Each agency administering licenses shall publish, prior to January 1, 1985, regulations prescribing the maximum period of review for each specific license or permit administered by that agency. No license or renewal for which proper and timely application has been made shall be withheld or denied because of the failure of an agency to act within the prescribed maximum period of review. Each agency will remit the application or license fee to any business if its request for a license or permit is not acted upon within the prescribed maximum period for agency review. Nothing within this section shall restrict an agency from denying approval for failure of the applicant to comply with the applicable laws and regulations.