R 432.516 Reasons for investigation of, or disciplinary action against, a fantasy contest operator or licensed management company; disciplinary hearing procedure.

Rule 516. (1) The board may initiate an investigation of or a disciplinary action against, or both, a fantasy contest operator or licensed management company if the board has reason to believe that 1 or more of the following apply: (a) The licensed fantasy contest operator or licensed management company is not maintaining suitability for licensure as provided by the act. (b) The licensed fantasy contest operator or licensed management company is not complying with licensure conditions. (c) The fantasy contest operator or licensed management company is not complying with all laws, rules, orders, and resolutions. (2) Before initiating disciplinary proceedings, the board must give notice and an opportunity to show compliance under section 92 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.292. (3) A fantasy contest operator is responsible for the conduct of any licensed management company it uses to conduct fantasy contests under the act. A fantasy contest operator or licensed management company is responsible for the conduct of any third-party provider it uses to conduct fantasy contests under the act. A licensed management company is responsible for its conduct under the act and these rules. Any violation of the act or these rules by the fantasy contest operator in which the licensed management company participated in the action is considered a violation by both the fantasy contest operator and licensed management company, and the board may hold both, or either, accountable for the violation. (4) The board may initiate a disciplinary proceeding by designating a member or the executive director to conduct a hearing or by initiating proceedings with the appropriate state agency under the contested case provisions of chapter 4 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.288, and the rules promulgated under that chapter.