Dept. of Bus. Reg., Div. of Alcoholic Beverages and Tobacco v. Martin Cty. Liquors, Inc.

574 So. 2d 170, 1991 WL 5006
CourtDistrict Court of Appeal of Florida
DecidedJanuary 15, 1991
Docket88-2902, 89-2231
StatusPublished
Cited by5 cases

This text of 574 So. 2d 170 (Dept. of Bus. Reg., Div. of Alcoholic Beverages and Tobacco v. Martin Cty. Liquors, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dept. of Bus. Reg., Div. of Alcoholic Beverages and Tobacco v. Martin Cty. Liquors, Inc., 574 So. 2d 170, 1991 WL 5006 (Fla. Ct. App. 1991).

Opinion

574 So.2d 170 (1991)

DEPARTMENT OF BUSINESS REGULATION, DIVISION OF ALCOHOLIC BEVERAGES AND TOBACCO, Appellant,
v.
MARTIN COUNTY LIQUORS, INC., Appellee.
MARTIN COUNTY LIQUORS, INC., d/b/a Martin County Liquors, Appellant,
v.
DEPARTMENT OF BUSINESS REGULATION, DIVISION OF ALCOHOLIC BEVERAGES AND TOBACCO, Appellee.

Nos. 88-2902, 89-2231.

District Court of Appeal of Florida, First District.

January 15, 1991.
Rehearing sought and Denied February 21, 1991.

*171 Katherine A. Emrich, Asst. General Counsel, Dept. of Business Regulation, for appellant in Case No. 88-2902.

J. Stanley Chapman and H.F. Rick Mann of Ervin, Varn, Jacobs, Odom & Ervin, Tallahassee, for appellee in Case No. 88-2902 and appellant in Case No. 89-2231.

Harry Hooper, Deputy Counsel, Dept. of Business Regulation, Tallahassee, for appellee in Case No. 88-2902.

Rehearing sought and Denied in 89-2231 February 21, 1991.

NIMMONS, Judge.

In case number 88-2902, appellant, Department of Business Regulation, Division of Alcoholic Beverages and Tobacco ("DABT"), appeals from the hearing officer's *172 final order in a Section 120.56, Florida Statutes (1987), rule challenge in which the hearing officer found the Department's requirements that applicants for quota liquor licenses provide documentation supporting financial arrangements and demonstrate a "right of occupancy" are an invalid exercise of delegated legislative authority. The Department also appeals the finding that Section 302 of the DABT's standardized policy and procedure defining what constitutes a completed application is an invalid exercise of delegated legislative authority.

In case number 89-2231, appellant, Martin County Liquors, Inc., appeals from a final order of the DABT following a Section 120.57 formal hearing in which the DABT adopted in toto the hearing officer's recommended order wherein the hearing officer found the Department's disapproval of the application for a quota liquor license was proper.

We have elected to consolidate these two cases for purpose of this opinion since they are based on the same set of facts. We affirm in both cases.

In September, 1984, a drawing for quota liquor licenses was held by the DABT. Alcoholic beverage licenses are issued according to a double random lottery-type drawing that is based on increases in county population. Applicants are ranked in numerical order, and if they do not qualify, runners-up are entitled to apply for a "quota" license. Quota licenses are more valuable than ordinary beverage licenses, are limited in number, and permit the sale of all types of alcoholic beverages regardless of the type of business.

John H. Michaels was selected in the September drawing for an available liquor license in Martin County, Florida. In a notification letter sent by the DABT, Michaels was instructed to "file a full and complete application within 45 days" of the date the letter was sent. The letter indicated a completed application should include the location of the business and zoning approval. Michaels was to contact the district office for forms and instructions. The forms referred to were DBR 700L (Application for Alcoholic Beverage License) and DBR 710L (Personal Questionnaire). Failure to comply would be deemed by DABT to be a waiver of his right to file for the new quota license.

Michaels, through his wholly owned corporation, Martin County Liquors, Inc., submitted his application in timely fashion. However, it was incomplete, as it lacked a business location, zoning approval, right of occupancy information, documentation regarding the commercial loan listed, or a sketch of the licensed premises. At the same time the application was submitted, a 45-day extension to obtain a properly zoned business location was requested and granted.

A second 45-day extension was requested one day before the first extension expired. This second request was denied. Martin County Liquors, Inc. nevertheless attempted to supplement its application. It submitted an application which included a business location, zoning approval, and a sketch of the licensed premises. The DABT denied the application because the "application [is] incomplete in that applicant has failed to file a right of occupancy for a specific location within the extended period as granted by the agency. Also, applicant has failed to provide complete verification of his financial investment," citing Section 561.18, Florida Statutes.

The denial of the license was challenged in the Section 120.57 proceeding referred to above. In her recommended order, the hearing officer found the second extension requested did not address any new matters or explain why the previous 45-day extension was insufficient. In her conclusions of law, the hearing officer found the second extension request did not show a good faith attempt to comply with the first extension deadline, and that Martin County Liquors, Inc. could not qualify for a license because it did not submit a location as part of its application, thus waiving its right to file for a quota license. As earlier noted, the recommended order was adopted by the DABT. This gave rise to the appeal by Martin County Liquors, Inc. in case number 89-2231.

*173 Following the conclusion of the 120.57 formal hearing, Martin County Liquors, Inc. filed a petition challenging the validity of DBR 700L and DBR 710L since they were not filed with the Office of the Secretary of State, as well as the validity of Section 302 of the Division's policy and procedures manual since it constituted a rule and was not properly promulgated as such. A formal hearing was conducted and the hearing officer concluded that application form DBR 700L was an unpromulgated rule because the DABT failed to file a copy with the Secretary of State, and thus the requirements the form purports to impose of documentation of financial arrangements and right of occupancy information are an invalid exercise of delegated legislative authority. He also found that the DABT policy statement in Section 302 of their manual defining complete and incomplete license applications was an invalid exercise of delegated legislative authority. Appeal by the DABT followed in case number 88-2902.

The DABT asserts that Martin County Liquors, Inc. does not have standing to maintain the rule challenge proceeding because it suffered no injury. We disagree with the Division's contention and hold that the appellee has demonstrated a direct injury in fact of sufficient immediacy and reality and is continuing to suffer adverse effects. Florida Department of Offender Rehabilitation v. Jerry, 353 So.2d 1230 (Fla. 1st DCA 1978); Professional Firefighters of Florida, Inc. v. Department of Health and Rehabilitative Services, State of Florida, 396 So.2d 1194 (Fla. 1st DCA 1981).

Under Section 120.52(16), Florida Statutes (1987), "rule" is defined as:

... each agency statement of general applicability that implements, interprets, or prescribes law or policy or describes the organization, procedure, or practice requirements of an agency and includes any form which imposes any requirement or solicits any information not specifically required by statute or by an existing rule.

Under Section 120.52(8)(a), Florida Statutes (1987), a proposed or existing rule is an invalid exercise of delegated legislative authority if:

(a) The agency has materially failed to follow the applicable rulemaking procedures set forth in s. 120.54.

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574 So. 2d 170, 1991 WL 5006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dept-of-bus-reg-div-of-alcoholic-beverages-and-tobacco-v-martin-cty-fladistctapp-1991.