(a) Upon the filing of a new license application, the department shall make such investigation as is necessary to determine whether the applicant is qualified to receive a license. If, after reasonable investigation of the new license application it is determined that the applicant qualifies for a license, a license shall be issued. If it is determined that the applicant does not qualify for a license, the application shall be denied.

(b) Whenever the department rejects an application for a license it shall furnish the applicant with a written specification of the reason or reasons therefor. Any applicant whose application for a license is rejected by the department may within thirty days' notice of the rejection request that the department hold a hearing.