INFORMAL PROCEEDINGS; INFORMAL SETTLEMENT CONFERENCE AND REFUNDS

(a) The board by rule shall adopt procedures governing: (1) informal disposition of a contested case under Section 2001.056, Government Code; and (2) an informal proceeding held in compliance with Section 2001.054, Government Code. (b) The board by rule shall establish procedures by which a panel of board members may conduct an informal settlement conference to resolve a complaint against a person licensed under this chapter. (c) Procedures established under Subsection (b) must: (1) require that at least one board member who represents the public be included in the panel conducting the conference; (2) require that the two board members who reviewed and investigated a complaint under Section 351.2036(c) be included in the panel conducting the conference; (3) require the panel conducting the conference to use the standardized penalty schedule adopted by the board under Section 351.552(c) to determine the appropriate disciplinary action, if any, to recommend to the board; (4) require a complaint settlement recommended by the panel to be approved by the board; and (5) require the panel conducting the conference to: (A) recommend settlement of the complaint to the board; or (B) refer the complaint to the State Office of Administrative Hearings for a formal hearing and notify the board of the referral. (d) The board may order a person licensed under this chapter to issue a refund to a patient as provided in an agreement resulting from an informal settlement conference instead of or in addition to assessing an administrative penalty against the person under Subchapter L. The amount of a refund ordered under this subsection may not exceed the amount the patient paid to the license holder for an examination. The board may not require payment of other damages or estimate harm in a restitution order. (e) Rules adopted under this section must: (1) provide the complainant and the license holder with an opportunity to be heard; and (2) require the presence of the attorney general to advise the board or the board's employees.