| (a) Initiation. (1) If the executive director finds that a petition meets all legal requirements, the department will initiate a contested case in accordance with the rules of the State Office of Administrative Hearings. (2) The department may initiate a contested case on its own initiative in accordance with the rules of the State Office of Administrative Hearings. (b) Service of notice of hearing. Service of the notice of hearing shall be accomplished by certified or registered mail to the party's last known address as shown in the department's records. A notice of a hearing in a contested case is sufficient for purposes of notice if it includes a copy of the petition, prepared in accordance with §206.64 of this subchapter (relating to Content of Petition), and the following information, unless it is included in the petition: (1) a statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; and (3) reference to the particular sections of the statutes and rules involved. (c) Standard of review for department's decision or action. (1) The standard of review is whether the department was reasonable for claims made pursuant to Transportation Code, §681.012, Seizure and Revocation of Placard, and other claims not specified in paragraph (2) of this subsection. (2) The standard of review is whether the department's decision or action was based on fraud, misconduct, or such gross mistake as would imply bad faith or failure to exercise an honest judgment for: (A) claims related to Occupations Code, Chapter 2302, Salvage Vehicle Dealers; (B) claims related to motor carrier and leasing company registration, Transportation Code, Chapter 643; and (C) claims related to single state registration for motor carriers, Transportation Code, Chapter 645. (d) Burden of proof. A party seeking monetary damages or penalties shall bear the burden of proof. In all other instances, the party challenging a department decision or action shall bear the burden of proof. |
