(a) Failure to comply with Chapter 466 or any of these sections shall be grounds for denial, suspension, or revocation of a narcotic drug permit.
(b) The department may deny an application for a license or may suspend or revoke a license if the applicant or licensee:
  (1) has been convicted of a felony or misdemeanor that involves moral turpitude;
  (2) is an association, partnership, or corporation and the managing officer has been convicted of a felony or misdemeanor that involves moral turpitude;
  (3) has been convicted of a felony or misdemeanor in a state or federal court for the illegal use, sale or transportation of narcotic drugs, barbiturates, amphetamines, or any other dangerous or habit-forming drugs;
  (4) is an association, partnership, or corporation and the managing officer has been convicted of a felony or misdemeanor in a state or federal court for the illegal use, sale, or transportation of narcotic drugs, barbiturates, amphetamines, or any other dangerous or habit-forming drugs;
  (5) has had a permit to operate a narcotic treatment program denied, revoked, surrendered, and/or suspended by the department, Drug Enforcement Administration (DEA), Food and Drug Administration (FDA), and/or Substance Abuse and Mental Health Services Administration (SAMHSA); or
  (6) has obtained or attempted to obtain a license by fraud or deception.
(c) If it appears that an applicant or permit holder has failed to achieve or demonstrate compliance with these sections, the applicant or permit holder shall be given written notice of the denial, suspension, or revocation of the permit and an opportunity for a hearing. Any hearings under this section are governed by §§1.21, 1.23, 1.25, and 1.27 of this title (relating to Formal Hearings Procedures), except for Emergency Orders under Health and Safety Code, §466.041.
(d) An applicant or permit holder may request one informal reconsideration conference with the department prior to the requesting or setting of an administrative hearing under this chapter. The request for such an informal reconsideration may be in addition to the request for a formal hearing and will not waive the person's right to a formal hearing if the outcome of the informal reconsideration is adverse to the person. Requests for the informal reconsideration conference shall be addressed as provided in subsection (e) of this section.
(e) If the applicant or permit holder requests a hearing or informal reconsideration, he/she shall notify the department in writing at 1100 West 49th Street, Austin, Texas 78756, within 15 days of receipt of the notice provided in subsection (c) of this section. If the applicant or permit holder does not request a hearing or reconsideration within the specified time in the notice, then the applicant or permit holder shall be presumed to have agreed with denial of the application, or suspension or revocation of the permit as stated in the notice.
  (1) The request for a hearing and/or informal reconsideration shall:
    (A) indicate the name(s) of the person(s) who will represent the applicant or permit holder; and
    (B) include an explanation of the specific point(s) that are being disputed.
  (2) Regarding the informal reconsideration conference, the department will contact the applicant or permit holder in writing or orally to discuss a mutually agreeable time and place for the meeting.
  (3) The department may orally advise the applicant or permit holder of their decision relative to the informal hearing, with written confirmation to follow.
(f) The department may take emergency action in accordance with the Health and Safety Code, §466.041, and may immediately suspend an approved narcotic drug permit when approval is withdrawn from the permit holder by the SAMHSA or a registration is revoked by the DEA. The suspension shall be effective until the permit is surrendered, revoked, or reinstated. Any hearings under this section are governed by §§1.21, 1.23, 1.25, and 1.27 of this title (relating to Formal Hearings Procedures).

Source Note: The provisions of this §229.147 adopted to be effective September 3, 1990, 15 TexReg 4823; amended to be effective September 1, 1992, 17 TexReg 5545; amended to be effective August 28, 1996, 21 TexReg 7845.; amended to be effective December 31, 2001, 26 TexReg 10871; amended to be effective January 1, 2005, 29 TexReg 11980