(

a) The registrar may deny any application for a license or supplemental classification where the applicant has failed to comply with any rule or regulation adopted pursuant to this

chapter or where there are grounds for denial under

Section 480. Procedures for denial of an application shall be conducted in accordance with

Section 485. (

b) When the board has denied an application for a license on grounds that the applicant has committed a crime substantially related to qualifications, functions, or duties of a contractor, it shall, in its decision or in its notice under subdivision (

b) of

Section 485, inform the applicant of the earliest date on which the applicant may reapply for a license. The board shall develop criteria, similar to the criteria developed to evaluate rehabilitation, to establish the earliest date on which the applicant may reapply. The date set by the registrar shall not be more than five years from the effective date of the decision or service of notice under subdivision (

b) of

Section 485. (

c) The board shall inform an applicant that all competent evidence of rehabilitation shall be considered upon reapplication. (

d) Along with the decision or notice under subdivision (

b) of

Section 485, the board shall serve a copy of the criteria for rehabilitation formulated under

Section 482. (

e) In lieu of denying licensure as authorized under this section, the registrar may issue an applicant a probationary license with terms and conditions. During the probationary period, if information is brought to the attention of the registrar regarding any act or omission of the licensee constituting grounds for discipline or denial of licensure for which the registrar determines that revocation of the probationary license would be proper, the registrar shall notify the applicant to show cause within days why the probationary license should not be revoked. The proceedings shall be conducted in accordance with the provisions of

Chapter 5 (commencing with

Section 11500) of Part of Division of Title of the Government Code, and the registrar shall have all the powers granted therein. A probationary license shall not be renewed during any period in which any proceeding brought pursuant to this

section is pending.