| (a) An original or renewal application may be denied
for any of the following reasons:
(1) failure of the application to comply with §72.3
of this title (relating to Application and License), including failure
to include the required application or licensing fee; or
(2) where the secretary of state determines that the
intended use is detrimental to the image of the state or otherwise
not in the state's best interests.
(b) Suspension or revocation of license. A license
may be suspended or revoked if the secretary of state determines that
the licensee is using or has used the state seal in a manner detrimental
to the image of the state or otherwise not in the state's best interests.
(c) Uses that are detrimental to the image of the state
or otherwise not in the state's best interests may include the following:
(1) abuse of the state seal;
(2) criminal use of the state seal;
(3) failure to observe reporting requirements, including
payment of royalty fees;
(4) failure or refusal to allow monitoring under §72.9
of this title (related to Monitoring) or §17.08(f), Texas Business &
Commerce Code;
(5) use in violation of §17.08, Texas Business &
Commerce Code or these sections;
(6) continuing violation after notice thereof; and
(7) such other uses as determined by the secretary
of state.
(d) The denial of an application or renewal, or the
suspension or revocation of a license, is subject to the right of
notice, hearing, and adjudication as set out in the rules of practice
and procedure before the Office of the Secretary of State, the rules
of the State Office of Administrative Hearings, and the Administrative
Procedure Act, Government Code, §§2001.001 - 2001.902. Any
party to a contested case has the right to be represented by legal
counsel. Such action will be subject to the right of appeal to a district
court of Travis County.
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