(a) Except as otherwise provided in subsections (c) and (d), the Lieutenant Governor shall issue a certificate of registration as a provider to a person that complies with sections 405 and 406.
(b) If an applicant has otherwise complied with sections 405 and 406, including a timely effort to obtain the information required by section 406(14) but the information has not been received, the Lieutenant Governor may issue a temporary certificate of registration that expires no later than 180 days after issuance.
(c) The Lieutenant Governor may deny registration if:
(1) the application contains information that is materially erroneous or incomplete;
(2) an officer, director, or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;
(3) the applicant or any of its officers, directors, or owners has defaulted in the payment of money collected for others; or
(4) the Lieutenant Governor finds that the financial responsibility, experience, character, or general fitness of the applicant or its owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.
(d) The Lieutenant Governor shall deny registration if, with respect to an applicant that is organized as a not-for-profit entity or has obtained tax-exempt status under the Internal Revenue Code, 26 U.S.C. Section 501, the applicant's board of directors is not independent of the applicant's employees and agents.
(e) Subject to adjustment of the dollar amount pursuant to section 432(f), a board of directors is not independent for purposes of subsection (d) if more than one-fourth of its members:
(1) are affiliates of the applicant, as defined in section 402(1)(A) or (B)(i), (ii), (iv), (v), (vi), or (vii); or
(2) after the date 10 years before first becoming a director of the applicant, were employed by or directors of a person that received from the applicant more than $25,000 in either the current year or the preceding year.