Both the Federal Administrative Procedure Act and the Model State Administrative Procedure Act provide provisions that deal with the renewal and extensions of licenses. According to the Federal Administrative Procedure Act, when the licensee makes an application for a renewal or for a new license as per the agency rules, a license with reference to an activity of a continuing nature will not expire until the application is finally determined by the agency.[i] Model State Administrative Procedure Act also provides the same provision regarding the application for a new license or the renewal of the license.
The extension provision intends to protect the licensees. It protects against the suspension or revocation unless written notice of the objectionable conduct is given to the licensee and assures that s/he is given an opportunity to comply with all lawful requirements. It also provides that if the licensee sought timely renewal, the valuable rights conferred by a license for a limited term will not be lost only because the agency failed to decide the application before the expiry of the existing license.[ii] However, the extension provision will not apply if the application for renewal is deficient.
According to Model State Administrative Procedure Act, if the renewal of a license is required to be preceded by notice and opportunity for hearing, the provisions of the Act concerning contested cases apply as same as in the case of the grant of a license.
[i] 5 USCS § 558(c)
[ii] Cotton Petroleum Corp. v. United States Dep’t of Interior, Bureau of Indian Affairs, 870 F.2d 1515 (10th Cir. Okla. 1989