GROUNDS FOR CANCELLATION OR SUSPENSION: DISTRIBUTOR.

(a) The commission or administrator may suspend for not more than 60 days or cancel an original or renewal general or branch distributor's license if it is found, after notice and hearing, that the licensee:

(1) violated a provision of this code or a rule of the commission during the existence of the license sought to be cancelled or suspended or during the immediately preceding license period;

(2) was finally convicted for violating a penal provision of this code;

(3) was finally convicted of a felony while holding an original or renewal license;

(4) violated Section 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or 108.04-108.06, or a rule or regulation promulgated under Section 5.40;

(5) failed to comply with a requirement of the commission relating to the keeping of records or making of reports;

(6) failed to pay any tax due the state on any malt beverages the licensee sold, stored, or transported;

(7) refused to permit or interfered with an inspection of the licensee's premises, vehicles, books, or records by an authorized representative of the commission;

(8) consummated a sale of malt beverages outside the county or counties in which the licensee was authorized to sell malt beverages under the license;

(9) purchased, sold, offered for sale, distributed, or delivered malt beverages while the license was under suspension;

(10) permitted the use of the licensee's license in the operation of a business conducted for the benefit of a person not authorized by law to have an interest in the business;

(11) made a false or misleading representation or statement in the licensee's original application or a renewal application;

(12) has developed an incapacity that prevents or could prevent the license holder from managing the license holder's establishment with reasonable skill, competence, and safety to the public;

(13) misrepresented any malt beverages sold by the licensee to a retailer or to the public;

(14) with criminal negligence sold or delivered malt beverages to a minor; or

(15) purchased, possessed, stored, sold, or offered for sale malt beverages in an original package bearing a brand or trade name of a brewer other than the brand or trade name of the brewer shown on the container.

(b) Each ground specified in Subsection (a) of this section also applies to each member of a partnership or association and, as to a corporation, to the president, manager, and owner of the majority of the corporate stock. The grounds specified in Subdivisions (7)-(9) and (13)-(15) also apply to an agent, servant, or employee of the licensee.