(a) The available sanctions, in order of increasing severity, are:

(1) a reprimand;

(2) prohibition from participating in a specified agreement, whether the agreement was previously awarded or to be awarded or whether funds under the agreement have been paid or are to be paid;

(3) a limit on the contract amount or amount of funds that may be awarded or paid to the entity for a period of not more than 60 months; or

(4) debarment of the entity for a period of not more than 60 months.

(b) Relating to an engineering, architectural, or surveying service contract, the executive director may remove a person's or a firm's precertification provided under §9.33 of this title (relating to Precertification), and prohibit the person or firm from reapplying for precertification for the period set by the executive director, if a ground for removal of precertification under §10.101 of this chapter (relating to Required Conduct) exists.

(c) Before imposing a sanction, the executive director will consider the following factors:

(1) the seriousness and willfulness of the act or omission;

(2) whether the entity has committed similar acts or omissions and if so, when those acts or omissions were committed;

(3) whether the entity, or a third party on behalf of the entity, has fully compensated the department for any damages suffered by the department as a result of the entity's acts or omissions; and

(4) any mitigating factors.

(d) For the purposes of subsection (c)(4) of this section, the following are mitigating factors:

(1) the entity's adoption and enforcement of an internal ethics and compliance program that satisfies the requirements of §10.51 of this chapter (relating to Internal Ethics and Compliance Program);

(2) the entity's cooperation with the department in the investigation of ethical violations, including the provision of a full and complete account of the entity's involvement; or

(3) the entity's disassociation from individuals and firms that have been involved in the ethical violation.

(e) The removal a person's or a firm's precertification under subsection (b) of this section does not prevent that person or firm from participating in agreements with the department in a capacity that does not require precertification unless the executive director imposes a suspension under §10.253(b) of this subchapter (relating to Notice of Sanction; Suspension).

(f) If an entity commits multiple violations arising out of separate occurrences, the executive director may impose multiple sanctions.

Source Note: The provisions of this §10.254 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000