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Rule No.Rule Title
2086.6Operating Plan Required
Rule TextAs part of the exchange wagering license application, and any renewal application, the applicant shall submit a detailed operating plan. The operating plan shall address the following: (a) A detailed report of the daily operation of the exchange. (b) Management of customer accounts including deposits, withdrawals, debits and credits. This shall include: (1) A policy to prevent commingling of funds; and (2) Evidence of an established account with a Federal Deposit Insurance Corporation (FDIC) insured bank in which all funds of the account holders will be deposited. This shall include evidence that account holder's funds are segregated and held in a separate FDIC insured bank account of the exchange provider, and that the funds shall not be used for any purpose other than those required by the account holder's exchange wagering transactions. (c) Technology and hardware and software systems information, which shall include a data security policy as provided under Business and Professions Code section 19604.5(d), as well as a policy for the notification of the Board and account holders of any unauthorized access that may compromise account holders' personal information. (d) Financial information that demonstrates the financial resources to operate an exchange and a detailed budget that shows anticipated revenue, expenditures and cash flows by month projected for the term of the license. (e) Document retention policies including those related to account holder personal information and wagering information. (f) A customer complaint and conflict resolution process. (g) Programs for responsible wagering. (h) The requirements for exchange wagering accounts established and operated for natural persons whose principal residence is outside of the state, which for the purposes of these rules, shall apply only to wagering on California races. NOTE: Authority cited: Authority: Sections 19420, 19440, 19590 and 19604.5, Business and Professions Code. Reference: Sections 19593 and 19604.5(e)(4), Business and Professions Code. HISTORY: 1. New rule filed 8-6-13; effective 8-6-13.
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