Section 12128 - Cancellation or Conditioning of Temporary Licenses(a) Any temporary license issued in accordance with this article will be cancelled or conditioned, as provided in subsection (a) and (b), if at any time, any of the following apply: (1) The Commission determines that it has received reliable information that the holder of the temporary license is ineligible under paragraphs (2) or (3) subsection (a) of Section 12124, has failed to reveal any fact material to the holder's qualification for a temporary license, or has supplied information to the Bureau or Commission that is untrue or misleading as to a material fact pertaining to the criteria for issuance of a temporary license.(2) The applicant's initial license application is referred by a vote of the Commission to an evidentiary hearing, and the Commission directs the Executive Director to cancel or condition the temporary license.(3) The temporary license is for a temporary TPPPS category license, and the applicant: (A) Buys or sells chips other than to or from the cardroom business licensee, except for exchanging with a patron one denomination of chips for chips of another denomination.(B) Lends money or chips to gambling establishment patrons, except for exchanging with a patron one denomination of chips for chips of another denomination.(C) Makes a wager that was not specifically authorized by the Bureau approved game rules.(D) Provided TPPPS at a gambling establishment without a Bureau-approved contract on and after April 30, 2004.(4) The temporary license is for a TPPPS owner type license or a TPPPS supervisor license and the applicant: (A) Knowingly permitted one or more TPPPS category licensee to commit any act described in paragraph (3).(B) Knew, or failed to implement reasonable oversight procedures that would have apprised the TPPPS business licensee, that one or more employees was in violation of the Act or Commission regulations, and failed or refused to take action to prevent the recurrence of the violation(s).(b) If any of the circumstances set forth in subsection (a) apply, and the temporary license is a temporary employee category license, then the license must be summarily cancelled and the Executive Director will immediately do all of the following: (1) Notify the temporary licensee, any owner category licensee that the temporary license holder is currently associated with, the local law enforcement agency, and the Bureau, in writing, of the cancellation of the temporary license and the grounds thereof.(2) Require the cardroom business licensee, the TPPPS business licensee or any applicable hiring authority to terminate, immediately, any employment of the holder covered by the cancelled temporary license.(3) Notify the temporary licensee that he or she is required to surrender their badge to the Bureau not more than ten calendar days following the date that the notice of cancellation was mailed or a greater time as specified by the Executive Director in the notice.(c) If any of the circumstances set forth in subsection (a) applies, and the temporary license is a temporary owner category license, then the following conditions will immediately be applied to the temporary license: (1) The holder of the temporary license must be barred from participation, in any way, in the conduct of the business including attendance at any meeting or communication related to the conduct of the business.(2) Any proceeds derived from the operation of the business that would otherwise be payable to the holder of the temporary license must be held in an escrow account and not disbursed until the license application has received Commission approval. This paragraph does not prevent the payment of any taxes, operating expenses, preexisting obligations, preexisting dependent support or any other distribution of proceeds that is approved by the Commission.(3) The Commission, in its sole discretion and on an individual case-by-case basis, may impose any additional conditions necessary to address particular factual situations regarding temporary licenses.(d) An applicant does not have any right to an evidentiary hearing pursuant to Section 12056 for a cancelled or conditioned temporary license.Cal. Code Regs. Tit. 4, § 12128
1. Certificate of Compliance as to 7-1-2002 order, including renumbering and amendment of former section 12110 to section 12128, transmitted to OAL 10-29-2002 and filed 12-12-2002 (Register 2002, No. 50).
2. Change without regulatory effect amending section and NOTE filed 6-26-2003 pursuant to section 100, title 1, California Code of Regulations (Register 2003, No. 26).
3. Change without regulatory effect amending subsections (b)(1)-(2) and (c)(1) filed 8-8-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 32).
4. Repealer and new section filed 12-12-2020; operative 1-1-2021 pursuant to Government Code section 11343.4(b) (Register 2020, No. 51). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20. Note: Authority cited: Sections 19811, 19816, 19823, 19824, 19840, 19841, 19883 and 19984, Business and Professions Code. Reference: Sections 10, 19801, 19805(x), 19816, 19824(f), 19850, 19855, 19856, 19857, 19859, 19866, 19870, 19883, 19912(a), 19912(d) and 19984, Business and Professions Code.
1. Certificate of Compliance as to 7-1-2002 order, including renumbering and amendment of former section 12110 to section 12128, transmitted to OAL 10-29-2002 and filed 12-12-2002 (Register 2002, No. 50).
2. Change without regulatory effect amending section and Note filed 6-26-2003 pursuant to section 100, title 1, California Code of Regulations (Register 2003, No. 26).
3. Change without regulatory effect amending subsections (b)(1)-(2) and (c)(1) filed 8-8-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 32).
4. Repealer and new section filed 12-12-2020; operative 1/1/2021 pursuant to Government Code section 11343.4(b) (Register 2020, No. 51). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.