(a) The commission shall deny an application for a license as a distributor or retailer if the commission has reasonable grounds to believe and finds that:
(1) the applicant is a minor;
(2) the applicant is indebted to the state for any taxes, fees, or penalties imposed by this code or by rule of the commission;
(3) the place or manner in which the applicant for a retail dealer's license may conduct the applicant's business warrants a denial of the application for a license based on the general welfare, health, peace, morals, safety, and sense of decency of the people;
(4) the applicant has developed an incapacity that prevents or could prevent the applicant from conducting the applicant's business with reasonable skill, competence, and safety to the public;
(5) the applicant is not a United States citizen or has not been a citizen of Texas for a period of one year immediately preceding the filing of the applicant's application, unless the applicant was issued an original or renewal license on or before September 1, 1948;
(6) the applicant was finally convicted of a felony during the five years immediately preceding the filing of the applicant's application;
(7) the applicant is not of good moral character or the applicant's reputation for being a peaceable, law-abiding citizen in the community where the applicant resides is bad; or
(8) as to a corporation, it is not incorporated under the laws of this state, or at least 51 percent of the corporate stock is not owned at all times by persons who individually are qualified to obtain a license, except that this subdivision does not apply to a holder of any renewal of a distributor's license which was in effect on January 1, 1953.
(b) The commission shall deny an application for an original retail dealer's or retail dealer's on-premise license unless the applicant for the license files with the application a certificate issued by the comptroller of public accounts stating that the applicant holds, or has applied for and satisfies all legal requirements for the issuance of, a sales tax permit for the place of business for which the license is sought.
(c) The commission shall deny for a period of one year an application for a retail dealer's on-premise license or a wine and malt beverage retailer's permit for a premises where a license or permit has been canceled during the preceding 12 months as a result of:
(1) a shooting, stabbing, or other violent act; or
(2) an offense involving drugs, prostitution, trafficking of persons, or drink solicitation as described by Section 104.01.
(d) The commission shall deny an application for a license of a person convicted of an offense under Section 101.76 for a period of five years from the date of the conviction.