The executive director may recommend to the commission the amount of the penalty to be imposed. Such a recommendation shall be in writing and shall set forth the basis for the penalty amount proposed. Based upon the record submitted to the commission, the commission shall decide whether a violation has occurred that justifies the imposition of a penalty pursuant to section 14.17 of the Compact. If it is found that such a violation has occurred, the commission shall determine the amount of the penalty to be paid.