Section 1360-03-03-.13 - DISQUALIFICATIONS/CIVIL PENALTIES(1) Any violation of the Tennessee Nonprofit Gaming Law shall be a basis for disqualification or the imposition of civil penalties. Civil penalties may be assessed for the violation of either civil or criminal provisions of the Act.(2) Upon concluding that an organization violated any provision of T.C.A. §§ 3-17-101 et seq., pursuant to T.C.A. § 3-17-113(a), the Secretary of State shall notify the registrant of his intent to disqualify the organization or assess a civil penalty. The notification shall contain the reasons for the action and shall inform the organization of its right to request an administrative hearing within thirty (30) days of receipt of the notification. The disqualification or penalty shall become effective thirty (30) days after receipt of the notification unless a request for an administrative hearing is received by the Secretary of State before the expiration of the thirty (30) days. If a hearing is requested and the disqualification or penalty is upheld, the action shall become effective upon the service of the final administrative decision on the organization.(3) The hearing shall be held before an administrative law judge from the Administrative Procedures Division of the Tennessee Department of State and conducted pursuant to the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-101 et seq. and Rule 1360-04-01-.14, Uniform Rules of Procedure for Contested Cases of State Agencies.(4) An organization that loses its tax exempt status shall be ineligible to hold an annual gaming event. The years for which the tax exempt status was not in effect shall not be countable as part of the period of active and continuous operation. If the Internal Revenue Service revokes an organization's tax exempt status and the revocation is made retroactive, the period of retroactivity will not be countable as part of the period of active and continuous operation.(5) A period of disqualification shall run from the date of application, the date of discovery of the violation or the date of imposition of the disqualification, whichever is later.Tenn. Comp. R. & Regs. 1360-03-03-.13
Original rule filed October 7, 2005; effective February 28, 2006. Emergency rule filed August 8, 2014; effective through February 4, 2015. Emergency rule expired effective February 5, 2015, and the rule reverted to its previous status. Repeal and new rule filed June 9, 2015; effective September 7, 2015. Amendments filed January 8, 2024; effective 4/7/2024.Authority: T.C.A. §§ 3-17-101, 3-17-111, 3-17-111(a)-(b), 3-17-113(a), and 3-17-115(a).