; (B) the applicant is, by reason of business experience, financial standing, or trade connections, not likely to commence operations within a reasonable period or to maintain such operations in conformity with Federal law; (C) that the operations proposed to be conducted by the applicant are in violation of the law of the State in which they are to be conducted; or (D) the applicant has failed to disclose any material information required or made any material false statement in the application therefor. (2) Disqualifying offenses For the purposes of paragraph (1): (A) Generally Except as provided for in subparagraph (B), a disqualifying offense is an offense related to the production, consumption, or sale of marijuana that is— (i) a felony under Federal or State law, if the conviction occurred not later than 3 years before the date of application; or (ii) a misdemeanor under Federal or State law, if the conviction occurred not later than 1 year before the application. (B) Excluded offenses A disqualifying offense does not include a Federal or State offense based on conduct that— (i) was legal under State law in the State when and where the conduct took place