La. Admin. Code tit. 42 § III-4707
Current through Register Vol. 50, No. 11, November 20, 2024
Section III-4707 - Safe HarborA. If at any time the board finds that an affiliate of the casino operator or casino manager or a holder of a debt or equity interest in the casino operator, the casino manager or a respective affiliate that is required to be and remain suitable has failed to demonstrate suitability, the board may, consistent with the Act and the casino operating contract, take any action it deems necessary to protect the public interest. The board shall take no action to declare the casino operator, casino manager or an affiliate unsuitable based upon such finding if the casino operator, casino manager or the affiliate takes immediate good-faith action, including the prosecution of all legal remedies, and complies with any order of the board to cause such person failing to demonstrate suitability to dispose of such person's interest in the casino operator, casino manager or affiliate, and, pending such disposition and upon receipt of notice from the board of a finding of failure to demonstrate suitability, the casino operator, casino manager or the affiliate ensures that the person failing to demonstrate suitability: 1. does not receive dividends or interest on the securities of the casino operator, casino manager or the affiliate;2. does not exercise, directly or indirectly, including through a trustee or nominee, any right conferred by the securities of the casino operator, casino manager or the affiliate;3. does not receive any remuneration from the casino operator, casino manager or the affiliate;4. does not receive any economic benefit for the casino operator, casino manager or the affiliate; and5. subject to the disposition requirements of this section, does not continue in ownership or economic interest in the casino operator, casino manager or the affiliate, or remain as a manager, officer, director, partner, employee, consultant or agent of the casino operator, casino manager or the affiliate.B. Nothing contained in this section shall prevent the board from taking any action against the casino operator if the casino manager fails to be or remain suitable. Nothing contained in this Section shall prevent the board from taking regulatory action against the casino operator, casino manager, or the affiliate if the casino operator, casino manager or the affiliate:1. had actual or constructive knowledge of the facts that are the basis of the board's regulatory action and failed to take appropriate action; or2. is so tainted by the person failing to demonstrate suitability so as to affect the suitability of the casino operator, casino manager or the affiliate under the standards of the Act and rules; or3. cannot meet the suitability standards contained in the Act and rules.La. Admin. Code tit. 42, § III-4707
Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1688 (July 2012).AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.