| (7) |
| (a) | The division may deny, suspend, place on probation, or revoke a license if the division finds that an applicant or licensee has:
| (i) | materially falsified any application filed or required under this chapter; |
| (ii) | violated any state or federal law relating to a controlled substance; |
| (iii) | violated a division rule that reflects adversely on the applicant's or licensee's reliability and integrity with respect to controlled substances; |
| (iv) | had a federal registration or license denied, suspended, or revoked by competent federal authority and is no longer authorized to dispense, distribute, or administer controlled substances; |
| (v) | had the licensee's license suspended or revoked by competent authority of another state for violation of laws or regulations comparable to those of this state relating to the dispensing, distribution, or administration of controlled substances; or |
| (vi) | refused inspection of records required to be maintained under this chapter by a person authorized to inspect the records. |
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| (b) | The division may limit revocation or suspension of a license to a particular controlled substance with respect to which there are grounds for revocation or suspension. |
| (c) |
| (i) | The division may suspend a license simultaneously with instituting proceedings to deny, suspend, place on probation, or revoke a license if the division finds there is an imminent danger to the public health or safety. |
| (ii) | If the division suspends a license under Subsection (7)(c)(i), the suspension is effective until the conclusion of proceedings, including judicial review, unless withdrawn by the division or dissolved by a court. |
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| (d) |
| (i) | If the division suspends a license under this Subsection (7), all controlled substances the licensee owns or possesses may be placed under seal in the discretion of the division. |
| (ii) | Controlled substances under seal may not be disposed until the time for appeal has expired, or until all appeals have been exhausted, unless a court, upon application, orders the sale of perishable substances and the proceeds deposited with the court. |
| (iii) | If a revocation order under this Subsection (7) becomes final, the licensee shall forfeit all controlled substances the licensee owns or possesses. |
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| (e) | The division shall promptly notify the United States Drug Enforcement Administration:
| (i) | if the division issues an order suspending or revoking a license; and |
| (ii) | of a forfeiture of controlled substances under Subsection (7)(d)(iii). |
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| (f) |
| (i) | If a registered agency's United States Drug Enforcement Administration registration is denied, revoked, surrendered, or suspended, the division shall immediately suspend the registered agency's controlled substance license. |
| (ii) |
| (A) | Except as provided in Subsection (7)(f)(ii)(B), the division may only reinstate a license suspended as described in Subsection (7)(f)(i) if the registered agency's United States Drug Enforcement Administration registration is reinstated. |
| (B) | The division may not reinstate a license as described in Subsection (7)(f)(ii)(A), if the division has taken further administrative action under Subsection (7)(a)(iv). |
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