The issue of proof is a frequent flyer on this blog and a constant issue in law. It takes many forms, such as who must prove what, how, or how convincingly. And it is not limited to courts of law; it pops its head into the administrative lives of licensed businesses, which are legion.
And because nothing in law is simple, or so it seems all too often, should the state be adverse to you, its burden of proof will often vary. It will be different, for instance, to revoke a license than to oppose granting a new one. For a new applicant, the state needs only show by a preponderance of the evidence that it is justified in not granting the license. In other words, if its decision is challenged, it needs only show that it is more likely than not that the business should not be licensed.
On the other hand, a previously licensed business already has a property interest in the license it received to start with. So a revocation (or denying a renewal), which takes away that property, calls for stronger proof – what we call clear and convincing evidence.
These are not the only quirks in dealing with regulators. Administrative processes from agency investigation to challenging their decisions have a life of their own. It will often be useful to have a good attorney’s help charting the course through those waters.