Lack of Compliance with Chapter Requirements

PURPOSE: This rule establishes the process if licensee fails to comply with internal control system. (1) If the commission or director determines that a licensee’s administrative or accounting procedures or its written system does not comply with the requirements of this chapter or require improvement, the commission or director shall notify the licensee in writing. Within fifteen (15) days after receiving the notification, the licensee shall amend its procedures and written system accordingly and shall submit a copy of the written system, as amended, and a description of any other remedial measures taken. (2) Failure to comply with the provisions of this chapter is an unsuitable method of operation. (3) Violations of the minimum internal control standards by a Class A or Class B licensee or an agent or employee of a Class A or Class B licensee are deemed to be unsuitable conduct for which the Class A or Class B licensee and/or its agent or employee is subject to administrative penalty pursuant to section 313.805(6), RSMo and 11 CSR 45-1 et seq., as amended from time-to-time. Any agent or employee of a Class A or Class B licensee that is involved in a violation of the minimum internal control standards may be subject to fine, discipline, or license revocation. (4) Violations of the Class B licensee’s internal control system by the Class A or Class B licensee or an agent or employee of the Class A or Class B licensee shall be prima facie evidence of unsuitable conduct for which the Class A or Class B licensee and/or its agents or employees may be subject to discipline pursuant to section 313.805(6), RSMo and 11 CSR 45-1 et seq., as amended from time-to-time. AUTHORITY: section 313.004, RSMo 2000, section 313.805, RSMo Supp. 2013, and sections 313.800, 313.812, and 313.817, RSMo Supp. 2014.* Emergency rule filed Sept. 1, 1993, effective Sept. 20, 1993, expired Jan. 17, 1994. Emergency rule filed Jan. 5, 1994, effective Jan. 18, 1994, expired Jan. 30, 1994. Original rule filed Sept. 1, 1993, effective Jan. 31, 1994. Emergency amendment filed March 18, 1996, effective March 28, 1996, expired Sept. 23, 1996. Amended: Filed March 18, 1996, effective Oct. 30, 1996. Amended: Filed May 13, 1998, effective Oct. 30, 1998. Amended: Filed Aug. 27, 2015, effective March 30, 2016. *Original authority: 313.004, RSMo 1993, amended 1994; 313.800, RSMo 1991, amended 1993, 1994, 2005, 2014; 313.805, RSMo 1991, amended 1993, 1994, 2000, 2008, 2010; 313.812, RSMo 1991, amended 1993, 1994, 2000, 2014; and 313.817, RSMo 1991, amended 1993, 2000, 2008, 2014.