Headworks Handcrafted Ales, Wa State Liquor & Cannabis

CourtCourt of Appeals of Washington
DecidedJanuary 2, 2024
Docket84927-1
StatusPublished

This text of Headworks Handcrafted Ales, Wa State Liquor & Cannabis (Headworks Handcrafted Ales, Wa State Liquor & Cannabis) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Headworks Handcrafted Ales, Wa State Liquor & Cannabis, (Wash. Ct. App. 2024).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

HEADWORKS HAND CRAFTED ALES, INC., dba HEADWORKS No. 84927-1-I BREWING, DIVISION ONE Appellant, PUBLISHED OPINION v.

WASHINGTON STATE LIQUOR AND CANNABIS BOARD,

Respondent.

HAZELRIGG, A.C.J. — After multiple warnings, the Washington State Liquor

and Cannabis Board (LCB) issued an administrative violation notice (AVN) to

Headworks Hand Crafted Ales Inc. dba Headworks Brewing due to its failure to

comply with the pandemic-related mask mandate issued by the state Department

of Health in 2020. Headworks seeks judicial review of the final order that affirmed

the violation and argues that the LCB did not have statutory authority to issue the

AVN, and, alternatively, the LCB’s action violated constitutional due process.

Because the LCB has statutory authority to issue the AVN under Title 66 RCW and

the failure to comply with the statewide mask mandate posed a “threat to public

safety” under WAC 314-11-015(3)(c), we affirm the final order. No. 84927-1-I/2

FACTS

On February 29, 2020, due to the outbreak of the novel coronavirus

infection disease (COVID-19), Governor Jay Inslee issued Proclamation 20-05,

which declared a state of emergency for all counties in Washington. 1 The governor

exercised his emergency powers under RCW 43.06.220 and issued several

subsequent proclamations amending the original including Proclamations 20-25

through 20-25.20 which prohibited certain activities unless specific conditions were

met. On June 24, 2020, the secretary of health issued Order 20-03, directing

everyone in Washington to wear a face covering in “any indoor or outdoor public

setting.” 2 Although the secretary amended the order on May 15, 2021 to exempt

fully vaccinated people, 3 the order was subsequently amended on August 19, 2021

to reinstitute the face covering mandate regardless of vaccination status “when in

a place where any person from outside their household is present.” 4 On

September 13, 2021, the governor amended Proclamations 20-25 through

20-25.16 to incorporate the secretary of health’s face covering order and all

subsequent amendments thereto. 5 Proclamations 20-05 through 20-25 as well as

1 Proclamation of Governor Jay Inslee, No. 20-05 (Wash. Feb. 29, 2020), governor.wa.gov/sites/default/files/proclamations/20-05%20Coronavirus%20%28final%29.pdf [https://perma.cc/TAF6-QNGB]. 2 Wash. Sec’y of Health, Ord. No. 20-03 (Wash. June 24, 2020), mrsc.org/getmedia/d6167fa2-f2a3-427f-936b-f630098d859f/Secretary_of_Health_Order_20-03_ Statewide_Face_Coverings.pdf [https://perma.cc/DUV4-92K3]. 3 Wash. Sec’y of Health, Ord. No. 20-03.2 (Wash. May 15, 2021), mrsc.org/getmedia/6649c06a-bfe6-48a7-829a-d499d2d99238/SHO_20-03-2_Statewide_Face_ Coverings.pdf. 4 Wash. Sec’y of Health, Ord. No. 20-03.4 (Wash. Aug. 19, 2021), mrsc.org/getmedia/485b7566-e399-4602-9f83-47cfb37140c8/Secretary_of_Health_Order_ 20-03-4_Statewide_Face_Coverings.pdf 5 Proclamation of Governor Jay Inslee, No. 20-25.17 (Wash. Sept. 13, 2021), governor.wa.gov/sites/default/files/proclamations/proc_20-25.17.pdf.

-2- No. 84927-1-I/3

Order 20-03 and its subsequent amendments, are collectively referred to herein

as the “mask mandate.”

Headworks is a brewery located in Enumclaw, Washington that is open to

the public and offers alcoholic beverages to its customers. Headworks applied for

and was issued a license to sell alcohol by the LCB. On September 8, 2021, the

LCB received a public complaint that Headworks employees and customers were

not adhering to the mask mandate. Three days later, LCB enforcement officers

conducted a check of the premises and observed the bartender not wearing a

mask. During a follow-up visit the next week, LCB Enforcement Officer Richard

Steinbach observed three Headworks employees working in the brewery without

masks. After Steinbach informed Headworks manager, Gino Santamaria, of the

public complaint and masking requirements, Santamaria stated that Headworks

would neither refuse service to unmasked patrons nor require employees to wear

masks. On September 20 and October 5, 2021, the LCB received additional public

complaints concerning Headworks’ failure to comply with the mask mandate.

On October 8, 2021, Steinbach returned to the brewery and observed three

Headworks employees working without masks. At the time, there were

approximately 15-25 patrons at the establishment. Steinbach contacted two of the

employees, explained that they were required to wear masks, and informed them

that Headworks would receive a written warning for noncompliance with the mask

mandate. On October 13, the written warning was issued and, in it, the LCB

directed Headworks to comply with the mask mandate and advised that further

noncompliance would result in a violation of WAC 314-11-015. The written

-3- No. 84927-1-I/4

warning also included a copy of the secretary of health’s Order 20-03.6, 6 along

with a document providing guidance on the COVID-19 facial covering requirements

for employers and businesses.

That November, the LCB received three more public complaints about

Headworks’ continued failure to follow the mask mandate. In response, Steinbach

called Santamaria, notified him of the complaints, and said that he would conduct

a check of the premises in the following week to determine whether Headworks

was in compliance with the masking requirements. During the phone call,

Santamaria asked what would qualify as a legitimate exemption from the mask

mandate and Steinbach stated that Headworks “would need to determine that on

their own and it would need to be a case-by-case basis with each employee.”

Steinbach also “offered one suggestion of having those employees who want a

medical exemption from wearing a mask to provide a doctor’s note as a way for

them as the employer to give credibility to that process.” Santamaria responded

that it would be a violation of the employees’ rights to require a doctor’s note in

order to validate a mask exemption. According to Steinbach, his “take-away from

that conversation was that Headworks Brewing did not believe in the legality of the

mask mandate and thus was not enforcing the mask wearing by their employees.”

On November 23, Steinbach returned to the brewery and observed three

employees, including Santamaria, working without face coverings. Steinbach met

with Santamaria who continued to question the legality of the mask mandate and

6 Wash. Sec’y of Health, Ord. No. 20-03.6 (Wash. Sept. 24, 2021), mrsc.org/getmedia/5862c24f-a144-4f14-9045-043b9bf9c0dd/Secretary_of_Health_Order_20-03- 6_Statewide_Face_Coverings.pdf.

-4- No. 84927-1-I/5

told Steinbach that Headworks employees were not required to wear masks

because the mandate was not a law. After Steinbach’s inspection, the LCB issued

Headworks an AVN on December 2, 2021. The AVN referenced WAC 314-11-

015, established that the violation was for a COVID-19 related complaint, and

imposed a penalty of a five-day license suspension or $500 fine in lieu of

suspension.

Headworks appealed the AVN and requested an administrative hearing.

Accordingly, the LCB requested assignment of an administrative law judge (ALJ)

and issued “LCB Complaint No. L-27,636” which was based on the original AVN.

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