Which standard supports an agency license or disciplinary decision?

• A. A public referendum.
• B. A majority vote.
• C. A rational basis or substantial evidence.
• D. The governor's signature.

Answer: (C)

When courts review an agency’s licensing or disciplinary decision, they look for substantial evidence in the record to support the agency’s factual findings. Substantial evidence means enough relevant material that a reasonable person could rely on to reach the same conclusion; it respects the agency’s expertise while preventing arbitrary action. The broader idea of rational basis can apply in some contexts, but for licensing and discipline, the precise standard is substantial evidence because it directly ties the decision to solid, evidentiary support rather than to mere policy preferences. The other options describe political or executive processes (a public referendum or majority vote, or the governor’s signature) rather than the judicial review standard used to test agency decisions.