Section 12560 - Disciplinary Guidelines for Third-Party Proposition Player Services Licensees(a) If the Commission finds that a TPPPS owner type licensee, is out of compliance with any mandatory duty specified in or imposed by the Act or any Commission or Bureau regulation, which is not otherwise listed in these disciplinary guidelines, the penalty will be one day of suspension of proposition player services from either a specified cardroom business licensee or all cardroom business licensees, as the circumstances and factors in mitigation or aggravation apply and which may be stayed on terms and conditions and any monetary penalty as described in paragraph (7) of subsection (d) of Section 12554.(b) A TPPPS owner type licensee will be subject to a minimum discipline of suspension of five calenda-rdays from either a specified cardroom business licensee or all cardroom business licensees, as the circumstances and factors in mitigation or aggravation apply, and a maximum discipline of revocation, which may be stayed on terms and conditions and any monetary penalty as described in paragraph (7) of subsection (d) of Section 12554, if the Commission finds that: (1) The TPPPS owner type licensee has violated or is out of compliance with any conditions, limitations, orders, or directives imposed by the Commission, either as part of an initial license, renewal license, or pursuant to disciplinary action;(2) The TPPPS owner type licensee has been found, by any administrative tribunal or court, to have violated or be in violation of any law involving or relating to gambling;(3) The TPPPS owner type licensee has intentionally misrepresented a material fact on an application or supplemental application for licensure;(4) The TPPPS owner type licensee has engaged in any dishonest, fraudulent, or deceptive activities in connection with controlled gambling or the provision of proposition player services;(5) The TPPPS owner type licensee has violated any law or ordinance with respect to campaign finance disclosure or contribution limitations, pursuant to Business and Professions Code section 19982;(6) The TPPPS owner type licensee has violated California Code of Regulations, Title 4, regarding annual fees for third-party proposition player services;(7) The TPPPS owner type licensee has provided proposition player services in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(9) or (b)(11);(8) The TPPPS owner type licensee has failed to fully disclose financial arrangements in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(14);(9) The TPPPS business licensee has failed to report cheating, in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(17);(10) The TPPPS owner type licensee has purchased, leased, or controlled equipment in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(20);(11) The TPPPS owner type licensee has failed to have the TPPPS contract approved, in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(21), or Section 12272;(12) The TPPPS owner type licensee has authorized or provided payment to or receipt by the cardroom business licensee, in violation of California Code of Regulations, Title 4, Section 12270, subsection (c);(13) The TPPPS owner type licensee has been cheating, or has induced or instructed another to cheat, pursuant to Penal Code sections 337t, 337u, 337v, 337w, or 337y;(14) The TPPPS owner type licensee has committed extortion (as that term is defined in Chapter 7 of Title 13 of Part 1 of the Penal Code, commencing with section 518);(15) The TPPPS owner type licensee has committed loan-sharking [as that term is used in Civil Code section 1916- 3, subdivision (b)];(16) The TPPPS owner type licensee has conducted or negotiated illegal sales of controlled substances (as that term is used in Chapter 1 (commencing with section 11000) of Division 10 of the Health and Safety Code) or dangerous drugs (as that term is used in Business and Professions Code, section 4022);(17) The TPPPS owner type licensee has committed bribery (as that term is used in Penal Code section 67 or 67.5);(18) The TPPPS owner type licensee has committed money laundering (as that term is used in Chapter 10 of Title 7 of Part 1 of the Penal Code, commencing with section 186.9);(19) The TPPPS owner type licensee has granted rebates to patrons without full disclosure, in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(18);(20) The TPPPS owner type licensee has violated the provisions regarding playing books listed in California Code of Regulations, Title 4, Section 12250;(21) The TPPPS owner type licensee committed, attempted to commit, or conspired to commit any act prohibited by the Act or this chapter;(22) The TPPPS owner type licensee concealed or refused to disclose any material fact in any inquiry by the Bureau or the Commission;(23) The TPPPS owner type licensee bought or sold chips other than to or from the cardroom business licensee, except for exchanging with a patron, chips of one denomination for chips of another denomination;(24) The TPPPS owner type licensee lent money or chips to a patron;(25) The TPPPS owner type licensee knowingly permitted one or more of the TPPPS owner type licensee's TPPPS employee type licensees to commit any act described in paragraph (9) of subsection (c) or paragraphs (9) to (17), inclusive, of subsection (d);(26) The TPPPS owner type licensee knew, or failed to implement reasonable oversight procedures that would have apprised the TPPPS owner type licensee, that one or more of the TPPPS owner type licensee's TPPPS employee type licensees was in violation of one or more provision the Act or regulation and failed or refused to take action to prevent the recurrence of the violation or violations;(27) The TPPPS owner type licensee provided proposition player services to a gambling enterprise without a Bureau-approved contract on and after April 30, 2004; or,(28) The TPPPS owner type licensee provided prohibited player-dealer services.(c) A TPPPS employee type licensee will be subject to a minimum monetary penalty of $100 and/or a suspension of three calendar-days and a maximum penalty of revocation if the Commission finds that: (1) The TPPPS employee type licensee has violated or is out of compliance with conditions, limitations, orders, or directives imposed by the Commission, either as part of an initial license, renewal licensee, or pursuant to disciplinary action;(2) The TPPPS employee type licensee has engaged in any dishonest, fraudulent, or deceptive activities in connection with controlled gambling or the provision of proposition player services;(3) The TPPPS employee type licensee has committed any act punishable as a crime, not otherwise listed in these disciplinary guidelines, which substantially relates to the duties and qualifications of the licensee, or which occurred in a gambling establishment or the associated adjacent property;(4) The TPPPS employee type licensee has engaged in any conduct on the premises of the gambling establishment or in connection with controlled gambling or the provision of proposition player services which is inimical to the health, welfare, or safety of the general public;(5) The TPPPS employee type licensee has either failed to wear a badge, worn a badge which was covered, worn a false or altered badge, worn another person's badge, or worn an expired badge;(6) The TPPPS employee type licensee has engaged in fighting or has intentionally provoked a patron or employee of a cardroom business licensee;(7) The TPPPS employee type licensee has maliciously or willfully destroyed or damaged the property of a cardroom business licensee, cardroom employee type licensee, or patron;(8) The TPPPS employee type licensee has accepted tips, gratuities, complimentaries, or gifts from a cardroom category licensee or cardroom businesses licensee's patrons;(9) The TPPPS employee committed, attempted to commit, or conspired to commit any act prohibited by the Act or this chapter; or,(10) The TPPPS employee type licensee has failed to comply with California Code of Regulations, Title 4, Section 12290.(d) A TPPPS employee type licensee will be subject to a minimum monetary penalty of $300 and/or a suspension of five calendar-days and a maximum penalty of revocation if the Commission finds that: (1) The TPPPS employee type licensee has intentionally misrepresented a material fact on an application, or supplemental application for licensure or approval;(2) The TPPPS employee type licensee has been cheating, pursuant to Penal Code, section 337x;(3) The TPPPS employee type licensee has committed extortion (as that term is defined in Chapter 7 of Title 13 of Part 1 of the Penal Code, commencing with section 518);(4) The TPPPS employee type licensee has committed loan-sharking (as that term is used in Civil Code section 1916- 3, subdivision (b));(5) The TPPPS employee type licensee has conducted or negotiated illegal sales of controlled substances (as that term is used in Chapter 1 (commencing with section 11000) of Division 10 of the Health and Safety Code) or dangerous drugs (as that term is used in Business and Professions Code, section 4022);(6) The TPPPS employee type licensee has committed bribery (as that term is used in Penal Code section 67 or 67.5);(7) The TPPPS employee type licensee has committed money laundering (as that term is used in Chapter 10 of Title 7 of Part 1 of the Penal Code, commencing with section 186.9);(8) The TPPPS employee type licensee has granted rebates to patrons without full disclosure, in violation of California Code of Regulations, Title 4, Section 12270, subsection (b)(18);(9) The TPPPS employee type licensee intentionally misrepresented a material fact on an application or supplemental application for licensure(10) The TPPPS employee type licensee engaged in any dishonest, fraudulent, or unfairly deceptive activity in connection with controlled gambling, including any violation of laws related to cheating;(11) The TPPPS employee type licensee concealed or refused to disclose any material fact in any inquiry by the Bureau or the Commission;(12) The TPPPS employee type licensee committed, attempted to commit, or conspired to commit an act of embezzlement or larceny;(13) The TPPPS employee type licensee has been lawfully excluded from being present upon the premises of any licensed gambling establishment for any reason relating to cheating or any violation of the Act;(14) The TPPPS employee type licensee bought or sold chips other than to or from the house, except for exchanging with a patron, chips of one denomination for chips of another denomination;(15) The TPPPS employee type licensee lent money or chips to a gambling enterprise patron; or,(16) The TPPPS employee type licensee made a wager that was not specifically authorized by the game rules as approved by the Bureau.(e) A TPPPS category licensee will be subject to revocation if the Commission finds that: (1) The TPPPS category licensee has been convicted of a felony or a crime of moral turpitude that would disqualify the holder from licensure; or,(2) The TPPPS employee type licensee no longer meets any criterion for eligibility, pursuant to Section 12040.Cal. Code Regs. Tit. 4, § 12560
1. New section filed 2-8-2007; operative 3-10-2007 (Register 2007, No. 6).
2. Change without regulatory effect amending section filed 8-8-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 32).
3. Amendment of subsections (b), (b)(20), (c) and (c)(10) filed 10-18-2017; operative 1-1-2018 (Register 2017, No. 42).
4. Change without regulatory effect amending subsections (b), (b)(8)-(11), (b)(19), (d) and (d)(8) filed 5-15-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 20).
5. Amendment of section heading and 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 19825, 19840, 19841, 19930 and 19984, Business and Professions Code. Reference: Sections 19824 and 19930, Business and Professions Code.
1. New section filed 2-8-2007; operative 3-10-2007 (Register 2007, No. 6).
2. Change without regulatory effect amending section filed 8-8-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 32).
3. Amendment of subsections (b), (b)(20), (c) and (c)(10) filed 10-18-2017; operative 1/1/2018 (Register 2017, No. 42).
4. Change without regulatory effect amending subsections (b), (b)(8)-(11), (b)(19), (d) and (d)(8) filed 5-15-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 20).
5. Amendment of section heading and 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.