Señor Iguana's, Inc. v. Idaho State Police Bureau of Alcohol Beverage Control

371 P.3d 344, 160 Idaho 290
CourtIdaho Supreme Court
DecidedMay 3, 2016
Docket43158
StatusPublished

This text of 371 P.3d 344 (Señor Iguana's, Inc. v. Idaho State Police Bureau of Alcohol Beverage Control) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Señor Iguana's, Inc. v. Idaho State Police Bureau of Alcohol Beverage Control, 371 P.3d 344, 160 Idaho 290 (Idaho 2016).

Opinion

BURDICK, Justice.

Señor Iguana’s (Iguana’s) appeals the Bannock County District Court’s order upholding the Idaho State Police, Bureau of Alcohol Beverage Control’s. (ABC) order that can-celled Iguana’s liquor license. The district court ruled that because Iguana’s failed to pay the renewal fee before the end of the thirty-one day grace period, the license expired by operation of law under Idaho Code section 23-908(1). Iguana’s contends that the license constituted a property right and that because the ABC failed to provide notice and a hearing before cancelling the license Iguana’s was denied its constitutional and statutory rights. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

Iguana’s is a restaurant in Pocatello that has held a liquor license for approximately twelve years. On October 22, 2014, in accordance with Idaho Code section 23—908(1), Iguana’s filed a renewal application with ABC, including a check written for the required renewal amount of $800.00. After receiving the renewal application and the check written for the fee amount, but before the check cleared, ABC sent Iguana’s a 2015 Retail Alcohol'Beverage License. The 2015 License stated that it was valid from November 1, 2014, through October 31, 2015. On October 28, 2014, Iguana’s check for the $800.00 in renewal fees was returned for “Not Sufficient Fuhds” (NSF). ABC learned the renewal fee check had been returned NSF on November 4, 2014. On November 6, 2014, ABC sent a certified letter, return receipt requested, addressed to “Señor Iguana’s, Inc., 961 Hiline Road, Pocatello, ID 83201,” advising Iguana’s that their license renewal fee check was returned NSF. The letter also stated that if Iguana’s failed to submit a money order or cashier’s check in the amount of $800.00 by November 25, 2014, along with an additional separate money order or cashier’s check in the amount, of $20.00 to cover the handling fee, .Iguana’s license ■ renewal application would be can-celled. United States Postal Service (USPS) tracking records indicate that because no authorized recipient for the certified letter was available, the USPS left notice at Iguana’s on November 10, 2014, that the letter was available for pickup at the USPS facility in Pocatello. On November 26, 2014, the letter was still unclaimed at the USPS facility in Pocatello and was returned to ABC on December 3, 2014.

On December 10, 2014, ABC Detective H. Caldera served the Order to Cease and Desist and Notice of Cancelled Retail Alcohol Beverage License on Marcia Corona for Iguana’s, and removed the 2015 license from the premises. That same day, Corona, on behalf of Iguana’s, sent cashier’s checks to ABC for the $800.00 renewal fee and for the $20,00 handling fee. On December 16, 2014, *292 ABC returned the cashier’s checks to Iguana’s, explaining that the license had been cancelled due to non-renewal because the required renewal fee was not timely received.

On December 17, 2014, Iguana’s filed a Petition for Judicial Review and a Motion to Stay in the Sixth Judicial District Court for the State of Idaho, in and for the County of Bannock. Argument was held on January 26, 2016, and on March 13, 2015, the district court entered its Memorandum Decision and Order and Judgment. In its Decision and Order the district court dismissed Iguana’s Petition for Judicial Review and Motion to Stay, ruling that because Iguana’s had failed to pay the required fee within the time frame allowed under Idaho Code section 23-908(1) the license expired by operation of law and notice and opportunity to be heard under Idaho Code section 67-5264(1) was not required. Iguana’s timely appealed.

II. STANDARD OF REVIEW

“Any final decision or order of the district court on judicial review of an agency decision is appealable as a matter of right. We are procedurally bound to affirm or reverse the decisions of the district court. When considering an appeal from a district court acting in an appellate capacity under the Idaho Administrative Procedures Act, this Court reviews the agency record independently of the district court’s decision.” Flying “A” Ranch, Inc. v. Cnty. Comm’rs of Fremont Cnty., 157 Idaho 937, 939-40, 342 P.3d 649 651-52 (2015) (citations omitted) (internal quotation marks omitted).

III. ANALYSIS

Iguana’s contends that ABC violated the governing provisions of the Idaho Code by cancelling Iguana’s liquor license without providing notice or an opportunity to be heard. ABC argues that notice and a hearing was not required because the liquor license expired by operation of law when Iguana’s failed to timely submit payment of the required renewal fee. Iguana’s also contends it has a property right in its liquor license and that ABC’s actions deprived it of property without notice or opportunity to be heard in violation of the United States Constitution.

A. Iguana’s license expired by operation of law.

Iguana’s contends that ABC cancelled its liquor license without following the appropriate procedures defined under the governing provisions of the Idaho Code. Specifically, Iguana’s contends that under Idaho Code section 23-933(1) ABC was required to provide notice and a hearing before cancelling Iguana’s license. ABC maintains that notice and a hearing were not required because Iguana’s failed to submit sufficient funds with its renewal application and therefore the license expired by operation of law.

Idaho Code section 23-908(1) states in pertinent part:

All licenses shall expire at 1:00 o’clock a.m. on the first day of the renewal month.... Renewal applications for liquor by the drink licenses accompanied by the required fee must be filed with the director on or before the first day of the designated renewal month. Any licensee holding a valid license who fails to file an application for renewal of his current license on or before the first day of the designated renewal month shall have a grace period of an additional thirty-one (31) days in which to file an application for renewal of the license. The licensee shall not be permitted to sell and dispense liquor by the drink at retail during the thirty-one (31) day extended time period unless and until the license is renewed.

Accordingly, under the statute, all licenses “expire at 1:00 o’clock a.m. on the first day of the renewal month.” The expiration happens by operation of law. It requires no action by ABC or by the licensee. BV Beverage v. State, 155 Idaho 624, 628, 315 P.3d 812, 816 (2013) (“Liquor licenses therefore expire by operation of law....”). If a licensee fails to file an application for x-enewal they are automatically granted “a grace period of an additional thirty-one (31) days.” I.C. § 23- 908(1). The grace period, however, does not extend the life of the previous year’s license, as a licensee is not permitted to sell and dispense liquor during the thirty-one day *293 period. Id. Rather, the grace period simply provides an extension of time in which the license, although having expired, may still be renewed. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Henson v. Department of Law Enforcement
684 P.2d 996 (Idaho Supreme Court, 1984)
BV Beverage Company v. Idaho Alcohol Beverage Control.
315 P.3d 812 (Idaho Supreme Court, 2013)
Flying "A" Ranch v. County Commissioners of Fremont County
342 P.3d 649 (Idaho Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
371 P.3d 344, 160 Idaho 290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/senor-iguanas-inc-v-idaho-state-police-bureau-of-alcohol-beverage-idaho-2016.