| (a) The department may deny the application for a license
as a dispensing organization if the applicant fails to pass the initial
review of the application materials or the onsite inspection, based
on the failure to satisfy the requirements reflected in subsection
(b)(7) of §12.11 of this title (relating to Application for License),
and has either failed to address the basis for the failure within
sixty (60) days of notice of the failure, or has failed to request
an additional thirty (30) days to address the basis for the failure.
(b) The department may deny the application for a license
if the applicant is found to have violated any provision of the Act
or this chapter, or §§481.120, 481.121, 481.122, or 481.125
of the Texas Health and Safety Code prior to licensure or renewal.
(c) The department may also deny the application for
a license from an otherwise qualified applicant if the department
determines issuance of the license is not necessary to ensure reasonable
statewide access to, and the availability of low-THC cannabis for
patients registered in the compassionate-use registry and for whom
low-THC cannabis is prescribed under Chapter 169, Occupations Code.
(d) Following the notice of denial the applicant will
be provided thirty (30) days to request a hearing by submitting a
request through the department's website.
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