(a) Initial review. A response to an incomplete application will ordinarily be made within 14 calendar days of receipt stating that the application is incomplete and specifying the information required for completion.
(b) Application requirements. An application must contain all of the items required in accordance with §85.202 of this title (relating to Filing of New Application), §85.203 of this title (relating to Relocation), or §85.205 of this title (relating to Transfer of License; New License Application on Transfer of Ownership) as appropriate.
(c) Complete application. An application is complete when:
  (1) the application conforms to the statutes, rules, and published instructions;
  (2) all fees have been paid; and
  (3) all requests for additional information have been satisfied.
(d) Competing application. An application in a county with a population of 250,000 or more will be acted upon based on the chronological order in which the application was accepted pursuant to subsection (b) of this section. A competing application may not be granted until a final ruling on any preceding competing application has been made.
(e) Notice of application and protest procedures. A notice of the application will be sent to each pawnshop licensee in the county of the proposed location in accordance with this subsection. The notice will state a date and time, 10 working days following the date of notice, by which any interested person may request a hearing. Any pawnbroker who believes that the applicant's proposed pawnshop will significantly affect that pawnbroker's current business may submit a sworn petition to be admitted as a party in opposition to an application for a new or relocated pawnshop. The sworn petition must contain facts relevant to the eligibility of the applicant and how the protesting pawnshop licensee will be affected by the approving of the proposed application. The commissioner will admit a protesting pawnshop licensee as a party if the protestor can show that it would be significantly affected by the granting of the license and if the protestor can show facts relevant to the eligibility of the applicant. A copy of the sworn petition will be delivered to the applicant and certification of that delivery will be made to the commissioner at the time of filing. A person may appear, present evidence, and be heard on a license only if the person has filed a sworn petition and been accepted as a party by the commissioner.
  (1) Notice of application delivered to master file e-mail address. If a pawnshop licensee has provided a master file e-mail address to the OCCC, then the OCCC will send any notice of application applicable to the pawnshop licensee to the master file e-mail address on file for the pawnshop licensee.
  (2) Notice of application delivered to master file mailing address. If a pawnshop licensee has not provided a master file e-mail address to the OCCC or the OCCC receives notice that attempts to send a notice of application via e-mail have been returned as undeliverable, then the OCCC will send any notice of application applicable to the pawnshop licensee via first class mail to the master file mailing address on file for the pawnshop licensee.
(f) Decision on application. The OCCC may approve or deny an application.
  (1) Approval. The OCCC will approve the application upon payment of the appropriate fees and a finding of the eligibility and statutory location requirements.
    (A) Eligibility requirements.
      (i) A belief that the pawnshop will be operated lawfully and fairly. In evaluating this standard, the OCCC will consider an applicant's background and history. If the OCCC questions the applicant's ability to meet this standard, the OCCC may require further conditions, such as probation, to favorably consider an applicant for a license.
      (ii) Financial responsibility. In evaluating the financial responsibility of an applicant, the OCCC may investigate the history of an applicant and the principal parties of the applicant as to the payment of debts, taxes, and judgments, if any, and handling of financial affairs generally.
      (iii) Experience. In evaluating experience, the OCCC will consider the applicant's background and history as well as the personnel that the applicant plans to use in the operation and management of the pawnshop.
      (iv) Character and fitness. In evaluating an applicant's character and fitness to command the confidence of the public, the OCCC will consider the applicant's overall background and history, including the applicant's criminal history as described in §85.601 of this title (relating to Denial, Suspension, or Revocation Based on Criminal History). Providing misleading information on the application or failing to disclose information to the OCCC may be grounds for denial.
      (v) Net assets. Net assets are calculated by taking the sum of current assets and subtracting all liabilities either secured by those current assets or unsecured. Liabilities not included in the calculation are those liabilities that are secured by assets other than current assets including subordinated debt. Debt that is either unsecured or secured by current assets may be subordinated to the net asset requirement pursuant to an agreement of the parties providing that assets other than current assets are sufficient to secure the debt.
    (B) Distance requirement. A pawnshop within a county with a population of 250,000 or more must not be less than two miles from an existing pawnshop or if the application is for a relocation it must meet the requirements in §85.203(f)(2) of this title.
  (2) Denial.
    (A) Application incomplete 30 days after deficiency notice sent. If an application has not been completed within 30 days after notice of deficiency has been sent to the applicant, the application may be denied.
    (B) Failure to demonstrate requirements. The commissioner may also deny an application when the applicant fails to demonstrate the eligibility requirements or the applicant fails to meet the distance requirements.
(g) Hearing. When an application is denied, the applicant has 30 days from the date of the denial to request a hearing in writing to contest the denial. Also, upon a proper and timely protest pursuant to subsection (e) of this section, a hearing will be set. This hearing will be conducted within 60 days of the date of the appeal or protest unless the parties agree to an extension of time or the administrative law judge grants an extension of time pursuant to the Administrative Procedure Act, Texas Government Code, Chapter 2001 and the rules of procedure applicable under §9.1(a) of this title (relating to Application, Construction, and Definitions), before an administrative law judge who will recommend a decision to the commissioner. The commissioner will then issue a final decision after review of the recommended decision either approving or denying the license.
(h) Processing time. The OCCC will ordinarily approve or deny a license application within 60 days after the date the application is complete. The OCCC may take more time if previous competing applications are on file, the placement of a reinstated expired pawnshop license would have an impact on the approval of an application, or where other good cause exists as defined by Texas Government Code, §2005.004 for exceeding the established time periods in this section.

Source Note: The provisions of this §85.206 adopted to be effective September 5, 1999, 24 TexReg 6714; amended to be effective September 19, 2005, 30 TexReg 5335; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392; amended to be effective March 1, 2016, 41 TexReg 121; amended to be effective January 1, 2017, 41 TexReg 8815; amended to be effective February 1, 2019, 43 TexReg 8584; amended to be effective October 1, 2019, 44 TexReg 4719