A. An office may deny an application for an initial license or a continuing license if:
(1) The applicant or the building in which child care is provided fails to meet the requirements of this chapter;
(2) An evaluation of the application form, medical documents, or any documents required by the office reveals that the applicant reported false information;
(3) The applicant has a history of regulatory violations which demonstrates an inability to provide for the health or safety of children;
(4) The applicant has previously had a family day care registration, child care center license, or letter of compliance denied or revoked by the office, unless the office is satisfied that the condition that was the basis for the denial or revocation has been corrected;
(5) The applicant prevents the office from completing its responsibilities for licensing;
(6) An evaluation of criminal records or records of abuse or neglect of children and adults indicates, for those identified in Regulation .02A(4) and .02B(1) of this chapter, behavior harmful to children; or
(7) The office concludes that the applicant cannot provide for the health, safety, or welfare of the children in care on the basis of:
(a) Substantial, credible evidence of the applicant's abuse of alcohol or controlled dangerous substances, mental instability, or other condition; or
(b) Other pertinent information received by the office which creates reasonable doubt as to the applicant's ability to provide child care in accordance with this subtitle.
B. If the office denies an application, the office shall notify the applicant in writing by certified mail of the denial, stating the:
(1) Reason for denial;
(2) Specific regulation with which the applicant has failed to comply that is the basis for the denial;
(3) Applicant's right to request a hearing; and
(4) Procedure to be used if the applicant wishes to request a hearing to appeal the decision of the office.
C. Denial Before Complete Application.
(1) The office may deny an application for an initial or a continuing license at any point during the application process if, following evaluation of information received to that point, the office determines that a basis for denial exists as set forth in §A of this regulation.
(2) If the office decides to deny the application before the application process is complete, the office shall send written notice of that decision to the applicant within 30 calendar days after making the decision.