1. (a) The board may contract with any sponsor of CPE programs to become a board contracted CPE sponsor where the sponsor, in the opinion of the board, demonstrates that it will comply with its contractual obligations to the board and that its programs will conform to the board's standards as outlined in:

   1. (1) §523.115 of this title (relating to Credits for Instructors and Discussion Leaders);
   2. (2) §523.130 of this title (relating to Board Rules and Ethics Course), (if applicable);
   3. (3) §523.140 of this title (relating to Program Standards);
   4. (4) §523.141 of this title (relating to Evaluation); and
   5. (5) §523.142 of this title (relating to Program Time Credit Measurement).

2. (b) The board will also require that each organization applying to become a board contracted CPE sponsor agree that in the conduct of its business it will:

   1. (1) Not commit fraud, deceit or engage in fiscal dishonesty of any kind;
   2. (2) Not misrepresent facts or make false or misleading statements;
   3. (3) Not make false statements to the board or to the board's agents; and
   4. (4) Comply with the laws of the United States and the State of Texas.
3. (c) Each organization applying to become a board contracted CPE sponsor must submit an application on contract forms provided by the board. The application must be complete in all respects and shall include the contract payment of $120 for each twelve month period of the contract.
4. (d) To implement the program initially, sponsors previously registered with the board will be assigned an initial contract term based on the month of their current registration. The board will not prorate the contract payment for an organization for less than one year. Upon renewal in the second and succeeding years, the contract amount may be increased to cover the costs of review of individual courses.
5. (e) Board staff will review each application and notify the applicant of its acceptance or rejection. Accepted applicants will be assigned a sponsor number and can represent that they are a board contracted CPE sponsor. An acceptance in any given year shall not bind the board to accept a sponsor in any future year.
6. (f) After the contract has been accepted, the board, in its sole and exclusive discretion, may determine that a contracted sponsor is not in compliance with the contract. The board will provide the contracted sponsor reasonable notice it may make such a determination and shall provide the contracted sponsor a reasonable opportunity to respond to the facts which lead to the board determination. When the board has made a determination that a contracted sponsor is not in compliance with the contract, the board may request that the CPE sponsor make changes to meet board rules or the contract or the board may also terminate the contract. The contract amount shall not be prorated or refunded if the contract is terminated.
7. (g) All contracts with board contracted CPE sponsors may be renewable not less than annually by completion of a form provided by the board. At least 30 days before the expiration of the contract, the board will send notice of the impending expiration of the contract as a CPE sponsor.

Source Note:The provisions of this §523.144 adopted to be effective April 7, 2004, 29 TexReg 3482.