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(1) The division may issue a restricted or probationary license to an applicant for licensure, renewal, or reinstatement of licensure if:
(a) the applicant appears to meet the qualifications for licensure, but has engaged in unlawful, unprofessional, or other conduct bearing upon the applicant's qualifications; and
(b) the division determines the need to observe the applicant in a monitored or supervised practice of the applicant's occupation or profession or to attach other reasonable restrictions or conditions upon the applicant in order to accommodate licensure, while protecting the public health, safety, and welfare.
(2) Issuance of a restricted or probationary license is considered a partial denial of licensure that is subject to agency review.