(a) License holder, when used in this section, means a general business license holder, import license holder, or a repair license holder as these terms are defined in §3.602 of this title (relating to Licenses and Certificates, Renewals and Due Dates, Occupation Tax Permits and Exemptions).
(b) If the comptroller determines an applicant is not eligible for a new or renewal license under Occupations Code, Chapter 2153 (Coin-Operated Machines), or if the comptroller proposes to impose sanctions or suspend or revoke a license or registration certificate, the comptroller will notify the applicant, license holder, or registration certificate holder in writing of the proposed action and will state the alleged violation or violations which constitutes grounds for a denial, suspension, or revocation of the license or certificate, or other sanctions. The notice will include the proposed final action of the comptroller. The applicant, license holder, or registration certificate holder may make a written request for a hearing within 20 calendar days of the date of service of the notice.
(c) The comptroller may serve the notice in person or may send the notice by United States certified mail addressed to the applicant, license holder, or registration certificate holder at its last known address; or, in the event that notice cannot be delivered by either of these methods after due diligence, notice will be effective by publishing notice of the proposed action in a newspaper of general circulation in the area in which the license holder, applicant, or registration certificate holder conducts its business activities.
(d) The hearing will be conducted in accordance with the relevant portions of §§1.1 - 1.35 of this title (relating to Rules of Practice and Procedure). The applicant, license holder, or registration certificate holder has the burden of proof by a preponderance of the evidence.
(e) If the applicant, license holder, or registration certificate holder does not request a hearing within 20 calendar days after the date of service of the notice of the comptroller's proposed action, the hearing is waived and the comptroller's proposed action shall be considered the final order or ruling of the comptroller.
(f) After a hearing, any order of the comptroller refusing an application or revoking or suspending a license or registration certificate or imposing other sanctions shall state the reasons therefor, and a copy of the order shall be served immediately on the applicant, license holder, or registration certificate holder in accordance with the procedure in subsection (c) of this section.

Source Note: The provisions of this §3.603 adopted to be effective January 25, 1988, 13 TexReg 246; amended to be effective December 7, 1988, 13 TexReg 5920; amended to be effective October 3, 1989, 14 TexReg 4861; amended to be effective June 4, 2020, 45 TexReg 3639