get from HPD that it needs to a psychologist.  get that in writing, not just someone down there saying that.

That part that is confusing, as I understand it HPD is not allowed to ask or know what your medical issue is that a doctor has decided / is required to flag you for. You have a legal right to medical privacy, you dont surrender that by applying for a permit. Kaiser or who ever kicks back a flag to HPD that has zero information other than No-Go, Kaiser sends you a copy of your history showing you specifically what they have decided is a red flag, Kaiser also says that they dont know if that should disqualify you or that your are still having the issue.

 Its all a lot of CYA / Dont Sue Me / We Dont Wanna Get Sued on the part of the doctor and HPD. Just go talk to the Doc, get the letter and bring it every time you apply. Its not a big deal, just another hoop they make you jump.

It's no shock that you need to present your clearance letter each time you submit an application for a permit.  Same rule applies to the training affidavit/Hunter's Ed certificate.