(a) Definition of Corrective Action--Action(s) required by any of the following in order to resolve audit findings or violations of the Bingo Enabling Act or the Charitable Bingo Administrative Rules:
  (1) an undisputed determination letter resulting from a compliance audit;
  (2) an agreed order; or
  (3) a decision in a contested case.
(b) Examples of corrective actions:
  (1) Reimbursement of funds--Funds deposited into a bingo bank account to replenish the account for:
    (A) non-permissible expenses; or
    (B) bingo proceeds that were not deposited into the account.
  (2) Removal of funds--Funds removed from a bingo bank account that are not proceeds from the conduct of bingo.
  (3) Additional charitable distribution--Bingo funds disbursed from a bingo account to meet the minimum charitable distribution requirements.
  (4) Implementation of internal controls--Controls a licensee or unit develops and implements to minimize or prevent theft or fraud related to its bingo operation.
  (5) Implementation of policies and procedures--Written steps and processes a licensee or unit develops and implements to assist in the operation and control of the bingo operation.
  (6) Payment of additional prize fees or rental taxes--The amount a licensee or unit must pay for any additional prize fee or rental tax due, including penalty and interest.
(c) If corrective action is not taken as required, the licensee may be subject to more frequent inspections and compliance audits and/or disciplinary action after notice and Commission action such as:
  (1) license revocation;
  (2) license suspension; and/or
  (3) administrative penalty.

Source Note: The provisions of this §402.709 adopted to be effective March 13, 2008, 33 TexReg 2022