(a) Definition. In this section, "control" means actual working control in whatever manner exercised, including majority stock ownership.
(b) Consent of Director required. A license may not be sold, transferred, leased, assigned, or disposed of by forced or voluntary sale, merger, consolidation, receivership, or any other means without the prior written consent of the Director, and then only under such conditions as the Director may establish. Every transfer of control by the licensee shall subject the license to revocation unless the Director consents in writing.
(c) Notification; presumptions. A licensee shall promptly notify the Director in writing of any proposed transfer of control of the licensee. A presumption that a transfer of control has occurred arises on the transfer by any person of 10% or more of the beneficial interest of the licensee, whether the transfer takes place through single or multiple transactions. A presumption that a transfer of control has occurred also arises on the acquisition by any person of 10% or more of the beneficial ownership interest of the licensee, whether through single or multiple transactions.
(d) Qualifications of proposed transferee. For the purpose of determining whether the Director should consent to transfer of control, the Director may inquire into the qualifications of the proposed transferee, and the licensee shall assist the Director in the inquiry. In seeking the Director's consent to any change in ownership or control, the proposed transferee shall demonstrate to the Director that the proposed transferee has the financial and technical capability to enable it to operate the commercial bingo games and will employ internal management and financial controls sufficient to discourage employee dishonesty and maintain the integrity of the bingo games. The proposed transferee shall provide to the Director the personal and financial information for owners and managerial employees of the proposed transferee required under § 11-2-212; disclosure of stock ownership by a corporate proposed transferee as required under § 11-2-213; a financial statement for the proposed transferee audited by an independent certified public accountant; a detailed description of the proposed sources and methods of financing the commercial bingo operation; the organizational structure of the proposed transferee and the internal management and financial controls proposed by the proposed transferee to discourage employee dishonesty and to maintain the integrity of the bingo games; and the information required by subsection (e).The Director may not consent to a change in ownership or control unless the owners and managerial employees of the proposed transferee meet the standards set forth in § 11-2-212 and have paid all taxes as required by § 11-2-103.
(e) Information. In addition to other information required by this section, a proposed transferee shall disclose whether the proposed transferee, any owner, director, or officer of the proposed transferee, any employee or agent of the proposed transferee, or any person controlling the proposed transferee, any owner, director, or officer of the proposed transferee, or any employee or agent of the proposed transferee has:
(1) ever been convicted or held liable for acts involving moral turpitude including any violation of federal, state, or local law or regulation, or is currently under an indictment, investigation, or complaint charging such acts;
(2) ever had a judgment in an action for fraud, deceit, or misrepresentation entered against the proposed transferee by any court of competent jurisdiction;
(3) any pending legal claim, lawsuit, or administrative proceeding arising out of or involving the operation of a gaming enterprise; or
(4) ever had a license or permit to operate a gaming enterprise denied, suspended, or revoked.
(f) Costs and appeal to arbitration. On approval or disapproval of a change in ownership or control, the new licensee and any successor licensee shall be jointly and severally liable for the costs reasonably incurred by the County in reviewing the proposed change in ownership or control, including County personnel costs calculated in accordance with rates established by the County Controller. The licensee may appeal the calculation of these costs to arbitration under § 11-2-228.
(1985 Code, Art. 16, §§ 2-307, 2-309) (Bill No. 96-91; Bill No. 4-00; Bill No. 9-05)