(b) The Racing Commission may deny the application and refuse to issue the license or permit, as the case may be, which denial and refusal is final and conclusive unless a hearing is demanded in accordance with the provisions of §19-23-16 of this code, if the Racing Commission finds that the applicant individually, if an individual, or the partners or members, if a partnership, firm, or association, or the owners and directors, if a corporation:

1. (1) Has knowingly made false statement of a material fact in the application or has knowingly failed to disclose any information called for in the application;
2. (2) Is or has been guilty of any corrupt or fraudulent act, practice, or conduct in connection with a horse or dog race meeting in this or any other state;
3. (3) Has been convicted, within 10 years prior to the date of the application, of an offense which under the law of this state, of any other state, or of the United States of America, shall constitute a felony: Provided, That the Racing Commission shall apply §19-23-8(g) and §19-23-8(h) of this code in determining whether an applicant’s prior criminal convictions bear a rational nexus to the license or permit being sought;
4. (4) Has failed to comply with the provisions of this article or any reasonable rules of the Racing Commission;
5. (5) Has had a license to hold or conduct a horse or dog race meeting or a permit to participate therein denied for just cause, suspended, or revoked in any other state;
6. (6) Has defaulted in the payment of any obligation or debt due to this state under the provisions of this article;
7. (7) Is, if a corporation, neither incorporated under the laws of this state nor qualified to do business within this state;
8. (8) In the case of an application for a license, has failed to furnish bond or other adequate security, if the same is required by the Racing Commission under the provisions of §19-23-7 of this code;
9. (9) In the case of an application for a permit, is unqualified to perform the duties required for the permit sought; or
10. (10) In the case of an application for a permit, is, for just cause, determined to be undesirable to perform the duties required of the applicant.

(g) The Racing Commission may not disqualify an applicant from an initial license or permit because of a prior criminal conviction that remains unreversed unless that conviction is for a crime that bears a rational nexus to the activity requiring a license or permit. In determining whether a criminal conviction bears a rational nexus to a profession or occupation, the Racing Commission shall consider at a minimum:

1. (1) The nature and seriousness of the crime for which the individual was convicted;
2. (2) The passage of time since the commission of the crime;
3. (3) The relationship of the crime to the ability, capacity, and fitness required to perform the duties and discharge the responsibilities of the profession or occupation; and
4. (4) Any evidence of rehabilitation or treatment undertaken by the individual.

(h) Notwithstanding any other provision of this code to the contrary, if an applicant is disqualified from a license or permit because of a prior criminal conviction, the commissioner shall permit the applicant to apply for an initial license or permit if:

1. (1) A period of five years has elapsed from the date of conviction or the date of release from incarceration, whichever is later;
2. (2) The individual has not been convicted of any other crime during the period of time following the disqualifying offense; and
3. (3) The conviction was not for an offense of a violent or sexual nature: Provided, That a conviction for an offense of a violent or sexual nature may subject an individual to a longer period of disqualification from licensure, to be determined by the commissioner.