(1) The Director may refuse an application for the issue of an operator licence if the Director is satisfied that—
(a) the applicant has insufficient knowledge of the provisions of the Act, these Regulations or any notice under section 15 of the Act applying to the operation of regulated recreational vessels; or
(b) the applicant has refused to undergo, or has failed, any test the Director has required the applicant to undergo under Part 10A of the Act; or
(c) in the case of an applicant who has been disqualified from operating a recreational vessel in another State or a Territory of the Commonwealth, after being convicted of an offence involving alcohol or other drugs, the applicant has failed to provide evidence that he or she has complied with any requirements of the law of that State or Territory relating to the assessment of operators convicted of offences involving alcohol or other drugs.
(2) If, under subregulation (1), the Director decides to refuse an application to issue an operator licence, the Director must notify the applicant of that decision.
(3) A notice under subregulation (2) must be in writing and must set out the reasons for the refusal.