1. (a) A registration to manufacture, distribute, analyze, or dispense a controlled substance may be suspended, denied, or revoked in accordance with the Act upon finding that the registrant:

   1. (1) has furnished false or fraudulent material or information in any application filed under the Act;
   2. (2) has been convicted of a felony;
   3. (3) has had his registration or application for registration under the Federal Controlled Substances Act suspended, denied, or revoked to manufacture, distribute, analyze, or dispense controlled substances;
   4. (4) has had his practitioner's license under the laws of this state suspended or revoked;
   5. (5) has failed to establish and maintain effective controls against diversion of controlled substances into other than legitimate medical, scientific, or industrial channels, as provided by federal regulations or laws now in effect or as set out in applicable sections of this title relating to security;
   6. (6) has willfully failed to maintain records required to be kept or has willfully or unreasonably refused to allow an inspection authorized by the Act, Subchapter F; or
   7. (7) has violated a provision of this Act or a rule adopted under this Act.
2. (b) The revocation or suspension of a registration may be limited to the particular schedule or controlled substance within a schedule with respect to which grounds for revocation or suspension exist.
3. (c) If a registration is suspended or revoked, all controlled substances owned or possessed by the registrant at the time of suspension or the effective date of the revocation order may be placed under seal. No disposition may be made of substances under seal until the time for taking an appeal has elapsed or until all appeals have been concluded unless a court, upon application thereof, orders the sale of perishable substances and the deposit of the proceeds of the sale with the court. Upon a revocation order becoming final, all controlled substances may be forfeited to the state as provided under the Code of Criminal Procedure, Chapter 59.
4. (d) If a registration is suspended, revoked, denied, cancelled, or surrendered, all unused triplicate prescription forms issued under the Act, §481.075(a), shall within seven days after the suspension, revocation, denial, cancellation, or surrender becomes effective be returned to the department.
5. (e) The purpose of the Act being to promote the public health and welfare by the control of the illegal drug traffic, the operation of any registrant in violation of the regulations specified in this section is hereby declared to be a public nuisance, and the director may apply to any court of competent jurisdiction for and may obtain an injunction suspending the registration of the offender.
6. (f) The Rules of Civil Procedure shall govern proceedings under this section except when in conflict herewith.
7. (g) The director shall promptly notify the Drug Enforcement Administration and state agencies of all orders suspending or revoking registration and all forfeitures of controlled substances.

Source Note:The provisions of this §13.25 adopted to be effective February 13, 1991, 16 TexReg 569.