Licensing
What does "Licensing" mean in law?
An administrative process by which an agency grants, denies, renews, or revokes permission for a regulated party to engage in an activity that would otherwise be prohibited. Under the APA, licensing proceedings are a form of adjudication, and when a statute requires a hearing on the record, the formal adjudication procedures of Sections 556 and 557 apply. The APA provides specific protections for licensees: Section 558(c) requires that an applicant be given notice of and opportunity to demonstrate compliance before a license can be denied, and an existing license cannot be revoked or suspended without the licensee first being given written notice and opportunity to achieve compliance. Licensing decisions must be based on the statutory criteria and are reviewable for abuse of discretion.
Definition
An administrative process by which an agency grants, denies, renews, or revokes permission for a regulated party to engage in an activity that would otherwise be prohibited. Under the APA, licensing proceedings are a form of adjudication, and when a statute requires a hearing on the record, the formal adjudication procedures of Sections 556 and 557 apply. The APA provides specific protections for licensees: Section 558(c) requires that an applicant be given notice of and opportunity to demonstrate compliance before a license can be denied, and an existing license cannot be revoked or suspended without the licensee first being given written notice and opportunity to achieve compliance. Licensing decisions must be based on the statutory criteria and are reviewable for abuse of discretion.
Example
The Nuclear Regulatory Commission conducted a formal adjudicatory hearing before deciding whether to grant a power company's application for a license to operate a new nuclear reactor, as required by the Atomic Energy Act.