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Yes, you can absolutely deny him entry based upon this factor. There are no laws Federally or in Oregon that outlaw "criminal background discrimination". So long as the reason that you're doing this is because of the criminal background, it's certainly legal and permissible to deny him entry based on this factor.
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Sorry, got booted off my internet and back on...final question, what is the best way to respond to this person that despite room at camp, his application has been denied?