3772-5-01 Key employee license required.  

  •             ACTION: Ori  .

    John R. Kasich

    Governor

    SINO CONTRO

       10:45 AM   

    Jo Ann Davidson

    Chair

     

     
    NOTICE OF PUBLIC HEARING

    A public hearing will be held by the Ohio Casino Control Commission ("Com mission ") on Thursday, November 17, 2016 at  10:00 a.m. on  the 61h Floor  of  the  One Columbus Building, located at 10 West Broad Street, Columbus, Ohio 43215. The pu?ose of the hearing is to solicit public comment on the following proposed amendments:

    These rules relate to records retention; qualification of institutional investors; the voluntary exclusion program; advertising; involuntary exclusion; and licensure of key employees, gaming-related

    vendors, and casino gaming employees.  Many of these amendments are small housekeeping changes to tighten up and clarify rule language. In addition to the items specifically listed below, many of the amendments remove the terms "applicant or licensee" and instead use the name of the entity in an effort to streamline and clarify Ohio Adm. Code 3772 in its entirety. Another consistent change made to streamline these rules is the removal of the term "management company,''where appropriate. In

    Ohio Adm. Code 3772-1-0l (B)(?,the term "casino operator" is defined to include "management

    company,''unless the context clearly indicates otherwise, allowing for this change. Further, several amendments are made to Ohio Adm. Code Chapters -3, -5, -6, and -8 for consistency with previous amendments.

         3772-1-07 (new), titled "Records retention requirements." Although this is a new rule, the language is largely adopted from Ohio Adm. Code 3772-3-05, which will be rescinded. Some further portions of current Ohio Adm. Code 3772-3-05 will also be moved into Ohio Adm. Code 3772-10-05 to accomplish the rescission. The substance of the rule requires casino operators, holding companies, and gaming-related vendors to retain and maintain certain records relating to the conduct of casino gaming and has been in place since casino gaming commenced in Ohio. The purpose of the amendment is to streamline the existing rule and to move the rule into Ohio Adm. Code Chapter l "General Provisions" from Chapter 3 "Institutional Investors and Records Retention." This enables Chapter 3 to contain rules solely pertaining to institutional investors.

          3772-3-01 (amendment), titled "Institutional investor." This rule clarifies that the statutory definition of institutional investor applies for rules adopted thereunder. The amendment deletes unnecessary language, streamlining the rule.

         3772-3-02 (amendment), titled "Institutional investor suitability or qualification ." This rule provides the process by which an entity can be presumed to be suitable or qualified as an institutional investor pursuant to R.C. Chapter 3772 and the rules adopted thereunder. The process consists of submitting documentation sufficient to establish quali?cations as an institutional investor, a completed certification form, and submission of any other records required by the Commission. The amendment to this rule removes a notification process the Commission is required to follow when a request is made for information marked by an

    10 W. Broad Street - 61h Floor - Columbus, OH 43215 (855) 800-0058 toll-free

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    PHN   p(l705 ??(30666)  d(662399)                                                                                                                                                                                                                                             pnnt date  10/14/2016 8:04 PM

    applicant as protected from disclosure. This same amendment was previously made to Ohio Adm. Code 3772-4-01. The purpose of deleting this provision is to remove a superfluous step in the public records process. The certification form, which is attached as an appendix to this rule is also being amended. The purpose of this amendment is to add a line in which the investor states which entity they are an investor in, allowing for a more efficient review process.

             3772-3-03 (amendment), titled "Duty to update information." This rule specifies the circumstances under which an investor must notify the Commission of a change in certain information, including changes in percentage of ownership, name changes, non-routine gaming agency investigations, and administrative actions taken by gaming agencies against the investor. The amendment to this rule streamlines rule language and clarifies that the duty extends to institutional investors of gaming-related vendors, as well as casino operators and management companies.

             3772-3-04 (amendment), titled "Rescission of designation as an institutional investor." This rule specifies under which circumstances the Commission's designation as an institutional investor may be rescinded. These circumstances are if the investor notifies the Commission or the Commission discovers that the investor intends to exercise influence over the affairs of the entity. The purpose of this rule is to ensure that institutional investors are not actually engaged in or participating in the conduct of casino gaming without the appropriate license issued under R.C. Chapter 3772. The amendment to this rule streamlines rule language and clarifies that the duty extends to institutional investors of gaming-related vendors, as well as casino operators and management companies.

             3772-3-05 (rescind), titled "Records retention requirements for a casino operator, management company, holding company, and gaming-related vendor licensee." This rule is being rescinded. The language of the rule is being moved to Ohio Adm. Code 3772-1-07 and 3772-10-05. The purpose of the amendment is to streamline the Administrative Code and to move the rule's language into Ohio Adm. Code Chapter 1 "General Provisions" from Chapter 3 "Institutional Investors and Records Retention." The rule itself will be reserved for future use.

             3772-3-06 (amendment), titled "Passive investor." This rule specifies that investors who do not meet the institutional investor threshold shall not exercise influence over the affairs of an entity. Investors who do so will no longer be considered passive investors. The purpose of this rule is to ensure that passive investors are not actually engaged in or participating in the conduct of casino gaming without a license issued under R.C. Chapter 3772. The amendment solely streamlines rule language.

             3772-5-01 (amendment), titled "Key employee license required." This rule lists the positions for which a key employee license is required. The amendment to this rule largely consists of the streamlining changes noted above, allowing for the deletion of "applicant or licensee" and "management company." Additionally, there are some minor changes to the list of employees required to obtain a key employee license. For example, the list is amended to clarify the already-ongoing practice of requiring marketing directors to obtain a key employee license.

    The purpose of this rule is to ensure that those people who have the power to exercise significant influence over entities engaged in casino gaming are suitable to do so, through the Commission's key employee licensure process.

             3772-5-02 (amendment), titled "Key employee license application, license period and provisional license." This rule describes the key employee licensure process and states that key employees can apply by submitting the application, paying the application fee, and providing the Commission with any other requested information. The rule also provides specifics as to when an entity engaged in casino gaming in Ohio may pay the application fee on behalf of the employee and specifies that the license expires after three years. The amendment to this rule largely consists of the streamlining and consistency changes noted above, including removing a notification process in dealing with public records requests, which was previously made to Ohio Adm. Code 3772-4-01 and to other rules in this batch. The rule also extends the time period in which a licensee must apply for a renewal to one- hundred-and-twenty days before expiration from ninety to allow the Commission enough time to obtain statutorily-required criminal record checks and appropriately review the application. The purpose of this rule is to ensure that those people who have the power to exercise significant influence over entities engaged in casino gaming are suitable to do so, through the Commission's key employee licensure process.

             3772-5-03 (amendment), titled "Key employee fees." This rule sets the key employee application fee at $2,000.00 and the license fee at $500.00. The rule further clarifies under what circumstances entities engaged in casino gaming may pay the fee on behalf of the employee. The amendment to this rule largely consists of the streamlining changes noted above, in addition to other small grammatical changes. The purpose of this rule is to set fees commensurate with the investigation and licensure costs that the Commission incurs during the licensing investigation.

             3772-5-04 (amendment), titled "Duty to update information." This rule sets out the information that a key employee must update the Commission about should that information change, including changes of contact information, bankruptcies, and criminal charges or convictions, among others. The amendment to this rule largely consists of the streamlining and consistency changes noted above. The amendment also clarifies that the licensee must update the Commission on criminal convictions and not just charges. This clarifies a current practice. The purpose of this rule is to ensure that the Commission's information remains current with respect to each licensee's suitability.

             3772-5-05 (amendment), titled "Affirmative license standards." This rule echoes many of the statutory requirements for licensure found in R.C. 3772.10, including the factors the Commission shall consider in making a licensure determination and the requirement that the applicant establish suitability by clear and convincing evidence. The amendment to this rule largely involves small housekeeping changes, in addition to extending the period over which the Commission must consider whether the individual has been a defendant in litigation from ten years to fifteen. The purpose of this rule is to ensure that those people who have the power to exercise significant influence over entities engaged in casino gaming are suitable to do so, through the Commission's key employee licensure process.

             3772-5-06 (amendment), titled "Key employee temporary credential." This rule specifies that key employees must always display their credential issued by the Commission. The rule further provides for how a key employee may obtain a temporary credential. The amendment removes a prohibition on back-of-house entry for unlicensed employees, as a recognition that not all employees with access to the back of house may be licensed. Further, the amendment requires that employees using temporary credentials must apply for a duplicate credential within three days of using the temporary credential. This amendment is in response to a practice the Commission noted, where certain employees would be issued a temporary credential and never reapply for a duplicate permanent credential. The purpose of this rule is to ensure that key employees are easily identifiable.

             3772-6-01 (amendment), titled "Gaming-related vendor license." This rule specifies who shall obtain a gaming-related vendor license, largely by echoing the definition found in R.C.

    3772.01. The amendment to this rule specifies that lessors of casino facilities are considered gaming-related vendors. The purpose of this rule is to ensure that those entities engaged in providing gaming-related goods or services are suitable to do so. This allows the Commission to pursue its constitutionally mandated mission of ensuring the integrity of casino gaming.

             3772-6-02 (amendment), titled "Gaming-related vendor license application, license period, and license renewal." This rule describes the gaming-related vendor licensure process and states that gaming-related vendors can apply by submitting the application, paying the application fee, and providing the Commission with any other requested information. The amendment to this rule largely consists of the streamlining and consistency changes noted above, including removing a notification process in dealing with public records requests, which was previously made to Ohio Adm. Code 3772-4-01 and to other rules in this batch. The rule also extends the time period in which a licensee must apply for a renewal to one- hundred-and-twenty days before expiration from ninety to allow the Commission enough time to obtain statutorily-required criminal records checks and appropriately review the application. The purpose of this rule is to ensure that those entities engaged in providing gaming-related goods or services are suitable to do so.

             3772-6-03 (amendment), titled "Gaming-related vendor fees." This rule sets the gaming- related vendor application fee at $10,000.00 and the license fee at $15,000.00. The amendment to this rule consists of solely small housekeeping changes. The purpose of this rule is to set fees commensurate with the investigation and licensure costs that the Commission incurs during the licensing investigation.

             3772-6-04 (amendment), titled "Duty to update information." This rule sets out the information that a gaming-related vendor must update the Commission about should that information change, including changes of identifying information, bankruptcies, and criminal charges or convictions, among others. The amendment to this rule largely consists of the streamlining and consistency changes noted above. The amendment also clarifies that the licensee must update the Commission on criminal convictions and not just charges. This clarifies a current practice. The amendment also eliminates a superfluous provision, stating that the Commission shall comply with the public records law. The purpose of this rule is to

    ensure that the Commission remains up to date on any information that may affect the vendor's suitability.

             3772-6-05 (amendment), titled "Affirmative license standards." This rule echoes many of the statutory requirements for licensure found in R.C. 3772.10, including the factors the Commission shall consider in making a licensure determination and the requirement that the applicant establish suitability by clear and convincing evidence. The amendment to this rule largely involves small housekeeping changes. The purpose of this rule is to ensure that those engaged as gaming-related vendors are suitable to do so, through the Commission's licensure process.

             3772-8-01 (amendment), titled "Casino gaming employee license required." This rule specifies those employees who must obtain a license to engage in the conduct of casino gaming. The amendment to this rule largely eliminates redundancies in positions and matches language used elsewhere in the Administrative Code. The purpose of this rule is to ensure that those persons who are engaged in the conduct of casino gaming are suitable to do so.

             3772-8-02 (amendment), titled "Casino gaming employee license application, license period, and provisional license." This rule describes the casino gaming employee licensure process and states that casino gaming employees can apply by submitting the application, paying the application fee, and providing the Commission with any other requested information. The rule also provides for specifics as to when an entity engaged in casino gaming in Ohio may pay the application fee on behalf of the employee and specifies that the license expires after three years. The rule also extends the time period in which a licensee must apply for a renewal to one-hundred-and-twenty days before expiration from ninety to allow the Commission enough time to appropriately review the application. The purpose of this rule is to ensure that those persons who are engaged in the conduct of casino gaming are suitable to do so.

             3772-8-03 (amendment), titled "Casino gaming employee fees." This rule sets the casino gaming employee application fee at $250.00 and the licensure fee at $250.00 for initial and new applicants.  For renewal applicants, the application fee is $100.00 and the license fee is

    $50.00. The rule further clarifies under what circumstances entities engaged in casino gaming may pay the fee on behalf of the employee. The amendment to this rule largely consists of the streamlining changes noted above, in addition to other small grammatical changes. The purpose of this rule is to set fees commensurate with the investigation and licensure costs that the Commission incurs during the licensing investigation.

             3772-8-04 (amendment), titled "Duty to update information." This rule sets out the information that a casino gaming employee must update the Commission about should that information change, including changes of contact information, bankruptcies, and criminal charges or convictions, among others. The amendment to this rule largely consists of the streamlining and consistency changes noted above. The amendment also clarifies that the licensee must update the Commission on criminal convictions and not just charges. This clarifies a current practice. The purpose of this rule is to ensure that the Commission remains up to date on any information that may affect the employee's suitability.

             3772-8-05 (amendment), titled "Affirmative license standards." This rule echoes many of the statutory requirements for licensure found in R.C. 3772.10, including the factors the Commission shall consider in making a licensure determination and the requirement that the applicant establish suitability by clear and convincing evidence. The amendment to this rule largely involves small housekeeping changes, mostly changing the term "applicant" to "individual." The purpose of this rule is to ensure that those people who engage in casino gaming are suitable to do so, through the Commission's licensure process.

             3772-8-06 (amendment), titled "Casino gaming employee license temporary credential." This rule specifies that casino gaming employees must always display their credential issued by the Commission when on duty. The rule further provides for how an employee may obtain a temporary credential. The amendment removes a prohibition on back-of-house entry for unlicensed employees, as a recognition that not all employees with access to the back of house may be licensed. Further, the amendment requires that employees using temporary credentials must apply for a duplicate credential within three days of using the temporary credential. This amendment is in response to a practice the Commission noted, where certain employees would be issued a temporary credential and never reapply for a duplicate permanent credential. The purpose of this rule is to ensure that casino gaming employees are easily identifiable.

             3772-10-05 (amendment), titled "Forms, records, and documents." This rule is being amended to help accomplish the rescission of Ohio Adm. Code 3772-3-05, from which the language is largely adopted. Portions of this rule related to records retention have been moved to new rule Ohio Adm. Code 3772-1-07. This rule contains internal control requirements for the use and retention of the records required to be retained by Ohio Adm. Code 3772-1-07 and contains requirements related to the receipt, control, and issuance of prenumbered forms and the internal controls required for doing so. Finally, the rule also describes the forms and procedures necessary for each casino operator to maintain with respect to accounting for gaming and financial activities.  The purpose of this rule is to ensure that all casino operators have proper internal controls in place regarding record retention, the handling of prenumbered accounting forms, and which accounting procedures and forms are required at each casino facility.

             3772-12-01 (amendment), titled "Establishment of voluntary exclusion program and list." This rule implements the voluntary exclusion program and participant list required by R.C. 3772.03(D)(10). The rule further specifies that inclusion on the list does not prohibit an individual from entering a casino for employment purposes or working for a casino operator, so long as the individual provides certain information to the Commission prior to beginning employment. The purpose of this rule is to implement the voluntary exclusion program, while leaving open employment options for the participating individuals.  The only amendment was the removal of the term "management company," as described above.

    3772-12-02 (amendment), titled "Application for voluntary exclusion." This rule provides the process and guidelines an individual must follow when being added to or participating in the program. The rule also discusses the confidentiality and use of participating individuals' information, largely echoing R.C. 3772.03(D)(10), as well as the Commission's notification

    responsibilities to both participants and casino operators. The purpose of this rule is to give problem gamblers the ability to voluntarily exclude themselves, aiding in combatting compulsive and problem gambling in Ohio. The amendments include small housekeeping changes intended to clarify and streamline the rule and the application (attached as an appendix) and expanding the process by which the Commission will notify the individual of their placement on the list, which honors the individual's privacy in the program.

             3772-12-03 (amendment), titled "Responsibilities of voluntarily excluded individual." This rule outlines the ongoing obligations required of an individual while participating in the program and the possible punishments for violating these obligations. These obligations include refraining from entering a casino facility, updating the Commission on changes of personal information, and the forfeiture of all prior earned points and complimentaries. The purpose of this rule is to ensure that problem gamblers follow the rules of the program to combat compulsive and problem gambling. There is no substantive change to this rule. The only amendment is the correction of a typographical error, changing "a" to "an."

             3772-12-04 (amendment), titled "Responsibilities of casino operators." This rule outlines the responsibilities of a casino facility in regards to the voluntary exclusion program. This rule specifies that each casino operator must submit written internal controls to the Commission for compliance with the program. The rule amplifies many of the statutory requirements of casino operators found in R.C. 3772.03(D)(10). The purpose of this rule is to ensure that casino facilities help combat compulsive and problem gambling. The amendment to this rule mainly consists of streamlining changes, including clarifying and removing superfluous language. The amendment specifies that a casino facility must notify the Commission in writing when an excluded individual is found on their premises and provides added flexibility in the submission of voluntary exclusion internal controls.

             3772-12-06 (amendment), titled "Compulsive and problem gambling plan." This rule specifies that a casino facility must submit a plan for approval detailing how they will oversee compulsive and problem gambling and outlines specific criteria all plans must include. Casino operators are further required to submit any amendments to, updates on, and summaries of this plan to the Commission within specified time frames. This rule ensures that casino facilities are aiding the Commission in productively combatting compulsive and problem gambling and allows the Commission carry out its duty under R.C. 3772.03(D)(10) to manage a problem gambling program in the State of Ohio. The amendment to this rule largely consists of small housekeeping changes, as well as clarifying that casino facilities need not submit their compulsive and problem gambling plan with each renewal application, so long as a current plan is approved by the Commission.

             3772-13-01 (amendment), titled "Definitions." These rules, which are required by R.C. 3772.03(D)(11), are intended to protect Ohio patrons from deceptive, false, or misleading advertisements, as well as to ensure the integrity of casino gaming. This rule defines what types of notices and communications are considered "advertisements" within the chapter and further specifies that a "direct advertisement" is a notice or communication directed towards a certain individual. The amendment is a small housekeeping change to streamline the rule's

    language and to ensure that the definitions apply to all Commission rules and not just Ohio Adm. Code 3772-13.

             3772-13-02 (amendment), titled "Advertising; promotion of responsible gaming." Presently, this rule outlines the guidelines casino operators must follow when advertising to Ohio patrons. The rule details prohibited methods and types of advertising, requires all advertisements to showcase the state problem gambling hotline number, and mandates that every direct advertisement must contain an explanation of how a patron may remove themselves from being targeted. The purpose of this rule is to ensure that casino advertisements are truthful and that critical problem gambling resources are readily accessible to the general public. The amendment largely consists of the deletion of unnecessary language to streamline and clarify language. The rule also extends the time period for which a casino operator must retain records of all advertisements from two years to five years to mirror the general required retention period for casino operators.

             3772-23-01 (amendment), titled "Establishment of involuntary exclusion list." The rule serves to implement the involuntary exclusion list envisioned in R.C. 3772.031. The rule further clarifies that the list does not preclude a casino from lawfully ejecting an individual itself or seeking the addition of a person to the list by the Commission. This amendment removes the term "licensee" to streamline the rule's language. The purpose of the rule is "to maintain strict and effective regulation of casino gaming." R.C. 3772.031.

             3772-23-02 (amendment), titled "Requirements of involuntary exclusion list." This rule serves to establish the information on the involuntary exclusion list, as well as the maintenance of the list. The rule further echoes the requirement in R.C. 3772.031 that the list be published on the Commission's website. The amendment removes the term "licensee" to streamline rule language. The purpose of the rule is to ensure the list's uniformity and accuracy, while providing access to the public, allowing for the strict and effective regulation of casino gaming.

             3772-23-06 (amendment), titled "Casino operator duties." This rule serves to establish the responsibilities of casino operators with regards to the involuntary exclusion list. The amendments specify that casino operators are to submit their internal control plans, on a schedule approved by the Commission, for the exclusion of individuals on the involuntary exclusion list. The amendments further clarify that the casino operator to notify the Commission's gaming agents in writing if an individual on the involuntary exclusion list attempts to enter or does enter a casino facility. The most frequent change is the removal of the terms "licensee or applicant" to streamline the rule language. The purpose of the rule is to ensure casino operators enforce the involuntary exclusion list, ensuring the integrity of casino gaming.

    All interested parties are invited to attend the hearing and present oral and/or written testimony. Written comments may also be submitted to the attention of Michelle Siba, Deputy General Counsel, Ohio Casino Control Commission, at 10 West Broad Street, 6 th  Floor, Columbus, Ohio 43215, or by electronic mail at michelle.siba@casinocontrol.ohio.gov.

Document Information

File Date:
2016-10-14
Five Year Review:
Yes
CSI:
Yes
Notice File:
3772_NO_304666_20161014_1045.pdf
Rule File:
3772-5-01_PH_OF_R_RU_20161014_1102.pdf
RSFA File:
3772-5-01_PH_OF_R_RS_20161014_1102.pdf
Related Chapter/Rule NO.: (1)
Ill. Adm. Code 3772-5-01. Key employee license required