24 NCAC | Title 24 NCAC — Independent Agencies

Chapter 01 NC Housing Finance Agency

Subchapter A

24 NCAC 01A .0101 General Information {#sec-24-ncac-01a-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0101}

The following is general information about the North Carolina Housing Finance Agency:

(1) The chief officers are the chairman, vice-chairman, executive director, and secretary.

(2) The mailing address is P. O. Box 28066, Raleigh, North Carolina 27611.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. July 1, 1983
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01A .0102 Purposes: Functions: Duties {#sec-24-ncac-01a-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0102}

History

Status: expired
Authority G.S. 122A-2; 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01A .0103 Composition of Board of Directors {#sec-24-ncac-01a-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0103}

History

Status: repealed
Authority G.S. 122A-4; 122A-5
Eff. May 28, 1976
Amended Eff. February 1, 1982; February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. July 1, 1988.

24 NCAC 01A .0104 Definitions {#sec-24-ncac-01a-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0104}

The following words and terms, unless their context shall clearly indicate a different definition, shall be defined and mean as follows:

(1) "Act" shall mean Chapter 122A of the General Statutes of North Carolina, being known as the "North Carolina Housing Finance Agency Act."

(2) "Agency" shall mean the North Carolina Housing Finance Agency.

(3) "Applicant" shall mean a natural person or corporation or other appropriate legal entity making application to the agency to receive agency monies, assistance, or services under the act.

(4) "Application" means a request for agency assistance under the act made on forms provided by the agency.

(5) "Board of directors" shall mean the members of the Board of Directors of the North Carolina Housing Finance Agency constituted pursuant to North Carolina G.S. 122A-4.

(6) "Executive director" shall mean the person serving as Executive Director of the North Carolina Housing Finance Agency pursuant to North Carolina G.S. 122A-4.

(7) "Deed of trust" shall mean a mortgage deed, deed of trust or other security instrument which shall constitute a first lien in the state on real property and improvements.

(8) "VA" shall mean Veteran's Administration.

(9) "FHA" shall mean Federal Housing Administration.

(10) "FNMA" shall mean the Federal National Mortgage Association.

(11) "FHLMC" shall mean the Federal Home Loan Mortgage Corporation.

(12) "Lender" shall mean any financial institution which is an FHA or VA approved mortgagee, or an approved seller-servicer of FNMA or FHLMC, and which is authorized to do business in the State of North Carolina.

(13) "Mortgage loan" shall mean an interest-bearing obligation secured by a deed of trust for financing the ownership by a person or family of single family residential housing occupied by such person or family as its primary residence.

(14) "Mortgagor" shall mean the original borrower under a mortgage loan and the heirs, executors, administrators and assigns.

(15) "Qualified insurer" shall mean any private mortgage insurer approved by the agency and qualified to provide insurance on mortgage loans purchased by the FHLMC or FNMA.

(16) "Rural Areas" shall include rural counties and rural cities. Rural counties are counties which are not part of a Metropolitan Statistical Area (MSA) or do not contain at least one third of the population of a city with a population in excess of 20,000. Rural cities are incorporated cities containing less than 10,000 people.

(17) "Urban Areas" shall include urban counties and urban cities. Urban counties are counties which are part of a Metropolitan Statistical Area (MSA) or counties containing more than one third of the population of an incorporated city with a population in excess of 20,000. Urban cities are incorporated cities of 10,000 or more, and for purposes of financing using agency proceeds, the extraterritorial planning district of an urban city will be considered as part of the urban city for income limit determination.

(18) "Metropolitan Cities" shall include incorporated cities of 100,000 or more population; and for purposes of financing using agency proceeds, the extraterritorial planning district of a metropolitan city and the Metropolitan Statistical Area (MSA) in which the metropolitan city is located, will be considered as part of the metropolitan city for income limit determination.

(19) "Distressed Counties" shall mean those counties in the Appalachian region of the state that have been designated by the Appalachian Regional Commission (ARC) as priority areas for funding consideration in the state's annual investment program, based on per capita income, unemployment, poverty, and infant mortality rates.

(20) "Subsidized Housing Program" shall mean housing that receives federal and/or state assistance in any form, in addition to tax-exempt bond financing.

(21) "Unsubsidized Housing Program" shall mean housing that receives no federal and/or state assistance other than tax-exempt bond financing.

(22) "Mobile Home" shall mean a multi-section manufactured home conforming to either applicable state or local building codes or the Federal Mobile Home Construction and Safety Standards (Title VI, Housing and Community Development Act of 1974) with a minimum width of 20 feet, a roof pitch of 2 inches per 12 inches, constructed with aluminum, wood or brick exterior facade which is permanently affixed to a permanent foundation with a grade level beneath the mobile home at or above the 100 year return frequency flood elevation, which is located on an individually owned lot or in a condominium, PUD or DeMinimus PUD subdivision and which is taxed as real estate, not personal property. For the purpose of this definition, permanently attached shall mean that the towing hitch or running gear, including the wheels and axles, has been removed from the mobile home and the home has been permanently affixed to a conventional foundation (including basement, crawl space and slab types of foundations) or permanently affixed to piers and ports with a perimeter skirting in geographic areas of North Carolina in which piers and ports are typical, as evidenced by a real estate appraisal, and the piers and ports are located below the normal frost line. Words and terms defined in the act have the same meaning when used in these Rules and Regulations as are ascribed to them in the act, and the definitions in the act of such words and terms are incorporated herein by reference.

History

Authority G.S. 122A-3; 122A-5
Eff. May 28, 1976
Amended Eff. July 2, 1981
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. September 1, 1984; March 1, 1984; May 1, 1983
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01A .0105 Forms {#sec-24-ncac-01a-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0105}

From time to time, the board of directors of the agency shall approve and adopt for purposes of the agency, forms relevant to any lawful activities of the agency, including forms designed to effect the purchase by the agency of a mortgage loan under the agency's single family mortgage purchase program described in Subchapter 14D of this Chapter. Agency forms shall be accompanied by descriptive procedures for the proper execution thereof, and said forms shall be followed by all persons and mortgage lenders doing business with the agency. The executive director of the agency shall make annual or more frequent review of said forms and subsequent to said review shall make recommendations to the board relative to the modification, revision, enlargement or replacement of said forms.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Subchapter B

24 NCAC 01B .0101 Rule-Making and Administrative Hearing Procedures {#sec-24-ncac-01b-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0101}

History

Status: repealed
Authority G.S. 122A-5; 150B-12; 150B-14; 150B-23
Eff. May 28, 1976
Amended Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984; July 1, 1983; February 1, 1982
Repealed Eff. July 1, 1988.

24 NCAC 01B .0102 Declaratory Rulings {#sec-24-ncac-01b-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0102}

History

Status: repealed
Authority G.S. 150A-17; 122A-5
Eff. May 28, 1976
Amended Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Repealed Eff. February 1, 1982.

24 NCAC 01B .0103 Contested Case Hearings {#sec-24-ncac-01b-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0103}

History

Status: repealed
Authority G.S. 150A-23; 122A-5
Eff. May 28, 1976
Amended Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Repealed Eff. February 1, 1982.

24 NCAC 01B .0104 Declaratory Rulings {#sec-24-ncac-01b-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0104}

History

Status: expired
Authority G.S. 122A-5; 150B-17
Eff. February 1, 1989
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01B .0105 Petitions for Rulemaking {#sec-24-ncac-01b-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0105}

History

Status: expired
Authority G.S. 122A-5; 150B-12; 150B-16
Eff. August 1, 1989
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

Subchapter C

24 NCAC 01C .0101 Modification or Repeal {#sec-24-ncac-01c-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01C .0101}

History

Status: repealed
Authority G.S. 150B-12; 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Repealed Eff. July 1, 1988.

24 NCAC 01C .0102 Severability {#sec-24-ncac-01c-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01C .0102}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

Subchapter D

24 NCAC 01D .0101 Objectives {#sec-24-ncac-01d-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0101}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Temporary Amendment Eff. December 30, 1981, For a Period of 120 Days to Expire on April 29, 1982
Amended Eff. April 29, 1982
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0102 Eligible Persons and Families {#sec-24-ncac-01d-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0102}

(a) For loans purchased with the proceeds of all bonds other than tax exempt bonds issued after January 1, 1987:

(1) The agency hereby finds and declares that income eligible persons and families, within the meaning of the act, are deemed to be those persons and families who satisfy the following criteria: insufficient total income, when size of family is considered, to obtain on the normal housing market without subsidy, from available housing supply in a given geographical area of residence in North Carolina, housing found to be decent, safe and sanitary. The agency has carefully considered all the factors which the General Assembly has specified in the statutory definition of "persons and families of lower income." A purpose of the act is to foster the new construction and substantial rehabilitation of residential housing in the state for persons and families of lower income by assisting in the permanent financing of such housing and that the income limits used by the agency in ascertaining who are "persons and families of lower income" must reflect, among other things, the costs of such newly constructed and substantially rehabilitated housing. The General Assembly intended, by means of the act, to assist not only those persons and families eligible for federal housing assistance predicated on a lower income basis, but also those persons and families whose incomes are too high to qualify them for such federal assistance but are too low to enable them to obtain, without governmental assistance, a mortgage loan to finance the purchase of a decent, safe and sanitary home. The agency can best effectuate the purposes of the act by establishing income limits for income eligible persons and families for specific areas of the state which represent the agency's determination of the maximum income level which persons and families in such area may have in order to qualify for assistance under the act. Income eligibility is defined as a function of median income by area, construction costs, and mortgage loan underwriting criteria. Each factor is applied as follows to achieve an equitable result:

(A) The agency used 150 percent of median income.

(B) Housing construction costs were determined for a prototype of a modest house in various areas of the state. The Marshall Swift Handbook was used to establish the base construction costs. Finally, minimum lot costs in rural and urban areas were added to the construction cost determinations to produce a finished housing cost for urban areas and for rural areas.

(C) Mortgage lending industry underwriting standards which establish the amount of loan for which a borrower may qualify will be used by the agency. The agency assumes that the borrower would seek 100 percent financing at the FHA/VA maximum rate on a 30 year amortization and that the borrower would be restricted to using 28 percent of his gross monthly income to make the monthly mortgage payment which would include principal interest, taxes and insurance.

(D) Composite figures for median income and for housing cost and mortgage loan underwriting were calculated upon the following premises:

(i) The median income factor relates to eligibility for other housing predicated upon a lower income basis.

(ii) The house cost/underwriting figure establishes minimum financial eligibility in the normal housing market.

The combination of the two figures at a 50:50 ratio establishes the maximum income limits for the agency.

(2) The agency has, in accordance with the act, considered the effect of family size on the sufficiency of income for housing needs and determined that the income limits computed in accordance with this Section must be increased by eight hundred dollars ($800.00) a year for the fifth family member and for each additional family member thereafter in a large lower income family in order to reflect the additional costs of providing housing for large families, and that the income limits for one person households shall be three-fourth of such limits, except when two or more persons in a non-dependent relationship are jointly purchasing a home, the income of any one person in this relationship cannot exceed the one-person household limit established by the agency, nor can the combined incomes of these persons exceed the income limits for families established by the agency.

(3) An applicant's income will be calculated by including all income in whatever form and from whatever source derived, including the following: compensation for services, including fees, commissions and similar items; gross income derived from business; gains derived from dealings in property; interest; rents royalties; dividends; alimony and separate maintenance payments; annuities; income from life insurance and endowment contracts; pensions; income from discharge of indebtedness; distributive share of partnership income; income in respect of a descendant; income from an interest in an estate or trust; payments made by or on behalf of an employer by reason of death of an employee to the widow or heirs of the employee; recovery of bad debts; amounts received as reimbursement for losses; prizes and awards; amounts received or made available from individual retirement accounts, annuities and retirement bonds. In addition, the calculation of an applicant's income for this purpose will be increased by an amount equal to ten percent of the value of all the applicant's non-income producing tangible assets, excepting personal property and including real property, securities and stocks.

(b) For loans purchased with the proceeds of tax exempt bonds issued after January 1, 1987 income eligible persons and families is defined by the agency to be those persons and families with incomes not exceeding the income requirements for mortgage revenue bonds established in Section 143(f) of the Internal Revenue Code 1986.

(1) The sources used in calculating an applicant's income will be determined according to the rules established by the Internal Revenue Service in Revenue Ruling 86-124.

(c) In no instance will any person or family having net assets exceeding forty thousand dollars ($40,000) be considered eligible for assistance by the agency, except that for persons between the ages of 62 and 64, the net assets limit shall be fifty thousand dollars ($50,000), for persons 65 years of age and over, the net assets limits shall be sixty thousand dollars ($60,000), and for handicapped persons requiring a constant attendant the net assets limit shall be seventy five thousand dollars ($75,000). For the purposes of this Section, "net assets" shall mean the total assets of the borrower and excluding household goods, in the Home Improvement Loan Program, the structure to be improved and its site, any debts against the borrower and excluding also, any assets of a borrower determined by the executive director to be appropriate for exclusion, including, without limitation, assets which in the determination of the executive director the borrower is dependent upon for a livelihood. Any such determination that assets are appropriate for exclusion shall be evidenced by a certificate signed by the executive director and filed with the secretary of the agency.

(d) The agency deems that persons and families with annual incomes not in excess of the income limits established by application of the above definitions and with net assets not more than those set forth above, are persons and families which require such assistance as is made available by the act and such persons and families are hereby deemed, therefore, to be persons and families of lower income eligible to occupy residential housing financed by means of such assistance.

History

Authority G.S. 122A-3; 122A-5; 122A-5.1
Eff. May 28, 1976
Amended Eff. July 2, 1981; January 31, 1980; March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1983
Legislative Objection Lodged Eff. March 7, 1983
Curative Amended Eff. March 9, 1983
Amended Eff. July 1, 1987; March 1, 1984; May 1, 1983
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0103 Persons and Families of Moderate Income {#sec-24-ncac-01d-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0103}

History

Status: repealed
Legislative Objection Lodged Eff. March 7, 1983
Filed as a Temporary Amendment Eff. December 30, 1981, For a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-3; 122A-4; 122A-5.1
Eff. May 28, 1976
Amended Eff. July 2, 1981; May 15, 1980; January 31, 1980; March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1983; April 29, 1982
Curative Amended Eff. March 9, 1983
Amended Eff. March 1, 1984; May 1, 1983
Repealed Eff. June 1, 1987.

24 NCAC 01D .0104 Income Limits {#sec-24-ncac-01d-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0104}

Based on the criteria described in Rules .0102 and .0103 of this Subchapter the agency shall from time to time as it is determined to be appropriate, specify by resolution the dollar income limits which shall be used by the agency for identifying persons and families of lower and moderate income.

History

Authority G.S. 122A-5
Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Eff. April 29, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0201 Eligible Borrower {#sec-24-ncac-01d-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0201}

To be eligible for a mortgage loan, under the forward commitment segment of the program, each applicant must meet all of the following requirements:

(1) be a person or family of lower income as defined in this Subchapter;

(2) intend to use the home to be purchased for his primary personal or family residence;

(3) have no previous mortgage loan in effect at the time of application. At closing, the applicant must not be obligated on any other mortgage loan;

(4) have not owned a home within the preceding three years;

(5) meet all of the requirements of Section 103A of the Internal Revenue Code of 1954, as amended.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. July 2, 1981
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0202 Eligible Properties {#sec-24-ncac-01d-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0202}

(a) In order to be the subject of a mortgage made to secure a mortgage loan under both segments of the program, a home must meet the following requirements:

(1) be located in the State of North Carolina;

(2) be situated on real estate held or to be held by the applicant in fee simple, unless the home is a condominium unit, in which case it must be situated on real estate held, or to be held, by the applicant in either fee simple, or in common, and managed by a homeowners' association;

(3) a mobile home as defined by 24 NCAC 1A .0104(22) which has not been previously occupied;

(4) meet all the requirements of Section 103A of the Internal Revenue Code of 1954, as amended.

(b) For an agency assisted mortgage loan under the forward commitment segment of this program, the home must meet the following requirements in addition to those located in (a) of this Rule:

(1) have a sales price not exceeding amounts determined by the agency, including the lot and all improvements thereon;

(2) in the event the mortgage loan is to finance the purchase of a newly constructed home, be constructed in accordance with all applicable building codes and standards and be warranted by the builder as to all materials, workmanship, and mechanicals for a minimum period of one year;

(3) be appraised by an appraiser satisfactory to the agency.

(c) Special Rules for Mobile Homes. In order to be the subject of a mortgage made pursuant to this Subchapter, a mobile home must:

(1) be the subject of an appraisal indicating the manufacturer, model, and serial number of the mobile home; and

(2) have an appraised value, including the mobile home unit and improvements only, which exceeds 50 percent of the total appraised value of the mobile home, improvements, and the real estate on which the mobile home is permanently affixed.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. July 2, 1981; January 31, 1980; March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Temporary Amendment Eff. May 26, 1983, for a Period of 120 days to Expire on September 23, 1983
Amended Eff. March 1, 1984; August 1, 1983
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0203 Form of Mortgages to Be Purchased by the Agency {#sec-24-ncac-01d-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0203}

The mortgage to be purchased by the agency under the forward commitment segment of the program shall be executed on a form approved by the agency. It shall be a first lien on the property, be consistent with North Carolina law, and conform with the standards prescribed by the agency in its mortgage purchase agreements and other forms.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0204 Compliance with Tax Act {#sec-24-ncac-01d-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0204}

Mortgages to be purchased by the agency shall in all respects comply with Section 103A of the Internal Revenue Code of 1954, as amended.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. July 1, 1981; January 31, 1980; March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0301 Eligible Lender Contract Forms {#sec-24-ncac-01d-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0301}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0302 Reinvestment Mortgage Interest Rate {#sec-24-ncac-01d-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0302}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0303 Servicing Agreement {#sec-24-ncac-01d-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0303}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0304 Additional Documentation {#sec-24-ncac-01d-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0304}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0305 Forms to Accompany Mortgage Loans Approved by the Agency {#sec-24-ncac-01d-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0305}

(a) Mortgage Loan Documentation. The mortgage loan note and Deed of Trust shall be executed on forms approved by the agency and the mortgage loan shall state that the mortgage loan is being made by the lender pursuant to the agency's single family mortgage purchase program. FHLMC or FNMA loan package forms (other than note and Deed of Trust) are acceptable for agency use; they are to be conformed, where necessary as to names of parties.

(b) At or prior to the delivery to the agency of mortgage loans purchased by the agency, the lender shall forward to the agency:

(1) mortgage loan note;

(2) deed of trust;

(3) title insurance policy;

(4) mortgagor's certification as to lower income status;

(5) evidence of mortgage insurance consisting of:

(A) Mortgage insurance certificate issued by qualified insurer, or

(B) FHA mortgage insurance certificate showing FHA number for loan and applicable section of National Housing Act, or

(6) deed of assignment of deed of trust;

(7) mortgage loan origination documentation including:

(A) mortgage loan application,

(B) verification of mortgagor's employment,

(D) credit report,

(E) appraisal report;

(8) a photograph of the house;

(9) such other documentation as shall be requested by the executive director.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. March 22, 1979
Transferred from T15: 14 Eff. December 1, 1981
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0401 Allocation of Funds {#sec-24-ncac-01d-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0401}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0402 Fair Opportunity to Participate {#sec-24-ncac-01d-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0402}

The agency, recognizing that the need for assistance to home buyers (as contemplated by the act) is very great and further recognizing that the agency funds available to meet that need are small in comparison to that need, will use its best efforts to spread its available funds throughout the state in an equitable manner designed to insure that all areas of the state have a fair opportunity to participate in the program.

History

Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0501 Creation of Fund {#sec-24-ncac-01d-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0501}

History

Status: expired
Authority G.S. 122A-5.7
Temporary Rule Eff. May 15, 1984, for a Period of 120 Days, to Expire on September 12, 1984
Eff. August 1, 1984
Amended Eff. December 1, 1989; June 1, 1987
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0502 Eligibility {#sec-24-ncac-01d-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0502}

(a) The fund will be available to assist income eligible households as defined in Rule .0102 of this Subchapter, who would be unable to receive subsidized loans from the agency.

(b) The fund may also provide mortgage assistance to eligible households through organizations that aid in the production of housing that is affordable to income eligible households described in Paragraph (a) of this Rule. This alternative permits participating organizations to provide mortgage loans to eligible households using the proceeds of the fund received from the agency.

(c) The agency may, from time to time, designate specific counties within the state to receive portions of the proceeds from the fund for the purpose of assisting eligible households.

History

Authority G.S. 122A-5.7
Temporary Rule Eff. May 15, 1984, for a Period of 120 Days, to Expire on September 12, 1984
Eff. August 1, 1984
Amended Eff. December 1, 1989; June 1, 1987; January 1, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0503 Fund Operation and Administration {#sec-24-ncac-01d-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0503}

(a) The agency will establish a separate Homeownership Assistance Fund consisting of appropriations, agency revenues or other funds allocated to the fund.

(b) The agency will not expend any of the state appropriated corpus of the fund but will invest the state appropriated corpus of the fund and will provide mortgage assistance from the proceeds of the invested corpus. Any other amounts allocated to the fund may be fully expended, both corpus and interest, or may be withdrawn from the fund by the agency for other eligible activities.

(c) The agency will select applicants for participation in the Homeownership Assistance Program. Eligible participants will receive a mortgage loan from the agency or a participating organization from the proceeds of the fund. As determined by the agency, this loan may be used to provide additional security for eligible loans, to subsidize down payments and monthly housing payments (including first mortgage principal and interest, mortgage insurance, homeowner's insurance and taxes), and to provide any other type of mortgage assistance to participants that the agency deems necessary. The amount of this loan will be determined by the agency, in its discretion, considering such factors as the income of the households to be served.

(d) The agency shall promulgate such forms, contracts, and other documents including but not limited to: deeds of trust, promissory notes, mortgage purchase agreements, and loan agreements as may be necessary to operate the Homeownership Assistance Program financed from proceeds of the fund.

History

Authority G.S. 122A-5.7
Temporary Rule Eff. May 15, 1984, for a Period of 120 Days, to Expire on September 12, 1984
Eff. August 1, 1984
Amended Eff, December 1, 1989; June 1, 1987
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0601 Purpose {#sec-24-ncac-01d-.0601 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0601}

History

Status: expired
Authority G.S. 122A-5; 122A-5.1; 122A-5.4; 122A-5.6; Sec. 25, IRC; 26 CFR 1.25
Temporary Adoption Eff. September 22, 1987 for a Period of 120 Days to Expire on January 20, 1988
Eff. January 1, 1988
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01D .0602 Eligibility {#sec-24-ncac-01d-.0602 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0602}

To receive an MCC the following requirements must be met:

(1) The purchaser must be a North Carolina resident and within 30 days of closing must occupy the home purchased as a principal residence.

(2) The purchaser must be a first-time home buyer and cannot have had an ownership interest in a principal residence during the three-year period preceding the execution of the MCC, except in certain targeted areas where the requirement will not apply.

(3) The purchaser must buy a home located in North Carolina which has an acquisition cost not exceeding 90 percent of the average area purchase price published by the Department of Treasury, except in certain targeted areas where 110 percent of the average area purchase price may be allowed.

(4) The purchaser must not have family income exceeding 115 percent of the applicable median family income published by the Department of Housing and Urban Development, except in certain targeted areas where 140 percent of the median family income may be allowed.

(5) The purchaser must secure new financing and must receive an MCC commitment prior to mortgage closing; the purchaser cannot finance the home with the proceeds of a qualified mortgage bond or qualified veterans' mortgage bond.

These requirements are described in greater detail in the MCC Program Operating Manual.

History

Authority G.S. 122A-5; 122A-5.1; 122A-5.4; 122A-5.6; Sec. 25, IRC; 26 CFR 1.25
Temporary Adoption Eff. September 22, 1987 for a Period of 120 Days to Expire on January 20, 1988
Eff. January 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0603 Procedures {#sec-24-ncac-01d-.0603 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0603}

(a) The agency will have overall administrative responsibility for the MCC program in North Carolina and will delegate part of its administrative role to participating lenders through a Lender Participation Agreement. Lender responsibilities will include:

(1) Program promotion;

(2) Loan origination and MCC application origination;

(3) Loan underwriting;

(4) Submission of the completed MCC application to the agency;

(5) Loan closing; and

(6) Record keeping and report filing.

These requirements are described in greater detail in the Lender Participation Agreement and the MCC Program Operating Manual.

(b) Eligible home buyers will apply for Mortgage Credit Certificates in conjunction with a standard loan application with a participating lender. MCC processing will generally coincide with the lender's regular credit under-writing procedures. In addition, the borrower must certify that required state and federal regulations will be met. These requirements, which are described in greater detail in Section 143 of the Internal Revenue Code and the MCC Program Operating Manual, relate to:

(1) Residency requirements;

(2) First-time home ownership;

(3) Purchase price limits;

(4) Borrower income limits;

(5) Loans in targeted areas; and

(6) Certain loan financing requirements.

(1) The residence for which the MCC was used ceases to be the MCC certificate holder's principal residence; or

(2) The borrower does not meet the requirements for a qualified MCC; or

(3) On the discovery of any material misstatement.

(d) The following reporting requirements will be met:

(1) The agency will make quarterly reports to the Internal Revenue Service (IRS) as well as an annual report on forms provided by the IRS. These reports will provide information concerning the annual volume of MCCs issued and concerning program beneficiaries.

(2) Lenders will file an annual report to the IRS on forms provided by the IRS for each MCC - assisted mortgage.

History

Authority G.S. 122A-5; 122A-5.1; 122A-5.4; 122A-5.6; Sec. 25, IRC; 26 CFR 1.25
Temporary Adoption Eff. September 22, 1987 for a Period of 120 Days to Expire on January 20, 1988
Eff. January 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01D .0604 Mcc Commitment {#sec-24-ncac-01d-.0604 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0604}

To reserve an MCC for a borrower and secure a commitment from the agency, the following procedure will be followed:

(1) The lender will reserve an MCC by calling the agency;

(2) An MCC submission package, which is described in the MCC Program Operating Manual, will be delivered to the agency for an MCC commitment;

(3) The agency will process the package on a first-come, first-served basis. An exception to this policy will be made only for emergency cases in which the agency received a written request for priority processing from the lender;

(4) The agency will review the MCC package for acceptability and completeness and, if it approves the package, the agency will issue an MCC commitment that will be valid for a specified period of time;

(5) MCC commitments are issued based upon the lender's certification that all necessary requirements have been met. The lender must notify the agency of any changes affecting the conditions under which the commitment was issued.

History

Authority G.S. 122A-5; 122A-5.1; 122A-5.4; 122A-5.6; Sec. 25, IRC; 26 CFR 1.25
Temporary Adoption Eff. September 22, 1987, for a Period of 120 Days to Expire on January 20, 1988
Eff. January 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Subchapter E

24 NCAC 01E .0101 Federal Leased Housing Programs {#sec-24-ncac-01e-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01E .0101}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01E .0102 Actions in Accordance with Federal Regulations {#sec-24-ncac-01e-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01E .0102}

History

Status: expired
Authority G.S. 122A-5
Eff. May 28, 1976
Transferred from T15: 14 Eff. December 1, 1981
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

Subchapter F

24 NCAC 01F .0101 Purpose of Assistance {#sec-24-ncac-01f-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0101}

History

Status: repealed
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0102 Background of Assistance {#sec-24-ncac-01f-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0102}

History

Status: repealed
Authority G.S. 122A-5
Eff. May 28, 1976
Amended Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0201 Project Planning Loans {#sec-24-ncac-01f-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0201}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0202 Site Development and Off-Site Improvements Grants {#sec-24-ncac-01f-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0202}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0203 Technical Assistance Grants {#sec-24-ncac-01f-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0203}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0301 Eligible Housing Programs {#sec-24-ncac-01f-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0301}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0302 Eligible Counties {#sec-24-ncac-01f-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0302}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0401 State Appalachian Development Plan {#sec-24-ncac-01f-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0401}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0402 Identification in Annual Investment Program {#sec-24-ncac-01f-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0402}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0403 Approval of Individual Projects {#sec-24-ncac-01f-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0403}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0501 Duties and Functions of State Implementing Agency {#sec-24-ncac-01f-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0501}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0502 Requirements for Accounting: Audits: and Reports {#sec-24-ncac-01f-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0502}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0503 Reports on Disposition of Funds {#sec-24-ncac-01f-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0503}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01F .0504 Waiver of Loan Repayment {#sec-24-ncac-01f-.0504 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0504}

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

History

Status: repealed
Authority G.S. 122A-5
Eff. June 16, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

Subchapter G

24 NCAC 01G .01 Purpose {#sec-24-ncac-01g-.01 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .01}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .02 Method {#sec-24-ncac-01g-.02 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .02}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .03 Loan Terms {#sec-24-ncac-01g-.03 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .03}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .04 Certifications {#sec-24-ncac-01g-.04 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .04}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .05 Persons and Families of Lower Income {#sec-24-ncac-01g-.05 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .05}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .06 Reports {#sec-24-ncac-01g-.06 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .06}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .07 Guaranty {#sec-24-ncac-01g-.07 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .07}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .08 Default {#sec-24-ncac-01g-.08 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .08}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .09 Proof of Loss {#sec-24-ncac-01g-.09 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .09}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .10 Claims Payment {#sec-24-ncac-01g-.10 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .10}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .11 Sale or Transfer of Loans {#sec-24-ncac-01g-.11 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .11}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .12 Cancellation {#sec-24-ncac-01g-.12 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .12}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .13 Forms {#sec-24-ncac-01g-.13 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .13}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01G .14 Use of Forms {#sec-24-ncac-01g-.14 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .14}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5.3(a),(c); 122A-6.1
Eff. February 10, 1978
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. February 1, 1982
Repealed Eff. March 1, 1984.

Subchapter H

24 NCAC 01H .0101 Objectives {#sec-24-ncac-01h-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0101}

History

Status: repealed
Authority G.S. 122A-2; 122A-5
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0102 Persons and Families of Lower Income {#sec-24-ncac-01h-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0102}

History

Status: repealed
Authority G.S. 122A-2; 122A-5
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0103 Persons and Families of Moderate Income {#sec-24-ncac-01h-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0103}

History

Status: repealed
Authority G.S. 122A-3; 122A-5; 122A-5.4
Eff. March 1, 1984
Amended Eff. August 1, 2000; June 1, 1987
Repealed Eff. November 1, 2012.

24 NCAC 01H .0104 Method {#sec-24-ncac-01h-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0104}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.4
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Recodified from .0103; Recodified from .0104
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0105 Notice of Funds Availability {#sec-24-ncac-01h-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0105}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.4
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Recodified from .0103; Recodified from .0104
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0201 Eligible Projects {#sec-24-ncac-01h-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0201}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0202 Application Procedure {#sec-24-ncac-01h-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0202}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0203 Fair Market Rents {#sec-24-ncac-01h-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0203}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0204 Local Government Request {#sec-24-ncac-01h-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0204}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0205 Public Housing Agency {#sec-24-ncac-01h-.0205 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0205}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0206 Mortgage Insurance Commitment {#sec-24-ncac-01h-.0206 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0206}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0301 Funds Availability {#sec-24-ncac-01h-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0301}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0302 Project Feasibility {#sec-24-ncac-01h-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0302}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0303 Agency Approval {#sec-24-ncac-01h-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0303}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0304 Federal Approval {#sec-24-ncac-01h-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0304}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0305 Project Evaluation {#sec-24-ncac-01h-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0305}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0401 Interim Financing {#sec-24-ncac-01h-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0401}

History

Status: repealed
Authority G.S. 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0403 Mortgage Purchase Procedure {#sec-24-ncac-01h-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0403}

History

Status: repealed
Authority G.S. 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0403 Mortgage Purchase Procedure {#sec-24-ncac-01h-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0403}

History

Status: repealed
Authority G.S. 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0404 Mortgage Loan Servicing {#sec-24-ncac-01h-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0404}

History

Status: repealed
Authority G.S. 122A-5.1
Eff. September 26, 1980
Transferred from T15: 14 Eff. December 1, 1981
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01H .0501 Creation of Fund {#sec-24-ncac-01h-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0501}

History

Status: repealed
Authority G.S. 122A-5(2); 122A-5(3); 122A-5.1; S.L. 1983, c.971, s.133; S.L. 1984, c.971, s.133
Eff. August 1, 1985
Amended Eff. December 1, 1989
Repealed Eff. November 1, 2012.

24 NCAC 01H .0502 Eligibility {#sec-24-ncac-01h-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0502}

History

Status: repealed
Authority G.S. 122A-5(2); 122A-5(3); 122A-5.1; S.L. 1983, c.971, s.133; S.L. 1984, c.971, s.133
Eff. August 1, 1985
Amended Eff. December 1, 1989
Repealed Eff. November 1, 2012.

24 NCAC 01H .0503 Fund Operation and Administration {#sec-24-ncac-01h-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0503}

History

Status: repealed
Authority G.S. 122A-5(2); 122A-5(3); 122A-5.1; S.L. 1983, c.971, s.133; S.L. 1984, c.971, s.133
Eff. August 1, 1985
Amended Eff. December 1, 1989
Repealed Eff. November 1, 2012.

Subchapter I

24 NCAC 01I .0101 Objectives {#sec-24-ncac-01i-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0101}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-3; 122A-5; 122A-5.4
Eff. April 29, 1982
Amended Eff. May 1, 1983
Repealed Eff. March 1, 1984.

24 NCAC 01I .0102 Persons and Families of Moderate Income {#sec-24-ncac-01i-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0102}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-3; 122A-5; 122A-5.4
Eff. April 29, 1982
Amended Eff. May 1, 1983
Repealed Eff. March 1, 1984.

24 NCAC 01I .0201 Eligible Projects {#sec-24-ncac-01i-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0201}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0202 Notice {#sec-24-ncac-01i-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0202}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0203 Application Procedures {#sec-24-ncac-01i-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0203}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0301 Agency Approval {#sec-24-ncac-01i-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0301}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0302 Project Ranking {#sec-24-ncac-01i-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0302}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0401 Interim Financing {#sec-24-ncac-01i-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0401}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0402 Permanent Financing {#sec-24-ncac-01i-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0402}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0403 Mortgage Purchase Procedures {#sec-24-ncac-01i-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0403}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

24 NCAC 01I .0404 Mortgage Loan Servicing {#sec-24-ncac-01i-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01I .0404}

History

Status: repealed
Filed as a Temporary Rule Eff. December 30, 1981, for a Period of 120 Days to Expire on April 29, 1982
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Eff. April 29, 1982
Repealed Eff. March 1, 1984.

Subchapter J

24 NCAC 01J .0101 Objectives {#sec-24-ncac-01j-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0101}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.2; 122A-5.5; 122A-8
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Amended Eff. July 1, 1987; June 1, 1987; March 1, 1984; May 1, 1983
Repealed Eff. November 1, 2012.

24 NCAC 01J .0102 Income Eligible Persons and Familie {#sec-24-ncac-01j-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0102}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.2; 122A-5.5; 122A-8
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Amended Eff. July 1, 1987; June 1, 1987; March 1, 1984; May 1, 1983
Repealed Eff. November 1, 2012.

24 NCAC 01J .0103 ELIGIBLE BORROWEr {#sec-24-ncac-01j-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0103}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.2; 122A-5.5; 122A-8
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Amended Eff. July 1, 1987; June 1, 1987; March 1, 1984; May 1, 1983
Repealed Eff. November 1, 2012.

24 NCAC 01J .0104 Eligible Property {#sec-24-ncac-01j-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0104}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.2; 122A-5.5; 122A-8
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Amended Eff. July 1, 1987; June 1, 1987; March 1, 1984; May 1, 1983
Repealed Eff. November 1, 2012.

24 NCAC 01J .0105 Eligible Loan {#sec-24-ncac-01j-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0105}

History

Status: repealed
Authority G.S. 122A-2; 122A-3; 122A-5; 122A-5.1; 122A-5.2; 122A-5.5; 122A-8
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Amended Eff. July 1, 1987; June 1, 1987; March 1, 1984; May 1, 1983
Repealed Eff. November 1, 2012.

24 NCAC 01J .0106 Eligible Lender {#sec-24-ncac-01j-.0106 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0106}

History

Status: repealed
Filed as a Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Authority 122A-5.5
Eff. July 1, 1982
Repealed Eff. June 1, 1987.

24 NCAC 01J .0107 Compliance with Tax Act {#sec-24-ncac-01j-.0107 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0107}

History

Status: repealed
Authority G.S. 122A-5.5
Eff. June 1, 1987
Repealed Eff. November 1, 2012.

24 NCAC 01J .0201 Eligible Lender Contract Forms {#sec-24-ncac-01j-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0201}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.5
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Amended Eff. June 1, 1987
Repealed Eff. November 1, 2012.

24 NCAC 01J .0202 Servicing Agreement {#sec-24-ncac-01j-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0202}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.5
Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Eff. July 1, 1982
Amended Eff. June 1, 1987
Repealed Eff. November 1, 2012.

24 NCAC 01J .0203 Forms Accompany Home Improvement Loans Approved by Agency {#sec-24-ncac-01j-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01J .0203}

History

Status: repealed
Filed as a Temporary Amendment Eff. January 17, 1983, for a Period of 76 Days to Expire on April 2, 1983
Filed as a Temporary Rule Eff. March 29, 1982, for a Period of 120 Days to Expire on July 27, 1982
Authority G.S. 122A-5; 122A-5.1
Eff. July 1, 1982
Amended Eff. March 1, 1984; May 1, 1983
Repealed Eff. June 1, 1987.

Subchapter K

24 NCAC 01K .0101 Objectives {#sec-24-ncac-01k-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0101}

History

Status: repealed
Authority G.S. 122A; 122A-2; 122A-5; 122A-5(12); 122A-5.1
Eff. January 1, 1983
Recodified from .0103; Recodified from .0102
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0102 Definitions {#sec-24-ncac-01k-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0102}

History

Status: repealed
Authority G.S. 122A; 122A-2; 122A-5; 122A-5(12); 122A-5.1
Eff. January 1, 1983
Recodified from .0103; Recodified from .0102
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0103 Method {#sec-24-ncac-01k-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0103}

History

Status: repealed
Authority G.S. 122A; 122A-2; 122A-5; 122A-5(12); 122A-5.1
Eff. January 1, 1983
Recodified from .0103; Recodified from .0102
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0201 Eligible Projects {#sec-24-ncac-01k-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0201}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0202 Local Government Request {#sec-24-ncac-01k-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0202}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0203 Resident Certification {#sec-24-ncac-01k-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0203}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0204 Rent Requirements {#sec-24-ncac-01k-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0204}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0301 Interim Financing {#sec-24-ncac-01k-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0301}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0302 Financing {#sec-24-ncac-01k-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0302}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0303 Mortgage Purchase Procedure {#sec-24-ncac-01k-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0303}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0304 Mortgage Loan Servicing {#sec-24-ncac-01k-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0304}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. May 1, 1984; March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0401 Notification of Proposed Financing {#sec-24-ncac-01k-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0401}

History

Status: repealed
Authority G.S. 122A-4; 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0402 Application Procedure {#sec-24-ncac-01k-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0402}

History

Status: repealed
Authority G.S. 122A-4; 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0403 Project Feasibility {#sec-24-ncac-01k-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0403}

History

Status: repealed
Authority G.S. 122A-4; 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0404 Project Evaluation {#sec-24-ncac-01k-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0404}

History

Status: repealed
Authority G.S. 122A-4; 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0405 Agency Approval {#sec-24-ncac-01k-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0405}

History

Status: repealed
Authority G.S. 122A-4; 122A-5; 122A-5.1
Eff. January 1, 1983
Amended Eff. March 1, 1984
Repealed Eff. November 1, 2012.

24 NCAC 01K .0501 Purpose {#sec-24-ncac-01k-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0501}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. September 9, 1987 for a Period of 120 Days to Expire on January 7, 1988
Eff. January 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0502 Distressed Rental Housing Project Defined {#sec-24-ncac-01k-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0502}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. September 9, 1987 for a Period of 120 Days to Expire on January 7, 1988
Eff. January 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0503 Determination by Board of Directors {#sec-24-ncac-01k-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0503}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. September 9, 1987 for a Period of 120 Days to Expire on January 7, 1988
Eff. January 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0504 Procedure {#sec-24-ncac-01k-.0504 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0504}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. September 9, 1987 for a Period of 120 Days to Expire on January 7, 1988
Eff. January 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0601 General Information {#sec-24-ncac-01k-.0601 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0601}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. April 22, 1988 for a Period of 180 Days to Expire on October 19, 1988
Eff. September 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0602 Objectives {#sec-24-ncac-01k-.0602 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0602}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. April 22, 1988 for a Period of 180 Days to Expire on October 19, 1988
Eff. September 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0603 Types of Assistance {#sec-24-ncac-01k-.0603 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0603}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. April 22, 1988 for a Period of 180 Days to Expire on October 19, 1988
Eff. September 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0604 Requirements {#sec-24-ncac-01k-.0604 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0604}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. April 22, 1988 for a Period of 180 Days to Expire on October 19, 1988
Eff. September 1, 1988
Repealed Eff. November 1, 2012.

24 NCAC 01K .0605 Procedures {#sec-24-ncac-01k-.0605 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01K .0605}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.4
Temporary Rule Eff. April 22, 1988 for a Period of 180 Days to Expire on October 19, 1988
Eff. September 1, 1988
Repealed Eff. November 1, 2012.

Subchapter L

24 NCAC 01L .0101 Objectives {#sec-24-ncac-01l-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01L .0101}

History

Status: repealed
Authority G.S. 122A-5(1)
Temporary Rule Eff. March 18, 1985 for a Period of 120 Days to Expire on July 18, 1985
Eff. July 1, 1985
Repealed Eff. November 1, 2012.

24 NCAC 01L .0102 Administration by the Agency {#sec-24-ncac-01l-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01L .0102}

History

Status: repealed
Authority G.S. 122A-5(1)
Temporary Rule Eff. March 18, 1985 for a Period of 120 Days to Expire on July 18, 1985
Eff. July 1, 1985
Repealed Eff. November 1, 2012.

24 NCAC 01L .0201 Adoption of Hud Program by Reference {#sec-24-ncac-01l-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01L .0201}

History

Status: repealed
Authority G.S. 122A-5(1); 150B-14(c)
Temporary Rule Eff. March 18, 1985 for a Period of 120 Days to Expire on July 18, 1985
Eff. July 1, 1985
Amended Eff. February 1, 1989
Repealed Eff. November 1, 2012.

24 NCAC 01L .0202 Memorandum of Understanding {#sec-24-ncac-01l-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01L .0202}

History

Status: repealed
Authority G.S. 122A-5(1); 150B-14(c)
Temporary Rule Eff. March 18, 1985 for a Period of 120 Days to Expire on July 18, 1985
Eff. July 1, 1985
Amended Eff. February 1, 1989
Repealed Eff. November 1, 2012.

Subchapter M

24 NCAC 01M .0101 Adoption of Chapter 122e by Reference {#sec-24-ncac-01m-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0101}

History

Status: expired
Authority G.S. 122E-4; 122E-5; 122E-8; 150B-14(c)
Eff. September 1, 1988
Amended Eff. November 2, 1992
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01M .0201 Purpose {#sec-24-ncac-01m-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0201}

History

Status: expired
Authority G.S. 122E-4; 122E-5; 122E-8; l50B-14(c)
Temporary Rule Eff. May 13, 1988 For a Period of 180 Days to Expire on November 9, 1988
Eff. December 1, 1988
Amended Eff. November 2, 1992; May 1, 1989
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01M .0202 Eligibility {#sec-24-ncac-01m-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0202}

(a) Eligible projects under Trust Fund programs shall include those identified in G.S. 122E-6(c) and (d).

(b) Specific activities eligible for financing through Trust Fund programs will be identified in the rules for each program.

(c) Eligible applicants for Trust Fund programs will be identified in the rules for each program. Eligible recipients of Trust Fund funding must directly operate the program funded.

(d) Housing units assisted under Trust Fund programs must be occupied by very low-, low- or moderate-income households, as defined G.S. 122E-6(a). Specific targeting of funds required under each program will be identified in the rules for each program and the program application and funding documents.

(e) All rental housing units assisted under the Trust Fund must remain affordable to the target population, as required by G.S. 122E-6(b). Applicants for funding will be required to demonstrate how affordability will be maintained. The agency will use loan documents to help ensure that affordability is maintained.

(f) Eligible forms of assistance under Trust Fund programs will be identified in the rules for each program. Loans will be repaid to the Trust Fund.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8; 150B-14(c)
Temporary Rule Eff. May 13, 1988 For a Period of 180 Days to Expire on November 9, 1988
Eff. December 1, 1988
Amended Eff. February 1, 1993; May 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0203 Application Procedures {#sec-24-ncac-01m-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0203}

(a) Funding cycles for Trust Fund programs will be established on an annual basis, or more frequently, depending on the need for and the availability of funds. Separate funding cycles may be utilized for new construction, rehabilitation, energy conservation and other projects.

(b) The agency will solicit applications for Trust Fund programs by mailing information to eligible applicants [as defined in Rule .0202(c)] and by other methods of public announcement.

(c) Eligible applicants may apply for funding under Trust Fund programs by submitting an application to the agency in a manner described in the program application documents available from the agency. The agency will develop the application documents which will include, but not be limited to, a Request for Proposals and application form(s). The agency will from time to time amend the contents of the application documents.

(d) The agency will offer technical assistance to prospective applicants to assist them in preparing applications for Trust Fund programs.

History

Authority G.S. 122E-4; 122E-5; 122E-8; 150B-14(c)
Temporary Rule Eff. May 13, 1988 For a Period of 180 Days to Expire on November 9, 1988
Eff. December 1, 1988
Amended Eff. November 2, 1992; May 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0204 Selection Procedures {#sec-24-ncac-01m-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0204}

(a) In distributing program funds, the partnership shall develop an allocation formula that will promote the distribution of funds across the state based on population and very low-, low- and moderate-income housing need as defined in G.S. 122E-6(a). Population will be estimated using the most recent state population estimates available from the Office of State Planning. Very low-, low-, and moderate-income housing need will be estimated using the most recent available U.S. Census data for household income, housing affordability and housing condition.

(b) If applications received by the applicable deadline are insufficient to utilize all of the funds allocated to a funding cycle, geographic region and urban or rural area, the partnership, may extend the application deadline.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Temporary Rule Eff. May 13, 1988 For a Period of 180 Days to Expire on November 9, 1988
Eff. December 1, 1988
Amended Eff. February 1, 1993; May 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0205 Administration {#sec-24-ncac-01m-.0205 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0205}

History

Status: repealed
Filed as a Temporary Rule Eff. May 13, 1988 For a Period of 180 Days to Expire on November 9, 1988
Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. December 1, 1988
Repealed Eff. February 1, 1993.

24 NCAC 01M .0301 Goal and Objectives {#sec-24-ncac-01m-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0301}

(a) The goal of the Housing Production Program (the "program") is to increase the supply of housing that is affordable to very low, low- and moderate-income households as defined in G.S. 122E-6(a).

(b) The objectives of the program are:

(1) To primarily serve low-income households;

(2) To add units to the housing stock that will be affordable on a long-term basis;

(3) To encourage energy-efficient housing design and construction that will lower operating costs for both homeowners and tenants;

(4) To assist projects that would otherwise not be financially feasible as lower-income housing;

(5) To assist communities that have not participated in previous Program funding cycles;

(6) To distribute Program funds to all areas of the state based on very low-, low- and moderate income housing needs as defined in Rule .0204(a) of this Subchapter; and

(7) To assist projects serving populations with special housing needs including the elderly, persons with disabilities, the homeless, single parent households and large households (i.e., those with five or more people).

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0302 Eligibility Requirements {#sec-24-ncac-01m-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0302}

(a) Both rental and home ownership projects are eligible under the program. In addition, eligible projects are those including:

(1) New construction;

(2) Acquisition and rehabilitation; or

(3) Substantial rehabilitation.

(b) Program funds may be used for the following costs:

(1) Construction costs;

(2) Preconstruction costs; and

(3) Other development costs.

(c) Program financing shall include one or more of the following approaches, depending on the Trust Fund funding sources available and the financing needs of each project:

(1) Grants;

(2) Forgivable and repayable deferred payment loans; and

(3) Non-interest-bearing and interest-bearing amortizing loans.

Forgivable loans will be forgiven on a pro rata basis over terms ranging from five to 10 years if the property assisted with Program funds remains affordable to and occupied by very low-, low- and moderate-income households, as defined in G.S. 122E-6(a).

(d) Program funds may be provided as:

(1) Permanent mortgage financing;

(2) Construction loans;

(3) Predevelopment loans; and

(4) Bridge loans.

(e) Eligible applicants for program funds include:

(1) Private nonprofit organizations;

(2) Private for-profit developers;

(3) Public agencies;

(4) Units of local governments; and

(5) Lead regional organizations.

(f) Households eligible for assistance under the Program include very low-, low- and moderate-income households, as defined in G.S. 122E-6(a).

(g) Each applicant for program funds shall submit a nonrefundable application fee. The fee shall not exceed five hundred dollars ($500.00) for private for-profit organizations and two hundred and fifty dollars ($250.00) for all other organizations.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0303 Threshold Review Criteria {#sec-24-ncac-01m-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0303}

The agency's evaluation of applications for funding shall consider the following threshold criteria:

(1) The application must be complete and submitted on the proper form by the application deadline;

(2) The application must demonstrate acceptable cash flow projections sufficient to pay debt service, including the program loan, and operating expenses for the project;

(3) The application must meet the program eligibility requirements addressing eligible applicants, eligible projects, eligible households, eligible uses of funds and eligible forms of assistance;

(4) The applicant must control the site by ownership, contract to purchase, long term lease, or other means acceptable to the agency;

(5) The application must identify the sources of both construction and permanent financing;

(6) The application must provide pro forma information, in the format required by the agency, demonstrating both the affordability of the project to eligible households and the need for program funds;

(7) The application must provide evidence that the project is consistent with local land use plans and development regulations and that public or private infrastructure will be available to serve the project;

(8) The application must provide site and market information that indicates there will be sufficient demand for the project; and

(9) The applicant must not be under administrative restrictions from federal, state or local sources barring the applicant's participation in their housing programs.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0304 Ranking Criteria {#sec-24-ncac-01m-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0304}

(a) Applications meeting the threshold requirements will be ranked within their respective areas using a competitive point ranking system. No more than 25 percent of the total points available will be awarded under any single criterion. For rental projects the agency will consider the following ranking criteria:

(1) Project Location. Points will be awarded if previous program rental projects have not been sited in the county or city.

(2) Sponsor Experience. Points will be awarded based on successful development experience for similar types of projects including, but not limited to, the number of units developed and the avoidance of mortgage defaults or adverse management agent proceedings.

(3) Affordability. Points will be awarded based on the affordability of the project to eligible households and length of time the development will remain affordable to low-income households.

(4) Feasibility. Points will be awarded based on the agency's analysis of the economic feasibility of the project using factors including, but not limited to, the debt service coverage ratio, the anticipated occupancy rate, the projected per unit operating costs, the proposed per unit construction cost, the status of zoning and other development permits and the status of construction and permanent financing.

(5) Other Contributions. Points will be awarded based on the percentage of the project replacement cost that is derived from other below-market-rate sources of debt financing and from equity financing.

(6) Project Impacts. Points will be awarded based on the relative extent of housing needs in the county of the proposed project.

(7) Special Needs. Points will be awarded for projects that will serve populations with special housing needs including the homeless, the elderly, persons with disabilities and large families, based on the percentage of units reserved for those households and the types of services to be provided to the households.

(8) Market, Site and Building Characteristics. Points will be awarded based on: the extent of demand documented by the project's market study; if the project helps distribute low-income housing units in the community or is part of a neighborhood revitalization strategy; if the site provides good access to employment, shopping, services and transportation; if there are no incompatible land uses impacting the site; and based on the quality of the site plan and building design.

(b) Applications for home ownership projects meeting the threshold requirements will be ranked within their respective areas using a competitive point ranking system. No more than 25 percent of the total points available will be awarded under any single criterion. For home ownership projects the competitive ranking criteria will include:

(1) Project Location. Points will be awarded if previous program home ownership projects have not been sited in the county or city.

(2) Sponsor Experience. Points will be awarded if the principal has successful development experience for similar types of projects including, but not limited to, the number of units developed, and the avoidance by the principal or marketing/sales agent of mortgage defaults, bankruptcy, adverse fair housing disputes, adverse civil rights disputes and adverse proceedings and settlements involving the Department of Housing and Urban Development (HUD) or the Farmers Home Administration (FmHA).

(3) Affordability. Points will be awarded based on the affordability of the units to eligible households, the replacement cost of the homes and the monthly cost including principal, interest, taxes and insurance (PITI) of the homes.

(4) Feasibility. Points will be awarded based on the agency's analysis of the economic feasibility of the project using criteria including, but not limited to, the energy efficiency of the homes, the amount of the downpayment and closing costs to be paid by the homebuyers, the projected length of time to complete the project, the status of zoning and subdivision approval, and the status of construction and permanent financing.

(5) Other Contributions. Points will be awarded based on the percentage of the project replacement cost that is derived from other below-market-rate sources of debt financing and from equity.

(6) Impacts. Points will be awarded based on the relative housing needs in the county of the proposed project.

(7) Special Needs. Points will be awarded for projects that will serve populations with special housing needs including families in assisted rental housing, the elderly, persons with disabilities and large families, based on the percentage of units reserved for households with special needs and the types of services and the extent of services to be provided for the households.

(8) Market, Site and Building Characteristics. Points will be awarded if the project helps distribute low- and moderate-income housing units in the community or is an integral element of a neighborhood revitalization strategy; if the site provides good access to employment, shopping, services and transportation, if there are no incompatible land uses impacting the site; and based on the quality of the site plan and building design.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. November 2, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0305 Agency Board Approval {#sec-24-ncac-01m-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0305}

(a) In its evaluation of applications the agency will also analyze the capacity of project owners using the following criteria:

(1) Project owners (organizations and individuals) must provide evidence of sufficient financial capacity to successfully complete and operate the proposed project.

(2) Project owners, who have defaulted on a Federal Housing Administration (FHA) insured, Farmers Home Administration (FmHA) funded, tax-exempt bond funded or federally subsidized project mortgage in the past five years, will be specifically identified in any presentation to the agency board.

(3) Project proposals will be reviewed by staff under alternative operating conditions including, but not limited to, extended lease-up of up to three years, rent concessions of up to 20 percent and higher operating costs per unit based on averages for other projects in service.

(4) Project owners may be requested to provide financial assurances including letters of credit or cash escrows that offset any operating losses that will be sustained by the project owner under alternative operating conditions. Financial assurances will be required of project owners who have defaulted on projects identified in Subparagraph (a)(2) of this Rule.

(b) The Agency will use the criteria established in Rules .0303, .0304 of this Section and Paragraph (a) of this Rule to identify those applications to be further analyzed before the final financing decision is made by the agency's board of directors. Selection for financing will be based on the agency's underwriting of each remaining project. The underwriting will include an analysis of:

(1) The need and market demand for the project;

(2) The financial feasibility of the project;

(3) The reasonableness of project costs;

(4) The project's site plan and building design; and

(5) The need of each project for program funds.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. November 2, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0306 Funding Commitment {#sec-24-ncac-01m-.0306 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0306}

(a) Projects selected for financing shall receive a written conditional commitment of program funds. The commitment will identify all conditions related to the funding award. The agency shall charge a commitment fee not to exceed one percent of the program loan amount.

(b) After written commitments for all other project financing have been obtained, the applicant will receive a firm commitment of program funds. The firm commitment will identify the timeframe for starting and completing the project.

(c) When the agency is unable to approve an application for financing, it will notify the applicant in writing and specify the reason for the denial of funding.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0401 Goals and Objectives {#sec-24-ncac-01m-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0401}

(a) The goal of the Rehabilitation Incentive Program (the "program") is to encourage the rehabilitation of housing occupied by very low-, low- and moderate-income households as defined in G.S. 122E-6(a) by providing funding for the energy-related costs associated with comprehensive housing rehabilitation projects.

(b) The objectives of the program are:

(1) To primarily serve very low- and low-income households;

(2) To involve communities that have not participated in previous program funding cycles;

(3) To distribute funds to all areas of the state based on the housing needs of very low-, low- and moderate-income households as defined in Rule .0204(a) of this Subchapter;

(4) To encourage comprehensive rehabilitation of housing currently failing to meet minimum housing code standards; and

(5) To provide assistance to both renters and homeowners.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0402 Eligibility Requirements {#sec-24-ncac-01m-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0402}

(a) The rehabilitation of both owner-occupied and rental housing is eligible under the program. Rehabilitated units must meet or exceed local housing code standards or, if there is no local code, the Housing Quality Standards of the U.S. Department of Housing and Urban Development (HUD). Rehabilitation work must also meet the program's energy efficiency standards.

(b) Program funds may be used for the following costs:

(1) Energy conservation-related rehabilitation, identified in program application documents; and

(2) Program support costs, including staff or consultant costs for writing construction specifications, supervising rehabilitation work and related support costs.

(c) Program financing shall include one or more of the following approaches, depending on the Trust Fund funding sources available and the financing needs of each project:

(1) Grants;

(2) Forgivable and repayable deferred payment loans; and

(3) Non-interest-bearing and interest-bearing amortizing loans.

Homeowners may receive either grant or loans. Investor owners shall receive only loans. Forgivable loans will be given on a pro rata basis over terms ranging from five to 10 years if the property assisted with program funds remains affordable to and occupied by very low-, low- and moderate-income households, as defined in G.S. 122E-6(a).

(d) Eligible applicants for program funds include:

(1) Private nonprofit organizations;

(2) Public agencies;

(3) Units of local government; and

(4) Lead regional organizations.

(e) Households eligible for assistance under the program include very low-, low- and moderate-income households as defined in G.S. 122E-6(a).

(f) Each applicant for program funds shall submit a nonrefundable application fee not to exceed two hundred and fifty dollars ($250.00).

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0403 Threshold Review Criteria {#sec-24-ncac-01m-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0403}

The agency's evaluation of applications for funding shall consider the following threshold criteria:

(1) The application must be complete and submitted on the proper form by the application deadline;

(2) The project must meet the program eligibility requirements addressing eligible applicants, eligible projects, eligible households, eligible uses of funds and eligible forms of assistance;

(3) The applicant must identify proposed sources and amounts of matching funds, although those funds do not have to be committed at the time of application;

(4) The application must provide evidence of local government support for the project;

(5) The applicant must not be under administrative restrictions from federal, state or local sources barring the applicant's participation in their housing programs.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0404 Ranking Criteria {#sec-24-ncac-01m-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0404}

Applications meeting the threshold requirements shall be ranked within their respective areas using a competitive point ranking system. No more than 25 percent of the total points available shall be awarded under any single criterion. The ranking criteria shall include:

(1) Very Low- and Low-Income Benefit. Points shall be awarded based on the percentage of program funds to be used to benefit very low- and low-income households. Between 0 and 20 points will be awarded under this criterion.

(2) Special Needs Targeting. Points shall be awarded based on the percentage of program funds used to serve households with special housing needs, such as the homeless, the elderly, persons with disabilities, and large families. Between 0 and 20 points will be awarded under this criterion.

(3) Other Contributions. Points shall be awarded based on the extent to which other public and private funds are used to match program funds. Between 0 and 30 points will be awarded under this criterion.

(4) Needs. Points shall be awarded based on the relative housing needs in the county(ies) to be served with program funds. Between 0 and 15 points will be awarded under this criterion.

(5) Project Location. Points shall be awarded based on the extent to which the city or county has been underserved in previous Trust Fund program funding cycles. Between 0 and 25 points will be awarded under this criterion.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0405 Agency Board Approval {#sec-24-ncac-01m-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0405}

(a) In its evaluation of applications the agency shall also analyze the capacity of applicants using the following criteria:

(1) The experience of the applicant in undertaking similar types of projects;

(2) The performance of the applicant, if applicable, under previous Trust Fund funding cycles;

(3) The capacity of the organization, including adequate operating budget and staffing support, to complete the project;

(4) The experience of the organization in providing affordable housing using its own resources (not federal or state resources).

(b) The agency shall use the criteria established in Rules .0403, .0404 and .0405(a) of this Section to identify those applications to be further analyzed before the final funding decision is made by the agency's board of directors. Selection for funding shall be based on the agency's analysis of each remaining project. In addition to criteria identified in this Rule, the analysis shall include the need of each project for program funds, the reasonableness of project costs and the relevance of the project to the housing needs of the area.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. February 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01M .0406 Funding Commitment {#sec-24-ncac-01m-.0406 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01M .0406}

(a) Applicants selected for funding will be notified and provided with a program Funding Agreement.

(b) Prior to executing the Funding Agreement the recipient may be required to provide the agency with additional information on the proposed project or to modify the proposed project. After the Funding Agreement has been executed the recipient's grant will be disbursed in 25 percent increments.

(c) When the agency is unable to approve an application for funding, it will notify the applicant in writing and specify the reason for the denial of funding.

History

Authority G.S. 122A-5; 122A-5.1; 122E-4; 122E-5; 122E-8
Eff. November 2, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Subchapter N

24 NCAC 01N .0201 Purpose {#sec-24-ncac-01n-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01N .0201}

History

Status: expired
Authority G.S. 53-269; 122A-5; 122A-5.1
Eff. July 1, 1992
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01N .0202 Standards for Counselor Training {#sec-24-ncac-01n-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01N .0202}

(a) All borrowers applying for a reverse mortgage must receive counseling from an organization with staff that has completed a training program approved by the agency.

(b) The agency will periodically, but no less than once per year, publish a schedule of training programs that meet the standard for counselor training established in this Rule. The schedule may be obtained from the North Carolina Housing Finance Agency, 3300 Drake Circle, Suite 200, Raleigh, North Carolina 27607 or by calling the agency at (919) 781-6115.

(1) The agency directly;

(2) The agency in cooperation with the North Carolina Division of Aging or other state agencies;

(3) The U.S. Department of Housing and Urban Development (HUD); or

(4) A third party contractor approved by the agency.

(d) The curriculum of approved training programs must at least address, but is not limited to, the following issues:

(1) The financial implications of entering into a reverse mortgage;

(2) The consequences of the reverse mortgage for the borrower's taxes, estate, and eligibility for assistance under federal and state programs;

(3) Other home equity conversion options, in addition to reverse mortgages, that may be available to borrowers including sale-lease back financing, low interest and deferred payment loans, and property tax deferral;

(4) Options, other than home equity conversion, that are available to the borrower, including other housing alternatives and social service, health and financial options; and

(5) Other information the agency may require.

History

Authority G.S. 53-269; 122A-5; 122A-5.1
Temporary Adoption Eff. November 28, 1991 For a Period of 180 Days to Expire on May 26, 1992
Eff. August 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

24 NCAC 01N .0203 Notification of the Commissioner of Banks {#sec-24-ncac-01n-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01N .0203}

History

Status: expired
Authority G.S. 53-269; 122A-5; 122A-5.1
Eff. July 1, 1992
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

24 NCAC 01N .0204 Fees {#sec-24-ncac-01n-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01N .0204}

History

Status: repealed
Authority G.S. 53-269; 122A-5; 122A-5.1
Eff. July 1, 1992
Repealed Eff. January 1, 2019.

Subchapter O

24 NCAC 01O .0101 Purpose {#sec-24-ncac-01o-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01O .0101}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; S.L. 1991, c. 582, s. 1
Eff. November 30, 1992
Repealed Eff. November 1, 2012.

24 NCAC 01O .0102 Eligibility {#sec-24-ncac-01o-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01O .0102}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; S.L. 1991, c. 582, s. 1
Eff. November 30, 1992
Repealed Eff. November 1, 2012.

24 NCAC 01O .0201 Application Procedures {#sec-24-ncac-01o-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01O .0201}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; S.L. 1991, c. 582, s. 1
Eff. November 30, 1992
Repealed Eff. November 1, 2012.

24 NCAC 01O .0202 Selection Procedures {#sec-24-ncac-01o-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01O .0202}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; S.L. 1991, c. 582, s. 1
Eff. November 30, 1992
Repealed Eff. November 1, 2012.

24 NCAC 01O .0203 Administration {#sec-24-ncac-01o-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01O .0203}

History

Status: expired
Authority G.S. 122A-5; 122A-5.1; S.L. 1991, c. 582, s. 1
Eff. November 30, 1992
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

Subchapter P

24 NCAC 01P .0101 Purpose {#sec-24-ncac-01p-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0101}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

24 NCAC 01P .0102 Eligibility {#sec-24-ncac-01p-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0102}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

24 NCAC 01P .0103 Types of Assistance {#sec-24-ncac-01p-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0103}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

24 NCAC 01P .0201 Application Procedures {#sec-24-ncac-01p-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0201}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

24 NCAC 01P .0202 Selection Procedure {#sec-24-ncac-01p-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0202}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

24 NCAC 01P .0203 Disbursement of Funds {#sec-24-ncac-01p-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01P .0203}

History

Status: repealed
Authority G.S. 122A-5; 122A-5.1; 122A-5.13
Temporary Adoption Eff. October 1, 1996
Eff. August 1, 1998
Repealed Eff. November 1, 2012.

Chapter 02 NC Agricultural Finance Authority

Subchapter A

24 NCAC 02A .0101 Objectives {#sec-24-ncac-02a-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02A .0101}

(a) The primary objective of the Authority is to provide capital and credit at interest rates within the financial means of persons engaged in all aspects of agriculture, including agribusiness.

(b) The Authority will periodically make loans, either directly or through an originating agent, to borrowers from Authority funds available for this purpose. These may be direct loans or loans with FmHA guarantee for the purposes of farm real estate, farm operating loans, or agricultural business loans for providing agricultural services, processing, marketing or exporting of products.

History

Authority G.S. 122D-2; 122D-6; 122D-7
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

24 NCAC 02A .0102 Definitions {#sec-24-ncac-02a-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02A .0102}

The following words and terms, unless their context shall clearly indicate a different definition, shall be defined and mean as follows:

(1) "Applicant" is a person applying to the Authority for a loan.

(2) "Agriculture" is defined in G.S. 122D-3(2).

(3) "Agribusiness" means the business of processing, marketing, distributing, manufacturing or exporting the products of agriculture.

(4) "Agricultural Loan" is defined in G.S. 122D-3(1).

(5) "Borrower" means a person to whom the Authority or a lender has made a loan who is a person engaged in agriculture or agribusiness in the state of North Carolina.

(6) "FmHA" means the United States of America, acting through the Farmers' Home Administration of the United States Department of Agriculture.

(7) "Holder" means a person or lender purchasing all or a portion of a loan from the Authority.

(8) "Guaranteed Loan" means any loan made by a lender or the Authority which is subject to a guarantee of repayment of principal and accrued interest by the FmHA pursuant to any guaranteed loan program authorized by the Consolidated Farm and Rural Development Act (7 U.S.C. § 1921 et. seq.) and described in various subparts of 7 C.F.R. Part 1980.

(9) "Loan" means a loan made by the Authority to a borrower or a loan made by a lender to any borrower which is purchased by the Authority.

(10) "Members" means the members of the North Carolina Agricultural Finance Authority constituted pursuant to North Carolina G.S. 122D-4.

(11) "Note" means a note made by a borrower in favor of the Authority or a note made by a borrower in favor of a lender purchased by the Authority.

(12) "Originating Agent" means an agent acting on behalf of the Authority pursuant to an originating agreement.

(13) "Originating Agreement" means the one or more agreements by that name between the Authority and an originating agent or agents pursuant to which the originating agent or agents will originate loans on behalf of the Authority.

History

Authority G.S. 122D-3; 122D-6; 122D-7; 122D-10
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

24 NCAC 02A .0103 Sale of Loans by Authority {#sec-24-ncac-02a-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02A .0103}

The Authority may, for value received, sell all or a portion of any agricultural loan made or purchased by the Authority.

History

Authority G.S. 122D-7
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

Subchapter B

24 NCAC 02B .0101 Lending Procedures {#sec-24-ncac-02b-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02B .0101}

(a) The Authority will make agricultural loans to eligible borrowers to finance the acquisitions or improvement of real property from funds available to the Authority for this purpose. The Authority shall have overall administrative responsibility for the Real Estate Loan Program.

(b) Applicants will apply for loans on an application to be provided by the Authority. The applicant must adhere to the requirements of the application process including providing all relevant documents requested by the Authority or FmHA, in the case of guaranteed loans. The following application process will be implemented by the Authority:

(1) The Authority will review the application from the applicant and make a decision as to whether to approve the application.

(2) For guaranteed loans, approval by the Authority requires the application to be forwarded to FmHA for approval.

(3) A denial of approval by either the Authority or FmHA does not provide the applicant any recourse unless the reason for disapproval of the loan can be remedied and is allowed by either the Authority or FmHA.

(4) Following approval, the Authority or an agent thereof will originate and document the closing of the loan.

(c) The Authority, or its agent, will service the loans made pursuant to this program in accordance with sound banking practices and, for guaranteed loans, applicable FmHA requirements.

History

Authority G.S. 122D-6; 122D-7
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

24 NCAC 02B .0102 Eligible Borrowers {#sec-24-ncac-02b-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02B .0102}

Eligible borrowers are applicants who demonstrate to the Authority that they satisfy the following criteria:

(1) Need for an agricultural loan to finance agriculture or agribusiness;

(2) Ability to repay the loan is demonstrated;

(3) Collateral for the loan is sufficient; and

(4) Can meet any other requirements which may be imposed by the Authority, or FmHA in the case of guaranteed loans, in the exercise of sound banking practices.

History

Authority G.S. 122D-2; 122D-6
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

Subchapter C

24 NCAC 02C .0101 Lending Procedure {#sec-24-ncac-02c-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02C .0101}

(a) The Authority will make loans to persons engaged in agribusiness for the purpose of financing agribusiness from funds available to the Authority for this purpose.

(b) Each agribusiness loan shall be separately underwritten and separately approved by the Authority.

History

Authority G.S. 122D-6(4)
Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989
Eff. April 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

Subchapter D

24 NCAC 02D .0101 Purpose {#sec-24-ncac-02d-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0101}

This Chapter describes the operating procedures for the Large Animal Healthcare Enhancement Advisory Committee and the North Carolina Agricultural Finance Authority implementing the Large Animal Healthcare Enhancement Fund for the enhancement of large animal veterinary services in North Carolina. Procedures and requirements for participating applicants are also established. The purpose of the program is to provide grants to encourage veterinary practitioners to sustainably serve as large or mixed animal veterinarians in underserviced areas in the state of North Carolina, and to provide additional resources for large or mixed animal veterinary practices that operate in underserviced areas to help them to better serve their communities.

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

24 NCAC 02D .0102 Definitions {#sec-24-ncac-02d-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0102}

In addition to the terms defined in Article 88 of Chapter 106 of the North Carolina General Statutes, the following terms used in this Chapter have the following meanings:

(1) "Applicant" means a large animal veterinarian as defined in Article 88 of Chapter 106 of the North Carolina General Statutes who applies for funds from the Large Animal Healthcare Enhancement Fund.

(2) "Application" means the "Large Animal Healthcare Enhancement Fund Application Form" detailed in Rule .0103(c) of this Section, developed and made available by the Large Animal Healthcare Enhancement Advisory Committee, including, but not limited to, any attachments and other information or documentation required by the form, for an applicant to complete and submit to the advisory committee to request a grant from the fund.

(3) "Chair" or "Commissioner" means the chair of the advisory committee who is also the Commissioner of Agriculture.

(4) "Grant" means an amount of money designated by the advisory committee to be given to a qualified applicant who has been chosen by the advisory committee.

(5) "Financial records" means documentation that provides evidence or a summary of business transactions, which may include invoices, receipts, and general monetary ledgers.

(6) "Grant recipient" means a qualified applicant who has received a grant.

(7) "Large animal" means any of the animals referenced in Article 88 of Chapter 106 of the North Carolina General Statutes.

(8) "Qualified applicant" means a large animal veterinarian who meets the criteria described in this Rule and in Article 88 of Chapter 106 of the North Carolina General Statutes.

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

24 NCAC 02D .0103 Evaluation of Applications {#sec-24-ncac-02d-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0103}

(a) Applicants for funding from the fund shall submit a completed application within 60 days from the date of the public announcement of requests for proposals (the "application deadline").

(b) Applications and instructions shall be available online at www.ncagr.gov.

(c) To be eligible for consideration for funding, applicants shall complete the application, which shall be titled the "Large Animal Healthcare Enhancement Fund Application Form," and which shall contain the following information:

(1) identifying information such as location, business name, and contact information;

(2) statement from the applicant that acknowledges and agrees that in the event that the applicant's veterinary license expires, is revoked, or is suspended during the fiscal year in which the grant is awarded, or if the applicant fails to practice at least 30% large animal veterinary medicine in the designated counties named in the applicant's application, the applicant shall repay the entire amount received from the fund;

(3) statement from the applicant that the applicant shall have no conflicting service obligation that would prevent the State from benefitting from the applicant's services, with the exception of service in the National Guard or military reserve;

(4) an essay which describes the applicant's professional ambition and how those professional goals fit with the intent of the fund, which shall be submitted in a format using an eight hundred word maximum, typed in 12-point Times New Roman font, and double spaced;

(5) three personal or professional references listing the individual's name, telephone number, and email address; and

(6) certification that the applicant currently practices a minimum of 30% large animal veterinary medicine in at least one designated county.

(d) Each completed application shall be evaluated by the advisory committee staff based on the information provided in the application and in accordance with the fund criteria described in this rule and in Article 88 of Chapter 106 of the North Carolina General Statutes.

(e) The staff shall review all applications for completeness. If staff deems an application incomplete in that it does not contain information required by statute or these rules, the applicant shall be asked by the authority staff to complete the application within seven days if the application deadline has expired.

(f) After the staff has reviewed each application for completeness, the advisory committee shall then review the applications prepared by each applicant.

(g) All applicants shall meet the following criteria for grant eligibility:

(1) the applicant must practice veterinary medicine in at least one of the approved counties pursuant to G.S. 106-1077;

(2) the applicant must be a currently licensed veterinarian in the state of North Carolina; and

(3) the applicant shall be practicing at least thirty percent cumulatively of their veterinary operation within the field of large animal care.

(h) Grants shall be awarded contingent on the availability of sufficient funds to do so. Grants shall be conveyed to grant recipient(s) through contracts with the North Carolina Agricultural Finance Authority. If the advisory committee determines that grants are not being used for the purpose for which they were awarded, the fund shall immediately cease making payments under the grant schedule and shall demand return of all amounts from the grant pursuant to G.S. 106-1079. Grant recipient(s) must reimburse the fund all funds that the advisory committee determines to have been spent in violation of G.S. 106-1079(e).

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

24 NCAC 02D .0104 Grant Agreement {#sec-24-ncac-02d-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0104}

(a) The advisory committee shall approve applications based on the criteria set forth by Article 88 of Chapter 106 of the North Carolina General Statutes. Once approved by the committee, a written agreement shall be executed between the grant recipient(s) and the North Carolina Agricultural Finance Authority.

(b) The agreement shall define the North Carolina Agricultural Finance Authority's and grant recipient's responsibilities and obligations, the project period, project scope, and the amount of grant assistance.

(c) The approved application and any support documentation submitted by the applicant shall become a part of the grant agreement.

(d) The grant agreement may be amended upon mutual consent and approval by the North Carolina Agricultural Finance Authority and the grant recipient(s). The grant recipient(s) shall submit a written request for amendment to the North Carolina Agricultural Finance Authority. Any amendment for consideration must adhere to the eligibility requirements set forth by Article 88 of Chapter 106 of the Noth Carolina General Statutes.

(e) Grant payments shall be made only for activities within the grant contract period and projects may not begin until the North Carolina Agricultural Finance Authority and grant recipient(s) sign the agreement.

(f) The grant agreement shall include a requirement that the grant recipient(s) understands, acknowledges, and agrees that in the event that the grant recipient'(s') veterinary license expires, is revoked, or is suspended during the fiscal year in which the grant is awarded, or the grant recipient(s) fails to practice a minimum of 30% large animal veterinary medicine in at least one designated county named in the grant recipient'(s') application, the grant recipient(s) shall repay the entire amount received from the Fund.

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

24 NCAC 02D .0105 Reporting {#sec-24-ncac-02d-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0105}

(a) Grant recipients shall submit to the North Carolina Agricultural Finance Authority a written progress report within 180 days of receipt of the grant.

(b) Written reports shall describe the status of the project, progress toward achieving program objectives, notable occurrences, any problems encountered, and steps taken to overcome the problems, and a statement of affirmation that supports the following:

(1) the grant recipient's veterinary license has not expired, been revoked, or been suspended, and

(2) the grant recipient(s) is currently practicing a minimum of 30% large animal veterinary medicine across their cumulative practice in at least one designated county named in the grant recipient's(s') application.

(c) Upon completion of the project, the grant recipient shall make a final written report to the North Carolina Agricultural Finance Authority that shall include project accomplishments and benefits, all expenditures by line item as established in the application, and a statement of affirmation that supports the following:

(1) the grant recipient's veterinary license has not expired, been revoked, or been suspended, and

(2) the grant recipient(s) practiced a minimum of 30% large animal veterinary medicine across their cumulative practice in at least one designated county named in the grant recipient's(s') application.

(d) The North Carolina Agricultural Finance Authority shall review the progress reports for completeness, which shall include a showing of how the project is meeting its stated goals and performance standards. If the North Carolina Agricultural Finance Authority finds that the report is deficient in showing how the project is meeting its stated goals and performance standards, the grant recipient(s) shall be notified of the deficiency and shall provide a changed and corrected report within 30 business days. A corrected or changed report shall be submitted to the North Carolina Agricultural Finance Authority within 30 business days.

(e) All grant funds shall be spent within 180 days of receipt by the grant recipient. If grant funds are not spent by the grant recipient by the end of this 180-day period, the grant funds shall be returned to the North Carolina Agricultural Finance Authority.

(f) Grant recipient(s) shall submit monitoring reports annually to the North Carolina Agricultural Finance Authority by email at largeanimalvetgrants@ncagr.gov, as well as mailed to or hand delivered to 1101 Spring Forest Road, Suite 150, Raleigh, North Carolina 27615. The monitoring reports shall include all the reporting requirements set forth in Paragraph (b) of this Rule.

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

24 NCAC 02D .0106 Records {#sec-24-ncac-02d-.0106 omnilex-key=us-nc-regs-official--title-24--24 NCAC 02D .0106}

Grant recipients shall keep financial records, as defined in Rule .0102 of this Section, of the project for a period of five years, following completion of the project, or until audited. The records shall be made available to the Commissioner and the North Carolina Agricultural Finance Authority upon request. The North Carolina Agricultural Finance Authority shall maintain and dispose of paper and electronic records in accordance with the approved Functional Schedule for North Carolina State Agencies, Program Record Retention and Disposition Schedule and Electronic Records and Imaging Policy, incorporated by reference with subsequent editions and amendments. The policy can be accessed free of charge at https://archives.ncdcr.gov/documents/functional-schedule-state-agencies.

History

Authority G.S. 106-1074; S.L. 2023-134, s. 10.1(c)
Eff. July 1, 2025.

Chapter 03 Safety and Health Review Commission

24 NCAC 03 .0101 Definitions {#sec-24-ncac-03-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0101}

As used herein:

(1) "Act" means the Occupational Safety and Health Act of North Carolina, Article 16, Chapter 95 of the General Statutes.

(2) "Affected employee" means an employee of a cited employer who is exposed to or has access to the alleged hazard described in the citation.

(3) "Hearing Examiner" is synonymous with the "Administrative Law Judge" and means a person appointed by the Chairman of the North Carolina Occupational Safety and Health Review Commission pursuant to G.S. 95-135(c).

(4) "Authorized employee representative" means a labor organization whether local or international which has a collective bargaining relationship with the cited employer and which represents affected employees. Such an organization may appear through an authorized representative. Affected employees may appear pro se (unrepresented by counsel), through an attorney at law, or through an authorized employee representative. See Rules .0202 and .0203 of this Chapter.

(5) "Authorized representative" includes an authorized employee representative; a bona fide full-time officer or employee of a party or intervenor which is an association, partnership, corporation, or other business entity; and, for a cited employer, includes its attorney at law of record but excludes private safety consultants.

(6) "Citation" means a written communication issued by the Commissioner of Labor to an employer pursuant to G.S. 95-137.

(7) "Notification of proposed penalty" means a written communication issued by the Commissioner of Labor to an employer pursuant to G.S. 95-137.

(8) "Day" means a calendar day.

(9) "Working day" means all days except Saturdays, Sundays, and days which North Carolina observes as holidays, which may differ from Federal holidays.

(10) "Proceeding" means any proceeding before the North Carolina Occupational Safety and Health Review Commission or Hearing Examiner.

(11) "Respondent" means an employer who has been issued a citation.

(12) "Complainant" means the Commissioner of Labor of North Carolina.

(13) "Pleadings" are complaints and answers filed under Rule .0304 of this Chapter, petitions for modification of abatement and objecting parties' responses filed under Rule .0305 of this Chapter, and statements of reasons and contestants' responses filed under Rule .0306 of this Chapter. A "motion" is not a pleading within the meaning of these Rules.

(14) "E-File System" means to file documents with the Occupational Safety and Health Review Commission by email to the Review Commission's filing email address: NCOSHRC@oshrc.labor.nc.gov.

(15) Unless otherwise specified, definitions set forth in G.S. 95-127 are hereby adopted.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014
Amendment Eff. October 1, 2025.

24 NCAC 03 .0102 Scope of Rules: Applicability of North Carolina Rules {#sec-24-ncac-03-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0102}

Civil Procedure.

(1) The Rules of Procedure of the Safety and Health Review Board of North Carolina shall govern all proceedings before the Safety and Health Review Board of North Carolina and its hearing examiners, except where contests are initiated by agricultural employers or employees the Administrative Procedures Act shall apply.

(2) In the absence of a specific provision, procedure shall be in accordance with the North Carolina Rules of Civil Procedure.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0103 Use of Gender and Number {#sec-24-ncac-03-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0103}

(a) Words importing the singular number may extend to and be applied to the plural and vice versa.

(b) Words importing one gender may be applied to the other.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0104 Computation of Time {#sec-24-ncac-03-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0104}

(a) In computing any period of time prescribed or allowed in these Rules, the day from which the designated period begins to run shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday, or legal holiday. When the period of time prescribed or allowed is less than seven days, intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation.

(b) Where service of a pleading or document is by mail pursuant to Rule .0107 of this Section, three days shall be added to the time allowed by these Rules for filing of a responsive pleading. Service within the meaning of this Rule includes issuance of documents by the hearing examiner, Review Board or its Chairman.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0105 Extensions of Time {#sec-24-ncac-03-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0105}

Requests for extensions of time for the filing of any pleading or documents must be received in the Review Commission office in advance of the date on which the pleading or document is due to be filed. Such requests may be oral or in writing. Oral requests shall be followed by a letter or email addressed to the Office of the Review Commission, setting out the substance of the request. In exigent circumstances an extension of time may be granted even though the request was filed after the designated time for filing has expired. In such circumstances, the party requesting the extension must show, in writing, the reasons for the party's failure to make the request before the time prescribed for the filing had expired. The motion may be acted upon before the time for response has expired.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014
Amendment Eff. October 1, 2025.

24 NCAC 03 .0106 Record Address {#sec-24-ncac-03-.0106 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0106}

(a) The initial pleading filed by any person shall contain that person's name, physical address and mailing address, email address, and telephone number. Any change in such information must be communicated promptly in writing to the Review Commission, and to all other parties and intervenors. A party or intervenor who fails to furnish such information shall be deemed to have waived his right to notice and service under these Rules.

(b) Representatives, parties, and intervenors who file case documents electronically in the Commission's E-File System pursuant to Rule .0108 of this Section, are responsible for both maintaining a valid email address associated with the registered account and regularly monitoring that email address.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014
Amendment Eff. October 1, 2025.

24 NCAC 03 .0107 Service and Notice {#sec-24-ncac-03-.0107 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0107}

(a) At the time of filing pleadings or other documents, a copy thereof shall be served by the filing party or intervenor on every other party or intervenor by postage prepaid first-class or by personal delivery. For electronically-filed documents filed via the Review Commission's E-file System, service shall be deemed accomplished by the simultaneous service of the document by email on all other parties and intervenors in the case, together with proof of service pursuant to Paragraph (d) of this Section. If affected employees are represented by an authorized employee representative, the Complainant and the Respondent shall serve a copy of the Statement of Employer's/Respondent's Position, and, where applicable under Rule .0304 of this Chapter, copies of the complaint and answer in this case on the authorized employee representative in accordance with Paragraph (c) of this Rule. Both the Complainant and the Respondent shall also serve on any authorized employee representative notice of any request for or proposed modification of abatement. In cases in which employees are represented by an authorized employee representative, the Complainant and Respondent shall notify the Review Commission of this fact within 10 days after filing of their Statement of Employer's/Respondent's Position, and in such cases, the Review Commission shall serve on the authorized employee representative notice of hearings and copies of any final order of the Review Commission or Hearing Examiners in the manner prescribed by Paragraph (c) of this Rule.

(b) Service upon a party or intervenor who has appeared through an authorized representative or attorney need be made only upon such authorized representative or attorney.

(c) Unless otherwise ordered, service may be accomplished by postage prepaid first-class mail, by personal delivery, or by e-mail if agreed to by all parties. Service is deemed effected at the time of mailing (if by mail) or at the time of personal delivery (if by personal delivery), or at the time the e-mail was sent (if by e-mail).

(d) Proof of service shall be accomplished by a written statement attached to the document served which sets forth the date and manner of service. Such certificate of service shall be filed with the pleading, document, or recording.

(e) Service to employees shall be accomplished by posting in at least one location where all affected employees have an opportunity to read the notice or pleading. Proof of posting shall be filed not later than the first working day following the posting.

(f) The Employer Respondent must post notice of contest, notice of hearing, notice of settlement, and any order or decision of a Hearing Examiner or of the Review Commission other than a procedural order. The Employer Respondent must also post the notice informing affected employees of their right to elect party status in any proceedings pursuant to Rule .0201 of this Chapter and of their right to contest the provisions of the abatement period.

(g) The notice to affected employees in the following form shall be required to be posted to comply with the requirements pursuant to Paragraph (f) of this Rule and shall be as follows:

TO THE EMPLOYEES OF:

Your employer has been charged with a violation of the Occupational Safety and Health Act of North Carolina and is contesting this alleged violation before the Safety and Health Review Commission, an independent agency. If you want to have a say in this matter, you must write to:

As an affected employee, you have a right to participate in this matter as a party. To participate as a party, you must request party status.

Write to:

(h) The notice of settlement and notice for modification of abatement must be posted.

(1) Settlement. In any case where a settlement is proposed, a hearing shall be held on request of any party, intervenor, employee, or authorized employee representative. The employer must post a notice indicating that a settlement is proposed and that the settlement may be approved by a Hearing Examiner without a hearing, unless objection is received from any party, intervenor, employee, or authorized employee representative within 15 working days of the date of the posting of the notice of proposed settlement. Such notice of proposed settlement shall be posted promptly after the parties agree on the proposed settlement, and in no case later than five days after the agreement on the proposed settlement. The notice must inform employees that they have a right to object to the reasonableness of any abatement time and that to protect such rights they must write to the North Carolina Occupational Safety and Health Review Commission, 1101 Mail Service Center, Raleigh, North Carolina, 27699, NCOSHRC@oshrc.labor.nc.gov, stating the grounds for their objection and their desire to participate.

(2) Modification of Abatement. In any case where a petition for modification of abatement is filed, the employer must post a notice in a conspicuous place of this fact, together with a notice that employees or authorized employee representatives have a right to object to the proposed modification of abatement. The notice must inform affected employees that they have a right to appear to object to the proposed modification of abatement; and that to protect such a right they must file notice of their objection within 15 working days from the date of posting of such petition for modification of abatement and documents pertaining to the case may be inspected at the Review Commission office. Such notice must be filed with the North Carolina Occupational Safety and Health Review Commission, 1101 Mail Service Center, Raleigh, North Carolina, 27699, NCOSHRC@oshrc.labor.nc.gov.

(i) Where an employee or employee representative files notice of objection to an abatement period, the notice must be served on the Complainant, the Commissioner of Labor of North Carolina, and on the employer in the manner described in Paragraph (c) of this Rule. The employer shall then post the notice.

(j) Where posting is required by this Rule, such posting shall be maintained until the commencement of a hearing or until earlier disposition unless otherwise provided in these Rules.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014
Amended Eff. October 1, 2025.

24 NCAC 03 .0108 Filing {#sec-24-ncac-03-.0108 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0108}

(a) A notice of contest under the provisions of Rule .0303 of this Chapter or under the provisions of Rule .0306 of this Chapter shall be filed with the Director who issued the citation or amended citation at the address shown thereon.

(b) Unless otherwise required by these Rules, all other papers relating to the contest shall be filed with the Board at Raleigh, North Carolina.

(c) Except where inconsistent with other Board Rules all filing may be accomplished in a manner consistent with Rule .0107(c) of this Section.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0109 Consolidation {#sec-24-ncac-03-.0109 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0109}

Cases may be consolidated on the motion of any party, or on the Board's or hearing examiner's own motion where there exist common parties, common question of law or fact, or both, or in such other circumstances as justice and the administration of the Act require.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0110 Severance {#sec-24-ncac-03-.0110 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0110}

Upon its own motion, or upon motion of any party or intervenor, the Board or the hearing examiner may, for good cause, order any proceeding severed with respect to some or all issues or parties.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0111 Protection of Trade Secrets: Confidential Information {#sec-24-ncac-03-.0111 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0111}

(a) Any claim of privileged information shall be in writing or on the record if made at a hearing. The claim must:

(1) identify the information claimed to be privileged;

(2) present facts supporting the claim; and

(3) set forth the relief sought.

(b) Any party wishing to oppose a written claim of privilege must do so within 15 days, except if the claim is made at a hearing, the hearing examiner or Board may prescribe a briefer response time. The opposing party must present facts to support opposition to the claim of privilege.

(c) The hearing examiner or Board may review the subject information in camera and may, if necessary, receive it ex parte.

(d) If the claim is upheld, the hearing examiner or Board shall issue such orders as may be appropriate to protect the confidentiality of the privileged information.

(e) If the claim is rejected, the claimant shall have a right to an order to seal the subject information, pending an interlocutory appeal which shall be given priority consideration by the Board.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0201 Party Status {#sec-24-ncac-03-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0201}

Affected employees or their authorized employee representative may elect to participate as parties in an action concerning their employer. Such election must ordinarily be made within 30 days prior to the time the case is set for initial hearing on the merits. However, in cases where settlement is proposed or modification of abatement is proposed, such employees or their authorized employee representative shall have 15 days after notice, as required by these Rules, of the proposed settlement or proposed modification of abatement in which to seek or participate as parties in the case and to be heard on any questions, including the proposed settlement or modification of abatement.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0202 Intervention: Appearance by Non-Parties {#sec-24-ncac-03-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0202}

(a) A petition for leave to intervene may be filed at any stage of a proceeding before a commencement of the hearing.

(b) The petition shall set forth the interest of the petitioner in the proceeding and show that the participation of the petitioner will assist in the determination of the issues in question, and that the intervention will not unnecessarily delay the proceeding.

(c) The Board or the hearing examiner may grant a petition for intervention to such an extent and upon such terms as the Board or the hearing examiner shall determine.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0203 Representation of Parties and Intervenors {#sec-24-ncac-03-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0203}

(a) Any party or intervenor may appear in person, through an attorney, through an authorized representative as defined in Rule .0101(4) of this Chapter, or through a representative as defined in Rule .0101(5) of this Chapter. In accordance with rules of the North Carolina State Bar which govern the practice of law in North Carolina, an out-of-state attorney-at-law must be associated with a North Carolina attorney-at-law in order to appear before either the Review Board or its hearing examiners.

(b) An authorized representative or an attorney of a party or intervenor shall be deemed to control all matters respecting the interest of such party or intervenor in the proceeding.

(c) Withdrawal of appearance may be effected by filing a written notice of withdrawal and by serving a copy thereof on the Review Board and on all parties and intervenors.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0301 Form {#sec-24-ncac-03-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0301}

(a) Except as provided herein, there are no specific requirements as to the form of any pleading. A pleading is simply required to contain a caption sufficient to identify the parties in accordance with Rule .0302 of this Section, which shall include the Board's docket number as assigned, and a clear and plain statement of the relief that is sought, together with the grounds therefore.

(b) Pleadings and other documents (other than exhibits) shall be typewritten and double-spaced.

(c) Pleadings shall be signed by the party filing or by his attorney or authorized representative. Such signing constitutes a representation by the signer that he has read the document or pleading; that to the best of his knowledge, information, and belief the statements made therein are true; and that it is not interposed for delay.

(d) The Board may refuse for filing any pleading or document which does not comply with the requirements of Paragraphs (a) through (c) of this Rule.

(e) Citations to unpublished hearing examiner or Review Board decisions on North Carolina OSHA cases should include the names of the Commissioner of Labor of North Carolina and the respondent-employer, the OSHANC case number and year assigned, the letters "RB" if a Review Board decision or last name if a hearing examiner decision, and the year decided, for example: Brooks v. Ace, Inc., OSHANC 85-1200 (RB 1985); or Brooks v. Ace, Inc., OSHANC 85-1200 (Jones 1985). Citation to the published North Carolina Occupational Safety and Health Decisions should follow the form specified therein.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0302 Caption: Titles of Cases {#sec-24-ncac-03-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0302}

(a) Cases initiated by a notice of contest shall be titled "Commissioner of Labor, Complainant v. (Name of Contestant), Respondent."

(b) Cases initiated by a petition for modification of the abatement period shall be titled: "(Name of Employer), Petitioner v. Commissioner of Labor, Respondent."

(c) Cases initiated by employee objection to the abatement period shall be titled as provided in Paragraph (b) of this Rule, with the name of the employee or employee representative inserted as the third party: "(Name of Employer), Petitioner v. Commissioner of Labor, Respondent v. (Name of Employee/Employee Representative), Third Party."

(d) The titles listed in Paragraphs (a) and (b) of this Rule shall appear at the left upper portion of the initial page of any pleading or document (other than exhibits) files.

(e) The initial page of any pleading or document (other than exhibits) shall show, at the upper right of the page, opposite the title, the docket number, if known, assigned by the Board.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0303 Citation {#sec-24-ncac-03-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0303}

(a) The Commissioner of Labor shall serve on the Respondent a citation stating each standard, regulation, or section of the Act allegedly violated, a description of the alleged violation, and the date by which the violation must be corrected.

(b) A recipient of the citation shall have 15 working days from receipt of such citation to file his notice of contest with the Commissioner of Labor. Failure to file a notice of contest within a specified time shall be deemed waiver of Respondent's right to contest the citation.

(c) The Commissioner of Labor shall, within 10 working days of receipt of a notice of contest, transmit the original to the Review Commission, together with copies of the citation and proposed penalty. The notice of contest shall include the employer's name, physical address and mailing address, email address, and telephone number.

(d) After the notice of contest is filed, the Review Commission shall send the employer a form entitled Statement of Employer's/Respondent's Position. The Statement of Employer's/Respondent's Position must include information sufficient to:

(1) notify the employer and other interested persons that the North Carolina Department of Labor has issued a citation alleging that the employer violated a particular standard(s), including the date of the alleged violation(s);

(2) determine whether the employer admits or denies each of the charges or admits the violation but contests the amount of the proposed penalty for that violation; and

(3) advise the employer of the consequences of failing to complete and return the form, using a statement such as:

IF YOU DO NOT RESPOND IN WRITING WITH EITHER THIS FORM OR YOUR OWN STATEMENT OF POSITION BY PROVIDING IT TO THE REVIEW COMMISSION, POSTMARKED OR DELIVERED OR EMAILED, WITHIN 20 DAYS FROM THE DAY YOU RECEIVED THIS FORM, YOUR RIGHT TO CONTEST THE NORTH CAROLINA DEPARTMENT OF LABOR'S ALLEGATIONS IS LOST.

The employer must complete the form in accordance with its instructions and return it to:

A copy shall also be mailed to:

(e) Any notice of contest shall be deemed to adequately raise any issue as to the alleged violation or proposed penalty but the employer will be limited to the specifics set out in the Statement of Employer's/Respondent's Position.

(f) In the Statement of Employer's/Respondent's Position the employer must request formal pleadings under Rule .0303 of this Section if desired. If the Respondent desires formal pleadings, the Complainant must file a complaint within 20 days of receipt of the Statement of Employer's/Respondent's Position.

(g) The form for Statement of Employer's/Respondent's Position shall be provided to the employer with the Notice of Docketing.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014
Amendment Eff. October 1, 2024.

24 NCAC 03 .0304 Complaint and Answer {#sec-24-ncac-03-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0304}

This section shall only apply where either party has, within the time specified in Rule .0303 of this Section requested formal pleadings. If formal pleadings are demanded by either party then:

(1) Complaint.

(a) The Commissioner shall file a complaint with the Board no later than 20 days after formal pleadings are demanded or after receipt of the Statement of Employer's/Respondent's Position. The complaint shall contain a notice in bold type that: WITHIN 20 DAYS OF RECEIPT OF THE COMPLAINT, RESPONDENT MUST FILE AN ANSWER WITH THE REVIEW BOARD.

(b) The complaint shall set forth all alleged violations and proposed penalties which are contested, stating with particularity:

(i) the basis for jurisdiction;

(ii) the time, location, place, and circumstances of each violation; and

(iii) the consideration upon which the period for abatement and proposed penalty on each such alleged violation is based. The complaint shall not incorporate the citation by reference.

(c) Where the Commissioner seeks in his complaint to amend his citation or proposed penalty, he shall set forth the reasons for amendment and shall state with particularity the change sought.

(2) Answer.

(a) Within 20 days after service of the complaint, the party against whom the complaint was issued shall file an answer with the Review Board.

(b) The answer shall contain a short and plain statement denying each of those allegations in the complaint which the party intends to contest and stating the reasons therefore. Any allegations not denied shall be deemed admitted. Any affirmative defense must be set out in the answer. If formal pleadings are not elected, the Respondent shall not be deemed to waive affirmative defenses and such defenses may be used at the hearing. Affirmative defenses are intended as an avoidance of the alleged violations and include, but are not limited to: creation of a greater hazard by complying with a cited standard; exemption under G.S. 95-128; failure to issue a citation with reasonable promptness under G.S. 95-137(a) or within the time limitation in G.S. 95-137(b)(3); impossibility of compliance; invalidity of the cited standard; preemption of G.S. 95-129(1) by a specific standard; preemption of a standard by a more specific standard; res judicata; or unpreventable employee misconduct.

(c) All answers filed under this Section by a corporation shall be accompanied by a separate declaration listing all parents, subsidiaries, and affiliates of that corporation, or stating that none exist.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0305 Petition for Modification of Abatement Period {#sec-24-ncac-03-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0305}

(a) An employer may file a petition for modification of abatement date when he has made a good faith effort to comply with the abatement requirements of a citation, but such abatement has not been completed because of factors beyond his reasonable control.

(b) A petition for modification of abatement date shall be in writing and shall include the following information:

(1) All steps taken by the employer and the dates of such action, in an effort to achieve compliance during the prescribed abatement period.

(2) The specific additional abatement time necessary in order to achieve compliance.

(3) The reasons such additional time is necessary including the unavailability of professional or technical personnel or of materials and equipment, or because necessary construction or alteration of facilities cannot be completed by the original abatement date.

(4) All available interim steps being taken to safeguard the employees against the cited hazard during the abatement period.

(5) A certification that a copy of the petition has been posted and, if appropriate, served on the authorized representative of affected employees, in accordance with Subparagraph (c)(1) of this Rule and a certification of the date upon which such posting and service was made.

(6) A separate declaration listing all parents, subsidiaries, and affiliates, or stating that none exist, if the petitioner is a corporation.

(c) A petition for modification of abatement date shall be filed with the Director of the Office of Occupational Safety and Health no later than the close of the working day on which abatement was originally required. A later-filed petition shall be accompanied by the employer's statement of exceptional circumstances explaining the delay.

(1) A copy of such petition shall be posted in a conspicuous place where all affected employees will have notice thereof or near such location where the violation occurred. The petition shall remain posted in accordance with Rule .0107(j) of this Chapter. Where affected employees are represented by an authorized representative, said representative shall be served with a copy of such petition.

(2) Affected employees or their representative may file an objection in writing to such petition with the Director. Failure to file such objection within 15 working days of the date of posting of such petition and of service upon an authorized representative, where required, shall constitute a waiver of any further right to object to said petition.

(3) The Commissioner or his duly authorized agent shall have the authority to approve any petition for modification of abatement date filed pursuant to Paragraph (b) and (c) of this Rule. Such uncontested petitions shall become final orders pursuant to N.C.G.S. Section 95-137(b)(1) and (4).

(4) The Commissioner or his authorized representative shall not exercise his approval power until the expiration of 15 working days from the date the petition was posted or served pursuant to Subparagraphs (c)(1) and (2) of this Rule by the employer.

(d) Where any petition is objected to by the Commissioner or affected employees, the petition, citation, and any objections shall be forwarded to the Review Board within seven working days after the expiration of the 15 working-day period set out in Subparagraph (c)(4) of this Rule.

(1) The Review Board shall docket and process such objections as expedited proceedings as provided for in Rule .0702 of this Chapter.

(2) An employer petitioning for modification of abatement period shall have the burden of proving in accordance with the requirements of N.C.G.S. Section 95-137(b)(4) that such employer has made a good faith effort to comply with the abatement requirements of the citation and that abatement has not been completed because of factors beyond the employer's reasonable control.

(3) Within 10 working days after receipt of notice of docketing by the Review Board of any objection to the Petition for Modification of Abatement Date, each objecting party shall file a response setting forth the reasons for opposing the granting or not granting of a modification date different from that requested in the petition.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0306 Employee Objections to Periods of Abatement {#sec-24-ncac-03-.0306 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0306}

(a) An affected employee or authorized employee representative may at any time within 15 working days after the employer posts a citation, file with the issuing Director a notice of contest in which objections are made to the period of abatement. Upon receipt of the notice of contest, the Director shall within 10 working days notify the Board thereof. The Director shall within 20 days from his receipt of the notice of contest, file a clear and concise statement of the reasons the period of abatement is not unreasonable.

(b) Not later than 20 days after receipt of the Director's statement referred to in Paragraph (a) of this Rule, the objecting employee or authorized employee representative shall file a response containing a clear and concise statement of the reasons why the abatement period is considered improper. The Board shall then afford an opportunity for a hearing in accordance with Rule .0702 of this Chapter.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0307 Statement of Position {#sec-24-ncac-03-.0307 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0307}

At any time prior to the commencement of the hearing, any person entitled to appear as a party, or any person who has been granted leave to intervene, may file a statement of position with respect to any or all issues to be heard.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0308 Motions {#sec-24-ncac-03-.0308 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0308}

(a) All motions filed with the Review Board prior to hearing before the hearing examiner or prior to argument before the Review Board shall be in writing, shall be served on the parties, and shall set forth reasons supporting the motion. All parties upon whom a motion is served shall have 10 days from service to file a response. During a hearing, motions may be made orally, unless the hearing examiner or Board directs otherwise. Each motion shall state with particularity the grounds upon which it is based and the relief or order sought.

(b) If oral argument is requested on any motion, the request for oral argument should be contained in a motion and set out reasons why oral argument is requested. Oral argument should be granted on a showing of good cause as to why such oral argument is required.

(c) Motions shall, in the ordinary course of proceedings, be heard and disposed of by hearing examiners to whom the case is assigned or by the Review Board when the case is before the Review Board as a whole.

(d) Any party may request an expedited hearing on a motion or a hearing on a motion before the Review Board. Such motions shall only be granted by a showing of good cause. Appeal from denial of motion may be heard by the full Review Board in its discretion.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0309 Failure to Obey Rules {#sec-24-ncac-03-.0309 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0309}

(a) Sanctions. Failure to file or serve any pleading or otherwise proceed as provided by these Rules, may result in a declaration of default and a decision against the defaulting party. The declaration and decision may be initiated by the hearing examiner or Review Board or result from the motion of a party to the hearing examiner, Review Board, or Review Board Chairman. If the decision is made by a hearing examiner or the Review Board Chairman, the decision will become the decision of the Review Board unless review is initiated by any Review Board member or by the appeal of the defaulting party.

(b) Review. Review of a decision against a defaulting party, whether made by the hearing examiner or Review Board Chairman, must be directed by a Review Board member or sought by a party within 30 days of the filing date of the decision.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0401 Withdrawals {#sec-24-ncac-03-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0401}

At any stage of a proceeding, a party may enter a notice to withdraw its notice of contest, petition for modification of abatement date, or citation. A notice to withdraw a notice of contest may only be entered when the citation contested has been fully complied with and the proposed penalty is paid in full. Any additions, amendments, or deletions from the contested citation, proposed by the Director, must be stated in a notice of settlement. Any notice of dismissal shall be served upon employees and parties in accordance with Rule .0107 of this Chapter.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0402 Pre-Hearing Conference {#sec-24-ncac-03-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0402}

(a) At any time before a hearing, the Board or the hearing examiner, on its or the hearing examiner's motion or on motion of a party, may direct the parties or their representatives to exchange information and to participate in a pre-hearing conference for the purpose of considering matters which will tend to simplify the issues or expedite the proceedings.

(b) The Board or the hearing examiner may issue a pre-hearing order which includes the agreements reached by the parties. Such order shall be served on all parties and shall be part of the record.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0403 Request for Admissions {#sec-24-ncac-03-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0403}

(a) At any time after the filing of responsive pleadings, any party may request of any other party admissions of facts to be made under oath. Each admission requested shall be set forth separately. The party upon whom the request is made shall serve a response thereto on the requesting party and the Review Board no later than 15 days after service of the request. The request for admissions shall conspicuously state that failure to timely respond may subject the party to sanctions as provided in Rule .0405 of this Section.

(b) Copies of all requests and responses shall be served on all parties in accordance with the provisions of Rule .0107(a) of this Chapter and filed with the Board within the time allotted and shall be a part of the record.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0404 Discovery Depositions and Interrogatories {#sec-24-ncac-03-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0404}

(a) Except by order of the Board or the hearing examiner, discovery depositions of parties, intervenors, or witnesses, discovery inspections by parties or intervenors, interrogatories, and requests for documents and things, directed to parties or intervenors shall not be allowed.

(b) In the event the Board or the hearing examiner grants an application for the conduct of such discovery proceedings, the order granting the same shall set forth appropriate time limits governing the discovery.

(c) The hearing examiner or Board may limit the extent of discovery, taking into account such considerations as: burdensome expense, prior opportunity of a party to acquire the information, the complexity of issues in the case, and other relevant factors.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0405 Failure to Comply with Orders for Discovery {#sec-24-ncac-03-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0405}

If any party, intervenor, or witness fails to respond timely to a subpoena, request for admissions, documents and things, or any order of the hearing examiner or Board to permit discovery in accordance with the provisions of these Rules, the Board or the hearing examiner may, in its, his, or her discretion, issue appropriate orders, including, but not limited to:

(1) Striking the pleadings or notice of contest of the defaulting party and entering judgment by default;

(2) Taxing attorney fees against the defaulting party to be awarded to the opposing party;

(3) In the case of failure to respond to request for admissions, order that the matters requested are deemed admitted; and

(4) Such other sanctions justified by the particular circumstances.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0406 Subpoenas Issued: Modify Subpoenas: Inspect and Copy Data {#sec-24-ncac-03-.0406 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0406}

(a) Any member of the Board or the hearing examiner shall, on the application of any party directed to the Board, forthwith issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence, including relevant books, correspondence, or documents, in his possession or under his control. Applications for subpoenas may be ex parte. The subpoena shall show on its face the name and address of the party at whose request the subpoena was issued.

(b) Any person served with a subpoena, or a subpoena to produce documents shall, within five days after the date of service of the subpoena upon him, move in writing to revoke or modify the subpoena if he does not intend to comply. All motions to revoke or modify shall be served on the party of whose request the subpoena was issued. The Board or hearing examiner shall revoke or modify the subpoena if, in its, his, or her opinion, the evidence of which production is required does not relate to any matters under investigation or in question in the proceedings or the subpoena does not describe with sufficient particularity the evidence of which production is required, or if for any other reason sufficient in law the subpoena is otherwise invalid. The Board or hearing examiner shall make a simple statement of procedural or other grounds for the ruling on the motion to revoke or modify. The motion to revoke or modify, any answer filed thereto, and any ruling thereon, shall become a part of the record.

(c) Persons compelled to submit data or evidence at a public proceeding are entitled to retain, or on payment of lawfully prescribed costs, to procure copies of transcripts of the data or evidence submitted by them.

(d) Upon the failure of any person to comply with a subpoena issued on the request of a party, the party, on approval of the Board, may initiate proceedings in the appropriate court for the enforcement thereof. The Board shall approve proceedings for the enforcement of the subpoena if in its judgment enforcement of such subpoena would be consistent with the law and policies of the Act. Failure to comply with a subpoena may result in imposition of sanctions set out in Rule .0405 of this Section.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0501 Notice of Hearing {#sec-24-ncac-03-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0501}

Notice of the time, place, and nature of a hearing shall be given to the parties and intervenors at least 15 days in advance of such hearing, except as otherwise provided in Rule .0702 of this Chapter.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0502 Postponement of Hearing {#sec-24-ncac-03-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0502}

(a) Postponement of a hearing ordinarily will not be allowed.

(b) Except in the case of an extreme emergency, unusual circumstances, for good cause shown, or upon consent by all parties, no such request will be considered unless received in writing at least three days in advance of the time set for the hearing.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0503 Failure to Appear {#sec-24-ncac-03-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0503}

(a) Subject to the provisions of Paragraph (c) of this Rule, the failure of a party to appear at a hearing shall be deemed to be a waiver of all rights to participate and be heard in the hearing. Unjustifiable failure to appear may result in a declaration of default and a decision against the defaulting party in accordance with Rule .0309(a) of this Chapter. Such parties shall be served with a copy of the decision of the Board.

(b) Requests for rehearing based on justifiable failure to appear must be made, in the absence of extraordinary circumstances, within five days after the scheduled hearing date.

(c) The Board or the hearing examiner, upon a timely showing of good cause, may excuse such failure to appear. In such event, the hearing may be re-scheduled.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0504 Payment of Fees and Mileage to Witnesses: Court Reporters {#sec-24-ncac-03-.0504 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0504}

Witnesses summoned before the Board or hearing examiner shall be paid the same fees and mileage that are paid witnesses in the State courts, and witnesses whose depositions are taken, and the persons taking the same, shall severally be entitled to the same fees as are paid for like services in the State court. Witness fees and mileage shall be paid by the party at whose instance the witness appears, and the person taking a deposition shall be paid by the party at whose instance the deposition is taken.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0505 Court Reporters: Fees: Cost of Transcript of Testimony {#sec-24-ncac-03-.0505 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0505}

(a) The court reporter's fees and the cost of the original transcript of testimony for depositions as provided in Rules .0504 and .0511 of this Section, shall be borne by the party which arranges for the reporter's appearance and each person who desires a copy of the transcript will be responsible for securing it and for its cost.

(b) In cases where no appeal has been effected, the Review Board will arrange for and pay for the private court reporter's fees for each hearing. If a transcript is ordered by the hearing examiner or Board and no appeal has been effected, or if the Board directs review, the Board will also pay for preparation of the original transcript and persons desiring a copy of the transcript will be responsible for securing it and for its cost.

(c) If a petition for review is filed, the court reporter's fees, cost of the original transcript, one copy for the Board, and copy for the appellant will be paid for by the appellant. Other persons desiring a copy of the transcript will be responsible for securing it and for its cost. If a cross-petition for review is filed, the cross-petitioner shall reimburse the petitioner for one-third of the cost of the court reporter's fees, original transcript, and copy for the Board.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Amended Eff. April 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0506 Transcript of Testimony {#sec-24-ncac-03-.0506 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0506}

(a) Hearings, including testimony and argument (on request) shall be transcribed verbatim. If review is directed by the Board, the Board will order the transcript and notify the parties when it is filed with the Board. If a petition for review is filed, the petitioner shall, at the time of filing, order the transcript and ensure that one copy is filed with the Board. The Board will notify parties when the transcript is filed with the Board.

(b) The public proceedings conducted by the Review Board and by its hearing examiners may be recorded by an audio-tape recorder by any person in attendance. The Chairman of the Review Board, or the hearing examiner shall control the manner of any tape recording process to ensure that it is not disruptive to the proceeding.

(c) Should it become impossible or extremely impractical for the court reporter to prepare a transcript of the evidence because of mechanical failure, loss or destruction of tapes or notes, or for any other reason, it shall become the duty of the parties to prepare a summary of evidence from their trial notes and best recollection. The prevailing party, or the party designated by the hearing examiner, shall have 30 days from the date notice is sent to him by the hearing examiner or the Review Board in which to prepare and serve upon opposing party his proposed summary of evidence. The opposing party shall review it and if he disagrees with any portion thereof, or believes that the summary is not complete, he shall have 20 days in which to serve upon the prevailing party any proposed revisions, including any deletions and additions. If the prevailing party agrees to such revisions, the two parties shall sign a certification that the summary of evidence is agreed by them to accurately reflect the substance of the testimony and other evidence presented at the hearing. If the parties cannot agree, their respective versions of the summary shall be submitted to the hearing examiner and he or she shall review the proposals, together with the hearing examiner's trial notes, and thereafter enter a ruling as to what constitutes the summary of evidence, which shall thereafter be treated for all purposes as the transcript of the proceedings.

(d) Errors in the transcript of the hearing may be corrected by the hearing examiner on his own motion, or on the motion of a party. Each correction will be made by hand with pen and ink and initialed by the hearing examiner, or the hearing examiner may sign and attach an errata sheet.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Amended Eff. April 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0507 Duties and Powers of Board and Hearing Examiner {#sec-24-ncac-03-.0507 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0507}

It shall be the duty of the Board or its hearing examiner to conduct a fair and impartial hearing, to assure that the facts are fully elicited to adjudicate all issues and avoid delay. The Board or hearing examiner shall have authority to:

(1) administer oaths and affirmations;

(2) issue authorized subpoenas;

(3) rule upon motions to revoke subpoenas;

(4) rule upon offers of proof and receive relevant evidence;

(5) take or cause depositions to be taken whenever the needs of justice would be served;

(6) regulate the course of the hearing and, if appropriate or necessary, exclude persons or counsel from the hearing for contemptuous conduct and strike all related testimony of witnesses refusing to answer any proper questions;

(7) hold conferences for the settlement or simplification of the issues;

(8) dispose of procedural requests or similar matters, including motions to amend or dismiss pleadings, to dismiss complaints or portions thereof, and to order hearings reopened or, upon motion, consolidated prior to issuance of the decision;

(9) hear and examine witnesses and to receive into the record documentary or other evidence;

(10) request the parties at any time, before, during, or after the hearing to state their respective positions concerning any issues in the case or theory in support thereof;

(11) adjourn or continue the hearing as the needs of justice and good administration require; and

(12) take any other action necessary under the foregoing and authorized by the published rules and regulations of the Board or the General Statutes.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0508 Disqualification of Member of Board or Hearing Examiner {#sec-24-ncac-03-.0508 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0508}

(a) A member of the Board or the hearing examiner may withdraw from a proceeding whenever the Board member or hearing examiner deems himself or herself to be disqualified.

(b) Any party may request a Review Board member or hearing examiner, before or at the time of the hearing, to withdraw on the grounds of personal bias or disqualification, by filing a motion. Such motion shall set forth in detail the matters alleged to constitute grounds for disqualification.

(c) If, in the opinion of the Review Board member or hearing examiner, the motion referred to in Paragraph (b) of this Rule is filed with reasonable cause and is sufficient on its face, the Review Board member or hearing examiner shall forthwith be disqualified and withdraw from the proceeding.

(d) If the Review Board member or hearing examiner denies the request for disqualification and does not withdraw from the proceeding, the Review Board member or hearing examiner shall so rule upon the record, stating the grounds for ruling and shall proceed with the hearing, or, if the hearing has closed, the Review Board member or hearing examiner shall proceed with the issuance of a decision and the provisions of Rule .0601 of this Chapter shall thereupon apply.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0509 Examination of Witnesses {#sec-24-ncac-03-.0509 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0509}

Witnesses shall be examined orally under oath or affirmation. Opposing parties shall have the right to cross-examine any witness whose testimony is introduced by an adverse party. All parties may cross-examine any witness called by the hearing examiner or Board pursuant to Rule .0507(9) of this Section.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0510 Affidavits {#sec-24-ncac-03-.0510 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0510}

An affidavit may be admitted as evidence in lieu of oral testimony if the matters therein contained are otherwise admissible and the parties agree to its admission.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0511 General Procedures: Depositions in Lieu of Oral Testimony {#sec-24-ncac-03-.0511 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0511}

(a) A motion to take the deposition of a witness in lieu of oral testimony shall be in writing and shall set forth the reasons such deposition should be taken, the name and address of the witness, the matters concerning which it is expected he will testify, and the time and place proposed for the taking of the deposition, together with the name and address of the person before whom it is desired that the deposition be taken (for purposes of this Section, hereinafter referred to as "the officer"). Such application shall be filed with the Board or hearing examiner and shall be served on all parties and intervenors not less than 30 days prior to the time when it is desired that the deposition be taken. Any party or intervenor may file a response prior to the ruling of the Board, as provided in Rule .0308 of this Chapter. Where good cause has been shown, the Board or the hearing examiner shall make and serve on the parties and intervenors an order which specifies the name of the witness whose deposition is to be taken and the time, place, and designation of the officer before whom the witness is to testify. Such officer may or may not be the officer specified in the application.

(b) Such deposition may be taken before any officer authorized to administer oaths by the laws of the United States of the place where the examination is held. If the examination is held in a foreign country, it may be taken before any secretary of embassy or legation, consul general, consul, vice consul, or consular agent of the United States.

(c) At the time and place specified in the order, the officer designated to take such deposition shall permit the witness to be examined and cross-examined under oath by all parties appearing, and the testimony of the witness shall be reduced to typewriting by the officer or under the officer's direction. All objections to questions or evidence shall be deemed waived unless made at the examination. The officer shall not have power to rule upon any objection, but shall note them upon the deposition. The testimony shall be subscribed by the witness in the presence of the officer, who shall attach a certificate stating that the witness was duly sworn, that the deposition is a true record of the testimony and exhibits given by the witness, and that the officer is not of counsel or attorney to any of the parties nor interested in the proceeding. If the deposition is not signed by the witness because of illness, death, or because the witness cannot be found, or waives signing, such facts shall be included in the certificate of the officer and the deposition may be used as fully as though signed. The officer shall immediately deliver one copy of the transcript, together with certificate, in person or by registered mail, to the Board.

(d) The Board or hearing examiner shall rule upon the admissibility of the deposition or any part thereof.

(e) All errors or irregularities in compliance with the provision of this Rule shall be deemed waived unless a motion to suppress the deposition or some part thereof is made with reasonable promptness after such defect is, or with due diligence might have been, discovered.

(f) If the parties so stipulate in writing, depositions may be taken before any person at any time or place, upon any notice and in any manner, and when so taken may be used as other depositions.

(g) Witness fees and mileage, court reporter fees, and the cost of the original transcript and copy for the Board shall be borne by the party at whose instance the deposition is taken.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0512 Exhibits {#sec-24-ncac-03-.0512 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0512}

(a) All exhibits offered in evidence shall be numbered and marked with a designation identifying the party or intervenor by whom the exhibit is offered and with the case docket number.

(b) In the absence of objection by another party or intervenor, exhibits shall be admitted into evidence as part of the record, unless excluded by the Board or hearing examiner pursuant to Rule .0513 of this Section.

(c) Unless the Board or hearing examiner finds it impractical, a copy of such exhibit shall be given to the other parties and intervenors.

(d) All exhibits offered, but denied admission into evidence, shall be identified as in Paragraph (a) of this Rule and shall be placed in a separate file designated for rejected exhibits.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0513 Rules of Evidence {#sec-24-ncac-03-.0513 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0513}

Hearings before the Board or its hearing examiner shall, insofar as practicable, be governed by the rules of evidence applicable in the State courts. Provided, however, that the Board or hearing examiner may exercise the right at all times to receive and give due regard to hearsay evidence if the interests of justice so require.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0514 Burden of Proof {#sec-24-ncac-03-.0514 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0514}

(a) In all proceedings commenced by the filing of a notice of contest, the burden of proof shall rest with the Commissioner to prove each element of the contested citation by the greater weight of the evidence. The burden of proof as to all affirmative defenses shall be upon the Respondent to prove each element of the affirmative defense by the greater weight of the evidence.

(b) In proceedings under Rule .0305 of this Chapter for modification of the abatement period, the burden of proof shall rest with the petitioner.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0515 Objections {#sec-24-ncac-03-.0515 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0515}

(a) Any objection with respect to the conduct of the hearing, including any objection to the introduction of evidence or a ruling by the Board or the hearing examiner, may be stated orally or in writing, accompanied by a short statement of the grounds for the objection, and such objection shall be included in the record. No such objection shall be deemed waived by further participation in the hearing.

(b) Whenever evidence is excluded from the record, the party offering such evidence may make an offer of proof, which shall be included in the record of the proceeding.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0516 Filing of Brief: Oral Arguments {#sec-24-ncac-03-.0516 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0516}

Any party shall be entitled, upon request, to a reasonable period at the close of the hearing for oral argument, which shall be included in the record on request of any party. Any party may, at the discretion of the hearing examiner, be permitted to file a post-hearing brief, proposed findings of fact and conclusions of law, or both. The Board or the hearing examiner may fix a reasonable period of time for such filing, but such initial period may not exceed 30 days, except for good cause, from the receipt by the party of the transcript of the hearing. Any party shall be entitled to file a memorandum of additional authority with the hearing examiner or Review Board, within ten days after the date of the hearing.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0601 Decisions of Hearing Examiner {#sec-24-ncac-03-.0601 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0601}

(a) The decision of the hearing examiner shall be in writing and shall include findings of fact, conclusions of law, and an order.

(b) The hearing examiner shall sign the decision, and said decision shall be effected from the date it is filed with the offices of the Review Board. Upon filing of the decision, jurisdiction shall rest solely in the Board, and all motions, petitions, and other pleadings filed subsequent to such issuance shall be addressed to the Board.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0602 Review: Briefs for Review {#sec-24-ncac-03-.0602 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0602}

(a) Petitioning for review. Any member of the Board may direct that a decision of a hearing examiner be reviewed by the entire Board as a whole. Any party adversely affected or aggrieved by the decision of the hearing examiner (pursuant to Rule .0309 or .0601 of this Chapter) or by the decision of the Chairman of the Review Board (pursuant to Rule .0309 of this Chapter) may file a petition for review. The petitioner or cross-petitioner must comply with applicable Rules .0505 and .0506 of this Chapter. If no direction for review or petition for review is effected within 30 days from the date on which the hearing examiner's or Chairman's decision is filed with the Board, such decision shall become the final order of the Review Board. A petition for review or cross-petition for review may be conditional: either may state that review is sought only upon the existence of an opposing party's petition for review. A cross-petition for review may be filed within seven days of notice from the opposing party of its petition for review.

(b) Content of the petition. A petition for review or cross-petition for review shall concisely and precisely state the portion(s) of the decision for which review is sought; refer to the citations and citation items (for example, Citation 1, Item 3) for which review is sought; identify by number any fact or conclusion set forth by the hearing examiner which is not supported by a preponderance of the evidence or which is contended to constitute an error of law; and identify any error contended to be prejudicial or any instance which is contended to be an abuse of discretion.

(c) Procedure; briefs. A petition for review or cross-petition for review, timely filed, shall be deemed granted upon receipt by the Review Board. All interested parties to the original hearing shall be notified of the date and the time and place of such hearing and shall be allowed to appear in person or by representative as previously defined. Parties on appeal to the Review Board shall file a brief of reasons and supporting authorities relied on. Failure to file a brief may result in judgment against the parties for failure to comply with these Rules. The original and three copies of the brief shall be filed with the Board. A party shall, prior to the statement of facts, designate in his brief those pages of the transcript relevant to each portion of the decision and order of the hearing examiner to which exception is taken. The purpose of this Rule is to require parties to notify the Review Board of any pages or parts of the transcript which are irrelevant to the decision before the Review Board, as well as to notify the Review Board of those pages and parts of the transcript which are relevant. A cross-petitioner shall file a single brief divided into two distinct sections: the first section shall respond to the petitioner's brief; the second section shall set forth issues on cross-appeal in accordance with this Rule. A petitioner's reply brief shall be limited to the issues raised in the second section of the cross-petitioner's brief.

(1) When review is directed by the Board, the Commissioner of Labor shall file the first brief within 30 days after being notified by the Board that the transcript of the hearing has been filed with the Board. Any opposing party shall then file its brief within 30 days of service of the Commissioner's brief.

(2) If a petition for review is filed, the petitioning party shall file the first brief within 30 days of being notified by the Board that the transcript of the hearing has been filed with the Board. Any opposing party, including a cross-petitioner, shall file its brief within 30 days of service of the petitioning party's brief.

(3) If a cross-petition for review is filed, the petitioner for review shall file any reply brief within 15 days of service of the cross-petitioner's brief.

(4) If a petition for interlocutory review is filed and the hearing examiner or Board permits or orders the filing of briefs, the first brief must be filed by the petitioner within 15 days of notice that review is granted. Any opposing party shall file its brief within 15 days of service of the petitioning party's brief.

(5) The brief of an amicus curiae may be filed only by leave of the Review Board Chairman. The motion for leave shall identify the interest of the applicant and shall state the reasons why a brief of an amicus curiae is desirable. Any amicus curiae shall file its brief within the time allowed the party whose position the amicus will support.

Normally, review will be strictly limited to issues raised in the petition for review and cross-petition for review, or, if review is directed by the Board, review will normally be limited to issues upon which the hearing examiner passed judgment.

(d) Upon review of any decision of a hearing examiner, the Board may adopt, modify, or vacate the decision of the hearing examiner and notify the interested parties. The report, decision, or determination of the Board upon review shall be final unless further appeal is made to the court as provided in Rule .0605 of this Section.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Amended Eff. April 1, 1993
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0603 Stay of Final Order {#sec-24-ncac-03-.0603 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0603}

(a) Any party aggrieved by a final order or other final determination of the Board or hearing examiner, may, in cases where the order or determination is not automatically stayed by operation of law, file a motion for a stay.

(b) Such motion shall set forth the reasons a stay is sought and the length of the stay requested.

(c) The Board or hearing examiner may order such stay for the period requested or for such longer or shorter period as is appropriate.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0604 Oral Argument Before the Board {#sec-24-ncac-03-.0604 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0604}

The Board or hearing examiner shall have the right to require oral argument, to regulate its order of presentation, and to limit the time allowed for oral argument. If either party has failed to appear, the party present may be allowed to proceed with its argument.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0605 Judicial Review {#sec-24-ncac-03-.0605 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0605}

Any person who is or may be adversely affected by a final order or other final determination of the Board in a contested case may, within 30 days from the date such order or determination is entered, seek judicial review in accordance with and subject to the provisions of G.S. 95-141 and G.S. 150B. The order shall be deemed entered on the date filed and mailed to all parties. In addition to the copy filed with the court, a copy of the petition for judicial review shall be filed with the Review Board office and served on the opposing party.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0701 Settlement {#sec-24-ncac-03-.0701 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0701}

(a) Settlement is encouraged at any stage of the proceedings.

(b) A settlement agreement, submitted for approval, should state the terms of the settlement, specify any matter which remains to be decided, and state whether there has been any employee objection to the reasonableness of any abatement time.

(c) A settlement agreement, submitted for approval, shall be posted and served in accordance with Rules .0107(e) and .0107(f) of this Chapter, and may not be approved prior to the expiration of time limits set forth in Rule .0107(h)(1) of this Chapter. Upon timely receipt of any employee objection to the reasonableness of any abatement date, the matter shall be scheduled for hearing before a hearing examiner.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0702 Expedited Proceeding {#sec-24-ncac-03-.0702 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0702}

(a) Upon application of any party or intervenor, or upon his own motion, any member of the Board or the hearing examiner may order an expedited proceeding.

(b) The Board or hearing examiner in an expedited proceeding shall make necessary rulings with respect to time for filing of pleadings and with respect to all matters, without reference to times set forth in these Rules, and shall do all other things necessary to complete the proceeding in the minimum time consistent with fairness. All parties and intervenors shall be notified of any expedited proceedings.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0703 Standards of Conduct {#sec-24-ncac-03-.0703 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0703}

All persons appearing in any proceeding shall conform to the standards of ethical conduct required in the State courts.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0704 Ex Parte Communication {#sec-24-ncac-03-.0704 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0704}

(a) There shall be no ex parte communication, with respect to the merits of any case not concluded, between the Board, including any member, officer, employee, or agent of the Board who is employed in the decisional process, and any of the parties or intervenors.

(b) In the event such ex parte communication occurs, the Board or the hearing examiner may make such orders to take such action as fairness requires. Upon notice and hearing, the Board may take such disciplinary action as is appropriate in the circumstances against any person who knowingly and willfully make or solicits the making of a prohibited ex parte communication.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0705 Restriction on Participation by Commissioner and Board Members {#sec-24-ncac-03-.0705 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0705}

The Commissioner or his agent shall not discuss any contested case with the Review Board or hearing examiners. Review Board members shall not be present at or participate in a hearing of any matter before a hearing examiner. No hearing examiner, law clerk, or member of the Review Board shall at any time during that person's tenure in office appear at any level, either administrative or judicial, in any proceeding which originated before the Board.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0706 Inspection and Reproduction of Documents {#sec-24-ncac-03-.0706 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0706}

(a) Subject to provisions of law restricting public disclosure of information, any person, may, at the offices of the Board, inspect and copy any document filed in any proceeding.

(b) Costs shall be borne by such person.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0707 Restrictions with Respect to Former Employees {#sec-24-ncac-03-.0707 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0707}

No former employee of the Board or the Commissioner (including a member of the Board or the Director) shall appear before the Board as an attorney or other representative for any party in any proceeding or other matter, formal or informal, in which he participated personally and substantially during the period of his employment.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0708 Adoption of Rules {#sec-24-ncac-03-.0708 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0708}

Chapter 150B of the General Statutes governs the adoption of Rules by the Board. Petitions for changes in the Board's rules should be guided by G.S. 150B-20.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0709 Construction {#sec-24-ncac-03-.0709 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0709}

These Rules shall be construed to secure an expeditious, just, and inexpensive determination of every case.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

24 NCAC 03 .0710 Penalties {#sec-24-ncac-03-.0710 omnilex-key=us-nc-regs-official--title-24--24 NCAC 03 .0710}

All penalties assessed by the Board are civil.

History

Authority G.S. 95-135
Temporary Rule Eff. October 2, 1991 For a Period of 180 Days to Expire on March 30, 1992
Eff. February 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 16, 2014.

Chapter 05 State Health Plan Purchasing Alliance

24 NCAC 05 .0101 Purpose {#sec-24-ncac-05-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0101}

History

Status: repealed
Filed as a Temporary Adoption Eff. April 22, 1994 for a Period of 180 Days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 143-626; 143-629; H.B. 729, Article 66, ch. 143
Eff. July 1, 1994
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0102 Selection {#sec-24-ncac-05-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0102}

History

Status: repealed
Filed as a Temporary Adoption Eff. April 22, 1994 for a Period of 180 Days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 143-626; 143-629; H.B. 729, Article 66, ch. 143
Eff. July 1, 1994
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0201 Purpose {#sec-24-ncac-05-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0201}

History

Status: repealed
Authority G.S. 143-626
Eff. July 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0202 Establishment of Alliance Market Areas {#sec-24-ncac-05-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0202}

History

Status: repealed
Authority G.S. 143-626
Eff. July 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0203 Certification, Recertification and Decertification {#sec-24-ncac-05-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0203}

History

Status: repealed
Authority G.S. 143-626
Eff. January 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0204 Board Monitoring Responsibilities {#sec-24-ncac-05-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0204}

History

Status: repealed
Authority G.S. 143-626
Eff. July 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0205 Member Services {#sec-24-ncac-05-.0205 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0205}

History

Status: repealed
Authority G.S. 143-626; 143-628
Eff. January 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0206 Coordination of Member Services Among Alliances {#sec-24-ncac-05-.0206 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0206}

History

Status: repealed
Authority G.S. 143-626; 143-628
Eff. July 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0207 Requests for Participation by Ahcs {#sec-24-ncac-05-.0207 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0207}

History

Status: repealed
Authority G.S. 143-628; 143-629
Eff. January 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0301 Purpose {#sec-24-ncac-05-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0301}

History

Status: repealed
Filed as a Temporary Adoption Eff. April 22, 1994 for a Period of 180 Days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 143-626; 143-629; H.B. 729, Article 66, ch. 143
Eff. July 1, 1994
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0302 Designation Process {#sec-24-ncac-05-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0302}

History

Status: repealed
Filed as a Temporary Adoption Eff. April 22, 1994 for a Period of 180 Days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 143-626; 143-629; H.B. 729, Article 66, ch. 143
Eff. July 1, 1994
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0303 Designation Review Technical Advisory Committee {#sec-24-ncac-05-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0303}

History

Status: repealed
Filed as a Temporary Adoption Eff. April 22, 1994 for a Period of 180 Days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 143-626; 143-629; H.B. 729, Article 66, ch. 143
Eff. July 1, 1994
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0401 Purpose {#sec-24-ncac-05-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0401}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0402 Definitions {#sec-24-ncac-05-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0402}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0403 Application for Membership {#sec-24-ncac-05-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0403}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0404 Participation Requirements {#sec-24-ncac-05-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0404}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0405 Annual Renewal {#sec-24-ncac-05-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0405}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0406 Employer Qualification and Employee Enrollment Period {#sec-24-ncac-05-.0406 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0406}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0407 Waiting Period {#sec-24-ncac-05-.0407 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0407}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0408 Open Enrollment Period {#sec-24-ncac-05-.0408 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0408}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0409 Enrollment Additions Outside Open Enrollment {#sec-24-ncac-05-.0409 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0409}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0410 Disenrollment of Member Small Employer {#sec-24-ncac-05-.0410 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0410}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0411 Disenrollment of Enrollees {#sec-24-ncac-05-.0411 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0411}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0412 Continuation of Benefits {#sec-24-ncac-05-.0412 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0412}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0413 Participation of and Payment to Insurance Agents and Brokers {#sec-24-ncac-05-.0413 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0413}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0414 Alliance Participation Fee {#sec-24-ncac-05-.0414 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0414}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0415 Notification of Rate Changes {#sec-24-ncac-05-.0415 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0415}

History

Status: repealed
Authority G.S. 143-626
Eff. August 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

24 NCAC 05 .0416 Reserved for Future Codification {#sec-24-ncac-05-.0416 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0416}

24 NCAC 05 .0417 Reserved for Future Codification {#sec-24-ncac-05-.0417 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0417}

24 NCAC 05 .0418 Reserved for Future Codification {#sec-24-ncac-05-.0418 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0418}

24 NCAC 05 .0419 Monthly Payments to Accountable Health Carriers {#sec-24-ncac-05-.0419 omnilex-key=us-nc-regs-official--title-24--24 NCAC 05 .0419}

History

Status: repealed
Authority: G.S. 143-626; 143-631
Eff. October 1, 1995
Repealed Eff. December 31, 2000 pursuant to S.L. 2000-67, s.21.2.

Chapter 06 Lottery Commission

Subchapter A

24 NCAC 06A .0101 Definitions {#sec-24-ncac-06a-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0101}

In addition to defined terms in G.S. 18C-901 and G.S. 18C-1001, the following definitions apply throughout this Rules Manual, unless otherwise specified in the Rule, Section, or Subchapter:

(1) "Abnormal Wagering Activity" means Wagering Activity exhibited by one or more Players and considered by an Operator as a potential indicator of Suspicious or Illegal Wagering Activity, including the size of a Player's Wager, increased Wagering volume on a particular Wagering Event or Wager Type, or unusual patterns of Wagering over a period of time.

(2) "Advertisement" means a notice, announcement, or communication to the public, or any specific members thereof, made by an Operator or on its behalf, designed to solicit or entice an Individual to participate in an Operator's Sports Wagering or Pari-Mutuel Wagering offerings via broadcasting, publication, or any other means of dissemination in this State, including social media, direct messaging, text message, or electronic mail.

(3) "Affiliate" means a Person who directly or indirectly controls, or is controlled by, or is under common control with, a specified Person.

(4) "Age and Identity Verification" means a method, system, or device used by an Operator to verify the validity of a Player's age and the Player's identity.

(5) "Applicant" means a Person that applies for a License to engage in activity regulated under these Rules and statutorily authorized by Articles 9 or 10 of the Act.

(6) "Authorized Representative" means a Responsible Party's licensed attorney-at-law of record or its authorized employee or other official representative; an Authorized Representative shall have full authority to take binding action on behalf of the Responsible Party.

(7) "Background Investigation" means the statutorily required credit history check, tax record check, criminal history record check, and any other checks or inquiries as determined by the Commission, in its discretion, for Individuals connected with an Applicant for a License, Key Persons, and Persons required to be disclosed as set forth by law, these Rules, or a License application approved by the Commission.

(8) "Cancelled Wager" means a Wager that was valid at the time that it was made but has since been invalidated in a manner acceptable by the Commission due to an event or action that prevents its completion.

(9) "Cash" means US currency.

(10) "Cash Equivalent" has the meaning provided in G.S. 18C-901(2).

(11) "Commission" has the meaning provided in G.S. 18C-103(1).

(12) "Commissioner" has the meaning provided in G.S. 18C-103(2).

(13) "Communication Technology" means the methods used and the components employed to facilitate the transmission of information, including electronic communications, and transmission and reception systems based on wire, cable, radio, microwave, light, optics, or computer data networks or similar electronic agents, including the internet and intranets.

(14) "Confidential Player Information" means:

(a) the amount of money credited to, debited from, withdrawn from, or present in a particular Wagering Account;

(b) the amount of money Wagered by a particular Player on one or more Wagering events;

(c) the unique Wagering Account ID or username and authentication credentials that identify the particular Registered Player;

(d) the identities of particular Wagering Events or Wager Types on which the Player is Wagering or has Wagered; and

(e) unless otherwise authorized by the Player, the name, address, and other information in possession of the Operator that would identify the Player to anyone other than the Commission or the Operator.

(15) "Day" means a calendar day, unless otherwise specified in the Rule. In computing any period prescribed or allowed by the Rule, the day of the act, event, or default from which the designated period begins to run shall not be included.

(16) "Director" has the meaning provided in G.S. 18C-103(3).

(17) "Disciplinary Action" means action taken by the Commission or Director against a Responsible Party to assess a civil penalty, suspend a License, or revoke a License.

(18) "Disciplinary Hearing" means a proceeding set forth in Section .0300 of this Subchapter to comply with the hearing requirement of G.S. 18C-916.

(19) "Event Corruption" means an intentional arrangement, act, or omission aimed at an improper alteration of the result or the course of a Wagering Event in order to remove all or part of the unpredictable nature of the event with a view to obtaining an undue advantage for oneself or for others. By way of illustration, Event Corruption includes, but is not limited to, instances of: bribery, Match Fixing, misuse of insider information, officiating abnormalities, or any illegal, immoral, or unethical activity that attempts deliberately to distort the result of a Wagering Event for the personal material gain of one or more parties involved in that corrupting activity.

(20) RESERVED FOR FUTURE USE.

(21) "Gaming Day" means a twenty-hour period which begins at 12:00 a.m. Eastern Time and ends the following Day at 11:59 p.m. Eastern Time.

(22) "Independent Testing Laboratory" means a laboratory which:

(a) holds an active accreditation in accordance with:

(i) ISO/IEC 17020, ISO/IEC 17025, and ISO/IEC 17065 by an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement; or

(ii) other active accreditation satisfactory to the Commission from a recognized accrediting body;

(b) has a reputation for honesty, independence, competence, and timeliness that is demonstrably competent and which is qualified to scientifically test and to evaluate gaming equipment for compliance with the Act, state and federal law, applicable case law, and these Rules; and

(23) "Indian Lands" has the meaning provided in the Indian Gaming Regulatory Act of 1988, 25 U.S.C. 2703(4).

(24) "Individual" means a natural person.

(25) "Ineligible Person" means:

(a) a Commissioner;

(b) an Underage Individual;

(d) for Pari-Mutuel Wagering, an Individual prohibited from engaging in Pari-Mutuel Wagering pursuant to G.S. 18C-1015(b);

(e) an Involuntarily Excluded Person;

(f) a Voluntarily Excluded Person;

(g) an Individual Wagering while not in the authorized geographic boundaries within the State of North Carolina;

(h) a Person Wagering in violation of State, local, or federal law;

(i) an Individual Wagering on behalf of another Individual or Person;

(j) except for the purpose of Layoff Wagers, as defined in Rule 24 NCAC 06B .0101(18), a Person that is not an Individual; or

(k) other Persons as determined by the Commission.

(26) "Integrity Monitoring" means the monitoring of Sports Wagering or Pari-Mutuel Wagering to identify Abnormal Wagering Activity or Suspicious or Illegal Wagering Activities from an Event Corruption standpoint, to include reporting these activities to required or other appropriate parties.

(27) "Internal Controls" means a system of internal procedures, as well as administrative and accounting controls, related to the integrity of Sports Wagering and Pari-Mutuel Wagering.

(28) "Internet" means the international computer network of interoperable packet switched data networks, inclusive of additional technological platforms, including mobile, satellite, and other electronic distribution channels.

(29) "Involuntarily Excluded Person" means an Individual who has been involuntarily prohibited from establishing a Wagering Account or participating in Sports Wagering Activities or Pari-Mutuel Wagering Activities under the jurisdiction of the Commission.

(30) "Key Person" has the meaning provided in G.S. 18C-901(10).

(31) "License" means a License applied for by an Applicant or issued by the Commission under these Rules and the Act.

(32) "Match Fixing" means the act of playing or officiating a Wagering Event with the intention of achieving a pre-determined result, violating the rules of the event.

(33) "Multi-Factor Authentication" means a type of authentication which uses two or more of the following to verify an Individual's identity:

(a) information known only to the Individual, including a password, pattern, or answers to challenge questions;

(b) an item possessed by an Individual, including an electronic token, physical token, or an identification card; or

(c) an Individual's biometric data, including fingerprints, voice recognition, or recognition of any physiological characteristic, including facial recognition.

(34) "Operator" for purposes of these Rules means:

(a) an Interactive Sports Wagering Operator as defined in G.S. 18C-901(9); or

(b) an advance deposit wagering (ADW) licensee as defined in G.S. 18C-1001(2).

(35) "Operator License" for the purposes of these Rules means a License issued by the Commission to:

(a) an Interactive Sports Wagering Operator under G.S. 18C-904; or

(b) an advance deposit wagering (ADW) licensee under G.S. 18C-1005.

(36) "Pari-Mutuel Wager" or "Pari-Mutuel Wagering" has the meaning provided in G.S. 18C-1001(3).

(37) "Person" has the meaning provided in G.S. 18C-103(7).

(38) "Personal Information" has the meaning provided in G.S. 75-61(10).

(39) "Player" means a Person who Wagers on Wagering Events.

(40) "Registered Player" means an Individual who has established a Wagering Account with an Operator.

(41) "Responsible Party" means Operators, Sports Wagering Service Providers, and Sports Wagering Suppliers.

(42) "Revocation" means action taken by the Commission or Director to terminate the rights and privileges associated with a License and to permanently prohibit the Responsible Party from applying for or receiving a License within the State.

(43) "Rule" means a requirement, condition, or directive adopted by the Commission in this Rules Manual or any technical manual authorized herein that is applicable to an Applicant, Responsible Party, Player, Person, Individual, or other party subject to the authority, oversight, or supervision of the Commission.

(44) "Segregated Account" means a financial account that separates funds, to include Cash and Cash Equivalents, owned by Players and that is restricted to funds owned by Players in the United States, and has funds that are not commingled with the Operator's operational funds.

(45) "Sensitive Information" means information about an Individual, including Personal Information, transactional Wagering data, authentication credentials, secure seeds and keys used in encryption, and other data that shall be handled in a secure manner.

(46) "Service Provider" or "Sports Wagering Service Provider" has the meaning provided in G.S. 18C-901(15).

(47) "Sports Facility" has the meaning provided in G.S. 18C-901(17).

(48) "Sports Governing Body" has the meaning provided in G.S. 18C-901(18).

(49) "Sports Wager" or "Sports Wagering" has the meaning provided in G.S. 18C-901(19).

(50) "Sports Wagering Operator" means an Interactive Sports Wagering Operator as defined in G.S. 18C-901(9).

(51) "State" means the State of North Carolina not to include the Indian Lands within its boundaries.

(52) "State Lottery Act" or "Act" means Chapter 18C of the General Statutes.

(53) "Sufficient Clarity" means the capacity of a Surveillance System to record images at a resolution determined by the Commission to clearly identify the intended activity, Individual, object, or location.

(54) "Supplier" or "Sports Wagering Supplier" has the meaning provided in G.S. 18C-901(22).

(55) "Surveillance Operation Room" means the secured area where surveillance takes place or where active surveillance equipment is located.

(56) "Surveillance System" means a system of video cameras, monitors, recorders, video printers, switches, selectors, and other equipment used for surveillance.

(57) "Suspension" means action taken by the Commission or Director to temporarily deauthorize the rights and privileges associated with a License after which the Responsible Party shall cease all activity regulated by these Rules for the requisite period of Suspension as defined in the Commission decision or order.

(58) "Suspicious or Illegal Wagering Activity" means activities, actions, or behaviors that raise concerns about the integrity of the Wagering Activity or the Wagering Event itself. This includes, but is not limited to: Match Fixing or point-shaving, misuse of insider information, Abnormal Wagering Activity, Wagering by Ineligible Persons, money laundering, use of multiple Accounts, collusion or cheating, Wager or Wagering Event manipulation, unauthorized use of bots or automated systems, and potential breaches of internal rules or code of conduct related to Wagering for a Sports Governing Body, racing regulatory body, or equivalent.

(59) "Ticket Writer" means a cashier employed by an Operator who is assigned the responsibility for the operation of a Ticket Writer Station.

(60) "Ticket Writer Station" means a point-of-sale system used by a Ticket Writer for the execution or formalization of Wagers placed on behalf of a Player.

(61) "Tribal Gaming Enterprise" has the meaning provided in G.S. 18C-901(25).

(62) "Underage Person" means an Individual under twenty-one years of age.

(63) "Void Wager" or "Voided Wager" means a Wager that was not valid at the time it was placed or a Wager that was valid at the time it was placed but has since become invalid for reasons, including but not limited to the change in eligibility status of an event participant or subject of the Wager.

(64) "Voluntarily Excluded Person" means an Individual who is included, at their own request, in the Voluntary Exclusion Program.

(65) "Voluntary Exclusion Program" means a program operated by the Commission to maintain a list of Individuals who voluntarily exclude themselves from Sports Wagering or Pari-mutuel Wagering and from establishing or maintaining a Wagering Account with an Operator for such Wagering.

(66) "Wager" means a sum of money or Cash Equivalent risked on an uncertain occurrence.

(67) "Wagering Account" or "Account" means:

(a) an Interactive Sports Wagering Account used for placing Sports Wagers as defined in G.S. 18C-901(8); or

(b) an advance deposit account used for placing Pari-Mutuel Wagers as contemplated in G.S. 18C-1015.

(68) "Wagering Activity" means Sports Wagering Activity or Pari-Mutuel Wagering Activity unless otherwise specified.

(69) "Wagering Event" means:

(a) for Sports Wagering, a Sporting Event as defined in G.S. 18C-901(16); or

(b) for Pari-Mutuel Wagering, a horse race.

(70) "Wagering Facility" means:

(a) a place of public accommodation operated by an Interactive Sports Wagering Operator and approved by the Commission for in-person Sports Wagering; or

(b) a simulcast facility operated by an ADW licensee and approved by the Commission for in-person Pari-Mutuel Wagering.

(71) "Wagering Kiosk" or "Kiosk" means a self-service automated device, computer terminal, or other similar machine that a Player may use in a Wagering Facility to place a Wager using Cash and Cash Equivalents. A Wagering Kiosk may also be used to redeem a Wager and for other regulated functions where supported.

(72) RESERVED FOR FUTURE USE.

(73) "Wagering Rules" means the comprehensive rules established by an Operator for governing Wagering Activities with that Operator.

(74) "Wagering Ticket" or "Ticket" means a printed record, or digital representation thereof, that contains information pertaining to a Wager in connection with a Wagering Event.

(75) "Wagering Voucher" or "Voucher" means a printed record, or digital representation thereof, that may be used to fund a Sports Wager or may be redeemable for Cash or Cash Equivalents.

(76) "Wagering Window" means a window in a structure approved by the Commission within a Wagering Facility from which a Ticket Writer conducts Wagering Activity by accepting or distributing Cash or Cash Equivalents.

(77) "Wager Type" for purposes of these Rules means:

(a) the form of a Wager offered by a Sports Wagering Operator, including but not limited to Single-Game Wagers, Teaser Wagers, Parlays, Over-Under, Moneyline, Pools, Exchange Wagering, In-Game Wagering, In-Play Wagers, Proposition Wagers, Straight Wagers, and other Sports Wagers approved by the Commission; or

(b) the form of a Wager offered by an ADW Operator, including but not limited to Win, Place, Show, Daily Double, Daily Triple, Exacta, Quinella, Trifecta, Superfecta, and Pick(n).

(78) "Winnings" means the total Cash value of property or sums, including Cash, Cash Equivalents, or instruments of monetary value paid, to a Player by an Operator as a direct result of a winning Wager.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025; June 22, 2024.

24 NCAC 06A .0102 Scope and Application of Rules {#sec-24-ncac-06a-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0102}

(a) These Rules apply to Persons whose conduct makes them subject to Articles 9 and 10 of the Act. Unless explicitly identified by the Commission as applicable to North Carolina Education Lottery retailers or lottery players, this Rules Manual for Sports Wagering and Pari-Mutuel Wagering does not apply to the administration, operation, or conduct of the State-operated lottery established and overseen by the Commission.

(b) Through these Rules, the Commission directs staff to create processes and take certain actions with respect to members of the public and interested parties that are subject to the Act or the Commission's oversight.

(c) The Commission's Policies and Procedures concerning the operation of the State's lottery may, from time to time, constitute persuasive authority in the context of regulated gaming activity.

(d) Nothing in these Rules limits, changes, or otherwise supplants the Department of Revenue's authority, requirements of Operators, or Rules.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0103 Authorization {#sec-24-ncac-06a-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0103}

(a) These Rules cover only activities specifically authorized by Chapter 18C of the North Carolina General Statutes or other State law. The federal Indian Gaming Regulatory Act, 25 U.S.C. 2701, and G.S. 14-292.2 do not represent a basis for these Rules.

(b) These Rules do not implicitly or expressly authorize any Applicant, Responsible Party, any Person acting on behalf of a Responsible Party, any Person subject to the Commission's oversight or authority, or any other Person to engage in Sports Wagering, Pari-Mutuel Wagering, regulated gaming activity, or related activities beyond those allowed by law. These Rules do not displace federal or any other State law.

(c) The Act and these Rules do not apply to Sports Wagering or Pari-mutuel Wagering conducted exclusively on Indian Lands by an Indian tribe operating in accordance with a tribal-state gaming compact, G.S. 14-292.2, and authorized to conduct Class III gaming pursuant to a compact with the State.

(d) For purposes of these Rules, Sports Wagering and Pari-mutuel Wagering are conducted exclusively on Indian Lands only if the Person who places the Wager is physically present on Indian Lands when the Wager is initiated and the Wager is received by an Indian tribe operating on the same Indian Lands in accordance with a tribal-state gaming compact, G.S. 14-292.2, and in conformity with the safe harbor requirements as provided in 31 U.S.C. 5362(10)(c).

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0104 Severability of Provisions {#sec-24-ncac-06a-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0104}

The provisions of Rules contained within this Rules Manual are severable. If a provision of a Rule is invalid, or if an application thereof to a Person or circumstance is invalid, the invalidity shall not affect other provisions or applications which may be given effect without the invalid provision or application.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0105 Reservation of Authority {#sec-24-ncac-06a-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0105}

The Commission expressly reserves all powers, duties, and authority granted to it by the Act and other applicable law. While the Commission properly and necessarily delegates certain authority and duties in order to fulfill and execute the Commission's supervisory and administrative obligations, the Commission does not delegate their ultimate authority to fulfill and execute their lawful duties. On those occasions when the Commission elects not to exercise their full statutory authority, such actions reflect a policy decision by the Commission and not a waiver or relinquishment of that authority. In its sole discretion, the Commission may modify or repeal the Commission's Rules or policies at any time. Nothing contained herein is to be construed to limit the statutory powers and duties of the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0106 Assignment of Duties and Responsibilities to the Director {#sec-24-ncac-06a-.0106 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0106}

(a) Subject to the Commission's oversight and direction, the Director shall be the primary administrative and enforcement agent for licensing and regulatory matters arising under Articles 9 and 10 of Chapter 18C in the North Carolina General Statutes and other applicable State law. The Director shall have all of the powers and duties described by law and as assigned or delegated by the Commission.

(1) The duties of the Director's designees shall be exercised and discharged subject to the direction, control, and supervision of the Director or the Chair of the Commission.

(2) The Director may formally or informally assign authority and responsibilities to Commission staff.

(3) Unless otherwise specified herein, as used in this Rules Manual "Director" also includes any staff designee or agent or contractor appointed formally or informally by the Director to act on the Director's behalf, subject to the Director's supervision or oversight.

(b) When prompt action is required due to emergent circumstances and it is not practicable or reasonable to assemble a quorum of the Commission, the Director, in consultation with the Commission Chair and Sports Betting Committee Chair, if available, is authorized to act in the name of the Commission to the extent necessary to carry out specific action or actions limited to responding to or addressing the emergent circumstances during a period not to exceed the next meeting of the Commission. Action taken pursuant to this provision shall be presented to the Commission for ratification or other action at the next regularly-scheduled or called meeting of the Commission.

(1) prohibited by law;

(2) previously considered and specifically rejected by the Commission; or

(3) contrary to the Commission's duly adopted directions to the Director or staff.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-006
Eff. January 8, 2024
Readoption Eff. March 27, 2024.

24 NCAC 06A .0107 Executive Orders {#sec-24-ncac-06a-.0107 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0107}

(a) To provide certainty to the regulated public and support efficient operations and administration, the Commission authorizes the Director to issue Executive Orders, as needed. Executive Orders shall have the same force and effect as these Rules.

(b) The Director shall provide the Commission with forty-eight hour prior notice of any Executive Order before such Order's final publication on the Commission's website. Email notice sent to each Commissioner shall suffice.

(1) The Director shall provide a report to the Commission concerning any Executive Orders issued at next regularly scheduled Commission meeting, or at an earlier meeting as directed by the Chair or a majority of Commission members.

(2) Executive Orders expire after one year unless otherwise stated by the Director at the time of the entry of the Order and as approved by the Commission or as otherwise adopted as a Rule by the Commission.

(3) The Director shall approve and sign every Executive Order that issues; approval and execution of Executive Orders is non-delegable.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0108 Technical Manuals and Bulletins Published by the Director {#sec-24-ncac-06a-.0108 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0108}

(a) Consistent with these Rules, the Director shall publish, as needed, Technical Manuals and Bulletins to interpret and implement Articles 9 and 10 of the Act and these Rules.

(b) Technical Manuals and Bulletins duly adopted by the Commission have the same force and effect as this Rules Manual.

(c) The Director may revise Technical Manuals and Bulletins from time to time. Revisions to Technical Manuals and Bulletins shall become valid upon 30 Days' notice from the Director to a Responsible Party. The Director shall provide notice by sending an email to a Responsible Party's email address of record with a hyperlink to the Commission's website that collects the Technical Manual and Bulletins or revisions thereto.

(d) Technical Manuals and Bulletins shall be collected and published on the Commission's website.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0109 Request for Variance or Waiver of Requirement {#sec-24-ncac-06a-.0109 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0109}

(a) For good cause shown, the Director may waive any of the non-statutory grounds for denial or renewal of a License. For good cause shown, the Director may grant a variance from the operation of these Rules or a requirement in these Rules.

(b) A Person requesting a waiver or variance shall submit a written request in a format specified by the Director. The written request shall contain at least the following:

(1) the standard for which the waiver or variance is sought;

(2) detailed facts in support of the request;

(3) an explanation of the unique circumstances justifying the request; and

(4) any other information requested by Commission staff or the Director.

(c) If the request does not meet the requirements in Paragraph (b) of this Rule or is incomplete, the requestor shall be notified:

(1) of the deficiency; and

(2) that the request will not be presented to the Director unless the identified deficiency is corrected.

(d) At any time before or after a waiver or variance has been granted, the Director may:

(1) limit or place restrictions on the waiver or variance as the Director considers necessary in the best interest of the State;

(2) require the requestor who is granted the waiver or variance to cooperate with the Director and to provide the Director with any additional information requested; or

(3) set an expiration date for the waiver or variance.

(e) The requestor shall be notified of the Director's decision.

(f) The decision of the Director on a request for a waiver or variance is final and may not be appealed. Denial or modification of any waiver or variance request submitted under this Rule does not require notice or an opportunity for hearing.

(g) The Director retains the sole authority to grant, deny, or modify a waiver or variance request submitted under this Rule.

(h) The Director may revisit a previous waiver or variance decision or request for any lawful reason and may modify or rescind a prior decision regarding the same, as needed.

(i) The grant or denial of a waiver or variance does not bind the Commission or Director to take similar action in the future.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0110 Effective Date of Rules Manual {#sec-24-ncac-06a-.0110 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0110}

(a) This Rules Manual shall be effective upon the date of its adoption or the earliest date allowed by law, whichever is later.

(b) New Rules, amended Rules, and revisions to this Rules Manual shall become effective immediately upon adoption by the Commission or on such date specified by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0111 Commission Location and Office Hours {#sec-24-ncac-06a-.0111 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0111}

The Commission's physical and mailing addresses, hours of operation, and points of contact with respect to issues arising under Article 9 or 10 of the Act shall be prominently posted on the Commission's website.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0112 Payment of Fees {#sec-24-ncac-06a-.0112 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0112}

(a) All required fees or sums to be paid to the Commission shall be paid via wire transfer of funds or other form as prescribed by the Director.

(b) Checks, credit cards, and other forms of payment given to the Commission or its agents or vendors for fees due that are returned unpaid shall be considered cause for license denial, Suspension, or Revocation.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0113 Confidential Materials {#sec-24-ncac-06a-.0113 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0113}

(a) Parties submitting documents or materials to the Commission, its Director, staff, or agents are responsible for conspicuously marking such materials on or before the time of submission as "Confidential" or "Trade Secret" as appropriate, in accordance with applicable North Carolina laws.

(b) Parties that fail in accordance with this Rule to mark documents that are otherwise not subject to public disclosure assume the risk that such documents may be disclosed, whether inadvertently or purposefully.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0114 Address Requirements {#sec-24-ncac-06a-.0114 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0114}

(a) All Responsible Parties and Applicants shall provide the Commission with a designated contact, including a mailing address, an email address, and a phone number. This information may be submitted via a licensure application or through other forms prescribed by the Director.

(b) Within 10 Days of changing the designated contact, the mailing address, the email address, or the phone number on file with the Commission, a Licensee or Applicant shall notify the Commission of such change in writing. Information required to be provided by this Rule shall be submitted to the Commission on a form and in a manner prescribed by the Director.

(c) The Commission or the Director may serve orders, decisions, or other documents generated by the Commission or its staff on Responsible Parties and Applicants by first class mail or electronic mail to the Responsible Party's or Applicant's address on file with the Commission or to a registered agent as identified in filings with the North Carolina Secretary of State.

(d) Applicants and Responsible Parties shall provide the Commission with information about their registered agent, including name, physical address, phone number, and email address.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1A-014
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0201 Burden on Applicant {#sec-24-ncac-06a-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0201}

The burden of proof shall be on the Applicant to show by clear and convincing evidence that the Applicant:

(1) complies with the laws of the State of North Carolina, the Rules of the Commission, and any other applicable law regarding eligibility and qualifications for the License; and

(2) is not otherwise disqualified from holding a License.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0202 Opportunity to Participate in Wagering Industry as Revocable Privilege {#sec-24-ncac-06a-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0202}

(a) Participation in any aspect of Wagering operations covered by these Rules by a Responsible Party shall be deemed a revocable privilege and shall be conditioned on the proper and continued qualification of the Responsible Party, and on the discharge of the affirmative responsibilities of each Responsible Party to provide to the Commission, Director, and other regulatory and investigatory authorities under any other provision of law any assistance and information necessary to assure that the policies underlying the Act and these Rules are achieved.

(b) An Applicant is seeking a privilege to participate in Wagering operations covered by these Rules in North Carolina; consequently, it assumes and accepts all risks of adverse publicity, notoriety, embarrassment, criticism, or other action or financial loss that may occur in connection with the application process or the public disclosure of information. By submitting an application under these Rules, the Applicant expressly waives any claim for damages or injunctive relief that may result from the application process.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0203 Consultation Before Submission of Application {#sec-24-ncac-06a-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0203}

The Director may conduct consultation meetings or information sessions with Applicants and prospective Applicants to provide guidance regarding application procedures and requirements. In the event of conflicting information or guidance, formal and informal communications issued by or on behalf of the Director to provide guidance do not take precedence over State or federal law, these Rules, or other official governance materials.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0204 Electronic Form of Applications; Copies of Application and Supporting Materials {#sec-24-ncac-06a-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0204}

(a) The Applicant shall complete and submit the applicable License application on a form and in a manner prescribed by the Commission.

(b) Information and documents submitted to the Commission in connection with a License application shall be made using the electronic form and formats required by the Commission and submitted in a manner designated by the Director.

(c) Upon request, an Applicant shall submit to the Director at no cost copies of the application or any supporting documents or materials in the electronic or hard-copy medium specified by the Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0205 All Applications are Sworn; Duty to Update or Amend During Pendency of Review {#sec-24-ncac-06a-.0205 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0205}

(a) Information and documents submitted to the Commission in an application shall be sworn or affirmed under the penalties of perjury as to their truth, validity, and comprehensiveness by the Applicant or, if the Applicant is not an Individual, by an officer or Director of the Applicant.

(b) If information submitted by an Applicant as part of a License application changes or becomes inaccurate, the Applicant shall notify the Commission of the change or inaccuracy and amend the application submission within five Days.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0206 Timeliness {#sec-24-ncac-06a-.0206 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0206}

(a) To be eligible for consideration, a Licensing application shall be submitted on or before the deadline established by the Director.

(1) The Commission may establish different deadlines for different Licenses.

(2) After an application deadline passes for a particular License, the Director may establish a new deadline for a cycle of future applications.

(b) When an application or any supplemental element of an application shall be submitted to the Director by a particular date, then such material shall be submitted not later than 11:59 p.m. Eastern Time on the last day of the specified period. Any application materials submitted after that deadline will not be considered. The risk of technological, electronic, or other logistical difficulties that prevent timely submission of application materials is on the Applicant.

(c) The Director may, at their discretion, extend the submission deadline for all Applicants for a particular License for a period determined by the Commission.

(d) The Commission may also utilize rolling application processes that do not require deadlines.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0207 Consideration of Late Applications {#sec-24-ncac-06a-.0207 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0207}

(a) A License application submitted after an established deadline will generally not be considered or evaluated. Untimely submission is grounds for summary denial of an application.

(b) An untimely application may be considered under limited circumstances as determined by the Commission.

(1) The Director determines one or more of the following:

(A) That both of the following conditions exist:

(i) no other Applicant or interested Person would be unfairly prejudiced by the delayed submission of the application; and

(ii) neither the Commission nor the Director has taken substantive action with respect to any application submitted prior to the deadline.

(B) Additionally, at least one of the following conditions is present:

(i) the failure to file the application prior to the expiration of the deadline was caused by the action or inaction of a third-party, which relates to the method or timing of the delivery of the application to the Commission, and was the product of reasonable and excusable neglect;

(ii) the circumstances surrounding the method or timing of the delivery of the application indicate that in the normal course of events the application should have been received by the Commission prior to the expiration of the deadline; or

(iii) prior to the expiration of the deadline, the Applicant reasonably believed that delivery of the application would occur prior to expiration of the deadline.

(2) The Director determines that the Applicant's failure to file the application prior to the expiration of the deadline was caused in whole or in part by documented incorrect or misleading information or instructions provided by an employee or agent of the Commission and that Applicant acted reasonably in relying on such information or instructions, taking into consideration the nature of the information or instructions and the identity of the Individual providing the information or instructions;

(3) The Director acts to establish a new deadline applicable to all Persons to which the original deadline was applicable; or

(4) The Director determines that consideration of the application is necessary to prevent manifest injustice.

(d) The Commission strongly disfavors consideration of late applications and there is a presumption against considering an application that is not timely filed.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0208 Authorization to Review {#sec-24-ncac-06a-.0208 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0208}

(a) By submitting an application the Applicant authorizes the Commission, Director, investigative contractors acting on the Commission's behalf, and others authorized by the Commission to obtain or access any and all gaming-related information the Applicant has provided in any other jurisdiction to a domestic regulatory body while the Applicant sought or operated with a gaming or similar License in that other jurisdiction, as well as any information obtained by that other jurisdiction during the course of any investigation the other jurisdiction may have conducted regarding the Applicant.

(b) An Applicant shall authorize other jurisdictions or regulators to release to the Commission any information contemplated by this Rule, and shall timely provide appropriate written authorizations as needed. Failure to provide such authorization in a timely fashion shall result in the summary denial of the Applicant's application or potential Suspension or Revocation of a License.

(c) At the Director's request, an Applicant shall provide complete copies of licensure-related materials and applications submitted to other state regulatory commissions for gaming, Sports Wagering, Pari-Mutuel Wagering, and the like. The Director is authorized to address issues pertaining to trade secrets, confidentiality, privacy, security, and integrity with the Applicant and other regulators.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0209 Administrative Sufficiency Review {#sec-24-ncac-06a-.0209 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0209}

(a) Upon receipt of an Applicant's application and payment of the applicable Licensing fee, the Director shall review the application to determine whether it facially contains all required information and materials such that the application may be deemed administratively sufficient.

(b) If the Director determines that an application is administratively insufficient, then the Director shall notify the Applicant and, if feasible, identify the facially deficient components.

(c) An Applicant so notified of administrative insufficiency shall have no more than 10 Days after the issuance of the notice to submit the information necessary to cure the deficient components.

(1) The Director may establish additional or shorter deadlines for the submission of information that supplements, changes, or corrects information or materials previously submitted.

(2) The Director may refuse to consider any such information that is not submitted in compliance with established deadlines.

(3) If supplemental materials are not submitted in a timely fashion, the application remains administratively insufficient and is subject to automatic denial.

(4) Upon good cause shown by an Applicant, the Director may provide an Applicant an extension of time to cure the deficient component.

(d) A positive determination of administrative sufficiency begins the Commission's 60 Day application review period. Such determination does not constitute a finding with respect to the accuracy or adequacy of the information submitted, and shall not bar the Director's or Commission's request for further information with respect to the application. During the substantive evaluation of an Application, the Director may determine that an Applicant's answer is incomplete or inadequate, in which case the Director shall notify the Applicant and allow for additional information to cure the deficiency, consistent with the process set forth in Paragraphs (b) and (c) of this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

(a) The Commission, or a third-party contractor approved by the Commission, shall conduct a Background Investigation on the Applicant, Key Persons, and other Persons required to be disclosed on the application, as required by the Commission.

(1) In the event an Applicant, its Key Persons, and its disclosed Persons have had a completed criminal history record check in the 12 months prior to the application, the Commission may, in its discretion, accept the results of that prior criminal history record check on submission of an affidavit that there has been no change in criminal history since the prior criminal history record check in this or another state or territories of the United States and the District of Columbia. The Commission or Director shall prescribe the form and contents of such affidavit.

(2) The Commission shall not award a License if an Applicant, Key Person, or disclosed Person has been convicted in any jurisdiction of a felony, a gambling offense, a criminal offense involving moral turpitude or obstruction of justice, or any criminal offense involving dishonesty or breach of trust within 10 years of application.

(b) An Applicant for Licensure, Key Persons, and Persons required to be disclosed on the application as deemed necessary by the Commission shall consent to a criminal history record check, including criminal history record information obtained from the Federal Bureau of Investigation. Refusal to consent to a criminal history record check constitutes grounds for the Commission to deny Licensure summarily.

(1) If used, criminal history record information obtained from the Federal Bureau of Investigation pursuant to this Rule shall include other state and national criminal history record information.

(2) All criminal history record information obtained by the Commission pursuant to this Rule is subject to G.S. 18C-904(j), 18C-906(h), 18C-907(l), and 18C-916(b), is for the official use of the Commission only, and shall be kept confidential.

(3) An Individual required to submit to a criminal history record check under this Rule shall submit to having their fingerprints taken.

(c) Individuals, Key Persons, and disclosed Persons required to participate in the Background Investigation required by these Rules or Articles 9 and 10 of the Act shall provide a statement that irrevocably gives consent to the Commission, Director, and their investigative contractors, and other authorized Persons acting on the Commission's behalf to:

(1) verify all information provided in the application; and

(2) conduct a Background Investigation.

(d) The statement shall be on a form made available by the Director and shall be submitted in a manner determined by the Director.

(e) The Director shall make available an affidavit form for those Individuals subject to the Background Investigation process who have completed a criminal history check in the 12 months prior to the application's submission.

(1) A complete copy of the previous criminal history check shall be attached to the affidavit form.

(2) The Director reserves the right, in their sole discretion, to undertake a supplemental or additional Background Investigation of any individual who submits an affidavit involving a prior criminal history check.

(f) If, while conducting a Background Investigation, a basis for recommending denial of a License is discovered, Commission staff shall:

(1) informally notify the Applicant; and

(2) if a final decision has not yet issued on the application, allow the application to be withdrawn or amended within a specified period.

(g) For an Applicant who has resided in any country other than the United States during the past 10 years, the Background Investigation shall require an international criminal history records check.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0211 Duty to Update Application; Process to Amend {#sec-24-ncac-06a-.0211 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0211}

(a) If information in a submitted License application changes or becomes inaccurate, the Applicant shall notify the Commission within five Days of the change or inaccuracy in writing with a supplement to its application.

(b) All Applicants, including Key Persons and Individuals subject to Background Investigations, have a continuing duty to disclose material changes and correct material omissions in the application.

(c) An Applicant shall amend or supplement its License application and related submissions, including submissions concerning Key Persons and Individuals subject to Background Investigations, to the Commission through a process and forms approved by the Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0212 Supplemental Information and Cooperation {#sec-24-ncac-06a-.0212 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0212}

(a) In connection with a pending application or License related matter, the Director may request supplemental information and documents from an Applicant, Responsible Party, Key Person, or Individual subject to a Background Investigation.

(b) Failure to submit requested additional information sought by the Director may be grounds for summary denial of the application, Suspension of a License, or Revocation of a License.

(c) Unless the Director specifies a different period or a date certain, an Applicant, Responsible Party, Key Person, or Individual shall respond to a supplemental information request in writing with relevant materials within 10 Days.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-012
Eff. January 8, 2024
Readoption Eff. March 27, 2024.

24 NCAC 06A .0213 Approval or Denial of License Application; Authority {#sec-24-ncac-06a-.0213 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0213}

(a) The Commission delegates to the Director decision-making authority to grant or deny a License application. The Director shall report all decisions to grant or deny a License application to the Commission.

(b) Any Applicant whose application is denied shall receive a written denial notice. The notice shall state the summary grounds for the denial and provide the Applicant information about seeking reconsideration of the determination as outlined in Rule .0219 of this Subchapter.

(1) The Applicant is unable to satisfy the requirements under the Act and these Rules.

(2) The Applicant or any Key Person is not of good character, honesty, or integrity.

(3) The Applicant's or any Key Person's prior activities, criminal record, reputation, or associations indicate any of the following:

(A) A potential threat to the public interest.

(B) The potential to impede the regulation of Sports Wagering or Pari-Mutuel Wagering.

(C) The potential of promoting unfair or illegal activities or Event Corruption in the conduct of Sports Wagering or Pari-Mutuel Wagering.

(4) The Applicant or any Key Person knowingly makes a false statement of material fact or deliberately fails to disclose information requested by the Commission.

(5) The Applicant or any Key Person knowingly fails to comply with the provisions of the Act and these Rules or any requirements of the Commission.

(6) The Applicant or any Key Person was convicted in any jurisdiction of a felony, a gambling offense, a criminal offense involving moral turpitude or obstruction of justice, or any criminal offense involving dishonesty or breach of trust within the 10 years prior to the submission date of the application.

(7) Any Revocation, Suspension, or denial of the Applicant's License to conduct Sports Wagering, or Pari-Mutuel Wagering, other forms of gaming activity, or a Covered Service issued by any other jurisdiction.

(8) The Applicant has defaulted on any obligation or debt owed to this State.

(9) For Sports Wagering Operators, any breach, discontinuance, or other cessation of the Written Designation Agreement required under G.S. 18C-905.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0214 Reapplication for Licensure After Withdrawal, Denial, or Revocation {#sec-24-ncac-06a-.0214 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0214}

(a) An Applicant may not submit a Licensing application earlier than one year after:

(1) electing to withdraw an application from consideration;

(2) denial of a previous License application involving the Applicant; or

(3) Revocation of its License in North Carolina.

(b) In the event an Applicant has unsuccessfully sought reconsideration or an appeal of a denied application or of a Revocation, the one-year period in Paragraph (a) of this Rule begins on the Day a final decision issues.

(c) The Director, in their sole discretion, may waive or shorten the one-year period if the Applicant can demonstrate by clear and convincing evidence its suitability for licensure.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-014
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0215 Withdrawal of Application {#sec-24-ncac-06a-.0215 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0215}

(a) An Applicant's written notice of withdrawal of an application or of a renewal application may be filed by any Applicant at any time before an application is denied or a License is revoked or terminated.

(b) Application withdrawal requests shall be permitted without the need for approval by the Director or the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-015
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0216 Authority to Retain and Utilize Contract Investigators {#sec-24-ncac-06a-.0216 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0216}

(a) The Director may retain qualified contractor investigators, either directly or pursuant to a contract or contracts with a private investigative business or businesses, to assist with activities such as initial suitability, qualification, and Background Investigations of Applicants, Responsible Parties, and Key Persons.

(b) Once retained, each contractor investigator shall be provided with the necessary authority and credentials to serve as an official agent of the Commission in conducting initial suitability, qualification, and Background Investigations of Applicants, Responsible Parties, and Key Persons.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-016
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0217 Review and Issue Licenses {#sec-24-ncac-06a-.0217 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0217}

The Commission shall review and issue Licenses to qualified Applicants within 60 Days of receipt of a completed, administratively sufficient application. The Commission may extend the review period for an additional 30 Days if the Background Investigation is outstanding. The Commission shall provide notice to an Applicant that the review period for its application has been extended.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-017
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0218 Conditional Licensure {#sec-24-ncac-06a-.0218 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0218}

(a) The Director may offer an Applicant a License subject to certain conditions and limitations. If the Applicant accepts an offer of Conditional Licensure, the Applicant shall abide by the conditions and limitations or be subject to Disciplinary Action.

(b) If the Applicant declines the offer of Conditional Licensure, then the application shall be deemed denied.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-018
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0219 Reconsideration on Denial of a License {#sec-24-ncac-06a-.0219 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0219}

(a) Any Applicant whose application is denied shall have 15 Days from receipt of notice of denial, issued pursuant to Rule .0213 of this Subchapter, to submit a written request for reconsideration to the Director. The written request for reconsideration shall contain:

(1) a statement identifying the grounds for denial which the party intends to contest and state the reasons therefor;

(2) a description of all facts the Applicant is relying on to contest the grounds for denial;

(3) a description of any alleged errors by the Commission; and

(4) a statement of truth, swearing or affirming that all information contained in the written request for reconsideration is accurate and complete.

(b) Upon receipt of a written request for reconsideration, the Director shall either ratify the prior denial or take other appropriate action within 15 Days. The Director, in their discretion, may extend the time period for good cause; if additional time is required, the Director shall notify the Applicant in writing. If the Director ratifies the denial of the application, the Applicant shall receive notice of the Director's decision and information about appealing the Director's decision.

(c) Any Applicant who has sought reconsideration of denial of their License from the Director and received an unfavorable decision may appeal the Director's decision to the Sports Betting Committee. The Applicant shall have 15 Days from receipt of the Director's decision to submit a written appeal. The written appeal shall contain:

(1) a statement identifying the grounds for denial which the party intends to contest and state the reasons therefor;

(2) a description of all facts the Applicant is relying on to contest the grounds for denial and supporting documentary materials relied upon;

(3) a description of any alleged errors by the Commission;

(4) a description of any alleged errors by the Director;

(5) a statement of truth, swearing or affirming that all information contained in the written appeal is accurate and complete; and

(6) an acknowledgement signed by an Authorized Representative that the Applicant understands that materials that are specifically identified by the Commission as providing a basis for the denial may become public records.

(d) Upon receipt of a written appeal of the Director's decision, the Commission staff shall begin to compile a full record of the application. Staff will provide this record to the Sports Betting Committee and to the Applicant that submitted the appeal within 21 Days of the Commission's receipt of the written appeal. On behalf of the Director, Commission staff may include a written response to the written appeal from the Applicant in the record.

(e) The Sports Betting Committee shall have 90 Days from receipt of the full application record to make a final decision. The Sports Betting Committee may in its discretion elect to receive oral presentations from the parties in an open meeting, seek supplemental written information for its consideration from the Applicant, or reach its decision based on the record alone. The Applicant will receive notice of the final decision, which shall be in writing and shall explain the basis for the decision.

(f) An Applicant who voluntarily withdraws its application for a License shall waive all rights to seek reconsideration pursuant to this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-019
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0220 Duty to Maintain Suitability {#sec-24-ncac-06a-.0220 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0220}

Each License is a revocable privilege granted by the Commission contingent upon continuing suitability for licensure. Each Responsible Party has a continuing duty to maintain and, at the Commission's or Director's direction, demonstrate its suitability for Licensure.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-020
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0221 Attestation of Compliance {#sec-24-ncac-06a-.0221 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0221}

(a) On an annual basis at a time designated by the Director, each Responsible Party shall submit an attestation of compliance to the Commission on forms prescribed by the Commission or in an electronic platform provided by the Commission.

(b) The Responsible Party's attestation shall identify, if applicable, any material deficiencies with respect to Responsible Party's compliance with these Rules or the Act. The Responsible Party may elect to provide the Director with additional sworn or affirmed written submissions to provide the Director with context and information, as well as information about the Responsible Party's plans and ongoing efforts to achieve compliance.

(c) Material omissions or false statements in the attestation or related submissions may serve as the basis for Revocation, Suspension, civil penalties, sanctions, or enforcement actions.

(d) The Responsible Party's attestation or related submission shall be signed by any officer or agent of the Responsible Party who has also been identified as a Key Person. Their attestation shall be made on the basis of information known or reasonably known to the Responsible Party.

(1) By signing under oath, the Individual attests to the truth, accuracy, and completeness of the attestation and materials provided on behalf of the Responsible Party.

(2) The Individuals providing attestations and related written submissions need not have first-hand or other personal knowledge of all information submitted to the Commission; such Individuals may consult with and gather information from other Individuals within the Responsible Party or in entities whose actions are for the benefit of the Responsible Party or are controlled or directed by the Responsible Party. Individuals who assisted the affiants or with whom the affiants consulted shall be identified by name in the written submission, along with their organization, mailing address, and email address.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-021
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0222 Annual Review of Licensed Operators {#sec-24-ncac-06a-.0222 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0222}

The Commission shall review each Licensed Operator annually to ensure that each is acting in accordance with the Act and Rules adopted by the Commission and representations included in its attestation of compliance. If the Commission determines that there is probable cause that an Operator is in violation of the Act or any Rules adopted pursuant to the Act, the Commission may seek to suspend or revoke the License of the Operator or assess a civil monetary penalty in accordance with these Rules.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-022
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0223 License Period; Revocation or Suspension {#sec-24-ncac-06a-.0223 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0223}

Other than a provisional Sports Wagering Supplier License issued pursuant to G.S. 18C-907, any License issued pursuant to the Act and these Rules shall be valid for five years unless sooner revoked or suspended or otherwise made invalid by operation of law.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-023
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0224 Renewal Application {#sec-24-ncac-06a-.0224 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0224}

(a) At least 60 Days prior to the expiration of a License, the Responsible Party shall submit a renewal application, on a form and in a manner prescribed by the Commission, including a renewal fee, which shall be the same as the fees for a new License of the same type.

(b) The renewal applications shall include each of the components of initial applications.

(c) A Responsible Party's attestations of compliance submitted to the Director pursuant to Rule .0221 of this Subchapter shall be deemed incorporated into the Responsible Party's renewal application.

(d) Responsible Parties seeking renewal shall be subject to Background Investigations and other review by the Commission under the same conditions and requirements as an initial Applicant seeking licensure.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-024
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0225 Denial of Renewal {#sec-24-ncac-06a-.0225 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0225}

(a) The Commission may deny a License renewal based on:

(1) one or more of the same grounds that would constitute denial of an initial application under Rule .0213 of this Subchapter;

(2) a violation of the Act or these Rules;

(3) a pattern of noncompliance with Rules or directives promulgated by the Commission;

(4) failure to pay the taxes or fees imposed under these Rules;

(5) the Commission's previous decision to suspend or impose civil penalties on the Responsible Party; or

(6) a finding by the North Carolina Department of Revenue that the Responsible Party violated a provision in Article 2E of Chapter 105 of the North Carolina General Statutes.

(b) The Commission may deny a License renewal if the Commission finds good cause that the Responsible Party has not materially complied with one or more provisions of the Act or one or more provisions in these Rules.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-025
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0226 Public Record {#sec-24-ncac-06a-.0226 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0226}

Notwithstanding Chapter 132 of the General Statutes or any other provision of law, except for G.S. 18C-916(b), only the following documents under this Rule shall be a public record, with respect to each Applicant and each Responsible Party:

(1) The name, address, and platform used for Wagering Activity.

(2) The names of all Key Persons.

(3) The granting or denial of the application.

(4) With respect to Operators:

(a) The documented history of working to prevent compulsive gambling, including training programs for its employees.

(b) The branding that the Applicant plans to hold out to the public displaying its platform used for Wagering Activity.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Ruke 1B-026
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0227 Duty to Report Change in Key PERSONS {#sec-24-ncac-06a-.0227 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0227}

Each Responsible Party shall promptly report to the Commission as soon as practicable, but in no event later than five Days, all changes in Key Persons. The Responsible Party shall include a revised organizational chart that reflects the change in Key Persons and any change in job titles or descriptions. All new Key Persons shall consent to a Background Investigation, timely provide all requested information and documents to the Director, and agree to comply with the Act and these Rules.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-027
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0228 Notification to Director Regarding Certain Events {#sec-24-ncac-06a-.0228 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0228}

Each Responsible Party shall provide written notification to the Director when it is subject to or experiences any of the events or occurrences identified in this Rule. Notification shall be provided in writing in a manner designated by the Director, and Responsible Party shall provide the notification as soon as it learns of the event or occurrence and, in any event, within 72 hours. The Responsible Party's notification requirement arises from the following events and occurrences:

(1) A violation or apparent violation of these Rules or the Act by any of the following:

(a) the Responsible Party;

(b) a substantial owner, Key Person, or employee of the Responsible Party; or

(c) a Person or entity acting, or authorized to act, on behalf of or in furtherance of the interests of the Responsible Party.

(2) Any denial, suspension, or revocation by a governmental agency or regulatory body in any state, federal, or tribal jurisdiction of a Wagering related License, registration, certification, permit, or approval held by or applied for by the Responsible Party, or the Responsible Party's employee or Key Person.

(3) Any discipline, including a fine or warning, related to Wagering Activity imposed upon the Responsible Party or the Responsible Party's employee or Key Person by any governmental agency or regulatory body in any state, federal, or tribal jurisdiction.

(4) Civil litigation filed against the:

(a) Responsible Party's North Carolina operations;

(b) Responsible Party that could significantly impact its North Carolina operations; or

(c) Responsible Party's Key Person arising from or related to regulated gaming activity in North Carolina or other domestic jurisdictions.

(5) A criminal, civil, or administrative action, threatened action, or investigation initiated by any governmental agency or regulatory body in any state, federal, or tribal jurisdiction against the Responsible Party.

(6) Any arrest, indictment, charge, or criminal conviction of any Key Person in North Carolina or in any jurisdiction where such criminal matters concern or are connected with gaming activities; gaming operations; a felony; any gambling offense; a criminal offense involving moral turpitude or obstruction of justice; or any criminal offense involving dishonesty, breach of trust, or fraud.

(7) Claims made by a governmental agency or regulatory body in any state concerning the tax liability of Responsible Party or a Key Person or substantial owner of the Responsible Party.

(8) A civil, criminal, administrative, or tax action initiated:

(a) by or against an employee or Key Person of the Responsible Party if the action relates to the gaming activity conducted by Responsible Party; or

(b) against a Key Person, substantial owner, or an Affiliate of a Responsible Party, if the action relates to a gaming operation under the jurisdiction of a governmental entity.

(9) A bankruptcy, receivership, or debt adjustment initiated by or against the Responsible Party, or an Affiliate thereof, or the Responsible Party's substantial owners.

(10) RESERVED FOR FUTURE USE.

(11) An action, event, or omission, with respect to which the Director has instructed the Responsible Party to provide notice so that the Director can ensure that the Responsible Party continues to maintain suitability for licensure.

(12) Any information known or that should reasonably be known to the Responsible Party or Key Person, including but not limited to the receipt of a subpoena or other official notification, that the Responsible Party or Key Person is or may be the subject of a criminal investigation by a law enforcement or regulatory agency or a civil investigation by regulatory agency concerning fraud, securities, or taxation.

(13) Any material pending legal proceedings required to be reported in accordance with 17 CFR 229.103.

(14) Any pending legal proceeding which includes any allegation of fraudulent conduct by the Responsible Party or its Key Persons that may reasonably threaten the Responsible Party's economic viability or that alleges a pattern of improper conduct by the Responsible Party or its Key Persons over a sustained period of time.

(15) Any significant financial event related to a Responsible Party. For purposes of this provision, a significant financial event means a merger, acquisition, consolidation, debt restructuring, material change in debt rating by major national or international credit rating agencies, legal entity change, material ownership change, the assessment of a fine or penalty of two hundred and fifty thousand dollars ($250,000) or greater by the U.S. Securities and Exchange Commission, a similar state agency, or the international equivalent thereof, restatement of previously issued financial statements, late filing of financial statements with the U.S. Securities and Exchange Commission, a similar state agency, or the international equivalent thereof, US or international equivalent bankruptcy petition, default of financial debt covenants and receivership, disposal of a material business segment or asset, or adverse actions taken by the Internal Revenue Service.

(16) Issuance of an "Adverse" or "Qualified" audit opinion, or the international equivalent, by an independent accountant to the Responsible Party.

(17) A change in accounting firm engaged to perform attestation or assurance services for the Responsible Party.

(18) Issuance of a delisting notice from a United States or international stock exchange relative to the Responsible Party.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-028
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0229 License Assignment or Transfer {#sec-24-ncac-06a-.0229 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0229}

(a) A Responsible Party may request the assignment or transfer of their License to another Person by submitting a request in writing.

(b) The assignee or transferee shall complete the requisite Licensure application and include the following:

(1) a copy of the Responsible Party's written request for assignment or transfer of their License;

(2) a draft copy of the proposed Assignment and Assumption Agreement; and

(3) if seeking transfer or assignment of a Sports Wagering Operator License, a Written Designation Agreement, pursuant to 24 NCAC 06B .0206.

(c) To qualify for consideration of the License transfer or assignment, the assignee or transferee shall first pay the requisite application fee and meet all qualifications and Background Investigation requirements for the requisite License.

(d) The Director may approve or deny the License assignment or transfer. The grounds for the denial of a License assignment or transfer are the same as those provided in Rule .0213(c) of this Subchapter with respect to the denial of an Application for a License. Denial of a License assignment or transfer is treated as a denial of an Application and affords the assignee or transferee the same right to seek reconsideration pursuant to Rule .0219 of this Subchapter, as if it were an Applicant whose Application was denied.

(e) The Assignment and Assumption Agreement shall be subject to the approval of the Director and shall include the Director as a signatory solely for the purpose of consenting to the Assignment and Assumption Agreement.

(f) An unauthorized assignment or transfer of a License voids the License.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-029
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0230 Termination of License {#sec-24-ncac-06a-.0230 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0230}

Upon termination of a License for any reason, no further Wagering Activity shall be conducted by the Responsible Party. After termination, at a date designated by the Director, the former Responsible Party shall submit to the Director a final accounting and surrender its License.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-030
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0231 Closing of a Responsible Party's Operation; Dissolution {#sec-24-ncac-06a-.0231 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0231}

(a) A Responsible Party shall notify the Director of any temporary or permanent closing plans at least 60 Days prior to closing its operations or as soon as the Responsible Party knows that closing is imminent, whichever period is shorter.

(b) Within 30 Days of notice to the Director, the Responsible Party shall provide the Director with a closing plan regarding the disposition of outstanding Tickets and futures Wagers.

(c) A Responsible Party shall notify the Director of any permanent cessation of operations at least 60 Days prior to operations ceasing, or the change of ownership, or as soon as the Responsible Party knows that closing is imminent, whichever period is shorter.

(d) Within 30 Days of notice to the Director, an Operator shall provide the Director with a closing plan regarding the disposition of Player Accounts and funds therein, if applicable. The closing plan shall be consistent with Operator's Internal Controls and identify any amendments the Operator proposed in order to implement the closing plan.

(e) A Responsible Party shall surrender its License within 10 Days of the dissolution effective date.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-031
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0232 License Display {#sec-24-ncac-06a-.0232 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0232}

An Operator shall prominently display the License issued by the Commission on its websites, mobile applications, and, if applicable, within the Wagering Facility.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1B-032
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0233 Certificate of Compliance {#sec-24-ncac-06a-.0233 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0233}

(a) Prior to commencing Wagering operations through a Sports Wagering Platform or Pari-Mutuel Wagering Platform in North Carolina, an Operator shall obtain a Certificate of Compliance for Online Operations from the Director by demonstrating that its Wagering Platform meets the requirements of the Act and these Rules. The Certificate of Compliance for Online Operations does not authorize an Operator to offer or accept in-person Wagers.

(b) Prior to commencing in-person Wagering operations in North Carolina, an Operator shall obtain a Certificate of Compliance for a Wagering Facility from the Director by demonstrating that its Wagering Facility meets the requirements of the Act and these Rules. The Certificate of Compliance for a Wagering Facility does not authorize an Operator to offer or accept Wagers strictly through a Sports Wagering or Pari-Mutuel Wagering Platform.

History

Authority G.S. 18C-114(a)(14)
Eff. January 17, 2025.

24 NCAC 06A .0301 Grounds for Disciplinary Actions {#sec-24-ncac-06a-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0301}

(a) The Commission, the Sports Betting Committee, or Director may suspend a License, revoke a License, or assess a civil penalty for a violation committed by a Responsible Party, or by the Responsible Party's employees or agents whether or not such actors hold a License issued by the Commission. An Operator may be subject to Disciplinary Action for violations committed by other Responsible Parties acting on its behalf, for its benefit, or at its direction.

(b) The following are examples of conduct that constitute grounds for Disciplinary Action:

(1) violation of the Act or other law, including, but not limited to, failure to maintain qualifications or suitability needed for a License;

(2) violation of Rules promulgated under the Act;

(3) violation of conditions of Licensure;

(4) violation of Commission directives, orders, or resolutions;

(5) violation of Laws, Rules, regulations, or ordinances impacting public safety;

(6) any act or omission of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the integrity of Wagering Activity;

(7) suspension or Revocation of a similar License held in another state or territory;

(8) other grounds identified by the Commission or Director; or

(9) a finding by the North Carolina Department of Revenue that the Responsible Party violated a provision in Article 2E of Chapter 105 of the North Carolina General Statutes.

(c) Acceptance or renewal of a License constitutes an agreement by the Responsible Party to be bound by Commission Rules. It is the responsibility of the Responsible Party to remain self-informed of the content of and any revisions to these Rules; ignorance of the Rules does not excuse violations.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0302 Informal Resolution {#sec-24-ncac-06a-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0302}

(a) Any dispute between the Commission and a Responsible Party that involves the Responsible Party's rights, duties, or privileges, arising from matters involving a proposed Disciplinary Action, may be settled or resolved through informal procedures. Settlement of disputes is encouraged at any stage of the Disciplinary Hearing or before such proceedings commence.

(b) Unless otherwise provided by law, the parties may resolve a Disciplinary Hearing before final action by the Commission. Resolution may occur by stipulation, agreed settlement, consent order, waiver, default, or other method agreed upon by the parties.

(c) If the Commission and the other Responsible Party do not agree to a resolution of the dispute through informal processes, the Commission shall commence a Disciplinary Hearing to determine the Responsible Party's rights, duties, privileges, or the appropriate Disciplinary Action.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0303 Initiation of Disciplinary Hearing; Notice of Hearing {#sec-24-ncac-06a-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0303}

(a) The Director, initiates a Disciplinary Hearing by:

(1) designating a hearing officer from a preselected panel of approved hearing officers, pursuant to Rule .0320 of this Subchapter; and

(2) following notification from the hearing officer of the date, time, and place of the hearing, which shall comply with Paragraph (c) of this Rule, submitting a "Notice of Disciplinary Hearing" to the hearing officer and Responsible Party.

(b) The Notice of Disciplinary Hearing shall be:

(1) provided to the designated hearing officer via email or other method identified by the hearing officer;

(2) served on the Responsible Party via email or in a manner outlined in Rule .0304 of this Subchapter; and

(3) in writing and contain at minimum:

(A) a short, plain statement of the facts describing the circumstances, violations, or conduct giving rise to the Disciplinary Hearing;

(B) the Disciplinary Action recommended;

(D) the date, hour, and place of the hearing.

(c) The Hearing officer shall set the date for the Disciplinary Hearing without undue delay; however, the hearing shall not occur within the 15 Days immediately following service of the Notice of Disciplinary Hearing.

(1) Notice of the date, hour, and place of the hearing shall be posted on the Commission's website. Notice of any postponement or rescheduling of such hearing shall be posted on the website as soon as reasonably practicable.

(2) A party other than the Commission that receives notice of a hearing may waive its right to be heard by submitting a written waiver to the Hearing officer.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0304 Method of Service {#sec-24-ncac-06a-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0304}

(a) In connection with a Disciplinary Hearing, service of process may be accomplished pursuant to means identified under G.S. 1A-1, Rule 5(b). If service is effectuated by registered, certified, or first-class mail, by signature confirmation as provided by the United States Postal Service, or by designated delivery service authorized pursuant to 26 U.S.C. 7502 (f)(2) with delivery receipt, then a copy shall be addressed to the party at the latest address given by the party to the Commission. Service by one of the additional methods provided in G.S. 1A-1, Rule 5(b), is effective as provided therein and shall be accompanied by a certificate of service as provided in G.S. 1A-1, Rule 5(b). G.S. 1A-1, Rule 6(e), applies if service is by first-class mail.

(b) The designated hearing officer may, in their discretion, identify different means for accomplishing service of process. The parties to the Disciplinary Hearing may agree to service of process via email.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0305 License Surrender {#sec-24-ncac-06a-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0305}

(a) When a Responsible Party is accused of any act, omission, or conduct that would subject it to Disciplinary Action, the Responsible Party, with the consent and approval of the Director, may surrender the License and all the rights and privileges pertaining to it for a period of time established by the Director.

(b) A Responsible Party that surrenders a License shall not thereafter be eligible for or submit any application for Licensure during the period of License surrender.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0306 Representation of Parties {#sec-24-ncac-06a-.0306 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0306}

(a) The Responsible Party that is subject of the Disciplinary Hearing shall appear in person, through an attorney.

(b) The Responsible Party's attorney shall be deemed to control all matters respecting the interest of the Responsible Party in the Disciplinary Hearing.

(c) The Director, staff, and the Commission's attorney shall act on behalf of the Commission at the Disciplinary Hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0307 Practice Before the Commission {#sec-24-ncac-06a-.0307 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0307}

(a) Any attorney representing a Responsible Party in a Disciplinary Hearing shall notify the Commission's attorney in writing of such representation immediately after being retained by the party. Such notice shall constitute an appearance on behalf of the party as an attorney of record in the matter.

(b) Each attorney practicing law in a Disciplinary Hearing shall promptly file with the hearing officer a notice of appearance in each particular matter and on behalf of each client represented and may be required to file evidence of the attorney's authority to act in such capacity. The address of each attorney, telephone number, and e-mail address shall be stated.

(c) In accordance with Rules of the North Carolina State Bar which govern the practice of law in North Carolina, an out-of-state attorney-at-law shall be associated with a North Carolina attorney-at-law in order to represent a Responsible Party in a Disciplinary Hearing. Out-of-state attorneys shall also comply with G.S. 84-4.1, pay a fee, register with the North Carolina State Bar through their in-state counsel, and comply with other applicable State law.

(d) When any matter is scheduled before the Commission, the Sports Betting Committee, or a hearing officer, the attorney shall, consistent with ethical requirements, appear or have a partner, associate, or another attorney familiar with the case appear. Unless an attorney has been excused in advance by the hearing officer, the Chair of the Sports Betting Committee, the Chair of the Commission, or their designee, an attorney's failure to appear may not be grounds for continuance.

(e) Motion to Withdraw as Attorney of Record. – An attorney retained to represent a client in a proceeding shall not withdraw from such representation without first filing a motion to withdraw and having the Commission, the Sports Betting Committee, or hearing officer approve such withdrawal. Motions to withdraw shall include a certificate of service showing service on and approval of the client from whom representation is being withdrawn.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0308 Ex Parte Communication {#sec-24-ncac-06a-.0308 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0308}

(a) Unless required for disposition of an ex parte matter authorized by law, a Responsible Party with a disciplinary matter before the Commission, the Sports Betting Committee, or hearing officer, or attorney or other representative for a Responsible Party with a disciplinary matter before the Commission, the Sports Betting Committee, or hearing officer, shall not communicate, directly or indirectly, with any hearing officer or member of the Commission in connection with any issue of fact or question of law at issue in the disciplinary matter except on written notice and opportunity for all parties to participate.

(b) This prohibition begins at the time of the Notice of the Disciplinary Hearing.

(c) When the disciplinary matter is in front of the Sports Betting Committee, the members of the Sports Betting Committee may only communicate with other members of the Commission that are also members of the Sports Betting Committee about issues related to the proceeding. When the disciplinary matter is in front of the Commission, a Commission member may communicate with other members of the Commission about issues related to the proceeding.

(d) A hearing officer or Commission member may have the aid and advice of the Commission staff other than the hearing officer or the staff which has been or is engaged in investigating or prosecuting functions in connection with the case under consideration or a case with related factual issues or similar legal issues.

(e) This Rule does not apply to a Commission employee or party representative with professional training in accounting, actuarial science, economics, or financial analysis insofar as the case involves financial practices or conditions.

(f) In the event such ex parte communication occurs, the Commission, the Sports Betting Committee, or the hearing officer may make such orders to take such action as fairness requires. Upon notice and hearing, the Commission, the Sports Betting Committee, or the hearing officer may take such Disciplinary Action as is appropriate in the circumstances against any Person who knowingly and willfully makes or solicits the making of a prohibited ex parte communication.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0309 Motions {#sec-24-ncac-06a-.0309 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0309}

(a) All motions filed with the Commission prior to a Disciplinary Hearing before the hearing officer shall be in writing, shall be served on the parties, and shall set forth reasons supporting the motion. All parties upon whom a motion is served shall have 10 Days from service to file a response. During a hearing, motions may be made orally, unless the hearing officer directs otherwise. Each motion shall state with particularity the grounds upon which it is based and the relief or order sought.

(b) Motions shall, in the ordinary course of proceedings, be heard and disposed of by hearing officers to whom the case is assigned, by the Sports Betting Committee when the case is before the Sports Betting Committee, or by the Commission when the case is before the Commission as a whole.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0310 Postponement of Hearing {#sec-24-ncac-06a-.0310 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0310}

(a) Postponement or rescheduling of a hearing ordinarily will not be allowed.

(b) Except in the case of extreme emergency, unusual circumstances, for good cause shown, or upon consent by all parties, no such request will be considered unless received in writing at least three Days in advance of the time set for the hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0311 Witness and Exhibit Lists {#sec-24-ncac-06a-.0311 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0311}

(a) Unless the hearing officer orders otherwise, a list of witnesses expected to be called during the Disciplinary Hearing and the list of exhibits, including copies of said exhibits, intended to be presented at the hearing shall be filed with the hearing officer and exchanged by the parties no later than 5:00 p.m. Eastern Time, three business Days prior to the scheduled hearing. Materials may be distributed electronically upon the approval of the hearing officer.

(b) Should a party attempt to admit into evidence any exhibit not provided in accordance with this Rule other than for purposes of rebuttal, upon objection by the opposing party, the hearing officer may consider this fact in their decision on the motion.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0312 Burden of Proof {#sec-24-ncac-06a-.0312 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0312}

The Commission has the burden of proving the facts alleged in the Notice of Disciplinary Hearing by clear and convincing evidence.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0313 Evidence {#sec-24-ncac-06a-.0313 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0313}

(a) Except as otherwise provided, the Rules of evidence as applied in the trial division of the North Carolina General Court of Justice shall be followed; but, when evidence is not reasonably available under such rules to show relevant facts, they may be shown by the most reliable and substantial evidence available.

(b) In all Disciplinary Hearings, irrelevant, immaterial, and unduly repetitive evidence shall be excluded.

(c) Evidence in a Disciplinary Hearing, including records and documents shall be offered and where appropriate admitted, and made a part of the record. Other factual information or evidence excluded from a hearing shall be made part of the record but shall not be considered in determination of the case, except as permitted under Rule .0316 of this Subchapter.

(d) Documentary evidence may be received in the form of a copy or excerpt or may be incorporated by reference, if the materials are so incorporated are available for examination by the parties. Upon timely request, a party shall be given an opportunity to compare the copy with the original if available.

(e) A party that seeks to enter the contents of voluminous records into evidence should offer that evidence as an exhibit in the form of a chart or summary. The offering party shall supply the opposing party with copies of all supporting documents on which the summaries are based.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0314 Depositions {#sec-24-ncac-06a-.0314 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0314}

A deposition may be used in lieu of other evidence when taken in compliance with the Rules of Civil Procedure, G.S. 1A-1.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-014
Eff. January 8, 2024
Readoption Eff. March 27, 2024.

24 NCAC 06A .0315 Prehearing Conference and Stipulations {#sec-24-ncac-06a-.0315 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0315}

(a) The hearing officer may direct the parties to conduct an informal pre-hearing conference, or the parties may request such a conference, which shall be scheduled at a time and place agreed upon by the parties. If the parties do not agree on the time and place of the pre-hearing conference, the hearing officer may set the time and place of the pre-hearing conference, giving reasonable written notice to all parties in the proceedings.

(b) At the discretion of the hearing officer, all or part of the pre-hearing conference may be conducted by telephone or other electronic means, so long as each party has an opportunity to participate.

(1) exploring settlement possibilities;

(2) formulating, clarifying, and simplifying the issues to be contested at the hearing;

(3) preparing stipulations of facts or findings;

(4) ruling on the identity and number of witnesses;

(5) determining the extent to which direct evidence, rebuttal evidence, or cross-examination will be presented in written form and the extent to which telephone, video tape, or other electronic means will be used as a substitute for proceedings in person;

(6) determining what depositions, discovery orders, or subpoenas will be needed; and

(7) other matters identified by the hearing officer.

(d) The parties in a Disciplinary Hearing may agree upon any fact involved in the controversy by stipulation in writing filed with the hearing officer; which stipulation shall be used as evidence at the hearing and be binding on the parties thereto. Parties should agree upon facts when practicable.

(e) Written stipulations shall be filed with the hearing officer no later than 5:00 p.m. Eastern Time, three business Days prior to the scheduled hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-015
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0316 Official Notice {#sec-24-ncac-06a-.0316 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0316}

Official notice may be taken of all facts of which judicial notice may be taken under Rule 201 of the North Carolina Rules of Evidence and of other facts within the specialized knowledge of the Commission. The noticed fact and its source shall be stated and made known to affected parties at the earliest practicable time, and any party shall on timely request be afforded an opportunity to dispute the noticed fact through submission of evidence and argument.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-016
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0317 Discovery {#sec-24-ncac-06a-.0317 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0317}

(a) Parties in a Disciplinary Hearing may engage in limited discovery pursuant to the provisions of the Rules of Civil Procedure, G.S. 1A-1. Discovery shall be confined to material factual matters appearing in the Notice of Disciplinary Hearing.

(b) Upon request for an identifiable Commission record involving a material fact in a Disciplinary Hearing, the Commission shall promptly provide the record to a party, unless the record relates solely to the Commission's internal procedures or is exempt from disclosure by law.

(c) Discovery will be limited by the hearing officer, taking into account such considerations as: burdensome expense, prior opportunity of a party to acquire the information, the complexity of issues in the case, and other relevant factors.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-017
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0318 Affidavits {#sec-24-ncac-06a-.0318 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0318}

An affidavit may be admitted as evidence in lieu of oral testimony if the matters therein contained are otherwise admissible and the parties agree to its admission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-018
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0319 Protection of Trade Secrets; Confidential Information {#sec-24-ncac-06a-.0319 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0319}

(a) Any party to a Disciplinary Action may make a claim with respect to the confidentiality of information. Any claim of confidential information, including but not limited to trade secrets or proprietary business information, shall be in writing or on the record if made at a hearing. The claim shall:

(1) identify the information claimed to be confidential;

(2) present facts supporting the claim; and

(3) set forth the relief sought.

(b) Any party wishing to oppose a written claim of confidentiality shall do so within 15 Days, except if the claim is made at a hearing, or if the hearing officer may prescribe a briefer response time. The opposing party shall present facts to support opposition to the claim of confidentiality.

(d) If the claim is upheld, the hearing officer shall issue such orders as may be appropriate to protect the confidentiality of the information at issue.

(e) A non-Operator party to a Written Designation Agreement may assert a claim of confidential information with respect to the agreement. Any claim of confidentiality, including but not limited to trade secrets or proprietary business information, shall be asserted on the record if made at a hearing or in writing timely submitted to the Hearing Officer and served on each party in the Disciplinary Action. The claim shall at a minimum:

(1) identify the information claimed to be confidential;

(2) present facts and legal basis supporting the claim; and

(3) set forth the relief sought.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-019
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0320 Designation of Hearing Officer {#sec-24-ncac-06a-.0320 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0320}

(a) The Commission shall select and maintain a list of no fewer than four qualified hearing officers. When Notice of Disciplinary Hearing is issued to the parties in a contested case, it shall identify the hearing officer designated by the Director to preside over the matter.

(b) Individuals selected by the Commission as hearing officers shall be members in good standing of the North Carolina State Bar who have demonstrated experience and expertise in areas of due process and administrative law within the last five years. A hearing officer shall not be contemporaneously employed by the State.

(c) Hearing officers shall be removed from the list for one or more of the following reasons: termination or revocation of the hearing officer's license to practice law, misfeasance, malfeasance, misconduct, immoral conduct, incompetency, the commission of a crime, or any other good and adequate reason as found by the Commission.

(d) The Commission shall determine the compensation for a hearing officer. The Commission shall pay the hearing officer's compensation and authorized expenses.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-020
Eff. January 8, 2024
Readopted Eff. March 27, 2024.
Amended Eff. January 17, 2025.

24 NCAC 06A .0321 Disqualification of Commission Member or Hearing Officer {#sec-24-ncac-06a-.0321 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0321}

(a) A member of the Commission or the hearing officer may withdraw from a proceeding whenever the Commissioner or hearing officer deems themselves to be disqualified.

(b) Any party may request a Commissioner or hearing officer, before or at the time of the hearing, to withdraw on grounds of conflict, personal bias, or reason for disqualification, by filing a motion. Such motion shall set forth in detail the matters alleged to constitute grounds for disqualification.

(c) If, in the opinion of the Commissioner or hearing officer, the motion referred to in Paragraph (b) of this Rule is filed with reasonable cause and is sufficient on its face, the Commissioner or hearing officer shall forthwith be disqualified and withdraw from the proceeding.

(d) When a Commissioner or the hearing officer is disqualified or withdraws from the proceeding, the Chair of the Commission, or the Chair of the Sports Betting Committee if the Chair of the Commission is unavailable, shall appoint a different hearing officer or Commissioner to participate in the proceeding.

(e) If the Commissioner or hearing officer denies the request for disqualification and does not withdraw from the proceeding, the Commissioner or hearing officer shall so rule upon the record, stating the grounds for ruling and shall proceed with the hearing, or, if the hearing has closed, the Commissioner or hearing officer shall proceed with the issuance of a written decision and the provisions of Rule .0329 of this Subchapter shall thereupon apply.

(f) A hearing officer shall not participate in a hearing under the following circumstances:

(1) the hearing officer has a personal bias or prejudice concerning a party, or personal knowledge of disputed evidentiary facts concerning the hearing;

(2) the hearing officer served as lawyer in the matter in controversy, or a lawyer with whom the hearing officer previously practiced law, served during such association as a lawyer concerning the matter, or the hearing officer or such lawyer has been a material witness concerning it;

(3) the hearing officer knows that they, individually or as a fiduciary, or the hearing officer's spouse or minor child residing in the hearing officer household, has a financial interest in the subject matter in controversy or in a party to the hearing, or any other interest that could be substantially affected by the outcome of the hearing; or

(4) the hearing officer or the hearing officer spouse, or a person within the third degree of relationship to either of them, or the spouse of such a person:

(A) is a party to the hearing, or an officer, director, or trustee of a party;

(B) is acting as a lawyer in the hearing;

(C) is known by the hearing officer to have an interest that could be substantially affected by the outcome of the proceeding;

(D) is to the hearing officer's knowledge likely to be a material witness in the hearing.

(g) A hearing officer should inform themselves about their own personal and fiduciary financial interests, and make a reasonable effort to inform themselves about the personal financial interests of the hearing officer's spouse and minor children residing in the hearing officer's household.

(h) At the initiation of a disciplinary proceeding, the designated hearing officer shall disclose whether or not they maintain an active interactive wagering account with a Commission licensee and identify the Commission licensee, to all parties to the hearing.

(i) For purposes of this Rule:

(1) the degree of relationship is calculated according to the civil law system;

(2) "fiduciary" includes such relationships as executor, administrator, trustee and guardian;

(3) "financial interest" means ownership of a substantial legal or equitable interest (i.e., an interest that would be significantly affected in value by the outcome of the subject legal proceeding), or a relationship as director or other active participant in the affairs of a party, except that:

(A) ownership in a mutual or common investment fund that holds securities is not a "financial interest" in such securities unless the hearing officer participates in the management of the fund;

(B) an office in an educational, cultural, historical, religious, charitable, fraternal, or civic organization is not a "financial interest" in securities held by the organization.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-021
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0322 Hearing Officer Responsibilities {#sec-24-ncac-06a-.0322 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0322}

(a) It shall be the duty of the hearing officer to conduct a fair and impartial hearing to assure that the facts are fully elicited to adjudicate all issues and to avoid delay.

(b) The hearing officer shall have the authority to:

(1) administer oaths and affirmations;

(2) rule upon motions;

(3) rule upon offers of proof and receive relevant evidence;

(4) take or cause depositions to be taken whenever the needs of justice would be served;

(5) regulate the course of the hearings and set the time and place for continued hearings;

(6) hold conferences for the settlement or simplification of the issues;

(7) dispose of procedural requests or similar matters, including motions to amend or dismiss pleadings, to dismiss complaints or portions thereof, and to order hearings reopened, or upon motion, consolidation of issues or proceedings or severance of issues or proceedings prior to issuance of any final decision;

(8) hear and examine witnesses and to receive into the record documentary or other evidence;

(9) request the parties at any time, before, during, or after, the hearing to state their respective positions concerning any issues in the case or any argument or theory in support of their positions;

(10) adjourn or continue the hearing as the needs of justice and good administration require;

(11) amend the procedural Rules set forth in this Section as necessary to ensure the timely adjudication of disciplinary matters; and

(12) take any other action necessary under the foregoing and authorized by the published Rules of the Commission or the General Statutes.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-022
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0323 Consolidation {#sec-24-ncac-06a-.0323 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0323}

(a) When hearings involving a common question of law or fact or multiple proceedings involving the same or related parties are pending, the hearing officer may order a joint hearing of any matters at issue in the cases, order the cases consolidated, or make other orders to reduce costs or delay in the proceedings.

(b) Cases may be consolidated on the motion of any party, or on the hearing officer's own motion where there exists common parties, common questions of law or fact, or both, in such other circumstances as justice and the administration of the Act require.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-023
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0324 Severance {#sec-24-ncac-06a-.0324 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0324}

Upon its own motion, or upon the motion of any party, the hearing officer may, for good cause, order the severance of any issues, parties, or proceedings in a hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-024
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0325 Conduct of a Hearing {#sec-24-ncac-06a-.0325 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0325}

(a) All hearings shall be open to the public. Hearings shall be conducted in a fair and impartial manner.

(b) At the hearing the parties shall be given an opportunity to present evidence on issues of fact, to examine and cross-examine witnesses, including the author of a document prepared by, on behalf of, or for the use of the Commission and offered into evidence, to submit rebuttal evidence, and present arguments on issues of law or policy.

(c) The use or operation of a device to capture, record, transmit, or broadcast a photograph, video, motion picture or audio of a proceeding or person during a hearing or within the premises where a hearing is being held or in an area adjacent to the hearing without the approval of the hearing officer is forbidden. Parties seeking to operate such equipment shall relay a request in writing to the Director at least 48 hours in advance of the proceeding. The Director shall relay all written requests to the hearing officer, who shall respond to all requests in writing or on the record at the hearing. The hearing officer shall control the manner of any recording or broadcasting processes they allow to ensure that it is not disruptive to the hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-025
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0326 Venue of a Hearing {#sec-24-ncac-06a-.0326 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0326}

(a) The hearing of a contested case shall be conducted where the Commission maintains its principal office or in any county determined by the hearing officer in their discretion to promote the ends of justice or better serve the convenience of witnesses.

(b) Any party may make a motion to change the venue of a hearing and shall set forth reasons supporting the motion. Decisions on a motion to change venue shall be in the discretion of the hearing officer. Any party to a hearing waives their objection to venue by proceeding in the hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-026
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0327 Failure to Appear {#sec-24-ncac-06a-.0327 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0327}

(a) If a party fails to appear in a contested case after they have been given proper notice, the hearing officer may continue the hearing or proceed with the hearing and make its decision in the absence of the party.

(b) Subject to Paragraph (c) of this Rule, the failure of a party to appear at or during a duly noticed hearing shall be deemed to be a waiver of all rights to participate and be heard in the hearing.

(c) The hearing officer, upon a timely showing of good cause, may excuse such failure to appear. In such event, the hearing may be rescheduled.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-027
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0328 Examination of Witnesses {#sec-24-ncac-06a-.0328 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0328}

(a) Witnesses shall be examined orally under oath or affirmation. Opposing parties shall have the right to cross-examine any witness whose testimony is introduced by an adverse party. All parties may cross-examine any witness called by the hearing officer pursuant to Rule .0322 of this Subchapter.

(b) Witnesses shall present a valid government issued form of identification which includes their legal name and a photograph to the court reporter prior to the start of a hearing. Remote testimony via videoconference may be allowed in the discretion of the hearing officer.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-028
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0329 Hearing Officer Recommendation {#sec-24-ncac-06a-.0329 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0329}

(a) The recommendation of the hearing officer shall be in writing and shall include findings of fact, conclusions of law, and a recommended disciplinary action, if any, to the Sports Betting Committee.

(b) Findings of fact shall be based exclusively on the evidence and on matters officially noticed. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting them.

(c) The hearing officer shall sign the recommendation. Upon filing of the recommendation, jurisdiction shall rest solely in the Sports Betting Committee, and all motions, petitions, and other pleadings filed subsequent to such issuance shall be addressed to the Sports Betting Committee.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-029
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0330 Sports Betting Committee Decision {#sec-24-ncac-06a-.0330 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0330}

(a) After review and consideration of the hearing officer's recommendation, the Sports Betting Committee shall make a written order adopting, amending, or rejecting and remanding the recommendation of the hearing officer.

(b) After review and consideration of the hearing officer's recommendation, if the Sports Betting Committee finds that the record is incomplete, the Sports Betting Committee may remand the case back to the hearing officer for further proceedings.

(d) A copy of the order shall be served upon each party by one of the methods for service of process described in Rule .0304 of this Subchapter.

(e) A copy of the or order shall be furnished to the party's attorney of record.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-030
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0331 Appeal to the Commission {#sec-24-ncac-06a-.0331 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0331}

(a) A Responsible Party may appeal the order of the Sports Betting Committee to the Commission by filing a written appeal with the Commission no later than 15 Days from receipt of the Sports Betting Committee's order. The written appeal shall contain:

(1) a statement identifying the grounds for which the party intends to contest the Sports Betting Committee's order and state the reasons therefor;

(2) a description of all facts the Responsible Party is relying on to contest the order;

(3) a description of any alleged errors by the hearing officer or Sports Betting Committee; and

(4) a statement of truth, swearing or affirming that all information contained in the written appeal is accurate and complete.

(b) Upon filing of the written appeal, jurisdiction shall rest solely in the Commission, and all motions, petitions, and other pleadings filed subsequent to such appeal shall be addressed to the Commission.

(c) Upon receipt of written appeal, the order of the Sports Betting Committee shall be stayed, pending final decision by the Commission.

(d) Upon receipt of the written appeal, the Commission staff shall compile a full record of the Disciplinary Hearing, including the Sports Betting Committee's order. Staff will provide this record to the Commission and to the Responsible Party who submitted the appeal within 21 Days of the Commission's receipt of the written appeal. The Commission staff may include a written response to the written appeal from the Responsible Party in the record.

(e) The Commission shall have 90 Days from receipt of the full record to make a written final decision adopting, amending, or rejecting and remanding the Sports Betting Committee's order.

(f) The Commission's final decision shall be served upon each party by one of the methods of service of process described in Rule .0304 of this Subchapter.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-031
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0332 Judicial Review {#sec-24-ncac-06a-.0332 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0332}

Any party or Person aggrieved by the final decision or order of the Commission in a hearing, and that has exhausted all administrative remedies made available to the party or Person aggrieved by statute or Commission Rule, may seek judicial review in the Superior Court of Wake County North Carolina. In addition to the copy filed with the Court, a copy of the petition for judicial review shall be served on all parties in the underlying hearing.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-032
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0333 Official Record {#sec-24-ncac-06a-.0333 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0333}

(a) The Commission shall prepare an official record of a hearing that shall include:

(1) notices, pleadings, motions, and intermediate rulings;

(2) questions and offers of proof, objections, and rulings thereon;

(3) evidence presented;

(4) matters officially noticed, except matters so obvious that a statement of them would serve no useful purpose;

(5) proposed findings and exceptions filed by the parties; and

(6) any decision, opinion, order, or recommendation by the hearing officer at the hearing, the Sports Betting Committee, or the Commission.

(b) Proceedings at which oral evidence is presented shall be recorded, but need not be transcribed unless requested by a party.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-033
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0334 Request for Transcript of Hearing {#sec-24-ncac-06a-.0334 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0334}

(a) Upon written request, Commission staff shall provide a non-certified copy of a transcript of hearing within a reasonable time after receiving the request.

(b) Should a party wish to receive a certified copy of a transcript of hearing, they shall request this directly from the court reporting company and bear any associated cost.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-034
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0335 Summary Suspension {#sec-24-ncac-06a-.0335 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0335}

(a) Counsel for the Commission shall present a motion for summary Suspension to the Chair of the Commission, or the Chair of the Sports Betting Committee if the Chair of the Commission is unavailable, and may be presented ex parte. The motion shall be supported by an affidavit of a Person with first-hand knowledge of the facts alleged which require emergency action.

(b) The Chair of the Commission or Chair of the Sports Betting Committee may summarily suspend a License without notice or a formal Disciplinary Hearing if the Chair of the Commission or Chair of the Sports Betting Committee determines based on factual showing assembled by Commission staff that:

(1) the safety or health of Persons or employees or the integrity of Sports Wagering or Pari-Mutuel Wagering is jeopardized by continuing an operation; or

(2) Suspension is necessary for the immediate preservation of the integrity of Sports Wagering, Pari-Mutuel Wagering, public peace, health, safety morals, good order, or general welfare.

(c) When a License is summarily suspended, the Director shall immediately designate a hearing officer and schedule a hearing, to occur at the earliest practicable date, on the merits of the charges set out in a Notice of Disciplinary Hearing issued contemporaneously with the order of summary Suspension. Such hearing shall proceed according to Rules outlined in this Section.

(d) As soon as possible following the decision to summarily suspend a License, the Director shall serve on the Responsible Party the order for summary Suspension, the Notice of Disciplinary Hearing, and other record materials considered by the Chair of the Commission or Chair of the Sports Betting Committee in ordering the summary Suspension. The order of summary Suspension shall be effective no earlier than the date of service of the summary Suspension order on the Licensee. The Notice shall be served personally or pursuant to Rule .0304 of this Subchapter.

(e) The order of summary Suspension shall remain in effect until the Commission vacates it. The order of summary Suspension shall state when the Suspension will begin and end, and shall state the reasons for the Suspension.

(f) At the scheduled hearing, the summarily suspended Responsible Party may petition the hearing officer to vacate the summary Suspension order.

(1) If the hearing officer finds that the summary Suspension order was issued in error or on insufficient factual grounds to justify emergency action, the hearing officer may vacate the summary Suspension order.

(2) The hearing officer shall hear and consider the merits of the Responsible Party's petition. Rules governing the conduct and procedure of Commission Disciplinary Hearings shall apply under those circumstances.

(g) Neither an order of summary Suspension nor a denial of a motion to vacate an order of summary Suspension is a final Commission decision.

(h) The Director or their designee shall serve the Responsible Party with the order of summary Suspension via email and by a method outlined Rule .0304 of this Subchapter.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1C-035
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0401 Internal Controls {#sec-24-ncac-06a-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0401}

(a) Unless otherwise provided for by the Commission, before beginning Wagering operations, an Operator shall submit its Internal Controls in detail, as identified in these Rules.

(b) The Operator's proposed Internal Controls shall be submitted to the Director in a form or in the manner required by the Commission.

(c) At the time of submitting Internal Controls to the Director, the Operator shall stamp or otherwise mark each page of the Internal Controls with the word "CONFIDENTIAL" if the Operator does not believe the material submitted should be subject to public disclosure. All Internal Control documents submitted to the Director, regardless of markings are subject to applicable law concerning public records and confidentiality.

(d) The Director's review and written approval of the Operator's proposed Internal Controls is required for the Operator to begin Wagering operations.

(e) The Director may perform inspections required to determine conformance with the approved Internal Controls.

(f) If the Director determines that the Internal Controls of the Operator do not comply with the requirements of these Rules or otherwise require revision, the Director shall notify the Operator in writing. Within 15 Days after receiving the notification, the Operator shall amend its Internal Controls accordingly and shall submit for the Director's approval a copy of the written Internal Controls, as revised; any explanation necessary to an understanding of the revisions; and a description of other remedial measures taken.

(g) The Commission's receipt, review, and approval of an Operator's Internal Controls does not constitute a legal determination by the Commission or its staff concerning the Operator's compliance with the law or these Rules. The Operator is ultimately responsible to ensure its conduct complies with the law and these Rules. Additionally, the Operator is responsible for conducting business in a manner identified in its Internal Controls as they have been reviewed and approved by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0402 Revisions to Internal Controls {#sec-24-ncac-06a-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0402}

(a) A proposed revision to a portion of an Internal Control shall be submitted to the Director for approval. If within 30 Days the Director has not approved, denied, or otherwise provided written notice of an action taken to the proposed revision, an Operator may implement the proposed revised Internal Controls as submitted; in such circumstances, the Commission and Director retain authority to require further revision or to deny the proposed revision, and such delay shall not constitute waiver or estoppel.

(b) The Director may, in writing, approve, deny, or require additional modifications to any revision to the Internal Controls. If the Operator is notified of a required modification, the Operator shall address the modification within 15 Days, unless otherwise required by the Director.

(c) If the Director requests additional information, clarification, or modification of a revision to the Internal Controls and the Operator fails to satisfy the request within 15 Days after the request, the Commission shall consider the proposed revision denied and it cannot be implemented or, if previously implemented, the Operator has 15 Days to stop implementation of that revision. If the Operator subsequently wants to pursue the revision, it shall resubmit the request along with the additional information previously requested by the Director. Nothing in this Chapter shall be interpreted to limit an Operator's use of technology. If the Operator intends to use new technology not identified in its initial proposal, it shall submit the proposed changes to its Internal Controls to incorporate the use of new technology for review.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0403 Emergency Revision to Internal Controls {#sec-24-ncac-06a-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0403}

(a) In the event of an emergency, the Operator may temporarily revise or amend its Internal Controls. The Operator shall notify the Director in writing that an emergency exists before temporarily amending its Internal Controls. Such notification shall identify the emergency in detail.

(b) The Operator shall submit the temporary emergency revision of the Internal Controls to the Director within 24 hours of enacting the emergency revision. The submission shall include the detailed emergency procedures that will be implemented and the time period for which the emergency procedures will be temporarily in place. Concerns that the Commission or Director have with the submission shall be addressed with the Operator; the Commission or Director may reject the emergency revision to Internal Controls.

(c) As soon as the circumstances necessitating the emergency revision to the Internal Controls abate, an Operator shall resume compliance with the Internal Controls protocol approved by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0404 Operator Remains Ultimately Responsible for Internal Controls {#sec-24-ncac-06a-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0404}

(a) To the extent a Service Provider, Supplier, or other third-party is involved in or provides Internal Controls required in this Chapter, the Operator's Internal Controls shall document the roles and responsibilities of the Service Provider, Supplier, or other third-party. The Operator's Internal Controls shall also include procedures to evaluate the adequacy of and monitor compliance with the Operator's Internal Controls by the Service Provider, Supplier, or other third-party.

(b) The Operator shall be responsible for compliance with each of its Internal Controls, including ones fulfilled or provided by a Service Provider, Supplier, or other third-party with whom it contracts.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0405 Administrative and Accounting Procedures {#sec-24-ncac-06a-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0405}

The Operator's Internal Controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of these Rules, including:

(1) Administrative controls and procedures designed to ensure that activities and transactions of the Operator are started and completed in accordance with the applicable policy or procedure.

(2) Accounting controls, as detailed in Rules in this Section and Section .0700 of this Subchapter, which include, as their primary objectives:

(a) processes for recording the collection of Wagers, payment of Wagers, and cancellation of Wagers issued in accordance with generally accepted accounting principles; and

(b) requirements for an annual financial audit.

(3) Reporting controls which shall include policies and procedures for the timely reporting of standard financial and statistical reports and information in accordance with these Rules.

(4) Access controls which include, as their primary objective, the safeguarding of company assets to include safeguards in the form of organizational safeguards.

(5) Provisions to ensure that Internal Controls related to:

(a) Responsible Gaming Plans comply with Section .0600 of this Subchapter;

(b) Wagering Accounts comply with Section .0700 of this Subchapter; and

(6) All other applicable policies and procedures required pursuant to these Rules.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0406 Jobs Compendium {#sec-24-ncac-06a-.0406 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0406}

The Internal Controls shall include a complete and up-to-date jobs compendium detailing job descriptions, chains of command, and lines of authority for personnel engaged in the Wagering operation. The Operator shall submit the updated jobs compendium to the Director eighteen months after Internal Controls approval and every two years thereafter, unless otherwise directed by the Commission or Director. A jobs compendium shall include the following sections:

(1) A table of contents listing the position title and job code for each job description and the page number on which the corresponding job description may be found.

(2) A table of organization for each department and division, including all positions, and illustrating by position title and direct and indirect lines of authority within the department or division.

(a) The tables of organization shall provide for:

(i) a system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;

(ii) the segregation of incompatible functions so that no employee is in a position in the normal course of their duties both to commit an error or to perpetrate a fraud and then to conceal the error or fraud;

(iii) primary and secondary supervisory positions which permit the authorization or supervision of transactions at relevant times; and

(iv) areas of responsibility which are not so extensive as to be impractical for one Person to monitor.

(b) Each page of a table of organization shall specify:

(i) the date of its submission;

(ii) the date of the previously submitted table of organization which it supersedes; and

(iii) a unique title or other identifying designation for that table of organization.

(3) A description of each employee position which accurately corresponds to the position title as listed in the table of organization and in the table of contents. Each position description shall be organized by departments or divisions, and shall include, at a minimum, the following:

(a) position title and corresponding department;

(b) job duties and responsibilities;

(d) the date of submission of each employee position job description and the date of any prior job description it supersedes;

(e) the date of submission and page number of each table of organization on which the employee position title is included; and

(f) identification of positions where the employee is subject to a background check.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0407 Information Security Responsibilities {#sec-24-ncac-06a-.0407 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0407}

(a) The Internal Controls shall ensure that an Operator effectively implements its information security program in compliance with this Chapter and effectively allocates information security function responsibilities.

(b) The Operator shall implement, maintain, and comply with its comprehensive information security program as described in the Internal Controls, the purpose of which shall be to protect the confidentiality, integrity, and availability of Personal Information and other identifying information listed at G.S. 14-113.20(b) that is in its possession or in the possession of those entities acting on the Operator's behalf or under its direction.

(c) The Operator's information security program shall contain administrative, technical, and physical safeguards appropriate to the size, complexity, nature, and scope of the operations and the sensitivity of the Personal Information and other identifying information listed at G.S. 14-113.20(b) owned, licensed, maintained, handled, or otherwise in the possession of the Operator or in the possession of those entities acting on the Operator's behalf or under its direction.

(d) With respect to allocating security function responsibilities, the Operator shall utilize in its organizational structure an information security forum and an information security department as described in Paragraph (f) of this Rule.

(e) The Operator shall formally establish an information security forum or other organizational structures comprised of senior managers to monitor and review the information security program to ensure the program's suitability, adequacy, and effectiveness.

(1) The forum or other structures shall maintain formal minutes of meetings and convene at least every six months.

(2) The Operator's chief security officer or equivalent head of the information security department shall be a full member of the information security forum and be responsible for recommending information security policies and changes.

(f) The Operator shall maintain an information security department that is responsible for developing a security strategy in accordance with the overall Wagering operation. The information security department will subsequently work with the Operator's other departments, Affiliates, or Responsible Parties to implement and maintain the associated action plans. The department shall:

(1) be involved in reviewing tasks and processes that are required from the security perspective for the Operator, including, but not limited to, the protection of information and data, communications, physical, virtual, personnel, and overall business operational security;

(2) report to no lower than executive level management and shall be independent of the information technology department with regard to the management of security risk; and

(3) have the competences and be sufficiently empowered and have access to resources needed to enable the adequate assessment, management, and reduction of risk.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0408 Information Processing {#sec-24-ncac-06a-.0408 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0408}

The Internal Controls shall include a summary description of the Operator's or its Affiliates' use of computerized algorithms, automated decision-making, machine learning, artificial intelligence, or any similar system that analyzes patron information, which shall include:

(1) a description of permissible and impermissible uses of such practices and capabilities;

(2) the purposes for which such practices and capabilities are used;

(3) the types of input and output data utilized and a summary accounting of the source of each; and

(4) a description of how these systems are used to:

(a) minimize risky play behavior; and

(b) market or advertise to Players.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0409 Reporting Requirements in the Event of a Cyber Incident {#sec-24-ncac-06a-.0409 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0409}

(a) The Internal Controls shall ensure that an Operator that experiences a cyber incident to its information system resulting in a material loss of control, compromise, unauthorized disclosure of data or information, or any other similar occurrence shall:

(1) provide written notification of the incident to the Director as soon as practicable but no later than 72 hours after becoming aware of the incident. Upon request, the Operator shall provide the Director with specific information regarding the incident;

(2) perform, or have a third-party perform, an investigation into the incident, prepare a report documenting the results of the investigation, notify the Director of the completion of the report, and make the report available to the Director for review upon request. The report shall include, without limit, the root cause of the incident, the extent of the incident, including detailed information about injuries to North Carolina Players, if any, planned or proposed measures to mitigate any harm to North Carolina Players, and any actions taken or planned to be taken to prevent similar events that allowed the incident to occur; and

(3) notify the Director when any investigation or similar action taken by an entity external to the Operator is completed and make the results of such investigation or similar action available to the Commission upon request.

(b) For purposes of this Rule:

(1) "cyber incident" means:

(A) any material act or material attempt to gain unauthorized access to an information system for purpose of disrupting, disabling, destroying, or controlling the system or destroying or gaining access to the information contained therein; or

(B) an incident of unauthorized access to and acquisition of unencrypted and unredacted records or data containing Personal Information where illegal use of the Personal Information has occurred or is reasonably likely to occur or that creates a material risk of harm to a consumer. Any incident of unauthorized access to and acquisition of encrypted records or data containing Personal Information along with the confidential process or key shall constitute a cyber incident; however, good faith acquisition of Personal Information by an employee or agent of the Operator for a legitimate purpose is not a cyber incident, provided that the Personal Information is not used for a purpose other than a lawful purpose of the business and is not subject to further unauthorized disclosure; and

(2) "information system" means a set of resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information. Elements of an information system include, without limit, hardware, software, information, data, applications, communications, and people.

(c) The requirements in this Rule are supplemental to any requirements applicable to Licensees arising under State or federal law.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0410 Accounting Records {#sec-24-ncac-06a-.0410 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0410}

(a) The Operator shall maintain complete, accurate, and legible records of transactions related to their Wagering Operation for five years, including transactions pertaining to revenues, expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles.

(1) The Commission or Director may direct Operators to modify how the records are maintained if an Operator's records are not in accordance with generally accepted accounting principles or if the records are not in sufficient detail.

(2) The accounting records shall be maintained using a double entry system of accounting with transactions recorded on the accrual basis and supported by detailed subsidiary records.

(b) The detailed subsidiary records shall include, at a minimum:

(1) detailed general ledger accounts identifying revenue, expenses, assets, liabilities, and equity;

(2) a record of investments, advances, loans, and accounts receivable balances due the Operator;

(3) a record of loans and other accounts payable;

(4) a record of accounts receivable written off as uncollectible;

(5) journal entries prepared;

(6) tax work papers used in preparation of a state or federal tax return if applicable;

(7) records supporting the accumulation of the costs for complimentary services and items. A complimentary service or item provided to Persons in the normal course of a Wagering business shall be recorded in an amount based on the full retail price normally charged for the service or item or as is otherwise consistent with generally accepted accounting principles;

(8) records required by the Internal Controls; and

(9) other records that the Commission requires to be maintained.

(1) for Sports Wagering, the Gross Wagering Revenue, as defined by G.S. 18C-901(7); and

(2) for Pari-Mutuel Wagering, the total Wagers placed by residents of this State.

(d) If an Operator fails to maintain the records used by it to calculate the applicable amounts specified in Paragraph (c), the Commission may compute and determine the amounts on the basis of an audit conducted by the Commission using available information.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0411 Financial Audits {#sec-24-ncac-06a-.0411 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0411}

(a) Upon submitting an application, and annually thereafter, Operators and Service Providers shall submit to the Director, within 120 Days of the Operator's fiscal year end, its financial audit for that fiscal year.

(b) The financial audit shall be performed by an independent certified public accountant authorized to practice in North Carolina and presented in accordance with generally accepted accounting principles and containing the opinion of the independent certified public accountant as to its fair preparation and presentation in accordance with generally accepted accounting principles. If an Operator's or Service Provider's audited financial statements are produced at the parent company level, the audited financial statements of the parent company may be submitted, only if North Carolina's information is identified and accessible separately from the entire parent company information. If prepared in another U.S. State or jurisdiction, the financial audit shall be reviewed and certified as outlined herein by an independent certified public accountant authorized to practice in North Carolina.

(c) The Director shall determine the number of copies of audits or reports required under these Rules. The audits or reports shall be received by the Commission via approved electronic methods or postmarked no later than the required filing date.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0412 Retention, Storage, and Destruction of Records {#sec-24-ncac-06a-.0412 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0412}

The Internal Controls shall include a records retention schedule, and provisions related to the storage and destruction of records that at a minimum incorporates the following provisions:

(1) An Operator shall maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations.

(2) An Operator shall organize and index required records in a manner that enables the Commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency.

(3) An Operator shall make the records available to the Commission or Director, on request, within a reasonable time provided for by the Commission or Director. The records shall include, but not be limited to:

(a) a listing of all current and former employees along with their titles, chains of command, and history of employment status;

(b) all relevant correspondence with, or reports to, the Commission or any local, state, or federal governmental agency;

(c) all relevant correspondence concerning the business of an Operator, its Service Providers, Suppliers, or other third-party with whom it contracts;

(d) the business and organizational structure of the record holder;

(e) any acquisition, construction, remodeling, relocation, or maintenance of a proposed or existing Wagering Facility; and

(f) for Sports Wagering, the Written Designation Agreement, pursuant to 24 NCAC 06B .0206.

(4) An Operator shall keep and maintain, in a manner and form required by the Commission, accurate, complete, and legible records of books, records, or documents, including electronic storage media, pertaining to, prepared in, or generated by, the Operator, including but not limited to:

(a) forms;

(b) reports;

(d) ledgers;

(e) subsidiary records;

(f) internal and external audit records;

(g) correspondence; and

(h) personnel records.

(5) An Operator shall retain the records for not less than five years or for a longer period required by law for inspection by authorized State or federal government agents or officials. If a litigation, claim, or audit is started before the expiration of the five-year period, the records shall be retained until litigation, claims, or audit findings involving the records have been resolved.

(6) Compliance with G.S. 18C-910(b).

(7) An Operator shall, except as otherwise provided, notify the Director in writing at least 60 Days prior to the scheduled destruction of records required to be retained in accordance with this Rule. This notice shall list the types of record scheduled for destruction, including a description sufficient to identify the records included, the retention period, and the date of destruction. If documents are to be destroyed in the normal course of business in accordance with document retention policies previously set forth in the Internal Controls approved by the Director, no notice to the Director shall be required.

(8) The Commission or Director may prohibit the destruction of records required to be retained in accordance with this Rule by so notifying the Operator in writing within 45 Days of receipt of the notice of destruction pursuant to Paragraph (7) of this Rule or within the specified retention period. Any original records in this regard may thereafter be destroyed only after notice from the Commission or Director, or by order of the Commission on the petition of the Operator or by the Commission or Director on its own initiative.

(9) The Operator may use the services of a disposal company for the destruction of records required to be retained in accordance with this Rule.

(10) Nothing in this Chapter shall be construed as relieving an Operator from meeting an obligation to prepare or maintain a book, record or document required by another federal, state or local governmental body, authority or agency.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0413 Reserve Requirement {#sec-24-ncac-06a-.0413 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0413}

(a) The Internal Controls shall include a plan to maintain and protect sufficient Cash or Cash Equivalents and other supplies to continuously conduct Sports Wagering or Pari-Mutuel Wagering through a reserve in the amount needed to ensure the security of funds held in Wagering Accounts and the ability to cover the outstanding liabilities for Wagering.

(b) The reserve may take the form of a bond, an irrevocable letter of credit, payment processor reserves and receivables, Cash or Cash Equivalents segregated from operational funds, a guaranty letter, a combination thereof, or another means as approved by the Commission.

(1) For Sports Wagering, the reserve shall be not less than the greater of five hundred thousand dollars ($500,000), or the sum of the:

(A) cashable amounts held by the Operator on Wagering Accounts;

(B) pending withdrawals from Wagering Accounts;

(D) amounts owed but unpaid on winning Sports Wagers; and

(E) average monthly amount of Sports Wagering taxes due to the State of North Carolina for the past 12 months, except during the first 11 months of licensure which shall be calculated as the average monthly amount of Sports Wagering taxes due to the State of North Carolina since the Operator started accepting Sports Wagers.

(2) For Pari-Mutuel Wagering, the reserve shall not be less than the sum of the:

(A) cashable amounts held by the Operator on Wagering Accounts;

(B) pending withdrawals from Wagering Accounts;

(D) amounts owed but unpaid on winning Pari-Mutuel Wagers; and

(E) one twelfth (1/12) of the aggregate Annual fee for ADW licensees accrued for the past 12 months, except during the first 11 months of licensure which shall be calculated as the aggregate accrued Annual Fee for ADW licensees divided by the number of months the ADW licensee has been accepting ADW Wagers.

(3) The reserve shall be adequate to pay all winning Wagers when due.

(4) Amounts available to Players for Wagering that are not redeemable for Cash may be excluded from the reserve computation.

(d) An Operator is presumed to have met this requirement if the Operator maintains, on a daily basis, a minimum reserve in an amount that is equal to or exceeds the average daily minimum reserve, calculated on a monthly basis, for the corresponding month in the previous year.

(e) An Operator shall have access to Wagering Account and transaction data to ensure the amount of its reserve is sufficient. Unless otherwise directed by the Commission or Director, an Operator shall file a monthly attestation with the Director, in the form and manner prescribed by the Commission, that funds have been safeguarded under this Rule.

(f) The Director may audit an Operator's reserve at any time and may direct an Operator to take action required to ensure the purposes of this Rule are achieved, including but not limited to requiring the Operator to modify the form of its reserve or increase the amount of its reserve.

(g) An Operator shall deposit and maintain reserve funds with a financial institution insured by the Federal Deposit Insurance Corporation and authorized to transact business in North Carolina.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0414 Risk Management Framework {#sec-24-ncac-06a-.0414 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0414}

(a) The Operator shall implement and maintain an effective risk management framework. This framework may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a Supplier.

(b) The Internal Controls shall contain a description of the risk management framework, including but not limited to:

(1) automated and manual risk management procedures;

(2) employee management, including access controls and segregation of duties;

(3) information regarding identifying and reporting fraud, suspicious conduct, or Suspicious or Illegal Wagering Activity;

(4) controls ensuring regulatory compliance;

(5) description of anti-money laundering compliance standards;

(6) description of software applications that comprise the system used for Wagering;

(7) description of types of Wagers available to be offered by the Operator;

(8) description of the procedures to prevent past posting of Wagers;

(9) description of the procedures to cancel or void a Wager;

(10) description of the procedures to prevent individuals from placing Wagers as agents or proxies for other Individuals or Persons;

(11) description of integrated third-party platforms; and

(12) other information that may be required by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-014
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0415 Taxation Requirements {#sec-24-ncac-06a-.0415 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0415}

The Internal Controls shall ensure that the Operator remains in full compliance with Internal Revenue Service and North Carolina Department of Revenue requirements, and the Operator shall provide for the withholding or reporting of income tax of Players as required by applicable state or federal law. The Commission's receipt, acknowledgement, or review of an Operator's internal controls concerning legal requirements originating outside of the Act does not constitute a legal determination by the Commission or its staff concerning the Operator's conduct or compliance with the law. The Operator shall:

(1) Comply with applicable state and federal tax laws and regulations including, without limitation, laws and regulations applicable to tax withholding and laws and regulations applicable to providing information about payouts and withholdings to taxing authorities and to Players.

(2) Disclose potential tax liabilities to Players at the time of the award of Wagering payouts in excess of limits set by the Internal Revenue Service. These disclosures will include a statement that the obligation to pay applicable taxes on payouts is the responsibility of the Player and that failure to pay applicable tax liabilities may result in civil penalties or criminal liability. On written request, the Operator shall provide Players with summarized tax information on Wagering Activities.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-015
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0416 Bank Secrecy Act Compliance {#sec-24-ncac-06a-.0416 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0416}

The Internal Controls shall ensure that the Operator remains in full compliance with provisions of The Bank Secrecy Act of 1970, 31 U.S.C 5311, and related federal regulations, applicable to the operation of Sports Wagering or Pari-Mutuel Wagering. The Commission's receipt, acknowledgement, or review of an Operator's internal controls concerning legal requirements originating outside of the Act does not constitute a legal determination by the Commission or its staff concerning the Operator's conduct or compliance with the law. The Operator shall:

(1) Maintain records related to its compliance with The Bank Secrecy Act of 1970, 31 U.S.C 5311, including currency transaction reports, suspicious activity reports, and supporting documentation, for five years or for a longer period required by law for inspection by agents or officials of the State or federal government. If a litigation, claim, or audit is started before the expiration of the five-year period, the records shall be retained until litigation, claims, or audit findings involving the records have been resolved. The Operator shall provide the records to the Director and appropriate law enforcement agencies on request consistent with the authorization prescribed in The Bank Secrecy Act of 1970, 31 U.S.C 5311, and applicable regulations.

(2) Provide written notice to the Director as soon as the Operator becomes aware of a compliance review that is conducted by the Internal Revenue Service under The Bank Secrecy Act of 1970, 31 U.S.C 5311, and involves or impacts the Operator. The Operator shall provide a copy of the compliance review report or the equivalent to the Director within 10 Days after the receipt of the report by the Operator.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-016
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025; June 22, 2024.

24 NCAC 06A .0417 Anti-Money Laundering Monitoring {#sec-24-ncac-06a-.0417 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0417}

The Internal Controls shall implement anti-money laundering procedures and policies that adequately address the risks posed by Sports Wagering or Pari-Mutuel Wagering for the potential of money laundering and terrorist financing. At a minimum, the anti-money laundering procedures and policies shall provide for:

(1) controls to assure ongoing compliance with the local anti-money laundering regulations and standards observed by the Commission;

(2) up to date training of employees, including but not limited to contractors, affiliates, and similar personnel, in the identification of unusual or suspicious transactions;

(3) assigning an Individual or Individuals to be responsible for areas of anti-money laundering by the Operator including reporting unusual or suspicious transactions;

(4) use of automated data processing systems to aid in assuring compliance; and

(5) periodic independent tests for compliance with a scope and frequency as required by the Commission. Logs of tests shall be maintained for five years.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-017
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0418 Integrity Monitoring and Suspicious Behavior {#sec-24-ncac-06a-.0418 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0418}

(a) An Operator shall implement and maintain an effective Integrity Monitoring system. This solution may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a Supplier.

(b) The Internal Controls shall include provisions for an Operator, or an Integrity Monitoring Supplier acting on an Operator's behalf and direction, to report to the Director as soon as practicable, but in no event longer than 72 hours after discovery:

(1) information regarding irregularities in volume or changes in odds identified as Abnormal Wagering Activity;

(2) information relating to the following which shall also be reported to the relevant Sports Governing Body, racing regulatory body, or equivalent:

(A) Abnormal Wagering Activities or other patterns that may indicate a concern with the integrity of a Wagering Event or Events;

(B) potential breaches of the internal rules and codes of conduct pertaining to Wagering of a relevant Sports Governing Body, racing regulatory body, or the equivalent, to the extent the Operator has actual knowledge of the potential breach; and

(C) other conduct that corrupts a Wagering outcome of a Wagering Event or events for purposes of financial gain, including Event Corruption; and

(3) information relating to Suspicious or Illegal Wagering Activities, including the use of funds derived from illegal activity, the placement of Wagers to conceal or launder funds derived from illegal activity, the use of agents to place Wagers, and the use of false identification in placing Wagers.

(c) An Operator shall maintain the confidentiality of information provided by a Sports Governing Body, racing regulatory body, or the equivalent for purposes of investigating or preventing the conduct described in Paragraph (b) of this Rule, unless disclosure is required by the Act, the Commission, or other law or court order, or unless the Sports Governing Body, racing regulatory body, or equivalent consents to disclosure.

(d) An Operator receiving a report of Suspicious or Illegal Wagering Activity shall be permitted to suspend Wagering on Wagering Events or Wager Types related to the report and may place a hold on suspicious Wagers while investigating, but may only cancel or void Wagers related to the report after receiving approval from the Commission or Director.

(e) On request by the Commission or Director and following reasonable notice, an Operator or an Integrity Monitoring Supplier acting on an Operator's behalf and direction shall provide remote, read-only access and the required software and hardware for the Commission to evaluate or monitor the systems used for Wagering. If requested, the Operator shall provide the Commission with remote access or other approved mechanism that shall provide at a minimum:

(1) all reports of Abnormal Wagering Activity;

(2) if the Abnormal Wagering Activity was subsequently determined to be Suspicious or Illegal Wagering Activity;

(3) all reports considered at the outset to be Suspicious or Illegal Wagering Activity; and

(4) the actions taken by the Operator according to its Integrity Monitoring system.

(f) Nothing in this Rule shall require an Operator to provide information that is prohibited from being shared pursuant to federal, state, local law, or regulation, including, but not limited to, laws and regulations relating to privacy and Personal Information.

(g) An Operator shall maintain records of Integrity Monitoring services and activities, including reports and Suspicious or Illegal Wagering Activity and supporting documentation, for a minimum of five years after a Wagering Event occurs or for a longer period required by law for inspection by agents or officials of the State or federal government. If a litigation, claim, or audit is started before the expiration of the five-year period, the records shall be retained until litigation, claims, or audit findings involving the records have been resolved.

(h) The Operator shall disclose these records to the Commission on request.

(i) The Commission may require an Operator to provide access to hardware or software to the Commission, or to an Independent Testing Laboratory, for evaluation of its Wagering offering or to conduct further monitoring of Wagering data.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-018
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0419 Data Security {#sec-24-ncac-06a-.0419 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0419}

The Internal Controls shall ensure that an Operator maintains the security and confidentiality of Wagering data, Player data, Personal Information, financial information, and other confidential information, including information provided by a Sports Governing Body, racing regulatory body, or the equivalent, from unauthorized access and dissemination except as otherwise authorized by the Act and these Rules. Consistent with federal law, nothing in this Rule shall in and of itself preclude the use of Internet or cloud-based hosting.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-019
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0420 Personal Information Security {#sec-24-ncac-06a-.0420 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0420}

(a) Information an Operator obtains with respect to the creation and maintenance of a Wagering Account, including Personal Information and authentication credentials, shall be collected in compliance with the Operator's privacy policies set forth in its Internal Controls; local privacy regulations; applicable state and federal law; and standards enforced by the Commission or Director. Both Personal Information and the Wagering Account funds shall be considered to be critical assets for risk assessment.

(b) No employee or agent of the Operator shall divulge to any Person Personal Information or Confidential Player Information, information about the placing of a Wager, or other Sensitive Information related to the operation of the Operator without the consent of the Player, except as required by this Rule, the Commission, and as otherwise required or allowed by state or federal law. By way of illustration, an Operator may obtain consent from the Player via agreement to the Operator's Privacy Policy or other similar means.

(c) The Operator shall implement procedures for the security and sharing of Personal Information, information about funds in a Wagering Account, and other Sensitive Information as required by the Commission, including, but not limited to the:

(1) designation and identification of one or more employees, including but not limited to contractors or other personnel, having primary responsibility for the design, implementation, and ongoing evaluation of these procedures and practices;

(2) procedures to be used to determine the nature and scope of information collected, the locations and manner in which this information is stored, and the storage devices on which this information may be recorded for purposes of storage or transfer;

(3) measures to be used to protect information from unauthorized access; and

(4) procedures to be used if a breach of data security has occurred, including required notification to the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-020
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0421 Disputes Pertaining to Wagering {#sec-24-ncac-06a-.0421 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0421}

(a) The Operator's Internal Controls shall set forth its procedures for receiving, investigating, responding to and reporting on disputes submitted to it by Players.

(b) An Operator shall include on their websites, mobile applications, and if applicable, within the Wagering Facility, a clear mechanism to inform Players of their right to submit a dispute against the Operator, including:

(1) information explaining how to submit a dispute to the Operator;

(2) how the Operator seeks to respond to or resolve the dispute submitted by the Player; and

(3) how the Player may submit to the Commission a report of their dispute.

(c) When a Player submits a dispute to the Operator, the Operator shall immediately create a written dispute report, setting out the:

(1) name of the Player or the Player's email address;

(2) nature of the dispute asserted;

(3) name of the Persons against whom the dispute was made, including employees or contractors;

(4) date and time of the purported conduct or incident giving rise to the dispute;

(5) date the Player submitted the dispute; and

(6) the nature of relief or action sought by the Player and, if applicable, the action taken or proposed to be taken by the Operator to address the dispute.

(d) An Operator shall investigate and attempt to resolve disputes with the Player.

(1) An Operator shall respond to disputes in writing within 10 Days or may seek an extension of time from the Director not to exceed 10 Days by providing information about why a response cannot be provided within that time period.

(2) If the Operator will not grant or provide the Player the relief requested to resolve the dispute, then the Operator shall state in writing and with specificity the reasons why the requested relief or action will not be provided.

(3) If an Operator's response to a dispute is that more information is needed to address the dispute, the Operator shall provide specific information to the Player about the form and nature of the needed information. When the Player provides the Operator additional information, the Operator shall provide to the Player any further response within seven Days.

(4) In its written response to the dispute asserted by the Player, the Operator shall advise the Player of their right to submit the dispute to the Commission in the form and manner prescribed by the Commission or Director.

(e) Unless otherwise directed by the Commission, for disputes related to Wagering Accounts, settlement of Wagers, or activity that is contrary to the law related to Wagering that cannot be resolved to the satisfaction of the Player, the Operator shall promptly notify the Director of the dispute, including all information submitted by the Player and the Operator's response, along with other pertinent information and documentation.

(f) On receipt of a dispute from a Player or notification of an unresolved dispute from an Operator, the Director may investigate as they consider to be appropriate and may direct an Operator to take corrective action the Commission or Director considers appropriate, consistent with law and these Rules.

(g) Disputes received by an Operator from a Player and the Operator's responses to disputes, including internal records such as dispute reports, shall be retained for five years thereafter or for a longer period required by law for inspection by agents or officials of the State or federal government.

(1) If a litigation, claim, or audit is started before the expiration of the five-year period, the records shall be retained until litigation, claims or audit findings involving the records have been resolved.

(2) The Operator shall produce these records to the Commission or Director within 10 Days of a request by the Commission or Director or may seek an extension of time in writing from the Director not to exceed 10 Days by providing information about why the requested records cannot be provided within that time period and identifying when these records will be produced.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-021
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025; June 22, 2024.

24 NCAC 06A .0422 Prohibition of Credit Extension {#sec-24-ncac-06a-.0422 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0422}

(a) The Internal Controls shall include controls to prohibit the Operator from accepting a Wager or deposit of funds into a Wagering Account that is derived from the extension of credit to a Player by an Operator's Affiliates or agents. For purposes of this Rule, credit shall not be considered to have been extended when, although funds have been deposited into a Wagering Account, the Operator is awaiting actual receipt of these funds in the ordinary course of business.

(b) An Operator's Internal Controls shall ensure the Operator and its agents do not advertise or market to Players (i) small amount credit contracts; (ii) short-term cash loans secured by a personal check held for future deposit or electronic access to a Player's bank account; or (iii) any loan or credit product that does not comply with G.S. 53-173.

(c) An Operator's Internal Controls shall ensure that neither Operator nor its agents refer a Player to a credit provider to finance Wagering Activity.

(d) Internal Controls shall prohibit an Operator from providing Personal Information related to a Player to a credit provider.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-022
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0423 Ineligible Persons {#sec-24-ncac-06a-.0423 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0423}

(a) The Internal Controls shall include commercially and technologically reasonable measures to prevent access to Sports Wagering or Pari-Mutuel Wagering by an Ineligible Person.

(b) If an Operator detects, or is notified of, information tending to indicate that an Individual may be an Ineligible Person and may have engaged or is engaging in Sports Wagering or Pari-Mutuel Wagering, the Operator shall use reasonable measures to verify whether the Individual is an Ineligible Person.

(c) If the Operator establishes, by reasonable measures, that the Individual is an Ineligible Person, the Operator shall cancel any Wager and confiscate the wagered funds. Internal Controls shall set forth the Operator's policies and procedures with respect to account of an Ineligible Person.

(d) If the Operator cannot establish, by reasonable measures, that the Individual is an Ineligible Person, then the Individual is presumed to not be an Ineligible Person for the purposes of this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-023
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

(a) The Internal Controls shall ensure that an Operator submits an Ineligible Person Report to the Director each month reporting the following information for the previous month, as applicable:

(1) the number of Ineligible Persons found in a Wagering Facility;

(2) the number of Ineligible Persons found who made a Wager or attempted to make a Wager; and

(3) the number of Ineligible Persons referred to a law enforcement authority by the Operator.

(b) If an Operator does not identify or encounter any reportable activity with respect to Ineligible Persons, then it shall affirmatively state so in the report.

(c) In making such report, the Operator may create a custom submission or utilize the form provided by the Director. The Director shall establish deadlines for report submissions.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-024
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0425 Wagering Reports of Operators {#sec-24-ncac-06a-.0425 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0425}

(a) The Internal Controls shall detail the Operator's ability to prepare reports for Wagering Activities as required by the Commission including reports detailing, as applicable:

(1) for Sports Wagering, the Gross Wagering Revenue, as defined by G.S. 18C-901(7);

(2) for Pari-Mutuel Wagering associated with a Wagering Account, the total Wagers placed by residents of this State;

(3) for Pari-Mutuel Wagering not associated with a Wagering Account, the total Wagers placed within a Wagering Facility;

(4) Wagering liability and payouts; and

(5) other reports required by the Commission.

(b) The Operator shall timely file with the Commission additional reports required by the Act or by Rules prescribed by the Commission.

(c) The Operator shall provide all data and reports required by the Commission or the Director in the report format prescribed.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-025
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0426 Access to Wagering Data and Records by Commission or the Department of Revenue {#sec-24-ncac-06a-.0426 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0426}

(a) The Operator's Wagering data and records concerning its Wagering operation in the State shall be subject to inspection, review, and audit by the Commission staff, as assigned by the Director, or by the Department of Revenue.

(b) The Internal Controls shall detail the Operator's controls to assure that all Wagering data and records concerning its Wagering operation that the Commission requires to be maintained under the Act and these Rules are appropriately segregated and controlled to prevent unauthorized access.

(c) The Operator shall provide the Commission or the Department of Revenue with access to the Wagering data and records, on request and with reasonable notice.

(d) The Operator shall deliver all Wagering data and records requested by the Commission or the Department of Revenue either by report or data file in the form and frequency required by the Commission or the Department of Revenue. In lieu of providing copies of such information, the Operator may provide the Commission or the Department of Revenue timely remote, electronic access to the Operator's records or information.

(e) The Operator shall retain the Wagering data and records for a minimum of five years or for a longer period required by law for inspection by agents or officials of the State or federal government. If a litigation, claim, or audit is started before the expiration of the five-year period, the records shall be retained until litigation, claims, or audit findings involving the records have been resolved.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-026
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0427 Independent Audit of Internal Controls {#sec-24-ncac-06a-.0427 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0427}

(a) The Operator shall have its Internal Controls independently audited at least once every two years with the results documented in a written report. For Sports Wagering, this includes Internal Controls conducted by other Responsible Parties on behalf of the Operator. Reports shall be maintained and available to the Commission.

(b) These independent audits may be conducted by the Commission, or a third-party contractor approved by the Commission. The Commission may, in its discretion, allow for an internal audit group or board within the Operator or parent company of the Operator, which is independent of the Operator, to serve as a third-party contractor for use in completing this audit.

(c) The Commission or a third-party auditing contractor shall be responsible for auditing the Operator's compliance with the Act and these Rules, the Internal Controls, and other applicable rules, regulations, or procedures.

(d) Documentation, including checklists, programs, reports, corrective actions, and other items, shall be prepared to evidence independent audit work performed as it relates to the requirements of this Rule, including instances of noncompliance.

(e) Independent audit reports shall include objectives, procedures and scope, findings and conclusions, and recommendations.

(f) An Authorized Representative of Operator's management shall be required to respond in writing to the independent audit findings and the stated corrective measures to be taken to avoid recurrence of the audit exception or finding. These management responses shall be included in the final independent audit report.

(g) Follow-up observation and examinations shall be performed to verify that corrective actions have been taken regarding all instances of noncompliance cited by the independent audits, or by the Commission. The verification shall be performed within six months following the preliminary findings indicating audit exception are presented to the Operator.

(h) It is acceptable to leverage the results of prior audits conducted within the audit period by the same third-party contractor in another Wagering jurisdiction. This leveraging shall be noted in the audit report. This leveraging does not include Internal Controls unique to the State, which will require new audits.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1D-027
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0428 Timely Response to Formal Letter of Inquiry {#sec-24-ncac-06a-.0428 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0428}

(a) The Commission, through its legal counsel or other staff, may send a Responsible Party, Key Person, or applicant

a formal letter of inquiry requesting a response. The Letter of Inquiry, or attachments thereto, shall set forth the subject

matter of the inquiry investigated. The response shall include:

(1) a disclosure of all requested information; and

(2) copies of all requested documents.

(b) The Commission or its agent may identify a deadline for the recipient of the formal letter of inquiry to provide a

response. If no date is identified, then a complete written response is required within 10 Days of receipt.

History

Authority G.S. 18C-114(a)(14)
Eff. June 22, 2024.

24 NCAC 06A .0501 Wagering Rules {#sec-24-ncac-06a-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0501}

(a) The Operator shall adopt comprehensive Wagering Rules, which shall be approved by the Director. The Wagering Rules, together with other information the Director considers appropriate, shall be conspicuously displayed on the Operator's websites, mobile applications, and if applicable, within the Wagering Facility. Copies shall be made readily available to Individuals and Players.

(b) The Operator shall not implement changes or modifications of the practices, procedures, or representations on which the approval was based without the prior written approval of the Director.

(c) The Internal Controls shall ensure that the Operator keeps a log of any changes to the Wagering Rules for a period of five years.

(d) Failure by an Operator to act in accordance with the Wagering Rules may result in monetary penalties, Suspension or Revocation of its License, civil damages, injunctive relief, or criminal liability.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1E-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0502 Acceptance of Wagers {#sec-24-ncac-06a-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0502}

(a) Wagers shall be placed through a Wagering Account or within a Wagering Facility.

(b) Available Wagers shall be displayed to Players and include the lines or odds, the Wager Type, and Wagering Event on which Wagers are being accepted.

(c) An Operator may not set lines or odds or offer Wagering propositions designed to ensure that a Player will win a Wager or a series of Wagers, unless the lines, odds, or Wagering propositions are offered in connection with a promotion or bonus conducted in accordance with Rule .0503 of this Subchapter. An Operator may not accept a Wager on a Wagering Event unless a Wagering proposition is posted on the Operator's websites, mobile applications, or if applicable, within the Wagering Facility.

(d) Wagers placed through a Wagering Account or within a Wagering Facility may only be made by Players using approved methods for funding Wagering Accounts pursuant to Rule .0708 of this Subchapter.

(e) The Operator shall debit the amount Wagered by a Player from their Wagering Account or Wagering Kiosk balance. Wagers shall not be accepted in an amount in excess of an Account balance or available funds on the Wagering Kiosk.

(f) No Operator shall accept a Wager from a Person through the use of the Wagering Account of or for another Person. No Operator shall knowingly allow a Person to make a Wager utilizing the Wagering Account of another Person.

(g) An Operator shall file with the Commission, in a manner and form developed by the Commission, a report of an error that occurs in offering a Wagering Event or Wager or if an unapproved event or Wager Type is offered to the public.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1E-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025; June 22, 2024.

24 NCAC 06A .0503 Promotional or Bonus Wagering {#sec-24-ncac-06a-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0503}

(a) An Operator may conduct promotions or bonuses in accordance with this Rule. Procedures for the issuance, acceptance, and tracking of promotions or bonuses shall be defined in the Internal Controls.

(b) An Operator shall maintain a record of promotions or bonuses related to Sports Wagering or Pari-Mutuel Wagering to facilitate the Commission's tracking of promotional or bonus activity, which shall address the:

(1) unique identification for the promotion or bonus;

(2) date and time the promotion or bonus was or is scheduled to be available;

(3) current balance for promotional or bonus awards;

(4) total amount of promotional or bonus awards issued;

(5) total amount of promotional or bonus awards redeemed;

(6) total amount of promotional or bonus awards expired;

(7) total amount of promotional or bonus award adjustments;

(8) current status of the promotion or bonus; and

(9) date and time the promotion or bonus was or is scheduled to discontinue.

(c) All promotion or bonus rules shall be full, accurate, concise, transparent, and shall not contain misleading information. Promotion or bonus rules shall be accessible by the Player and provide unambiguous notice of the:

(1) date and time the promotion or bonus is active and expires;

(2) rules of play;

(3) nature and value of prizes or awards;

(4) eligibility restrictions or limitations;

(5) Wagering and redemption requirements, including limitations;

(6) how the Player is notified when they have received an award;

(7) order in which funds are used for Wagers;

(8) eligible events or Wagers; and

(9) cancellation requirements.

(d) Promotions or bonuses shall not be described as:

(1) "free" unless those promotions or bonuses are in fact free and without any cost to the Player. If the Player has to risk or lose their own money or if there are conditions attached to the Player's own money, the promotion or bonus rules shall disclose those terms and may not be described as free; or

(2) "risk-free" if those promotions or bonuses require the Player to incur a loss or risk the Player's own money to use or withdraw Winnings from the purportedly risk-free Wager.

(e) An Operator shall provide a clear and conspicuous method for a Player to cancel their participation in a promotion or bonus that uses restricted Wagering credits that cannot be cashed out until a Wagering requirement or other restrictions associated with the credits is met. The Operator's cancelation method shall include the following:

(1) On a request for cancellation, the Operator shall inform the Player of the amount of unrestricted funds that will be returned after cancellation and the value of restricted Wagering credits that will be removed from the Wagering Account.

(2) If a Player elects to proceed with cancellation, unrestricted funds remaining in a Player's Wagering Account shall be returned according to the rules of the applicable promotion or bonus.

(f) Once a Player has met the terms of a promotion or bonus, an Operator shall not limit Winnings earned while participating in the promotion or bonus.

(g) No promotion or bonus offer available to new Players may contain terms that delay full implementation of the ability to redeem the promotion or bonus for a period of longer than 30 Days, or require the Player to maintain an Account with the Operator for longer than 30 Days to be eligible for the promotion or bonus, regardless of the amount of Wagering in that period by the Player. Nothing this Paragraph shall prohibit a promotion or bonus offer that extends for a period of longer than 30 Days so long as such promotion or bonus is (i) available to all North Carolina Players that maintain an Account with the applicable Operator and (ii) not contingent upon the Player establishing a new Wagering Account.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1E-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0601 Responsible Gaming Plan {#sec-24-ncac-06a-.0601 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0601}

(a) At least 30 Days prior to conducting Sports Wagering or Pari-Mutuel Wagering in North Carolina, Operators shall submit a responsible gaming plan to the Commission that shall include information related to the posting of materials related to problem gambling, resources to be made available to Players expressing concerns about problem gambling, responsible gaming limits, and Voluntary Exclusion Programs. This plan shall be approved by the Director prior to authorizing the Operator to operate within the State. The Operator will provide an updated plan annually every year thereafter.

(b) The responsible gaming plan shall include, at a minimum:

(1) the goals of the plan, procedures, and deadlines for implementation of the plan;

(2) the identification of the Individuals who will be responsible for the implementation, monitoring, and maintenance of the plan;

(3) the Operator's plan for creating and disseminating promotional material to educate Players about compulsive and problem gambling and to inform them about treatment services available to compulsive and problem gamblers and their families. The Operator shall provide examples of the materials to be used as part of its plan and a description of how the material will be disseminated;

(4) a copy of the employee training programs as part of comprehensive employee trainings on hire and regularly thereafter on the nature of responsible gaming and the role of employees in responding to circumstances in which Individuals present signs of problem gambling;

(5) the duties and responsibilities of the employees designated to implement or participate in the plan;

(6) procedures to assess, prevent, and address problem gambling by Players, including;

(A) identifying Players with suspected or known problem gambling behavior;

(B) preventing Wagering by Ineligible Persons;

(7) commitments to participate in responsible gaming initiatives, including, but not limited to:

(A) participating in responsible gaming committees;

(B) providing additional education and awareness for identified vulnerable populations;

(8) procedures for advertising and marketing, which shall comply with applicable standards of socially responsible advertising, including applicable state and federal laws and standards on this subject;

(9) annual reporting on responsible gaming activities; and

(10) other policies and procedures as determined by the Commission to prevent problem gambling and encourage responsible gaming.

(c) In approving the responsible gaming plan described in Paragraph (a) of this Rule, the Commission shall consider industry standards for responsible gaming and other relevant factors.

(d) If an Operator proposes to amend its written plan prior to the Commission's annual review, the Operator shall submit a proposed amended written plan for Commission approval prior to implementing any amendments. The Operator shall not implement the amended written plan until the Director approves the amended written plan. While the Director reviews the amended written plan, the Operator shall continue to implement the written plan most recently approved.

(e) At least every five years, the Operator shall ensure that the Operator's responsible gaming plan is independently reviewed by a third-party approved by the Director, which review shall comply with industry standards. The cost of the independent review is the responsibility of the Operator.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0602 Voluntary Exclusion Program {#sec-24-ncac-06a-.0602 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0602}

(a) The Commission operates a Voluntary Exclusion Program under which Individuals are excluded from establishing a Wagering Account or placing Wagers for a set period, up to and including that Individual's lifetime. Information regarding such Individuals is collected and securely shared with authorized recipients in order to effectuate G.S. 18C-922.

(b) An Individual may request to be placed in the Voluntary Exclusion Program by completing a form prescribed by the Commission and providing the following information:

(1) full name and any aliases or nicknames;

(2) date of birth;

(3) current residential address;

(4) email addresses;

(5) telephone numbers;

(6) last four digits of Social Security Number or tax identification number, when provided voluntarily in accordance with Section 7 of the Privacy Act of 1974, 5 U.S.C. 552a, or an equivalent government identification number for a noncitizen, for example, a passport or taxpayer identification number, if available;

(7) height, weight, gender, hair color, eye color, and any other physical characteristic that may assist in the identification of the Individual;

(8) the requested period of exclusion at one year, three years, five years, or lifetime; and

(9) other relevant information as required by the Commission.

(c) The Individual seeking placement in the Voluntary Exclusion Program shall agree to make certain sworn acknowledgements, which are binding upon the Individual. These include, but are not limited to, the following:

(1) an acknowledgment that the Individual in the Voluntary Exclusion Program shall be prohibited from participating in any form of legalized Wagering in the State, excluding federally-recognized tribal lands, and is prohibited from collecting any Winnings or recovering any losses resulting from violation of the restrictions to which such Individual has agreed;

(2) an acknowledgment that the Individual in the Voluntary Exclusion Program may be refused entry or ejected from the Wagering Facility;

(3) an acknowledgement from the Individual that they will not engage in Wagering in North Carolina for the duration of the exclusion period and that it is the Individual's responsibility to refrain from doing so;

(4) an acknowledgment that the Commission will share a list of participants in the Voluntary Exclusion Program with Operators in the State and that such Operators, pursuant to their own Internal Controls, may extend the exclusion of the Individual to Wagering offerings that the Operator and its Affiliates make available outside of North Carolina;

(5) an acknowledgement that the Commission may securely share the Voluntary Exclusion Program participant list with other domestic Wagering jurisdictions resulting in placement on the lists of such other jurisdictions, and may share such portion of the list with designated agents as may be necessary for the purpose of administering Voluntary Exclusion Programs;

(6) an acknowledgment that the Individual requesting placement in the Voluntary Exclusion Program shall notify the Commission within fourteen Days if the Individual's address or other contact information changes; and

(7) an acknowledgment that the Individual will be removed from the Voluntary Exclusion Program upon expiration of the period of exclusion set at initial enrollment into the program.

(d) An Individual requesting placement in the Voluntary Exclusion Program shall execute a waiver and release that shall release and forever discharge the State of North Carolina, the Commission, and the Commission's employees and agents from any liability to the Individual requesting exclusion, as applicable, and the Individual's heirs, administrators, executors, and assigns for any harm, monetary or otherwise, that may arise out of or by reason of any act or omission relating to the request for exclusion or request for removal from the Voluntary Exclusion Program, including, but not limited to:

(1) the processing or enforcement of the request for exclusion or request for removal from the Voluntary Exclusion Program;

(2) the failure to withhold Wagering privileges from or restore Wagering privileges to a Voluntarily Excluded Person;

(3) permitting a Voluntarily Excluded Person to engage in Wagering Activity while in the Voluntary Exclusion Program; and

(4) disclosure of the information contained in the Voluntary Exclusion Program, except for a willfully unlawful disclosure of such information.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0603 Eligibility and Petition for Removal from Voluntary Exclusion Program Before Completion of Exclusion Period {#sec-24-ncac-06a-.0603 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0603}

(a) To be eligible for removal from the Voluntary Exclusion Program, a Voluntarily Excluded Person shall participate in a reinstatement session with a designated agent of the Commission. The reinstatement session shall include a review of the risks and responsibilities of Wagering, budget setting, and a review of problem gambling resources, unless the Individual declines such a review.

(b) After completion of the reinstatement session, the Voluntarily Excluded Person may submit a petition to the Director on a form provided by the Commission and available from the designated agent.

(c) The Commission's designated agent shall verify on the face of the petition that the Voluntarily Excluded Person has completed a reinstatement session. Thereafter, the Commission or the Director shall reinstate the Voluntarily Excluded Person after the completion of a 30 Day waiting period.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0604 involuntary exclusion {#sec-24-ncac-06a-.0604 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0604}

(a) When the Commission is notified of an Individual who has been adjudicated by law as prohibited from engaging in Wagering in the State, the Individual shall be excluded from establishing or maintaining a Wagering Account or placing Wagers for a set period, up to and including that Individual's lifetime.

(b) The Commission shall attempt to provide notice of exclusion to an Involuntarily Excluded Person.

(c) An Involuntarily Excluded Person who wishes to contest their involuntary exclusion may request in writing an informal review by the Commission. This request for review shall fully state the reasons the Individual believes the involuntary exclusion was not supported by statute, Rule, procedure, or practice. The Commission's conclusion shall be final and binding on parties.

(d) Nothing in this Rule shall prohibit an Operator from preventing Individuals from entering its Wagering Facility.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0605 Commission Maintenance of Exclusion Lists {#sec-24-ncac-06a-.0605 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0605}

(a) The Commission shall maintain lists of all Voluntarily Excluded Persons and Involuntarily Excluded Persons, including the information provided pursuant to Rule .0602 of this Subchapter and any new or updated information provided by the Individual or the Commission.

(b) The Commission shall make the exclusion lists available to each Licensed Operator for secure retrieval.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0606 Operator Duties {#sec-24-ncac-06a-.0606 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0606}

(a) The Operator shall maintain its own copies of the exclusion lists and shall establish Internal Controls to ensure that its copies of the lists are kept up to date. The Operator shall obtain the lists from the Commission in a secure and confidential manner, such as via SFTP, at minimum every 72 hours. The lists may only be accessed by Individuals authorized in accordance with the Internal Controls.

(b) The Operator shall establish and implement Internal Controls to ensure that it, at minimum, undertakes commercially reasonable efforts to:

(1) Prevent Voluntarily Excluded Persons and Involuntarily Excluded Persons from opening a new Wagering Account.

(2) Identify and suspend any Wagering Accounts of Voluntarily Excluded Persons and Involuntarily Excluded Persons.

(3) Seize any Winnings that accrue after an Individual's Exclusion.

(4) Eject or refuse Voluntarily Excluded Persons and Involuntarily Excluded Persons from entry into a Wagering Facility.

(5) Refund any remaining Account balances to Voluntarily Excluded Persons and Involuntarily Excluded Persons provided the Operator acknowledges that the funds have cleared.

(6) Ensure that Voluntarily Excluded Persons and Involuntarily Excluded Persons do not receive targeted or personalized mailings, Advertisements, marketing materials, promotions, Player club materials, reward materials, or other promotional materials or incentives related to Wagering via any channel, including, but not limited to, U.S. Mail, email, text message, push notification, social media messaging, or phone. For purposes of this Subparagraph, "targeted" means that materials or messages are sent directly to an address, email address, telephone number, or other contact associated with the excluded Individual on their application or in the Operator's demographic record or files.

(7) Notify the Director in a manner prescribed by the Director if a Voluntarily Excluded Person or an Involuntarily Excluded Person is found in its Wagering Facility or attempting to place a Wager.

(8) In cooperation with the Commission, and where reasonably possible, determine the amount Wagered and lost by an Individual identified as a Voluntarily Excluded Person or an Involuntarily Excluded Person.

(9) If a Player has pending Wagers prior to being excluded, handle these Wagers in accordance with the terms and conditions.

(c) At the request of the Director or Commission, Operators shall identify the parties or entities with whom it shares Voluntarily Excluded Person and Involuntarily Excluded Person data, and the technical methods it uses to share the information securely.

(d) Winnings seized from Voluntarily Excluded Persons and Involuntarily Excluded Persons and amounts Wagered and lost by such Persons shall be identified and collected by the Operator and conveyed to the Commission to be used solely to support gambling addiction education and treatment programs.

(e) Nothing in the Act or these Rules shall be construed to preclude an Operator from seeking the payment of a debt accrued by an Individual during a period when the Individual was not participating in the Voluntary Exclusion Program.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0607 Limitations on Use of Excluded Person's Data and Personal Information {#sec-24-ncac-06a-.0607 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0607}

(a) Personal Information furnished to or obtained by the Commission pursuant to rules pertaining to the Voluntary Exclusion Program shall be deemed confidential and not be disclosed unless necessary to implement the Exclusion of Voluntarily Excluded Persons and Involuntarily Excluded Persons, or except in accordance with this Chapter, as required by law, or required by a validly issued court order.

(1) The Commission or Director may release periodically to the public demographics and general information regarding Voluntarily Excluded Persons and Involuntarily Excluded Persons, such as the total number of Persons on the list and anonymized, aggregate demographic information.

(2) The Commission or Director may make selected data available, upon request, for the limited purpose of assisting in the proper administration and enhancement of problem gambling treatment or responsible gaming programs.

(b) Any Responsible Party, its employees, or agents that receive any information pursuant to G.S. 18C-922 shall use such information solely for the purpose of the exclusion of Voluntarily Excluded Persons and Involuntarily Excluded Persons, and not for any commercial purpose.

(c) The names and Personal Information of Voluntarily Excluded Persons and Involuntarily Excluded Persons shall not be subject to disclosure under the North Carolina Public Records Law, G.S. 132-1.

(d) Except as provided in these Rules, no employee or agent of the Commission or any Operator, Service Provider, Supplier, or third-party contractor affiliated with any of the previous parties shall disclose the name of or any information about any Voluntarily Excluded Persons and Involuntarily Excluded Persons to anyone other than authorized employees and agents whose duties and functions require access to such information.

(e) It shall be permissible for an Operator, or an employee or agent thereof, to disclose the names of Voluntarily Excluded Persons and Involuntarily Excluded Persons to a Service Provider or Supplier for the purpose of enabling such Service Provider or Supplier , or third-party contractor affiliated with any of the previous parties to properly administer the lists or to remove the excluded Persons from a targeted or personalized mail, advertising or promotion, marketing, or event notifications to be made by or on the behalf of the Operator.

(1) The entity to whom such names are disclosed shall be prohibited from distributing or disclosing the names to the public or to any other party and shall be required to ensure the names are not disclosed.

(2) A Service Provider or Supplier, or third-party contractor affiliated with any of the previous parties that obtains the names of Voluntarily Excluded Persons and Involuntarily Excluded Persons from an Operator shall be permitted to use the list solely to exclude names or addresses from a marketing campaign on behalf of the Operator. Such company may not use the names for any other type of marketing or for any other purpose whatsoever.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0608 Wagering Facilities and Excluded Persons {#sec-24-ncac-06a-.0608 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0608}

For Wagering Facilities, the prohibition against allowing Voluntarily Excluded Persons and Involuntarily Excluded Persons to be present where Wagering Activities are conducted shall not apply to an excluded Person if:

(1) the excluded Person is carrying out the duties of employment or incidental activities related to employment;

(2) the Operator or its agent has received prior notice about the excluded Person's planned presence on-site, unless it was impracticable for such notice to have been provided;

(3) access to areas where Wagering Activity is conducted is limited to the time necessary to complete the excluded Person's assigned duties; and

(4) the excluded Person does not otherwise engage in Wagering Activities.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1F-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0701 Wagering Account Requirements {#sec-24-ncac-06a-.0701 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0701}

(a) The Operator shall adopt Internal Controls related to Account registration. An Individual shall have an established Wagering Account with the Operator to participate in Wagering over the Internet. Nothing in this Rule shall be interpreted to prohibit the Operator from accepting anonymous Wagers by a Wagering Kiosk or Ticket Writer Station within the Wagering Facility.

(b) A Wagering Account shall only be established in the name of a Registered Player who is a natural person and may not be in the name of a beneficiary, custodian, joint trust, corporation, partnership, or another entity.

(1) the Player's full legal name;

(2) the Player's date of birth;

(3) the Player's principal residential address, a post office box is not acceptable;

(4) the Player's Social Security number, or the last four digits of the Social Security number, or an equivalent government identification number for a noncitizen, for example, a passport or taxpayer identification number; and

(5) other information collected from the Player used to verify their identity and to prove the Player is not an Ineligible Person.

(d) During the Wagering Account registration process, the Player shall:

(1) be denied the ability to register for an Account if they submit a birth date which indicates that they are an Underage Person;

(2) if not all fields are "required," be informed on the Account application which information fields are "required," which are not, and what will be the consequences of not filling in the required fields;

(3) agree to the terms and conditions and privacy policies of the Operator, which shall comply with applicable law, including, but not limited to, G.S. 18C-910(i);

(4) consent to the monitoring and recording of the use of their Account by the Operator and the Commission;

(5) affirm that:

(A) the Player meets eligibility requirements for registration; and

(B) the Personal Information the Player is providing to open the Account is accurate; and

(6) authorize the provision of notices and other required communications either through a designated mobile or other interface or to an electronic mail address designated by the Player.

(e) An Operator shall maintain an electronic Player file, which shall include the following for Wagering Accounts, as applicable:

(1) the unique Wagering Account ID and username, if different;

(2) the information indicated in Paragraph (c) of this Rule to register a Player and create the Account;

(3) the date and method of identity verification, including, where applicable, the document number of the government issued identification credential examined and its date of expiration, if applicable. If a government issued identification credential is not required for registration, the electronic record that details the process used to confirm the Player's identity shall be recorded;

(4) the date of Player agreement to the terms and conditions and privacy policies;

(5) previous Wagering Accounts and reason for de-activation;

(6) the date and method from which the Wagering Account was registered;

(7) the date and time a Wagering Account is accessed by an Individual, including IP address;

(8) a history of financial transactions, including deposits, withdrawals, and Account adjustments;

(9) Account details and current balance, including restricted Wagering credits and unrestricted funds. Restricted Wagering credits and unrestricted funds that have a possible expiration shall be maintained separately; and

(10) the current status of the Wagering Account.

(f) The following information maintained as part of the electronic Player file shall be encrypted or hashed to other cryptographic algorithms as allowed by the Director:

(1) the Registered Player's government identification number, or portions thereof;

(2) the Registered Player's previous and current passwords, pins, or other authentication credentials, including biometric information; and

(3) the Registered Player's previous and current debit instrument numbers, debit card numbers, bank account numbers or other personal financial information.

(g) An Operator may allow the Registered Player to update authentication credentials, registration information and the account used for financial transactions. A Multi-Factor Authentication process shall be used for these purposes.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0702 Age and Identity Verification {#sec-24-ncac-06a-.0702 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0702}

(a) The Operator shall put in place and utilize sufficient measures to verify the age and identity of the Registered Player that is necessary for the remote, electronic establishment of Wagering Accounts.

(b) The Operator is responsible for ensuring that only eligible Persons may create a Wagering Account, deposit funds, or participate in Sports Wagering or Pari-Mutuel Wagering through such Account. The Operator shall deny the ability to create a Wagering Account, deposit funds, or participate in Sports Wagering or Pari-Mutuel Wagering to an Ineligible Person. This Rule shall not be construed to prevent an Individual from creating a Wagering Account and depositing funds to an Account even if they are prohibited from placing certain wagers.

(c) At the time of Account establishment, the Operator shall use electronic verification using one or more secure online databases, which government or business regularly use to verify and authenticate age and identity, or by examination of government-issued photo identification, or similar identified in the Operator's Internal Controls, and the review of a supplemental, contemporaneous photograph of the Person to verify the Player's name, date of birth, and government identification number, or portions thereof.

(d) The following data shall be verified as an exact match before Players may initiate deposits, withdrawals and Wagering:

(1) the Player's last name;

(2) the Player's date of birth; and

(3) the Player's government identification number or credential, or portions thereof.

(e) Operators shall ensure that reasonable measures to ensure the Person providing the identity information is truly the owner of the identity and that all identity information provided is accurate before a Player may initiate deposits, withdrawals, or Wagering. One of the following options is required:

(1) correctly answer three dynamic knowledge-based questions compiled from public and private data including public records, credit reports, marketing data, and other recorded facts;

(2) verification that the Player's phone number and email address match the information provided by the Player;

(3) valid government issued identification credential;

(4) verification that the Player's device is associated with the user via historical location data and mobile phone identity authentication, or Multi-Factor Authentication; or

(5) other methods approved by the Commission or Director.

(f) The Operator shall refuse to establish an Account if it is found that the information supplied is untrue or incomplete.

(g) An Operator shall use commercially available and demonstrable standards to confirm that an Individual attempting to create a Wagering Account is not an Ineligible Person and shall also use commercially available and demonstrable standards to prevent Wagers from being placed by an Ineligible Person.

(h) An Operator shall re-verify a Player's identification after it has or should have reasonable suspicion that the Player's identification may have been compromised.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0703 Limitation to One Account Per Player {#sec-24-ncac-06a-.0703 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0703}

An Individual may not have more than one Wagering Account with an Operator. The Operator shall implement Internal Controls to terminate Accounts of an Individual that establishes or seeks to establish more than one username or more than one Account, whether directly or by use of another Person as proxy. These Internal Controls may allow a Registered Player that establishes or seeks to establish more than one username or more than one Account to retain one Account if the Operator investigates and makes a good-faith determination that the Player's conduct was not intended to obtain a competitive advantage.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0704 Terms and Conditions and Privacy Policies for Wagering Accounts {#sec-24-ncac-06a-.0704 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0704}

(a) All terms and conditions and privacy policies for Wagering Accounts shall be readily accessible to the Player before and after registration and noticed when materially updated beyond grammatical or other minor changes.

(b) All terms and conditions for Wagering Accounts shall address aspects of the Operator, including, but not limited to:

(1) a statement that only Individuals located in the authorized geographic boundaries within the State of North Carolina may place Wagers;

(2) a statement that Ineligible Persons are prohibited from Wagering;

(3) advice to the Player to keep their authentication credentials, including password and username, secure;

(4) all processes for dealing with lost authentication credentials, forced password changes, password strength and other related items as required by the Commission;

(5) full explanation of rules applicable to dormant Wagering Accounts, including the conditions under which an Account is declared dormant and what actions will be undertaken on the Account once this declaration is made;

(6) actions that will be taken on the Player's pending Wagers placed prior to an exclusion or suspension, including the return of Wagers, or settling Wagers, as appropriate;

(7) information about timeframes and limits regarding deposits to or withdrawals from Wagering Accounts, including a clear and concise explanation of fees, if applicable;

(8) statements indicating that the Operator has the right to:

(A) refuse to establish a Wagering Account for what it considers good and sufficient reason;

(B) refuse deposits to or withdrawals from Wagering Accounts for what it considers good and sufficient reason; and

(C) unless there is a pending investigation or Player dispute, suspend or close a Wagering Account at any time pursuant to the terms and conditions between the Operator and the Player; and

(9) statements indicating that the Players are prohibited from:

(A) transferring or selling an Account or Account balance;

(B) using a virtual private network or other technology that may obscure or falsify their physical location;

(D) collusion, cheating, or other unlawful activity.

(c) All privacy policies for Wagering Accounts shall address aspects of the Personal Information protection, including, but not limited to:

(1) the Personal Information required to be collected;

(2) the purpose and legal basis for Personal Information collection and of every processing activity for which consent is being sought;

(3) the period in which the Personal Information is stored, or, if no period can be possibly set, the criteria used to set this;

(4) the conditions under which Personal Information may be disclosed and the categories of third-party entities with whom the Operator shares such data; however, upon written request of the Director or a Registered Player, the Operator shall identify the names of the third-party entities with whom the Operator shares Personal Information;

(5) an affirmation that measures are in place to prevent the unauthorized or unnecessary disclosure of the Personal Information;

(6) the identity and contact details on the Operator who is seeking the consent;

(7) a statement that the Operator will not discriminate against an Individual because the Individual does not consent to the sale of their data;

(8) instructions providing the Player with information about how to opt out of Operator's data collection activities, subject to any exception as required by applicable law or regulation;

(9) a statement that the Operator will honor the individual's request for the Operator to delete or cease use of the Personal Information and other data collected concerning that individual and direct its agents and affiliates to do the same; the Operator may deny an Individual's request to delete or cease use of the Personal Information if maintaining the Personal Information is necessary to:

(A) perform any obligations under these Rules or the General Statutes;

(B) complete the transaction for which the Personal Information was collected, provide a good or service requested by the Individual, or reasonably anticipated within the context of a business's ongoing business relationship with the Individual, or otherwise perform a contract between the business and the Individual;

(C) detect security incidents, protect against malicious, deceptive, fraudulent, or illegal activity; or prosecute those responsible for that activity;

(D) debug to identify and repair errors that impair existing intended functionality;

(E) to enable solely internal uses that are reasonably aligned with the expectations of the consumer based on the consumer's relationship with the business; or

(F) comply with any other legal obligation;

(10) contact information for the Operator's privacy office or officer, or a point of contact at the Operator for privacy-related questions; and

(11) other privacy requirements specified by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0705 Responsible Gaming and Problem Gambling Information {#sec-24-ncac-06a-.0705 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0705}

An Operator shall provide the following Commission-approved responsible gaming and problem gambling information that shall be readily accessible to a Player:

(1) Commission-approved telephone numbers or websites that an Individual may use to obtain information about problem gambling and resources addressing addiction and compulsive behavior and where to seek assistance with these issues;

(2) a notification that underage gambling is a criminal offense and that anyone who facilitates an Underage Person to place a Wager has committed a criminal offense and shall be prohibited from Sports Wagering and Pari-Mutuel Wagering;

(3) a list of the available responsible gaming limits and restrictions that may be invoked by the Player, including a means to initiate a "break" or interruption in play to discourage excessive play, and information on how to invoke those measures;

(4) a link to the Voluntary Exclusion Program and enrollment information;

(5) mechanisms in place for Players to detect unauthorized use of their Wagering Account, including the Player reviewing financial statements against known deposits;

(6) a method for filing a dispute with the Operator; and

(7) a method for filing with the Commission an unresolved dispute after reasonable means to resolve the dispute with the Operator have been exhausted utilizing forms and, in the manner prescribed by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0706 Account Access {#sec-24-ncac-06a-.0706 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0706}

(a) The Operator shall use authentication credentials, including a username, or similar identity indicator, and a password or a secure alternative means to ensure that only the Player has access to the Wagering Account. Allowable authentication credentials are subject to the discretion of the Commission as required. The requirement does not prohibit the option for more than one method of authentication being available for a Player to access their Account.

(b) If the Operator does not recognize the authentication credentials when entered, an explanatory message shall be displayed to the Player which prompts the Player to try again. The error message shall be the same regardless of which authentication credential is incorrect.

(c) Players shall be given the option to use a Multi-Factor Authentication process when accessing their Wagering Account. In addition, a Multi-Factor Authentication process shall be used for the retrieval or reset of a Player's forgotten or lost authentication credentials.

(d) Current Account balance information, including restricted Wagering credits and unrestricted funds, and transaction options shall be available to the Player once authenticated. Restricted Wagering credits and unrestricted funds that have a possible expiration date shall be indicated separately.

(e) The Operator shall support a mechanism that allows for an Account to be locked if suspicious activity is detected, including three consecutive failed access attempts in a 30 minute period. A Multi-Factor Authentication process shall be used for the Account to be unlocked.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0707 Financial Transactions {#sec-24-ncac-06a-.0707 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0707}

The Operator shall provide the Registered Player written confirmation or denial of every financial transaction initiated on Wagering Accounts, including:

(1) the type of transaction, such as a deposit or withdrawal;

(2) the transaction value; and

(3) for denied transactions, a descriptive message, if appropriate and available, as to why the transaction did not complete as initiated.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0708 Account Deposits {#sec-24-ncac-06a-.0708 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0708}

(a) A Wagering Account may be funded using approved methods which shall produce a sufficient audit trail for verification of the source of funds of the Wagers. The Operator's Internal Controls shall include a list of funding methods it intends to offer on its platform with detailed information about the Operator's procedures in place to prevent and investigate money laundering and fraud as it relates to each funding method. The Director may prohibit the use of certain funding methods due to insufficient audit capability, financial or security risk to the consumer, or other reason as provided by the Director. Approved methods for funding Wagering Accounts include:

(1) Cash;

(2) Cash Equivalents converted to Cash;

(3) credit cards and debit cards;

(4) electronic funds transfers including automated clearing house and other electronic methods;

(5) promotional or bonus credits;

(6) Winnings;

(7) adjustments made by the Operator with documented notification to the Player;

(8) a prepaid access instrument, which for purposes of this Rule is a reloadable prepaid account or a reloadable prepaid card, either of which has been verified as being issued to the Player at the time of purchase and is nontransferable; and

(9) other forms of payment approved by the Commission.

(b) The Wagering Account shall be credited for deposits in accordance with the Internal Controls as submitted by the Operator and approved by the Commission.

(c) The Operator shall make commercially reasonable efforts to protect and account for the Registered Player's funds held in a Wagering Account.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0709 Failed Electronic Funds Transfers {#sec-24-ncac-06a-.0709 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0709}

Where financial transactions are conducted through electronic funds transfers, the Operator shall have security measures and Internal Controls to prevent electronic funds transfer fraud. A failed electronic funds transfer attempt is not considered fraudulent if the Registered Player has successfully performed an electronic funds transfer on a previous occasion with no outstanding chargebacks. Otherwise, the Operator shall:

(1) temporarily block the Registered Player's Wagering Account for investigation of fraud after five consecutive failed electronic funds transfer attempts within a 10 minute period; if there is no evidence of fraud, the block may be vacated; and

(2) suspend the Registered Player's Wagering Account after five additional consecutive failed electronic funds transfer attempts within a 10 minute period.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0710 Account Withdrawals {#sec-24-ncac-06a-.0710 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0710}

(a) An Operator shall not restrict the Registered Player from withdrawing the Registered Player's own funds or withdrawing Winnings from Wagers placed using the Registered Player's own funds, whether the Account is open or closed, except as otherwise provided in these Rules, or other applicable state or federal laws.

(b) An Operator shall use a mechanism that may detect and prevent withdrawal activity initiated by a Registered Player that would result in a negative balance of the Wagering Account.

(c) An Operator shall not allow a Wagering Account to be overdrawn unless caused by payment processing issues outside the control of the Operator.

(d) An Operator shall honor the Registered Player's request to withdraw funds within five Days after the request unless the conditions set forth in Paragraph (e) of this Rule are met.

(e) The Operator may decline to honor a Registered Player's request to withdraw funds only if the Operator believes in good faith that the Registered Player engaged in fraudulent conduct, Event Corruption, or other conduct that would put the Operator in violation of the Act and these Rules. In these cases, the Operator shall:

(1) suspend the Registered Player's Wagering Account and provide notice to the Registered Player; and

(2) conduct its investigation in a reasonable and expedient fashion, providing the Registered Player additional written notice of the status of the Wagering Account every fourteenth Day starting from the Day the original notice was provided to the Registered Player.

(f) For purposes of this Rule, a request for withdrawal is considered honored if it is processed by the Operator apart from a delay by a payment processor, debit card issuer, the custodian of a financial account, or ordinary course delays in the U.S. Mail for a mailed check.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0711 Account Adjustments {#sec-24-ncac-06a-.0711 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0711}

All adjustments to Wagering Accounts for amounts of five hundred dollars ($500.00) or less shall be periodically reviewed by supervisory personnel as set forth in the Operator's Internal Controls. Other adjustments shall be authorized by supervisory personnel of the Operator before being entered.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0712 Account Information {#sec-24-ncac-06a-.0712 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0712}

On request of the Registered Player, the Operator shall provide a statement detailing Account activity for the past year, including Wagers, deposit amounts, withdrawal amounts, and bonus or promotion information, including amounts remaining for a pending bonus or promotion, and amounts released to the Registered Player. Upon request, an Operator shall provide to a Registered Player a written Account statement via U.S. Mail or electronic mail.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0713 Responsible Gaming Limits {#sec-24-ncac-06a-.0713 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0713}

(a) An Operator shall allow a Registered Player to limit the amount of player funds that may be deposited into a Wagering Account and spent through such Account.

(1) A deposit limit shall be offered on a daily, weekly, and monthly basis and shall specify the maximum amount of player funds a Registered Player may deposit into their Wagering Account during a particular period.

(2) A Wager limit shall be offered on a daily, weekly, and monthly basis and shall specify the maximum amount of player funds that may be put at risk during a particular period.

(b) Decreases to these limits shall become effective immediately upon being authorized by the Player or at the point in time that was clearly stated to the Registered Player. Increases to these limits shall become effective only after the expiration of the Player's previously authorized time period limit.

(c) An Operator shall allow a Registered Player to block themselves from wagering on the Operator's platform for a period not less than 72 hours and up to a permanent exclusion, as chosen by the Registered Player. For purposes of this Rule, "block" means to prevent a Registered Player from accessing the Operator's platform to place a wager or make a deposit. The Operator shall, at minimum, undertake commercially reasonable efforts to:

(1) prevent Individuals blocked from the Operator's platform from opening a new wagering account or from entering any of the Operator's Wagering Facilities;

(2) refund any remaining Account balances upon request of the Individual blocked from the Operator's platform, provided the Operator acknowledges that the funds have cleared;

(3) ensure that it and its affiliates or agents do not transmit to Individuals blocked from the Operator's platform targeted or personalized mailings, Advertisements, marketing materials, promotions, Player club materials, reward materials, or other promotional materials or incentives related to Wagering via any channel, including, but not limited to U.S. Mail, email, text message, push notification, social media messaging, or phone. For purposes of this Subparagraph, "targeted" means that materials or messages are sent directly to a blocked Individual at an address, email address, telephone number, or other contact associated with the Individual; and

(4) if a Player has pending Wagers prior to being blocked, handle these Wagers in accordance with the Operator's terms and conditions.

(d) If an Operator restricts or suspends a Registered Player's account due to responsible gaming concerns, as determined by the Operator, and without the Registered Player's express request to be excluded or blocked, the Operator shall undertake commercially reasonable efforts to comply with the requirements under Paragraph (c) of this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0714 Suspension and Restoration of Wagering Accounts {#sec-24-ncac-06a-.0714 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0714}

(a) An Operator shall place a Wagering Account into a suspended mode:

(1) when a Registered Player blocks themselves from Wagering for a specified period, which shall not be a period less than 72 hours, pursuant to Rule .0713(c) of this Subchapter;

(2) when required by the Commission or Director;

(3) if the Operator determines it lacks sufficient information to verify the age and eligibility of the Registered Player;

(4) on a determination by an Operator that a Registered Player:

(A) has provided false or misleading information in connection with the opening of the Account or has engaged in Event Corruption, collusion, cheating or other unlawful conduct;

(B) is or has been barred from placing Wagers in the State;

(D) is deceased or incapacitated;

(5) when initiated by an Operator that has evidence that indicates:

(A) illegal activity including providing false or misleading information in connection with the opening of the Account, or engaging in collusion, cheating, or other unlawful conduct;

(B) a negative Wagering Account balance; or

(6) for another non-discriminatory reason at the sole discretion of the Operator, so long as the reason is not based on a Registered Player's race, color, religion, national origin, age, sex, sexual orientation, gender identity, veteran status, disability, or other lawfully protected characteristic under federal, State, or local law.

(b) When a Wagering Account is in a suspended mode, the Operator shall:

(1) prevent the Registered Player from placing Wagers;

(2) prevent the Registered Player from depositing funds unless the Account is suspended due to having a negative Wagering Account balance, but only to the extent the Account balance is brought back to zero dollars;

(3) prevent the Registered Player from withdrawing funds from their Account, unless the Operator acknowledges that the funds have cleared, and that the reasons for Suspension would not prohibit a withdrawal;

(4) prevent the Registered Player from making changes to their Account;

(5) prevent the removal of the Account; and

(6) prominently display to the Registered Player that the Account is in a suspended mode, the restrictions placed on the Account, and further course of action needed to remove the suspended mode.

(1) upon completion of the break from Wagering established by the Registered Player;

(2) if authorized by the Director;

(3) when the Registered Player is no longer an Ineligible Person; or

(4) when the Operator has lifted the suspended status.

(d) In the event of termination of the Wagering Account in accordance with this Rule, the Registered Player shall be provided a timely ability to access and withdraw funds remaining in the Wagering Account, if the Operator acknowledges that the funds have cleared and that the reasons for termination would not prohibit a withdrawal.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-014
Eff. January 8, 2024
Readopted Eff. March 27, 2024.
Amended Eff. January 17, 2025.

24 NCAC 06A .0715 Account Closure {#sec-24-ncac-06a-.0715 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0715}

An Operator shall provide a conspicuous and readily accessible method for a Registered Player to close their Wagering Account through the Account management or similar page or through the Operator's customer support team.

(1) Upon closure by the Registered Player, funds remaining in the Wagering Account shall be refunded to the Player, if pursuant to the Operator's Internal Controls the Operator acknowledges that the funds have cleared and no investigation by the Commission or other government authority regarding the funds is pending.

(2) As part of the of the Account closure process, the Registered Player shall be provided the opportunity to elect to have their Personal Information deleted or rendered no longer useable or accessible by the Operator, its agents, or its Affiliates. The Operator may deny such request from a Registered Player if maintaining the Personal Information is necessary to:

(a) perform any obligations under these Rules or the General Statutes;

(b) complete the transaction for which the Personal Information was collected, provide a good or service requested by the Individual, or reasonably anticipated within the context of a business's ongoing business relationship with the Individual, or otherwise perform a contract between the business and the Individual;

(c) detect security incidents, protect against malicious, deceptive, fraudulent, or illegal activity; or prosecute those responsible for that activity;

(d) debug to identify and repair errors that impair existing intended functionality;

(e) to enable solely internal uses that are reasonably aligned with the expectations of the consumer based on the consumer's relationship with the business; or

(f) comply with any other legal obligation.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-015
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0716 Dormant Accounts {#sec-24-ncac-06a-.0716 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0716}

Wagering Accounts with no Player initiated activity for at least three years shall be closed. Upon closure of a dormant Account, the Operator shall make reasonable efforts to contact the Registered Player to return any unclaimed funds. After 120 Days of attempting to contact the Registered Player, the unclaimed funds in a dormant Account shall be presumed abandoned and shall be treated in accordance with Chapter 116B of the General Statutes.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-016
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0717 Test accounts {#sec-24-ncac-06a-.0717 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0717}

An Operator shall establish and maintain test Accounts to be used by the Operator and the Commission or Director to test and audit the various components and operation of the systems used for Wagering pursuant to Internal Controls, which shall address:

(1) the procedures for issuing funds used for testing, including the identification of who may issue the funds and the maximum amount of funds that may be issued;

(2) the procedures for assigning a test Account for use by only one Individual; however, an Operator may establish a specific scenario or instance of a test Account that may be shared by multiple users if a user's activities are separately logged;

(3) the maintenance of a record for test Accounts, to include when they are active, to whom they are issued, and the employer of the Individual to whom they are issued;

(4) the procedures for auditing testing activity by the Operator to ensure the accountability of funds used for testing and proper adjustments to Wagering records; and

(5) the procedures for authorizing and auditing out-of-state test activity.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1G-017
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06A .0801 Wagering Facility Location {#sec-24-ncac-06a-.0801 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0801}

The Operator shall provide written notice to the Commission of the proposed physical location of the Wagering Facility, or of any proposed changes to the location of an existing Wagering Facility in a format specified by the Commission.

(1) The notice shall be provided to the Commission at least 60 Days prior to the intended opening date of the new or relocated Wagering Facility so that the Commission may determine whether the proposed physical location meets the requirements of the G.S. 18C-926 and these Rules.

(2) The Commission shall provide a written response within 30 Days of receipt of the notice.

(3) Operator shall provide such notice for each proposed Wagering Facility.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0802 Floor Plan AND EQUIPMENT LIST {#sec-24-ncac-06a-.0802 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0802}

(a) The Operator shall establish and submit to the Director for approval a detailed floor plan of the Wagering Facility. The proposed floor plan shall detail:

(1) a drawing to scale of the Wagering Facility, and each floor thereof, in which Sports Wagering or Pari-Mutuel Wagering shall be conducted, at a scale sufficient to identify the information established in this Rule. The drawing shall depict the following, as applicable:

(A) the total square footage of the Wagering Facility;

(B) a diagram, outlined in red, of the proposed designated Wagering area on each floor within the building;

(D) the locations and number of Wagering Kiosks, though the Wagering Facility may move Wagering Kiosks from one location to another with approval of the Director;

(E) Wagering Facilities that are, or are from time to time, a restricted Wagering Facility, specifying the nature of the restrictions and when they will apply;

(F) the cage;

(G) the count room;

(H) the vault;

(I) other restricted areas; and

(J) all areas subject to surveillance;

(2) a certificate of compliance approved by the local fire and building officials which has been approved;

(3) a written statement by the appropriate local official that handicapped access to the designated Wagering Facility has been provided; and

(4) when a Wagering Facility is located in a Sports Facility, a drawing depicting the location of the Wagering Facility within the Sports Facility.

(b) A floor plan may be amended on request by the Operator and upon approval by the Commission or Director. A request shall be filed with the Director in writing at least five Days prior to the time for which implementation of the amendment is sought.

(c) An Operator shall provide the Director with a comprehensive list of all equipment for use related to Wagering at its Wagering Facility. An Operator shall submit updates to the equipment list to the Director, as applicable, on a monthly basis.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0803 Wagering FACILITY RESTRICTIONS {#sec-24-ncac-06a-.0803 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0803}

(a) An Operator's Internal Controls for the Wagering Facility shall be established so as to control access by the general public and prevent entry by an Underage Person or an Individual otherwise not permitted to place Wagers.

(b) An Underage Person shall not be permitted to purchase or Cash a Wagering Ticket or Voucher.

(c) The Wagering Facility shall provide notification that underage gambling is a criminal offense and that anyone who facilitates an Underage Person to place a Wager has committed a criminal offense.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0804 Responsible Gaming and Problem Gambling Information {#sec-24-ncac-06a-.0804 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0804}

Commission-approved or Director-approved responsible gaming and problem gambling information shall be prominently displayed in the Wagering Facility. The Wagering Facility shall:

(1) post in a conspicuous place a sign that bears a telephone number or website of a Commission-approved organization that provides assistance to problem or compulsive gamblers;

(2) provide Commission-approved informational leaflets or other similar materials containing responsible gaming and problem gambling information including a Commission-approved telephone number or website that an Individual may use to obtain information about problem gambling and resources addressing addiction and compulsive behavior and where to seek assistance with these issues; and

(3) provide Players expressing concern with a gambling problem with information regarding Commission-approved or Director-approved organizations that provide assistance to problem or compulsive gamblers.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0805 Anonymous Wagers and Payouts Greater Than $10,000 {#sec-24-ncac-06a-.0805 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0805}

(a) The requirements of this Rule only apply to Wagers and payouts not associated with a Wager placed through a Wagering Account.

(b) Prior to accepting a Wager in excess of ten thousand dollars ($10,000) or making a payout in excess of ten thousand dollars ($10,000) on a winning Wager, the Wagering Facility shall obtain and record:

(1) the Player's full legal name;

(2) the Player's date of birth;

(3) the Player's principal physical address other than a post office box;

(4) the Player's Social Security number, or an equivalent government identification number for a noncitizen, for example, a passport or taxpayer identification number; and

(5) the document number from one of the following valid identification credentials collected from the Player to verify their identity:

(A) driver's license;

(B) passport;

(D) other reliable government-issued identification credentials; or

(E) other picture identification credential normally acceptable as a means of identification when cashing checks.

(c) Subsequent to accepting a Wager in excess of ten thousand dollars ($10,000) or making a payout in excess of ten thousand dollars ($10,000) on a winning Wager the Wagering Facility shall maintain records for five years that include:

(1) the time and date of the Wager or payout;

(2) the amount of the Wager or payout;

(3) the Player's full legal name;

(4) the Ticket Writer or other identification of the location where the Wager or payout occurred; and

(5) the identification of the employees accepting or approving the Wager and payout on the Wager.

(d) The Operator shall monitor Wagers and payouts to ensure Players are not circumventing the recording and reporting requirements of this Rule or federal rules concerning Wagering Activity and payouts.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0806 Wagering Windows {#sec-24-ncac-06a-.0806 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0806}

(a) A Wagering Facility may have one or more Wagering Windows. A Wagering Window shall:

(1) be designed and constructed to provide maximum security for the materials stored and the activities performed therein, in a manner approved by the Director;

(2) include one or more Ticket Writer Stations, which shall:

(A) interface with the Wagering system for Wagers placed;

(B) contain a permanently affixed number, which shall be visible to the Surveillance System;

(C) contain manually triggered silent alarm systems, which shall be connected directly to the Surveillance Operation Room and the Commission office if required; and

(D) contain full enclosures, unless funds are either secured in a drop safe or other means approved by the Commission or transferred to the vault or cage;

(3) provide for surveillance equipment capable of accurate visual monitoring and recording of activities; and

(4) require an emergency exit door that is not a mantrap to be alarmed.

(b) A Wagering Window shall have access to a secure location, including a vault, to store funds issued by a cage to be used in the operation of Sports Wagering or Pari-Mutuel Wagering. The secure location shall:

(1) be a fully enclosed room, located in an area not accessible to the public;

(2) have a metal door with a locking mechanism that shall be maintained and controlled by the Wagering manager responsible for the Wagering Facility;

(3) have an alarm device that signals surveillance personnel if the door to the secure location is opened; and

(4) have surveillance equipment capable of accurate visual monitoring and recording of activities in the secure location.

(c) A Wagering Window shall have an operating balance not to exceed an amount specified in the Internal Controls and approved by the Director. Funds in excess of the operating balance shall be transferred to the cage in a secured container by an employee of the counter with a Wagering Facility security officer. Prior to transporting the funds, Wagering Facility security personnel shall notify surveillance personnel that the transfer will take place. Surveillance personnel shall monitor the transfer. The funds shall be transferred with appropriate documentation as set forth in the Internal Controls.

(d) The assets for which a Ticket Writer is responsible shall be maintained on an imprest basis. A Ticket Writer shall not permit another Person to access the Ticket Writer's imprest inventory.

(e) A Ticket Writer shall begin a shift with an imprest amount of currency and coin to be known as the "Wagering inventory." No funds shall be added to or removed from the Wagering inventory during a shift except:

(1) in collection of Wagers;

(2) to make change for a Player placing a Wager;

(3) in collection for the issuance of Vouchers;

(4) in payment of winning or properly canceled or refunded Wagers;

(5) in payment of Vouchers;

(6) to process deposits or withdrawals to or from a Wagering Account, where supported;

(7) in exchanges with the cashier's cage, a satellite cage, or vault supported by proper documentation which documentation shall be sufficient for accounting reconciliation purposes; or

(8) in payment of appeasement payments to resolve a dispute with a Player.

(f) A Wagering inventory slip shall be completed by the Wagering manager, and the following information shall be recorded thereon at the start of a shift:

(1) the date, time, and shift of preparation;

(2) the denomination of currency and coin in the Wagering inventory issued to the Ticket Writer;

(3) the total amount of each denomination of currency and coin in the Wagering inventory issued to the Ticket Writer;

(4) the Ticket Writer Station to which the Ticket Writer is assigned; and

(5) the written or digital signature of the Wagering manager.

(g) A Ticket Writer assigned to a Ticket Writer Station shall count and verify the Wagering inventory at the vault or other approved location and shall reconcile the count to the Wagering inventory slip. The Ticket Writer shall sign the count sheet attesting to the accuracy of the information recorded thereon. The Wagering inventory shall be placed in a Ticket Writer's drawer and transported directly to the appropriate Ticket Writer Station by the Ticket Writer.

(h) If funds are transferred from the vault to a Ticket Writer, the Wagering manager responsible for the vault shall prepare a two-part writer transfer-out form. On completion of the form, the original shall be retained by the vault manager and the duplicate shall be retained by the Ticket Writer. The form shall include the:

(1) date and time of the transfer;

(2) designation of the vault location;

(3) Ticket Writer Station to where the funds are being transferred;

(4) amount of each denomination being transferred;

(5) total amount of the transfer;

(6) written or digital signature of the preparer of the transfer;

(7) written or digital signature of the manager verifying and issuing the funds; and

(8) written or digital signature of the Ticket Writer verifying and receiving the funds.

(i) If funds are transferred from the Ticket Writer to a vault, a two-part writer transfer-In form shall be prepared in a manner outline in the Operator's Internal Controls. Upon completion of the form, the original shall be retained by the Ticket Writer and the duplicate shall be immediately returned with the funds to the vault. The form shall include the:

(1) date and time of the transfer;

(2) designation of the vault location to where the funds are being transferred;

(3) Ticket Writer Station from which the funds are being transferred;

(4) amount of each denomination being transferred;

(5) total amount of the transfer;

(6) written or digital signature of the Ticket Writer verifying and sending the funds to the vault; and

(7) written or digital signature of the manager verifying and receiving the funds.

(j) At the conclusion of a Ticket Writer's shift, the Ticket Writer's drawer and its contents shall be transported directly to the vault or to a location in the Wagering Window approved by the Director where the Ticket Writer shall count the contents of the drawer and record on the Wagering inventory slip the:

(1) date, time, and shift of preparation;

(2) denomination of currency and coupons in the drawer;

(3) total amount of each denomination of currency and coupons in the drawer;

(4) total of the writer transfer-out forms;

(5) total of the writer transfer-in forms;

(6) total amount in the drawer; and

(7) written or digital signature of the Ticket Writer.

(k) The Wagering manager shall compare the Ticket Writer closing balance to the Wagering inventory slip total, record over or short amounts, and sign the Wagering inventory slip.

(l) If the Wagering Inventory Slip lists an overage or shortage, the Ticket Writer and the Wagering manager shall attempt to determine the cause of the discrepancy in the count. If the discrepancy cannot be resolved, a discrepancy shall be reported to surveillance personnel and the Wagering manager or supervisor in charge at the time. Discrepancies in excess of five hundred dollars ($500.00) shall be reported to the Commission. This report shall include the:

(1) date on which the discrepancy occurred;

(2) shift during which the discrepancy occurred;

(3) name of the Ticket Writer;

(4) name of the Wagering manager;

(5) Ticket Writer Station number; and

(6) amount of the discrepancy.

(m) If funds are transferred from the vault to the cashier's cage, the Wagering manager responsible for the vault shall prepare a two-part vault transfer-out form. On completion of the form, the original shall be retained by the vault manager and the duplicate shall be transferred with the funds to the cashier's cage. The form shall include the:

(1) date and time of the transfer;

(2) designation of the vault location;

(3) designation of the cage location;

(4) amount of each denomination being transferred;

(5) total amount of the transfer;

(6) written or digital signature of the preparer of the transfer;

(7) written or digital signature of the vault manager verifying and issuing the funds; and

(8) written or digital signature of the cage cashier verifying and receiving the funds.

(n) If funds are transferred from the cashier's cage to a vault, a two-part vault transfer-in form shall be prepared. On completion of the form, the original shall be retained by the cage cashier and the duplicate shall be transferred with the funds to the vault. The form shall include the:

(1) date and time of the transfer;

(2) designation of the vault location to which the funds are being transferred;

(3) cashier location from which the funds are being transferred;

(4) amount of each denomination being transferred;

(5) total amount of the transfer;

(6) written or digital signature of the cage cashier verifying and sending the funds to the vault; and

(7) written or digital signature of the vault manager verifying and receiving the funds.

(o) In lieu of separate Wagering Windows with live Ticket Writers, cage personnel may write and Cash Tickets.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0807 Wrong Ticket Claims {#sec-24-ncac-06a-.0807 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0807}

Subject to a Ticket Writer's discretion, a claim by a Player that they have been issued a Wagering Ticket other than that requested shall be made before the Player has left the Wagering Window or before the Ticket Writer has initiated a transaction with another Player.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0808 Acceptance of Tips {#sec-24-ncac-06a-.0808 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0808}

A tip wager is a cash payment, voucher, a posted wager, or an unposted wager to be determined by a Ticket Writer that is given as a gratuity. A Wagering Ticket may be received as a tip wager by an employee of a Wagering Facility so long as:

(1) the receiver of tip Wager did not solicit the Wagering Ticket:

(2) the receiver did not participate in the selection of the Wager;

(3) the Wagering Ticket is placed into a tip pool; and

(4) tip Wagers are recorded in an auditable log.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0809 Wagering Kiosks {#sec-24-ncac-06a-.0809 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0809}

A Wagering Facility may use Wagering Kiosks for Wagering Activity in a location approved by the Director. A Wagering Kiosk shall be established and operated as follows:

(1) All aspects of a Wagering Kiosk, including the computer and related hardware, software, or related devices, shall be submitted to an Independent Testing Laboratory and approved by the Commission prior to use by a Wagering Facility. The Commission may require additional testing or field inspection of the Wagering Kiosk prior to or after approval.

(2) Wagering Kiosks shall be configured not to:

(a) issue a Wagering Ticket with a Wager in excess of ten thousand dollars ($10,000);

(b) redeem a winning Wagering Ticket with a value in excess of ten thousand dollars ($10,000) or other limits set by the Internal Revenue Service;

(c) issue or redeem a Wagering Voucher with a value in excess of ten thousand dollars ($10,000) or other limits set by the Internal Revenue Service; or

(d) distribute Cash or Cash Equivalents.

(3) All Wagering Kiosks shall have a sign permanently affixed to the Kiosk notifying the public that Players shall not be Underage Persons.

(4) On a schedule approved by the Director, authorized employees shall remove the drop boxes in the Wagering Kiosks. The drop boxes shall be monitored and recorded by surveillance. The Wagering Facility shall submit the Wagering Kiosk drop schedule to the Director.

(5) The Wagering Facility shall reconcile the Wagering Kiosks on a schedule approved by the Director pursuant to Internal Controls. Variances of five hundred dollars ($500.00) or more shall be documented by the accounting department and reported in writing to the Director within five Days after drop and count of Wagering Kiosks. The report shall state the cause of the variance and shall contain documentation required to support the stated explanation.

(6) In locations where Wagering Kiosks do not allow for redemption, the Wagering Facility shall display prominently the methods of paying out or cashing out winning Wagering Tickets and Vouchers near the Wagering Kiosks.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0810 Drop and Count {#sec-24-ncac-06a-.0810 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0810}

(a) The Wagering Facility shall have a count room whose physical access shall be limited to count team employees, designated staff, Commission staff, and other Persons authorized by the Operator. The count room shall remain locked unless entry and exit is required by authorized Persons.

(1) Count team employees shall not exit or enter the count room during the count except for emergencies or scheduled breaks.

(2) Surveillance staff shall be notified if count room employees exit or enter the count room during the count.

(3) The Internal Controls shall include a count team policy that shall address the transportation of extraneous personal items including personal belongings, toolboxes, or beverage containers, into or out of the count room.

(b) Security of the count and the count room shall be ensured to prevent unauthorized access, misappropriation of funds, forgery, theft, or fraud.

(1) All counts shall be performed by two or more employees.

(2) At no time during the count shall there be fewer than two count team employees in the count room until responsibility for the drop proceeds has been accepted by cage or vault personnel.

(3) Count team employees shall be independent of the department being counted. A cage or vault employee may be used if they are not the sole recorder of the count and do not participate in the transfer of drop proceeds to the cage or vault. An accounting employee may be used if there is an independent audit of count documentation.

(4) Items brought into a count room shall be transported or packaged in transparent wrappers or containers.

(1) Surveillance shall be notified prior to the currency cassettes or drop boxes being accessed in a Kiosk.

(2) Two or more employees shall be involved in the collection of currency cassettes and drop boxes from Kiosks and one or more of those employees shall be independent of Kiosk accountability.

(3) RESERVED FOR FUTURE USE.

(4) If applicable, redeemed Vouchers collected from the Kiosk shall be secured and delivered to the appropriate department, for example, cage or accounting, for reconciliation.

(5) The Internal Controls for the Wagering Facility shall ensure that currency cassettes contain the correct denominations and have been properly installed.

(6) Access to stored full currency cassettes and drop boxes shall be restricted to:

(A) employees authorized by the Operator; and

(B) in an emergency, additional Wagering Facility personnel authorized for the resolution of a problem.

(7) The Kiosk count shall be performed in a secure area, including the cage or count room.

(8) If counts from Kiosks and other areas requiring counts occur simultaneously in the count room, Internal Controls shall be in effect that prevent the commingling of funds from the Kiosks with other areas requiring counts.

(9) The Kiosk currency cassettes and drop boxes shall be individually emptied and counted so as to prevent the commingling of funds between Kiosks until the count of the Kiosk contents has been recorded.

(10) Internal Controls shall be implemented to ensure that corrections to the count documentation are permanent and identifiable, and that the original, corrected information remains legible. Corrections shall be verified by two employees.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0811 Winning Wagers and Vouchers {#sec-24-ncac-06a-.0811 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0811}

The requirements of this Rule only apply for Wagers and payouts not associated with a Wagering Account:

(1) Payment on valid Wagering Tickets shall be made only if presented and validated within one year following the settling of the Wagering Event, or, in the event of a parlay, following the last-in-time Wagering Event to settle on the Ticket.

(2) Payment on valid Wagering Vouchers shall be made only if presented and validated within one year following the date of issuance.

(3) Failure to present a Wagering Ticket or Voucher for redemption prior to the applicable one-year deadline shall constitute a waiver of the right to receive payment on the Ticket or Voucher.

(4) Whenever there is an amount of time in which a Player is not afforded the ability to redeem a winning Ticket or Voucher due to Wagering Facility closure the one-year time period is tolled.

(5) Any unclaimed funds from expired Wagering Tickets or Vouchers shall be presumed abandoned and shall be treated in accordance with Chapter 116B of the General Statutes.

(6) The Wagering Facility shall establish Wagering Ticket and Voucher payout procedures within the Internal Controls that:

(a) include a process to audit final transfers upon Wager settlement;

(b) detail the rules and due diligence required prior to making a decision on payout for a lost, stolen, or damaged Ticket or Voucher;

(d) include a procedure with regard to late or last-minute payouts; and

(e) address whether or not a winning Ticket may be redeemed by mail and, if so, the procedures for such redemption.

(7) The Wagering Facility shall not satisfy claims on lost, mutilated, or altered Wagering Tickets or Vouchers without authorization of the Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0812 Cashiers, Windows, and Cages {#sec-24-ncac-06a-.0812 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0812}

(a) The Wagering Facility shall have within it or immediately adjacent to it a physical structure known as a cashiers' cage (cage) to house the cashiers. A Wagering Facility may also have within or immediately adjacent to the Wagering Facility, one or more satellite cages.

(b) A cage or satellite cage shall be fully enclosed and shall, at a minimum:

(1) perform financial transactions related to Sports Wagering or Pari-Mutuel Wagering;

(2) be designed and constructed to provide maximum security for the materials stored and the activities performed therein. This design and construction shall be approved by the Commission;

(3) include openings at one or more numbered cashier windows, each of which shall contain a cashier's drawer and through which financial transactions related to Sports Wagering or Pari-Mutuel Wagering will be conducted;

(4) include manually triggered silent alarm systems, which shall be connected directly to the surveillance and the Wagering Facility security monitoring rooms;

(5) provide for surveillance equipment capable of accurate visual monitoring and recording of activities; and

(6) include a mantrap if the cage or satellite cage secure assets, including, but not limited to, currency having a value greater than an amount established by the Director. The outer door of the mantrap shall be controlled by Wagering Facility security personnel and the inner door shall be controlled by accounting personnel or another department personnel approved by the Director that are not the same as the personnel controlling the outer door. The doors of the mantrap shall have separate and distinct locking mechanisms on doors of the double door entry and exit system. The mantrap shall be subject to continuous surveillance coverage.

(c) A cage or satellite cage may have one or more service windows to serve as a location in the Wagering Facility to conduct financial transactions. These windows shall be designed and constructed in accordance with this Rule, and access shall be controlled by an accounting supervisor.

(d) If approved paperless systems are not in use, the Internal Controls shall require that documents regarding the funds stored in cages shall be transported between cages in a secure manner approved by the Commission and with Wagering Facility security personnel.

(e) A Wagering Facility shall have on hand in the cage, or readily available including in a restricted bank account or by bond, a reserve of Cash to pay winning Players.

(f) A cashiers' cage and any satellite cage shall be segregated by personnel so that no single Person has both control and approval for any aspects of cage operations is maintained.

(g) A qualified supervisor may perform the functions of a cashier provided that the functions are not incompatible with proper separation of duties outlined in Internal Controls. A supervisor shall not operate from another cashier or supervisor's imprest inventory.

(1) The assets for which a general cashier is responsible shall be maintained on an imprest basis. A general cashier shall not permit another Person to access their imprest inventory. General cashier functions shall include, but are not limited to:

(A) performing check consolidations, total or partial redemptions, or substitutions for Players;

(B) receiving Cash, authorized Cash Equivalents and authorized electronic transfers from Players in exchange for currency or Wagering Vouchers;

(D) processing exchanges with cashiers, supported by documentation with written or digital signatures thereon, for the effective segregation of functions in the cashiers' cage;

(E) receiving Wagering Tickets or Vouchers from Players or authorized employees in exchange for Cash; and

(F) exchanging and reconciling imprest funds used by attendants, including imprest change/pouch payout funds.

(2) The Wagering Facility may consolidate the cashier functions if the cashier is qualified to perform functions and performs no functions incompatible with proper separation of duties outlined in Internal Controls.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0813 Surveillance System and Procedures {#sec-24-ncac-06a-.0813 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0813}

The Wagering Facility shall install, maintain, and operate a Surveillance System that has the capability to monitor and record continuous unobstructed views of Wagering and financial transactions as well as dynamic displays of Wagering information. In addition, Internal Controls shall ensure there is general surveillance coverage for other areas of the Wagering Facility in a manner approved by the Director with exclusions for areas where Player privacy is expected including bathrooms and changing rooms.

(1) The Surveillance System shall:

(a) have the capability to display camera views on a monitor;

(b) record camera views; and

(c) time stamp all recordings with the current local time which shall be synchronized to the official United States Naval Observatory Master Clock.

(2) The Surveillance System shall be maintained and operated from a Surveillance Operation Room or, when authorized by the Commission, a secured location, including a locked cabinet.

(a) The Surveillance Operation Room shall be secured to prevent unauthorized entry.

(b) The location of the Surveillance Operation Room shall ensure that the interior is not visible to the public or other employees who do not work in the surveillance room.

(c) Access to the Surveillance Operation Room shall be limited to surveillance personnel, the Commission, and other authorized Persons.

(d) Surveillance Operation Room access logs shall be maintained, recording entries and exits.

(e) Personal recording devices are not permitted in the Surveillance Operation Room. This includes, but is not limited to, cameras, video recorders, and mobile phones.

(f) Surveillance Operation Room equipment shall have total override capability over other satellite surveillance equipment.

(3) In the event of power loss or malfunction to the Surveillance System, alternative Wagering Facility security procedures, including additional supervisory or Wagering Facility security personnel, shall be implemented immediately.

(4) The Surveillance System shall record an accurate date and time stamp on recorded events. The displayed date and time shall not significantly obstruct the recorded view.

(5) All surveillance employees shall be trained in the use of the equipment and about the Wagering Rules.

(6) A periodic inspection of the Surveillance Systems shall be conducted. When a dedicated camera stops providing coverage in the Wagering Facility, the coverage failure and required repairs shall be documented, and repairs initiated within 72 hours.

(a) If a dedicated camera stops providing coverage, alternative Wagering Facility security procedures, including additional supervisory or facility security personnel, shall be implemented immediately.

(b) The Commission shall be notified in writing of a coverage failure for more than 24 hours and whenever the alternative Wagering Facility security measures are implemented.

(7) Surveillance coverage shall be provided for the following areas as follows:

(a) For public entrances to the Wagering Facility:

(i) Entrances shall have sufficient coverage that two or more cameras shall be able to positively identify a Person entering.

(ii) Wagering Facility security check-in points at the entrances shall have a dedicated camera to capture an unobstructed facial view of Persons entering the Wagering Facility.

(b) For non-public entrances to the Wagering Facility, including loading docks and emergency exits:

(i) Entrances shall have sufficient surveillance coverage such that there are two or more cameras with sufficient image quality to be able to positively identify a Person entering.

(ii) Employee entrances shall be secured either via the use of digitally controlled access systems or by in-person verification conducted by facility security personnel.

(iii) Internal Controls shall be in place requiring that employees entering the Wagering Facility be identifiable and of sufficient quality to positively identify a Person entering.

(i) All restricted areas shall have surveillance coverage sufficient that Persons in the area can be clearly identified.

(ii) All restricted areas shall have sufficient coverage and resolution such that controlled equipment and currency and currency equivalents are identifiable.

(iii) All restricted areas shall have additional camera coverage sufficient to provide asset protection as approved by the Commission.

(iv) Access to coverage of the Surveillance Operation Room is limited to senior management and the Commission.

(d) For Wagering Facilities:

(i) The Surveillance System shall monitor and record general activities, to include the Ticket Writer and cashier areas, with Sufficient Clarity to identify the personnel performing the different functions.

(ii) All Wagering Facilities shall have sufficient coverage that a Player may be tracked throughout the entirety of the Wagering Facility.

(e) For Ticket Writer Stations:

(i) All Ticket Writer Stations shall have sufficient coverage to identify currency amounts.

(ii) Ticket Writer Stations that may be used for placing Wagers shall have surveillance coverage sufficient to identify the Player and employee involved in the transaction.

(iii) Surveillance personnel shall have access to the Ticket Writer Stations to access transaction amounts.

(f) For all exits from the Wagering Facility:

(i) Exits shall have sufficient coverage that two or more cameras shall be able to positively identify a Person exiting.

(g) For Wagering Kiosks, the Surveillance System shall monitor and record a general overview of activities occurring at the Kiosks with accurate time stamps and Sufficient Clarity to identify the activity and the Individuals performing it, including maintenance, drops or fills, and redemption of Wagering Tickets or Vouchers.

(h) For the cage and vault:

(i) The Surveillance System shall monitor and record a general overview of activities occurring in the cage and vault areas with accurate time stamps and Sufficient Clarity to identify Individuals within the cage and Players and staff members at the window areas and to confirm the amount of Cash transactions.

(ii) Cashier stations shall be equipped with one dedicated overhead camera covering the transaction area.

(iii) The cage or vault area in which exchange and transfer transactions occur shall be monitored and recorded by a dedicated camera or motion activated dedicated camera that provides coverage with Sufficient Clarity to identify the amounts on the exchange and transfer documentation. Amounts provided by a computerized exchange and transfer system constitute an adequate alternative to viewing the amounts on the exchange and transfer documentation.

(i) For count rooms, the Surveillance System shall:

(i) Monitor and record with Sufficient Clarity a general overview of areas where Cash or Cash Equivalents may be stored or counted.

(ii) Provide coverage of count equipment with Sufficient Clarity to view attempted manipulations of the recorded data.

(j) All machines capability of dispensing Cash shall have sufficient coverage to view the transition and the currency amount being dispensed and the Individuals at the machine.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-013
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0814 WAGERING Facility Security Procedures {#sec-24-ncac-06a-.0814 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0814}

(a) The Internal Controls shall include appropriate Wagering Facility security procedures to enable a suitable response to a security issue within the Wagering Facility and prevent a Person from tampering with or interfering with the operation of Sports Wagering or Pari-Mutuel Wagering.

(b) The Wagering Facility shall establish provisions describing the duties and operation of its facility security department, which shall include details relative to the design, construction, and location of primary and secondary armored car routes, including provisions for the security of these routes.

(c) The Wagering Facility shall use an incident reporting system to document incidents and activities within the Wagering Facility.

(1) Facility security procedures approved by the Directors shall be implemented for reporting:

(A) an Individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities;

(B) an Individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited under the Act and these Rules;

(C) an Individual in the Wagering Facility who is an Ineligible Person, impaired due to alcohol or other substance ingestion, or a potential victim of human trafficking;

(D) all camera, system or recording outages;

(E) routine tasks accomplished by Wagering Facility security or surveillance personnel at the request of another team; and

(F) suspicious incidents observed.

(2) Violations of the Act or these Rules shall be identified in the incident reporting system.

(3) The Commission and the Director shall have real-time read-only access to the incident reporting system.

(4) The incident reporting system shall be capable of generating reports that detail incident types and these reports shall be delivered to the Commission or Director on request or as required on a schedule set by the Commission or Director.

(5) The incident reporting system shall be in an electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system.

(6) The incident reporting system shall document the:

(A) assignment number of the incident;

(B) incident category or type;

(D) name and position of the Individuals documenting and responding to the incident;

(E) nature of the incident; and

(F) resolution of the incident.

(7) All recordings required by this Rule shall be retained for a minimum retention period of 30 Days. Suspected crimes, recordings of Player disputes subject to Rule .0421 of this Subchapter, illegal activity, or detentions by Wagering Facility security personnel discovered within the initial retention period shall be copied and retained for a period not less than five years.

(8) At minimum, all security video recordings shall be retained for a minimum of 15 days.

(9) An Operator shall retain any recoding beyond the applicable minimum retention period specified in this Rule when requested to do so by the Commission, as required by law, or as needed to conform to applicable internal controls.

(10) An Operator shall produce recordings to the Commission upon request as well as to any other authorized Person or government authority, as required by law.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-014
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0815 Controlled Keys {#sec-24-ncac-06a-.0815 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0815}

(a) The Wagering Facility shall implement Internal Controls to safeguard the use, access, and security of Wagering Facility keys.

(b) Custody of all keys involved in the drop and count shall be maintained by a department independent of the drop and count employees as well as those departments being dropped and counted.

(1) count room keys;

(2) storage racks and carts;

(3) Wagering Kiosk keys;

(4) currency cassette release;

(5) currency cassette contents;

(6) drop box release;

(7) drop box contents; and

(8) surveillance room.

(d) Access to and return of keys or equivalents shall be documented with the date, time, and written or digital signature of the employee accessing or returning the keys.

(1) Two or more drop team employees are required to be present to access and return keys.

(2) Two or more count team employees are required to be present at the time count room and other count keys are issued for the count.

(e) Documentation of all keys, including duplicates, shall be maintained, including:

(1) unique identifier for each Individual key;

(2) key storage location;

(3) number of keys made, duplicated, and destroyed; and

(4) authorization and access.

(f) Other than the count team, no employee may have access to the currency cassette or drop box content keys while in possession of storage rack keys or release keys.

(g) Other than the count team, only employees authorized to remove currency cassettes or drop boxes are allowed access to currency cassette or drop box release keys.

(h) Any use of keys at times other than the scheduled drop and count shall be properly authorized and documented.

(i) Emergency manual keys, such as an override key, for computerized, electronic, and alternative key systems shall be maintained in accordance with the following:

(1) Access to the emergency manual keys used to access the box containing the drop and count keys requires the physical involvement of at least three employees. The custody of the emergency manual keys requires the presence of two employees from separate departments from the time of the keys' issuance until the time of their return.

(2) Routine physical maintenance, that requires access to the emergency manual keys and does not involve accessing the drop and count keys, only requires the presence of two employees from separate departments.

(3) The date, time, and reason for accessing the emergency manual keys shall be documented with the written or digital signatures of all participating employees signing the keys out and in.

(j) On a quarterly basis, an inventory of all keys shall be performed by the Operator and reconciled to records of keys made, issued, and destroyed. The Operator shall perform investigations for all keys unaccounted for, with the investigations being documented and reported to the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1H-015
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06A .0816 Wagering Facility Inspections {#sec-24-ncac-06a-.0816 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0816}

(a) Prior to the initial opening of a Wagering Facility, the Operator shall submit a written request to the Director for a pre-operational inspection to verify that the proposed Wagering Facility complies with the requirements of the Act, these Rules, and relevant Internal Controls submitted by the Operator. The Operator shall not open the Wagering Facility until the pre-operational inspection has been completed and they receive a passing result notification from the Commission.

(b) The Director will approve requests for pre-operational inspections and schedule a date and time for the pre-operational inspection only after the Operator has submitted the required internal controls addressing the requirements in this Section.

(c) The Director may conduct an inspection of any Wagering Facility after initial opening, with or without notice to the Operator. The Operator shall timely admit the Commission, Director, their staff or their agents upon presentation of credentials. Operators failure to admit such individuals to the Wagering Facility is grounds or Disciplinary Action.

(d) After an inspection is conducted, the Operator will be notified by Commission staff with a passing or failing result. If the result is a failed inspection, the notification will include requirements to cure any noted deficiency in the inspection. The Commission may require a Wagering Facility to close until the Operator can cure a deficiency identified by the inspection.

(e) An Operator shall comply with any inspection conducted by the Commission.

History

Authority G.S. 18C-114(a)(14)
Eff. June 22, 2024.

24 NCAC 06A .0901 Advertising and Marketing Generally {#sec-24-ncac-06a-.0901 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0901}

(a) The Operator shall ensure that its Advertisements, marketing, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Operator:

(1) disclose the identity of the Operator and its brand;

(2) contain a statement that Underage Persons are not allowed to Wager, or a statement that Underage Persons are not allowed to open or have access to Wagering Accounts;

(3) do not include or depict:

(A) Underage Persons, except live footage or images of professional athletes who may be Underage Persons in permitted Wagering Events;

(B) college students or those wearing collegiate-affiliated apparel;

(D) school or college settings;

(4) do not state or imply endorsement or participation by:

(A) Underage Persons, other than professional athletes who may be Underage Persons;

(B) colleges; or

(5) do not target Underage Persons, other Ineligible Persons, Individuals with gambling problems, or other vulnerable Individuals; and

(6) if sent via phone, mail, email, or other electronic communication, include a means for the receiver to opt out of a phone, mail, email, or other electronic communication advertising or marketing distribution list, where the advertising and marketing was sent directly to the recipient using these lists.

(b) Incidental depiction of nonfeatured Persons, locations, settings, or organizations listed in Subparagraph (a)(3) of this Rule does not violate this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0902 Advertising to Underage Persons Prohibited {#sec-24-ncac-06a-.0902 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0902}

(a) Advertising, marketing, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Operator shall state that Players shall be 21 years of age or older to participate.

(1) This requirement does not apply to the display of a logo that does not include additional inducements to Wagering.

(2) The Commission may provide for alternative methods of stating that Wagering is limited to individuals at least 21 years old when the nature, size, or placement of the Advertising make it impractical or impossible to include such messaging within the Advertising itself. The Commission may establish "safe harbors" for alternative methods for such messaging and the Director may approve alternative methods outside of those safe harbors on a case-by-case basis.

(b) No Operator shall allow, conduct, or participate in any advertising, marketing, or branding for Wagering that is aimed at Underage Persons.

(c) No advertising, marketing, branding, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Operator shall contain images, symbols, celebrity or entertainer endorsements, music, or language that appeal primarily to an audience below the age of 21 or have been used primarily in connection with media or other programming specifically targeted at Underage Persons. Materials that broadly appeal to people regardless of age, such as sports team mascots, are not considered to be specifically targeted at Underage Persons absent clear and compelling evidence to the contrary.

(d) No advertising, marketing, branding, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Operator shall be placed, published, aired, displayed, disseminated, or distributed:

(1) in media outlets, including social media platforms, that are used primarily by Underage Persons;

(2) at events aimed at Underaged Persons or where 25 percent or more of the audience is reasonably expected to be Underaged Persons, unless such advertising is static and permanently affixed at a location that hosts events that generally cater to persons who are of legal age to Wager;

(3) at any elementary, middle, or high school, or at any sports venue exclusively used for such schools; or

(4) on any college or university campus, or in college or university news outlets such as school newspapers and college or university radio or television broadcasts; however, this prohibition shall not apply to generally available advertising, including television, radio, and digital advertising.

(e) Operator-owned websites and profiles that include Wagering content, including social media platforms, shall include a message, such as "21+," regarding the legal age for Wagering in the State.

(f) No Wagering Advertisements, including logos, trademarks, or brands, shall be used, or licensed for use, on products, clothing, toys, games, or game equipment designed or intended for Underage Persons.

(g) The knowing use of Wagering brands, Advertisements, logos, or trademarks is prohibited on products that are sold in North Carolina and intended primarily for Underage Persons.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0903 No Direct Advertising to Voluntarily Excluded Persons {#sec-24-ncac-06a-.0903 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0903}

(a) No Operator shall allow, conduct, or participate in any advertising, marketing, or branding for Wagering that is aimed at Persons who have enrolled in the Voluntary Exclusion Program pursuant to G.S. 18C-922.

(b) No Operator shall direct mail, text, or electronic messages to an Individual in the Voluntary Exclusion Program or shall allow any employee or agent of the Operator, or Affiliated entity or a third-party pursuant to contract, to take such actions.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0904 Disclosure of Operator; Operator Ultimately Responsible {#sec-24-ncac-06a-.0904 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0904}

(a) Advertisements, promotions, and marketing messages used by an Operator or disseminated for the benefit of an Operator shall disclose the identity of the Operator.

(b) Each Operator shall be responsible for the content and conduct of any and all advertising, marketing, or branding done on its behalf or to its benefit whether conducted by the Operator, an employee or agent of the Operator, or an Affiliated entity or a third-party pursuant to contract, regardless of whether such party is also required to be Licensed.

(c) Each Operator shall provide a copy of the regulations contained herein to all advertising, marketing, branding and promotions personnel, contractors, agents, and agencies retained by the Operator or its agents and shall ensure and require compliance herewith.

(d) Where an Operator or its agent engages a third-party Individual or entity to create or distribute social media content to advertise, market, or promote the Operator, social media messages or posts shall disclose the existence of the business relationship. Such disclosure may be included in the social media profile of the third-party Individual or entity.

(e) Each Operator shall be responsible for the content and conduct of any and all advertising, marketing, and branding done on its behalf or to its benefit, whether conducted by such Operator, an employee or agent of such Licensee, or an Affiliated entity or agent of such Operator pursuant to contract or agreement.

(f) No Operator shall advertise forms of illegal gambling in the State, unless the Advertisement disclaims conspicuously that the Wagering offerings are not available in the State.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0905 Information to Promote Responsible Gaming {#sec-24-ncac-06a-.0905 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0905}

(a) Advertising, marketing, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Operator shall include a link to and phone number for the North Carolina Problem Gambling Helpline or other Commission-approved number or problem gambling resource using language provided by the Commission and such other information regarding responsible gaming as required by the Commission ("Responsible Gaming Messaging"). This requirement does not apply to static advertising, such as the display of a logo, that does not contain additional inducements to Wagering.

(b) Such advertising, marketing, and other promotional materials shall not use a font, type size, location, lighting, illustration, graphic depiction, or color obscuring conditions or limiting factors associated with the Advertisement of such Problem Gambling Helpline information. If an Advertisement is of insufficient size or duration to provide the information required, the Advertisement shall refer to a website or application that prominently includes this information.

(c) For digital billboards, Responsible Gaming Messaging shall be visible for the entire time the rest of the Advertisement is displayed.

(d) The Commission may authorize alternative methods of providing Responsible Gaming Messaging when the nature, size, or placement of the Advertising make it impractical or impossible to include the Responsible Gaming Messaging within the Advertising itself. Any alternative methods for providing the Responsible Gaming Messaging must be approved by the Commission. The Commission or Director may establish "safe harbors" for alternative methods for approving the Responsible Gaming Messaging and the Director may approve alternative methods outside of those safe harbors on a case-by-case basis.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0906 Limitation on Representations about Winnings {#sec-24-ncac-06a-.0906 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0906}

An Operator shall only make representations concerning Winnings that are accurate, not misleading to a reasonable person, and capable of substantiation at the time of the representation. For purposes of this Rule, an Advertisement is misleading to a reasonable person if it makes representations about average Winnings without equally prominently representing the average net Winnings of Players.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0907 False or Misleading Advertising {#sec-24-ncac-06a-.0907 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0907}

(a) An Operator shall not allow, conduct, or participate in any unfair or deceptive advertising, marketing, branding, or other promotional materials for Wagering. Advertising, marketing, or branding that is unfair or deceptive includes, but is not limited to, advertising, marketing, or branding that would reasonably be expected to confuse or mislead Players in order to induce them to engage in Wagering or a particular type of wagering.

(b) An Operator shall not obscure or fail to disclose any material fact about an offer or a condition of an offer in its advertising, marketing, branding or other promotional materials for Wagering or use any type, size, location lighting, illustration, graphic, depiction or color resulting in the obscuring of or failure to disclose any material fact in any advertising, marketing, or branding.

(c) All wagering advertisements, marking, branding, and other promotional materials shall clearly convey the conditions under which Wagering is being offered, including information about the cost to participate and the nature of any promotions or information to assist Players in understanding the odds of winning. Any material conditions or limiting factors shall be clearly and conspicuously specified in the Advertisement, marketing, branding, and other promotional materials.

(d) No advertising, marketing, branding, and other promotional materials published, aired, displayed, disseminated, distributed, or conducted by or on behalf of any Operator shall:

(1) promote irresponsible or excessive participation in Wagering;

(2) suggest that social, financial, or personal success is guaranteed by engaging in Wagering;

(3) encourage Players to "chase" losses or re-invest Winnings;

(4) suggest that betting is a means of solving or escaping from financial, personal, or professional problems;

(5) portray, suggest, condone or encourage Wagering behavior as a rite of passage or signifier of reaching adulthood or other milestones;

(6) portray, suggest, condone or encourage Wagering behavior that is socially irresponsible or could lead to financial, social, professional, or emotional harm;

(7) state or imply that the chances of winning increase with increased time spent on Wagering or increased money Wagered; or

(8) be placed on any website or printed page or medium devoted primarily to responsible gaming.

(e) Advertising, marketing, branding, or other promotional materials that creates an integrity issue, the potential for an integrity issue, or the appearance of an integrity issue with respect to a Wagering Event or a Wagering type is prohibited.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0908 Opt-Out from Direct Marketing {#sec-24-ncac-06a-.0908 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0908}

(a) Each direct Advertisement, marketing, or other promotional materials about Wagering shall clearly and conspicuously describe a method by which an Individual may opt out of receiving future direct Advertisements.

(b) An Operator shall honor any request to opt out as soon as practicable and, in any event, no later than 10 Days from the date of such request. If a direct Advertisement is sent via electronic mail, the described opt-out method shall include either an electronic mail address that will accomplish such opt-out or a link to an online website address at which such opt-out may be accomplished as simply as practicable.

(c) A direct Advertisement sent other than by electronic mail shall include at least one of the following methods to opt out:

(1) telephone;

(2) regular United States mail;

(3) online website address or mobile application at which such opt-out may be accomplished as simply as practicable; or

(4) electronic mail.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06A .0909 Retention of Advertising Materials {#sec-24-ncac-06a-.0909 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06A .0909}

The Operator shall retain and maintain, in a manner consistent with this Rule, any materials used to advertise, market, publicize, brand, or otherwise promote Wagering in this State for two years from the end of the advertising, marketing, branding, promotional, or publicity campaign. If an Affiliate marketer advertises, markets, brands, publicizes, or otherwise promotes Wagering on behalf of the Operator, those records shall be retained and maintained by either the Affiliate marketer or the Operator for the same two-year period.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 1I-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

Subchapter B

24 NCAC 06B .0101 Definitions {#sec-24-ncac-06b-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0101}

In addition to defined terms in G.S. 18C-901, G.S. 18C-1001, and 24 NCAC 06A .0101, the following definitions apply in this Subchapter B of the Rules Manual:

(1) "Amateur Sports" has the meaning provided in G.S. 18C-901(1).

(2) "Card" means the list of Sporting Events and Wager Types from which a Player may make selections for a given Pool.

(3) "College Sports" has the meaning provided in G.S. 18C-901(3).

(4) "Collegiate Sporting Event" means a sport or athletic event offered or sponsored by, or played in connection with, a public or private institution that offers educational services beyond the secondary level.

(5) "Collegiate Tournament" means a series of College Sports or athletic events involving four or more collegiate teams that make up a single unit of competition.

(6) "Covered Services" has the meaning provided in G.S. 18C-901(4).

(7) "Data Source" means a Supplier that sells league or event data, participant data or statistics, or team statistics required to enable Sports Wagering.

(8) "eSports" or "Electronic Sports" has the meaning provided in G.S. 18C-901(5).

(9) "eSports Competition" means leagues, competitive circuits, tournaments, or similar competitions where Individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of prizes, money, or entertainment.

(10) "eSports Competition Operator" means a Person which sanctions, regulates, or organizes an eSports Competition.

(11) "Exchange Wagering" means a form of Wagering in which two or more Persons place identically opposing Wagers in a given market, allowing Players to Wager on both winning and non-winning outcomes in the same event.

(12) "Geofencing" has the meaning provided in G.S. 18C-901(6).

(13) "GLI-CMP Guide" means the Gaming Laboratories International, GLI-CMP: Change Management Program Guide, Version 1.0, Published May 6, 2020, including amendments or subsequent editions.

(14) "GLI-33 Standards" means the Gaming Laboratories International, GLI-33: Standards for Event Wagering Systems, Version 1.1, and its appendices, Revised May 14, 2019, including amendments or subsequent editions.

(15) "Gross Wagering Revenue" has the meaning provided in G.S. 18C-901(7).

(16) "High School Sporting Event" means a Sporting Event participated in or offered or sponsored by a public or private institution that offers educational services at the secondary level.

(17) "In-Game Wagering" means placing a Sports Wager after a Sporting Event has started.

(18) "Layoff Wager" means a Sports Wager placed by a Sports Wagering Operator with another Sports Wagering Operator to offset Sports Wagers.

(19) "Motorsports Facility" has the meaning provided in G.S. 18C-901(10d).

(20) "Official League Data" has the meaning provided in G.S. 18C-901(11).

(21) "Pool" means an offering where Players may make selections of outcomes on a set number of Sporting Events and Wager Type on a Card to enter for a chance to win the Prize Pool or a portion thereof.

(22) "Prize Pool" means the prizing available for an Individual tournament, contest, or Pool.

(23) "Professional Golf Tournament" has the meaning provided in G.S. 18C-901(12d).

(24) "Professional Sports" has the meaning provided in G.S. 18C-901(13). Professional Sports do not encompass or include any Amateur Sports, Colleges Sports, Youth Sports, or High School Sporting Event.

(25) "Professional Sports Team" has the meaning provided in G.S. 18C-901(13d).

(26) "Rake" means the fee that is deducted by an Operator from a Wager made for Exchange Wagering or other peer-to-peer Wagering, or entry fees paid by Players who participate in a tournament, contest, or Pool.

(27) "Rake Adjustment" means an adjustment made by an Operator to account for shortfalls in connection with Exchange Wagering or other peer-to-peer Wagering, tournament, contest, or Pool.

(28) "Registered Player" has the meaning provided in G.S. 18C-901(14).

(29) "Service Provider License" means a License issued by the Commission to a Service Provider for Sports Wagering under G.S. 18C-906.

(30) "Shared Liquidity Pool" means a tournament, contest, or Pool being offered in North Carolina and one or more other jurisdictions.

(31) "Sporting Event" has the meaning provided in G.S. 18C-901(16).

(32) "Sports Wagering Brand" has the meaning provided in G.S. 18C-901(20).

(33) "Sports Wagering Network" means the offering of Exchange Wagering or other peer-to-peer Wagering through the linking of Players:

(a) of one or more Sports Wagering Operators in the State; or

(b) that Players may be pooled from multiple Sports Wagering Operators or from a single Sports Wagering Operator in multiple jurisdictions, pursuant to Commission approval.

(34) "Sports Wagering Platform" has the meaning provided in G.S. 18C-901(21).

(35) "Sports Wagering System" means the hardware, software, firmware, Communication Technology, and other equipment used in connection with a Sports Wagering Platform, as well as procedures implemented to allow Player participation in Sports Wagering, and, if supported, the corresponding equipment related to the display of the Wager outcomes, and other similar information required to facilitate Player participation, including Sports Wagering Platforms themselves.

(36) "Supplier License" or "Sports Wagering Supplier License" means a License issued by the Commission to a Supplier under G.S. 18C-907.

(37) "Tier One Sports Wager" has the meaning provided in G.S. 18C-901(23).

(38) "Tier Two Sports Wager" has the meaning provided in G.S. 18C-901(24).

(39) RESERVED FOR FUTURE USE.

(40) "Wagering Account" or "Account" means an Interactive Account as defined in G.S. 18C-901(8).

(41) "Youth Sports" has the meaning provided in G.S. 18C-901(26).

(42) "Written Designation Agreement" means the written, executed, and complete contractual agreement between an Interactive Sports Wagering Operator or Interactive Sports Wagering Operator Applicant and a non-operator party eligible to enter such agreement, pursuant to G.S. 18C-905(a). A Written Designation Agreement includes all written contracts executed by and between these parties and executed by and between the parties' respective Affiliates.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2A-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06B .0102 Incorporation by Reference {#sec-24-ncac-06b-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0102}

(a) For the purpose of the Rules in this Subchapter, the following Rules, standards and other requirements are hereby incorporated by reference, including subsequent amendments and editions:

(1) Gaming Laboratories International, GLI-33: Standards for Event Wagering Systems, Version 1.1, and its appendices, Revised May 14, 2019; and

(2) Gaming Laboratories International, GLI-CMP: Change Management Program Guide, Version 1.0, Published May 6, 2020.

(b) The Rules, standards, and other requirements incorporated by reference in Paragraph (a) of this Rule shall be made available for inspection. Copies of the Rules, standards, and other requirements incorporated by reference in Paragraph (a) of this Rule are available at no charge at www.gaminglabs.com and the Commission's website.

(c) In the event that there is a conflict between the provisions of the Rules, standards, and other requirements incorporated by reference in Paragraph (a) with any other provision of these Rules or the North Carolina General Statutes, then the North Carolina General Statutes shall take precedence over these Rules, and these Rules shall take precedence over the standards.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2A-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0201 Sports Wagering Operator Licensing {#sec-24-ncac-06b-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0201}

(a) The Director shall issue a Sports Wagering Operator License after finding that the Applicant meets the requirements of the Act and these Rules.

(b) It shall be unlawful for any Person to offer or accept Sports Wagers in this State without a valid Sports Wagering Operator License issued under G.S. 18C-904 and 24 NCAC 06A .0200.

(c) Except as provided in G.S. 18C-928, the Commission shall only license Sports Wagering Operators who have a Written Designation Agreement, in accordance with G.S. 18C-905, to offer and accept Sports Wagers on Sporting Events.

(d) If an Applicant for a Sports Wagering Operator License is a Sports Facility or team that is a member of a league, association, or organization that prevents the Sports Facility or team from being subject to the regulatory control of the Commission or from otherwise operating under a Sports Wagering Operator License, the Sports Facility or team may contractually appoint a designee approved by the Commission to be responsible for all aspects of Commission oversight and operation.

(e) The holder of a Sports Wagering Operator License shall be deemed also to hold a Service Provider License and Supplier License under the Act and these Rules for services, goods, software, or components provided in-house.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0202 Service Provider Licensing {#sec-24-ncac-06b-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0202}

(a) The Director shall issue a Service Provider License after finding that an Applicant meets the requirements of the Act and these Rules.

(b) It shall be unlawful for any Person to offer or provide Covered Services to a Sports Wagering Operator in this State without a valid Service Provider License issued under G.S. 18C-906 and 24 NCAC 06A .0200.

(c) The holder of a Service Provider License shall be deemed also to hold a Supplier License under the Act and these Rules for services, goods, software, or components provided in-house.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-002
Eff. January 8, 2024
Readoption Eff. March 27, 2024.

24 NCAC 06B .0203 Supplier Licensing {#sec-24-ncac-06b-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0203}

(a) The Director shall issue a Supplier License after finding that an Applicant meets the requirements of the Act and these Rules.

(b) It shall be unlawful for any Person to offer or provide services, goods, software, or components to a Sports Wagering Operator or Service Provider in this State without a valid Supplier License issued under G.S. 18C-907 and 24 NCAC 06A .0200.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0204 Provisional Supplier License {#sec-24-ncac-06b-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0204}

(a) The Director may issue a Provisional Supplier License to an Applicant whose submitted application facially contains all required information and materials such that the application may be deemed administratively sufficient.

(b) To be eligible to receive a Provisional Supplier License, an Applicant shall:

(1) note its request for a Provisional Supplier License in its application; and

(2) provide in its application written attestations that the Applicant, its Key Persons, and current employees subject to Background Investigations have not been convicted in any jurisdiction of a felony, any gambling offense, a criminal offense involving moral turpitude or obstruction of justice, or any criminal offense involving dishonesty or breach of trust within 10 years of application.

(1) has been subject to sanction, enforcement, or civil penalties by a Sports Wagering or gaming regulatory body of another state;

(2) if a corporate entity, is not registered to do business in the State and in good standing;

(3) is subject to delinquent federal, state, or local taxes; or

(4) is in bankruptcy proceedings.

(d) The Director shall provide a date certain for the expiration of a Provisional Supplier License. The expiration date shall be the sooner of:

(1) 180 Days from the date of the issuance of the provisional License; or

(2) the date the Director approves or denies the Application after completion of the Background Investigation.

(e) After the denial of an application, a Provisional Supplier License shall not be valid during the pendency of an Applicant's request for reconsideration or during the pendency of any appeal.

(f) The holder of a Provisional Supplier License is subject to all Rules and other Commission requirements as if fully-licensed, including all enforcement-related provisions.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0205 Payment of License Application Fee; Expenses for Denied License Application {#sec-24-ncac-06b-.0205 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0205}

(a) Upon filing of an application for a License or renewal, an Applicant shall pay by wire transfer of funds the applicable License application fee:

(1) One million dollars ($1,000,000) for an Operator License;

(2) Fifty thousand dollars ($50,000) for a Service Provider License; or

(3) Thirty thousand dollars ($30,000) for a Supplier License.

(b) An Applicant whose licensure application is denied will have its License application fee returned to it, less five percent for associated expenses incurred by the Commission to conduct the application review.

(c) If a licensure application is denied, remittance of the Applicant's licensing or application fee, less five percent, for associated expenses incurred by the Commission, will issue after the period to seek reconsideration ends or upon the Director's receipt of a signed written statement from the Applicant stating that it will not seek reconsideration or an appeal of the licensing decision. The Commission will retain the License fee of an unsuccessful Applicant during the pendency of any reconsideration or appeal period and during any legal proceeding arising from or related to the denial of the Applicant's licensing application.

(d) If an Applicant voluntarily elects to withdraw its application before the Director denies the application or takes other action that does not constitute an approval of the application, the Director may:

(1) treat such withdrawal as a de facto denial of the application and retain the License application review fee pursuant to Paragraph (b) of this Rule, or

(2) allow the Applicant to withdraw its application and refund the entire License application fee.

(e) The Director shall not have discretion to return the entire License application review fee for a withdrawn application if the Applicant is discovered to have made a materially fraudulent misrepresentation or omission in its submissions to the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0206 Written Designation Agreement {#sec-24-ncac-06b-.0206 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0206}

(a) In order to qualify for a Sports Wagering Operator License, the Applicant shall enter into and maintain a Written Designation Agreement with a Persons or Persons enumerated under G.S. 18C-905(a).

(b) The Applicant or Sports Wagering Operator shall submit an executed copy of the Written Designation Agreement with its application for licensure or renewal as a Sports Wagering Operator.

(1) All related and ancillary agreements between and among the signatory parties and their respective Affiliates shall be considered part of the Written Designation Agreement, regardless of how such agreements are denominated.

(2) Failure to include all related and ancillary agreements between the parties and their Affiliates with the application for licensure or renewal may be grounds for summary denial of the application or renewal application.

(3) A letter of intent to enter into a Written Designation Agreement is not a substitute for an executed Written Designation Agreement.

(1) The agreement shall be executed by duly authorized Individuals.

(2) The agreement shall state a clear contract term length, with any option to renew being contingent on the renewal of the Sports Wagering Operator's License.

(3) The agreement shall be governed by North Carolina law, with express consent of the parties to submit to the jurisdiction of the North Carolina court system to resolve any disputes that are not otherwise addressed through agreed-upon alternative dispute resolution methods such as arbitration or mediation.

(4) The agreement shall require any place of public accommodation be operated solely by the Licensed Sports Wagering Operator, in accordance with G.S. 18C-905(c) and 18C-926.

(5) The agreement shall not authorize the non-operator party to the Written Designation Agreement to engage in any regulated activity requiring a License under the Act unless it independently obtains a License and only engages in activities authorized by such License.

(6) The agreement shall be terminated if the Licensed Sports Wagering Operator has its License revoked, the Licensed Sports Wagering Operator surrenders its License pursuant to 24 NCAC 06A .0305, or the non-operator party loses its authority to enter a Written Designation Agreement under G.S. 18C-905.

(7) The agreement shall require that the non-operator party's employees be prohibited from Sports Wagering in accordance with G.S. 18C-902(i)(6) or (7), as applicable, and receive appropriate and applicable training about Persons prohibited from engaging in sports Wagering.

(8) The agreement shall be marked "confidential."

(d) The Commission may deny an application for a Sports Wagering Operator License or suspend or revoke a Sports Wagering Operator License if at any time it finds that the Written Designation Agreement would be disadvantageous to the interests of the State of North Carolina. A Written Designation Agreement may, without limitation, be considered disadvantageous to the interests of the State if:

(1) the Commission determines that the Written Designation Agreement would cause a violation of any of the applicable considerations set forth in the Act, Commission Rules, or State, federal, or local law;

(2) the Written Designation Agreement fails to meet one or more of the requirements in Paragraph (c) of this Rule; or

(3) the parties to the Written Designation Agreement fail to fulfill one or more of the requirements in Paragraph (c) of this Rule.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. June 22, 2024.

24 NCAC 06B .0207 Written Designation Agreement Breach, Discontinuance, or Other Cessation {#sec-24-ncac-06b-.0207 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0207}

(a) A Sports Wagering Operator shall promptly report to the Commission as soon as practicable, but at a minimum within five Days of the following with respect to the Written Designation Agreement:

(1) any modifications, changes, or alterations; or

(2) any breach, discontinuance, or other cessation.

(b) As contemplated by G.S. 18C-908(a), a Sports Wagering Operator's five-year License shall expire upon the earlier of five years or a breach, discontinuance, or other cessation of the Written Designation Agreement required under G.S. 18C-905. In the event the License expires for reason of breach, discontinuance, or other cessation, the Sports Wagering Operator shall engage in timely and complete efforts to wind up its operations and ensure payments and refunds are provided to Registered Players.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0208 Duties of the Operator and Service Providers {#sec-24-ncac-06b-.0208 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0208}

The Operator and its Service Providers shall make commercially reasonable efforts to meet G.S. 18C-910(a).

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2B-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0301 Authorized and Prohibited Sporting Events and Wager Types {#sec-24-ncac-06b-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0301}

(a) Sporting events that may be Wagered on include those listed in G.S. 18C-904(a). Of those events, only those categories of Sporting Events and their Wager Type authorized by the Commission and posted on the Commission's website may be offered for Sports Wagering by an Operator.

(b) Wagers of Wager Types approved by the Commission, on Sporting Events sanctioned by a Sports Governing Body or equivalent that is approved by the Commission, which comply with the following criteria, and do not involve criteria listed in Paragraph (c) of this Rule, are generally approved, and do not need specific approval subject to Rule .0302 of this Subchapter, prior to being offered by an Operator:

(1) the wager is based on statistical results which may be verified by a Data Source, box score, aggregation of box scores, or other statistical analysis;

(2) the wager is based on the performance of a single or group of rostered or otherwise registered participants; and

(3) the wager is based on the result of an outcome on the field of play, including the virtual field of play for eSports Competitions.

(1) eSports Competitions that:

(A) are not sanctioned by an approved Sports Governing Body or equivalent; or

(B) have not been endorsed by the Commission pursuant to the Rules set forth in Rule .0302 of this Subchapter;

(2) RESERVED FOR FUTURE USE;

(3) occurrences of injuries or penalties;

(4) whether officiating decisions will be upheld or reversed after replay review;

(5) disciplinary proceedings against a participant in a Sporting Event;

(6) High School Sporting Events or other Youth Sports;

(7) Fantasy Contests;

(8) Sporting Events or Wager Types in which the outcome has already been determined and is publicly known;

(9) Pari-Mutuel Wagering; and

(10) other categories of Sporting Event or Wager Type until the Sporting Event or Wager Type has been approved by the Commission in accordance with Rule .0302 of this Subchapter.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06B .0302 Petition for a Category of Sporting Event or Wager Type {#sec-24-ncac-06b-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0302}

(a) The Director shall have authority to review and approve proposed Wager Types and categories of Sporting Events before an Operator is permitted to offer the Wager to the public. A petitioner may petition the Director for approval of a new category of Sporting Event or Wager Type.

(b) A proposed new Sporting Event or Wager Type may be a variation of an authorized Sporting Event or Wager Type, a composite of authorized Sporting Events or Wager Type, or a new Sporting Event or Wager Type.

(c) A petition for a proposed new Sporting Event or Wager Type shall be in writing and shall include the following information:

(1) the names and addresses of petitioners;

(2) the name of the Sporting Event or Wager Type;

(3) whether the Sporting Event or Wager Type is a variation of an authorized Sporting Event or Wager Type, a composite of authorized Sporting Events or Wager Type, or a new Sporting Event or Wager Type;

(4) the name of the Operator serving as a sponsor of the proposed Sporting Event or Wager Type petition;

(5) a complete and detailed description of the Sporting Event or Wager Type for which approval is sought, including:

(A) a summary of the Sporting Event or Wager Type and how Sports Wagers would be placed and winning Sports Wagers would be determined;

(B) a draft of the proposed Wagering Rules, including a description of technology that would be used to offer the Sporting Event or Wager Type;

(C) Rules or voting procedures related to the Sporting Event or Wager Type, or existing Wagering Rules that would apply; and

(D) assurance that the Sporting Event or Wager Type meets the requirements of Paragraph (d) of this Rule;

(6) for the approval of an eSports Competition, complete information about:

(A) the proposed locations of the eSports Competition;

(B) the video game used for the eSports Competition, including, without limitation, the key role of game publishers as creators of the underlying video game;

(C) the eSports Competition Operator, whether the eSports Competition Operator is approved to host events by the video game publisher, and whether the eSports Competition Operator has an affiliation with the video game publisher;

(D) how the eSports Competition is conducted by the eSports Competition Operator, including, without limitation, eSports Competition rules; and

(E) an explanation on how the eSports Competition meets the event integrity requirements of the Commission;

(7) the name of the Sports Governing Body or equivalent;

(8) to the extent known by the Operator, a description of its policies and procedures regarding event integrity; and

(9) other information or material requested by the Director.

(d) The Sporting Event or Wager Type being requested shall meet the following criteria before the request may be approved:

(1) the outcome may be verified;

(2) the outcome may be generated by a reliable and independent process;

(3) the Sporting Event generating the outcome is conducted in a manner that ensures sufficient Integrity Monitoring controls exist so that the outcome may be trusted;

(4) the outcome is not likely to be affected by a Sports Wager placed; and

(5) the Sporting Event is conducted in conformity with applicable laws.

(e) The Director shall approve or reject requests of categories of Sporting Events and wager types not later than 14 Days after the request is made. The Director will consider the request, materials and relevant input from the Sports Governing Body or equivalent, or the conductor of the Sporting Event , prior to authorizing a Sporting Event or Wager Type.

(f) The Director may require an appropriate test or experimental period before granting final approval to a Sporting Event or Wager Type. The Director may subject technology that would be used to offer a Sporting Event or Wager Type to testing, investigation, and approval.

(g) The Director may grant, deny, limit, restrict, or condition a request made pursuant to this Rule. The Director may issue an order revoking, suspending, or modifying an approval of a Sporting Event or Wager Type granted under this Rule for a cause the Director considers reasonable.

(h) The Director shall notify Operators of additions, deletions, or changes regarding authorized Sporting Events and Wager Types. Once a particular category of Sporting Event or Wager Type is approved for its first use, it may be used on multiple events without further approval. The Commission may issue general approval for Operators to offer Wagers on enumerated categories of Sporting Events and Wager Types. Publishing an update to the Commission's Event Catalog on the Commission's website shall suffice for notice purposes.

(i) The Commission and Director reserve the right to prohibit the acceptance of Sports Wagers and may order the cancellation of Sports Wagers and require refunds on a Sporting Event or Wager Type for which Wagering would be contrary to the public policies of the State.

(j) If it is determined that an Operator has offered an unauthorized or prohibited Sporting Event or Wager Type, the Operator shall immediately cancel and refund Sports Wagers associated with the unauthorized or Prohibited Sporting Event or Wager Type. The Operator shall notify the Commission promptly after canceling and refunding the Sports Wagers. This notice shall include, without limitation, which Sports Wagers were canceled or refunded and the reasons for the cancellations or refund.

(k) The Director may use information it considers appropriate, including, but not limited to, information received from a Sports Governing Body or equivalent, to determine whether to authorize or prohibit Wagering on a particular Sporting Event or Wager Type.

(l) The Director may restrict, limit, or exclude Wagering on a Sporting Event or Wager Type if the Director determines that the restriction, limitation, or exclusion is required to ensure the integrity of the Operator.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0303 Limitations on Certain Sports Wagering for Good Cause {#sec-24-ncac-06b-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0303}

A Sports Governing Body or equivalent may submit to the Director in writing a request to restrict, limit, or exclude a certain type, form, or category of Sports Wagering with respect to Sporting Events of the body, if the Sports Governing Body or equivalent believes that the type, form, or category of Sports Wagering with respect to Sporting Events of the body may undermine the integrity or perceived integrity of the body or Sporting Events of the body.

(1) The request shall be submitted in the form and manner prescribed by the Director and shall include:

(a) the identity of the Sports Governing Body or equivalent and contact information for an Individual who will be the primary point of contact for questions related to the request;

(b) a description of the Sports Wagering information, Sporting Event, or Wager Type that is the subject of the request;

(c) information explaining why granting the request is required to protect the integrity of the event, or public confidence in the integrity of the event, that is the subject of the request. This may include, but is not limited to, information regarding credible threats to the integrity of the event that are beyond the control of the Sports Governing Body or equivalent to preemptively remedy or mitigate; and

(d) other information required by the Director.

(2) To ensure proper consideration, the request shall be sent to the Director at least 14 Days before the particular Sporting Event . At any time, however, a Sports Governing Body or equivalent may report information to the Director if it causes or results in allegations of Event Corruption, Match Fixing, the manipulation of an event, misuse of inside information, or other prohibited activity.

(3) Regarding requests received under this Rule, the Director shall review and seek comments from the Operators. The notification shall include the date by which written comments shall be submitted.

(4) After giving due consideration to comments received, the Director shall, after a demonstration of good cause from the requestor that the type, form, or category of Sports Wagering is likely to undermine the integrity or perceived integrity of the body or Sporting Events of the body, grant the request.

(5) The Director shall respond to a request concerning a particular event before the start of the event, or if it is not feasible to respond before the start of the event, not later than seven Days after the request is made.

(6) If the Director determines that the requestor is more likely than not to prevail in successfully demonstrating good cause for its request, the Director may provisionally grant the request of the Sports Governing Body or equivalent.

(7) Absent a provisional grant by the Director, Operators may continue to offer Sports Wagering on Sporting Events that are the subject of a request during the pendency of the Director's consideration of the applicable request.

(8) The Director may reconsider its decision if there is a material change in the circumstances related to the original request.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0304 Data Sources for Sports Wagering {#sec-24-ncac-06b-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0304}

(a) An Operator shall report to the Commission and Director the Data Sources that it uses to resolve Sports Wagers. The Commission may disapprove of a Data Source for any reason.

(b) Data Sources shall be subject to the following conditions:

(1) The Data Source and corresponding data shall be complete, accurate, reliable, timely, and available.

(2) The Data Source shall be appropriate to settle the category of Sporting Events and Wager Types for which it is used.

(3) The proprietor or manager of a Data Source that provides data directly to an Operator shall be Licensed by the Commission as a Supplier.

(4) The Data Source and corresponding data shall meet other conditions set by the Commission.

(1) the results of Tier One Sports Wagers on Sporting Events of an organization whether headquartered in the United States or elsewhere;

(2) the results of Tier Two Sports Wagers on Sporting Events of organizations that are not headquartered in the United States; or

(3) the results of Tier Two Sports Wagers on Sporting Events of organizations headquartered in the United States, unless the Sports Governing Body submits a notification to the Commission pursuant to Paragraph (d) of this Rule.

(d) A Sports Governing Body headquartered in the United States may notify the Commission that it desires Operators to use Official League Data to settle Tier Two Sports Wagers on Sporting Events of the Sports Governing Body. Notification shall be made in the form and manner as the Commission may require and shall include:

(1) identification information for the Sports Governing Body;

(2) identification and contact information for an Individual who will be the primary point of contact for issues related to the provision of Official League Data and compliance with the Act and these Rules;

(3) identification and contact information for designees that are or will be expressly authorized by the Sports Governing Body to provide Official League Data in North Carolina;

(4) copies of contracts relevant to the provision of Official League Data in North Carolina, including:

(A) copies of contracts between the Sports Governing Body and designees that are or will be expressly authorized by the Sports Governing Body to provide Official League Data in North Carolina;

(B) copies of contracts between the Sports Governing Body or its designees and Sports Wagering Operators in North Carolina; and

(5) other information required by the Commission.

(e) A Sports Governing Body may not submit a notification under Paragraph (d) of this Rule unless the Commission has authorized Operators to accept Tier Two Sports Wagers on athletic events of the Sports Governing Body.

(f) The Director shall notify Operators of a Sports Governing Body's notification within five Days of the Commission's receipt of the notification. If a Sports Governing Body does not so notify the Commission, an Operator is not required to use Official League Data for determining the results of Tier Two Sports Wagers on Sporting Events of that Sports Governing Body.

(g) Within 60 Days of the Commission notifying Operators of a Sports Governing Body notification to the Commission, or longer period as may be agreed between the Sports Governing Body and the applicable Operator, Operators shall use only Official League Data to determine the results of Tier Two Sports Wagers on Sporting Events of that Sports Governing Body, unless:

(1) the Sports Governing Body or its designee cannot provide a data feed of Official League Data to determine the results of a particular type of Tier Two Sports Wager, in which case Operators are not required to use Official League Data for determining the results of the applicable Tier Two Sports Wager until a data feed becomes available from the Sports Governing Body on commercially reasonable terms and conditions;

(2) an Operator demonstrates to the Commission that the Sports Governing Body or its designee will not provide a data feed of Official League Data to the Operator on commercially reasonable terms and conditions; or

(3) the designee of the Sports Governing Body does not obtain a Supplier License from the Commission to provide Official League Data to Operators to determine the results of Tier Two Sports Wagers, if and to the extent required by law.

(h) Beyond the 60 Day period referenced in Paragraph (g), an Operator may demonstrate at any time that the Sports Governing Body or its designee will not provide a data feed of Official League Data to the Operator on commercially reasonable terms and conditions, provided the parties have engaged in good-faith negotiations in connection with Official League Data and the Operator provides prior written notice to the Sports Governing Body.

(i) During the pendency of the Commission's determination as to whether a Sports Governing Body or its designee will provide a data feed of Official League Data on commercially reasonable terms, an Operator is not required to use Official League Data for determining the results of Tier Two Sports Wagers. The Commission's determination shall be made within 60 Days of the Operator providing the Commission with documentation that the Operator believes demonstrates that the Sports Governing Body or its designees will not provide a data feed of Official League Data to the Sports Wagering Operator on commercially reasonable terms. The following is a non-exclusive list of factors the Commission may consider in evaluating whether Official League Data is being offered on commercially reasonable terms and conditions for purposes of this Rule:

(1) The extent to which Operators have purchased the same or similar Official League Data on the same or similar terms, particularly in jurisdictions where a purchase was not required by law, or was required by law, but only if offered on commercially reasonable terms.

(2) The nature and quantity of the Official League Data, including its speed, accuracy, reliability, and overall quality, as compared to comparable non-official data.

(3) The quality and complexity of the process used to collect and distribute the Official League Data as compared to comparable non-official data.

(4) The availability of a Sports Governing Body's Tier Two Official League Data to an Operator from more than one authorized source.

(5) Market information, including price and other terms and conditions, regarding the purchase by Operators of comparable data to settle Sports Wagers in this State and other jurisdictions.

(6) The extent to which Sports Governing Bodies or their designees have made data used to settle Tier Two Sports Wagers available to Operators and terms and conditions relating to the use of that data.

(7) Other information the Commission considers relevant.

(j) At any time, a Sports Governing Body may give written notification to the Commission and Operators to which the Sports Governing Body or its designee provides Official League Data that the Sports Governing Body intends to stop providing Official League Data. The written notification shall specify in the date on which the Sports Governing Body shall stop providing Official League Data. The date shall be no fewer than seven days later than the date of the written notification. On receipt of the written notification, an Operator may use any Data Source that meets the requirements of Paragraph (b) of this Rule to determine the results of Tier Two Sports Wagers on athletic events of the Sports Governing Body.

(k) A Sports Governing Body on whose Sporting Events Sports Wagering is authorized may enter into commercial agreements with Operators or other entities in which the Sports Governing Body may share in the amount bet from Sports Wagering on Sporting Events of the Sports Governing Body. A Sports Governing Body is not required to obtain a License or another approval from the Commission to lawfully accept these amounts.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06B .0305 Cooperation with Investigations; Confidentiality of Certain Reported Information {#sec-24-ncac-06b-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0305}

(a) The Commission and Responsible Parties shall cooperate with investigations conducted by law enforcement agencies, Sports Governing Bodies or the equivalent, using commercially reasonable efforts to provide or facilitate the provision of Account-level Sports Wagering information. Disclosures under this Rule are subject to a Responsible Party's obligations to comply with federal, state, and local laws and regulations, including those relating to privacy and Personal Information.

(b) If a Sports Governing Body or the equivalent notifies the Commission that real-time information sharing for Wagers placed on its Sporting Events is required and desirable, Operators shall share with that Sports Governing Body or the equivalent or its designee in real-time, at the Account level:

(1) anonymized information regarding an Individual who places a Wager;

(2) the amount and Wager Type;

(3) the time the Wager was placed;

(4) relevant location information, including the Internet Protocol address if applicable;

(5) the outcome of the Wager; and

(6) records of Abnormal Wagering Activity.

(c) For purposes of Paragraph (b) of this Rule, "real-time information sharing" means the sharing of information at a commercially and technologically reasonable periodic interval of not less than once every 72 hours.

(d) A Sports Governing Body or the equivalent may use the information described by Paragraph (b) of this Rule solely for Sports Wagering integrity purposes.

(e) An Operator shall maintain the confidentiality of information provided by a Sports Governing Body or the equivalent to the Operator unless disclosure is required by this Chapter, the Commission, Director, law, or court order.

(f) The Commission, Director, Sports Governing Bodies or the equivalent, and Operators shall maintain the confidentiality of information described in Paragraph (b) of this Rule unless disclosure is required by these Rules, other law, or court order, or as authorized by the relevant Sports Governing Body or equivalent.

(g) The Commission shall maintain the confidentiality of information provided by Responsible Parties for compliance purposes unless disclosure is required by these Rules, other law, or court order.

(h) The Commission, Director, and Responsible Parties may disclose confidential information to another Responsible Party, a Sports Governing Body or the equivalent, a Sports Wagering regulating entity, a law enforcement entity, or other party to prevent or investigate potential Event Corruption.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0306 Contents of Wagering Rules {#sec-24-ncac-06b-.0306 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0306}

The Wagering Rules, required by 24 NCAC 06A .0501, shall address the following items regarding Wagers:

(1) types of Wagers accepted;

(2) minimum and maximum Wagers;

(3) the method for calculation and payment of winning Wagers;

(4) the effect of schedule changes for a Wagering Event;

(5) the method of notifying Players of odds or proposition changes;

(6) acceptance of Wagers at terms other than those posted;

(7) circumstances under which the Operator will void a Wager; and

(8) treatment of errors, late bets, and related contingencies;

(9) description of the process for handling incorrectly posted Wagering Events, odds, Wagers, or results;

(10) procedures related to pending winning Wagers;

(11) method of contacting the Operator for questions and disputes;

(12) description of Ineligible Persons;

(13) methods of funding a Wager;

(14) maximum payouts; however, limits shall only be established through limiting the amount of a Wager and cannot be applied to reduce the amount paid to a Player as a result of a winning Wager;

(15) a policy, in accordance with Rule .0307 of this Subchapter, by which the Operator may cancel Wagers for obvious errors pursuant to the Operator's Internal Controls, which shall include a definition and procedures for obvious errors;

(16) parlay Wager related rules;

(17) what is to occur when an event or a component of an event on which Wagers are accepted is canceled, including the handling of Wagers with multiple selections, for example parlays, where one or more of these selections is canceled; and

(18) other rule and related information the Commission or Director determines is required.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0307 Canceled or Voided Wagers {#sec-24-ncac-06b-.0307 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0307}

(a) Wagers shall not be canceled or voided without prior approval of the Director, unless the Wagers are canceled or voided by an authorized supervisory employee of the Operator, in accordance with this Rule or as provided for in an Operator's approved Internal Controls or Wagering Rules.

(b) Cancellation of an otherwise validly placed Wager by an Operator shall be nondiscretionary. An Operator may cancel or void a Wager without prior authorization of the Director only as provided for in an Operator's approved Internal Controls, Wagering Rules, or under the following circumstances:

(1) a Wager where after a Player has placed a Wager, the Wagering Event is canceled, postponed or rescheduled to a different date prior to completion of the Wagering Event;

(A) in the case of a Wager on a portion of a Wagering Event, that Wager shall be valid when the event is canceled, postponed, or rescheduled if the outcome of the affected portion was determined prior to the cancellation, postponement, or rescheduling; or

(B) an Operator may establish a timeframe in which an event may be rescheduled or postponed without canceling the Wager. This timeframe shall be tied to specific Wagering Events, subject to the approval of the Commission, and documented in the Wagering Rules;

(2) a change in the venue where a Wagering Event was scheduled to be held occurs after a Player has placed a Wager;

(3) a Wager when an Individual participant fails to participate in a Wagering Event and the outcome of the Wager is solely based on that Individual participant's performance;

(4) a Wager received for an act, or set of acts, to be performed during a Wagering Event when an act or acts does not occur and the ability to Wager on the non-occurrence of the event was not offered;

(5) a Wager received on whether a team will qualify to participate in post-season competitions when the number of teams allowed to participate in the post-season changes after a Player has placed a Wager;

(6) changes to rules by a Sports Governing Body or equivalent regarding the format or number of participants scheduled to participate in a defined phase of a Wagering Event or in the event that a defined phase is not played at all;

(7) when, prior to the start of the Wagering Event, a Player requests a Wager be canceled or voided due to an error in communicating the type, amount or parameters of the Wager; or

(8) when authorized or ordered by the Commission pursuant to this Rule.

(c) Where the Operator has a reasonable basis to believe there was an obvious error in the placement or acceptance of the Wager, the Operator may use its discretion to cancel the Wager without prior authorization from the Director. Obvious errors shall be defined in the Operator's Wagering Rules. Such errors include, but are not limited to:

(1) human error in the placement of the Wager;

(2) the Ticket does not correctly reflect the Wager; or

(3) equipment failure rendering a Ticket unreadable.

(d) An Operator may cancel or void a Wager for a material change in circumstances for a given Wagering Event or Wager Type occurs, provided:

(1) the Director approves the material change;

(2) the Operator documents the material change in its Wagering Rules; and

(3) the Operator displays what constitutes a material change to a Player at the time of placement of the Wager.

(e) On a monthly basis, the Operator shall report all Wagers canceled or voided without prior authorization from the Director, to the Director on a form and in a manner prescribed by the Director.

(f) For circumstances that are not set forth in Paragraphs (b), (c), or (d) of this Rule, an Operator may request that the Director authorize the cancellation or voiding of Wagers of a specific type, kind, or subject. An Operator shall submit its request to cancel or void the Wager in writing, and the request shall contain:

(1) a description of the type, kind, or subject of Wager the Operator is requesting to cancel or void;

(2) a description of facts relevant to the request; and

(3) an explanation why cancelling or voiding the Wager is in the best interests of the State or ensures the integrity of the Sports Wagering industry.

(g) When an Operator requests that the Director authorize the cancellation or voiding of one or more wagers, wagers related to the request shall be placed in a pending status until the Director rules on the request.

(h) The Operator shall provide any additional information requested by the Director to review and approve a request to cancel or void one or more wagers.

(i) The Director shall issue a written order granting or denying the request to cancel or void the Wager. In determining whether to grant or deny the request, the Director shall consider relevant factors, including whether:

(1) the alleged facts or other information provided to the Director implicate the integrity of the Wagering Event subject to the Wager or the Sports Wagering industry;

(2) the alleged facts or other information provided to the Director implicate possible illegal activity relating to the Wagering Event or the Sports Wagering industry;

(3) allowing the Wager would be unfair to Players; or

(4) allowing the Wager is contrary to public policy.

(j) No Wager subject to the request to cancel or void shall be redeemed, canceled, or voided, until the Director issues an order granting or denying the request to cancel.

(k) If the Director grants the request to cancel or void, the Operator shall make commercially reasonable efforts to notify Players of the cancellation or voiding of the Wager.

(l) The Director has discretion to order Operators to cancel or void Wagers on a specific Wagering Event or Wagers of a specific type or kind on a specific Wagering Event. In exercising its discretion, the Director shall apply the same factors described in Paragraphs (b), (c), and (d) of this Rule.

(m) A Player may request that the Director review Wagers declared canceled or voided by an Operator. If the Director concludes there is no reasonable basis to believe there was obvious error in the placement or acceptance of the Wager, and the reason for cancellation is not otherwise set out in Paragraphs (b), (c), or (d) of this Rule, the Director may order the Operator to honor the Wager.

(n) A Wager shall not be declared canceled or voided without the approval of an authorized supervisory employee of the Operator, unless the Director has issued an order requiring the Wager to be canceled or voided.

(o) If a Wager is declared canceled or voided, the Wager shall be refunded to the Player and that amount shall be deducted from the Gross Wagering Revenue.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024
Amended Eff. January 17, 2025.

24 NCAC 06B .0308 Tournaments, Contests, and Pools {#sec-24-ncac-06b-.0308 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0308}

(a) No Sports Wagering tournament, contest, or Pool shall be conducted unless the Operator, before the first time a tournament, contest, or Pool type is offered, files written notice with the Director of its intent to offer that tournament, contest, or Pool type and obtains approval from the Director.

(b) The Operator's request shall provide a detailed description of the tournament, contest, or Pool type and shall include the rules of the tournament, contest, or Pool, the requirements for entry, the entry fees, the Rake, and potential payouts. The request shall also indicate whether the proposed type involves a Shared Liquidity Pool available to Players in North Carolina and other jurisdictions with the Prize Pool being comprised of entry fees collected from Players in multiple jurisdictions.

(c) The request shall be submitted to the Director in writing via electronic mail. Requests shall be submitted at least 14 Days prior to start date of the tournament, contest, or Pool.

(d) Once an Operator receives approval to offer a tournament, contest, or Pool type the Operator shall not be required to seek additional approvals from the Director for subsequent types of tournament, contest, or pool offerings that differ from the approved request only with respect to the size, number of entries permitted, entry fee, or prize structure, or other minor variations as allowed by the Director.

(e) The Operator shall maintain a record of tournaments, contests, or Pools it offers, which shall address the:

(1) name or identification of the tournament, contest, or Pool;

(2) date and time the tournament, contest, or Pool occurred or will occur, if known;

(3) Sporting Events and Wager Type;

(4) rules concerning tournament, contest, or Pool play and participation; and

(5) for participating Players:

(A) unique Player identification;

(B) amount of entry fee collected, including promotional or bonus credits, and the date collected;

(D) amount of payouts paid, including promotional or bonus credits, and the date paid;

(6) total amount of entry fees collected, including promotional or bonus credits;

(7) total amount of payouts paid to Players, including promotional or bonus credits;

(8) total Rake, takeout, or fees collected;

(9) funding source amount or amounts comprising the Prize Pool;

(10) prize structure on payout;

(11) methodology for determining winner or winners; and

(12) current status of the tournament, contest, or Pool.

(f) The Operator shall be responsible for determining the Rake. The Operator's Rake collected from Players that enter a contest, tournament, or Pool while located in the State less any Rake Adjustment, if applicable, shall be considered, without any other deductions, Gross Wagering Revenue and is subject to tax requirements outlined in the Act and these Rules.

(1) At no time shall the calculation resulting from a Rake or Rake Adjustment be negative.

(2) For a contest, tournament, or Pool which uses shared liquidity available to Players in North Carolina and other jurisdictions, the Rake rate shall be the same for each of the jurisdictions participating.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0309 Managing Risk {#sec-24-ncac-06b-.0309 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0309}

An Operator may use systems that offset loss or manage or layoff risk in the operation of Sports Wagering pursuant to the Act and these Rules, including through liquidity pools, exchanges, or similar mechanisms in another approved jurisdiction in which the Operator, or an Affiliate or other third-party also holds a License or the equivalent, if adequate protections are continuously maintained to ensure sufficient funds are available to pay Winnings.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0310 Layoff Wagers {#sec-24-ncac-06b-.0310 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0310}

An Operator may accept Layoff Wagers placed by other Operators and place Layoff Wagers with other Operators to offset Sports Wagers.

(1) The Operator placing a Layoff Wager shall inform the Operator accepting the Wager that the Wager is being placed by an Operator and shall disclose their identity.

(2) The Operator may decline to accept a Layoff Wager in its sole discretion.

(3) Layoff Wagers shall be reported in writing to the Director within 72 hours.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-010
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0311 Exchange Wagering and Other Peer-to-Peer Wagering {#sec-24-ncac-06b-.0311 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0311}

Prior to offering Exchange Wagering or other peer-to-peer Wagering, an Operator shall obtain approval from the Director.

(1) The Rake taken on these Wagers shall be considered, without any deductions therefrom, Gross Wagering Revenue and is subject to tax requirements outlined in the Act and these Rules.

(2) One or more Operators may, with prior approval of the Commission, participate in a Sports Wagering Network in accordance with a written agreement that has been executed by the Operators. The agreement shall:

(a) designate the party responsible for the operation and administration of the network;

(b) identify and describe the role, authority, and responsibilities of the participating Operators;

(c) include a description of the process by which significant decisions that affect the operation of the network are approved and implemented by the participating Operators; and

(d) allocate the Gross Wagering Revenue and tax liability between the participating Operators to ensure the accurate reporting thereof.

(3) Parties to an agreement to participate in a Sports Wagering Network as set forth in Subparagraph (a)(2) of this Rule shall be jointly and severally liable for acts or omissions in violation of the Act, these Rules, or the policies of the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-011
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0312 Daily Summary {#sec-24-ncac-06b-.0312 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0312}

The Operator shall provide to the Director a daily summary of Sports Wagering Activity within the State, detailing transactions processed through the Sports Wagering System, provided in a format required by the Director, after the close of the Gaming Day within a time determined by the Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2C-012
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0401 Sports Wagering Standards {#sec-24-ncac-06b-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0401}

An Operator shall use a Sports Wagering System to offer, conduct, or operate Sports Wagering in accordance with applicable laws and these Rules. Only an Operator may process, accept, offer, or solicit Sports Wagers.

(1) The Operator shall comply with, and the Commission adopts and incorporates by reference, the GLI-33 Standards. The GLI-33 Standards are intended to supplement rather than supplant other technical standards and requirements under these Rules.

(2) A Sports Wagering System used to conduct Sports Wagering shall meet the specifications set forth in these Rules or other technical specifications as prescribed by the Commission. Failure to comply with the approved specifications, Internal Controls, or technical specifications may result in Disciplinary Action by the Commission.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-001
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0402 Testing, Certification, and Approval of Sports Wagering System {#sec-24-ncac-06b-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0402}

Prior to conducting Sports Wagering, and annually thereafter, the Sports Wagering System shall be submitted to an Independent Testing Laboratory. An operator shall not offer or use a Sports Wagering System to conduct Sports Wagering until after laboratory certification and Director approval. The Operator or Service Provider is responsible for costs associated with testing and obtaining certifications and approval.

(1) Unless otherwise authorized by the Commission or Director, the Independent Testing Laboratory shall be provided access to the Sports Wagering System's critical controlled software source code along with the means to verify compilation of the source code. The result of the compiled source code shall be identical to that in the software submitted for evaluation.

(2) If the Sports Wagering System meets or exceeds the specifications set forth in the Act, these Rules, and other technical specifications as prescribed by the Commission and Director, the Independent Testing Laboratory shall certify the Sports Wagering System. Operators and Service Providers are prohibited from offering Sports Wagering in North Carolina without certification.

(3) An Operator or its Service Provider may submit to the Director an alternative certification report of an Independent Testing Laboratory of a system in operation in another jurisdiction in the United States where the Operator or its Service Provider is Licensed or permitted, provided the following requirements are met:

(a) The alternative certification report shall certify the system to either the GLI-33 Standards, or, at the discretion of the Director, a standard considered to be the equivalent of the GLI-33 Standards.

(b) This alternative certification report shall include a list of critical files and associated signatures and an appendix which lists the differences of controlled items or processes required to be certified in North Carolina which were not certified in the jurisdiction in which the report was issued.

(c) On review of the alternative certification report, the Director will decide on whether to accept the certification or require additional information or documentation or testing.

(d) Where an alternative certification report is accepted by the Director:

(i) field testing of geolocation as described by Rule .0405 of this Subchapter shall still be conducted prior to commencing operations in North Carolina; and

(ii) certification against the specifications set forth in the Act, these Rules, and other technical specifications as prescribed by the Commission shall be required within 90 Days after commencing operations in North Carolina.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-002
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0403 Integration Requirements {#sec-24-ncac-06b-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0403}

(a) The Operator shall be responsible for the Sports Wagering realized through other Service Providers and Suppliers, and other Operators where applicable.

(b) The servers and other equipment of Service Providers and Suppliers critical to the Operator's sports wagering platform and operations will be considered as part of the Operator's Sports Wagering System and shall comply with the specifications provided in these Rules.

(c) The Operator shall guarantee that an integration with the critical servers and other equipment of another Operator is realized in a way that complies with the specifications provided in these Rules.

(d) An Independent Testing Laboratory shall conduct integration testing and certification for the critical services which comprise the Operator's Sports Wagering System prior to its deployment and as requested by the Commission or Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-003
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0404 Change Management Processes {#sec-24-ncac-06b-.0404 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0404}

(a) The Operator shall submit change management processes to the Director for approval. Documented change management processes shall describe evaluation procedures for identifying the criticality of updates and determining the updates that the Operator shall submit to an Independent Testing Laboratory for review and certification. These change management processes shall be:

(1) developed in accordance with the GLI-CMP Guide;

(2) approved by the Commission prior to their deployment; and

(3) audited at an annual interval by an Independent Testing Laboratory.

(b) The Operator shall submit quarterly change reports to the Independent Testing Laboratory for review to ensure risk is being assessed according to the change management processes and that documentation for changes is complete.

(c) At least once annually, the Operator shall have their products operating under the approved change management processes evaluated by an Independent Testing Laboratory. In order for the Operator to continue to offer the products as described above, the Operator's products shall be fully certified to the specifications set forth in these Rules and other technical specifications as prescribed by the Commission or Director and with formal certification documentation from the Independent Testing Laboratory. For good cause, the Operator shall be allowed to seek approval for extension beyond the annual approval if hardship is demonstrated. Whether to grant a hardship extension is in the sole discretion of the Director.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-004
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0405 Geolocation Requirements {#sec-24-ncac-06b-.0405 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0405}

Sports Wagers shall be initiated, received, and otherwise placed in the authorized geographic boundaries within the State of North Carolina and may not be intentionally placed or routed outside the State. The authorized geographic boundaries shall be made available by the Director and shall not include Indian Lands. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. 5361, the intermediate routing of electronic data relating to intrastate Sports Wagering authorized under the Act and these Rules shall not determine the location in which Sports Wagers are initiated and received.

(1) The Operator shall use geolocation services to:

(a) ensure that the Registered Player is located in the authorized geographic boundaries within the State of North Carolina when placing a Sports Wager;

(b) monitor and block unauthorized attempts to place Sports Wagers when an Individual or Player is physically outside the authorized geographic boundaries of the State of North Carolina at the time the Sports Wager is placed; and

(c) provide the Director with access to real-time geofence data, including any equipment or software necessary to view the real-time geofence data. The method, format, and equipment to access the real-time geofence data shall be approved by the Director. Operator may facilitate the Director's access to geofence data in conjunction with its geolocation Services Provider.

(2) The Operator shall trigger:

(a) a geolocation check prior to the placement of the first Wager after login and after a change of IP address; and

(b) recurring periodic geolocation checks prior to the placement of Wagers as follows:

(i) for static connections, at least every 20 minutes or 5 minutes if within 1 mile of the border of the authorized geographic boundaries; and

(ii) for mobile connections, at intervals to be based on a Player's proximity to the border of the authorized geographic boundaries with an assumed travel velocity of 70 miles per hour or a demonstrated average velocity of a roadway or path. This interval shall not exceed 20 minutes.

(3) Mechanisms shall be in place to detect software, programs, virtualization, and other technology that may obscure or falsify the Player's physical location to place Sports Wagers.

(4) The geolocation services used by an Operator shall be certified by an Independent Testing Laboratory, including applicable field testing, before its deployment.

(5) At least every 90 Days, an Operator shall review the functionality of the geolocations services to ensure the system detects and mitigates existing and emerging location fraud risks.

(6) Neither the location of the Registered Player nor the location of the Registered Player's device shall be checked or tracked when the Registered Player is not attempting to access an Operator's website or mobile application.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-005
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0406 Records of Sports Wagers {#sec-24-ncac-06b-.0406 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0406}

(a) For three years after a Sporting Event occurs, the Operator shall maintain records on all of the following for each Sports Wager as logged by the Sports Wagering System:

(1) the identity of the Registered Player placing the Sports Wager, if known; and

(2) the amount, type, time, location, and outcome of the Sports Wager, including the IP address, if available.

(b) The Operator shall disclose the records described in Paragraph (a) of this Rule to the Commission upon request.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-006
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0407 Location of Servers, Security, and Cloud Storage {#sec-24-ncac-06b-.0407 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0407}

Unless otherwise approved by the Director in writing, an Operator shall place servers or other information technology equipment directly related to the placement or resolution of a Sports Wager, other than back-up servers, in secure locations within the authorized geographic boundaries of the State of North Carolina on land that is not Indian Lands.

(1) The location of other technology and servers used by an Operator in connection with Sports Wagering shall be approved by the Director.

(2) For good cause shown, the Director may approve of the use of Internet or cloud-based hosting of duplicate data or data not related to transactional Wagering data upon written request of an Operator.

(3) Upon request, an Operator shall make accessible to the Commission, the Director, the Department of Revenue, and law enforcement its servers and other information technology equipment, whether or not the equipment is in North Carolina or another location out of state.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-007
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0408 Integrity and Security Assessments {#sec-24-ncac-06b-.0408 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0408}

Operators shall, within 90 Days after commencing operations in North Carolina, and annually thereafter, have integrity and security assessments of the Sports Wagering System conducted by a third-party contractor experienced in security procedures, including, without limitation, computer security and systems security. The third-party contractor shall be selected by the Operator and shall be subject to approval by the Director.

(1) Integrity and security assessments shall include a review of network vulnerability, application vulnerability, website vulnerability, wireless security, security policy and processes, security and privacy program management, technology infrastructure and security controls, security organization and governance, and operational effectiveness.

(2) The scope of the integrity and security assessments is subject to approval of the Director and shall include:

(a) a vulnerability assessment of digital platforms, Internet websites, mobile applications, internal, external, and wireless networks with the intent of identifying vulnerabilities or potential vulnerabilities of devices, the Sports Wagering System, and applications transferring, storing, or processing Personal Information or other Sensitive Information connected to or present on the networks;

(b) a penetration test of digital platforms, Internet websites, mobile applications, and internal, external, and wireless networks to confirm if identified vulnerabilities of devices, the Sports Wagering System, and applications are susceptible to compromise;

(c) a review of the firewall rules to verify the operating condition of the firewall and the effectiveness of its security configuration and rule sets performed on the perimeter firewalls and the internal firewalls;

(d) a security control assessment against the provisions adopted in these Rules, including those standards adopted in the technical security controls of the GLI-33 Standards, with generally accepted professional standards and as approved by the Director;

(e) if a cloud Service Provider is in use, an assessment performed on the access controls, account management, logging and monitoring, and over security configurations of their cloud tenant;

(f) an evaluation of information security services, payment services, geolocation services, and other services which may be offered directly by the Operator or involve the use of Service Providers or Suppliers; and

(g) other specific criteria or standards for the documented system security testing as prescribed by the Commission.

(3) To qualify as a third-party contractor, the third-party contractor shall:

(a) have relevant education background or in other ways provide relevant qualifications in assessing Sports Wagering Systems;

(b) obtain and maintain certifications sufficient to demonstrate proficiency and expertise as a network penetration tester by recognized certification boards, either nationally or internationally;

(d) meet other qualifications as prescribed by the Director.

(4) The full third-party contractor's security audit report containing the overall evaluation of Sports Wagering in terms of aspects of security shall be presented to the Director not later than 30 Days after the assessment is conducted and shall include:

(a) scope of review;

(b) name and company affiliation, contact information, and qualifications of the Individual or Individuals who conducted the assessment;

(d) findings, including identified or potential vulnerabilities;

(e) recommended corrective action, if applicable; and

(f) the Operator's response to the findings and recommended corrective action.

(5) It is acceptable for the audit report to leverage the results of prior assessments within the past year conducted by the same third-party contractor against standards, for example, ISO/IEC 27001, ISO/IEC 27017, ISO/IEC 27018, the NIST Cybersecurity Framework (CSF), the Payment Card Industry Data Security Standards (PCI-DSS), or the equivalent. This leveraging shall be noted in the third-party contractor's security audit report. This leveraging does not include critical components of a Sports Wagering System unique to the State which will require fresh assessments.

(6) If the third-party contractor's security audit report recommends corrective action, the Operator shall provide the Director with a remediation plan and risk mitigation plans which detail the Operator's actions and schedule to implement the corrective action.

(a) The remediation and risk mediation plans shall be presented within a time period prescribed by the Director, which shall be based on:

(i) the severity of the problem to be corrected;

(ii) the complexity of the problem to be corrected; and

(iii) the risks associated with the problem to be corrected.

(b) If an Operator does not implement critical corrective actions within the prescribed timeline, then it may be subject to Disciplinary Action, including Summary Suspension under 24 NCAC 06A .0335. Before seeking to institute Disciplinary Action, the Director shall evaluate the Operator's efforts to implement available or potential mitigating controls regarding the critical items, including the timeliness of Operator's efforts, its compliance with internal controls and relevant audit report recommendations, and the scope of relevant remediation and risk plans.

(c) Once any corrective action has been completed, the Operator shall provide the Director with documentation evidencing completion.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-008
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

24 NCAC 06B .0409 Quarterly Vulnerability Scans {#sec-24-ncac-06b-.0409 omnilex-key=us-nc-regs-official--title-24--24 NCAC 06B .0409}

(a) Either a qualified employee of the Operator or a qualified third-party contractor selected by the Operator and subject to approval of the Director shall run internal and external network vulnerability scans at least quarterly and after significant changes to the Sports Wagering System or network infrastructure.

(b) Testing procedures shall verify that 4 quarterly internal and external scans took place in the past 12 months and that re-scans occurred until "High Risk" or "Critical" vulnerabilities were resolved or accepted via a formal risk acceptance program.

(1) The Operator shall submit their documented vulnerability management program that describes their risk acceptance program to the Director.

(2) Internal scans shall be performed from an authenticated scan perspective. External scans may be performed from an uncredentialed perspective.

(c) Verification of scans shall be submitted to the Director on a quarterly basis and within 30 Days of running the scan. The scan verifications shall include a remediation plan and risk mitigation plans for those vulnerabilities not able to be resolved. The severity of the vulnerabilities may be adjusted by the Operator if adhering to a formal, accepted vulnerability management plan.

(d) The Commission or Director may impose Disciplinary Action in the event of critical unresolved vulnerabilities or vulnerabilities that continue unabated that are not a result of the implementation of mitigating control.

History

Authority G.S. 18C-114(a)(14)
Previously adopted as Rule 2D-009
Eff. January 8, 2024
Readopted Eff. March 27, 2024.

Title 24 NCAC — Independent Agencies

Chapter 01 NC Housing Finance Agency

Subchapter A

24 NCAC 01A .0101 General Information {#sec-24-ncac-01a-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0101}

24 NCAC 01A .0102 Purposes: Functions: Duties {#sec-24-ncac-01a-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0102}

24 NCAC 01A .0103 Composition of Board of Directors {#sec-24-ncac-01a-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0103}

24 NCAC 01A .0104 Definitions {#sec-24-ncac-01a-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0104}

24 NCAC 01A .0105 Forms {#sec-24-ncac-01a-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01A .0105}

Subchapter B

24 NCAC 01B .0101 Rule-Making and Administrative Hearing Procedures {#sec-24-ncac-01b-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0101}

24 NCAC 01B .0102 Declaratory Rulings {#sec-24-ncac-01b-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0102}

24 NCAC 01B .0103 Contested Case Hearings {#sec-24-ncac-01b-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0103}

24 NCAC 01B .0104 Declaratory Rulings {#sec-24-ncac-01b-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0104}

24 NCAC 01B .0105 Petitions for Rulemaking {#sec-24-ncac-01b-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01B .0105}

Subchapter C

24 NCAC 01C .0101 Modification or Repeal {#sec-24-ncac-01c-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01C .0101}

24 NCAC 01C .0102 Severability {#sec-24-ncac-01c-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01C .0102}

Subchapter D

24 NCAC 01D .0101 Objectives {#sec-24-ncac-01d-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0101}

24 NCAC 01D .0102 Eligible Persons and Families {#sec-24-ncac-01d-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0102}

24 NCAC 01D .0103 Persons and Families of Moderate Income {#sec-24-ncac-01d-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0103}

24 NCAC 01D .0104 Income Limits {#sec-24-ncac-01d-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0104}

24 NCAC 01D .0201 Eligible Borrower {#sec-24-ncac-01d-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0201}

24 NCAC 01D .0202 Eligible Properties {#sec-24-ncac-01d-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0202}

24 NCAC 01D .0203 Form of Mortgages to Be Purchased by the Agency {#sec-24-ncac-01d-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0203}

24 NCAC 01D .0204 Compliance with Tax Act {#sec-24-ncac-01d-.0204 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0204}

24 NCAC 01D .0301 Eligible Lender Contract Forms {#sec-24-ncac-01d-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0301}

24 NCAC 01D .0302 Reinvestment Mortgage Interest Rate {#sec-24-ncac-01d-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0302}

24 NCAC 01D .0303 Servicing Agreement {#sec-24-ncac-01d-.0303 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0303}

24 NCAC 01D .0304 Additional Documentation {#sec-24-ncac-01d-.0304 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0304}

24 NCAC 01D .0305 Forms to Accompany Mortgage Loans Approved by the Agency {#sec-24-ncac-01d-.0305 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0305}

24 NCAC 01D .0401 Allocation of Funds {#sec-24-ncac-01d-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0401}

24 NCAC 01D .0402 Fair Opportunity to Participate {#sec-24-ncac-01d-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0402}

24 NCAC 01D .0501 Creation of Fund {#sec-24-ncac-01d-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0501}

24 NCAC 01D .0502 Eligibility {#sec-24-ncac-01d-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0502}

24 NCAC 01D .0503 Fund Operation and Administration {#sec-24-ncac-01d-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0503}

24 NCAC 01D .0601 Purpose {#sec-24-ncac-01d-.0601 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0601}

24 NCAC 01D .0602 Eligibility {#sec-24-ncac-01d-.0602 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0602}

24 NCAC 01D .0603 Procedures {#sec-24-ncac-01d-.0603 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0603}

24 NCAC 01D .0604 Mcc Commitment {#sec-24-ncac-01d-.0604 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01D .0604}

Subchapter E

24 NCAC 01E .0101 Federal Leased Housing Programs {#sec-24-ncac-01e-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01E .0101}

24 NCAC 01E .0102 Actions in Accordance with Federal Regulations {#sec-24-ncac-01e-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01E .0102}

Subchapter F

24 NCAC 01F .0101 Purpose of Assistance {#sec-24-ncac-01f-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0101}

24 NCAC 01F .0102 Background of Assistance {#sec-24-ncac-01f-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0102}

24 NCAC 01F .0201 Project Planning Loans {#sec-24-ncac-01f-.0201 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0201}

24 NCAC 01F .0202 Site Development and Off-Site Improvements Grants {#sec-24-ncac-01f-.0202 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0202}

24 NCAC 01F .0203 Technical Assistance Grants {#sec-24-ncac-01f-.0203 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0203}

24 NCAC 01F .0301 Eligible Housing Programs {#sec-24-ncac-01f-.0301 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0301}

24 NCAC 01F .0302 Eligible Counties {#sec-24-ncac-01f-.0302 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0302}

24 NCAC 01F .0401 State Appalachian Development Plan {#sec-24-ncac-01f-.0401 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0401}

24 NCAC 01F .0402 Identification in Annual Investment Program {#sec-24-ncac-01f-.0402 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0402}

24 NCAC 01F .0403 Approval of Individual Projects {#sec-24-ncac-01f-.0403 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0403}

24 NCAC 01F .0501 Duties and Functions of State Implementing Agency {#sec-24-ncac-01f-.0501 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0501}

24 NCAC 01F .0502 Requirements for Accounting: Audits: and Reports {#sec-24-ncac-01f-.0502 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0502}

24 NCAC 01F .0503 Reports on Disposition of Funds {#sec-24-ncac-01f-.0503 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0503}

24 NCAC 01F .0504 Waiver of Loan Repayment {#sec-24-ncac-01f-.0504 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0504}

24 NCAC 01F .0505 Agreement Between Agency and Sponsor {#sec-24-ncac-01f-.0505 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01F .0505}

Subchapter G

24 NCAC 01G .01 Purpose {#sec-24-ncac-01g-.01 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .01}

24 NCAC 01G .02 Method {#sec-24-ncac-01g-.02 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .02}

24 NCAC 01G .03 Loan Terms {#sec-24-ncac-01g-.03 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .03}

24 NCAC 01G .04 Certifications {#sec-24-ncac-01g-.04 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .04}

24 NCAC 01G .05 Persons and Families of Lower Income {#sec-24-ncac-01g-.05 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .05}

24 NCAC 01G .06 Reports {#sec-24-ncac-01g-.06 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .06}

24 NCAC 01G .07 Guaranty {#sec-24-ncac-01g-.07 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .07}

24 NCAC 01G .08 Default {#sec-24-ncac-01g-.08 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .08}

24 NCAC 01G .09 Proof of Loss {#sec-24-ncac-01g-.09 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .09}

24 NCAC 01G .10 Claims Payment {#sec-24-ncac-01g-.10 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .10}

24 NCAC 01G .11 Sale or Transfer of Loans {#sec-24-ncac-01g-.11 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .11}

24 NCAC 01G .12 Cancellation {#sec-24-ncac-01g-.12 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .12}

24 NCAC 01G .13 Forms {#sec-24-ncac-01g-.13 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .13}

24 NCAC 01G .14 Use of Forms {#sec-24-ncac-01g-.14 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01G .14}

Subchapter H

24 NCAC 01H .0101 Objectives {#sec-24-ncac-01h-.0101 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0101}

24 NCAC 01H .0102 Persons and Families of Lower Income {#sec-24-ncac-01h-.0102 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0102}

24 NCAC 01H .0103 Persons and Families of Moderate Income {#sec-24-ncac-01h-.0103 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0103}

24 NCAC 01H .0104 Method {#sec-24-ncac-01h-.0104 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0104}

24 NCAC 01H .0105 Notice of Funds Availability {#sec-24-ncac-01h-.0105 omnilex-key=us-nc-regs-official--title-24--24 NCAC 01H .0105}