Disciplinary proceedings

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    (a)    Except as provided in subsection (b) of this section, if the Commission pays a claim against the Fund based on an act or omission of a contractor, the Commission may suspend the contractor license until the contractor reimburses the Fund in full for:

        (1)    the amount paid from the Fund; and

        (2)    interest on that amount at an annual rate of at least 10%, as set by the Commission.

    (b)    The Commission may not suspend the contractor license if the Commission finds that the contractor or management personnel of the contractor:

        (1)    did not know of the wrongful conduct; or

        (2)    could not prevent the violation.

    (c)    Reimbursement of the Fund in full by a contractor, by itself, does not nullify or modify the effect of a disciplinary proceeding against a licensee.


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