1. (a) The executive director may deny an initial or renewal application for the following reasons.

   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 that an application is insufficient for the following reasons:

      1. (A) failing to meet the licensing or registration requirements of this chapter; or
      2. (B) 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 engaged in fraud or deceit in obtaining or applying for a license or registration;
      3. (C) has demonstrated gross negligence, incompetence, or misconduct in the performance of activities authorized by a license or registration;
      4. (D) made an intentional misstatement or misrepresentation of fact or information required to be maintained or submitted to the commission by the applicant or by the license or registration holder;
      5. (E) failed to keep and transmit records as required by a statute within the commission's jurisdiction or a rule adopted under such a statute;
      6. (F) at the time the application is submitted, 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;
      7. (G) is 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

      8. (H) has been convicted of:

         1. (i) an offense that directly relates to the duties and responsibilities of the licensed occupation;
         2. (ii) an offense that does not directly relate to the duties and responsibilities of the licensed occupation and that was committed less than five years before the date the applicant applies for the license;
         3. (iii) an offense listed in Code of Criminal Procedure, Article 42.12, Section 3g; or
         4. (iv) a sexually violent offense, as defined by Code of Criminal Procedure, Article 62.001.
2. (b) 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. A warning is not a prerequisite for initiation of suspension, revocation, or enforcement proceedings.
3. (c) After notice and hearing, the commission may suspend or revoke a license, certificate, or registration on any of the grounds contained in Texas Water Code, §7.303(b).

4. (d) After notice and hearing, the commission may suspend or revoke a license on the grounds that the individual has been convicted of:

   1. (1) an offense that directly relates to the duties and responsibilities of the licensed occupation;
   2. (2) an offense that does not directly relate to the duties and responsibilities of the licensed occupation and that was committed less than five years before the date the individual applies for the license;
   3. (3) an offense listed in Code of Criminal Procedure, Article 42.12, Section 3g; or
   4. (4) a sexually violent offense, as defined by Code of Criminal Procedure, Article 62.001.
5. (e) The commission shall revoke the license or registration upon an individual's imprisonment following a felony conviction, felony community supervision revocation, revocation of parole, or revocation of mandatory supervision.

6. (f) Except as provided by subsection (g) of this section, notwithstanding any other law, the executive director may not consider an individual to have been convicted of an offense for purposes of this section if, regardless of the statutory authorization:

   1. (1) the individual entered a plea of guilty or nolo contendere;
   2. (2) the judge deferred further proceedings without entering an adjudication of guilt and placed the individual under the supervision of the court or an officer under the supervision of the court; and
   3. (3) at the end of the period of supervision, the judge dismissed the proceedings and discharged the individual.

7. (g) The executive director may consider an individual to have been convicted of an offense for purposes of this section regardless of whether the proceedings were dismissed and the individual was discharged as described by subsection (f) of this section if, after consideration of the factors described by Texas Occupations Code, §53.022 and §53.023(a), the executive director determines that:

   1. (1) the individual may pose a continued threat to public safety; or
   2. (2) employment of the individual in the licensed occupation would create a situation in which the individual has an opportunity to repeat the prohibited conduct.
8. (h) After notice and hearing, the commission may revoke a maintenance provider registration on any of the grounds in Texas Health and Safety Code, §366.0515(m).
9. (i) The commission may also suspend a license or registration if a licensed or registered individual has been 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).
10. (j) After notice and hearing 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 after notice and hearing upon a second suspension.
11. (k) The commission may revoke a license or registration after notice and hearing for a designated term or permanently. If a license or registration is revoked a second time, the revocation shall be permanent.

12. (l) The following procedures for renewal apply to persons that 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.
13. (m) Persons that have had their license or registration revoked shall not have their license or registration 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; amended to be effective March 1, 2006, 31 TexReg 1301; amended to be effective September 27, 2007, 32 TexReg 6523; amended to be effective July 8, 2010, 35 TexReg 5894.