Sec. 10.25.15.03. Procedure for Initial State Designation

A. Application.

(1) An entity seeking MSO State Designation shall submit an application in a form and manner specified by the Commission.

(2) The application shall be signed by an individual authorized by the entity submitting the application.

B. Requirements for State Designation. An applicant for MSO State Designation shall:

(1) Demonstrate that it meets all MSO State Designation criteria in effect at the date of application;

(2) Affirm that the applicant, a related entity, or a person or entity that is a principal, owner, operator, or part of management of the entity has never:

(a) Pleaded guilty to, been convicted of, or received probation before judgment or similar diversionary disposition for a crime related to the operation of an MSO or for a crime involving fraud, dishonesty, or false dealing; or

(b) Been found in violation of State or federal laws or regulations governing the operation of an MSO;

(3) Provide all required documentation;

(4) Timely provide additional information requested by the Commission as needed to complete the application; and

(5) Agree to comply with the requirements of this chapter.

C. Review of Applications.

(1) Commission staff shall review an application to determine compliance with the State Designation criteria.

(2) The Executive Director may approve or deny an application for State Designation, as follows:

(a) The Executive Director shall award State Designation to an MSO that meets the requirements set forth in this chapter; and

(b) If the Executive Director determines that an application should be denied, the Executive Director shall, within 30 days of receipt of a complete application, notify the applicant in writing of the decision, and include the reasons for denial.

D. Duration of State Designation.

(1) State Designation is valid for 2 years from the date of issuance of an MSO State Designation certificate, unless suspended or revoked by the Commission.

(2) An MSO awarded State Designation shall accept the designation in writing and agree to the comply with the requirements of this chapter.