(a) The department shall issue a preliminary report stating the facts on which the department concludes that a violation of this chapter, a rule, standard, or order adopted under this chapter, or a term of a license issued under this chapter has occurred if the department has:
(1) examined the possible violation and facts surrounding the possible violation; and
(2) concluded that a violation has occurred.
(b) The report may recommend a penalty under § 103.012 and the amount of the penalty.

(c) The department shall give written notice of the report to the person charged with the violation not later than the 10th day after the date on which the report is issued. The notice must include:
(1) a brief summary of the charges;
(2) a statement of the amount of penalty recommended;
(3) a statement of whether the violation is subject to correction under § 103.013 and, if the violation is subject to correction under that section, a statement of:
(A) the date on which the day activity and health services facility must file a plan of correction with the department that the department shall review and may approve, if satisfactory; and
(B) the date on which the plan of correction must be completed to avoid assessment of the penalty; and
(4) a statement that the person charged has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both.
(d) Not later than the 20th day after the date on which the notice under Subsection (c) is received, the person charged may:
(1) give to the department written notice that the person agrees with the department’s report and consents to the recommended penalty; or
(2) make a written request for a hearing.
(e) If the violation is subject to correction under § 103.013, the day activity and health services facility shall submit a plan of correction to the department for approval not later than the 10th day after the date on which the notice under Subsection (c) is received.
(f) If the violation is subject to correction under § 103.013 and the person reports to the department that the violation has been corrected, the department shall inspect the correction or take any other step necessary to confirm the correction and shall notify the person that:
(1) the correction is satisfactory and a penalty will not be assessed; or
(2) the correction is not satisfactory and a penalty is recommended.
(g) Not later than the 20th day after the date on which a notice under Subsection (f)(2) is received, the person charged with the violation may:
(1) give to the department written notice that the person agrees with the department’s report and consents to the recommended penalty; or
(2) make a written request for a hearing as provided under department rules.
(h) If the person charged with the violation consents to the penalty recommended by the department or does not timely respond to a notice sent under Subsection (c) or (f)(2), the department shall assess the recommended penalty.
(i) If the department assesses the recommended penalty, the department shall give written notice of the decision to the person charged with the violation and the person shall pay the penalty.