| (a) The department may refuse an application for a
wholesale distributor of nonprescription drugs license or may suspend
or revoke such a license if the applicant or license holder:
(1) has been convicted of a felony or misdemeanor involving
moral turpitude;
(2) is an association, partnership, or corporation
and the managing officer or any officer or director of the corporation
has been convicted of a felony or misdemeanor involving moral turpitude;
(3) is an association, partnership, or corporation
and the managing officer or any officer or director of the corporation
has been convicted of a felony or misdemeanor involving 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) has violated any of the provisions of the Texas,
Food, Drug, and Cosmetic Act, Texas Health and Safety Code Chapter
431 (Act), or this subchapter.
(5) has violated the Texas Health and Safety Code §431.021(l)(3),
concerning the counterfeiting of a drug or the sale or holding for
sale of a counterfeit drug;
(6) has violated the Controlled Substance Act, Texas
Health and Safety Code Chapter 481, or the Dangerous Drug Act, Texas
Health and Safety Code Chapter 483 ;
(7) has violated the rules of the director of the Department
of Public Safety, including being responsible for a significant discrepancy
in the records that state law requires the applicant or license holder
maintain;
(8) has failed to complete a license application or
submits an application containing false, misleading, or incorrect
information, or information that cannot be verified by the department;
(9) has failed to pay a license fee or a renewal fee
for a license; or
(10) has obtained or attempted to obtain a license
by fraud or deception.
(b) The department may, after providing opportunity
for hearing, refuse to license a wholesale distributor of nonprescription
drugs, or may suspend or revoke a license for violations of the requirements
in this subchapter or for any of the reasons described in the Act.
(c) Any hearings for the refusal, suspension, or revocation
of a license are governed by §§1.21, 1.23, 1.25, and 1.27
of this title (relating to Formal Hearing Procedures).
(d) If the department suspends a license, the suspension
must remain in effect until the department determines the reason for
the suspension no longer exists. If the suspension overlaps a renewal
date, the suspended license holder must comply with the renewal procedures
in §229.247 of this subchapter (relating to Licensing Procedures);
however, the department may choose not to renew the license until
the department determines the reason for suspension no longer exists.
(e) If the department revokes or does not renew a license,
a person may reapply for a license by complying with the requirements
and procedures in §229.247 of this subchapter at the time of
reapplication. The department may refuse to issue a license if the
reason for revocation or non-renewal continues to exist.
(f) A license issued under this subchapter must be
returned to the department if the person's place of business:
(1) ceases business or otherwise ceases operation on
a permanent basis;
(2) relocates; or
(3) changes name or ownership. For a corporation, an
ownership change is deemed to have occurred, requiring return of the
license to the department, when 5.0 percent or more of the share of
stock of a corporation is transferred from one person to another.
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