A.
Any management contract entered into by a Cannabis Business for the operation and management of a Cannabis Business must be submitted to the Department for approval, but before approving such contract the Department shall require and obtain the following information:
(1)
The name, address and other additional pertinent background information on each person or entity (including persons comprising such entity) having direct or indirect financial interest in, or management responsibility for, such agreement.
(2)
A description of any previous experience that each person listed pursuant to Subsection A(1) has had with other cannabis management contracts with Indian Tribes or with the cannabis industry generally, including specifically the name and address of any licensing or regulatory agency with which such person has had a contract relating to cannabis.
(3)
Any further or additional information as may be required by the Department.
C.
For purposes of this article, any reference to the management contract described in Subsection A(1) shall be considered to include all collateral agreements to such contract that relate to the cannabis activity.
D.
The Department may approve any management contract entered into by the cannabis business pursuant to this section only if it determines that such contract provides at least for:
(1)
Adequate accounting procedures that are maintained and verifiable financial reports that are prepared by or for the cannabis business on a monthly basis;
(2)
Access to the daily operations of the cannabis business by appropriate cannabis business and tribal officials, who shall also have a right to verify the daily gross revenues and income made from any such cannabis activity;
(3)
A contract term not to exceed five years, except that, upon the request of the cannabis business, the Department may authorize a contract term that exceeds five years but does not exceed seven years if the Department is satisfied that the capital investment required, and the income projections, for the particular cannabis activity require additional time;
(4)
Grounds and mechanisms for terminating such contract, but actual contract termination shall not require the approval of the Department; and
(5)
Preference to tribal members and nonmember Indians in hiring of employees for the cannabis business.
E.
The Department shall not approve any contract if it determines that:
(1)
Any person listed pursuant to Subsection A(1):
(a)
Is an elected member of the Legislature; or
(b)
Has been or subsequently is convicted of any felony, or any offense that would render such person ineligible for a cannabis employee license under this chapter; or
(c)
Has knowingly and willfully provided materially important false statements of information to the Department or the cannabis business or has refused to respond to questions propounded pursuant to Subsection B; or
(d)
Has been determined to be a person whose prior activities, criminal record, if any, or reputation, habits, and associations pose a threat to the public interest or to the effective regulation and control of cannabis or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto;
(2)
The management contractor has or has attempted unduly to interfere or to influence for its gain or advantage any decision or process of tribal government relating to cannabis activity; or
(3)
The management contractor has deliberately or substantially failed to comply with the terms of a management contract or the provisions of this chapter or any regulations or rules adopted pursuant to this chapter or other Tribal law.
F.
The Department, after notice and hearing, shall have the authority to require appropriate contract modifications or may void any contract if it subsequently determines that any of the provisions of this section have been violated. If the cannabis business elects to contractually agree to resolve disputes in a manner other than the revocation of a license, such contractual agreement shall supersede any conflicting provisions of this section, so long as the agreement provides a reasonable avenue for the Tribe to ensure a licensee's compliance with all other aspects of this chapter and other Tribal law.
G.
Changes in ownership interest. Any transfer of an ownership interest in a management contract subsequent to approval of such contract by the Department requires Department approval under this section and is void until and unless so approved. The management contractor shall provide the information required under Subsection A as to such transfer.
H.
The Department shall require a potential contractor to pay a fee to cover the actual cost of the investigation necessary to reach a determination required by this section.