Resolution No. 1997-07 (Adopted 1/23/97) (RESCINDED on 09/08/09 by Resolution No. 2009-01 and 01/22/98 by Board No. 1998-01) Interim Code of Ethics

RESOLUTION NO. 1997-07 (Adopted 1/23/97... Rescinded 1/22/98 by Resolution #1998-01)

 

A Board Resolution And Order Establishing An Interim Code Of Ethics To Govern And Guide The Conduct Of Members, Employees, and Agents Of The Michigan Gaming Control Board, Licensees and Applicants For Licenses Under The Michigan Gaming Control and Revenue Act And Their Affiliates And Representatives.

 

WHEREAS, the Michigan Gaming Control Board ("the Board") has the power and duty under Section 4(b) of the Michigan Gaming Control and Revenue Act ("the Act") to implement, enforce and supervise administration of the Act; and,

 

WHEREAS, the Board has determined that it is reasonable, necessary and appropriate to establish a comprehensive interim code of ethics to govern and guide the conduct of members, employees and agents of the Board as well as licensees and applicants for licenses under the Act and their affiliates and representatives in order to promote and safeguard public confidence in the integrity of the licensing and regulation of casino gaming activity in Michigan under the Act and ensure that members, employees and agents of the Board maintain high standards of honesty, integrity and impartiality and, along with licensees and license applicants, and their affiliates and representatives, conduct themselves in a manner that will enhance public confidence and respect for the integrity of the Board and its work under the Act; NOW THEREFORE,

 

IT IS HEREBY RESOLVED AND ORDERED THAT THE FOLLOWING INTERIM CODE OF ETHICS SHALL BE AND IS ADOPTED:

 

INTERIM CODE OF ETHICS

 

SECTION 1. SCOPE

 

This Code of Ethics applies to members, employees and agents of the Board and their children, spouse and parents, and where specified, licensees and applicants for licenses under the Act, their affiliates, and persons representing applicants or licensees before the Board.

 

SECTION 2. DEFINITIONS

 

As used in the Code of Ethics:

 

(1) "Affiliate" means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, or is in partnership or joint venture relationship with, or is a co-shareholder of a corporation or a co-member of a liability company with a licensee or applicant for a license under the Act.
 

(2) "Agent" means any person who is employed by any agency of the state, other than the Board, and who is assigned to perform full-time services on behalf of, or for the benefit of, the Board regardless of the title or position held by that person.
 

(3) "Compensation" means any money, thing of value, or financial benefit conferred on or received by a person in return for services rendered, or to be rendered, whether by that person or another.
 

(4) "Conflict of interest" means a situation in which the private interest of a member, employee or agent of the Board, usually of a financial nature, may influence the judgment of the member, employee or agent in the performance of his/her public duty under the Act and rules of the Board. A conflict of interest includes, but is not limited to, the following:
 

(A) Any conduct that would lead a reasonable person, knowing all of the circumstances, to conclude that the member, employee or agent of the Board is biased.
 

(B) Acceptance of any form of compensation other than from the Board for any services rendered as part of the official duties of the member, employee or agent for the Board.

(C) Participation in any business being transacted with or before the Board in which the member, employee or agent of the Board or his/her spouse or child has a financial interest.
 

(D) Use of the position, title, or any related authority of the member, employee or agent of the Board in a manner designed for personal gain or benefit.
 

(E) Demonstration, through work or action in the performance of the official duties of the member, employee or agent of the Board, of any preferential attitude or treatment of any person.
 

(5) "Disciplinary action" means action by the Board for violations of this code, and may include denial, suspension or revocation of license; expulsion and exclusion from licensed casino gaming premises; assessment of a fine; suspension or termination of employment or agency; removal from the Board; or reprimand.
 

(6) "Ex parte communication" means any communication, direct or indirect, regarding an issue the Board has or may have before it other than communication that takes place during a meeting or hearing conducted under the Act.
 

(7) "Financial interest or financially interested" means any interest in investments, awarding of contracts, grants, loans, purchases, leases, sales, or similar matters under consideration or consummated by the Board. A member, employee or agent of the Board will be deemed to have a financial interest in a matter under consideration by reason of one (1) of the following:
 

(A) He/she owns one percent (1%) or more of any class of outstanding securities which are issued by a party to the matter under consideration or consummated by the Board and the securities are listed on a national securities exchange or actively traded in an over-the-counter market.
 

(B) He/she is employed by that person.
 

(8) "Gambling game" means any game played with cards, dice, equipment or machine (including any mechanical, electromechanical or electronic device which shall include computers and cashless wagering systems) for money, or credit or any representative of value, including, but not limited to, faro, monte, roulette, keno, bingo, fan tan, twenty one, blackjack, seven and a half, klondike, craps, poker, chuck a luck, Chinese chuck a luck (dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or percentage game or any other game or gambling device approved by the Board, or other controlling jurisdiction.
 

(9) "Member" means a Board member appointed to the Board under the Act.
 

(10) "Person" means a natural person, corporation, partnership, association, trust, firm, or other legal entity.

SECTION 3. DISCLOSURE FORMS
 

(a) Board Member Disclosure Form
 

(1) By January 31 of each year, each member shall prepare and file with the office of the Board, a Board disclosure form that does the following:
 

(A) Affirms that the member or the member's spouse, parent, or child is not:
 

(i) a member of the board of directors of;
 

(ii) is not financially interested in; or
 

(iii) is not employed by;

a licensee or applicant for a license under the Act and jurisdiction of the Board and has not been issued or made application for any such license.
 

(B) Affirms the member continues to meet any other criteria for Board membership under the Act, the rules of the Board, and the Governor's Executive Order 1996-9.
 

(C) Discloses any legal or beneficial interests in any real property, that is or that may be directly or indirectly involved with gaming or gaming operations authorized by the Act.
 

(D) Discloses any other information as may be required to ensure that the integrity of the Board and its work is maintained.
 

(2) The member disclosure form shall be a form prescribed by the Board.
 

(3) The member disclosure form shall be under oath and affirmed by the member under the penalties of perjury.
 

(b) Board Employees Disclosure Form
 

(1) By January 31 of each year, each employee of the Board shall prepare and file with the office of the Board, an employee disclosure form that does the following:
 

(A) Affirms the absence of financial interests prohibited by the Act and this code.
 

(B) Discloses any legal or beneficial interests in any real property, that is or that may be directly or indirectly involved with gaming or gaming operations authorized by the Act.
 

(C) Discloses whether the employee or the employee's spouse, parent, or child is financially interested in or employed by a supplier licensee or an applicant for a supplier's license under the Act.
 

(D) Discloses such other matters as may be required to ensure that the integrity of the Board and its work is maintained.
 

(2) The employee disclosure form shall be prescribed by the Board.
 

(3) The employee disclosure form shall be under oath and affirmed by the employee under the penalties of perjury.
 

(c) Board Agent Disclosure Form
 

Each agent shall prepare and file with the executive director, at such times as the executive director may require, the employee disclosure form prescribed by the Board. The disclosure form shall be under oath and affirmed by the agent under the penalties of perjury
 

SECTION 4. NOTICE OF CHANGE IN STATUS OR CIRCUMSTANCES
 

(a) A member, employee or agent of the Board who becomes aware that the member, employee, or agent of the Board or his/her spouse, parent or child is:
 

(1) a member of the board of directors of;
 

(2) financially interested in; or
 

(3) employed by;
 

a licensee or an applicant for a license under the Act or been issued or made application for any such license, shall immediately provide detailed written notice thereof to the executive director.
 

(b) A member, employee, or agent of the Board who has been convicted of, or has been charged with, a misdemeanor involving gambling, dishonesty, theft or fraud, or a felony under Michigan law, the laws of any other state, or the laws of the United States, or any other jurisdiction shall immediately provide detailed written notice thereof to the executive director.
 

(c) Any member, employee or agent of the Board who is negotiating for, or acquires by any means, any interest in any person or entity, which holds or is an applicant for any license issued by the Board, or any person or entity affiliated therewith, shall immediately provide written notice of the details of such an interest to the executive director. Such member, employee or agent of the Board shall not take any action on behalf of the Board with respect to that person or entity.
 

SECTION 5. DISCUSSIONS OF EMPLOYMENT
 

A member, employee or agent of the Board may not enter into any negotiations for employment with any person or entity or affiliate thereof that holds or is an applicant for any license issued by the Board, and shall immediately provide written notice of the details of any such negotiations or discussions to the executive director. Such a member, employee or agent of the Board shall not take any action on behalf of the Board with respect to that person or entity.
 

SECTION 6. INVITATION TO DISCUSS EMPLOYMENT
 

Any member, employee or agent of the Board who receives any invitation, written or oral, to initiate any discussion concerning employment or the possibilities thereof with any person or entity, or affiliate thereof, that holds or is an applicant for any license issued by the Board, shall immediately report such fact to the executive director. Such a member, employee or agent of the Board shall not take action on behalf of the Board with respect to the person or entity.
 

SECTION 7. RESTRICTIONS ON DISCUSSIONS OF EMPLOYMENT
 

No licensee or applicant for a license under the Act shall knowingly initiate any negotiation for discussion of employment with a member, employee or agent of the Board. A licensee or applicant who knowingly or who inadvertently initiates such negotiations or discussions shall immediately provide written notice of the details of initiating such negotiations or discussions to the executive director as soon as he/she becomes aware that such negotiations or discussions have been initiated with a member, employee, or agent of the Board.
 

SECTION 8. CONFIDENTIALITY
 

A member, employee or agent of the Board, or former member, employee or agent of the Board shall not disseminate or otherwise disclose any material or information in the possession of the Board that the Board treats as confidential unless specifically authorized to do so by the executive director or the Board.
 

SECTION 9. RESTRICTIONS ON GIFTS
 

No member, employee or agent of the Board may accept any gift, gratuity, compensation, travel, lodging, or anything of value, directly or indirectly, from any licensee or any applicant for any license under the Act or affiliate or representative thereof, unless the acceptance conforms to written policy or directive that may hereafter be issued by the executive director or the Board. Any member, employee or agent of the Board who is offered or receives any gift, gratuity, compensation, travel, lodging, or anything of value directly or indirectly for any licensee or any applicant for license under the Act or affiliate or representative thereof shall immediately provide written notification of the details thereof to the executive director.
 

SECTION 10. RESTRICTIONS ON GIFT GIVING
 

No licensee or applicant for any license under the Act, or affiliate or representative thereof, may, directly or indirectly, give or offer to give any gift, gratuity, compensation, travel, lodging, or anything of value to any member, employee, or agent of the Board which the member, employee or agent of the Board is prohibited from accepting under Section 9 of this code.
 

SECTION 11. CONFLICT OF INTEREST
 

(a) A member, employee or agent of the Board shall not engage in any conduct that constitutes a conflict of interest.
 

(b) A member, employee, or agent of the Board shall immediately advise the executive director in writing of the details of any incident or circumstances that would present the existence of a conflict of interest with respect to the performance of the official Board-related work or duty of the member, employee, or agent of the Board
 

SECTION 12. ATTEMPTED BRIBERY
 

A member, employee, or agent of the Board who is approached and offered a bribe in violation of the Michigan Penal Code (MCL 750.117 and MCL 750.125) or the Act shall immediately provide written notification of the details of the incident to the executive director.
 

SECTION 13. POLITICAL ACTIVITY
 

Members, employees, or agents of the Board shall not engage in political activity or politically-related activity during the time they are performing official duties of the Board or engage in political activity or politically-related activity at any time that would interfere with their official duties for the Board. Prohibited political activity under this Section includes making or soliciting political contributions.
 

SECTION 14. FACT WITNESSES
 

A former member, employee, or agent of the Board may appear before the Board as a fact witness about matters or actions handled by the member, employee or agent during his/her tenure as a member, employee, or agent of the Board. The member, employee, or agent of the Board shall not receive compensation for such an appearance other than a standard witness fee and reimbursement for travel expenses as established by statute or rule.
 

SECTION 15. EX PARTE CONTACT
 

No licensee or applicant for any license under the Act, nor any affiliate or representative thereof, shall engage in ex parte communications with a member of the Board. A member of the Board shall not engage in any ex parte communications with a licensee or an applicant for a license under the Act, or with any affiliate or representative thereof.
 

SECTION 16. NOTICE OF EX PARTE CONTACT
 

Any Board member, or licensee or applicant for any license under the Act, or affiliate or representative thereof, who receives any communication in violation of Section 15 of this code, or who is aware of an attempted communication in violation of Section 15 of this code, shall immediately report details of the communication or attempted communication in writing to the executive director.
 

SECTION 17. INVESTIGATION OF EX PARTE CONTACTS
 

Any member of the Board who receives any communication which attempts to influence that member's official action shall disclose the source and content of the communication to the executive director. The executive director may investigate or initiate an investigation of the matter with the assistance of the Attorney General and State Police to determine if the communication violates Section 15 and/or Section 16 of this code or the Act or other state law. The disclosure under this section and the investigation shall remain confidential. Following an investigation, the executive director shall advise the governor or the Board or both, of the results of the investigation and may recommend such action as the executive director considers appropriate.
 

SECTION 18. OUTSIDE EMPLOYMENT
 

(a) A new employee or agent of the Board shall obtain written permission from the executive director before continuing outside employment held at the time the employee begins to work for the Board.
 

(b) An employee or agent of the Board shall obtain written permission from the executive director before accepting any outside employment.

 

(c) Permission shall be denied (or permission previously granted will be revoked) if the nature of the work is considered to or does create a possible conflict of interest or otherwise interferes with the duties of the employee or agent for the Board.
 

(d) An employee or agent of the Board granted permission for outside employment shall not conduct any business or perform any activities, including solicitation, related to outside employment on premises used by the Board or during the employee's working hours for the Board
 

(e) As used in this section, "outside employment" includes, but is not limited to, the following:
 

(1) Operation of a proprietorship.
 

(2) Participation in a partnership or group business enterprise.
 

(3) Performance as a director or corporate officer of any for-profit corporation or banking or credit institution.
 

SECTION 19. POST EMPLOYMENT RESTRICTIONS
 

(a) Former members, employees or agents of the Board shall not for a period of two years after termination of their Board appointment, employment or agency engage in any employment or contractual relations with, or have any financial interest in, any licensee or applicant for a license under the Act, or any affiliate thereof.
 

(b) Former members, employees or agents of the Board may not, without consent of the Board:
 

(1) Appear before the Board on any matter before the Board or an administrative law judge appointed by the Board on behalf of a licensee or an applicant for any license under the Act; or (2) Engage in any discussion with any Board employee for and on behalf of any specific applicant or licensee regarding a matter under investigation by or pending before the Board; for a period of two years following termination of their Board appointment, employment or agency. Consent may be granted for such former members, employees or agents to appear before the Board on behalf of a licensee or applicant for a license under the Act, or engage in discussion with a Board employee regarding a licensee or applicant, if the former member, employee or agent was not involved in any way with the issues before the Board or to be discussed, during their last year of tenure, employment or agency with the Board.
SECTION 20. POST EMPLOYMENT RESTRICTIONS ON APPLYING FOR LICENSES

 

In addition to the post employment restrictions set forth in Section 19, a former member, employee or agent of the Board may not apply for or have any financial or beneficial interest in a license under the Act for a period of two years after termination of their Board appointment, employment or agency.
 

SECTION 21. REPORTS BY EXECUTIVE DIRECTOR
 

(a) Whenever the executive director, as an employee of the Board, is required to file disclosure forms or report in writing the details of any incident or circumstance pursuant to Sections 3 (b), 4, 5, 6, 9, 11 (b), 12, and 22(c) of this code, he or she shall make such filing(s) or written report(s) to the chairperson of the Board.
 

(b) The executive director shall report any action he or she has taken or contemplates taking under this code with respect to an employee or agent or former employee or former agent to the Board at the next meeting of the Board. The Board may direct the executive director to take additional or different action.
 

SECTION 22. RESTRICTIONS ON GAMBLING
 

(a) Except as provided in subsection (b) of this section, no member, employee or agent of the Board may participate in or wager on any gambling game conducted by any licensee or applicant for a license under the Act or any affiliate thereof in Michigan or other controlling gaming jurisdiction.
 

(b) A member, employee or agent of the Board may participate in and wager on a gambling game conducted by a licensee under the Act to the extent authorized by the executive director or Board as part of the person's surveillance, security or other official duties for the Board.
 

(c) A member, employee or agent of the Board shall advise the executive director at least 24 hours in advance if he or she plans to be present in a casino in Michigan or other gaming jurisdiction operated by a licensee or applicant for a license under the Act, or affiliate thereof, outside the scope of his or her official duties for the Board.
 

SECTION 23. CONSEQUENCES OF VIOLATION OF THIS CODE OF CONDUCT
 

(a) Violation of this code of ethics by a licensee or applicant for a license under this Act, or affiliate or representative thereof, may result in denial of the application of licensure and/or revocation or suspension of license or other disciplinary action by the Board against the offending applicant or licensee and/or their offending affiliate(s) or representative(s).
 

(b) Violation of this code of ethics by a member of the Board may result in disqualification or constitute other cause for removal from the Board or other disciplinary action by the Board against the offending member.
 

(c) Violation of this code of ethics by an employee or agent of the Board may, except as provided in subsections (i) (ii) and (iii), be waived if the Board determines that the conduct involved does not violate the purpose of this code, or result in disciplinary action, including termination of employment; however,
 

(i) if, after being offered employment or beginning employment with the Board, the employee intentionally acquires a financial interest in a licensee or applicant for a license under the Act, or affiliate or representative thereof, employment with the Board shall be terminated; or
 

(ii) if a financial interest in a licensee or an applicant for a license under the Act, or affiliate or representative thereof, is acquired by an employee that has been offered employment with the Board, an employee of the Board, or the employee's spouse, parent, or child, through no intentional action of the employee, then the individual shall have up to thirty (30) days to divest or terminate the financial interest. Employment may be terminated if the interest has not been divested after thirty (30) days.
 

(iii) employment shall be terminated if the employee is a spouse, parent, or child of a Board member.
 

(d) violation of this code does not create a private cause of action in favor of any person.