(1) The department shall examine, or provide for the examination of, all applicants for a state pilot’s license or renewal of an existing state pilot’s license pursuant to the rules promulgated under section 44506 to ensure that an applicant has the skill, knowledge, and experience necessary to pilot a charter boat. If the department has reasonable cause to believe it necessary, the department may reexamine the holder of a state pilot’s license at any time to determine continued compliance with the rules. If it is determined by the department that the holder of the state pilot’s license no longer complies with the rules, the department may revoke the license pursuant to chapter 5 of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being section 24.291 to 24.292 of the Michigan Compiled Laws.

  (2) If, after the applicant has successfully completed the examination and paid the fees prescribed in section 44511, the department determines that the applicant is qualified pursuant to the rules promulgated under section 44506, the department shall issue to the applicant a state pilot’s license to be furnished by the department.

  (3) A state pilot’s license shall be issued for a 3-year period.