36.02.02.10

.10 Sanctions.

A. The Director may impose sanctions on a retailer for:

(1) Violating or failing to fulfill the retailerís responsibilities or a condition of a license under this subtitle;

(2) Violating:

(a) A provision of the lottery law;

(b) A regulation adopted under the lottery law; or

(c) An order or directive of the Agency;

(3) Providing the Agency with false or misleading information;

(4) Failing to cooperate with the Agency;

(5) Failing to remit, or failing to make timely remittance of, funds owed to the Agency;

(6) Failing to meet the retailerís sales requirements as set by the Agency;

(7) Failing to display lottery point of sale material and equipment as directed by the Agency;

(8) Failing to make tickets available for sale as directed by the Agency;

(9) Damaging or altering, or allowing another person to damage or alter, materials or equipment provided to the retailer by the Agency or a vendor of the Agency;

(10) Interfering with, or influencing the outcome of, a lottery game;

(11) Failing to prepare, submit, or implement an adequate corrective plan under Regulation .09C of this chapter;

(12) Changing ownership of the retailerís operations without prior notice to the Agency;

(13) Closing the retailerís operations without prior notice to and authorization by the Agency;

(14) Engaging in conduct, or permitting an employee to engage in conduct, that impairs the reputation of the lottery program, or would otherwise bring the State into disrepute;

(15) Incurring criminal charges related to the conduct of illegal gaming;

(16) Possessing materials or equipment indicating involvement by the retailer or the retailerís employees in the conduct of illegal gaming; or

(17) Other activities or actions deemed by the Director to require the imposition of a sanction.

B. Types of Sanctions.

(1) Sanctions may include the emergency suspension, suspension, revocation, and limitation of the license of a retailer.

(2) Limitations on a license may include:

(a) Ineligibility for or removal from the Expanding Cashing Authority Program under COMAR 36.02.03.06; and

(b) Placement of conditions on the retailerís operations.

C. Suspension, Revocation, and Limitation.

(1) Except as set forth in §D of this regulation, the Director shall give the retailer notice of the intended suspension or revocation at least 15 days before the imposition of the intended sanction.

(2) A retailer may appeal the Directorís imposition of a sanction before the date the sanction is imposed by submitting a request for a hearing before the Commission.

(3) The Commissionís final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.

D. Emergency Suspension.

(1) Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by a retailer to the security, financial stability, reputation, or integrity of the lottery, the Director may suspend the license of a retailer without prior notice.

(2) If the Director emergently suspends a retailerís license, the Director shall provide the retailer with written notice that includes:

(a) A statement of the authority upon which the suspension is based;

(b) The nature of the violation;

(c) The duration of suspension;

(d) Information about the retailerís obligation to submit to the Agency a corrective plan; and

(e) A statement of the retailerís right to request a Commission hearing.

(3) If after a license is emergently suspended, the retailer does not submit a timely written request for a Commission hearing, the Director may move to revoke the retailerís license by giving the retailer notice under §C(1) of this regulation.

E. Agency Action. After the Director terminates a probationary or special license or imposes an emergency suspension or sanction on a retailer with a regular license, the Agency may:

(1) Disable the retailerís lottery terminal;

(2) Require the retailer to surrender, or direct an Agency vendor to remove, any materials or equipment that were provided to the retailer by the Agency or a vendor of the Agency equipment;

(3) Direct the retailer to immediately:

(a) Cease selling or displaying lottery products;

(b) Render a final accounting to the Agency in a manner specified by the Director; and

(c) Pay all funds owed the Agency; and

(4) Take any other action necessary to protect the security, financial stability, reputation, or integrity of the Agency.

F. Reapplication. A person may not reapply to be a retailer or be included in the application of another person for 1 year after the later of:

(1) The final action on a sanction; or

(2) If judicial review of the final action on a sanction is taken, the date an adverse decision is entered against the retailer by the highest court to which an appeal is taken.