Denial of application or suspension or revocation of license.     
       (1) If the director of the Lottery Operations Division determines that an applicant is not eligible for a license for reasons other than these set out in the State Lottery Act, (Texas Government Code, §466.155), the director will notify the applicant, in writing, by personal service or by registered or certified mail, return receipt requested, that the application has been denied and will state the reasons for the denial. The applicant may, within 15 days of the date of the notice of denial, make a written request for a hearing to contest the denial. If the applicant does not request a hearing within 15 days of the date of the notice of denial, the hearing is waived and a final decision will be issued.      
       (2) If the director of the Lottery Operations Division proposes to deny an application for a license for reasons set out in the State Lottery Act, (Texas Government Code, §466.155), the applicant is entitled to written notice of the time and place of the hearing. A notice may be served on the applicant personally or sent by certified or registered mail, return receipt requested, to the person's mailing address as it appears on the commission's records. A notice must be served or mailed not later than the 20th day before the hearing. After the hearing, the director of the Lottery Operations Division shall deny an application for a license if the director finds that any of the grounds for denial set out in the State Lottery Act exist.      
       (3) The executive director will notify the licensee in writing, by personal service or by registered or certified mail, return receipt requested, that the license will be suspended or revoked for reasons other than those reasons set out in the State Lottery Act, (Texas Government Code, §466.155), and will state such reasons for the action. The licensee may, within 15 days of the date of the notice of suspension or revocation, make a written request for a hearing to contest the action. If the licensee does not request a hearing within 15 days of the date of the notice of suspension or revocation, the hearing is waived and a final decision will be issued by the executive director.      
       (4) If the commission proposes to suspend or revoke a license for reasons set out in the State Lottery Act, (Texas Government Code, §466.155), the licensee is entitled to written notice of the time and place of the hearing. A notice may be served on the licensee personally or sent by certified or registered mail, return receipt requested, to the person's mailing address as it appears on the commission's records. A notice must be served or mailed not later than the 20th day before the hearing. After the hearing, the commission shall suspend or revoke a license if the commission finds that any of the grounds for suspension or revocation set out in the State Lottery Act, (Texas Government Code, §466.155) exist.      
     Source Note:        The provisions of this §401.205 adopted to be effective April 28, 1992, 17 TexReg 2781; transferred effective December 27, 1993, as published in the Texas Register January 4, 1994, 19 TexReg 78; amended to be effective April 18, 1994, 19 TexReg 2275; amended to be effective March 31, 2010, 35 TexReg 2554