Section 78213 - Denial of Initial Application(a) The Department may deny the application for licensure if the requirements for licensure or certification are not met. An application shall be denied if the applicant: (1) Has failed to comply with the approved county adult day health plan.(2) Previously violated Department regulations and there is probability of noncompliance by the applicant.(3) Has not been certified as an adult day health care provider.(4) Has past conviction of any crime, especially any crime involving misuse of funds or physical abuse.(b) Upon the denial of the application, a written notice of denial shall be sent by the Department by certified mail informing the applicant of the denial, setting forth the reasons for denial and advising the applicant of the right to petition for a hearing.(c) An applicant may submit a written petition for hearing to the Department within 15 days after the Department mails the notice.(d) The Department shall upon receipt of the petition for hearing, consult the Office of Administrative Hearings who shall determine the time and place of hearing.(e) The hearing shall be initiated in accordance with Section 11504 of the Government Code by filing and serving a statement of issues defining the disputed issues, specifying the statute and rules with which the respondent must show compliance by producing proof at the hearing.(f) The statement of issues together with the notice of hearing shall be delivered or mailed to the applicant as provided in Section 11509 of the Government Code.(g) A copy of Sections 11506.5, 11507.6 and 11507.7 and the name and address of the person to whom requests for hearing may be made, shall be served with the statement of issues.(h) The proceeding shall be conducted in accordance with Chapter 5, commencing with Section 11500, Division 3, Title 2, Government Code.(i) Hearing concerning denial of licensure for adult day health care provider shall be conducted concurrently with any hearing concerning denial of certification as a provider of adult day health care services.Cal. Code Regs. Tit. 22, § 78213