1. (a) The Texas Health and Human Services Commission (HHSC) may assess an administrative penalty against a person who violates Texas Health and Safety Code Chapter 251 (relating to End Stage Renal Disease Facilities) or this chapter, under:

   1. (1) Texas Health and Safety Code (HSC) §251.066 (relating to Administrative Penalty),
   2. (2) HSC §251.067 (relating to Report Recommending Administrative Penalty),
   3. (3) HSC §251.068 (relating to Hearing; Order),
   4. (4) HSC §251.069 (relating to Notice and Payment of Administrative Penalty; Judicial Review; Refund),
   5. (5) HSC §251.070 (relating to Penalty Deposited to State Treasury), and
   6. (6) HSC §251.071 (relating to Recovery of Costs).
2. (b) The penalty may not exceed $1,000 for each violation. Each day of a continuing violation constitutes a separate violation.

3. (c) In determining the amount of an administrative penalty assessed under this section, HHSC considers:

   1. (1) the violation's seriousness;
   2. (2) the history of previous violations;
   3. (3) the amount necessary to deter future violations;
   4. (4) efforts made to correct the violation; and
   5. (5) any other matters that justice may require.
4. (d) All proceedings for the assessment of an administrative penalty are subject to Texas Government Code Chapter 2001 (relating to Administrative Procedure).

5. (e) If after investigation of a possible violation and the facts surrounding that possible violation, HHSC determines that a violation has occurred, HHSC gives written notice of the violation to the person alleged to have committed the violation. The notice will include:

   1. (1) the alleged violation's summary;
   2. (2) a statement of the proposed penalty amount, based on the factors listed in subsection (c) of this section; and
   3. (3) a statement of the person's right to a hearing on the violation's occurrence, the penalty amount, or both the violation's occurrence and the penalty amount.
6. (f) Within 20 calendar days after receiving the notice, the person notified may accept the determination of HHSC made under this section, including the recommended penalty, or make a written request for a hearing on that determination.
7. (g) If the person notified of the violation accepts the determination of HHSC, the executive commissioner issues an order approving the determination and ordering that the person pay the recommended penalty.

8. (h) If the person notified fails to respond in a timely manner to the notice or if the person requests a hearing, the executive commissioner's designee:

   1. (1) refers the matter to the State Office of Administrative Hearings for an administrative law judge of that office to conduct a hearing; and
   2. (2) gives written notice of the hearing to the person.
9. (i) At the hearing, the administrative law judge makes findings of fact and conclusions of law and promptly issues the executive commissioner a decision proposal regarding the violation's occurrence and the recommended proposed penalty amount, if the judge determines a penalty is warranted.

10. (j) Based on the findings of fact and conclusions of law and the administrative law judge's recommendation, the executive commissioner by order may find that a violation has occurred and may assess a penalty or may find that no violation has occurred. The executive commissioner or the executive commissioner's designee gives notice of the executive commissioner's order to the person notified. The notice includes:

    1. (1) separate statements of the findings of fact and conclusions of law;
    2. (2) the amount of any penalty assessed; and
    3. (3) a statement regarding the person's right to judicial review of the executive commissioner's order.

11. (k) Within 30 calendar days after the date the decision is final, the person shall:

    1. (1) pay the penalty in full;
    2. (2) pay the penalty amount and file a petition for judicial review contesting the violation's occurrence, the penalty amount, or both the violation's occurrence and the penalty amount; or

    3. (3) without paying the penalty amount, file a petition for judicial review contesting the violation's occurrence, the penalty amount, or both the violation's occurrence and the penalty amount. Within the 30-day period, a person who acts under this paragraph may:

       1. (A) stay the penalty's enforcement by:

          1. (i) paying the penalty amount to the court for placement in an escrow account; or
          2. (ii) giving to the court a supersedeas bond that is approved by the court for the penalty amount and that is effective until all judicial review of the executive commissioner's order is final; or

       2. (B) request the court to stay the penalty's enforcement by:

          1. (i) filing with the court a person's affidavit stating that the person is financially unable to pay the penalty amount and give the supersedeas bond; and
          2. (ii) giving a copy of the affidavit to HHSC by certified mail.
12. (l) If HHSC receives a copy of an affidavit under subsection (k)(3)(B) of this section, HHSC may file with the court, within five calendar days after the date the copy is received, a contest to the affidavit.

Source Note:The provisions of this §507.92 adopted to be effective December 23, 2025, 50 TexReg 8289.