The board may deny, refuse to renew, suspend, or revoke any license issued under this chapter upon finding by a preponderance of the evidence that the applicant or licenseholder:

1. Has been convicted of an offense determined by the board to have a direct bearing upon the individual's ability to practice counseling and is not sufficiently rehabilitated as determined by the board in accordance with section 12.1-33-02.1;

2. Has been grossly negligent in the practice of counseling and has injured a client or other person to whom the individual owed a duty; or

3. Has violated any rule of the board.