DENIAL OF DISTRIBUTOR'S OR RETAILER'S LICENSE: PROHIBITED INTERESTS

(a) The commission may deny an application for a license as a distributor or retailer if the commission has reasonable grounds to believe and finds that: (1) the applicant has a financial interest in an establishment authorized to sell distilled spirits, except as authorized in Section 22.06, 24.05, or 102.05; (2) a person engaged in the business of selling distilled spirits has a financial interest in the business to be conducted under the license sought by the applicant, except as authorized in Section 22.06, 24.05, or 102.05; or (3) the applicant is residentially domiciled with a person who has a financial interest in an establishment engaged in the business of selling distilled spirits, except as authorized in Section 22.06, 24.05, or 102.05. (b) The commission may deny an application for a retail dealer's license if the commission has reasonable grounds to believe and finds that: (1) the applicant has a real interest in the business or premises of the holder of a brewer's or distributor's license; or (2) the premises sought to be licensed are owned in whole or part by the holder of a brewer's or distributor's license.