A person residing in the county in which a beer and wine permit is requested to be granted, or a person residing within five miles of the location for which a beer and wine permit is requested, may protest the issuance or renewal of the permit if he files a written protest setting forth:

1. (1) the name, address, and telephone number of the person filing the protest;
2. (2) the name of the applicant for the permit and the address of the premises sought to be licensed, or the name and address of the permit holder if the application is for renewal;
3. (3) the specific reasons why the application should be denied; and

4. (4) whether or not he wishes to attend a contested case hearing before the Administrative Law Judge Division.

   Upon receipt of a timely filed protest, the department shall determine the protestant's intent to attend a contested hearing before the Administrative Law Judge Division. If the protestant intends to attend a contested hearing, the department may not issue the permanent permit but shall forward the file to the Administrative Law Judge Division.

   If the protestant, during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed invalid, and the department shall continue to process the application and shall issue the permit if all other statutory requirements are met.

   A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a fine or penalty to include court costs.