According to Commissioner Rick Caruso, such licenses would mislead the people and the patrons to think that these people are somehow or in any way qualified to do what they do.
The said proposal was patterned after the one that was approved in San Francisco.
The decision was not just of the police commissioner but also of the rest of the vice squad police who say that every year, they get about 50 complaints from people who claim that they have been tricked by those who claim to have the ability to speak and deal with spirits and those from another dimension.
According to their data, the average amount that was stripped off from these complainants is about $5,000. However, they are not definite about this since many do not come forward and reveal the exact amount for fear of embarrassment.
While the San Francisco law does not allow fortune tellers and psychics to perform acts that require their clients to give “curse money”, the LA law, on the other hand, requires practitioners to get a license and to post their rates including the complaint procedures.
Furthermore, soothsaying would have to be banned from midnight to 7am which may not be pleasing to those whose powers rely in the darkness.
Source : http://www.psychics.org.au/viewtopic.php?f=31&t=236&sid=2a1f10be33253e5c98d408602663e91a