1. (1) The commissioner may impose sanctions or penalties on a federation, charitable organization or federated community campaign manager for violating these regulations, or other applicable provisions of law. The commissioner will determine the appropriate sanction and/or penalty up to and including removal from the current and future annual solicitation campaigns. In determining the appropriate sanction and/or penalty, the commissioner will consider previous violations, harm to employee confidence in SEFA, and any other relevant factors. The commissioner may bar a federation or charitable organization from serving as a federated community campaign for a period not to exceed three campaign periods, if it is determined that the federation or charitable organization has violated any provision of these regulations. A federation, charitable organization or federated community campaign will be notified in writing of the commissioner’s intent to sanction and/or penalize, and will have 10 business days from the date of receipt of the notice to submit a written response. The commissioner’s final decision will be communicated in writing to the federation, charitable organization, or federated community campaign, with a copy to the appropriate local SEFA committee and the statewide SEFA council.
2. (2) Prior to being allowed to serve as a federated community campaign, a federation, charitable organization or federated community campaign sanctioned or penalized under any provision of these regulations must demonstrate to the satisfaction of the commissioner that it has taken corrective action to resolve the underlying basis for the sanction and/or penalty and has implemented reasonable and appropriate controls to ensure that the situation will not occur again.
3. (b) At the commissioner’s discretion, federated community campaigns may be directed to suspend distribution of current and future SEFA donations from state employees to participants. FCCMs shall immediately place suspended contributions in an interest-bearing account until directed by the commissioner to do otherwise and shall provide an interim accounting, prepared in the manner directed by the commissioner, to the commissioner.

(a)