36.08.03.03

.03 Corrective Action.

A. Deficiency. If the Director determines that an amusement gaming licensee under this chapter no longer meets an amusement gaming license requirement of this subtitle, or that there is cause for imposing sanctions under Regulation .04 of this chapter, the Director may:

(1) Assess the seriousness of the deficiency;

(2) Require the amusement gaming licensee to develop a corrective action plan;

(3) Conduct periodic monitoring of an amusement gaming licensee for which the Director required a corrective action plan to assess the licensee’s progress toward remedying the deficiencies;

(4) Evaluate and, if acceptable to the Director, approve the corrective action plan;

(5) Determine appropriate timelines for the completion of corrective action;

(6) Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the amusement gaming license; and

(7) Recommend that the Commission impose a sanction under Regulation .04 of this chapter.

B. Deficiency Notice. Upon determining that corrective action is required to remedy a deficiency, the Director shall give written notice to an amusement gaming licensee that includes:

(1) A description of the violation;

(2) A description of the possible sanctions; and

(3) The requirement for the licensee to submit a corrective action plan to the Director within a time frame established by the Director.

C. Corrective Action Plan.

(1) Within 10 days of receipt of a deficiency notice under §B of this regulation, the amusement gaming licensee shall submit a corrective action plan to the Director for the Director’s approval.

(2) The Director shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.

(3) If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may:

(a) Provide the licensee with additional time to submit a revised corrective action plan; or

(b) Impose a sanction on the licensee under Regulation .04 of this chapter.

(4) If the Director provided a licensee notice under §B of this regulation and received no timely written response, the Commission may adopt as final the Director’s decision to impose a sanction under Regulation .04 of this chapter.

D. Corrective Action Outcomes.

(1) If at any time during the corrective action plan period the Director determines that the amusement gaming licensee has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may:

(a) For good cause, extend the time for completion of a corrective action plan; or

(b) Emergently suspend the licensee’s license.

(2) If at the end of the corrective action plan period the licensee has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .04 of this chapter.