The local licensing authority, in approving or denying an application for a license or renewal of a license, shall proceed as follows:
(1) If the application is approved, the local licensing authority shall issue a license in the form provided in this chapter;
(2) If the application is denied, the local licensing authority shall notify the applicant or licensee, in writing, of the denial and state the reasons for the authority’s action;
(3) Within fifteen (15) days from the receipt of notice, the applicant or licensee may request a hearing in writing;
(4) If a request for a hearing is received in a timely manner, the local licensing authority shall set a date for a hearing and notify the parties of the time and place of the hearing;
(5) All hearings shall be held in accordance with the provisions of chapter 35 of title 42.