(a) The Department of Revenue may refuse to issue an inspection fee permit under this article if the applicant or any principal of the applicant has done any of the following:
(1) Had a motor fuel license or registration issued by this state or another state canceled for cause.
(2) Been convicted of any offense involving fraud or misrepresentation.
(3) Been convicted of any other offense that indicates that the applicant may not comply with this article if issued an inspection fee permit.
(b) The Department of Revenue may also refuse to issue an inspection fee permit if the applicant is in arrears to the state for any taxes or fees or for other good cause shown.
(c) Any refusal by the Department of Revenue under this section to issue an inspection fee permit may be appealed under the provisions of Chapter 2A of Title 40.