(a) The executive director may deny an initial or renewal application for the following reasons.
  (1) Insufficiency. The executive director shall notify the applicant of the executive director's intent to deny the application and advise the applicant of the opportunity to file a motion to overturn the executive director's decision under §50.139 of this title (relating to Motion to Overturn Executive Director's Decision). The executive director may determine that an application is insufficient for the following reasons:
    (A) failing to meet the licensing or registration requirements of this chapter; or
    (B) if an out-of-state licensing program does not have requirements substantially equivalent to those of this chapter.
  (2) Cause. After notice and opportunity for a hearing, the commission may deny an application for a license or registration by an applicant who:
    (A) provides fraudulent information or falsifies the application;
    (B) has engaged in fraud or deceit in obtaining or applying for a license or registration;
    (C) has demonstrated gross negligence, incompetence, or misconduct in the performance of activities authorized by a license or registration;
    (D) made an intentional misstatement or misrepresentation of fact or information required to be maintained or submitted to the commission by the applicant or by the license or registration holder;
    (E) failed to keep and transmit records as required by a statute within the commission's jurisdiction or a rule adopted under such a statute; or
    (F) at the time the application is submitted, is indebted to the state for a fee, penalty, or tax imposed by a statute within the commission's jurisdiction or a rule adopted under such a statute.
(b) If an individual causes, contributes to, or allows a violation of this chapter, the executive director may issue a warning letter. The letter shall be placed in the individual's permanent file maintained by the executive director. This letter shall be a warning that further violations or offenses by the individual may be grounds for suspension, revocation, enforcement action, or some combination. A warning is not a prerequisite for initiation of suspension, revocation, or enforcement proceedings.
(c) After notice and hearing, the commission may suspend or revoke a license, certificate, or registration on any of the grounds contained in Texas Water Code, §7.303(b).
(d) After notice and hearing a license or registration may be suspended for a period of up to one year, depending upon the seriousness of the violations. A license or registration shall be revoked after notice and hearing upon a second suspension.
(e) The commission may revoke a license or registration after notice and hearing for a designated term or permanently. If a license or registration is revoked a second time, the revocation shall be permanent.
(f) The following procedures for renewal apply to individuals that have had their license or registration suspended.
  (1) If a license or registration expiration date falls within the suspension period, an individual may renew the license or registration during the suspension period according to §30.24 of this title (relating to License and Registration Applications for Renewal) and the applicable subchapters of this chapter.
  (2) A license or registration suspended in accordance with subsection (j) of this section may not be renewed during the suspension period. The license or registration may only be renewed if the court or the Title IV-D agency renders an order vacating or staying an order suspending the license or registration and the license or registration has not expired during the suspension period.
  (3) After the suspension period has ended, the license or registration shall be automatically reinstated unless the individual failed to renew the license or registration during the suspension period.
(g) Individuals that have had their license or registration revoked shall not have their license or registration reinstated after the revocation period. After the revocation period has ended, an individual may apply for a new license or registration according to this chapter.
(h) Criminal Conviction.
  (1) After notice and hearing, the commission may deny, suspend, or revoke a license on the grounds that the individual has been convicted of an offense, other than a Class C misdemeanor that:
    (A) directly relates to the duties and responsibilities of the licensed occupation;
    (B) is listed in Texas Code of Criminal Procedure, Article 42.12, Section 3g; or
    (C) is a sexually violent offense, as defined by Texas Code of Criminal Procedure, Article 62.001.
  (2) The commission shall revoke the license or registration upon an individual's imprisonment following a felony conviction, felony community supervision revocation, revocation of parole, or revocation of mandatory supervision.
  (3) Prohibited Employment.
    (A) Individuals subject to registration under the Texas Code of Criminal Procedure, Chapter 62 because of a reportable conviction or adjudication for which an affirmative finding is entered under Texas Code of Criminal Procedure, Article 42.015(b) or Section 5(e)(2), Article 45.12, and licensed after September 1, 2013, may not, for compensation, provide or offer to provide any type of service in the residence of another person unless the provision of service will be supervised.
    (B) For purposes of this subsection:
      (i) "Residence" means a structure primarily used as a permanent dwelling and land that is contiguous to that permanent dwelling.
      (ii) "Supervision" means direct, continuous visual observation of the individual at all times.
  (4) Except as provided by paragraph (5) of this subsection, notwithstanding any other law, the executive director may not consider an individual to have been convicted of an offense for purposes of this section if, regardless of the statutory authorization:
    (A) the individual entered a plea of guilty or nolo contendere;
    (B) the judge deferred further proceedings without entering an adjudication of guilt and placed the individual under the supervision of the court or an officer under the supervision of the court; and
    (C) at the end of the period of supervision, the judge dismissed the proceedings and discharged the individual.
  (5) The executive director may consider an individual to have been convicted of an offense for purposes of this section regardless of whether the proceedings were dismissed and the individual was discharged as described by paragraph (4) of this subsection if:
    (A) the individual was charged with:
      (i) any offense described by Texas Code of Criminal Procedure, Article 62.001(5); or
      (ii) an offense other than an offense described by clause (i) of this subparagraph if:
        (I) the individual has not completed the period of supervision or the individual completed the period of supervision less than five years before the date the individual applied for the license; or
        (II) a conviction for the offense would make the individual ineligible for the license by operation of law; and
    (B) after consideration of the factors described by Texas Occupations Code, §53.022 and §53.023(a), the executive director determines that:
      (i) the individual may pose a continued threat to public safety; or
      (ii) employment of the individual in the licensed occupation would create a situation in which the individual has an opportunity to repeat the prohibited conduct.
(i) After notice and hearing, the commission may revoke a maintenance provider registration on any of the grounds in Texas Health and Safety Code, §366.0515(m).
(j) Failure to pay child support.
  (1) The commission may suspend a license or registration if a licensed or registered individual has been identified by the Office of the Attorney General as being delinquent on child support payments (upon receipt of a final order suspending a license or registration, the executive director shall proceed as described in Texas Family Code, Chapter 232).
  (2) The commission shall refuse to accept an application for:
    (A) issuance of a new license or registration to an individual; or
    (B) renewal of an existing license or registration to an individual if:
      (i) the individual has failed to pay child support for six months or more;
      (ii) the commission is notified by a child support agency, as defined by Texas Family Code, §101.004; and
Cont'd...