Section 3316. Granting of renewal of licenses

1. The commissioner shall
  renew a license unless he determines and finds that the applicant:
    (a) is unlikely to maintain or be able to maintain  effective  control
  against diversion; or
    (b)  is  unlikely to comply with all federal and state laws applicable
  to the manufacture  or  distribution  of  the  controlled  substance  or
  substances for which the license is sought.
    2.  For  purposes  of  this section, proof that a licensee, during the
  period of his license, has failed to maintain effective control  against
  diversion  or  has  knowingly  or  negligently  failed  to  comply  with
  applicable  federal  or  state  laws  relating  to  the  manufacture  or
  distribution  of  controlled  substances,  shall  constitute substantial
  evidence that the applicant  will  be  unlikely  to  maintain  effective
  control  against  diversion or be unlikely to comply with the applicable
  federal or state statutes during the period of proposed renewal.