(a) The board may discipline an applicant for or the holder of a pharmacy license, including a Class E pharmacy license subject to Section 565.003, if the board finds that the applicant or license holder has:
(1) been convicted of or placed on deferred adjudication community supervision or deferred disposition or the applicable federal equivalent for:
(A) a misdemeanor:
(i) involving moral turpitude; or
(ii) under Chapter 481 or 483, Health and Safety Code, or the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. § 801 et seq.); or
(B) a felony;
(2) advertised a prescription drug or device in a deceitful, misleading, or fraudulent manner;
(3) violated any provision of this subtitle or any rule adopted under this subtitle or that an owner or employee of a pharmacy has violated any provision of this subtitle or any rule adopted under this subtitle;
(4) sold without legal authorization a prescription drug or device to a person other than:
(A) a pharmacy licensed by the board;
(B) a practitioner;
(C) a person who procures a prescription drug or device for lawful research, teaching, or testing, and not for resale;
(D) a manufacturer or wholesaler licensed by the commissioner of public health as required by Chapter 431, Health and Safety Code; or
(E) a carrier or warehouseman;
(5) allowed an employee who is not a pharmacist to practice pharmacy;
(6) sold an adulterated or misbranded prescription or nonprescription drug;
(7) failed to engage in or ceased to engage in the business described in the application for a license;
(8) failed to maintain records as required by this subtitle, Chapter 481 or 483, Health and Safety Code, the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. § 801 et seq.), or any rule adopted under this subtitle or Chapter 483, Health and Safety Code;
(9) failed to establish and maintain effective controls against diversion of prescription drugs into other than a legitimate medical, scientific, or industrial channel as provided by this subtitle, another state statute or rule, or a federal statute or rule;
(10) engaged in fraud, deceit, or misrepresentation as defined by board rule in:
(A) operating a pharmacy;
(B) applying for a license to operate a pharmacy; or
(C) dispensing drugs for nontherapeutic purposes;
(11) violated a disciplinary order;
(12) been responsible for a drug audit shortage;
(13) been disciplined by the regulatory board of another state for conduct substantially equivalent to conduct described under this subsection; or
(14) waived, discounted, or reduced, or offered to waive, discount, or reduce, a patient copayment or deductible for a compounded drug in the absence of:
(A) a legitimate, documented financial hardship of the patient; or
(B) evidence of a good faith effort to collect the copayment or deductible from the patient.
(b) This subsection applies only to an applicant or license holder that is a legal business entity. The board may discipline an applicant for or the holder of a pharmacy license, including a Class E pharmacy license, if the board finds that a managing officer of the applicant or license holder has been convicted of or placed on deferred adjudication community supervision or deferred disposition or the applicable federal equivalent for:
(1) a misdemeanor:
(A) involving moral turpitude; or
(B) under Chapter 481 or 483, Health and Safety Code, or the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. § 801 et seq.); or
(2) a felony.

(c) A certified copy of the record of the state taking action described by Subsection (a)(13) is conclusive evidence of the action taken by that state.