1. (a) Denial. The executive director may deny an initial or renewal application for:

   1. (1) Insufficiency. The executive director shall notify the applicant of the executive director's intent to deny the application and advise the applicant of the opportunity to file a motion for reconsideration under §50.39 of this title (relating to Motion for Reconsideration). The executive director may determine an application is insufficient for the following reasons:

      1. (A) failing to meet the licensing or registration requirements of this chapter;
      2. (B) being in default on loans guaranteed by Texas Guaranteed Student Loan Corporation (TGSLC) (the executive director shall proceed as described in Texas Education Code, Chapter 57) if identified by TGSLC and the application is for a renewal license or registration; or
      3. (C) if an out-of-state licensing program does not have requirements substantially equivalent to those of this chapter;

   2. (2) Cause. After notice and opportunity for a hearing, the commission may deny an application for a license or registration by an applicant who:

      1. (A) provides fraudulent information or falsifies the application;
      2. (B) has a poor compliance history as a licensee in another state; or
      3. (C) has a history in this or another agency program of violations of statutes or rules adopted under those statutes;
      4. (D) makes an intentional misstatement or misrepresentation of fact in information required to be maintained or submitted to the commission by the applicant;
      5. (E) fails to keep and transmit records as required by a statue within the commission's jurisdiction or a rule adopted under such a statute; or
      6. (F) is indebted to the state for a fee, penalty, or tax imposed by a statute within the commission's jurisdiction or a rule adopted under such a statute.
2. (b) Warning. If a person causes, contributes to, or allows a violation of this chapter, the executive director may issue a warning letter. The letter shall be placed in the person's permanent file maintained by the executive director. This letter shall be a warning that further violations or offenses by the person may be grounds for suspension, revocation, enforcement action, or some combination thereof. A warning is not a prerequisite for initiation of suspension, revocation, or enforcement proceedings.
3. (c) Suspension or revocation. After notice and opportunity for a hearing, the commission may suspend or revoke a license or registration on any of the grounds in Texas Water Code, §7.303(b). A license may also be suspended if a person is identified by the Office of the Attorney General as being delinquent on child support payments (upon receipt of a final order suspending a license or registration, the executive director shall proceed as described in Texas Family Code, Chapter 232).
4. (d) A license or registration may be suspended for a period of up to one year, depending upon the seriousness of the violations. A license or registration shall be revoked automatically upon a second suspension.
5. (e) The commission may revoke a license or registration for a designated term or permanently. If a license or registration is revoked a second time, the revocation shall be permanent.

6. (f) The following procedures for renewal apply to persons who have had their license or registration suspended.

   1. (1) If a license or registration expiration date falls within the suspension period, a person may renew the license or registration during the suspension period according to §30.24 of this title (relating to License and Registration Applications for Renewal) and the applicable subchapters.
   2. (2) After the suspension period has ended, the license or registration shall be automatically reinstated unless the person failed to renew the license or registration during the suspension period.
7. (g) Persons who have had their license or registration revoked shall not have their license or registration automatically reinstated after the revocation period. After the revocation period has ended, a person may apply for a new license or registration according to this chapter.

Source Note:The provisions of this §30.33 adopted to be effective December 17, 2001, 26 TexReg 10330.