§ 87163 — Denial of License Application

(a)  Except as specified in Section 87162(a), which provides that the applicant may be issued a provisional license based upon substantial compliance and immediate need, the licensing agency shall deny an application for an initial license if it is determined that the applicant is not in compliance with applicable law and regulations.

(b)  The licensing agency shall have the authority to deny an application for an initial license if the applicant has failed to pay any civil penalty assessments pursuant to Section 87768, Unlicensed Facility Penalties, and in accordance with a final judgment issued by a court of competent jurisdiction, unless payment arrangements acceptable to the licensing agency have been made.

(c)  The licensing agency shall have the authority to deny an initial application if the applicant does not comply with Sections 87155(a)(2) and (9), and Health and Safety Code sections 1569.1515(b) and 1569.50.

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Health and Safety Code section 1569.1515(b) provides:

"(b)  The department shall not issue a provisional license or license to any corporate applicant that has a member of the board of directors, the executive director, or an officer who is not eligible for licensure pursuant to Sections 1569.16 and 1569.59."

Health and Safety Code section 1569.50(a) provides:

"(a)  The department may deny an application for a license or may suspend or revoke any license issued under this chapter upon any of the following grounds and in the manner provided in this chapter:

(1)  Violation by the licensee of this chapter or of the rules and regulations adopted under this chapter.

(2)  Aiding, abetting, or permitting the violation of this chapter or of the rules and regulations adopted under this chapter.

(3)  Conduct that is inimical to the health, morals, welfare, or safety of either an individual in or receiving services from the facility or the people of the State of California.

(4)  The conviction of a licensee, or other person mentioned in Section 1569.17 at any time before or during licensure, of a crime as defined in Section 1569.17.

(5)  Engaging in acts of financial malfeasance concerning the operation of a facility, including, but not limited to, improper use or embezzlement of client moneys and property or fraudulent appropriation for personal gain of facility moneys and property, or willful or negligent failure to provide services for the care of clients."

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(d)  If the application for an initial license is denied, the application processing fee shall be forfeited.

(e)  If the application for an initial license is denied, the licensing agency shall send a written notice of denial by certified mail.  The notification shall inform the applicant of the denial; set forth the reasons for the denial; and advise the applicant of the right to appeal.

(f)  Except as otherwise specified by Health and Safety Code section 1569.50(d), an applicant may appeal the denial of the application by sending a written notice of appeal to the licensing agency within 15 days of the postmark date of the denial notice.

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Health and Safety Code section 1569.50(d) provides:

"(d) A licensee who abandons the facility and the residents in care resulting in an immediate and substantial threat to the health and safety of the abandoned residents, in addition to revocation of the license pursuant to this section, shall be excluded from licensure in facilities licensed by the department without the right to petition for reinstatement."

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(g)  The licensing agency shall, upon receipt of the notice of appeal, advise the applicant in writing of the appeal procedure.

(h)  The proceedings to review such denial shall be conducted pursuant to the provisions of Chapter 5 (commencing with Section 11500), Part 1, Division 3, Title 2 of the Government Code.

NOTE:  Authority cited:  Section 1569.30, Health and Safety Code.  Reference:  Sections 1569.1, 1569.15, 1569.1515, 1569.17, 1569.185, 1569.20, 1569.21, 1569.22, 1569.23, 1569.485, 1569.49, 1569.50, 1569.51, 1569.52 and 1569.53, Health and Safety Code.