Sec. 11.5. (a) The department may refuse to issue or renew a license issued under this chapter if:
(1) the application is filed by a person whose license has previously been canceled for cause (including a similar license issued by another state);
(2) the application is not filed in good faith, as determined by the department;
(3) the application is filed by a person as a subterfuge for the real person in interest whose license has previously been canceled for cause;
(4) the applicant has been convicted of fraud, misrepresentation, or any other offense that indicates the applicant may not comply with this chapter if issued a license;
(5) the applicant has an outstanding listed tax liability; or
(6) 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.