(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 12 or for reasons set forth in section 44-12-303. The state licensing authority may refuse or deny a license renewal, reinstatement, or initial license issuance for good cause. For purposes of this subsection (1), "good cause" means:
(a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article 12, any rules promulgated pursuant to this article 12, or any supplemental local law, rules, or regulations;
(b) The licensee or applicant has failed to complywith any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority; or
(c) The licensed premises have been operated in a manner that adversely affects the public health or the safety of the immediate neighborhood in which the establishment is located.
(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 jurisdiction at least fifteen days prior to the hearing.
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