Department of Alcoholic Beverage Control v. Alcoholic Beverage Control Appeals Board

7 Cal. App. 5th 628, 213 Cal. Rptr. 3d 130, 2017 Cal. App. LEXIS 28
California Court of Appeal·Decided January 17, 2017·No. C078574·Published·Cited by 7 cases

Opinion

Opinion

HOCH, J.

California Constitution, article XX, section 22, prohibits the sale of alcoholic beverages to persons under 21 years of age. (See also Bus. & Prof. Code, § 25658, subd. (a) 1 [making it a misdemeanor to sell alcohol to a person under 21 years of age].) Here, the Department of Alcoholic Beverage *631 Control (Department) issued a 15-day suspension of an off-sale general license held by the Garfield Beach CVS LLC Longs Drug Stores California LLC, doing business as CVS Pharmacy Store 9174 (CVS), after an administrative law judge found the store clerk sold alcohol to a minor decoy. 2 The Alcoholic Beverage Control Appeals Board (Appeals Board) reversed the suspension based on California Code of Regulations, title 4, section 141 (Rule 141), which allows a law enforcement agency to use an underage decoy only “in a fashion that promotes fairness.” {Id., subd. (a).) In the Appeals Board’s view, the suspension was unfair because the minor decoy did not respond about his age when the store clerk looked at his driver license and remarked, “I would never have guessed it, you must get asked a lot.” To challenge the reversal of the license suspension, the Department petitioned for a writ of review in this court. (§ 23090.)

The Department contends it correctly interprets Rule 141 to require minor decoys to answer only questions about their ages. Based on the administrative law judge’s finding in this case that the store clerk’s remark constituted a statement rather than a question, the Department argues its decision was legally correct and supported by substantial evidence. The Appeals Board counters Rule 141 is ambiguous and results “in confusion and manifest unfairness.” CVS argues the Department’s interpretation of Rule 141 unfairly allows decoys to remain silent in the face of mistaken statements about age. According to CVS, affirming the license suspension would allow deceptive and misleading silence in the face of a store clerk’s explicit mistake about the minor decoy’s age.

We conclude Rule 141 is not ambiguous in requiring minor decoys to answer truthfully only questions about their ages. Because substantial evidence supports the administrative law judge’s factual finding the decoy in this case was not questioned about his age, we determine as a matter of law that Rule 141 does not provide CVS with a defense to the accusation it sold an alcoholic beverage to an underage buyer. Accordingly, we annul the Appeals Board’s decision.

BACKGROUND

The Department’s Imposition of a 15-day License Suspension

In October 2013, the Department accused CVS of selling alcohol to an underage person at its Garfield Beach store. An administrative hearing was *632 held in February 2014, in which the administrative law judge made the following findings of fact: CVS has held an off-sale general license to sell alcohol since June 2009, with no prior record of discipline by the Department. On June 3, 2013, Joseph Childers was 18 years old and had the appearance and mannerisms of a person under the age of 21. On that date, Childers accompanied Department agents and law enforcement officers to conduct an alcoholic beverage decoy operation at the Garfield Beach CVS store. Childers entered the store at 2:30 p.m., went to the beer cooler where he selected a 24-ounce bottle of beer, and took the beer to the checkout line. The CVS store clerk scanned the bottle of beer and asked Childers for identification. Childers handed his California driver license to the clerk. The driver license indicated Childers’s date of birth and had a red stripe with white letters that stated, “AGE 21 IN 2015.” In addition, the driver license had a blue stripe with white letters that stated, “PROVISIONAL UNTIL AGE 18 IN 2012.”

The administrative law judge made the following factual findings: “The clerk looked at Childers’s [driver license], tried to scan it, and looked at the [license] again. She then stated, T would not have guessed it, you must get asked a lot,’ or words to that effect. The clerk’s remark was framed as a statement not a question. The decoy did not say anything to the clerk in response to her remark. He thought the clerk’s statement was ‘casual conversation.’ The decoy also testified the statement might or might not have been related to his age. Thus, in his mind it was unclear what the clerk meant by her statement. [¶] The clerk sold Childers the 24-ounce bottle of Corona beer. At no time during the transaction did the clerk ask Childers how old he was or his age. Following the sale of the beer, the decoy exited the premises.” The administrative law judge found Childers’s testimony at the hearing to be clear, concise, and credible. On this basis, the administrative law judge decided there was cause to suspend CVS’s off-sale general license for 15 days.

In April 2014, the Department adopted the administrative law judge’s proposed decision as its decision in this case. CVS appealed the decision to the Appeals Board.

The Appeals Board’s Reversal of License Suspension

In January 2015, the Appeals Board issued its decision. The Appeals Board’s decision relied upon its prior decision to conclude Rule 141 required the decoy to respond to the store clerk’s statement upon looking at his driver license. The Appeals Board’s decision emphasized the following testimony by the decoy at the administrative hearing:

*633 “[Counsel for CVS]: [A]fter the clerk made that statement to you, what did you take that statement to mean?
“A. [Childers]: Casual conversation.
“Q. And [in] that casual conversation did you see it related in any way to your age?
“A. Yes and no.
“Q. When you say ‘Yes and no,’ what do you mean?
“A. Yes, that maybe I looked younger. No, because she thought I was older or thought that I do it a lot, you know.”

The Appeals Board reasoned that “[w]hen the decoy believes, as here, that a clerk’s remarks are ambiguous as to his or her age, the decoy has an obligation to respond verbally and truthfully. That is the plain meaning of rule 141(a)’s language instructing that minor decoy operations must be conducted in a ‘fashion that promotes fairness.’ ” (Italics omitted.) The Appeals Board further stated that whenever “the decoy him or herself interprets a seller’s comments to in any way pertain to the decoy’s age, the Department should insist that decoy err on the side of responding with clarification.” On these grounds, the Appeals Board reversed the Department’s decision and rescinded the suspension of CVS’s off-sale general license.

Petition for Writ of Review

In February 2015, the Department filed in this court a petition for writ of review from the decision of the Appeals Board. We issued a writ of review in March 2015. (§ 23090.)

DISCUSSION

I

Standard of Review

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Department of Alcoholic Beverage Control v. Alcoholic Beverage Control Appeals Board, 7 Cal. App. 5th 628, 213 Cal. Rptr. 3d 130, 2017 Cal. App. LEXIS 28 (Cal. Ct. App. 2017).

7 Cal. App. 5th 628 (Department of Alcoholic Beverage Control v. Alcoholic Beverage Control Appeals Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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