(a) Upon refusal to issue or renew a certificate, the department shall notify the applicant of the denial and of his or her right to request a hearing not later than ten days after the date of receipt of the notice of denial.

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(b) If the applicant requests a hearing within such ten days, the department shall give notice of the grounds for its refusal to issue or renew the certificate and shall conduct a hearing concerning such refusal in accordance with the provisions of chapter 54 concerning contested cases.

(c) If the department or commission’s refusal of a certificate is sustained after such hearing, an applicant may make a new application not less than one year after the date on which such refusal was sustained.