(a) The commission may deny an application for an original or renewal permit if it has reasonable grounds to believe and finds that any of the following circumstances exists:
(1) the applicant has been convicted in a court of competent jurisdiction of the violation of any provision of this code during the two years immediately preceding the filing of the application;
(2) five years have not elapsed since the termination, by pardon or otherwise, of a sentence imposed on the applicant for the conviction of a felony;
(3) within the six-month period immediately preceding the application the applicant violated or caused to be violated a provision of this code or a rule or regulation of the commission which involves moral turpitude, as distinguished from a technical violation of this code or of the rule;
(4) the applicant failed to answer or falsely or incorrectly answered a question in an original or renewal application;
(5) the applicant is indebted to the state for any taxes, fees, or payment of penalty imposed by this code or by rule of the commission;
(6) 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;
(7) the applicant is a minor;
(8) the place or manner in which the applicant may conduct the applicant's business warrants the denial of the application for a permit based on the general welfare, health, peace, morals, and safety of the people and on the public sense of decency;
(9) 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;
(10) the applicant will sell liquor unlawfully in a dry area or in a manner contrary to law or will knowingly permit an agent, servant, or employee to do so;
(11) 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 a permit or renewal permit on or before September 1, 1948, and has at some time been a United States citizen;
(12) the applicant does not provide an adequate building available at the address for which the permit is sought before conducting any activity authorized by the permit;
(13) the applicant is residentially domiciled with a person whose permit or license has been cancelled for cause within the 12 months immediately preceding the date of the applicant's present application;
(14) the applicant has failed or refused to furnish a true copy of the applicant's application to the commission's district office in the district in which the premises for which the permit is sought are located; or
(15) during the six months immediately preceding the filing of the application the premises for which the permit is sought have been operated, used, or frequented for a purpose or in a manner that is lewd, immoral, or offensive to public decency.
(b) The commission shall deny an application for an original permit authorizing the retail sale of alcoholic beverages unless the applicant for the permit 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, if required, for the place of business for which the alcoholic beverage permit is sought.
(c) The commission shall deny for a period of one year after cancellation an application for a mixed beverage permit or private club registration permit for a premises where a license or permit has been canceled during the preceding 12 months as a result of a shooting, stabbing, or other violent act, or as a result of an offense involving drugs, prostitution, or trafficking of persons.
(d) The commission shall deny an application for an original permit of a person convicted of an offense under Section 101.76 for a period of five years from the date of the conviction.
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