(a) The Texas Health and Human Services Commission (HHSC) may impose an administrative penalty on a person licensed under the Act who violates the Act, this chapter, or an order adopted under this chapter.
(b) The amount of the penalty may not exceed $1,000 for each violation. Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty.
(c) The amount shall be based on:
  (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;
  (2) the threat to health or safety caused by the violation;
  (3) the history of previous violations;
  (4) the amount necessary to deter a future violation;
  (5) whether the violator demonstrated good faith efforts to come into compliance; and
  (6) any other matter that justice may require.
(d) If HHSC initially determines that a violation occurred, HHSC shall give written notice of the report by certified mail to the person.
(e) The notice under subsection (d) of this section shall include:
  (1) a brief summary of the alleged violation;
  (2) a statement of the amount of the recommended penalty; and
  (3) a statement of the person's right to a hearing on the occurrence of the violation, the amount of the penalty, or both.
(f) Within 20 calendar days after the date the person receives the notice under subsection (d) of this section, the person in writing may:
  (1) accept the determination and recommended penalty of HHSC; or
  (2) make a request for a hearing on the occurrence of the violation, the amount of the penalty, or both.
(g) If the person accepts the determination and recommended penalty or if the person fails to respond to the notice, the executive commissioner or the executive commissioner's designee by order shall approve the determination and impose the recommended penalty.
(h) If the person requests a hearing, the executive commissioner shall refer the matter to the State Office of Administrative Hearings (SOAH), which will set the hearing date. HHSC shall give written notice of the time and place of the hearing to the person. An administrative law judge with SOAH will conduct the hearing.
(i) The administrative law judge will make findings of fact and conclusions of law and issue to the executive commissioner a proposal for a decision about the occurrence of the violation and the amount of a proposed penalty.
(j) Based on the findings of fact, conclusions of law, and proposal for a decision, the executive commissioner by order may:
  (1) find that a violation occurred and impose a penalty; or
  (2) find that a violation did not occur.
(k) The notice of the order under subsection (j) of this section that HHSC sends to the person in accordance with Texas Government Code Chapter 2001 (relating to Administrative Procedure) must include a statement of the right of the person to judicial review of the order.

Source Note: The provisions of this §509.107 adopted to be effective December 4, 2023, 48 TexReg 7064