Sec. 161.406.  ADMINISTRATIVE PENALTY.  (a)  The department may impose an administrative penalty on a contractor who violates this subchapter.
(b)  The amount of the penalty may not exceed $10,000 a day for a violation.  Each day a violation continues or occurs is a separate violation for the purpose of imposing a penalty.
(c)  The penalty amount shall be based on:
(1)  the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;
(2)  the history of previous violations;
(3)  the amount necessary to deter a future violation;
(4)  efforts to correct the violation;  and
(5)  any other matter that justice may require.
(d)  The enforcement of the penalty may be stayed during the time the order is under judicial review if the contractor pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty.  A contractor who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the department to contest the affidavit as provided by those rules.
(e)  The attorney general may sue to collect the penalty.
(f)  A proceeding to impose the penalty is considered to be a contested case under Chapter 2001, Government Code.
Added by Acts 2001, 77th Leg., ch. 416, Sec. 1, eff. Sept. 1, 2001.