1. (a) The Board may dismiss a complaint at any time even after hearing or issuance of a proposal for decision. The Board may not impose a sanction on a licensee based on a dismissed complaint. Any dismissal after a proposal for decision has been issued shall have no effect on relief lawfully awarded against the Board.
2. (b) Filing of exceptions and replies. Within 15 days of the date of service of the proposal for decision, unless the administrative law judge has set a shorter or longer period of time, any party of record may file exceptions to the proposal for decision. Replies to these exceptions shall be filed within 15 days after the date of filing the exceptions unless the administrative law judge has set a shorter or longer period of time. A request for extension or decrease of time within which to file exceptions or replies shall be filed with the administrative law judge and served on all parties of record by the party making the request. The administrative law judge shall promptly notify the parties of the decision with regard to these requests. Additional time shall be allowed only when the interests of justice so require.
3. (c) After the expiration of time for filing exceptions or replies to exceptions, the proposal for decision may be considered by the board. If remanded to the administrative law judge, the revised proposal for decision thereafter rendered by the administrative law judge shall be clearly labeled as an amended proposal for decision. A copy of the proposal for decision shall be served forthwith by the administrative law judge on each party, or each party's attorney of record, and the board.
4. (d) Form of exceptions and replies. Exceptions and replies to exceptions shall conform as nearly as practicable to the rules provided for pleadings. The specific exceptions shall be concisely stated. The evidence relied upon shall be pointed out with particularity, and that evidence and any arguments and legal authority relied upon shall be grouped under the exceptions to which they relate. Any party filing exceptions and replies shall provide the board with original and 17 copies.
5. (e) Oral argument before the board. Any party may request oral argument before the board before the final determination of any proceeding, but the request must be filed in the offices of the board by no later than 5:00 p.m. of the twentieth working day prior to the board meeting. Oral argument shall be allowed only at the discretion of the board. A request for oral argument may be incorporated in the exception, reply to exceptions, or in a separate pleading. In the event oral argument is granted by the board, each party who has filed exceptions and replies may be limited to a maximum of 20 minutes for presentation thereof. The board shall require one spokesman per party and position. Under no circumstances may any party making oral argument to the board refer to or urge reliance on materials that are not part of the administrative record.
6. (f) Motion for rehearing. In the event a motion for rehearing is filed, the executive director shall have authority to act for the board in either granting or denying such motion.
7. (g) Administrative cost recovery. The board may for good cause and in accordance with the Public Accountancy Act, after notice and hearing, impose direct administrative costs in addition to other sanctions provided by law or these rules. Direct administrative costs include, but are not limited to, attorneys' fees, investigative costs, including the costs of the evaluation of the file by the board's committees, excess workload billings for contested case hearings or hearings related services provided by the State Office of Administrative Hearings pursuant to the General Appropriations Act, Act. VIII-6, Rider 9, witness fees and deposition expenses, travel expenses of witnesses, fees for professional services of expert witnesses, the cost of a study, analysis, audit, or other projects the board finds necessary in preparation of the state's case, paralegal fees, the costs of other support personnel in the enforcement process, the board's associated overhead costs and all costs incurred by the state in defending any order on appeal.

8. (h) Changes to recommendation. To protect the public interest and to ensure that sound accounting principles govern the decisions of the board, it is the policy of the board to change a finding of fact or conclusion of law or to vacate or modify the proposed order of an administrative law judge when the proposed order is clearly:

   1. (1) erroneous;
   2. (2) against the weight of the evidence;
   3. (3) based on unsound accounting principles or auditing standards;
   4. (4) based on an insufficient review of the evidence;
   5. (5) not sufficient to protect the public interest; or
   6. (6) not sufficient to adequately allow rehabilitation of the licensee.

Source Note:The provisions of this §519.9 adopted to be effective December 10, 1998, 23 TexReg 12307; amended to be effective October 17, 1999, 24 TexReg 8750; amended to be effective October 11, 2001, 26 TexReg 7867.