1. (a) The available sanctions, in order of increasing severity, are:

   1. (1) a reprimand;
   2. (2) prohibition from participating in a specified agreement, whether the agreement was previously awarded or to be awarded or whether funds under the agreement have been paid or are to be paid;
   3. (3) a limit on the contract amount or amount of funds that may be awarded or paid to the entity for a period of not more than 60 months; or
   4. (4) debarment of the entity for a period of not more than 60 months.

2. (b) Before imposing a sanction, the executive director will consider the following factors:

   1. (1) the seriousness and willfulness of the act or omission;
   2. (2) whether the entity has committed similar acts or omissions and if so, when those acts or omissions were committed;
   3. (3) whether the entity, or a third party on behalf of the entity, has fully compensated the department for any damages suffered by the department as a result of the entity's acts or omissions; and
   4. (4) any mitigating factors.

3. (c) For the purposes of subsection (b)(4) of this section, the following are mitigating factors:

   1. (1) the entity's adoption and enforcement of an internal ethics and compliance program that satisfies the requirements of §10.51 of this chapter (relating to Internal Ethics and Compliance Program);
   2. (2) the entity's cooperation with the department in the investigation of ethical violations, including the provision of a full and complete account of the entity's involvement; or
   3. (3) the entity's disassociation from individuals and firms that have been involved in the ethical violation.

Source Note:The provisions of this §10.254 adopted to be effective January 6, 2011, 35 TexReg 11951.