La. Admin. Code tit. 42 § III-2108

Current through Register Vol. 50, No. 9, September 20, 2024

Section III-2108 - Non-Gaming Suppliers

A. A non-gaming supplier shall not apply for a non-gaming supplier permit unless it reasonably foresees supplying goods or services and/or receiving payment for goods or services from a licensee or casino operator for an amount equal to or greater than five hundred thousand dollars per calendar year. Any non-gaming supplier, regardless of whether having been permitted or not and regardless of the dollar amount of goods or services provided to a licensee or casino operator, may be required by the board or division to apply to the division for a finding of suitability.

B. A non-gaming supplier shall be prohibited from supplying goods or services to, and/or receive payment for goods or services from, a licensee or casino operator of an amount equal to or greater than five hundred thousand dollars during any calendar year, unless such non-gaming supplier holds a valid non-gaming supplier permit, an exemption pursuant to the provisions of Subsection C of this Section, or a waiver pursuant to the provisions of Subsection E of this Section.

C. The following persons shall be exempt from obtaining a non-gaming supplier permit pursuant to this Section:

1. nonprofit charitable organizations and educational institutions which receive funds from the licensee or casino operator including educational institutions that receive tuition reimbursement on behalf of employees of a licensee or casino operator;

2. entities which provide one or more of the following services and which are the sole source provider of such service:

a. water;

b. sewage;

c. electricity;

d. natural gas; and

e. local telephone services;

3. regulated insurance companies providing insurance to a licensee, casino operator and its employees including providers of medical, life, dental, and property insurance;

4. administrators of employee benefit and retirement plans including incorporated 401K plans and employee stock purchase programs;

5. national or local professional associations which receive funds from a licensee or casino operator for the cost of enrollment, activities, and membership;

6. all state, federal and municipal operated agencies;

7. all liquor, beer and wine industries regulated by the Office of Alcohol and Tobacco Control;

8. state and federally regulated banks and savings and loan associations;

9. newspapers, television stations and radio stations which contract with a licensee or the casino operator to provide advertising services;

10. providers of professional services, including but not limited to accountants, auditors, actuaries, architects, landscaping or surveying services, attorneys, legal services, advertising or public relation services, consultants, engineers and lobbyists, when acting in their respective professional capacities;

11. hotels and restaurants;

12. nationwide shipping services, including Federal Express, United Parcel Service, Airborne Express and Emory Freight;

13. publicly traded companies or wholly owned subsidiaries of publicly traded companies subject to regulation by the Securities and Exchange Commission, who are in good standing and are current with required filings; and

14. professional sports and racing teams regulated by national sanctioning bodies.

D. The board, in its sole discretion, may rescind any exemption granted in Subsection C of this Section and require any person to make application for a non-gaming supplier permit.

E. Any non-gaming supplier required to obtain a non-gaming supplier permit, other than those listed in Subsection C of this Section, may request a waiver of the necessity of obtaining a non-gaming supplier permit. The division may grant such a request upon showing of good cause by the non-gaming supplier. The division may rescind any such waiver which has been previously granted upon written notice to the non-gaming supplier.

F. Junket representatives shall be subject to the provisions of this Section in the same manner as other non-gaming suppliers.

G. Each licensee and casino operator shall submit to the division, on a quarterly basis, a report containing a list of all non-gaming suppliers that have received $10,000 or more from the licensee or casino operator during the previous quarter, or an amount equal to or greater than $500,000 during the preceding calendar year as payment for providing non-gaming services or goods. This report shall include the name and address of the supplier, a description of the type of goods or services provided, the supplier's non-gaming supplier permit number if paid an amount equal to or greater than $500,000 during the year included in the report, federal tax identification number, and the total amount of all payments made by the licensee or casino operator, or any person acting on behalf of the licensee or casino operator, to each supplier. The report shall be sent to the division no later than 20 days after the end of each quarter.

H. Each licensee and casino operator shall also submit a report naming each individual, corporation, firm, partnership, association, or other legal entity that furnishes professional services, as defined in Paragraph C.10 of this Section, to the licensee or the casino operator. The report shall be sent to the board and division by certified mail or electronic transmission no later than twenty days after the end of each quarter. The report required by the provisions of this Section shall contain the name and address of each individual, corporation, firm, partnership, association, or other legal entity that furnishes professional services to each holder of a license and the casino operator a description of the type of goods or services provided, the supplier's non-gaming supplier permit number, if applicable, and the supplier's federal tax identification number. The report required by the provisions of this Section shall not be required to contain the amount of compensation paid to each individual, corporation, firm, partnership, association, or other legal entity in exchange for furnishing professional services to each holder of a license and the casino operator.

I. The division shall determine whether non-gaming suppliers providing goods or services to licensees or the casino operator are legitimate ongoing businesses and are not utilized for the primary purpose of compliance with voluntary procurement goals. In making such determination, the division shall consider any or all of the following nonexclusive factors:

1. years in business providing specific goods and/or services procured by the licensees or casino operator;

2. number of employees;

3. total customer base;

4. dollar volume of all sales compared to sales to the licensees or casino operator;

5. existence and nature of warehouse and storage facilities;

6. existence and number of commercial delivery vehicles owned or leased;

7. existence and nature of business offices, equipment and facilities;

8. whether the goods or services provided to the licensee or casino operator are brokered, and if so, whether the actual supplier distributes through brokers as a common business practice;

9. registration with and reporting to appropriate local, state and federal authorities, as applicable.

La. Admin. Code tit. 42, § III-2108

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1609 (July 2012), Amended by LR 41:1497 (8/1/2015), Amended LR 45678 (5/1/2019).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.