The department may refuse to issue a guide license to an applicant upon a showing of any of the following:

1. (a) The applicant has failed to fulfill his responsibilities to a client.
2. (b) The applicant has violated this code or any regulation adopted pursuant thereto, or has knowingly permitted a client or another member of a party being guided to violate this code or any regulation adopted pursuant thereto and the applicant had the authority and means to prevent the violation.