(a) As an alternative to denying, revoking, suspending, or refusing to issue or renew a license under § 51.356 or 51.4012(a) or Chapter 53, the commission or executive director may issue a restricted license to an applicant for a license under:
(1) Chapter 1302; or
(2) Chapter 1305.
(b) The department may impose reasonable conditions on a holder of a restricted license, including requiring the license holder to:
(1) limit the scope or location of the license holder’s practice;
(2) be supervised; and
(3) report to the department, including notifying the department promptly of any change in the license holder’s supervision.

(c) The department may:
(1) include on the face of a license and in the department’s records a statement:
(A) that the license is restricted; and
(B) of any condition of the restricted license; and
(2) use a distinctive design for a restricted license.
(d) A license holder who supervises the holder of a restricted license shall use reasonable care to ensure that the license holder complies with any condition imposed under this section.
(e) The commission or executive director may impose an administrative penalty or other sanction on the holder of a restricted license or on a license holder who supervises the person for a violation of this section.