(a) A person is subject to the denial of an application, imposition of an administrative penalty under Subchapter F, Chapter 51, or disciplinary action under Section 51.353 if the person:
(1) violates this chapter or a rule adopted under this chapter; or
(2) violates a municipal ordinance adopted under Section 1302.303.
(b) A violation of this chapter includes:
(1) failing to provide proper installation, service, or mechanical integrity;
(2) intentionally or knowingly misrepresenting a necessary service, service to be provided, or service that has been provided; or
(3) making a fraudulent promise to induce a person to contract for services.