General. The Director may initiate Commission proceedings for imposition of a penalty or sanction against a licensee if a licensee: Violates a provision of Regulation .03 of this chapter; Fails to timely or satisfactorily complete a corrective action plan required by the Commission; Violates a term of a settlement agreement; or Engages in any conduct that exposes the State’s gaming program to a serious and imminent risk of harm to its integrity, security, or profitability. Initiation of Commission Proceedings. The Director shall initiate Commission proceedings for the imposition of a penalty or sanction on a licensee by scheduling a Commission hearing in accordance with COMAR 36.01.02.06 on the alleged violation and providing the licensee with written notice of the: Recommendation for imposition of the penalty or sanction; Basis for the recommendation for imposition of the penalty or sanction; Consequences of a decision by the Commission to impose a penalty or sanction; Date, time and location of the hearing; and Applicable hearing rights.