The comptroller may reject an application and deny a permit if the comptroller finds, after notice and opportunity for hearing, any of the following:

1. (1) the premises where business will be conducted are not adequate to protect the cigarettes or cigarette stamps; or

2. (2) the applicant or managing employee, or if the applicant is a corporation, an officer, director, manager, or any stockholder who holds directly or through family or partner relationship 10 percent or more of the corporation's stock, or, if the applicant is a partnership, a partner or manager:

   1. (A) has failed to disclose any information required by Sections 154.101(d), (e), and (f), including prior business experience, financial condition of the permit holder, present or previous business affiliations, prior employment, and any conviction of a felony, or has made a false statement in the application; or
   2. (B) has previously violated provisions of this chapter.

Acts 1981, 67th Leg., p. 1646, ch. 389, Sec. 1, eff. Jan. 1, 1982.

Amended by Acts 1989, 71st Leg., ch. 240, Sec. 19, eff. Oct. 1, 1989;

Acts 1991, 72nd Leg., ch. 409, Sec. 20, eff. June 7, 1991;

Acts 1997, 75th Leg., ch. 1423, Sec. 19.35, eff. Sept. 1, 1997.