Section 229.428 - Refusal, Cancellation, Suspension, or Revocation of License(a) The commissioner may refuse an application for a wholesale distributor of prescription 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 a 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 a 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), (jj), and (kk), concerning the counterfeiting of a drug or the sale or holding for sale of a counterfeit drug;(6) has violated the Texas Controlled Substances Act, Texas Health and Safety Code Chapter 481, or the Texas 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 to maintain;(8) fails to complete a license application or submits an application containing false, misleading, or incorrect information or containing information not verifiable by the department;(9) has furnished false or fraudulent information in any application made in connection with drug manufacturing or distribution;(10) has failed to pay a license fee or a renewal fee for a license; or(11) 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 prescription 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 remains 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 § 229.425 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 § 229.425 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;(3) changes name or ownership. For a corporation, an ownership change is deemed to have occurred, resulting in the necessity to return 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.(g) The commissioner may suspend or revoke a license if the license holder no longer meets the qualification for obtaining a license under Texas Health and Safety Code § 431.405.25 Tex. Admin. Code § 229.428
The provisions of this §229.428 adopted to be effective February 1, 2007, 32 TexReg 315; amended to be effective December 9, 2010, 35 TexReg 10755; Amended by Texas Register, Volume 49, Number 37, September 13, 2024, TexReg 7327, eff. 9/18/2024