These are the type of things that need to be fixed before a license is issued. The license is contingent upon following the law, not the other way around - get the license and then comply with the law.
As long as HLA refuses to meet minimum licensing standards, no license will be issued. It's plain and simple.
This positioning by HLA should be viewed as an indicator that no license is forthcoming and that it will be forced to cease and desist childcare based on lack of appropriate licensing.