(a)    (1)    The Secretary shall suspend a dealer’s license if the licensee:

(i)    is under indictment for a crime of violence; or

(ii)    is arrested for a violation of this subtitle that prohibits the purchase or possession of a regulated firearm.

(2)    (i)    The Secretary may suspend a dealer’s license if the licensee is not in compliance with the record keeping and reporting requirements of § 5–145 of this subtitle.

(ii)    The Secretary may lift a suspension under this paragraph after the licensee provides evidence that the record keeping violation has been corrected.

(b)    The Secretary shall revoke a dealer’s license if:

(1)    it is discovered that false information has been supplied or false statements have been made in an application required by this subtitle; or

(2)    the licensee:

(i)    is convicted of a disqualifying crime;

(ii)    is convicted of a violation classified as a common law crime and receives a term of imprisonment of more than 2 years;

(iii)    is a fugitive from justice;

(iv)    is a habitual drunkard;

(v)    is addicted to a controlled dangerous substance or is a habitual user;

(vi)    has spent more than 30 consecutive days in a medical institution for treatment of a mental disorder, unless the licensee produces a physician’s certificate, issued after the last institutionalization and certifying that the licensee is capable of possessing a regulated firearm without undue danger to the licensee or to another;

(vii)    has knowingly or willfully manufactured, offered to sell, or sold a handgun not on the handgun roster in violation of § 5-406 of this title; or

(viii)    has knowingly or willfully participated in a straw purchase of a regulated firearm.

(c)    If the Secretary suspends or revokes a dealer’s license, the Secretary shall notify the licensee in writing of the suspension or revocation.

(d)    A person whose dealer’s license is suspended or revoked may not engage in the business of selling, renting, or transferring regulated firearms, unless the suspension or revocation has been subsequently withdrawn by the Secretary or overruled by a court in accordance with § 5-116 of this subtitle.