(a) Sua sponte or on motion of a party and after notice and an opportunity for a hearing and subject to approval by the agency head on behalf of which the hearing is being conducted, the administrative law judge may impose appropriate sanctions as provided by subsection (b) of this section against a party or its representative for: (1) filing a motion or pleading that is groundless and brought: (B) for the purpose of harassment; or(C) for any other improper purpose, such as to cause unnecessary delay or needless increase in the cost of the proceeding;(2) abuse of the discovery process in seeking, making, or resisting discovery; or(3) failure to obey an order of the administrative law judge.(b) A sanction imposed under subsection (a) of this section may include, as appropriate and justified, issuance of an order: (1) disallowing further discovery of any kind or of a particular kind by the offending party;(2) charging all or any part of the expenses of discovery against the offending party or its representatives;(3) holding that designated facts be considered admitted for purposes of the proceeding;(4) refusing to allow the offending party to support or oppose a designated claim or defense or prohibiting the party from introducing designated matters in evidence;(5) disallowing in whole or in part requests for relief by the offending party and excluding evidence in support of those requests;(6) striking pleadings or testimony, or both, in whole or in part; or(7) imposing any other sanction that the agency head with jurisdiction in the case could have imposed if the agency head had personally presided in hearing the case.7 Tex. Admin. Code § 9.37
The provisions of this §9.37 adopted to be effective November 13, 1997, 22 TexReg 10951.