DENIAL AND DISCIPLINARY ACTIONS; GROUNDS.

(a) The commission, for conduct described by Subsection (b), may:

(1) deny an application or revoke, suspend, or refuse to renew a license or security officer commission;

(2) reprimand a license holder or commissioned security officer; or

(3) place on probation a person whose license or security officer commission has been suspended.

(b) The commission shall take disciplinary action described by Subsection (a) on proof:

(1) that the applicant, license holder, majority owner of a license holder, or commissioned security officer has:

(A) violated this chapter or a rule adopted under this chapter;

(B) become ineligible for licensure or a security officer commission under Section 1702.163, if applicable, other than an action for which the department has taken summary action under Section 1702.364;

(C) engaged in fraud, deceit, or misrepresentation;

(D) made a material misstatement in an application for or renewal of a license or commission;

(E) failed to pay in full an administrative penalty assessed under Subchapter R, Chapter 411, Government Code, for which the commission has issued a final order; or

(F) performed any service for which an individual license is required under this chapter and either:

(i) was not employed with a company licensed under this chapter at the time the service was performed; or

(ii) performed the service for a company licensed under this chapter that was not listed on the individual's individual license without informing the department of the individual's employment with the company within a reasonable period; or

(2) that the company license holder employing an individual license holder or commissioned security officer has submitted to the department sufficient evidence that the individual license holder or commissioned security officer:

(A) engaged in fraud or deceit while employed by the company license holder; or

(B) committed theft while performing work as an individual license holder or commissioned security officer.

(c) The commission may place on probation a person whose license is suspended. If a person's suspension of a license is probated, the commission may require the person:

(1) to report regularly to the department on matters that are the basis of the suspension;

(2) to limit practice to the areas prescribed by the commission; or

(3) to continue or review professional education until the person attains a degree of skill satisfactory to the commission in those areas that are the basis of the probation.

(d) The commission may revoke a license or security officer commission if the person holding that credential under this chapter submits payment of a fee or penalty that is returned for insufficient funds and the person has received notice and an opportunity to provide payment in full.