N.H. Admin. Code § Lot 7209.02

Current through Register No. 36, September 5, 2024

Section Lot 7209.02 - Administrative Fines

(a) Pursuant to RSA 287-D:23, IX, when the commission imposes an administrative fine upon a person or entity for a violation of RSA 287-D or this chapter, the order shall be scaled to reflect the scope of the violation for each offense.

(b) In accordance with RSA 287-D:23, IX, any administrative fine imposed under this section shall not preclude the imposition of further penalties or administrative actions under RSA 287-D, or this chapter.

(c) For the purposes of this section, a "minor violation" means conduct, action, or failure to act by any person, entity, applicant, or licensee individual, or entity that was not:

(1) Of a nature, quality, or extent to affect or potentially affect the integrity of the charitable game(s) being conducted;

(2) Of a nature, quality, or extent to cause or potentially cause harm to the interest of the state or the charitable organization;

(3) A knowing, willful, or intentional violation;

(4) A violation that is chronic or part of a continuing pattern or practice of the licensee;

(5) An indication of a recalcitrant violator or one that has engaged in a pattern of neglect or disregard with respect to applicable regulatory requirements;

(6) An act that enabled the violator to benefit economically from the noncompliance; or

(7) Intended to hinder the ability of the commission to determine compliance with any other applicable local, state or federal regulation, information request, order or other requirement.

(d) Minor violations shall include, but not be limited to:

(1) Failing to wear a properly issued identification badge, as required by Lot 7207.02(c);

(2) Failing to prominently display documents, as required by Lot 7207.03(a);

(3) Failing to post a diagram at each table where the games of chance are going played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts, as applicable; or

(4) Failing to publicly display the name of the licensed charitable organization sponsoring the event.

(e) The commission shall impose a fine of no less than $25, and no more than $500, per minor violation committed by any person, entity, applicant, or licensee.

(f) For the purposes of this section, a "moderate violation" means conduct, action, or failure to act by any person, entity, applicant, or licensee that exceeds the strict definition of a minor violation, as defined in (e) above, but do not meet the level of severity of a major violation, as defined in (i) below.

(g) Moderate violations shall include, but not be limited to:

(1) Failing to submit any reports by the due date. Each different type of report or record requested but not provided shall constitute a separate violation subject to a separate fine;

(2) Operating a game not specifically listed on the game schedule, or on a different date than indicated on the license without approval of the commission;

(3) Operating games in a manner that differs from the house rules approved by the commission;

(4) A charitable organization member's failure to be present and on site at least once per day during the operation of the games of chance, as required by RSA 287-D:14, XI; or

(5) Committing 3 or more minor violations within 2 years.

(h) The commission shall impose a fine of no less than $250, and no more than $1,500, per moderate violation committed by any person, entity, applicant or licensee.

(i) A "major violation" means conduct, action or failure to act by any person, entity, applicant, or licensee that is:

(1) Of a nature, quality, or extent to effect or potentially affect the integrity of the charitable game(s) being conducted;

(2) Of a nature, quality or extent to cause or potentially cause harm to the interest of the state or the charitable organization;

(3) A knowing, willful, or intentional violation;

(4) A violation that is chronic or part of a continuing pattern or practice of the licensee;

(5) An indication of a recalcitrant violator or one that has engaged in a pattern of neglect or disregard with respect to applicable regulatory requirements;

(6) An act that enabled the violator to benefit economically from the noncompliance; or

(7) Intended to hinder the ability of the commission to determine compliance with any other applicable local, state or federal regulation, information request, order or other requirement.

(j) Major violations shall include, but not be limited to:

(1) Establishing, maintaining, operating, or otherwise offering games of chance without a license, or with a suspended license;

(2) Sponsoring a game of chance with a game operator who is not licensed;

(3) Falsifying a games of chance license;

(4) Knowingly operating a game of chance without a representative for the charitable organization present as required by RSA 287-D:14, XI;

(5) Operating a game in a manner that tends to deceive the public or affect the chances of winning or losing, including the use of equipment that has been altered or tampered with;

(6) Failing to develop, implement, or adhere to written internal control policies and procedures as required by Lot 7206.08;

(7) Failing to make available any records required by the commission for investigation, monitoring or licensing purposes, as required by Lot 7208.01(d);

(8) Furnishing or making false or misleading statements or reports to the commission, or directing, requiring, or knowingly allowing another member or personnel of the organization or entity to furnish or make false or misleading statements or report to the commission;

(9) Failing to cooperate during any visit authorized under RSA 287-E or this chapter; or

(10) Committing 5 or more minor violations or 3 or more moderate violations within 2 years.

(k) The commission shall impose a fine of no less than $1,000, and no more than $5,000 per violation of each major violation committed by any person, entity, applicant or licensee.

(l) In determining the actual amount of a fine, the commission shall consider:

(1) The following factors:

a. The degree of non-compliance;

b. Prior history of violations of the same or similar nature;

c. The consequences of the violation, including the economic impact to the state and other affected parties;

d. The nature and persistence of the violation;

e. The extent of any remedial or corrective action taken;

f. The good or bad faith exhibited by the cited individual(s);

g. Evidence that the violation was willful;

h. The extent to which the individual cooperated with the board's investigation;

i. The cost of any investigation or hearing conducted by the commission;

j. The licensee's ability to pay a fine assessed by the commission; and

k. Any other mitigating or aggravating factors; and

(2) The likelihood that the amount of the fine will result in:

a. Protecting public health, safety or welfare;

b. Preventing of future misconduct;

c. Correcting the attitudinal, educational, or other deficiencies which led to the misconduct;

d. Encouraging responsible practices of operating a charitable gaming event; and

e. Ensuring the integrity of charitable gaming in New Hampshire.

(m) Except as otherwise noted, the penalties prescribed in (c)-(l) above shall be imposed for each day that the person, entity, applicant, or licensee is not in compliance, beginning with the date that the notification under Lot 7209.01(d) above is issued and continuing for each day of non-compliance, or until the date of compliance.

(n) Payment of any imposed administrative fine to the commission shall meet the following requirements:

(1) If the recipient of a notice described in Lot 7209.01(d) above waives or is deemed to have waived his or her right to an adjudicative hearing, the respondent shall pay the fine by the date specified in the notice, which shall not be less than 25 days from the date of the notice of the proposed fine;

(2) If an adjudicative hearing is conducted and the commission's decision to assess a fine is upheld, the fine shall be due and payable within 10 calendar days of the date of the decision, or such longer time period as is specified in the decision;

(3) Payment shall be made in the form of personal check or money order which is made payable to "Treasurer, State of New Hampshire," or cash in the exact amount due;

(4) Any payment submitted to the treasury department in the form of a check or money order and returned to the state for any reason shall be processed in accordance with RSA 6:11-a; and

(5) Cash, money order, or certified check shall be required when any past payment to the commission by personal check has been returned for insufficient funds.

(o) Nonpayment of a fine by a licensee or respondent in contravention of an order, agreement, or promise to pay, shall be a separate ground for discipline by the commission, a basis for denying a subsequent license, and a basis for judicial action seeking to collect the fine.

(p) If a licensee or respondent fails to pay a fine in accordance with (n) above, the fine shall be $100, plus an additional fine of $50.00 per day for each day for which the commission does not receive payment in full.

(q) If a licensee corrects and then subsequently repeats a violation for which a fine was previously issued in accordance with (c)-(p) above, the fine shall be increased by the amount of the original fine such that, for example, an original fine of $100 shall become $200 for the first time the offense is repeated, $300 for the second time the offense is repeated, $400 for the third time the offense is repeated, and so on.

N.H. Admin. Code § Lot 7209.02

Derived from Volume XXXIX Number 32, Filed August 8, 2019, Proposed by #12839, Effective 7/27/2019, Expires 7/27/2029.