(2) The commission may refuse to issue a license or may issue a restricted license to an applicant under the provisions of ORS 475C.005 to 475C.525 if the commission makes a finding that the applicant:
(a) Is in the habit of using alcoholic beverages, habit-forming drugs, marijuana or controlled substances to excess.
(b) Has made false statements to the commission.
(c) Is incompetent or physically unable to carry on the management of the establishment proposed to be licensed.
(d) Has been convicted of violating a federal law, state law or local ordinance if the conviction is substantially related to the fitness and ability of the applicant to lawfully carry out activities under the license.
(e) Is not of good repute and moral character.
(f) Does not have a good record of compliance with ORS 475C.005 to 475C.525 or any rule adopted under ORS 475C.005 to 475C.525.
(g) Is not the legitimate owner of the premises proposed to be licensed, or has not disclosed that other persons have ownership interests in the premises proposed to be licensed.
(h) Has not demonstrated financial responsibility sufficient to adequately meet the requirements of the premises proposed to be licensed.
(i) Is unable to understand the laws of this state relating to marijuana items or the rules adopted under ORS 475C.005 to 475C.525.
(3) Notwithstanding subsection (2)(d) of this section, in determining whether to issue a license or a restricted license to an applicant, the commission may not consider the prior conviction of the applicant or any owner, director, officer, manager, employee, agent or other representative of the applicant for:
(a) The manufacture of marijuana, if:
(A) The date of the conviction is two or more years before the date of the application; and
(B) The person has not been convicted more than once for the manufacture or delivery of marijuana;
(b) The delivery of marijuana to a person 21 years of age or older, if:
(A) The date of the conviction is two or more years before the date of the application; and
(B) The person has not been convicted more than once for the manufacture or delivery of marijuana; or
(c) The possession of marijuana. [Formerly 475B.045]