Trappers Lake Lodge & Resort, LLC v. Colorado Department of Revenue

179 P.3d 198, 2007 Colo. App. LEXIS 1297
CourtColorado Court of Appeals
DecidedJuly 12, 2007
DocketNo. 06CA0491
StatusPublished
Cited by9 cases

This text of 179 P.3d 198 (Trappers Lake Lodge & Resort, LLC v. Colorado Department of Revenue) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trappers Lake Lodge & Resort, LLC v. Colorado Department of Revenue, 179 P.3d 198, 2007 Colo. App. LEXIS 1297 (Colo. Ct. App. 2007).

Opinion

Opinion by

Judge DAILEY.

Trappers Lake Lodge & Resort, LLC, appeals the revocation of its two liquor licenses. We affirm.

In connection with the operation of a recreational resort in the White River National Forest, Trappers had a hotel and restaurant liquor license and a 3.2% beer license. On their face, both licenses were in effect from March 2004 to March 2005.

In December 2004, the State Licensing Authority (SLA) of the Colorado Department of Revenue issued Trappers an order to show cause why its licenses should not be suspended or revoked for certain violations of the liquor code, rules, or regulations. More specifically, the SLA alleged that Trappers had failed to maintain possession of the licensed premises, employed persons of unsatisfactory character, failed to give notice of a change in management, failed to display a warning that it is illegal to sell alcohol to underaged persons, and purchased more than $500 worth of alcohol from a retail liquor store in a calendar year.

The Department and Trappers entered into settlement negotiations. When it became clear that a settlement would not be reached, the Department, in May 2005, scheduled a hearing on its show cause order for June 13, 2005.

Trappers objected, arguing that the Department no longer had jurisdiction to revoke licenses which, by their very terms, had expired in March. A hearing officer (HO) rejected Trappers’ jurisdictional argument, and, based upon his determination that Trappers had committed the alleged violations, recommended revocation of Trappers’ licenses. The Department adopted, in toto, the HO’s conclusions and recommendations.

Trappers sought judicial review of the Department’s order pursuant to the State Administrative Procedure Act (APA), § 24^4-101, et seq., C.R.S.2006. In that proceeding, the trial court upheld the Department’s revocation order, finding that the Department retained jurisdiction to complete the disciplinary action that it had begun in December 2004, when Trappers’ licenses were still in effect.

I. The Department’s Jurisdiction to Revoke the Licenses

Trappers contends that the Department lacked jurisdiction in June 2005 to revoke its licenses. More specifically, Trappers asserts that, under the Colorado Liquor Code, § 12-47-101, et seq., C.R.S.2006 (the Code), (1) the Department is only authorized to revoke “licenses” and (2) licenses remain in effect for only one year, unless earlier suspended or revoked by the Department. Consequently, Trappers argues, if, as here, a license is not suspended or revoked within its one-year lifespan, it no longer exists and, thus, is not subject to suspension or revocation thereafter. For the following reasons, we are not persuaded.

The Department’s jurisdiction to revoke Trappers’ licenses turns upon an interpretation of the Code, which presents a question of law subject to de novo review by this court. See Ferrel v. Colo. Dep’t of Corr., 179 P.3d 178, 182, 2007 WL 1576046 (Colo.App. No. 05CA2303, June 1, 2007)(“Statutory interpretation is a question of law that we review de novo.”); see also Hawes v. Colo. Div. of Ins., 65 P.3d 1008, 1015 (Colo.2003) (appellate court reviews de novo an agency’s determination of its own jurisdiction).

When construing a statute, a court must ascertain and give effect to the intent of the General Assembly and refrain from rendering a judgment that is inconsistent with that intent. To determine legislative intent, we look first to the words of the statute. If those words are clear and unambiguous in import, we apply the statute as written. State v. Nieto, 993 P.2d 493, 500 (Colo.2000). If, however, the words are ambiguous or unclear, such that “the words chosen do not inexorably lead to a single result,” we may consider, among other things, the legislative [200]*200declaration, the object sought to be attained, and the consequences of a particular construction. State v. Nieto, supra, 993 P.2d at 501. Ultimately, a statute must be construed to further the legislative intent represented by the entire statutory scheme. State v. Nieto, supra, 993 P.2d at 501.

Here, Trappers correctly points out that the Code authorizes the Department to “suspend or revoke [liquor] licenses,” § 12-47-202(l)(a), C.R.S.2006, and that, under the Code, liquor licenses are “valid for a period of one year from the date of their issuance.” Section 12-47-301(1), C.R.S.2006. However, the Code provides that the Department may suspend or revoke those licenses “upon a violation of [title 12, articles 46-48] or any rule or regulation adopted pursuant to such articles,” § 12-47-202(l)(a), and the Code is silent on when suspension or revocation proceedings must be completed (or, for that matter, initiated). See § 12-47-301(1) (a license is “valid for a period of one year from the date of [its] issuance unless revoked or suspended pursuant [as pertinent here] to section 12-47-601”); § 12-47-601(1), C.R.S. 2006 (providing only that, prior to revoking or suspending a license, Department must (1) investigate the matter and (2) hold a public hearing at which the licensee is afforded the opportunity to be heard).

Because the wording of the Code does not provide an answer to this issue, we turn to other indicia of legislative intent, as well as to pertinent ease law, to discern legislative intent.

According to its legislative declaration, the purpose of the Code is to protect the economic and social welfare, as well as the health, peace, and morals of the people of the state. Section 12-47-102(1), C.R.S.2006; see New Safari Lounge, Inc. v. City of Colorado Springs, 193 Colo. 428, 434, 567 P.2d 372, 376 (1977) (“the primary purpose of Colorado’s liquor laws is to authorize the sale and consumption of intoxicating beverages while simultaneously protecting the public’s health, safety and welfare”). In this regard, a division of this court has recognized that “[l]i-quor licensing authorities need maximum leeway in carrying out their policing function.” Costiphx Enters., Inc. v. City of Lakewood, 728 P.2d 358, 360-61 (Colo.App.1986).

We need not decide here whether, consistent with such leeway, the Department is empowered to institute revocation proceedings after a license has expired. See, e.g., Alpern v. License Appeal Comm’n, 38 Ill.App.3d 565, 348 N.E.2d 271, 272 (1976) (recognizing such authority); In re Seila’s Liquor License, 124 Pa.Super. 519, 190 A. 203, 205 (1937)(same). It is enough that we hold that revocation proceedings commenced before the eviration of a license can be completed even after the expiration date of the license.

Divisions of this court have reached similar results in other contexts. See People v. Galvin, 961 P.2d 1137, 1138 (Colo.App.1997) (running of probationary term is tolled by the initiation of revocation proceedings); People v. Peretsky,

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TRAPPERS LAKE LODGE & RES. v. Dept. of Rev.
179 P.3d 198 (Colorado Court of Appeals, 2007)

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Bluebook (online)
179 P.3d 198, 2007 Colo. App. LEXIS 1297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trappers-lake-lodge-resort-llc-v-colorado-department-of-revenue-coloctapp-2007.