(a) Applicability. In this section:
  (1) the requirements imposed on a pawnbroker apply to all pawnbrokers; and
  (2) the requirements imposed on a pawnshop employee apply only to employees of pawnbrokers that participate in the pawnshop employee license program.
(b) Generally. For the reasons in subsection (c) of this section, the OCCC may take one or more of the following enforcement actions under Texas Finance Code, Chapters 14 and 371:
  (1) an injunction;
  (2) an administrative penalty;
  (3) a suspension; or
  (4) a revocation.
(c) Basis for enforcement actions.
  (1) Eligibility. A pawnbroker or pawnshop employee who fails to maintain eligibility under the Texas Pawnshop Act and the administrative rules promulgated by the OCCC is subject to an injunction, an administrative penalty, suspension or revocation.
  (2) Character and fitness. A pawnbroker or a pawnshop employee must report within 30 calendar days to the OCCC knowledge of any arrest, charge, indictment, or conviction of any of the following filed with the OCCC:
    (A) a principal party named on a pawnshop application;
    (B) a principal party named on a pawnshop license;
    (C) an individual named on a pawnshop employee application; or
    (D) an individual named on a pawnshop employee license.
  (3) Traffic violations. Traffic violations and any action previously reported to the OCCC are not required to be reported.
  (4) ATF investigations and actions. Any known investigation of potential violations by the pawnbroker of federal laws or rules relating to firearms must be reported to the OCCC, but this does not include compliance inspections by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A notice of revocation, suspension, or imposition of civil fine issued by ATF against the federal firearms license must also be reported. Reports must include notices issued on ATF Form 4500 and ATF Form 5300.13 as provided by 27 C.F.R. §478.73 and §478.74, and must be made within three business days of receipt of the notice.
  (5) Failure to comply with the law. A pawnbroker or pawnshop employee who fails to comply with this subchapter or the provisions of Texas Finance Code, Chapter 14 or Chapter 371, is subject to an injunction, suspension, revocation, or an administrative penalty.
  (6) Accepting stolen property. A pawnbroker or pawnshop employee who knowingly or without exercise of due care accepts stolen property or accepts property which has been represented to be stolen without reporting it to law enforcement may be subject to an injunction, suspension, revocation, or an administrative penalty. A pawnbroker or pawnshop employee who has personal knowledge of a pawnbroker or a pawnshop employee accepting stolen property without reporting it to law enforcement is subject to an injunction, suspension, revocation, or an administrative penalty.
  (7) Failure to comply with OCCC order. A pawnbroker or pawnshop employee who fails to comply with an OCCC order is subject to an injunction, suspension, revocation, or an administrative penalty.
  (8) Responsibility for compliance. Any licensed pawnbroker or pawnshop employee who knowingly or without exercise of due care violates the purposes of Texas Finance Code, Chapter 371, or this subchapter is subject to an injunction, suspension, revocation, or an administrative penalty.
  (9) Responsibility for acts of others. Any person who holds a pawnshop license will be responsible for the acts of its officers, directors, employees, and agents in the conduct of the pawnshop business.

Source Note: The provisions of this §85.604 adopted to be effective October 1, 2000, 25 TexReg 9213; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392; amended to be effective February 1, 2019, 43 TexReg 8584; amended to be effective October 1, 2019, 44 TexReg 4719