1. (a) Denial of salvage vehicle dealer or agent license. The department shall deny issuance of a salvage vehicle dealer license, if:

   1. (1) all the information required on the application is not complete;
   2. (2) the applicant or any of its owners, officers, or directors made a false statement or material misrepresentation on the application;
   3. (3) the affidavit and business references required by §217.73 of this subchapter (relating to Salvage Vehicle Dealer License) are inadequate due to incomplete information being provided or misrepresentation of applicant's reputation or character;
   4. (4) the applicant or any of its owners, officers, or directors have been convicted of a felony for which less than three years have elapsed since the termination of the sentence, parole, mandatory supervision, or probation;
   5. (5) the applicant's or any of its owners', officers', or directors' previous salvage vehicle dealer or agent license was revoked and the first anniversary of the date of revocation has not occurred; or
   6. (6) the applicant is an immediate family member, such as a spouse, child, parent, grandparent, niece, nephew, uncle, or aunt, of a previously licensed salvage vehicle dealer whose license has been revoked, and the business location is the same as the location of the revoked salvage vehicle dealer.

2. (b) Suspension or revocation. The department may suspend or revoke a salvage vehicle dealer or agent license if the dealer, including officers and directors if a corporate license, or agent:

   1. (1) fails to maintain purchase, sales, and inventory records as provided in §217.80 of this subchapter (relating to Record of Purchases, Sales, and Inventory);
   2. (2) refuses to permit or fails to comply with a request by a representative of the department or a peace officer to examine, during normal working hours, or while the premises are occupied, the purchase, sales, and inventory records and ownership documents for non-repairable or salvage motor vehicles or used parts owned by that dealer or under that dealer's control;
   3. (3) holds one or more classifications of salvage vehicle dealer or agent licenses and is found to be dealing in another classification for which a license has not been issued to the dealer or agent;
   4. (4) fails to notify the department of a change of address within 10 days after such change;
   5. (5) fails to notify the department of a dealer's name or ownership change within 10 days after such change;
   6. (6) fails to notify the department of the termination of an agent who was authorized to operate under the salvage vehicle dealer's license within 10 days after such termination;
   7. (7) fails to follow the restriction of the sale, transfer, or release of a non-repairable or salvage motor vehicle as provided in §217.79(d) of this subchapter (relating to Licensee Duties);
   8. (8) fails to meet the timeframes and requirements provided in §217.76 of this subchapter (relating to Place of Business);
   9. (9) fails to remain regularly and actively engaged in the business for which the salvage vehicle dealer or agent license is issued;
   10. (10) sells more than five non-repairable or salvage motor vehicles to the same person in a casual sale during a calendar year;
   11. (11) uses or allows use of the dealer's or agent's license or location for the purpose of avoiding the provisions of the salvage vehicle dealer law;
   12. (12) sells or offers for sale non-repairable or salvage motor vehicles or used parts from any location other than a licensed salvage vehicle dealer's business location that has been approved by the department;
   13. (13) is convicted of a felony after initial issuance or renewal of the salvage vehicle dealer or agent license or less than three years have elapsed since the termination of the sentence, parole, mandatory supervision, or probation for a felony conviction of the applicant;
   14. (14) makes a false statement or material misrepresentation in any application or other information filed with the department;
   15. (15) fails to remit payment for administrative penalties imposed by the department under Occupations Code, §2302.354, Administrative Penalty; or
   16. (16) violates any of the provisions of Transportation Code, Chapter 501, Occupations Code, Chapter 2302, or any provisions of this subchapter.
3. (c) Administrative penalties. The department may impose an administrative penalty on a licensee as authorized in Occupations Code §2302.354 for violations of Chapter 2302 or a rule or order adopted under that chapter.

4. (d) Suspension or refusal to renew due to failure to pay court ordered child support.

   1. (1) On receipt of a final order suspending a license, issued under Family Code, §232.008, the department will suspend or refuse to renew a dealer's or agent's license issued under this subchapter.
   2. (2) The department will charge an administrative fee of $10 to a dealer or agent who is the subject of an order suspending license.

5. (e) Proceedings relating to administrative sanctions. Administrative sanctions may include license denial, suspension, revocation and the imposition of administrative penalties.

   1. (1) Upon determination that a dealer or agent license should be denied, suspended, or revoked, or an administrative penalty imposed upon a dealer or agent licensee, the department shall mail a Notice of Department Decision to the licensee or license applicant to the last known address of the dealer, agent or license applicant by certified mail.

      1. (A) The Notice of Department Decision shall include:

         1. (i) the reason for each sanction;
         2. (ii) a brief summary of and legal basis for the alleged violation or grounds for denial;
         3. (iii) the effective date of the sanction;
         4. (iv) the right of the dealer, agent or license applicant to request an administrative hearing;
         5. (v) a statement that a suspension or revocation shall also apply to licensed salvage vehicle dealer agents authorized by the dealer;
         6. (vi) a statement as to the procedure for requesting a hearing and rehearing, including the period during which a request must be made; and
         7. (vii) a statement that the proposed sanctions will take effect on the date specified in the Notice of Department Decision if the licensee or license applicant fails to request a hearing.
      2. (B) A request for an administrative hearing under this section must be made in writing and received by the department within 26 days of the date the Notice of Department Decision is mailed by the department.
   2. (2) If timely requested, the department shall set an administrative hearing and give notice of the hearing to the licensee or license applicant. The hearing shall be conducted by an administrative law judge of the State Office of Administrative Hearings.
   3. (3) If the licensee or license applicant does not make a request for hearing or enter into a settlement agreement before the 27th day after the date the Notice of Department Decision is mailed, the matter becomes final in accordance with Government Code, Chapter 2001 (Administrative Procedure Act).
6. (f) Re-application after revocation of license. A person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation.
7. (g) Refund of fees. The department will not refund fees paid by a salvage vehicle dealer or agent if the license is revoked or suspended.

Source Note:The provisions of this §217.81 adopted to be effective March 4, 2010, 35 TexReg 1761; amended to be effective February 2, 2012, 37 TexReg 356.