(a) If the executive director determines that a violation has occurred, the executive director may issue to the board a report stating:
(1) the facts on which the determination is based; and
(2) the director's recommendation on the imposition of the administrative penalty, including a recommendation on the amount of the penalty.
(b) Not later than the 14th day after the date the report is issued, the executive director shall give written notice of the report to the person on whom the penalty may be imposed. The notice may be given by certified mail. The notice must:
(1) include a brief summary of the alleged violation;
(2) state the amount of the recommended penalty; and
(3) inform the person of the person's right to a hearing on the occurrence of the violation, the amount of the penalty, or both.