TITLE 68 INDIANA GAMING COMMISSION

Final Rule

LSA Document #08-430(F)

DIGEST

Adds 68 IAC 1-1-13.4 to define “casino”. Adds 68 IAC 1-1-13.5 to define “casino gambling operation”. Adds 68 IAC 1-1-13.6 to define “casino licensee”. Adds 68 IAC 1-1-13.7 and 68 IAC 1-1-13.8 to comply with administrative rule numbering requirements. Amends 68 IAC 1-1-42 to apply to all casinos, not just riverboats. Amends 68 IAC 1-1-52 to make the definition of “institutional investor” more specific. Amends 68 IAC 1-1-57 to conform to the definitions contained in the commission’s license application. Amends 68 IAC 1-1-73 by eliminating executive director approval of a progressive jackpot before a casino can implement it. Amends 68 IAC 1-1-86 by conforming it to the definitions contained in the commission’s license application. Adds 68 IAC 6-1-0.5 to define three terms commonly used in 68 IAC 6. Amends 68 IAC 6-1-1 to add the term “operating agent” to the list of responsible parties and change outdated terminology. Amends 68 IAC 6-1-2 to simplify maintenance and distribution of the exclusion list. Amends 68 IAC 6-1-3 to clarify the process for placing an individual on the exclusion list. Amends 68 IAC 6-1-4 to detail notice of exclusion, explain the excluded person’s opportunity to petition for a hearing on the exclusion, and broaden availability of temporary exclusions. Adds 68 IAC 6-1-4.5 to create penalties for excluded patrons who violate their exclusion. Amends 68 IAC 6-1-5 to provide instructions on petitions for removal from the exclusion list. Adds 68 IAC 6-1-6 to explain the procedure for review of a petition for removal from the exclusion list. Adds 68 IAC 6-1-7 to explain appearances and service in the review process. Adds 68 IAC 6-1-8 to detail discovery procedures. Adds 68 IAC 6-1-9 to provide information on the conduct of review proceedings. Adds 68 IAC 6-1-10 to explain evidence procedure. Adds 68 IAC 6-1-11 to provide information on the standard of proof necessary to justify removal from the exclusion list. Adds 68 IAC 6-1-12 to explain the requirements for the record of a review proceeding and the presentation of the review officer’s recommendation. Adds 68 IAC 6-1-13 to provide sanctions and penalties for abusing the review petition process. Amends 68 IAC 13-1-1 concerning coverage of rule. Amends 68 IAC 13-1-3 concerning complaints. Amends 68 IAC 13-1-4 concerning answers. Amends 68 IAC 13-1-5 concerning appearances and service. Amends 68 IAC 13-1-6 concerning hearings. Amends 68 IAC 13-1-8 to eliminate unnecessary terminology and specify the source of discovery rules. Amends 68 IAC 13-1-14 concerning proceedings. Amends 68 IAC 13-1-15 concerning behavior. Amends 68 IAC 13-1-18 to give the executive director the authority to negotiate settlement with the opposing party. Amends 68 IAC 13-1-20 to refer to the Indiana Trial Rules. Amends 68 IAC 13-1-21 to add a penalty for late payment of fines. Amends 68 IAC 13-1-22 concerning special proceedings. Adds 68 IAC 13-2 to create a forfeiture, seizure, and civil penalty process to punish individuals who violate IC 4-33, IC 4-35, or 68 IAC. Amends 68 IAC 15-9-3 to eliminate surveillance requirements that contradict 68 IAC 12-1. Amends 68 IAC 15-14-3 to replace the term “training” with the term “audit” to more accurately reflect the workings of the commission staff. Makes numerous technical changes. Repeals 68 IAC 1-1-13.1, 68 IAC 1-1-13.2, 68 IAC 1-1-33, 68 IAC 1-1-34, 68 IAC 1-1-47, 68 IAC 13-1-7, 68 IAC 13-1-9, 68 IAC 13-1-10, 68 IAC 13-1-11, 68 IAC 13-1-12, 68 IAC 13-1-16, 68 IAC 13-1-17, and 68 IAC 13-1-19. Effective 30 days after filing with the Publisher.

SECTION 1. 68 IAC 1-1-13.4 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35-5

Sec. 13.4. "Casino" means any facility where gaming is conducted under the jurisdiction of the commission under IC 4-33 or IC 4-35.

SECTION 2. 68 IAC 1-1-13.5 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35-5

Sec. 13.5. "Casino gambling operation" means the conducting of gaming and all related activities, including, without limitation, the purveying of:

SECTION 3. 68 IAC 1-1-13.6 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 13.6. "Casino licensee" means any:

SECTION 4. 68 IAC 1-1-13.7 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 13.7. "Central computer system" means one (1) or more computer systems that meet the following requirements:

SECTION 5. 68 IAC 1-1-13.8 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 13.8. "Certificate of suitability" means a written document issued by the executive director that indicates that an applicant has been chosen for licensure if the applicant meets the requirements set forth in 68 IAC 2-1-5(e). A certificate of suitability is valid for a period of one hundred eighty (180) days unless extended by the commission.

SECTION 6. 68 IAC 1-1-42 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 42. "Gaming area" means the room or rooms on a riverboat casino in which gaming is conducted.

SECTION 7. 68 IAC 1-1-52 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 52. "Institutional investor" means any: of the following:

SECTION 8. 68 IAC 1-1-57 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 57. "Key person" means an: any:

SECTION 9. 68 IAC 1-1-73 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 73. "Progressive jackpot" means a value determined by application of an approved formula to the income of independent, local, or interlinked electronic gaming devices or live gaming devices. This value shall must be clearly displayed above the interlinked electronic gaming device, above or beside the live gaming device and metered incrementally by a progressive controller. A progressive electronic gaming device must prominently display a manufacturer-supplied glass indicating either that a progressive jackpot is to be paid or the current amount of the jackpot. Progressive jackpots may not be initiated without the prior consent of the executive director.

SECTION 10. 68 IAC 1-1-86 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 86. "Substantial owner" means the holder of at least any:

SECTION 11. 68 IAC 6-1-0.5 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 0.5. (a) This article applies to the following:

(b) The following definitions apply throughout this article:

SECTION 12. 68 IAC 6-1-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 1. (a) No An excluded person shall be permitted entry into any portion of a riverboat gambling operation. When a person is placed on the commission exclusion list by the executive director, such person shall be prohibited from entering any riverboat gambling operation in Indiana unless and until a determination is made by the commission or a court to the contrary. gaming areas.

(b) The riverboat A casino licensee or the riverboat licensee's agents shall exclude or eject operating agent must evict any excluded person from a riverboat gambling operation its gaming area if the riverboat casino licensee or the riverboat licensee's agents know operating agent knows or reasonably should know that the person is on the exclusion list. an excluded person.

(c) The riverboat A casino licensee or the riverboat licensee's agents shall operating agent must immediately inform the executive director or authorized an enforcement agent of the commission in writing of the names of persons that the riverboat licensee reasonably believes meet the criteria for placement on an exclusion list. the presence of an excluded person in any portion of its gaming area.

(d) This rule article does not preclude a riverboat casino licensee or operating agent from evicting or barring a person from its riverboat casino gambling operation for reasons deemed necessary by the riverboat licensee. any lawful reason. The riverboat casino licensee or operating agent may seek to have a person it has evicted or barred from its riverboat casino gambling operation placed on the exclusion list.

SECTION 13. 68 IAC 6-1-2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 2. (a) The commission shall executive director or the executive director's designee will maintain a the exclusion list. of persons to be ejected or excluded from a riverboat gambling operation. The executive director or executive director's designee must notify each casino licensee or operating agent under the jurisdiction of the commission of each addition to the list or deletion from the list in a timely manner.

(b) The exclusion list shall be is a public record. The list shall be distributed to each riverboat gambling operation which shall acknowledge receipt of the list in writing. The list may also be distributed to law enforcement agencies.

(c) The following information, to the extent known, shall be provided for each excluded person:

SECTION 14. 68 IAC 6-1-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 3. The executive director may place a person on the exclusion list pending a hearing If such there are facts and circumstances sufficient to cause a prudent person has to believe that a person:

SECTION 15. 68 IAC 6-1-4 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3-1; IC 4-33-4-7; IC 4-35-4-9

Sec. 4. (a) Upon a determination that a person comes under any of the criteria listed in should be excluded under section 3 of this rule, or IC 4-33, such person may be deemed a subject for exclusion and IC 4-33-4-7, or IC 4-35-4-9, the executive director shall file a or the executive director's designee must serve notice as described in IC 4-21.5-3-1, of the order of exclusion Such on the excluded person. The notice shall must include the following:

(b) An order of the executive director under section 3 of this rule:

(b) (c) A request person subject to an order of exclusion may petition the commission for a hearing under 68 IAC 7. Any petition for a hearing must be made within fifteen (15) days from the date the notice of exclusion was served. If the excluded person does not petition for a hearing within fifteen (15) days from the date of service of the notice of exclusion, the executive director's order of exclusion is a final order.

(c) When a person is excluded or ejected, such person is prohibited from further entering any riverboat gambling operation in Indiana unless and until a determination is made by the commission on the merits of a filed notice of exclusion or a requested hearing under IC 4-33-4-7. If a determination by the commission is examined under judicial review under IC 4-33-11-2 and IC 4-21.5, then the exclusion shall continue until the judicial review is completed unless otherwise ordered by the court.

(d) If the commission or a subsequent judicial review finds in favor of the subject for exclusion or excluded person, then the subject's name shall be removed from the exclusion list and the subject's exclusion shall be terminated as of the date of the action by the commission or the court. If the finding is against the subject for exclusion or the excluded person, the subject's name shall remain on the exclusion list. If no hearing is requested, the subject's name shall remain on the exclusion list.

(e) (d) If the notice of exclusion provides for a temporary exclusion, the executive director or the executive director's designee shall set the term of the temporary exclusion. In making this time determination, the executive director may consider the recommendation of the commission staff, but in no case shall A temporary exclusion must be less than six (6) months. A temporary exclusion or ejection shall only apply to those persons excluded or ejected for criteria related to conduct. All other exclusions or ejections shall be permanent. at least twelve (12) months in duration.

SECTION 16. 68 IAC 6-1-4.5 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 4.5. (a) An excluded person violates his or her exclusion by entering a gaming area.

(b) The commission or executive director may assess a civil penalty under 68 IAC 13-2 against any excluded person who violates his or her exclusion.

(c) Nothing in this article infringes upon the right of a casino licensee or operating agent to contact the pertinent law enforcement agency regarding criminal trespass by an excluded person.

SECTION 17. 68 IAC 6-1-5 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 5. (a) Any excluded person who has been placed on any exclusion list may petition the commission, in writing, and request that his or her name be removed from the exclusion list. The procedure outlined in this rule shall govern petitions

(b) The petition must:

(c) The executive director or the executive director's designee may:

(d) The executive director or the executive director's designee must deny a petition if it is submitted prior to the expiration of three (3) years from the effective date or from the conclusion of any hearing, appeal, or prior petition for removal associated with placement on the list, whichever occurs later.

(e) The executive director or the executive director's designee may reject a petition for removal from the exclusion list if:

(f) An excluded person whose petition for removal from the exclusion list has been rejected but not denied may cure the cause of the rejection, if possible, and resubmit the cured petition for removal at any time following the rejection as long as the excluded person is in compliance with all other applicable requirements under this article.

(g) A petitioner may not withdraw a request for removal from the exclusion list without leave of the executive director.

SECTION 18. 68 IAC 6-1-6 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 6. (a) Upon designating a petition for a review proceeding, the executive director must assign one (1) person to serve as review officer to conduct the review. The executive director, deputy director, and commission employees who are attorneys are eligible to serve as review officers.

(b) The review officer must schedule the review proceeding to occur no later than ninety (90) days from the receipt of the request for removal. The review officer must notify the petitioner in writing of the date, time, and place at which the review proceeding will be conducted.

(c) The review officer may grant continuances upon a showing of good cause.

SECTION 19. 68 IAC 6-1-7 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 7. A petitioner may represent himself or herself or be represented by an attorney or representative who is in compliance with 68 IAC 1-6.

SECTION 20. 68 IAC 6-1-8 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 8. The petitioner must provide the review officer with the following information at least fifteen (15) days before the date of the review:

SECTION 21. 68 IAC 6-1-9 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 9. (a) The burden of proof is at all times upon the petitioner. The petitioner has the affirmative responsibility of establishing that he or she is eligible for removal from the exclusion list.

(b) Any testimony must be given under oath or affirmation.

(c) The petitioner may present his or her case. The review officer may question:

(d) At the discretion of the review officer, the petitioner may present a closing argument. The review officer may restrict the length of the closing argument.

SECTION 22. 68 IAC 6-1-10 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 10. (a) Any relevant evidence not in the record from any previous hearing or review proceeding may be admitted and is sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules of evidence that may make improper the admission of such evidence over objection in a civil action.

(b) Hearsay may support a finding of the review officer if:

(c) The review officer may take official notice of any generally accepted information or technical or scientific matter within the field of gaming and any other fact that may be judicially noticed by the courts of Indiana. The petitioner must be:

SECTION 23. 68 IAC 6-1-11 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 11. (a) The commission may grant a petition for removal from the exclusion list if the petitioner demonstrates by clear and convincing evidence that the petitioner's admission to Indiana casinos would likely not:

(b) In determining whether an individual has fulfilled subsection (a), the review officer and the commission may consider any or all of the following factors:

(c) If the petitioner has not fulfilled subsection (a), the review officer must recommend denial of the individual's petition for removal.

SECTION 24. 68 IAC 6-1-12 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 12. (a) The record of the review proceeding must consist of the following, if applicable:

(b) Oral proceedings must be recorded, at the direction of the review officer, stenographically or by such other means as to adequately ensure the preservation of such testimony or oral proceedings, and may be transcribed at the request of the petitioner or the commission. The requesting party must pay for the transcript at the prevailing rate. The original transcript, if prepared, must be filed with the commission. A party that did not order the original transcript may obtain a copy of the transcript after paying the cost of copying.

(c) At the conclusion of the review, the review officer must issue written findings of fact and recommendations to the commission. Findings of fact may be based on any evidence in the record.

(d) The commission must issue its order in one (1) of the following manners:

(e) A copy of the final commission order must be served on petitioner by personal delivery or certified mail.

(f) The final commission order is effective upon:

SECTION 25. 68 IAC 6-1-13 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-33-4-7; IC 4-35-4-9

Sec. 13. (a) If the review officer finds that the petitioner has acted in bad faith, for the purpose of delay, or has otherwise abused the review proceeding process, the review officer may recommend denial of the petition on grounds of the abuse alone.

(b) If a petitioner fails to testify on his or her own behalf with respect to any question propounded to him or her, the review officer may infer therefrom that such testimony or answer would have been adverse to the petitioner.

(c) If the petitioner fails to answer a subpoena or refuses to testify fully at the request of the commission, such failure may be deemed independent grounds to recommend denial of the petition. The review officer may also infer therefrom that such testimony would have been adverse to the petitioner.

(d) The unexcused failure of the petitioner to appear at a review constitutes an admission of all matters and facts contained in the notice of placement on the exclusion list. In such case, the review officer may recommend action based upon such admission or upon any other evidence, including affidavits, without any further notice to the petitioner.

SECTION 26. 68 IAC 13-1-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3-9; IC 4-33; IC 4-35

Sec. 1. (a) All commission licensees have a continuing duty to maintain suitability for licensure. A commission license does not create a property right, but is a revocable privilege contingent upon continuing compliance and suitability for licensure.

(b) The commission may initiate an investigation or a disciplinary action, or both, against a licensee about whom if the commission has reason to believe at least one (1) of the following:

(c) The commission may initiate an investigation or a disciplinary action, or both, against a licensee that the commission has reason to believe has engaged in a fraudulent act.

(d) As used in this rule, article, "respondent" means the person against whom a disciplinary or seizure and forfeiture action has been initiated.

(e) The commission shall appoint an administrative law judge in accordance with IC 4-21.5-3-9 and IC 4-33-3-23 to conduct a hearing after a complaint has been filed under section 3 of this rule.

(f) The respondent shall submit an original and two (2) copies of any pleading or other written document submitted to the commission or the administrative law judge, or both.

(g) (e) The respondent and the commission must attach a certificate of service to each pleading. The certificate of service shall indicate indicates that the pleading has been served on each attorney or party of record.

(h) (f) A disciplinary action under this rule must also comply with IC 4-21.5-3.

SECTION 27. 68 IAC 13-1-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5; IC 4-33; IC 4-35

Sec. 3. (a) If the commission becomes aware of knows facts sufficient to support a seizure and forfeiture of a gaming device under the Act, and IC 4-35, or 68 IAC 2-6 or a disciplinary action against an applicant or a licensee under the Act, IC 4-35, or this title, the commission may, after investigation:

(b) The commission may initiate a seizure and forfeiture of a gaming device or a disciplinary action will be initiated by the filing of a complaint with the commission. under this rule.

(c) The complaint shall must meet the following requirements, if applicable:

SECTION 28. 68 IAC 13-1-4 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3-1; IC 4-21.5-3-24; IC 4-33; IC 4-35

Sec. 4. (a) The respondent shall must file an answer within twenty (20) days of service of the complaint.

(b) The respondent may submit an answer in accordance with IC 4-21.5-3-1.

(c) An answer shall must meet the following requirements:

(d) Default judgment or dismissal may result at any stage of the proceeding in accordance with IC 4-21.5-3-24. If a party fails to take action for which it is responsible for a period of sixty (60) days, default judgment shall must be entered against the party or the case shall must be dismissed.

SECTION 29. 68 IAC 13-1-5 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3-1; IC 4-21.5-3-15; IC 4-33; IC 4-35

Sec. 5. (a) A respondent may:

(b) Service shall of appearances must be made in accordance with 68 IAC 1-6-4(c). IC 4-21.5-3-1.

SECTION 30. 68 IAC 13-1-6 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 6. (a) A hearing conducted under this rule is:

(b) Hearings shall must be held in Indianapolis, Indiana, unless, for good cause stated in an open meeting, the commission designates another place for the hearing.

(c) Unless precluded by law or objected to by a party, the commission may allow informal disposition of a proceeding without a hearing, including, but not limited to, the following:

SECTION 31. 68 IAC 13-1-8 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 8. (a) Upon written request served on a party, the requesting party shall be entitled to the following:

(b) Discovery may be obtained in accordance with rule Pursuant to Trial Rule 28(F) of the Indiana Rules of Trial Procedure, Witnesses and documents responsive to a proper request for production that were not produced shall be excluded from the hearing and additional sanctions or penalties may be imposed. the discovery provisions of Trial Rules 26 through 37 apply to all proceedings subject to this rule.

(c) The parties shall make every effort to resolve disputes regarding discovery. Disputes that are unresolved may be brought to the administrative law judge for resolution via:

SECTION 32. 68 IAC 13-1-14 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 14. (a) The burden of proof is at all times on the commission. The commission shall have has the affirmative responsibility of establishing by a preponderance of the evidence that the:

(b) The respondent has the:

(c) Any testimony shall must be given under oath or affirmation. The administrative law judge or and recorder shall be are authorized to administer oaths.

(d) Both parties may present an opening statement on the merits. The commission proceeds first, followed by the respondent. The respondent may not reserve opening statement for a later time. The administrative law judge may determine the length of time each party is permitted for the presentation of an opening statement. statements.

(e) The commission shall must then present the commission's case-in-chief.

(f) Upon conclusion of the commission's case-in-chief, the respondent may move for a directed finding. The administrative law judge may:

(g) If:

(h) Each party may conduct cross-examination of adverse witnesses.

(i) Upon conclusion of the respondent's case, the commission may present evidence in rebuttal.

(j) The administrative law judge may:

(k) Both parties may present closing argument. The commission proceeds first, then the respondent, and, thereafter, the commission may present rebuttal argument. The administrative law judge may determine the length of time each party is permitted for the presentation of closing argument. arguments.

(l) The administrative law judge may require or allow the parties to submit posthearing briefs and or proposed findings of fact and conclusions of law, or both, within:

SECTION 33. 68 IAC 13-1-15 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 15. (a) Each party, witness, attorney, or other representative shall must behave in all commission hearings and proceedings with dignity, courtesy, and respect for:

(b) An individual who violates this section may be excluded from the hearing or proceeding by the commission member or administrative law judge.

SECTION 34. 68 IAC 13-1-18 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 18. (a) The parties may propose settlement offers to the administrative law judge, or the commission, or the executive director at any stage of the proceedings where time, the nature of the proceeding, and public interest permit. Such Settlement offers may be made at any time prior to the entry of a final disposition of the action, order, including prior to the initiation of the proceedings. The commission or the administrative law judge, the commission, or the executive director may require that any of the parties to the offer make an oral or written presentation to the administrative law judge, or the commission, or the executive director regarding the settlement offer.

(b) Settlement agreements shall must meet the following requirements:

(c) If the commission votes to reject or the executive director rejects a settlement offer, the commission shall direct or the executive director to must notify the parties in writing, by certified mail or personal delivery, that the settlement offer was rejected. The offer and any documents relating to the offer shall are not constitute a part of the record.

SECTION 35. 68 IAC 13-1-20 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 20. (a) The administrative law judge may impose sanctions and penalties if the administrative law judge finds that a party has acted in bad faith, for the purpose of delay, or has otherwise abused the hearing process. Such sanctions and penalties include, but are not limited to:

(b) If a respondent fails to testify on the respondent's own behalf with respect to any question propounded to that person, the administrative law judge may infer therefrom that such testimony or answer would have been adverse to the case of the party refusing to testify.

(c) If the respondent or its the respondent's agent fails to answer a subpoena or refuses to testify fully at the request of the commission, executive director or the executive director's designee, such failure may be deemed independent grounds for a finding that the:

(d) The unexcused failure of the respondent to appear at a hearing shall constitute constitutes an admission of all matters and facts contained in the notice of a seizure and forfeiture action or a disciplinary action, or both. In such case, the administrative law judge may take action based upon such admission or upon any other evidence, including affidavits, without any further notice to the respondent.

SECTION 36. 68 IAC 13-1-21 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 21. (a) The commission may take any of the following actions in an action a proceeding to seize and forfeit a gaming device:

(b) The commission may take any of the following actions in a disciplinary action against a licensee:

SECTION 37. 68 IAC 13-1-22 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-21.5-4; IC 4-33; IC 4-35

Sec. 22. (a) The commission may suspend a license issued to a riverboat casino licensee without notice or hearing if the commission determines that the safety or health of patrons or employees would be threatened by the continued operation of the riverboat. casino.

(b) If the commission determines that an emergency exists, the commission may suspend a riverboat casino owner's license, a supplier's license, or an occupational license by one (1) of the following procedures:

(c) A special proceeding under this section must comply with IC 4-21.5-4.

(d) The suspension of the riverboat casino owner's license may continue until the commission determines that the cause for the suspension of the license has been abated.

(e) The commission may revoke the riverboat casino owner's license if the commission determines that the riverboat licensee has not made satisfactory progress toward abating the hazard to the safety or health of patrons or employees within a reasonable period of time.

SECTION 38. 68 IAC 13-2 IS ADDED TO READ AS FOLLOWS:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 1. (a) If there are facts and circumstances sufficient to cause a prudent person to believe that an individual has committed a noncriminal violation of IC 4-33, IC 4-35, or this title, the commission may initiate an action for civil penalty against that individual for the violation.

(b) The civil penalty that the commission may seek for the violation of IC 4-33, IC 4-35, or this title must not exceed the greater of:

(c) The commission may order an additional penalty of not more than one hundred dollars ($100) for

(d) The commission may take any other action deemed necessary by the commission to ensure compliance with IC 4-33, IC 4-35, or this title.

(e) The commission must initiate the action by filing a complaint.

(f) The complaint must meet the following requirements:

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 2. In a hearing under this rule, the respondent is entitled to the following:

Affected: IC 4-21.5-3-1; IC 4-21.5-3-24; IC 4-33; IC 4-35

Sec. 3. (a) The respondent must file an answer within twenty (20) days of service of the complaint.

(b) The respondent may submit an answer in accordance with IC 4-21.5-3-1.

(c) An answer must meet the following requirements:

(d) Default judgment or dismissal may result at any stage of the proceeding in accordance with IC 4-21.5-3-24. If a party fails to take action for which it is responsible for a period of sixty (60) days, default judgment must be entered against the party or the case must be dismissed.

Affected: IC 4-21.5-3-1; IC 4-21.5-3-15; IC 4-33; IC 4-35

Sec. 4. A respondent may:

Affected: IC 4-33; IC 4-35

Sec. 5. (a) A hearing conducted under this rule is also subject to IC 4-21.5-3 and is open to the public. Witnesses may be excluded or sequestered.

(b) Hearings must be held in Indianapolis, Indiana, unless, for good cause stated in an open meeting, the commission designates another place for the hearing.

(c) Unless precluded by law or objected to by a party, the commission may allow informal disposition of a proceeding without a hearing, including, but not limited to, the following:

Affected: IC 4-33; IC 4-35

Sec. 6. Pursuant to Trial Rule 28(F) of the Indiana Rules of Trial Procedure, the discovery provisions of Trial Rules 26 through 37 apply to all proceedings subject to this rule.

Affected: IC 4-33; IC 4-35

Sec. 7. (a) A motion to continue a hearing or deposition must be made at least ten (10) days before the hearing or deposition date unless the requesting party can show good cause.

(b) Continuances may be granted by the administrative law judge upon a showing of good cause.

(c) The administrative law judge may order a continuance of a hearing on the administrative law judge's own initiative.

Affected: IC 4-33; IC 4-35

Sec. 8. (a) Each party, witness, attorney, or other representative must behave in all commission hearings and proceedings with dignity, courtesy, and respect for:

(b) An individual who violates this section may be excluded from the hearing or proceeding by the commission member or administrative law judge.

Affected: IC 4-33; IC 4-35

Sec. 9. (a) The parties may propose settlement offers to the administrative law judge, the commission, or the executive director at any stage of the proceedings where time, the nature of the proceeding, and public interest permit. Settlement offers may be made at any time prior to the entry of a final order, including prior to the initiation of the proceedings. The administrative law judge, the commission, or the executive director may require that any of the parties to the offer make an oral or written presentation to the administrative law judge, the commission, or the executive director regarding the settlement offer.

(b) Settlement agreements must meet the following requirements:

(c) If the commission or the executive director rejects a settlement offer, the commission or the executive director must notify the parties in writing, by certified mail or personal delivery, that the settlement offer was rejected. The offer and any documents relating to the offer are not a part of the record.

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 10. (a) The administrative law judge may impose penalties as outlined in Indiana Rules of Trial Procedure 26 through 37 and IC 4-21.5-3.

(b) If a respondent fails to testify on the respondent's own behalf with respect to any question propounded to that person, the administrative law judge may infer therefrom that such testimony or answer would have been adverse to the case of the party refusing to testify.

(c) If the respondent or the respondent's agent fails to answer a subpoena or refuses to testify fully at the request of the commission, such failure may be deemed independent grounds for a finding that the respondent should be penalized. The administrative law judge may also infer therefrom that such testimony would have been adverse to the respondent.

(d) The unexcused failure of the respondent to appear at a hearing constitutes an admission of all matters and facts contained in the complaint. In such case, the administrative law judge may take action based upon such admission or upon any other evidence, including affidavits, without any further notice to the respondent.

Affected: IC 4-21.5-3; IC 4-33; IC 4-35

Sec. 11. (a) The burden of proof is at all times on the commission. The commission has the affirmative responsibility of establishing by a preponderance of the evidence that the:

(b) The respondent has the:

(c) Any testimony must be given under oath or affirmation. The administrative law judge and recorder are authorized to administer oaths.

(d) Both parties may present an opening statement on the merits. The commission proceeds first, followed by the respondent. The respondent may not reserve opening statement for a later time. The administrative law judge may determine the length of opening statements.

(e) The commission must then present the commission's case-in-chief.

(f) Upon conclusion of the commission's case-in-chief, the respondent may move for a directed finding. The administrative law judge may:

(g) If:

(h) Each party may conduct cross-examination of adverse witnesses.

(i) Upon conclusion of the respondent's case, the commission may present evidence in rebuttal.

(j) The administrative law judge may:

(k) Both parties may present closing argument. The commission proceeds first, then the respondent, and, thereafter, the commission may present rebuttal argument. The administrative law judge may determine the length of closing arguments.

(l) The administrative law judge may require or allow the parties to submit posthearing briefs, or proposed findings of fact and conclusions of law, or both, within:

SECTION 39. 68 IAC 15-9-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 3. (a) The riverboat casino licensee shall or operating agent must establish policies and procedures in connection with the removal, collection, and counting of the tip box contents for subsequent distribution to gaming occupational licensees. These policies and procedures shall must include, at a minimum, the following:

(b) The riverboat casino licensee shall or operating agent must establish procedures for the emptying of full tip box containers during the day. The procedures shall must include, at a minimum, the following:

SECTION 40. 68 IAC 15-14-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-33; IC 4-35

Sec. 3. An independent certified public accountant or independent certified public accounting firm selected to perform a financial statement audit shall must agree to abide by the following conditions of engagement, which shall must be stated in a written agreement with the riverboat licensee to perform the audit:

SECTION 41. THE FOLLOWING ARE REPEALED: 68 IAC 1-1-13.1; 68 IAC 1-1-13.2; 68 IAC 1-1-33; 68 IAC 1-1-34; 68 IAC 1-1-47; 68 IAC 13-1-7; 68 IAC 13-1-9; 68 IAC 13-1-10; 68 IAC 13-1-11; 68 IAC 13-1-12; 68 IAC 13-1-16; 68 IAC 13-1-17; 68 IAC 13-1-19.

DIN: 20090114-IR-068080430FRA

Composed: Apr 29,2024 10:51:21AM EDT

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