1. (a) The commissioner may refuse an application or may suspend or revoke a license if the applicant or licensee:

   1. (1) has a conviction of a misdemeanor that involves moral turpitude or a felony;
   2. (2) is an association, partnership, or corporation and the managing officer has a conviction of a misdemeanor that involves moral turpitude or a felony;
   3. (3) has been convicted in a state or federal court of the illegal use, sale, or transportation of intoxicating liquors, narcotic drugs, barbiturates, amphetamines, desoxyephedrine, their compounds or derivatives, or any other dangerous or habit-forming drugs;
   4. (4) is an association, partnership, or corporation and the managing officer has been convicted in state or federal court of the illegal use, sale, or transportation of intoxicating liquors, narcotic drugs, barbiturates, amphetamines, desoxyephedrine, their compounds or derivatives, or any other dangerous or habit-forming drugs;
   5. (5) has violated any of the provisions of the Texas Food, Drug, and Cosmetic Act, HSC Chapter 431 (Act) or these sections;
   6. (6) has failed to pay any fees for licensing or renewal;
   7. (7) has failed to pay administrative penalties in full more than 30 days after the decision or order assessing the penalty is final, and has not filed a petition for judicial review of the order assessing the penalty; or
   8. (8) has obtained or attempted to obtain a license by fraud or deception.

2. (b) The commissioner may refuse an application for a license or may suspend or revoke a license if the commissioner determines from evidence presented during a hearing that the applicant or licensee:

   1. (1) has violated HSC §431.021(l)(3), concerning the counterfeiting of a drug or the sale or holding for sale of a counterfeit drug;
   2. (2) has violated HSC Chapter 481 (Texas Controlled Substances Act), or HSC Chapter 483 (Texas Dangerous Drug Act); or
   3. (3) has violated rules established by the director of the Department of Public Safety, including being responsible for a significant discrepancy in records the applicant or licensee is required to maintain under state law.
3. (c) After providing an opportunity for a hearing, the department may refuse, suspend, or revoke a license for a device distributor or manufacturer if the applicant violates any requirements in these sections or for any reasons described in the Act.
4. (d) Any hearings for the refusal, revocation, or suspension of a license are governed by §§1.21, 1.23, 1.25, and 1.27 of this title (relating to Formal Hearing Procedures).

5. (e) A license issued under these sections must be returned to the department if the device distributor's or manufacturer's place of business:

   1. (1) ceases business or otherwise ceases operation on a permanent basis;
   2. (2) relocates; or
   3. (3) changes name or ownership. A corporation transferring 5.0% or more of the share of stock from one person to another is considered to have had an ownership change and must return the license to the department.

Source Note:The provisions of this §229.440 adopted to be effective October 18, 1994, 19 TexReg 7910; amended to be effective March 19, 1996, 21 TexReg 1887; amended to be effective January 1, 2005, 29 TexReg 11983; amended to be effective January 5, 2026, 51 TexReg 147.