STATE OF IOWA BEFORE THE DEPARTMENT OF COMMERCE ALCOHOLIC BEVERAGES DIVISION

Transcription

1 STATE OF IOWA BEFORE THE DEPARTMENT OF COMMERCE ALCOHOLIC BEVERAGES DIVISION IN RE: DOCKET NO. A DIA NO. 09DOCBL072 The Mint LC d/b/a The Mint 133 S. Main Street Protivin, Iowa PROPOSED DECISION Liquor License No. LC On March 4, 2009, the Alcoholic Beverages Division (division) sent a letter denying the renewal application filed by The Mint, LC d/b/a The Mint (licensee) for Liquor License No. LC The reason for the denial was that the licensee s liability company had been administratively deleted by the Iowa Secretary of State. The licensee filed a timely appeal and was granted timely filed status. A Notice of Hearing was issued, which added delinquent sales taxes as an additional legal basis for the license denial. By agreement of the parties, the hearing was held by telephone hearing before Administrative Law Judge Margaret LaMarche on June 22, 2009 at 3:30 p.m. Assistant Attorney General John Lundquist represented the division. The licensee was represented by Lisa McDanel, who is the licensee s bookkeeper. THE RECORD The record includes the Acknowledgement of Appeal; Notice of Hearing; testimony of the witnesses; and the following exhibits: Division Exhibit 1: Division Exhibit 2: Division Exhibit 3: Renewal Application Notice of License Denial with proof of service Summary Re: The Mint, LC, Iowa Secretary of State Online Corporation Database Division Exhibit 4: Certification of Dissolution, 8/11/08 Division Exhibit 5: Notice of Appeal

2 Page 2 FINDINGS OF FACT 1. On or about February 10, 2009, The Mint, LC d/b/a The Mint (licensee) filed a renewal application for Liquor License No. LC for the premises located at 133 S. Main Street in Protivin, Iowa. (Division Exhibit 1; Testimony of Karen Freund) 2. Upon receipt of the renewal application, division staff consulted the Secretary of State s website to determine the company s current status. The licensee s liability company was inactive and had been administratively dissolved on August 11, 2008 for failure to deliver its 2008 Biennial Report as required by Iowa Code sections 490A.1320(1) and 490A On March 4, 2009, the division sent the licensee a letter denying its renewal application on the grounds that the liability company had been administratively deleted by the Iowa Secretary of State. (Division Exhibits 2, 4; Testimony of Karen Freund) 3. As of June 22, 2009, the Secretary of State had not reinstated the licensee s liability company. Although the licensee had submitted paperwork to the Secretary of State, the company could not be reinstated until the licensee paid its delinquent sales taxes. Lisa McDanel admitted that the licensee owed delinquent taxes. She reported that the licensee has applied for a loan to pay the delinquent taxes so that the liability company can be reinstated. (Testimony of Karen Freund; Lisa McDanel; Division Exhibit 3) CONCLUSIONS OF LAW Iowa Code section (1)(a)(2009) provides that a liquor control license may only be issued to a person who is of good moral character as defined by the statute. Iowa Code section 123.3(26) provides the following relevant definitions for good moral character : 26. "Person of good moral character" means any person who meets all of the following requirements: a. The person has such financial standing and good reputation as will satisfy the administrator that the person will comply with this chapter and all laws, ordinances, and regulations applicable to the person's operations under this chapter......

3 Page 3 c. Notwithstanding paragraph "e", the applicant is a citizen of the United States and a resident of this state, or licensed to do business in this state in the case of a corporation... The division s rules provide that the administrator may consider the licensee s record of prompt payment of local or state taxes due when it evaluates financial standing. 185 IAC 4.2(4) a. The licensee s failure to pay delinquent sales taxes provides a legal basis to deny the renewal application (1)(a); 123.3(26)(a)(2009); 185 IAC 4.2(4) a. In addition, the licensee s liability company was administratively dissolved by the Iowa Secretary of State on August 11, 2008, pursuant to Iowa Code section 490A.1320(1) and 490A.1321, for failure to file its 2008 biennial report. Unless the licensee s liability company is licensed to do business in this state through the Iowa Secretary of State, it cannot meet the good moral character requirements for holding a liquor license. Iowa Code sections (1)(a); 123.3(26)(c)(2009). The preponderance of the evidence established that The Mint, LC d/b/a The Mint does not currently meet the statutory "good moral character" requirements to hold a liquor license in Iowa. Therefore, the renewal application must be denied. There has been no indication from the parties that the licensee s delinquent sales taxes have been paid or that the licensee s liability company was reinstated following hearing. DECISION AND ORDER It is therefore ORDERED that the renewal application for Liquor License No. LC , filed by The Mint, LC d/b/a The Mint, is hereby DENIED. 185 IAC 10.27(1) and (2) provide that any adversely affected party may appeal a proposed decision to the Administrator of the Alcoholic Beverages Division within thirty (30) days after issuance of the proposed decision. In addition, the Administrator may initiate review of a proposed decision on the Administrator's own motion at any time within thirty (30) days following the issuance of a proposed decision. Requests for review shall be sent to the Administrator of the Alcoholic Beverages Division, 1918 S.E. Hulsizer, Ankeny, IA Unless otherwise ordered, each appealing party may file exceptions and briefs within thirty (30) days of the notice of appeal or order for review. Within thirty (30) days thereafter, any

4 Page 4 party may file a responsive brief. The Administrator may shorten or extend the briefing period as appropriate. The Administrator may resolve the appeal on the briefs or provide an opportunity for oral argument. 185 IAC 10.27(6). The administrator may affirm, reverse or modify the proposed decision. A party who is adversely affected by the proposed decision shall not be deemed to have exhausted administrative remedies unless the adversely affected party files a request for review of the proposed decision within the time provided and the Administrator has reviewed the proposed decision and has affirmed, reversed, or modified the proposed decision. Dated this 17 th day of July, Margaret LaMarche Administrative Law Judge Department of Inspections and Appeals Division of Administrative Hearings Wallace State Office Building-Third Floor Des Moines, Iowa CC: See attached mailing list

5 Page 5 Pat Neal IA Department of Revenue & Finance Hoover Bldg 1305 E. Walnut St. Des Moines, Iowa Karen Freund Licensing Manager Iowa Alcoholic Beverages Division 1918 SE Hulsizer Ankeny, Iowa Tom Ward The Mint, LC 133 S Main St PO Box 311 Protivin, Iowa 52163