(a) Occupations Code, §2301.801 and §2302.354, and Transportation Code, §503.095 govern the amount of a civil penalty that may be assessed by the department against a license holder.
(b) In determining the amount of civil penalty to assess the department will consider the following aggravating factors:
  (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited act, and the harm or potential harm to the safety of the public;
  (2) the economic damage to the public caused by the violation;
  (3) any history of previous violations including whether the license holder previously entered into an agreed order with the department or otherwise received a warning or reduced penalty;
  (4) the amount necessary to deter a future violation; and
  (5) any other matter that justice may require, including:
    (A) the number of violations or number of consumers harmed by violation(s);
    (B) whether the consumer received a title;
    (C) whether the license holder misused license plates or temporary tags;
    (D) whether the license holder attempted to conceal a violation;
    (E) whether the act constituting the violation was intentional, premeditated, knowing, or grossly negligent; and
    (F) whether an order issued by the department was violated.
(c) In determining whether license revocation is appropriate, the department will consider the following factors:
  (1) whether the license holder is unfit under standards governing the occupation, including qualifications for a license;
  (2) whether the license holder made a material misrepresentation in any written communication or information provided to the department;
  (3) whether the license holder willfully defrauded a purchaser;
  (4) whether the license holder misused license plates or temporary tags, including whether the license holder attempted to use an internet-down tag to avoid inspection requirements;
  (5) whether the license holder failed to fulfill a written agreement with a retail purchaser of a vehicle or motor vehicle; and
  (6) whether the license holder failed to attend an approved dealer training seminar as ordered in an agreed final order
(d) The department will consider the following mitigating factors in determining the amount of civil penalty to assess or whether license revocation is appropriate:
  (1) acknowledgment by the licensee of any wrongdoing;
  (2) willingness to cooperate with the department; and
  (3) efforts to correct a violation.
(e) The department will publish a disciplinary matrix on the department website to provide guidance to license holders on the administrative penalties and other sanctions that may be assessed for the most common violations. The department will consider the disciplinary matrix published at the time of the violation; however, the disciplinary matrix does not prevent the department from seeking administrative penalties and other sanctions above or below the recommended ranges listed in the disciplinary matrix. Also, the disciplinary matrix does not prevent the board or the board's delegate from ordering administrative penalties and other sanctions above or below the recommended ranges listed in the disciplinary matrix.

Source Note: The provisions of this §224.54 adopted to be effective June 1, 2024, 49 TexReg 2771