(1) The state licensing authority shall deny a state license if the premises on which the applicant proposes to conduct its business does not meet the requirements of this article 11 or for reasons set forth in section 44-11-104 (2)(c) or 44-11-304, and the state licensing authority may deny a license for good cause as defined by section 44-11-104 (2)(a) or (2)(b).
(2) If the state licensing authority denies a state license pursuant to subsection (1) of this section, the applicant shall be entitled to a hearing pursuant to section 24-4-104 (9) and judicial review pursuant to section 24-4-106. The state licensing authority shall provide written notice of the grounds for denial of the state license to the applicant and to the local licensing authority at least fifteen days prior to the hearing.