(a) Subject to the approval of the advisory committee, the executive commissioner shall adopt rules under which a political subdivision or agency of this state may dispute information submitted by a political subdivision under § 12.133.
(b) The rules may provide for:
(1) an audit of the political subdivision that submitted the disputed information;
(2) payment of the costs of the audit by the party to the dispute who does not prevail in the dispute;
(3) a deadline for filing a dispute for a particular year; and
(4) a reasonable monetary penalty to be applied to a subsequent annual distribution made to a political subdivision that is found to have overstated unreimbursed health care expenditures in the information submitted under § 12.133.

(c) The monetary penalty applied under Subsection (b)(4) may not exceed 10 percent of the amount of the overstatement of unreimbursed health care costs.
(d) A dispute under this section is a contested case for purposes of Chapter 2001, Government Code.