Answer:
It must renew the license, but the licensee must be put on probation. Explanation:
The whole idea behind the licensing procedure is to make sure that licencees follow the laws, follow professional standards, and if they don't, they can be disciplined or sanctioned.
If the licencing agency believes that the licensee did something wrong, it must investigate the issue or issues, but while it is carrying out its investigation, it must renew the licencee's license (at least temporarily) and place the licencee on probation status. Unless it can prove that the licensee did something wrong, it cannot prevent the licensee from working.