California Health and Safety Code § 1762.8

Health and Safety Code
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The state department may deny an application for, or suspend or revoke a license issued under the provisions of this chapter in the manner provided in Section 1763 upon, any of the following grounds: (a) A serious violation by the licensee of any of the provisions of this chapter, of any other law, or of the rules and regulations promulgated under this chapter that jeopardizes the health and safety of patients. (b) Aiding, abetting, or permitting the commission of any illegal act. (c) Willful omission or falsification of a material fact in the application for a license.

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