(a) What are the definitions for the terms used in this rule?
  (1) Determination letter--A notice issued by the director stating the basis for the conclusion that a violation occurred, recommending that an administrative penalty be imposed on the person alleged to have committed the violation, and recommending the amount of the proposed penalty. The notice must include a brief summary of the alleged violation; include the amount of the administrative penalty recommended; and inform the person of the person's right to a hearing on the occurrence of the violation, the amount of the penalty, or both.
  (2) Dispute resolution--An informal process available to licensees to resolve regulatory disputes in a fair, competent, and consistent manner.
  (3) Dispute resolution conference--An informal meeting to resolve a disputed issue(s) related to a Notice of Administrative Violation and Settlement Agreement (NAVSA), an audit finding(s) contained within a final audit report, a determination letter or a notice of opportunity to show compliance letter.
  (4) Dispute resolution officer--The Director or his designee who will facilitate or manage the dispute resolution conference and guide and assist the participants.
(b) Who may request a dispute resolution conference? A licensee that does not agree with the findings in its NAVSA, final audit report, determination letter or the information in a notice of opportunity to show compliance letter may request a dispute resolution conference.
(c) How do I request a dispute resolution conference?
  (1) You may request a dispute resolution conference by completing and submitting a Request for Informal Dispute Resolution to the Director.
  (2) Disputed issues must be identified on the request.
  (3) The request must be signed by:
Attached Graphic
  (4) A request for a dispute resolution conference related to a NAVSA must be submitted in accordance with §402.707(e). All other requests for a dispute resolution conference must be submitted no later than 15 working days from the latest date of receipt of a determination letter, the final audit report, or notice of opportunity to show compliance letter.
  (5) You may provide supporting documentation related to your position with your request.
(d) Under what circumstances will the Director deny a request for a dispute resolution conference? The Director will not grant a request for a dispute resolution conference if:
  (1) You are not a licensee that disputes the findings in the NAVSA, final audit report, determination letter or the information in a notice of opportunity to show compliance letter;
  (2) You fail to timely submit the completed Request for Informal Dispute Resolution as required in subsection (c)(4) of this section or §402.707(e) of this chapter; or
  (3) A dispute resolution conference has been held previously on the disputed issue(s).
(e) When and where will the Dispute Resolution Conference be held?
  (1) Charitable Bingo Operations Division staff will contact you within 15 calendar days from the date we receive a Request for Informal Dispute Resolution, in order to schedule a mutually agreeable date, time, and location for the dispute resolution conference. However, for conferences related to a NAVSA, the Division will contact the respondent in sufficient time to schedule the conference within 20 days of the respondent's receipt of the NAVSA, as required under §402.707(e).
  (2) The dispute resolution conference may be held in person, by video conference, or by telephone conference call. The date, time, and location of the conference must be agreeable to all parties.
  (3) You must contact the Commission at least 24 hours prior to the scheduled conference time to reschedule a dispute resolution conference. However, in the event of unforeseen events, upon agreement of the parties, a dispute resolution conference may be rescheduled.
(f) What happens if I don't attend or reschedule a Dispute Resolution Conference? The dispute resolution process will end. The administrative process will continue and a formal hearing may proceed. We will notify you of the date of the administrative hearing.
(g) Who attends the Dispute Resolution Conference? Depending on your regulatory classification, certain individuals from your organization must attend the dispute resolution conference. You must notify the Director at least 24 hours before the scheduled dispute resolution conference of who is attending.
Attached Graphic
(h) Who will represent the Charitable Bingo Operations Division at a Dispute Resolution Conference?
  (1) Appropriate Commission staff from the Charitable Bingo Operations Division, Legal Services Division, and/or Enforcement Division will attend and participate in the dispute resolution conference to provide relevant information and documentation regarding the disputed issues and to attempt to reach a resolution of the dispute.
  (2) The dispute resolution officer and dispute resolution support staff will facilitate the dispute resolution process but will not advocate on behalf of any party.
(i) What happens at the Dispute Resolution Conference?
  (1) Each party states their position related to the disputed issues and presents appropriate documentation to substantiate their position on all disputed issues.
  (2) The dispute resolution officer works with the parties to reach a settlement.
  (3) Any resolution reached as a result of the dispute resolution conference will be through voluntary agreement of the parties.
(j) Do I need to provide any information prior to the Dispute Resolution Conference? If the Dispute Resolution Conference is conducted via telephone or video conferencing, you must provide to the Director a copy of any documentation you plan to present at least 48 hours prior to the conference. If the basis of the dispute involves an audit finding, the Director will provide the dispute resolution officer with the information submitted by the organization, the final audit report, and the determination letter. If the basis of the dispute is other than an audit finding, the Director will provide the dispute resolution officer the notice of opportunity to show compliance letter and the underlying report that is the basis for the notice of opportunity to show compliance letter. The dispute resolution officer may contact both parties and request additional information be submitted to him prior to the dispute resolution conference.
(k) What happens if an agreement is reached at the dispute resolution conference?
  (1) If the parties agree to a resolution of disputed issues, the dispute resolution officer will prepare a Dispute Resolution Settlement Agreement for review, approval, and signature by both parties at the dispute resolution conference.
  (2) The Agreement will include:
    (A) the violation(s);
    (B) the resolution of the disputed issues(s); and
    (C) corrective action you must take.
  (3) The Agreement must be signed by an officer, director, or bingo chairperson and the primary operator.
(l) What happens if an agreement is not reached at the dispute resolution conference? The matter may proceed to a formal administrative hearing.

Source Note: The provisions of this §402.708 adopted to be effective October 14, 2007, 32 TexReg 7054; amended to be effective August 1, 2016, 41 TexReg 5505