(a) If the executive secretary initiates a disciplinary action proposing license suspension or revocation against an association which has debt outstanding regarding the racetrack premises and facilities, the executive secretary shall serve a copy of the notice of the proceedings on the debt holder if the executive secretary has been given written notice of:
  (1) the existence of the debt; and
  (2) the name and address of the person to whom notice under this section may be sent.
(b) Except as otherwise provided by this subsection, the executive secretary shall serve the notice required by this section at the same time that notice of the disciplinary action is given to the association. If the executive secretary takes summary disciplinary action against an association to protect the public health, safety, and welfare, the executive secretary shall serve the notice required by this section not later than three business days after the date the summary disciplinary action is taken.
(c) The executive secretary shall give the debt holder a reasonable opportunity to cure any violation by the association that is the subject of the disciplinary action that is capable of being cured consistent with the public interest. If the violation is cured, the executive secretary may not initiate disciplinary action against the association for that violation.
(d) A debt holder that is entitled to notice under this section may participate in a disciplinary action against the association.

Source Note: The provisions of this §309.10 adopted to be effective January 1, 2002, 26 TexReg 10532