238.560 Investigation of complaints -- Administrative actions against violators.
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/ky/chapter-238/238-560A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The office may investigate allegations of wrongdoing upon complaint or upon its
own volition. The corporation by administrative regulation may establish
procedures for receiving and investigating complaints in an expeditious manner.
(2)In carrying out its enforcement responsibilities, the office may:
(a)Inspect and examine all premises in which or on which charitable gaming is
conducted or charitable gaming supplies or equipment are manufactured or
distributed;
(b)Seize and remove from premises and impound charitable gaming supplies and
equipment for the purposes of examination and inspection pursuant to an
appropriate court order;
(c)Demand access to, inspect, and audit books and records of licensees for the
purpose of determining compliance with laws and the corporation's
administrative regulations relative to charitable gaming; and
(d)Conduct in-depth audits and investigations, when warranted.
(a)As used in this subsection, "willful" means that the conduct constituting the
violation was committed with intent, not accidentally or inadvertently.
(b)The office may take appropriate administrative action against any person
licensed under this chapter for any violation of the provisions of this chapter
or administrative regulations promulgated thereunder subject to the conditions
established by this subsection.
(c)The office may deny a license, suspend or revoke a license, issue a cease and
desist order, place a license holder on probation, issue a letter of reprimand or
letter of warning, and levy a fine. An administrative fine shall not exceed one
thousand dollars ($1,000) for each offense. The office may deny the issuance
of a license or a license renewal if the applicant or licensee has failed to pay a
fine levied by the office. The corporation may by administrative regulation
classify types of offenses and the recommended administrative action. The
type of action to be taken shall be based on the history of previous violations
and the nature, severity, and frequency of the offense. Administrative action
authorized in this section shall be in addition to any criminal penalties
provided in this chapter or under other provisions of law.
(d)1. Notwithstanding any other provisions of this section, the office shall
review, within two
(2)months of receipt, timely filed organization
quarterly reports that include payment of the fee due as reflected on the
organization quarterly report. If the office discovers reporting errors that
are not willful, the office shall, prior to taking any other administrative
action, issue a letter of warning to the licensee and allow the licensee
thirty
(30)days from the issuance of the letter to correct the identified
violation. The purpose of this subparagraph is for the office to identify
correctable reporting errors in a timely manner, and to notify the
licensee of the errors prior to the due date of the next organization
quarterly report so that the errors are corrected and are not repeated in
subsequent organization quarterly reports.
2. A review conducted under subparagraph 1. of this paragraph shall not be
considered an audit or final review and acceptance of an organization
quarterly report and payment. The office shall have four
(4)years from
the date of filing to fully audit and review an organization quarterly
report, and may pursue administrative actions against the licensee
related to an organization quarterly report or the information reported on
an organization quarterly report within the four
(4)year period if
violations or errors that are not willful are discovered. This
subparagraph shall not be construed to require records that are not
needed to audit or review an organization quarterly report to be kept
longer than is required elsewhere in this chapter or in any related
administrative regulations.
3. Notwithstanding the provisions of subparagraph 2. of this paragraph, for
a violation that is determined to be willful, the office may pursue the
administrative actions authorized by this section at any time.
4. A letter of warning issued under this section shall:
a. Identify the violation;
b. Describe the corrective action necessary;
c. Identify the administrative actions that can be taken if the violation
is not addressed; and
d. Provide that the person shall have thirty
(30)days to correct the
action leading to the violation.
(4)The office may reinstate a license that has been revoked at any time after two
years from the date of revocation. A license may be reinstated only upon a finding
that the violations for which the license was revoked have been corrected.
(5)All departments, divisions, boards, agencies, officers, and institutions of the
Commonwealth of Kentucky and all subdivisions thereof, in particular local law
enforcement entities, shall cooperate with the office in carrying out its enforcement
responsibilities.
(6)The office shall report any activity or action which would constitute a criminal
offense to the appropriate authorities in the county where the activity or action
occurred and to the Attorney General.
(7)All administrative actions taken under this section shall be subject to the final order
of the corporation.