Sec. 403. (a) The administrator may refuse to issue a license to do business as a distributor in Indiana if:
(1) the application is filed by a person whose license has previously been cancelled for cause;
(2) the application is not filed in good faith, as determined by the administrator;
(3) the application is filed by some person as a subterfuge for the real person in interest whose license has previously been cancelled for cause;
(4) the applicant has an outstanding listed tax liability; or
(5) the applicant has not complied with a filing requirement of the department.
(b) Before being denied a license as a distributor, the applicant is entitled to a hearing with five (5) days written notice. At the hearing the applicant may appear in person or by counsel and present testimony.