(a) The attorney general shall approve an application for compensation under this chapter if the attorney general finds by a preponderance of the evidence that grounds for compensation under this chapter exist.
(b) The attorney general shall deny an application for compensation under this chapter if:
(1) the criminally injurious conduct is not reported as provided by Article 56B.053;
(2) the application is not made in the manner provided by Articles 56B.051 and 56B.052;
(3) the claimant or victim knowingly and willingly participated in the criminally injurious conduct;
(4) the claimant or victim is the offender or an accomplice of the offender;
(5) an award of compensation to the claimant or victim would benefit the offender or an accomplice of the offender;
(6) the claimant or victim was incarcerated in a penal institution, as defined by § 1.07, Penal Code, at the time the offense was committed; or
(7) the claimant or victim knowingly or intentionally submits false or forged information to the attorney general.

(c) Subsection (b)(3) does not apply to a claimant or victim who seeks compensation for criminally injurious conduct that is:
(1) in violation of Section 20A.02(a)(7), Penal Code; or
(2) trafficking of persons, other than an offense described by Subdivision (1), if the criminally injurious conduct the claimant or victim participated in was the result of force, fraud, or coercion.
(d) Except as provided by rules adopted by the attorney general to prevent the unjust enrichment of an offender, the attorney general may not deny an award otherwise payable to a claimant or victim because the claimant or victim:
(1) is a family member of the offender; or
(2) resides in the same household as the offender.