(a) At any time after the filing of a complaint, an informal settlement conference may be held prior to the contested case hearing for the purpose of:
  (1) simplifying the issues;
  (2) considering proposed admissions or stipulations of fact;
  (3) reviewing the procedure to govern the contested case hearing;
  (4) exchanging witness lists and agreeing to limit the number of witnesses; and/or
  (5) doing any act that may simplify the proceedings, and dispose of matters in controversy, including settlement of issues in dispute and preparation of an agreed order for presentation to the board as provided herein.
(b) A licensee or applicant may request an informal settlement conference; however, the decision to hold a conference shall be made by the executive director or the investigation committee.
(c) Participation in an informal settlement conference shall not be mandatory for the licensee or applicant, nor is it a prerequisite to a formal hearing.
(d) The executive director or staff shall decide upon the time, date, and place of the informal settlement conference and provide written notice to the licensee or applicant of the same. Notice shall be provided no less than 10 days prior to the date of the informal settlement conference to the last known address of the licensee or applicant. The 10 days shall begin on the date the notice is sent electronically or deposited into the mail. The licensee or applicant may waive the 10-day notice requirement in writing.
  (1) The notice shall inform the licensee or applicant of the following:
    (A) the nature of the alleged violation;
    (B) that the licensee may be represented by legal counsel;
    (C) that the licensee or applicant may offer the testimony of witnesses and present other evidence as may be appropriate;
    (D) that board members may be present;
    (E) that a representative of the office of the attorney general will be present;
    (F) that the licensee's or applicant's attendance and participation is voluntary;
    (G) that the complainant and any client involved in the alleged violations may be present; and
    (H) that the informal settlement conference shall be cancelled if the licensee or applicant notifies the executive director or staff that he or she will not attend.
  (2) A copy of the board's rules may be referenced with the notice of the informal settlement conference.
(e) The notice of the informal settlement conference shall be sent to the complainant at his or her last known address. The complainant shall be informed that he or she may appear and testify or may submit a written statement for consideration at the informal settlement conference. The complainant shall be notified if the conference is cancelled.
(f) Participants in the informal settlement conference may include board members, agency staff, the complainant, the licensee or applicant, attorneys representing any of the participants, and any other persons determined by the investigation committee or the executive director or board's designee to be necessary for proper conduct of the conference. All other persons shall be excluded.
(g) The informal settlement conference shall not follow the procedures established in this chapter for contested cases and formal hearings.
(h) The licensee, the licensee's attorney, investigation committee members, and board staff may question witnesses, make relevant statements, present statements of persons not in attendance, and present such other evidence as may be appropriate.
(i) The board's attorney from the office of the attorney general shall attend the informal settlement conferences to advise the board members, executive director, and staff.
(j) The licensee or applicant shall be afforded the opportunity to make statements that are material and relevant.
(k) Access to the board's investigative file may be prohibited or limited in accordance with the Administrative Procedure Act (APA) and Texas Register Act (TRA).
(l) No formal recording of the informal settlement conference shall be made.
(m) At the conclusion of the informal settlement conference, the investigation committee members, the executive director, or staff may propose an informal disposition of a complaint or contested case to the respondent subject to the board's approval. The informal disposition may include any disciplinary action authorized by the Act and rules. The investigation committee, the executive director, or staff may also close the complaint investigation because the board lacks jurisdiction, a violation of the act or rules was not established, or determine further investigation is required.

Source Note: The provisions of this §343.40 adopted to be effective November 11, 1993, 18 TexReg 7554; amended to be effective September 1, 2023, 48 TexReg 4256