(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.

Source Note: The provisions of this §12.15 adopted to be effective January 10, 2016, 41 TexReg 492; amended to be effective March 15, 2017, 42 TexReg 1145