(a) Audits.
  (1) The Commission staff may:
    (A) conduct on-site audits without prior notice to an approved provider; and
    (B) enroll and attend a course without identifying themselves as employees of the Commission for purposes of auditing a course.
  (2) An audit report indicating noncompliance with the Act or Commission rules may be treated as a written complaint against the approved provider concerned.
(b) Complaints, investigations, and hearings.
  (1) The Commission shall investigate complaints against approved providers which allege acts constituting violations of the Act, Chapter 1102, and Commission rules.
  (2) Complaints must be in writing, and the Commission may not initiate an investigation, or take action against an approved provider based on an anonymous complaint.
  (3) Commission staff may initiate a complaint for any violation of the Act, Chapter 1102, and Commission rules, including a complaint against an approved provider, if a course completion certificate or other document filed with the Commission provides reasonable cause to believe a violation of this subchapter has occurred.
  (4) The Commission shall provide the approved provider named in the complaint a copy of the complaint.
  (5) Proceedings against approved providers will be conducted in the manner required by §1101.657 of the Act, the Administrative Procedure Act, Chapter 2001, Texas Government Code, and Chapter 533 of this title (relating to Practice and Procedure).
(c) Cooperation with audit or complaint investigation. An approved provider shall provide records in the provider's possession for examination by the Commission or provide such information as is requested by the Commission not later than the 14th day after the date of receiving a request for examination of records or information.
(d) Grounds for disciplinary action against an approved provider.
  (1) The following acts committed by an approved provider or qualified instructor acting on behalf of the provider, are grounds for disciplinary action by the Commission against the provider:
    (A) procuring or attempting to procure approval for a provider or course by fraud, misrepresentation or deceit, or by making a material misrepresentation of fact in an application filed with the Commission;
    (B) making a false representation to the Commission, either intentionally or negligently, that a person had attended a course or a portion of a course for which credit was awarded, that a person had completed an examination, or that the person had completed any other requirement for course credit;
    (C) aiding or abetting a person to circumvent the requirements for attendance established by these sections, the completion of any examination, or any other requirement for course credit;
    (D) failing to provide, not later than the 14th day after the date of a request, information requested by the Commission as a result of a complaint which would indicate a violation of these sections;
    (E) making a materially false statement to the Commission in response to a request from the Commission for information relating to a complaint against the approved provider;
    (F) disregarding or violating a provision of the Act or Commission rules; or
    (G) a provider of qualifying education failing to maintain sufficient financial resources to continue operation of the provider.
  (2) If the Commission receives a complaint, or is presented with other evidence acceptable to the Commission alleging that a provider or instructor is not adequately teaching to the curriculum standards as required by this chapter, the Commission may initiate a complaint against that provider.
  (3) If after an investigation the Commission determines that a provider or instructor engaged in any of the acts listed in this subsection, or failed to teach to the curriculum standards as required by this chapter, the Commission may take the following disciplinary action against a provider:
    (A) reprimand;
    (B) impose an administrative penalty;
    (C) require additional education; or
    (D) suspend or revoke approval.
(e) Probation. The Commission may probate an order of suspension or revocation issued under this section upon reasonable terms and conditions.

Source Note: The provisions of this §535.67 adopted to be effective January 1, 2015, 39 TexReg 9669; amended to be effective December 11, 2019, 44 TexReg 7702; amended to be effective June 11, 2023, 48 TexReg 2948