The department shall investigate each applicant for a license under this chapter. No license may be issued if the department determines that one or more of the following exists:

1. (1) The application is not filed in good faith.
2. (2) The applicant is not the real party in interest.
3. (3) The license of the real party in interest is revoked for cause.
4. (4) Other reasonable cause for nonissuance exists.
5. (5) With respect to an exporter's license the applicant is not licensed in the intended specific state of destination.
6. (6) The applicant has a prior conviction for motor fuel tax evasion.