Ledbetter v. Oklahoma Alcoholic Beverage Laws Enforcement CommissionLedbetter v. Oklahoma Alcoholic Beverage Laws Enforcement Commission
In 1985, the Fortieth Legislature of Oklahoma promulgated sweeping amendments and additions to the Oklahoma Alcoholic Beverage Control Act, (hereafter Act)
The Act promulgated by the Legislature is a comprehensive one, regulating virtually every aspect of the alcoholic beverage industry in the State, including the manufacture, sale, importation into or exportation from Oklahoma of such beverages.
See
To assist it in carrying out its mission to enforce the provisions of the Act, ABLE Commission was required by the Legislature to appoint a Director, the principal administrative officer of the agency.
The instant case comes before this Court to review the January 5, 1987 Order of the District Court of Carter County that declared invalid and ordered vacated a March 20, 1986 Order of the Director (erroneously denominated Order of the Commission) and which overruled Appellant’s Motion to Dismiss Appellee’s Petition for Appeal to the District Court. As noted, the Petition for Appeal was from the March 20, 1986 decision of the Director. Said decision had endorsed the recommendation of a hearing officer that Appellee be fined five hundred dollars ($500.00) for a violation of
Civil fine authority was first added to the Act by the additions and amendments of 1985.
As mentioned,
What these sections of the Act and
This Court has held that exhaustion of administrative remedies is a jurisdictional prerequisite for resort to the courts.
13
In the instant case, as seen above, Appellee had a remedy granted by statute that has never been utilized by him to challenge the action of the Director in endorsing the fine as recommended by the hearing officer. The rationale behind exhaustion of administrative remedies is based on various policy determinations. Exhaustion will normally allow the agency to exercise discretion or apply its expertise in the area or under the statutory scheme it is charged with administering, it is generally more efficient to allow the administrative process to move forward without interruption, the agency may discover and correct its own errors in the administrative process and, in fact, the complaining party may actually succeed in vindicating his rights in the process and the courts may never have to intervene. Finally, frequent and deliberate flouting of the administrative process may weaken the effectiveness of an agency by encouraging people to ignore its procedures.
14
Therefore, only in exceptional circumstances will exhaustion of administrative remedies be excused. One such circumstance is where the situation involves the presence of constitutional questions, coupled with a sufficient showing of the inadequacy of the administrative process or remedy
and
of threatened or impending irreparable injury flowing from the delay that would be caused by following the administrative process.
15
Further, where the intent of the statutory scheme
Another exception to the exhaustion requirement may be available where a challenge is made to the power of the agency to act at all under the statutory scheme it is charged with administering.
17
This doctrine, however, would only appear applicable in those situations where under no circumstances would the administrative agency have the power or authority to act as it did.
18
Here there was no question that ABLE Commission had statutory authority granted by the Legislature to impose civil penalties for violation of the Act. This authority was specifically granted by
A related reason why we believe the District Court had no jurisdiction of this matter is that the March 20, 1986 decision of the Director was not a final order subject to appeal under
The statutory scheme itself does not expressly grant to the Director himself the authority to enter a final order imposing a civil fine, particularly without ABLE Commission review. In fact, the Act gives to the Director the power to
recommend
to the ABLE Commission the levying of fines and the ABLE Commission the power to levy same.
Compare
The only remaining argument that could be made is that ABLE Commission somehow lawfully delegated the authority to the Director to enter a final order imposing a civil fine. We believe it has not so delegated, even assuming it has the power to do so.
25
At the time of the March 4, 1986 evidentiary hearing and the rendering of the decision of the Director the Rules and Regulations of the Alcoholic
Notes
. OKLA. CONST, art. 28, §§ 3 and 4 were amended by State Question 591, adopted at an election held November 4, 1986.
. Other types of businesses are allowed to sell liquor by the drink under certain circumstances.
See e.g.
.Appellee had originally been charged with violating
. In addition to overruling Appellant’s Motion to Dismiss for failure to exhaust his administrative remedies before ABLE Commission, the District Court declared invalid and vacated the March 20, 1986 decision of the Director based on the court’s view that Appellant exceeded its authority when it proceeded against Appellee under
Finally, Appellant questions the District Court’s ruling that because Appellee had previously been tried and acquitted at a non-jury trial in Carter County in criminal Case No. CRM-85-553 for the same act charged by ABLE Commission. that it would be a violation of the Double Jeopardy Clauses of the United States and Oklahoma Constitutions (U.S. CONST., Amend. 5 and OKLA. CONST., art. 2, § 21) to allow Appellant to proceed against him in a civil administrative proceeding under a criminal provision of the Act. Appellant contends Appellee waived this issue by not properly raising it at the administrative proceeding and that double jeopardy was not implicated because of the civil nature of the administrative process, involving a
. Appellee further references in the text of his August 13, 1987 Brief of Appellee at pg. 5, Rule 15 of the Guidelines for Hearings Before the Alcoholic Beverage Laws Enforcement Commission which he cites in support of his view that the Director had the authority to sign an Order
for
the Commission and, apparently, that such an “Order" would become final for purposes of appeal pursuant to
Further, there is simply no evidence or record that the ABLE Commission itself has taken any action in relation to the March 19, 1986 Report of the Hearing Officer or anything to refute the argument made by Appellant at the January 5, 1987 oral argument in the District Court that the March 20, 1986 "Order of the Commission” executed by the Director was erroneously so labeled and that it was not an order of the Commission. Transcript of Hearing, pg. 4.
. The procedures in effect at the time of the March 4, 1986 hearing in regard to the relative duties of the Director and Commission and as to what authority was delegated by the Commission to the Director are contained at Articles 6, 7 and 9 of the Rules and Regulations of the Alcoholic Beverage Laws Enforcement Commission adopted May 3, 1985. 2 Okla.Reg. 02111-02115 and 02119-02137 (1985). Although there was an amendment to Article 9, § 6 of the Rules and Regulations on February 21, 1986 said amendment is not relevant here. Further, certain amendments to Article 9 in March of 1987 would be inapplicable here, having been made after the relevant time frame.
As pertinent here Article 6, § 1 of the ABLE Commission's Rules and Regulations delegates to the Director the functions contained in
Any licensee aggrieved by the action of the Director, may in cases where a license or renewal therof is denied, or a suspension or revocation thereof is ordered, within fifteen (15) days after the receipt of Notice [thereof, file with the Board a written request for an appeal from the Order] of the Director and a hearing before the Commission, and shall be accorded such hearing in compliance with the provisions of the Act. The Director shall cause a transcript of the testimony heard by him to be presented to the Commission on or before the date of the hearing by the Commission.
Mr. Weaver further explained in his affidavit that for twenty-five (25) years the practice of the agency was to allow an appeal
from adverse action
of the Director and that the inadvertent omission was not meant to change this practice.
See also
Article 6, § 1 (last line of section appears to allow right to be heard by Commission from any adverse decision of Director in regard to licensee when request made within fifteen days of receipt of decision). This does appear to have been the long-standing practice of the agency.
See Robbins v. Oklahoma Alcoholic Beverage Control Board,
.
Hess v. Excise Board of McCurtain County,
.
Dana P. v. State,
.
Seventeen Hundred Peoria, Inc. v. City of Tulsa,
.
LeFlore v. Reflections of Tulsa, Inc.,
. The failure of a licensee to pay a fine imposed by ABLE Commission has been made by the Legislature a ground for mandatory revocation of a license.
. In fact, the penalty schedule contained in ABLE Commission Rules and Regulations, 2 Okla.Reg. 02121-02134 (1985), which is Article 9, § 6, as amended, contains the possibility of both fine and suspension for various violations of the Act or rules of the Commission.
.
Martin v. Harrah Independent School District,
.
Id.
at 1374, relying on
McKart v. United States,
.
Martin v. Harrah Independent School District,
. Id.
.
Marley v. Cannon,
. Id. at 406-407.
.
See Jones v. Federal Deposit Ins. Corp.,
.It should be noted that generally when a court in an appeal brought pursuant to
.
Cave Springs Public School District I-30 v. Blair,
. The record presented to the District Court simply does not warrant any finding or conclusion that ABLE Commission did review the matter or that said Commission authorized the Director to sign an order on ABLE Commission's behalf, after it made a review. In fact, under
.
See City of Bristow v. Groom,
. We recognize that a state officer generally has by implication those powers that are necessary for the due and efficient exercise of powers expressly granted by the Legislature.
Marley v. Cannon,
.Generally, an administrative body cannot delegate to another, in the absence of statute or organic provision, powers or functions which are discretionary or quasi-judicial in nature or which require the exercise of judgment.
Anderson v. Grand River Dam Authority,
. See fn. 6, supra.
. As noted in fn. 6, supra, Article 6, § 2 of the Rules and Regulations purports to delegate to the Director the ability to revoke or suspend a license. The ability to impose a civil fine is not mentioned. However, if the delegation contained in Article 6, § 2 is meant to give the Director final authority in the matter as to revocation or suspension without some type of review being conducted by the ABLE Commission and determination by them, even in the absence of a request to be heard by an aggrieved party, such delegation may be invalid. See fn. 25, supra, We need not definitively decide this issue because for whatever reason the rule delegating authority in effect at the time was silent as to the imposition of civil fines.