(1) The department may confiscate a temporary card dealer license by issuing a temporary cease and desist order based on a finding of any of the following conditions:

(a) the holder of such license has been placed or remains in actual or constructive custody as a result of any felony or gambling-related misdemeanor and is awaiting trial on such criminal charges; or

(b) the department, pursuant to ARM 23.16.203(1), has notified the holder of such a license of the department's intent to deny a permanent dealer license to the holder.