Sec. 10.62.08.13. Management Agreements

A. Prior to any management agreement taking effect, a licensee shall submit to the Commission:

(1) A copy of the management agreement;

(2) Information detailing any compensation paid in exchange for the management services;

(3) Criminal history record information and an audited financial statement of the third party providing the management services; and

(4) Any other information relevant to the management agreement requested by the Commission.

B. A management agreement may not take effect unless the Commission has:

(1) Received proper notice of the management agreement, as specified in §A of this regulation;

(2) Received the required fee specified in COMAR 10.62.35; and

(3) Approved the management agreement.

C. The Commission may deny a management agreement:

(1) If the management agreement constitutes an invalid transfer of an interest in a license, as specified in Regulation .08 of this chapter;

(2) If the criminal history record information or the background investigation reveals the third party providing the management services has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; or

(3) For other good cause.

D. In the case of material change to a management agreement, including a change of ownership or control of the management company, the licensee shall:

(1) Provide any relevant records, files, or information to the Commission; and

(2) Receive Commission approval prior to the material change to the management agreement taking effect.

E. If a management agreement transfers control and an ownership interest, the transferee shall only pay the required fee specified in COMAR 10.62.35 once.