1. (a) If the department believes that any person conducting independent review is in violation of the Act or this chapter, the department shall notify the independent review organization of the alleged violation and may compel the production of any and all documents or other information as necessary to determine whether or not such violation has taken place.
2. (b) The department may initiate appropriate proceedings under this chapter.
3. (c) Proceedings under this chapter are a contested case for the purpose of the Government Code, Chapter 2001.

4. (d) If the commissioner or his or her designee determines that the independent review organization has violated or is violating any provision of the Act or this chapter, the commissioner or his or her designee may:

   1. (1) impose sanctions under the Insurance Code, Article 1.10;
   2. (2) issue a cease and desist order under the Insurance Code, Article 1.10A; and/or
   3. (3) assess administrative penalties under the Insurance Code, Article 1.10E.
5. (e) If the independent review organization has violated or is violating any provisions of the Insurance Code other than the Act, or applicable rules of the department, sanctions may be imposed under the Insurance Code, Articles 1.10, 1.10A, or 1.10E.
6. (f) The commission of fraudulent or deceptive acts or omissions in obtaining, attempting to obtain, or use of certification or designation as an independent review organization shall be a violation of the Act.

Source Note:The provisions of this §12.302 adopted to be effective November 26, 1997, 22 TexReg 11363.