Standards

Standards. The Executive Director shall consider all relevant facts in recommending and the Commission shall consider all relevant facts in determining whether to grant an approval of delayed licensing to a limited partnership, and thereafter to a limited partner. Without limiting the generality of the foregoing, the Executive Director and Commission shall consider the effects of the action or approval requested by the applicant, the benefits for the State of Mississippi and the following: (a) The effect of granting delayed licensing and the benefits, if any, to the State of Mississippi. (b) Whether the applicant, either individually or in conjunction with other limited partners, has any direct or indirect control or significant influence over a general partner, or the management of the limited partnership's business or gaming operation, or the ability to acquire such control. (c) Whether the limited partnership agreement has clear and specific provisions restricting the priority rights of the limited partnership with respect to income, losses, or other distributions, during the term of the limited partnership or upon its dissolution, of limited partners seeking delayed licensing; vesting in the general partner(s) the sole and exclusive right to manage and control the partnership's business; defining the scope of the general partner(s)' authority and any limitations thereon; restricting the right of limited partners to remove or elect general partners, except to the extent necessary to elect a general partner upon the retirement, death, or disability of a general partner who is a natural person; and whether any additional assessment or capital contribution can be required of the limited partners. (d) Whether the applicant has, or has had a material relationship with a general partner. Without limiting the generality of the foregoing an applicant who has a familial relationship, either by blood, marriage or adoption, to a general partner may be deemed to have such a material relationship. (e) The commonality of business interests between a general partner and any limited partners prior to, or existing at, formation of the limited partnership. (f) Whether the applicant had a key role in forming the limited partnership. (g) The relative level of risk for each general and limited partner. (h) The business probity of each general partner, in gaming or otherwise. (i) The presence or absence of restrictions on the limited partners. (j) Whether a substantial portion of the assets of the limited partnership were owned by the applicant and other limited partners prior to formation of the limited partnership. (k) Whether a substantial portion of the depreciable assets involved in the proposed gaming operation will be owned by the limited partnership or leased or loaned to the limited partnership by one more limited partners. (l) Whether a limited partner has guaranteed any obligation of the limited partnership. (m) The number of persons and entities involved in the limited partnership. The Commission will not ordinarily grant delayed licensing status to a limited partnership with fewer than ten (10) limited partners. (n) The various percentage ownership interests in the limited partnership. (o) The terms of any agreements which provide for a buy-out of a limited partner's interest in the event the limited partner is found unsuitable for licensing. (Adopted: 09/25/1991.)