Prompt notice has to be given by an agency of its denial in whole or in part of a written application, petition, or other request of an interested person made in connection with any agency proceeding. The notice will be accompanied by a brief statement of the grounds for denial, except in affirming a prior denial or when the denial is self explanatory.[i] An agency can deny a license only on a ground that comes within the statute that establishes the bases for denial.[ii]
In Hughes v. Board of Architectural Examiners, 17 Cal. 4th 763 (Cal. 1998), the court observed that when the intention of the legislature is to protect the health, safety, and welfare of the public, the law must be interpreted broadly so that particular licensees will not easily evade the protective purposes of the statute. Such regulations do not deprive owners of property without due process of law.
In Leone v. Medical Board, 22 Cal. 4th 660 (Cal. 2000), the court observed that after getting license, no person can acquire a vested right to continue in a business, trade or occupation which is subject to legislative control under the police powers.
[i] 5 USCS § 555(e)