), present or reversionary right, title or interest, or
otherwise.
(2) For
ownership interests of less than 5 percent, the administrator may request a
list of these interests. The list shall include names, percentages owned,
addresses, social security numbers, and dates of birth. The administrator may
request the same information required of those individuals in subparagraph (1)
above.
b. Investigative
fees.
(1) Advance payment. The department of
public safety may request payment of the investigative fee in advance as a
condition to beginning investigation.
(2) Payment required. The administrator may
withhold final action with respect to any application until all investigative
fees have been paid in full.
c. A bank or cashier's check made payable to
the Iowa Racing and Gaming Commission for the annual license fee as follows:
(1) A manufacturer's license shall be
$250.
(2) A distributor's license
shall be $1,000.
d. A
copy of each of the following:
(1) Articles
of incorporation and certificate of incorporation, if the business entity is a
corporation.
(2) Partnership
agreement, if the business entity is a partnership.
(3) Trust agreement, if the business entity
is a trust
(4) Joint venture
agreement, if the business entity is a joint venture.
(5) List of employees of the aforementioned
who may have contact with persons within the state of Iowa.
e. A copy of each of the following
types of proposed distribution agreements, where applicable:
(1) Purchase agreement(s).
(2) Lease agreement(s).
(3) Bill(s) of sale.
(4) Participation agreement(s).
f.Supplementary information. Each
applicant shall promptly furnish the administrator with all additional
information pertaining to the application or the applicant which the
administrator may require. Failure to supply the information requested within
five days after the request has been received by the applicant shall constitute
grounds for delaying consideration of the application.
g. Any and all changes in the applicant's
legal structure, directors, officers, or the respective ownership interests
must be promptly filed with the administrator
h. The administrator may deny, suspend, or
revoke the license of an applicant or licensee in which a director, corporate
officer, or holder of a beneficial interest includes or involves any person or
entity which would be, or is, ineligible in any respect, such as through want
of character, moral fitness, financial responsibility, professional
qualifications, or due to failure to meet other criteria employed by the
administrator, to participate in gaming regardless of the percentage of
ownership interest involved. The administrator may order the ineligible person
or entity to terminate all relationships with the licensee or applicant,
including divestiture of any ownership interest or beneficial interest at
acquisition cost.
i. Disclosure.
Disclosure of the full nature and extent of all beneficial interests may be
requested by the administrator and shall include the names of individuals and
entities, the nature of their relationships, and the exact nature of their
beneficial interest.
j. Public
disclosure. Disclosure is made for the benefit of the public, and all documents
pertaining to the ownership filed with the administrator shall be available for
public inspection.
(4)
Temporary license certificates.
a. A temporary license certificate may be
issued at the discretion of the administrator
b. Temporary licenses-period valid. Any
certificate issued at the discretion of the administrator shall be valid for a
maximum of 120 calendar days from the date of issue.
Failure to obtain a permanent license within the designated
time may result in revocation of the license eligibility, fine, or
suspension.
(5)
Withdrawal of application. A written notice of withdrawal of
application may be filed by an applicant at any time prior to final action. No
application shall be permitted to be withdrawn unless the administrator
determines the withdrawal to be in the public interest. No fee or other payment
relating to any application shall become refundable by reason of withdrawal of
the application.
(6)
Record
keeping.
a.
Record storage
required. Distributors and manufacturers shall maintain adequate
records of business operations, which shall be made available to the
administrator upon request. These records shall include:
(1) All correspondence with the administrator
and other governmental agencies on the local, state, and federal
level.
(2) All correspondence
between the licensee and any of its customers who are applicants or licensees
under Iowa Code chapter 99F.
(3) A
personnel file on each employee of the licensee, including sales
representatives.
(4) Financial
records of all transactions with facilities and all other licensees under these
regulations.
b.
Record retention. The records listed in 11.13(6) "a"
shall be retained as required by 491-subrule 5.4(14).
(7)
Violation of laws or
regulations. Violation of any provision of any laws of the state or of
the United States of America or of any rules of the commission may constitute
an unsuitable method of operation, subjecting the licensee to limiting,
conditioning, restricting, revoking or suspending the license, or fining the
licensee, or any combination of the above.
(8)
Consent to inspections, searches,
and seizures. Each manufacturer or distributor licensed under this
chapter shall consent to inspections, searches, and seizures deemed necessary
by the administrator and authorized by law in order to enforce licensing
requirements.