(a) An entity may appeal a sanction, other than a reprimand, unless the sanction was ordered or directed by the federal government, by delivering to the executive director a written notice of appeal within 10 working days after the effective date of the sanction as specified in the notice of sanction. If the notice of appeal is timely delivered, the entity will be given the opportunity for an informal hearing before the executive director. The executive director will set a time for the hearing at the executive director's earliest convenience. The executive director will set time the maximum allowed for oral presentations and the procedure for written documents to be presented by the entity. After the hearing the executive director will make a determination on the imposition of the sanction and may impose a lesser sanction. The executive director will notify the entity in writing within 5 working days of the executive director's determination on the appeal.
(b) If the entity is dissatisfied with the determination of the executive director, the entity may request an administrative hearing under §1.21 et seq. of this title (relating to Procedures in Contested Cases). To be effective the request must be received by the executive director within 10 working days after the date that the executive director mails the notification of determination under subsection (a) of this section.
(c) The proposal for decision will be presented to the commission at a regularly scheduled open meeting. The commission may consider oral presentations. The commission will make a determination based on the proposal for decision. The commission's determination on the proposal for decision will be adopted by minute order and reflected in the minutes of the meeting.
(d) If an appeal to the executive director or by an administrative hearing, as appropriate, is not timely requested under this section, the executive director will issue a final order imposing the sanction when the deadline for requesting an appeal has passed. If an appeal is timely requested, the executive director will issue a final order based on one of the following:
  (1) the executive director's determination under subsection (a) of this section; or
  (2) the commission's determination under subsection (c) of this section.
(e) If the only sanction being imposed is a reprimand, the entity may appeal the reprimand by delivering to the executive director a written notice of appeal and written documentation disputing the reprimand within 10 working days after the effective date of the sanction as specified in the notice of sanction. The executive director will make the determination on an appeal and issue a final order under this subsection. A final order issued under this subsection is not subject to judicial review, except as required by law.
(f) A sanction is effective on the later of the date specified in the notice of sanction under §10.253 of this subchapter (relating to Notice of Sanction; Suspension) or the date of, or specified in, the final order issued by the executive director under this section.
(g) Subsections (b) - (e) of this section do not apply to the sanction of removal a person's or a firm's precertification under §10.254(b) of this subchapter (relating to Available Sanctions). The executive director may not delegate authority provided under subsection (a) of this section for the appeal of removal a person's or a firm's precertification under subsection (b) of this section.

Source Note: The provisions of this §10.256 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000