§ 41-9.1-22 Standards for license, permitand registration issuance suitability qualifications. – (a) No applicant shall be eligible to obtain a license to conduct gamingoperations, a permit or registration unless the state lottery division: (i)has, with respect to a casino license applicant, received a filing made underoath that includes, without limitation, the information set forth below, and(ii) is satisfied that the applicant is suitable. In determining whether acasino license applicant is suitable, the state lottery division may consider,in addition to the information set forth below, whether the applicant has beenfound suitable and/or has been issued a license to conduct casino gaming inother jurisdictions.
(1) The identity of every person in accordance with theprovisions of this subdivision, who has or controls any ownership interest inthe applicant with respect to which the license is sought. If the disclosedentity is a trust, the application shall disclose the names, addresses, birthdates and social security number of all such beneficiaries, if a corporation,the names, addresses, birth dates, and social security numbers of all suchofficers and directors; if a partnership, the names, addresses, birth dates,and social security numbers of all such partners, both general and limited, ifa limited liability company, the names, addresses, birth dates, and socialsecurity numbers of all such members. The applicant shall also separatelydisclose in like manner any person or entity directly or indirectly owning orcontrolling a five percent (5%) or greater voting interest in such owners ofthe applicant. If any such person is an entity with one or more classes ofsecurities registered pursuant to the Securities Exchange Act of 1934, asamended, the applicant shall disclose names, addresses, birth dates and socialsecurity numbers of all officers and directors and provide public filings withthe U.S. Securities and Exchange Commission for the past year. If any suchpersons or entities are institutional investors or institutional lenders owningor controlling a five percent (5%) or greater voting interest in such owners ofthe applicant, the applicant shall not be required to provide detailedinformation on such institutional investors or institutional lenders other thantheir respective identities unless otherwise requested by the commission. Theapplicant will forward any request for additional information to theinstitutional investors or institutional lenders.
(2) An identification of any business, including, ifapplicable, the state of incorporation or registration, in which an applicantor any other person or entity identified in subdivision (a)(1) has an equityinterest of five percent (5%) or more. If an applicant is a corporation,partnership, or other business entity, the applicant shall identify any othercorporation, partnership, or other business entity in which it has an equityinterest of five percent (5%) or more; including, if applicable, the state ofincorporation or registration. An applicant can comply with this subdivision byfiling a copy of the applicant's registration with the securities exchangeboard if the registration contains the information required by this subsection.
(3) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have been indicted,charged, arrested, convicted, pleaded guilty or nolo contendere, forfeited bailconcerning, or has had expunged any criminal offense under the laws of anyjurisdiction, either felony or misdemeanor, not including traffic violations,regardless of whether the offense has been expunged, pardoned or reversed onappeal or otherwise, including the date, the name and location of the court,arresting agency and prosecuting agency, the case caption, the docket number,the offense, the disposition, and the location and length of incarceration.
(4) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have ever applied foror has been granted any gaming license or certificate issued by a licensingauthority within this state or any other jurisdiction that has been denied,restricted, suspended, revoked, or not renewed, and a statement describing thefacts and circumstances concerning the application, denial restriction,suspension, revocation or nonrenewal, including the licensing authority, thedate each action was taken, and the reason for each action.
(5) Such information, documentation and assurances as may berequired to establish by clear and convincing evidence:
a. the financial stability, integrity and responsibility ofthe applicant, including, but not limited to, bank references, financialstatements, tax returns and other reports filed with governmental agencies;
b. the adequacy of financial resources both as to thecompletion of the casino proposal and the operation of the casino; and
c. that the applicant has sufficient business ability andcasino experience as to establish the likelihood of creation and maintenance ofa successful, efficient and competitive casino operation.
(6) Such information, documentation and assurances toestablish to the satisfaction of the state lottery division the applicant'sgood character, honesty and integrity, and the applicant's suitabilityqualification pursuant to this section.
(7) A statement listing the names and titles of all RhodeIsland public officials or officers of any unit of government, and the spouses,parents, and children of those public officials or officers who, directly orindirectly, own any financial interest in, have any beneficial interest in, arethe creditors of or hold any debt instrument issued by, or hold or have anyinterest in any contractual or service relationship with an applicant. As usedin this subsection, the terms "public official" and "officer" do not include aperson who would have to be listed solely because of his or her state orfederal military service. This subsection shall not apply to public officialsor officers or the spouses, parents and children thereof, whose sole financialinterest amounts to less than a one percent (1%) ownership interest in apublicly traded company.
(8) The name and business telephone number of any attorney,counsel, lobbyist, agent, or any other person representing an applicant inmatters before the state lottery division.
(9) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has ever filed or had filed against it a civilor administrative action or proceeding in bankruptcy or has ever been involvedin any formal process to adjust, defer, suspend, or otherwise work out thepayment of any debt including the date of filing, the name and location of thecourt, the case caption, the docket number, and the disposition.
(10) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has filed, or been served with, a complaint orother notice filed with any public body, regarding the delinquency in thepayment of, or a dispute over the filings concerning the payment of any taxrequired under federal, state, or local law, including the amount, type of tax,the taxing agency, and the periods involved.
(11) Financial and other information in the manner and formprescribed by the commission.
(b) For purposes of this chapter, "suitable" means that theproposed casino licensee, or other applicant or permittee has demonstrated tothe state lottery division by clear and convincing evidence that he or she:
(1) Is a person of good character, honesty, and integrity oran entity whose reputation indicates it possesses honesty, integrity andsufficient knowledge of the gaming industry.
(2) Is a person whose prior activities, criminal record, ifany, reputation, habits, and associations do not pose a threat to the publicinterest of this state or to the effective regulation and control of gaming, orcreate or enhance the dangers of unsuitable, unfair, or illegal practices,methods, and activities in the conduct of gaming or the carrying on of thebusiness and financial arrangements incidental thereto.
(3) Is capable of and likely to conduct the activities forwhich the applicant or casino gaming operator is licensed or approved inaccordance with the provisions of this chapter and any rules of the statelottery division.
(c) For purposes of a casino licensee, the applicant shallalso demonstrate by clear and convincing evidence that:
(1) He or she or the entity has adequate business competenceand experience in the operation of gaming operations.
(2) The proposed financing of the conducting of gamingoperations is:
(i) Adequate for the nature of the proposed operation; and
(ii) From a suitable source, subject to provisions of §41-9.1-23 hereof.
(d) Information provided by the applicant shall be used as abasis for a thorough background investigation which the state lottery divisionshall conduct. A false or incomplete filing may be cause for denial of alicense. The state lottery division in its sole discretion may provide theapplicant a reasonable opportunity to correct any deficiency in the filing.
(e) Applicants shall consent, in writing, to being subject tothe inspections, searches, and seizures provided for in this chapter and todisclosure to the state lottery division and its agents of otherwiseconfidential records including tax records held by any federal, state, or localagency, or credit bureau or financial institution while applying for or holdinga license under this chapter.
(f) The state lottery division may contract for, at theexpense of the applicants, any technical or investigative services that itshall require to conduct such research and/or investigation as it deemsappropriate with respect to its evaluation of the filing. A nonrefundableapplication fee of fifty thousand dollars ($50,000) shall be paid at the timeof filing to defray the costs associated with such research and investigationconducted by the state lottery division. If the costs of the research andinvestigation exceed fifty thousand dollars ($50,000), the applicant shall paythe additional amount.
(g) All licensees, all permittees, and any other persons whohave been found suitable or approved by the state lottery division shallmaintain suitability throughout the term of the license, permit or approval. Inthe event of a current prosecution of an offense, the state lottery divisionshall have the discretion to defer a determination on a person's continuingsuitability pending the outcome of the proceedings, provided that if a decisionis deferred pending such outcome, the state lottery division, where applicable,may take such action as is necessary to protect the public trust, including thesuspension of any license, permit or registration.
(h) All holders of licenses, permits and registrations, andany other persons required to be found suitable, shall have a continuing dutyto inform the state lottery division of any possible violation of this chapterand of any rules adopted by the state lottery division. No person who soinforms the state lottery division or any law enforcement authority within thestate of a violation or possible violation shall be discriminated against bythe applicant, licensee, permittee, registrant or casino gaming operatorbecause of supplying such information, and shall be afforded the protection of§ 28-50-1 et al. "The Rhode Island Whistleblower's Protection Act", socalled.
(i) The state lottery division shall have the power to callforward for a finding of suitability any person that is affiliated with alicensee, permittee or registrant if necessary to protect the public interest.Subject to § 41-9.1-24, any person who has or controls directly orindirectly five percent (5%) or greater voting interest shall meet allsuitability requirements and qualifications pursuant to the provisions of thischapter, unless otherwise determined by the state lottery division.
(j) If the state lottery division finds that an individualowner or holder of a security of a licensee, permittee, or registrant, or of aholding or intermediary company of a licensee or permittee, or registrant, orany person or persons with an economic interest in a licensee, permittee, orregistrant, or a director, partner, officer, or managerial employee is notsuitable, and if as a result, the licensee, permittee, or registrant is nolonger qualified to continue as a licensee, permittee, or registrant, the statelottery division shall propose action necessary to protect the public interest,including the suspension of the license, permit or registration. The statelottery division may also issue under penalty of revocation or suspension of alicense, permit, or registration, impose a condition of disqualification namingthe person or persons and declaring that such person or persons may not:
(1) Receive dividends or interest on securities of a person,or a holding or intermediary company of a person, holding a license, permit, orother approval.
(2) Exercise directly, or through a trustee or nominee, aright conferred by securities of a person, or a holding or intermediary companyof a person, holding a license, permit, or other approval of the state lotterydivision issued pursuant to the provisions of this chapter.
(3) Receive remuneration or other economic benefit from anyperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to this chapter.
(4) Exercise significant influence over activities of aperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to the provisions of this chapter.
(5) Continue owning or holding a security of a person, or aholding or intermediary company of a person, holding a license, permit, orother approval of the state lottery division issued pursuant to the provisionsof this chapter or remain as a manager, officer, director, or partner of alicensee or permittee.
§ 41-9.1-22 Standards for license, permitand registration issuance suitability qualifications. – (a) No applicant shall be eligible to obtain a license to conduct gamingoperations, a permit or registration unless the state lottery division: (i)has, with respect to a casino license applicant, received a filing made underoath that includes, without limitation, the information set forth below, and(ii) is satisfied that the applicant is suitable. In determining whether acasino license applicant is suitable, the state lottery division may consider,in addition to the information set forth below, whether the applicant has beenfound suitable and/or has been issued a license to conduct casino gaming inother jurisdictions.
(1) The identity of every person in accordance with theprovisions of this subdivision, who has or controls any ownership interest inthe applicant with respect to which the license is sought. If the disclosedentity is a trust, the application shall disclose the names, addresses, birthdates and social security number of all such beneficiaries, if a corporation,the names, addresses, birth dates, and social security numbers of all suchofficers and directors; if a partnership, the names, addresses, birth dates,and social security numbers of all such partners, both general and limited, ifa limited liability company, the names, addresses, birth dates, and socialsecurity numbers of all such members. The applicant shall also separatelydisclose in like manner any person or entity directly or indirectly owning orcontrolling a five percent (5%) or greater voting interest in such owners ofthe applicant. If any such person is an entity with one or more classes ofsecurities registered pursuant to the Securities Exchange Act of 1934, asamended, the applicant shall disclose names, addresses, birth dates and socialsecurity numbers of all officers and directors and provide public filings withthe U.S. Securities and Exchange Commission for the past year. If any suchpersons or entities are institutional investors or institutional lenders owningor controlling a five percent (5%) or greater voting interest in such owners ofthe applicant, the applicant shall not be required to provide detailedinformation on such institutional investors or institutional lenders other thantheir respective identities unless otherwise requested by the commission. Theapplicant will forward any request for additional information to theinstitutional investors or institutional lenders.
(2) An identification of any business, including, ifapplicable, the state of incorporation or registration, in which an applicantor any other person or entity identified in subdivision (a)(1) has an equityinterest of five percent (5%) or more. If an applicant is a corporation,partnership, or other business entity, the applicant shall identify any othercorporation, partnership, or other business entity in which it has an equityinterest of five percent (5%) or more; including, if applicable, the state ofincorporation or registration. An applicant can comply with this subdivision byfiling a copy of the applicant's registration with the securities exchangeboard if the registration contains the information required by this subsection.
(3) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have been indicted,charged, arrested, convicted, pleaded guilty or nolo contendere, forfeited bailconcerning, or has had expunged any criminal offense under the laws of anyjurisdiction, either felony or misdemeanor, not including traffic violations,regardless of whether the offense has been expunged, pardoned or reversed onappeal or otherwise, including the date, the name and location of the court,arresting agency and prosecuting agency, the case caption, the docket number,the offense, the disposition, and the location and length of incarceration.
(4) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have ever applied foror has been granted any gaming license or certificate issued by a licensingauthority within this state or any other jurisdiction that has been denied,restricted, suspended, revoked, or not renewed, and a statement describing thefacts and circumstances concerning the application, denial restriction,suspension, revocation or nonrenewal, including the licensing authority, thedate each action was taken, and the reason for each action.
(5) Such information, documentation and assurances as may berequired to establish by clear and convincing evidence:
a. the financial stability, integrity and responsibility ofthe applicant, including, but not limited to, bank references, financialstatements, tax returns and other reports filed with governmental agencies;
b. the adequacy of financial resources both as to thecompletion of the casino proposal and the operation of the casino; and
c. that the applicant has sufficient business ability andcasino experience as to establish the likelihood of creation and maintenance ofa successful, efficient and competitive casino operation.
(6) Such information, documentation and assurances toestablish to the satisfaction of the state lottery division the applicant'sgood character, honesty and integrity, and the applicant's suitabilityqualification pursuant to this section.
(7) A statement listing the names and titles of all RhodeIsland public officials or officers of any unit of government, and the spouses,parents, and children of those public officials or officers who, directly orindirectly, own any financial interest in, have any beneficial interest in, arethe creditors of or hold any debt instrument issued by, or hold or have anyinterest in any contractual or service relationship with an applicant. As usedin this subsection, the terms "public official" and "officer" do not include aperson who would have to be listed solely because of his or her state orfederal military service. This subsection shall not apply to public officialsor officers or the spouses, parents and children thereof, whose sole financialinterest amounts to less than a one percent (1%) ownership interest in apublicly traded company.
(8) The name and business telephone number of any attorney,counsel, lobbyist, agent, or any other person representing an applicant inmatters before the state lottery division.
(9) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has ever filed or had filed against it a civilor administrative action or proceeding in bankruptcy or has ever been involvedin any formal process to adjust, defer, suspend, or otherwise work out thepayment of any debt including the date of filing, the name and location of thecourt, the case caption, the docket number, and the disposition.
(10) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has filed, or been served with, a complaint orother notice filed with any public body, regarding the delinquency in thepayment of, or a dispute over the filings concerning the payment of any taxrequired under federal, state, or local law, including the amount, type of tax,the taxing agency, and the periods involved.
(11) Financial and other information in the manner and formprescribed by the commission.
(b) For purposes of this chapter, "suitable" means that theproposed casino licensee, or other applicant or permittee has demonstrated tothe state lottery division by clear and convincing evidence that he or she:
(1) Is a person of good character, honesty, and integrity oran entity whose reputation indicates it possesses honesty, integrity andsufficient knowledge of the gaming industry.
(2) Is a person whose prior activities, criminal record, ifany, reputation, habits, and associations do not pose a threat to the publicinterest of this state or to the effective regulation and control of gaming, orcreate or enhance the dangers of unsuitable, unfair, or illegal practices,methods, and activities in the conduct of gaming or the carrying on of thebusiness and financial arrangements incidental thereto.
(3) Is capable of and likely to conduct the activities forwhich the applicant or casino gaming operator is licensed or approved inaccordance with the provisions of this chapter and any rules of the statelottery division.
(c) For purposes of a casino licensee, the applicant shallalso demonstrate by clear and convincing evidence that:
(1) He or she or the entity has adequate business competenceand experience in the operation of gaming operations.
(2) The proposed financing of the conducting of gamingoperations is:
(i) Adequate for the nature of the proposed operation; and
(ii) From a suitable source, subject to provisions of §41-9.1-23 hereof.
(d) Information provided by the applicant shall be used as abasis for a thorough background investigation which the state lottery divisionshall conduct. A false or incomplete filing may be cause for denial of alicense. The state lottery division in its sole discretion may provide theapplicant a reasonable opportunity to correct any deficiency in the filing.
(e) Applicants shall consent, in writing, to being subject tothe inspections, searches, and seizures provided for in this chapter and todisclosure to the state lottery division and its agents of otherwiseconfidential records including tax records held by any federal, state, or localagency, or credit bureau or financial institution while applying for or holdinga license under this chapter.
(f) The state lottery division may contract for, at theexpense of the applicants, any technical or investigative services that itshall require to conduct such research and/or investigation as it deemsappropriate with respect to its evaluation of the filing. A nonrefundableapplication fee of fifty thousand dollars ($50,000) shall be paid at the timeof filing to defray the costs associated with such research and investigationconducted by the state lottery division. If the costs of the research andinvestigation exceed fifty thousand dollars ($50,000), the applicant shall paythe additional amount.
(g) All licensees, all permittees, and any other persons whohave been found suitable or approved by the state lottery division shallmaintain suitability throughout the term of the license, permit or approval. Inthe event of a current prosecution of an offense, the state lottery divisionshall have the discretion to defer a determination on a person's continuingsuitability pending the outcome of the proceedings, provided that if a decisionis deferred pending such outcome, the state lottery division, where applicable,may take such action as is necessary to protect the public trust, including thesuspension of any license, permit or registration.
(h) All holders of licenses, permits and registrations, andany other persons required to be found suitable, shall have a continuing dutyto inform the state lottery division of any possible violation of this chapterand of any rules adopted by the state lottery division. No person who soinforms the state lottery division or any law enforcement authority within thestate of a violation or possible violation shall be discriminated against bythe applicant, licensee, permittee, registrant or casino gaming operatorbecause of supplying such information, and shall be afforded the protection of§ 28-50-1 et al. "The Rhode Island Whistleblower's Protection Act", socalled.
(i) The state lottery division shall have the power to callforward for a finding of suitability any person that is affiliated with alicensee, permittee or registrant if necessary to protect the public interest.Subject to § 41-9.1-24, any person who has or controls directly orindirectly five percent (5%) or greater voting interest shall meet allsuitability requirements and qualifications pursuant to the provisions of thischapter, unless otherwise determined by the state lottery division.
(j) If the state lottery division finds that an individualowner or holder of a security of a licensee, permittee, or registrant, or of aholding or intermediary company of a licensee or permittee, or registrant, orany person or persons with an economic interest in a licensee, permittee, orregistrant, or a director, partner, officer, or managerial employee is notsuitable, and if as a result, the licensee, permittee, or registrant is nolonger qualified to continue as a licensee, permittee, or registrant, the statelottery division shall propose action necessary to protect the public interest,including the suspension of the license, permit or registration. The statelottery division may also issue under penalty of revocation or suspension of alicense, permit, or registration, impose a condition of disqualification namingthe person or persons and declaring that such person or persons may not:
(1) Receive dividends or interest on securities of a person,or a holding or intermediary company of a person, holding a license, permit, orother approval.
(2) Exercise directly, or through a trustee or nominee, aright conferred by securities of a person, or a holding or intermediary companyof a person, holding a license, permit, or other approval of the state lotterydivision issued pursuant to the provisions of this chapter.
(3) Receive remuneration or other economic benefit from anyperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to this chapter.
(4) Exercise significant influence over activities of aperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to the provisions of this chapter.
(5) Continue owning or holding a security of a person, or aholding or intermediary company of a person, holding a license, permit, orother approval of the state lottery division issued pursuant to the provisionsof this chapter or remain as a manager, officer, director, or partner of alicensee or permittee.
§ 41-9.1-22 Standards for license, permitand registration issuance suitability qualifications. – (a) No applicant shall be eligible to obtain a license to conduct gamingoperations, a permit or registration unless the state lottery division: (i)has, with respect to a casino license applicant, received a filing made underoath that includes, without limitation, the information set forth below, and(ii) is satisfied that the applicant is suitable. In determining whether acasino license applicant is suitable, the state lottery division may consider,in addition to the information set forth below, whether the applicant has beenfound suitable and/or has been issued a license to conduct casino gaming inother jurisdictions.
(1) The identity of every person in accordance with theprovisions of this subdivision, who has or controls any ownership interest inthe applicant with respect to which the license is sought. If the disclosedentity is a trust, the application shall disclose the names, addresses, birthdates and social security number of all such beneficiaries, if a corporation,the names, addresses, birth dates, and social security numbers of all suchofficers and directors; if a partnership, the names, addresses, birth dates,and social security numbers of all such partners, both general and limited, ifa limited liability company, the names, addresses, birth dates, and socialsecurity numbers of all such members. The applicant shall also separatelydisclose in like manner any person or entity directly or indirectly owning orcontrolling a five percent (5%) or greater voting interest in such owners ofthe applicant. If any such person is an entity with one or more classes ofsecurities registered pursuant to the Securities Exchange Act of 1934, asamended, the applicant shall disclose names, addresses, birth dates and socialsecurity numbers of all officers and directors and provide public filings withthe U.S. Securities and Exchange Commission for the past year. If any suchpersons or entities are institutional investors or institutional lenders owningor controlling a five percent (5%) or greater voting interest in such owners ofthe applicant, the applicant shall not be required to provide detailedinformation on such institutional investors or institutional lenders other thantheir respective identities unless otherwise requested by the commission. Theapplicant will forward any request for additional information to theinstitutional investors or institutional lenders.
(2) An identification of any business, including, ifapplicable, the state of incorporation or registration, in which an applicantor any other person or entity identified in subdivision (a)(1) has an equityinterest of five percent (5%) or more. If an applicant is a corporation,partnership, or other business entity, the applicant shall identify any othercorporation, partnership, or other business entity in which it has an equityinterest of five percent (5%) or more; including, if applicable, the state ofincorporation or registration. An applicant can comply with this subdivision byfiling a copy of the applicant's registration with the securities exchangeboard if the registration contains the information required by this subsection.
(3) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have been indicted,charged, arrested, convicted, pleaded guilty or nolo contendere, forfeited bailconcerning, or has had expunged any criminal offense under the laws of anyjurisdiction, either felony or misdemeanor, not including traffic violations,regardless of whether the offense has been expunged, pardoned or reversed onappeal or otherwise, including the date, the name and location of the court,arresting agency and prosecuting agency, the case caption, the docket number,the offense, the disposition, and the location and length of incarceration.
(4) Whether an applicant or any other person or entityidentified in subdivision (a)(1) is known by applicant to have ever applied foror has been granted any gaming license or certificate issued by a licensingauthority within this state or any other jurisdiction that has been denied,restricted, suspended, revoked, or not renewed, and a statement describing thefacts and circumstances concerning the application, denial restriction,suspension, revocation or nonrenewal, including the licensing authority, thedate each action was taken, and the reason for each action.
(5) Such information, documentation and assurances as may berequired to establish by clear and convincing evidence:
a. the financial stability, integrity and responsibility ofthe applicant, including, but not limited to, bank references, financialstatements, tax returns and other reports filed with governmental agencies;
b. the adequacy of financial resources both as to thecompletion of the casino proposal and the operation of the casino; and
c. that the applicant has sufficient business ability andcasino experience as to establish the likelihood of creation and maintenance ofa successful, efficient and competitive casino operation.
(6) Such information, documentation and assurances toestablish to the satisfaction of the state lottery division the applicant'sgood character, honesty and integrity, and the applicant's suitabilityqualification pursuant to this section.
(7) A statement listing the names and titles of all RhodeIsland public officials or officers of any unit of government, and the spouses,parents, and children of those public officials or officers who, directly orindirectly, own any financial interest in, have any beneficial interest in, arethe creditors of or hold any debt instrument issued by, or hold or have anyinterest in any contractual or service relationship with an applicant. As usedin this subsection, the terms "public official" and "officer" do not include aperson who would have to be listed solely because of his or her state orfederal military service. This subsection shall not apply to public officialsor officers or the spouses, parents and children thereof, whose sole financialinterest amounts to less than a one percent (1%) ownership interest in apublicly traded company.
(8) The name and business telephone number of any attorney,counsel, lobbyist, agent, or any other person representing an applicant inmatters before the state lottery division.
(9) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has ever filed or had filed against it a civilor administrative action or proceeding in bankruptcy or has ever been involvedin any formal process to adjust, defer, suspend, or otherwise work out thepayment of any debt including the date of filing, the name and location of thecourt, the case caption, the docket number, and the disposition.
(10) Whether an applicant or any other person or entityidentified in subdivision (a)(1) has filed, or been served with, a complaint orother notice filed with any public body, regarding the delinquency in thepayment of, or a dispute over the filings concerning the payment of any taxrequired under federal, state, or local law, including the amount, type of tax,the taxing agency, and the periods involved.
(11) Financial and other information in the manner and formprescribed by the commission.
(b) For purposes of this chapter, "suitable" means that theproposed casino licensee, or other applicant or permittee has demonstrated tothe state lottery division by clear and convincing evidence that he or she:
(1) Is a person of good character, honesty, and integrity oran entity whose reputation indicates it possesses honesty, integrity andsufficient knowledge of the gaming industry.
(2) Is a person whose prior activities, criminal record, ifany, reputation, habits, and associations do not pose a threat to the publicinterest of this state or to the effective regulation and control of gaming, orcreate or enhance the dangers of unsuitable, unfair, or illegal practices,methods, and activities in the conduct of gaming or the carrying on of thebusiness and financial arrangements incidental thereto.
(3) Is capable of and likely to conduct the activities forwhich the applicant or casino gaming operator is licensed or approved inaccordance with the provisions of this chapter and any rules of the statelottery division.
(c) For purposes of a casino licensee, the applicant shallalso demonstrate by clear and convincing evidence that:
(1) He or she or the entity has adequate business competenceand experience in the operation of gaming operations.
(2) The proposed financing of the conducting of gamingoperations is:
(i) Adequate for the nature of the proposed operation; and
(ii) From a suitable source, subject to provisions of §41-9.1-23 hereof.
(d) Information provided by the applicant shall be used as abasis for a thorough background investigation which the state lottery divisionshall conduct. A false or incomplete filing may be cause for denial of alicense. The state lottery division in its sole discretion may provide theapplicant a reasonable opportunity to correct any deficiency in the filing.
(e) Applicants shall consent, in writing, to being subject tothe inspections, searches, and seizures provided for in this chapter and todisclosure to the state lottery division and its agents of otherwiseconfidential records including tax records held by any federal, state, or localagency, or credit bureau or financial institution while applying for or holdinga license under this chapter.
(f) The state lottery division may contract for, at theexpense of the applicants, any technical or investigative services that itshall require to conduct such research and/or investigation as it deemsappropriate with respect to its evaluation of the filing. A nonrefundableapplication fee of fifty thousand dollars ($50,000) shall be paid at the timeof filing to defray the costs associated with such research and investigationconducted by the state lottery division. If the costs of the research andinvestigation exceed fifty thousand dollars ($50,000), the applicant shall paythe additional amount.
(g) All licensees, all permittees, and any other persons whohave been found suitable or approved by the state lottery division shallmaintain suitability throughout the term of the license, permit or approval. Inthe event of a current prosecution of an offense, the state lottery divisionshall have the discretion to defer a determination on a person's continuingsuitability pending the outcome of the proceedings, provided that if a decisionis deferred pending such outcome, the state lottery division, where applicable,may take such action as is necessary to protect the public trust, including thesuspension of any license, permit or registration.
(h) All holders of licenses, permits and registrations, andany other persons required to be found suitable, shall have a continuing dutyto inform the state lottery division of any possible violation of this chapterand of any rules adopted by the state lottery division. No person who soinforms the state lottery division or any law enforcement authority within thestate of a violation or possible violation shall be discriminated against bythe applicant, licensee, permittee, registrant or casino gaming operatorbecause of supplying such information, and shall be afforded the protection of§ 28-50-1 et al. "The Rhode Island Whistleblower's Protection Act", socalled.
(i) The state lottery division shall have the power to callforward for a finding of suitability any person that is affiliated with alicensee, permittee or registrant if necessary to protect the public interest.Subject to § 41-9.1-24, any person who has or controls directly orindirectly five percent (5%) or greater voting interest shall meet allsuitability requirements and qualifications pursuant to the provisions of thischapter, unless otherwise determined by the state lottery division.
(j) If the state lottery division finds that an individualowner or holder of a security of a licensee, permittee, or registrant, or of aholding or intermediary company of a licensee or permittee, or registrant, orany person or persons with an economic interest in a licensee, permittee, orregistrant, or a director, partner, officer, or managerial employee is notsuitable, and if as a result, the licensee, permittee, or registrant is nolonger qualified to continue as a licensee, permittee, or registrant, the statelottery division shall propose action necessary to protect the public interest,including the suspension of the license, permit or registration. The statelottery division may also issue under penalty of revocation or suspension of alicense, permit, or registration, impose a condition of disqualification namingthe person or persons and declaring that such person or persons may not:
(1) Receive dividends or interest on securities of a person,or a holding or intermediary company of a person, holding a license, permit, orother approval.
(2) Exercise directly, or through a trustee or nominee, aright conferred by securities of a person, or a holding or intermediary companyof a person, holding a license, permit, or other approval of the state lotterydivision issued pursuant to the provisions of this chapter.
(3) Receive remuneration or other economic benefit from anyperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to this chapter.
(4) Exercise significant influence over activities of aperson, or a holding or intermediary company of a person, holding a license,permit, or other approval issued pursuant to the provisions of this chapter.
(5) Continue owning or holding a security of a person, or aholding or intermediary company of a person, holding a license, permit, orother approval of the state lottery division issued pursuant to the provisionsof this chapter or remain as a manager, officer, director, or partner of alicensee or permittee.
