(a) The department may impose an administrative penalty against a person who violates:
(1) a rule adopted under this chapter; or
(2) a provision of Subchapter C that the department by rule subjects to administrative penalties.
(b) To be designated as subject to an administrative penalty under Subsection (a)(2), a provision must relate to the safe operation of a commercial motor vehicle.

(c) The department shall:
(1) designate one or more employees to investigate violations and conduct audits of persons subject to this chapter; and
(2) impose an administrative penalty if the department discovers a violation that is covered by Subsection (a) or (b).
(d) A penalty under this section may not exceed the maximum penalty provided for a violation of a similar federal safety regulation.
(e) If the department determines to impose a penalty, the department shall issue a notice of claim. The department shall send the notice of claim by certified mail, registered mail, personal delivery, or another manner of delivery that records the receipt of the notice by the person responsible. The notice of claim must include a brief summary of the alleged violation and a statement of the amount of the recommended penalty and inform the person that the person is entitled to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. A person who is subject to an administrative penalty imposed by the department under this section is required to pay the penalty or respond to the department within 20 days of receipt of the department’s notice of claim.
(f) Before the 21st day after the date the person receives the notice of claim, the person may:
(1) accept the determination and pay the recommended penalty; or
(2) make a written request for an informal hearing or an administrative hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
(g) At the conclusion of an informal hearing requested under Subsection (f), the department may modify the recommendation for a penalty.
(h) If the person requests an administrative hearing, the department shall set a hearing and give notice of the hearing to the person. The hearing shall be held by an administrative law judge of the State Office of Administrative Hearings. The administrative law judge shall make findings of fact and conclusions of law and promptly issue to the director a proposal for a decision as to the occurrence of the violation and the amount of a proposed penalty.
(i) If a penalty is proposed under Subsection (h), the administrative law judge shall include in the proposal for a decision a finding setting out costs, fees, expenses, and reasonable and necessary attorney’s fees incurred by the state in bringing the proceeding. The director may adopt the finding and make it a part of a final order entered in the proceeding.
(j) Based on the findings of fact, conclusions of law, and proposal for a decision, the director by order may find that a violation has occurred and impose a penalty or may find that no violation occurred. The director may, pursuant to § 2001.058(e), Government Code, increase or decrease the amount of the penalty recommended by the administrative law judge within the limits prescribed by this chapter.
(k) Notice of the director’s order shall be given to the affected person in the manner required by Chapter 2001, Government Code, and must include a statement that the person is entitled to seek a judicial review of the order.
(l) Before the 31st day after the date the director’s order becomes final as provided by § 2001.144, Government Code, the person must:
(1) pay the amount of the penalty;
(2) pay the amount of the penalty and file a petition for judicial review contesting:
(A) the occurrence of the violation;
(B) the amount of the penalty; or
(C) both the occurrence of the violation and the amount of the penalty; or
(3) without paying the amount of the penalty, file a petition for judicial review contesting:
(A) the occurrence of the violation;
(B) the amount of the penalty; or
(C) both the occurrence of the violation and the amount of the penalty.
(m) Within the 30-day period under Subsection (l), a person who acts under Subsection (l) may:
(1) stay enforcement of the penalty by:
(A) paying the amount of the penalty to the court for placement in an escrow account; or
(B) filing with the court a supersedeas bond approved by the court for the amount of the penalty that is effective until all judicial review of the director’s order is final; or
(2) request the court to stay enforcement of the penalty by:
(A) filing with the court an affidavit of the person stating that the person is financially unable to pay the amount of the penalty and is financially unable to give the supersedeas bond; and
(B) sending a copy of the affidavit to the director by certified mail.
(n) Before the sixth day after the date the director receives a copy of an affidavit filed under Subsection (m)(2), the department may file with the court a contest to the affidavit. The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty if the court finds that the alleged facts are true. The person who files an affidavit under Subsection (m)(2) has the burden of proving that the person is financially unable to:
(1) pay the amount of the penalty; and
(2) file the supersedeas bond.
(o) If the person does not pay the amount of the penalty and the enforcement of the penalty is not stayed, the director may:
(1) refer the matter to the attorney general for collection of the amount of the penalty;
(2) initiate an impoundment proceeding under Subsection (q); or
(3) refer the matter to the attorney general and initiate the impoundment proceeding.
(p) A person who fails to pay, or becomes delinquent in the payment of an administrative penalty imposed by the department under this subchapter may not operate or direct the operation of a commercial motor vehicle on the highways of this state until the administrative penalty has been remitted to the department.
(q) The department shall impound any commercial motor vehicle owned or operated by a person in violation of Subsection (p) after the department has first served the person with a notice of claim. Service of the notice may be by certified mail, registered mail, personal delivery, or any other manner of delivery showing receipt of the notice.
(r) A commercial motor vehicle impounded by the department under Subsection (q) shall remain impounded until the administrative penalties imposed against the person are remitted to the department, except that an impounded commercial motor vehicle left at a vehicle storage facility controlled by the department or any other person shall be considered an abandoned motor vehicle on the 11th day after the date of impoundment if the delinquent administrative penalty is not remitted to the department before that day. Chapter 683 applies to the commercial motor vehicle, except that the department is entitled to receive from the proceeds of the sale the amount of the delinquent administrative penalty and costs.
(s) All costs associated with the towing and storage of the commercial motor vehicle and load shall be the responsibility of the person and not the department or the State of Texas.
(t) A proceeding under this section is subject to Chapter 2001, Government Code.
(u) Each penalty collected under this section shall be deposited to the credit of the Texas mobility fund.