Sec. 548.407. HEARING ON DENIAL, REVOCATION, OR SUSPENSION OF CERTIFICATE

(a) Before an application for certification as an inspection station or inspector is denied, the director or a person the director designates shall give the person written notification of:

(1) the proposed denial;

(2) each reason for the proposed denial; and

(3) the person's right to an administrative hearing to determine whether the evidence warrants the denial.

(b) Before a certificate of appointment as an inspector or inspection station is revoked or suspended, the director or a person the director designates shall give written notification to the inspector or inspection station of the revocation or the period of suspension. The notice shall include:

(1) the effective date of the revocation or the period of the suspension, as applicable;

(2) each reason for the revocation or suspension; and

(3) a statement explaining the person's right to an administrative hearing to determine whether the evidence warrants the revocation or suspension.

(c) Notice under Subsection (a) or (b) must be made by personal delivery or by mail to the last address given to the department by the person.

(d) The department may provide that a revocation or suspension takes effect on receipt of notice under Subsection (b) if the department finds that the action is necessary to prevent or remedy a threat to public health, safety, or welfare. Violations that present a threat to public health, safety, or welfare include:

(1) issuing an inspection certificate with knowledge that the issuance is in violation of this chapter or rules adopted under this chapter;

(2) falsely or fraudulently representing to the owner or operator of a vehicle that equipment inspected or required to be inspected must be repaired, adjusted, or replaced for the vehicle to pass an inspection;

(3) issuing an inspection certificate:

(A) without authorization to issue the certificate; or

(B) without inspecting the vehicle;

(4) issuing an inspection certificate for a vehicle with knowledge that the vehicle has not been repaired, adjusted, or corrected after an inspection has shown a repair, adjustment, or correction to be necessary;

(5) knowingly issuing an inspection certificate:

(A) for a vehicle without conducting an inspection of each item required to be inspected; or

(B) for a vehicle that is missing an item required to be inspected or that has an item required to be inspected that is not in compliance with state law or department rules;

(6) refusing to allow a vehicle's owner to have a qualified person of the owner's choice make a required repair, adjustment, or correction;

(7) charging for an inspection an amount greater than the authorized fee;

(8) a violation of Subchapter F;

(9) a violation of Section 548.603; or

(10) a conviction of a felony or a Class A or B misdemeanor that directly relates to or affects the duties or responsibilities of a vehicle inspection station or inspector or a conviction of a similar crime under the jurisdiction of another state or the federal government.

(e) For purposes of Subsection (d)(10), a person is convicted of an offense if a court enters against the person an adjudication of the person's guilt, including an order of probation or deferred adjudication.

(f) To obtain an administrative hearing on a denial, suspension, or revocation under this section, a person must submit a written request for a hearing to the director not later than the 20th day after the date notice is delivered personally or is mailed.

(g) If the director receives a timely request under Subsection (f), the director shall provide the person with an opportunity for a hearing as soon as practicable. A hearing on a revocation or suspension under Subsection (d) that takes effect on receipt of the notice must be held not later than 14 days after the department receives the request for hearing. The revocation or suspension continues in effect until the hearing is completed if the hearing is continued beyond the 14-day period:

(1) at the request of the inspector or inspection station; or

(2) on a finding of good cause by a judge, administrative law judge, or hearing officer.

(h) If the director does not receive a timely request under Subsection (f), the director may deny the application, revoke or suspend a certificate, or sustain the revocation or suspension of a certificate without a hearing.

(i) Except as provided by Subsection (g), the hearing must be held not earlier than the 11th day after the date written notice of the hearing and a copy of the charges is given to the person by personal service or by certified mail to the last address given to the department by the person.

(j) The director or a person designated by the director shall conduct the hearing and may administer oaths and issue subpoenas for the attendance of witnesses and the production of relevant books, papers, or documents. If the hearing is conducted by a person designated by the director, the director may take action under this section on a recommendation of the designated person.

(k) On the basis of the evidence submitted at the hearing, the director may deny the application or revoke or suspend the certificate.

(l) If an administrative law judge of the State Office of Administrative Hearings conducts a hearing under this section and the proposal for decision supports the position of the department, the proposal for decision may recommend a denial of an application or a revocation or suspension of a certificate only. The proposal may not recommend a reprimand or a probated or otherwise deferred disposition of the denial, revocation, or suspension. If the administrative law judge makes a proposal for a decision to deny an application or to suspend or revoke a certificate, the administrative law judge shall include in the proposal a finding of the costs, fees, expenses, and reasonable and necessary attorney's fees the state incurred in bringing the proceeding. The director may adopt the finding for costs, fees, and expenses and make the finding a part of the final order entered in the proceeding. Proceeds collected from a finding made under this subsection shall be paid to the department.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1069, Sec. 12, eff. June 19, 1997; Acts 1999, 76th Leg., ch. 1189, Sec. 32, eff. Sept. 1, 1999.