1. (a) This section implements the provisions of Texas Natural Resources Code, §113.163, and applies to a violation that occurs on or after September 1, 2005.

2. (b) Except as provided by subsections (e) and (f) of this section, the Commission may not approve an application for an initial or renewal license or registration for an exemption under this chapter if:

   1. (1) the applicant or registrant for an exemption has violated a statute or Commission rule, order, license, permit, or certificate that relates to safety; or
   2. (2) a person who holds a position of ownership or control in the applicant or registrant for an exemption has held a position of ownership or control in another person during the seven years preceding the date on which the application or registration for an exemption is filed and during that period of ownership or control the other person violated a statute or Commission rule, order, license, permit, or certificate that relates to safety.

3. (c) An applicant, registrant for an exemption, or other person has committed a violation described by subsection (b) of this section if:

   1. (1) a final judgment or final administrative order finding the violation has been entered against the applicant, registrant for an exemption, or other person and all appeals have been exhausted; or
   2. (2) the Commission and the applicant, registrant for an exemption, or other person have entered into an agreed order relating to the alleged violation.

4. (d) Regardless of whether the person's name appears or is required to appear on an application or registration for an exemption, a person holds a position of ownership or control in an applicant, registrant for an exemption, or other person if the person is:

   1. (1) an officer, director, general partner, sole owner, or trustee of, or the owner of at least 25 percent of the beneficial interest in the applicant, registrant for an exemption, or other person; or
   2. (2) the applicant, registrant, or other person and has been determined by a final judgment or final administrative order to have exerted actual control over the applicant, registrant, or other person.

5. (e) The Commission shall approve an application for a license or registration for an exemption under this chapter, if all of the following conditions, if applicable, are met:

   1. (1) the conditions that constituted the violation have been corrected or are being corrected in accordance with a schedule to which the Commission and the applicant, registrant for an exemption, or other person have agreed;
   2. (2) all administrative, civil, and criminal penalties have been paid or are being paid in accordance with a payment schedule to which the Commission and the applicant, registrant for an exemption, or other person have agreed; and
   3. (3) the application or registration for an exemption complies with all other requirements of law and Commission rules.
6. (f) The Commission may issue a license to an applicant described by subsection (b) of this section or approve a registration for an exemption for a registrant for an exemption described by subsection (b) of this section for a term specified by the Commission if the license or registration for an exemption is necessary to remedy a violation of law or Commission rules.

7. (g) If the Commission is prohibited by subsection (b) of this section from approving an application for a license or a registration for an exemption or would be prohibited from doing so by that subsection if the applicant, licensee, or registrant for an exemption submitted an application or registration for an exemption, then the Commission, after notice and opportunity for a hearing, by order may refuse to renew or may revoke a license or registration for an exemption issued to the applicant, licensee, or registrant for an exemption under this chapter.

   1. (1) In determining whether to refuse to renew or to revoke a person's license or registration for an exemption under this subsection, the Commission shall consider the person's history of previous violations, the seriousness of previous violations, any hazard to the health or safety of the public, and the demonstrated good faith of the person.
   2. (2) If an application or registration for an exemption is denied under this subsection, the Commission shall provide the applicant or registrant for an exemption with a written statement explaining the reason for the denial.
   3. (3) An order issued under this subsection must provide the applicant, licensee, or registrant for an exemption a reasonable period to comply with the judgment or order finding the violation before the order takes effect.
   4. (4) The Commission's refusal to renew or revocation of a person's license or registration for an exemption under this subsection does not relieve the person of any existing or future duty under law, rules, or license or registration conditions.
   5. (5) On refusal to renew or revocation of a person's license or registration for an exemption under this subsection, the person may not perform any activities under the jurisdiction of the Commission under this chapter, except as necessary to remedy a violation of law or Commission rules and as authorized by the Commission under a license or registration for an exemption issued under subsection (f) of this section.
   6. (6) A fee tendered in connection with an application or registration for an exemption that is denied under this section is nonrefundable.
   7. (7) The Commission may not revoke or refuse to renew a license or registration for an exemption under this subsection if the Commission finds that the applicant, licensee, or registrant for an exemption has fulfilled the conditions set out in subsection (e) of this section.

Source Note:The provisions of this §9.5 adopted to be effective December 19, 2005, 30 TexReg 8428.