What must the director do if they refuse to issue a license?

When the director refuses to issue a license, the proper course of action is to promptly notify the applicant and specify the grounds for the refusal. This requirement ensures transparency in the licensing process and gives the applicant a clear understanding of the reasons behind the decision. By outlining the specific grounds for refusal, the director provides the applicant with the information necessary to address any deficiencies or issues that may have led to the denial. This procedural step plays a crucial role in maintaining fairness and accountability in regulatory practices, allowing applicants the opportunity to improve or rectify their applications or follow up on the reasons provided.

Other options, while possibly related to the licensing process, do not align with the regulatory requirements. Offering public information about the refusal may not serve the best interest of the applicant or provide them with constructive feedback. Holding a hearing or automatically returning the application fee are not mandated actions in the context of refusing a license.