1. (a) A Contested Case may be resolved informally at any time after the Contested Case is initiated by the Board.
2. (b) If the respondent agrees in writing to a settlement agreement arising out of the proposed informal disposition of a Contested Case and the Executive Director executes the written settlement agreement, the settlement agreement shall be presented to the Board for approval or rejection. The settlement agreement must include written findings of fact and conclusions of law and may be in the form of a consent order, letter of reprimand, or other format approved by the Executive Director.
3. (c) If the Board rejects a settlement agreement, the respondent shall have the opportunity to agree to alternative settlement terms approved by the Board. If the respondent does not agree to alternative settlement terms approved by the Board, the case shall be referred to the State Office of Administrative Hearings for a formal hearing.
4. (d) If the respondent and the Executive Director do not agree in writing to a settlement agreement, the case shall be referred to the State Office of Administrative Hearings for a formal hearing.
5. (e) An informal disposition may be made of a Contested Case by default. Default shall occur when a respondent neither responds in writing nor appears at a scheduled hearing related to a disciplinary matter.

6. (f) The Board and the Executive Director shall take into account the following factors when considering a proposed settlement agreement:

   1. (1) the seriousness of the conduct that is the source of the allegation(s) against the respondent, including consideration of:

      1. (A) the nature, circumstances, extent, and gravity of any relevant act or omission, and
      2. (B) the hazard or potential hazard to the health or safety of the public;
   2. (2) the economic damage to property caused by the conduct;
   3. (3) the respondent's history concerning any previous ground for sanction;
   4. (4) the severity of penalty necessary to deter a future ground for sanction;
   5. (5) any effort to correct the ground for sanction;
   6. (6) the economic benefit gained by the respondent as a result of the conduct; and
   7. (7) any other matter justice may require; and
   8. (8) When considering a referral from the Texas Department of Licensing and Regulation, in addition to the factors described in this subsection, the Board shall consider the actual number of days that the submission was late.

Source Note:The provisions of this §3.165 adopted to be effective January 8, 2002, 27 TexReg 165.