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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Fantasies on 5th Avenue, LLC. v State of Alaska, Alcoholic Beverage Control Board (8/9/2019) sp-7394

Fantasies on 5th Avenue, LLC. v State of Alaska, Alcoholic Beverage Control Board (8/9/2019) sp-7394

          Notice:   This opinion is subject to correction before publication in the P                    ACIFIC  REPORTER.  

          Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,  

                                                                                                                 

          303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email  

                                                                                                                   

          corrections@akcourts.us.  



                     THE  SUPREME  COURT  OF  THE  STATE  OF  ALASKA  



FANTASIES  ON  5TH  AvENUE,  LLC,                                )  

                                                                 )    Supreme  Court  No.  S-16981  

                              Appellant,                         )  

                                                                                                                              

                                                                 )    Superior Court No. 3AN-17-05294 CI  

          v.                                                     )  

                                                                 )                        

                                                                      O P I N I O N  

                                     

STATE OF ALASKA, ALCOHOLIC                                       )  

                                         

BEvERAGE CONTROL BOARD,                                          )                                       

                                                                      No. 7394 - August 9, 2019  

                                                                 )
  

                              Appellee.                          )
  



                                                                                                       

                    Appeal from the Superior Court of the State of Alaska, Third  

                                                                                               

                    Judicial District, Anchorage, William F. Morse, Judge.  



                                                                                                     

                    Appearances:               Brian       Stibitz,      Reeves        Amodio          LLC,  

                                                                                                 

                    Anchorage,  for  Appellant.                    Harriet  D.  Milks,  Assistant  

                                                                                    

                    Attorney General, and Jahna Lindemuth, Attorney General,  

                                       

                    Juneau, for Appellee.  



                                                                                                 

                    Before:  Bolger, Chief Justice, Winfree, Stowers, Maassen,  

                                        

                    and Carney, Justices.  



                                       

                    CARNEY, Justice.  



I.        INTRODUCTION  



                                                                                                                                

                    After an Anchorage strip club applied to have its liquor license renewed the  



                                                                                                                                     

Alcohol  and  Beverage  Control  Board  received  multiple  objections  to  the  renewal.  



                                                                                                                             

Former employees, the Department of Labor, and the Municipality of Anchorage each  



                                                                                                                           

alleged wage law violations, untrustworthy management,  and unsafe policies.   After  



                                                                                                                           

three hearings before the Board and one before an administrative law judge, the Board  


----------------------- Page 2-----------------------

denied renewal because it was not in the public interest.   The club appealed to the  

                                                                                                                                



superior court, which affirmed the Board's decision.                                   The club now appeals to us,  

                                                                                                                                



arguing it was unreasonable to find that renewal was not in the public interest and that  

                                                                                        



the  club  was  denied  due  process  in  the  administrative  proceeding.                                   We  affirm the  

                                                                                                                               



superior court's decision to uphold the Board's determination.  

                                                                          



II.        FACTS AND PROCEEDINGS     



          A.         Facts  



                                                   

                     1.        The Club's Management  



                                                                                                                            

                     Fantasies on 5th Avenue, LLC is a "strip club business" operating under  



                                                                                                                        

various names since 1989. For most of the time between 1989 and 2013 Kathy Hartman  



                                                                                

owned the club.  In July 2013 Hartman transferred 100% ownership of the club to her  



                                                                                                                          

son Travis Gravelle.   This transfer occurred approximately one year after a federal  



                                                                                                                             

judgment was entered against Hartman in a wage and hour lawsuit over the club's claim  



                                                                                                                                 

that its dancers were "independent contractors."  Gravelle remains the sole owner of  



                 

Fantasies.  



                                                                                                                            

                     Gravelle testified that he received no income from his ownership, knew  



                                                                                                                              

nothing about the business's operation, had no control over its finances or any of its bank  



                                                                                                                          

accounts until after the start of the administrative proceedings regarding the license  



                                                                                                                                      

renewal, and was only physically present in the club a few times in the past several years.  



                                                                                                                              

A former employee testified that Gravelle was not allowed to drink at the club or even  



                                

be on the premises.  



                                                                                                                                

                     DespiteGravelle'sownership,evidenceshowed that Fantasies has been run  



                                                                                                                         

by Hartman's boyfriend, Eugene Greaves.  Greaves referred to himself as the general  



                                                                                                                                

manager of Fantasies, but testified that he received no income from the position.  As  



                                                                                                                    

manager, Greaves classified the DJs, janitors, security, and other workers as contractors  



                                                                                                                                  

rather than employees, denying them employee benefits.  He also required dancers to  



                                                                -2-                                                         7394
  


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sign agreements to be tenants of the club and pay hourly rent to use the facilities for                                                                                                                                                                                                



dancing.   



                                             Fantasies paid no wages to its dancers; their income came solely from tips.                                                                                                                                                                            



Moreover, they were required to pay rent to Fantasies at the end of each shift from the                                                                                                                                                                                                



tips they had received.                                                      If dancers did not make enough to pay rent, they were required                                                                                                                          



to pay the remainder from the next shift's tips in addition to paying that next shift's rent.                                                                                                                                                                                                       



                                             Objections to the club's license renewal included allegations about unsafe                                                                                                                                                    



and illegal practices at the club including that Fantasies did not allow workers to make                                                                                                                                                                                       



911 emergency calls from the club.                                                                                    The Board noted two such incidents:                                                                                           no calls were                



made when a dancer fell on her head from six feet above the floor or when an intoxicated                                                                                                                                                                    



customer passed out and suffered seizures.                                                                                                           Another complaint noted that Fantasies'                                                                  



contract with its manager provided a "bonus" when the club made more than $2,000 in                                                                                                                                                                                                       



one night, apparently violating the licensing statute which states that "[a] person other   



than a licensee may not have a direct or indirect financial interest in the business for                                                                                                                                                                                               



                                                                                        1  

which a license is issued."                                                                  



                                             2.                    The Current Liquor License  

                                                                                                                                             



                                             From March 2014 through the denial of its liquor license in July 2016,  

                                                                                                                                                                                                                                                                             



Fantasies held liquor license number 1078.  Gravelle was Fantasies' sole owner when it  

                                                                                                                                                                                                                                                                                             



obtained the license.  Despite Gravelle's ownership, Greaves worked with the Board to  

                                                                                                                                                                                                                                                                                           



obtain  the  license  transfer.                                                                    The  Board  staff  member  who  interacted  with  Greaves  

                                                                                                                                                                                                                                                                    



testified that she had not even heard Gravelle's voice until the Board's February 2016  

                                                                                                                                                                                     



meeting.  Greaves had obtained a power of attorney from Gravelle and signed all the  

                                                                                                                                                                                                                                                                                      



necessary paperwork on Gravelle's behalf.  The Board staff member testified that this  

                                                                                                                                                                                                                                                                                     



                       1                     AS 04.11.450(a).  

                                                         



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"raised red flags" and that she had never seen that done in her five years of processing  



                     

applications.  



                                                                                                                   

                    In  early  November  2015  the  Department  of  Labor  and  Workforce  



                                                                                                                                  

Development's Wage and Hour Administration (DOL) notified Fantasies of its intent to  



                                                                                                                     

conduct a wage audit of the club for the period between December 2013 and November  



                                                                                                                            

2015.  The wage investigation was ongoing when Fantasies applied to renew its liquor  



              

license.  



                                          

          B.        Proceedings  



                                                                                                                              

                    In November 2015Fantasies applied torenewitsliquor license. Boardstaff  



                                                                                                                                      

noticed  an  irregularity  in  the  application  and  contacted  Gravelle  for  clarification.  



                                                                                                                              

Although  Gravelle  had  signed  the  form,  affirming  that  he  had  "examined  this  



                                                                                                                               

application . . . and it [was] true, correct, and complete," he responded that a friend had  



                                   

filled out the form on his behalf while he was out of town.  Board staff considered his  



                                                                                                                                

answer to be "a huge red flag" because the applicable statutes and regulations require the  



                                                                                                                             

license owner to be personally responsible for its use, and because there had been  



                                                                                                                

previous cases with other licensees violating AS 04.11.450, prohibiting non-licensees  



                                                                          

from having a financial interest in the business.  



                                                                                                                             

                    After more thoroughly examining Fantasies' application, Board staff grew  



                                                                                                                                

"very concerned about prohibited financial interest" and decided it was necessary for the  



                                                                                                                                  

application to go before the Board.  The Board scheduled a hearing in February 2016 to  



                                                                                                                       

consider  the  license  renewal  application.                       Prior  to  the  hearing  the  Board  received  



                                                                                                                      

objections  from  DOL,  the  Municipality  of  Anchorage,  and  four  former  Fantasies  



               

workers.  



                                                                                                                      

                    DOLobjected based on its investigation, whichhadrevealedthat Fantasies'  



                                                                                                                                

dancers should have been classified as employees and that "thirty or more workers did  



                                                                                                                 

not receive minimumwage, or any wage, to which they were entitled." The Municipality  



                                                                -4-                                                         7394
  


----------------------- Page 5-----------------------

                                                                                                                             

objected to renewing the license until the wage and hour violations were resolved.  And  



                                                                                                                      

four  former  workers  filed  objections  alleging  that  (1)  non-licensees  had  financial  



                                                                                                                               

interests, (2) wage and hour laws continued to be broken, and (3) renewal was not in the  



                                                                                                             

best interest of the public.   At the hearing the DOL investigator, the Municipality's  



attorney, and Fantasies' attorney testified.  Because DOL's investigation had not been  



                                                                                                                                  

completed, the Board deferred its decision until its next scheduled meeting in April.  



                                                                                                                             

                    About a week after the February Board hearing, Fantasies' lawyer sent  



                                                                                                                  

DOL a letter asking it to stop its investigation "or Fantasies [would] take appropriate  



                                                                                                                               

legal action against [DOL] and [the assigned investigator] personally."  As a result, the  



                                                                                                                         

DOL staff member temporarily halted the investigation until directed to continue despite  



                                             

Fantasies' threatened action.  



                                                                                                                        

                    Before the April meeting DOL asked the Board to "withhold any transfer  



                                                                                                                         

of the liquor license for [Gravelle] . . . pending resolution of unpaid wages."  DOL's  



                                                                                                                           

continuing investigation was still "in the process of auditing records to determine wages  



                                                                                                                              

due to workers" and "estimate[d] a minimum amount of unpaid wages at $500,000 plus  



                                                                                                                                  

liquidated damages, for failure to pay minimum wage."  The Board nevertheless held a  



                                                                                                                              

continued hearing in April.  A former Fantasies dancer testified on behalf of herself and  



                                                                                                                                     

three other former dancers, each of whom had filed written objections with the Board.  



                                                                                                                         

The Board once again deferred its decision until its next scheduled meeting at the request  



                                                                                                                    

of the Municipality, which had not yet held a public hearing on the protest.  



                                                                                                                      

                    In May DOL concluded its investigation into Fantasies' wage and hour  



                                                                                                                                

violations.   It found that:  workers' services were misclassified as contract labor, no  



                                                                                                                                 

records of hours were kept, dancers were not paid at all and instead forced to pay rent as  



                                                                                                                               

tenants, managers failed to maintain daily and weekly records of hours worked, and the  



                                                                                                                           

club either did not maintain or destroyed certain records related to the hiring and firing  



                                                               -5-                                                         7394
  


----------------------- Page 6-----------------------

of workers.                   DOL acknowledged that it had not yet calculated the amount of money                                                                                        



Fantasies owed as a result of the violations.                                                          



                               The Board addressed Fantasies' license renewal for a third and final time                                                                                       



at its July meeting.                          Based on the objections and testimony from all three hearings, the                                                                                  

                                                                                                                                                                                            2   The  

Board determined renewal of Fantasies' license would not be in the public interest.                                                                                                             



Board informed Fantasies of its right to a hearing as provided by AS 44.62.330-630.  

                                                                                                                                                                                                      

                               Fantasies filed a Notice of Defense and Request for a Hearing in August.3  

                                                                                                                                                                                                           



It disputed the Board's findings that renewal was not in the public's best interests, that  

                                                                                                                                                                                                



non-licensees had direct or indirect financial interests in the license, and that it had  

                                                                                                                                                                                                



committed wage and hour violations.  The administrative hearing took place over three  

                                                                                                                                                                                              



days in 2016 before an administrative law judge (ALJ).   A former dancer, the DOL  

                                                                                                                                                                                            



investigator, Greaves, Hartman, Gravelle, and two Board staff members testified.  

                                                                                                                                                                                              



                               Fantasies' lawyer Brian Stibitz cross-examined the former dancer about  

                                                                                                                                                                                            



whether she had been given the choice to work as an employee or an independent  

                                                                                                                                                                            



contractor. After she repeatedly denied having a choice, he directed her to read a section  

                                                                                                                                                                                       



of the "Entertainer Lease" she had signed that stated she would be liable for liquidated  

                                                                                                                                                                                  



damages and attorney's fees if she asserted in any court action that her relationship with  

                                                                                                                                                                                               



Fantasies was anything other than that of a landlord and tenant.   After she read the  

                                                                                                                                                                                     



section he warned her that it applied to the questions he was about to ask.  The Board's  

                                                                                                                                                                                       



lawyer objected to its relevance, leading to an extended colloquy between the court and  

                                                                                                                                                                                                 



counsel. The ALJ addressed the Board's concern that Stibitz was badgering the witness  

                                                                                                                                                                                        



by noting that it, too, was "worr[ied] about the . . . intimidating effect of . . . waving [the  

                                                                                                                                                                                                



                2              See  AS 04.11.330(a)(1) (requiring denial of renewal application if [B]oard                                                                             



finds not in best interests of public).                           



                3              See AS44.62.390(a) (detailing timelimitand substanceofwhat respondent  

                                                                                                                                                                                

may file in notice of defense, including request for hearing).  

                                                                                                                       



                                                                                                 -6-                                                                                         7394
  


----------------------- Page 7-----------------------

document] in [the witness's] face."  The ALJ ordered Stibitz to move on to a different                                                                                                  



topic.   



                                Following three days of hearings, the ALJ affirmed the Board's decision                                                        



denying the renewal.                                 The ALJ issued her decision in November 2016, and the Board                                                                                  



adopted it at its February 2017 meeting.                                                          The determination was based on:                                                    



                                 [DOL]'s finding                           of ongoing wage-hour                                      violations;   public  

                                safety             concerns                  related              to        suppression                      of       911           calls;  

                                Mr.           Gravelle's                    complete                    lack           of        knowledge                       of        or  

                                involvement in the business; Mr. Greaves's role in "running"                                                             

                                the business and the license; an alleged undisclosed financial                                                              

                                interest   by   Mr.   Greaves   and   Ms.   Hartman;   and   alleged  

                                undisclosed                        financial                   interests                 through                  management  

                                agreements.   

                                Fantasies appealed to the superior court.                                                          4    The superior court upheld the  

                                                                                                                                                                                                         



Board's decision in January 2018, finding it had a rational basis for concluding that  

                                                                                                                                                                                                       



renewing Fantasies' license was not in the public interest.  

                                                                                                                                             



                                Fantasies appeals, arguing that the superior court erred by affirming the  

                                                                                                                                                                                                         



Board's  decision  because  the  Board  violated  its  right  to  due  process  and  acted  

                                                                                                                                                                                                  



unreasonably by finding renewal would not be in the public interest.  Because there is  

                                                                                                                                  



substantial evidence to support the Board's denial of the renewal application and there  

                                                                                                                                                                                                     



was no deprivation of Fantasies' right to due process, we affirm the superior court's  

                                                                                                                                                                                               



decision upholding the Board's determination.  

                                                                              



III.            STANDARD OF REvIEW  

                                                              



                                "When  the  superior  court  acts  as  an  intermediate  appellate  court,  we  

                                                                                                                                                                                                         



independently review the merits of the underlying administrative decision. The specific  

                                                                                                                                                                                              



                4               See  AS 44.62.560(a) ("[j]udicial review by the superior court of a final                                                                                           



administrative order may be had by filing a notice                                                                                of appeal"); Alaska R. App. P.                                           

602(a)(2) (same).   



                                                                                                     -7-                                                                                             7394
  


----------------------- Page 8-----------------------

form our independent review takes is de novo review:                                            We adopt the rule of law that is                     

most persuasive in light of precedent, reason, and policy."                                           5  



                        Whenreviewingadministrativedecisionsweusethe"substantial evidence"  

                                                                                                                                       



test for questions of fact and the "reasonable basis" test for questions of law involving  

                                                                                                                                       

agency expertise.6  Review of the Board's factual findings is limited to whether there was  

                                                                                                                                                  

substantial evidence in the record to support those findings.7                                                  We do not "weigh the  

                                                                                                                                                   



quality of the evidence relied upon by the [Board]; at issue for the purposes of our review  

                                                                                                                                             

is simply whether substantial evidence exists."8                                    "Substantial evidence is 'such relevant  

                                                                                                                                          

evidence as a reasonable mind might accept as adequate to support a conclusion.' "9  

                                                                                                                                                     



                        The reasonable basis test applies to the Board's exercise of discretion in  

                                                                                                                                                     



denying Fantasies' license renewal after determining it was not in the public's best  

                                                                                                                                                 

                                                        10  When reviewing whether an administrative decision  

interest under AS 04.11.330(a).                                                                                                           

                                 



was reasonable we ask "whether there was a prejudicial abuse of discretion," which we  

                                                                                                                                                   



will find "if the agency has not proceeded in the manner required by law, the order or  

                                                                                                                                                    



decision is not supported by the findings, or the findings are not supported by the  

                                                                                                                                                  



            5          Heller   v.   State,   Dep't  of   Revenue,   314   P.3d   69,   72-73   (Alaska   2013)  



(footnotes omitted).   



            6          Rollins v. State, Dep't of Pub. Safety, 312 P.3d 1091, 1094 (Alaska 2013).  

                                                                                                                                             



            7          Halter v.State, Dep't of Commerce&Econ. Dev., Med. Bd., 990 P.2d 1035,  

                                                                                                                                               

 1037 (Alaska 1999).  

                          



            8           S. Anchorage Concerned Coal., Inc. v. Municipality of Anchorage Bd. of  

                                                                                             

Adjustment , 172 P.3d 774, 780 (Alaska 2007).  

                                                                       



            9          Id. (quoting Leigh v. Seekins Ford, 136 P.3d 214, 216 (Alaska 2006)).  

                                                                                                                                       



            10          See  Rollins  v.  State,  Dep't  of  Pub.  Safety,  312  P.3d  at  1094  ("[T]he  

                                                                                                                                          

 'reasonable basis' test applies to questions of law involving agency expertise.").  

                                                                                                                        



                                                                         -8-                                                                   7394
  


----------------------- Page 9-----------------------

evidence."11  



                        Weapply our independent judgmenttoquestionsofconstitutionallaw, such                                                       

as due process.            12  



Iv.	        DISCUSSION  



                        Fantasies claims the Board unreasonably denied its liquor license renewal  

                                                                                                                                             



application as not in the public interest under AS 04.11.330(a)(1). Fantasies also claims  

                                                                                                                                                



it  did  not  receive  due  process  because  it  had  no  notice  of  the  basis  for  denial,  no  

                                                                                                                                                      



opportunity  to  be  heard,  that  AS  04.11.510  (the  procedure  for  license  renewal  

                                                                                                                                           



applications) violatesdueprocess onits face, and that the statutes and regulations applied  

                                                                                                                                              



are unconstitutionally vague.  

                                                      



            A.	         The  Board  Did  Not  Abuse  Its  Discretion  By  Denying  Fantasies'  

                                                                                                                                       

                        License Renewal Application.  

                                                          



                        Fantasies  argues  that  the  Board  abused  its  discretion  by  relying  on  

                                                                                                                                                     



"[a]llegations of [l]abor [v]iolations," "Gravelle's [a]lleged [l]ack of [i]nvolvement [i]n  

                                                                                                                                                     



[t]he  [b]usiness,"  an  "[e]xpired  [m]anagement  [a]greement,"  and  "a  policy  of  

                                                                                                                                                      



discouraging 911 calls," to determine that renewing Fantasies' license was not in the  

                                                                                                                                                      



public  interest.                 When  reviewing  administrative  fact  findings  in  quasi-judicial  

                                                                                                                                 



proceedings, we have "consistently adhered to the substantial evidence on the whole  

                                                                                                                                                

record test under AS 44.62.570(c)(2)."13   The Board did not abuse its discretion because  

                                                                                                                                             



            11          See   AS   44.62.570(b)(3)   (specifying   review   by   superior   court,   but   we  



independently review merits of underlying decision).                          



            12          Rollins v. State, Dep't of Revenue, Alcoholic Beverage Control Bd., 991  

                                                                                                                                                    

P.2d 202, 206 (Alaska 1999).  

                                          



            13          State,  Alcoholic  Beverage  Control  Bd.  v.  Decker,  700  P.2d  483,  486  

                                                                                                                                                    

(Alaska   1985),   overruled   on   other   grounds   by   Rollins,   312   P.3d   at   1095.  

                                                                                                                                                             

AS 44.62.570(c)(2) states that abuse of discretion is established if the court determines  

                                                                                                                                        

                                                                                                                                   (continued...)  



                                                                           -9-	                                                                   7394
  


----------------------- Page 10-----------------------

there is substantial evidence supporting each of its findings.                                                    



                              Fantasies   also   argues   that   regardless  of   whether   there   was   substantial  



supporting evidence, these findings are not listed among the factors the Board may                                                                                                    



consider when making a public interest finding under 3 Alaska Administrative Code                                                                                                   



(AAC)   304.180,   and   that   the   Board   therefore   erred   by  considering   them.     But   the  



regulation authorizes the Board to make its decision based on any of the enumerated                                                                                   



factors  as well as                   any other factor deemed relevant to the public interest; it does not limit                                                                      

                                                                      14     The Board did not abuse its discretion by denying  

the Board to the listed factors.                                                                                                                                              



Fantasies' license renewal as not in the public interest.  

                                                                                                        



                              1.             Substantial evidence supports the Board's findings.  

                                                                                                                                                                        



                              The Board decided that renewing Fantasies' license was not in the public  

                                                                                                                                                                                  



interest  based  on  the  following  findings:                                                             (1)  DOL  determined  that  Fantasies  

                                                                                                                                                                          



misclassified dancers and other employees to evade wage and hour laws; (2) managers  

                                                                                                                                                                           



discouraged  dancers  from  calling  911  during  apparent  medical  emergencies;  (3)  

                                                                                                                                                                                        



Gravelle, the LLC's owner, had little, if any, meaningful knowledge about how the club  

                                                                                                                                                                                       



was being operated; (4) Gravelle had no understanding of the statutory requirements for  

                                                                                                                                                                                          

liquor license operation15 or how the license was being operated, and no apparent interest  

                                                                                                                                                                                



in  how it was being  operated;  and  (5)  the club's management agreement gave the  

                                                                                                                                                                                         



manager an illegal direct financial interest in the license.  There is substantial evidence  

                                                                                                                                                                             



supporting each of these findings.  

                                                        



               13             (...continued)  



that  the  findings  are  not  supported  by  "substantial  evidence  in  light  of  the  whole  record."  



               14             3  AAC  304.180(a)(4).  



               15             See,         e.g.         AS         04.11.010-.700                         (licensing),                 04.21.010-.080                         (general  



provisions).  



                                                                                            -10-                                                                                     7394
  


----------------------- Page 11-----------------------

                                                                                              

                              a.	       DOL determined wage and hour violations.  



                                                                                                            

                    The  record  contains  testimony  and  numerous  letters  demonstrating  



                                                                                                                   

Fantasies' failure to comply with wage and hour laws.   The documented violations  



                                                                                                                     

included treating dancers as tenants required to pay rent to the club instead of receiving  



                                                                                                                   

wages, not keeping adequate records of employee pay, having an operating agreement  



                                                                                                                        

that  seemed  to  have  been  "done  after  the  fact"  and  back-dated,  hindering  DOL's  



                                                                                                                

investigation, forcing dancers to "work to pay off a debt for not showing up at work,"  



                                                                                                                 

and having employees work for free for the for-profit business.  The DOL investigator  



                                                                                 

testified that it is a "sign[] of labor trafficking, when somebody has to work to pay off  



                                                                                                                           

a debt and not earn any money." In May 2016 DOL found Fantasies in violation of wage  



                                                                                                                      

and  hour  laws;  its  finding  provides  substantial  evidence  in  support  of  the  Board's  



finding.  



                                                                                                                       

                              b.	       Fantasies discouraged dancers from calling 911 during  

                                                       

                                        medical emergencies.  



                                                                                                                             

                    A former dancer testified that Fantasies' dancers were not allowed to call  



                                                                                                                      

911 for apparent medical emergencies at the club.  Greaves testified that the dancer's  



                                                                                                                         

claim  was  an  "asinine  statement,"  but  offered  no  evidence  to  refute  it.                                       While  



                                                                                                                     

acknowledging that the evidence was somewhat limited, the ALJ cited the dancer's  



                                                                                                                            

credible description of "two instances of being intimidated out of calling 911 when such  



                                                                                                                             

a call would have been appropriate" and noted that Fantasies had not produced any  



                                                                                                                                    

witness with knowledge of the club's day-to-day operations to dispute her testimony.  



                                                                         

The Board's finding is supported by substantial evidence.  



                                                                                                     

                              c.	       The owner lacked knowledge of club operations.  



                                                                                                                               

                    Gravelle is Fantasies' sole owner but plays no role in running the club. He  



                                                                                                                           

testified that he had never run an LLC before, did not manage the business, did not know  



                                                                                                                                

how much money Fantasies made, had no access to the business bank accounts prior to  



                                                              -11-	                                                       7394
  


----------------------- Page 12-----------------------

the   denial   of   the   license   renewal,   and   did   not   know   if   Fantasies   had   any   kind   of  



management agreements with anyone.                                                                                 A former dancer testified that Gravelle had not                                                                                    



even been allowed into the club during open hours more than a couple times over the                                                                                                                                                                   



past few years.                               There is substantial evidence to support the finding that Gravelle lacks                                                                                                                          



knowledge of club operations legally required of a sole owner of an LLC operating a                                                                                                                                                                         



liquor license.   



                                                           d.                  The owner lacked knowledge of legal requirements                                                                                                                 .  



                                       As a liquor license owner, Gravelle is required to understand the laws                                                                                                                                    

                                                      16  But Gravelle was not aware of the club's day-to-day operations and  

controlling its use.                                                                                                                                                                                                                                  



consequently had no means of knowing whether the club was in compliance with these  

                                                                                                                                                                                                                                                 



laws. Gravelle testified to knowing nothing about the business's finances or tax returns,  

                                                                                                                                                                                                                                          



even though Fantasies' income and losses were attributed to Gravelle for tax purposes.  

                                                                                                                                                                                                                                                                   



Much of Fantasies' paperwork was not even signed by Gravelle, but by Greaves through  

                                                                                                                                                                                                                                         



the power of attorney that Gravelle had given him.  Only Greaves had been involved in  

                                                                                                                                                                                                                                                          



applying for Board renewal, further illustrating Gravelle's divorce from operating the  

                                                                                                                                                                                                                                                      



license he owned.  The Board staff member testified she had never met nor even heard  

                                                                                                                                                                                                                                               



Gravelle's voice until the first Board meeting in February 2016. There was no evidence  

                                                                                                                                                                                                                                      



that he had attempted to learn the laws or anything about the operation of the license.  

                                                                                                                                                                                                                                                                   



Thefinding that Gravellehad no understanding of the requirements for operating aliquor  

                                                                                                                                                                                                                                            



license is supported by substantial evidence.  

                                                                                                       



                                                           e.                  A non-owner had a direct financial interest in the license.  

                                                                                                                                                                                                                                         



                                        The ALJ heard evidence that Fantasies had a number of managers over the  

                                                                                                                                                                                                                                                       



preceding ten years.  Some, but not all, of them had written management agreements  

                                                                                                                                                                                                                              



                    16                 AS 04.21.030 ("The licensee has a duty to exercise that degree of care that                                                                                                                                   



a reasonable person would observe to ensure that a business under the person's control                                                                                                                                                     

is lawfully conducted.").        



                                                                                                                          -12-                                                                                                                   7394
  


----------------------- Page 13-----------------------

with Fantasies.                                                       The Board found that the lack of paperwork relating to these managers                                                                                                                                                                                                              



 left the Board                                                    unable to                                       determine   who was responsible for                                                                                                                                       potential violations in                                                                      



 operating Fantasies' license.                                                                                                     



                                                             One of the two management agreements presented to the Board contained                                                                                                                                                                                                                       



 an incentive clause reading:                                                           



                                                            As an added Incentive for the Manager, where the daily gross                                                                                                                                                                                         

                                                            revenue exceeds                                                                  two thousand dollars, the Manager shall                                                                                                                              

                                                            receive seventy per cent of that amount above two thousand                                                                                                                                                                          

                                                             dollars, and the Owner shall receive thirty per cent of that                                                                                                                                                                                              

                                                             amount over two thousand dollars.                                                                                                                           This shall apply for each                                                                  

                                                             and every day over said amount.                                                                                                                     



Alaska Statute 04.11.450(a) mandates that "[a] person other than a licensee may not have                                                                                                                                                                                                                                                                                        



 a direct or indirect financial interest in the business for which                                                                                                                                                                                                                                       a license is issued."                                                                         



Fantasies' agreement to pay its manager 70% of revenue exceeding $2,000 clearly gave                                                                                                                                                                                                                                                                                           



the manager a "direct . . . financial interest in the business for which [the] license is                                                                                                                                                                                                                                                                                                   



 issued."    This management agreement alone provides substantial evidence of a non-                                                                                                                                                                                                                                                                                          



 licensee having a direct financial interest in the license.                                                                                                                                                          



                                                            2.	                            The   evidence   supports  finding  renewal  is  not  in   the public   

                                                                                          interest.   



                                                             "An application requesting renewal of a license shall be denied if . . . the                                                                                                                                                                                                                                              



 [B]oard finds, after review of all relevant information, that renewal of the license would                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                17            We have held that other sections of the  

not be in the best interests of the public."                                                                                                                                                                                                                                                                                                                                         



 alcohol licensing statutes "authorize[] broad discretion in denial [of liquor licenses] for  

                                                                                                                                                                                                                                                                                                                                                                                       

 any  reason  found  incompatible  with  the  public  interest."18                                                                                                                                                                                                                                       And  the  regulation  

                                                                                                                                                                                                                                                                                                                                                   



                               17                           AS 04.11.330(a)(1).   



                               18  

                                                                                                                                                                                                                                                                                                                                                                             

                                                            Decker, 700 P.2d at 487 (second alteration in original), overruled on other  

                                                                                                                                                

grounds by Rollins, 312 P.3d at 1095.  



                                                                                                                                                                                          -13-	                                                                                                                                                                                7394
  


----------------------- Page 14-----------------------

implementing those statutes authorizes the Board, when deciding whether to renew a                                                                                         



liquor license, to exercise its discretion to consider the applicant's past criminal acts                                                          



involving "moral turpitude," violations of statutes or regulations governing alcoholic                                               



beverages, violations of another state's                                     laws governing alcoholic beverages, and felonies                                 

                                                                          19  The regulation also allows the Board to consider  

committed in the preceding ten years.                                                                                                                        



whether  the  applicant  is  "untrustworthy,  unfit  to  conduct  a  licensed  business,  or  a  

                                                                                                                                                                           



potential source of harm to the public;" whether the applicant has permitted "sexual  

                                                                                                                                         



contact" on the licensed premises; and "all other factors the [B]oard in its discretion  

                                                                                                                                                          

determines relevant tothepublicinterest."20  Fantasiesargues that becausethisregulation  

                                                                                                                                                          



does not explicitly list the exact findings the Board made, its findings are not valid bases  

                                                                                                                                                                   



to deny renewal.  

                                    



                           But Fantasies misunderstands the regulation.  The factors the Board may  

consider  "include" those listed  in  the statute,  but the list is not exhaustive.21                                                                               And  

                                                                                                                                                                    



3 AAC 304.180(a)(4) explicitly gives the Board even greater discretion by allowing it  

                                              



to consider "all other factors the [B]oard in its discretion determines relevant to the  

                                                                                                                                                                       



public interest." The findings on which the Board based its denial of Fantasies' renewal  

                                                                                                                                                              



thus relate to factors it was authorized to consider in determining whether the renewal  

          



is in the public's best interest.  

                                                              



             B.            Fantasies Received Due Process.  

                                                                               



                           Fantasies asserts four violations of due process.  It challenges the process  

                                                                                                                                                               



              19           3  AAC  304.180(a)(1).  



             20            3  AAC  304.180(a).  



             21            3  AAC  304.180(a)  ("The  factors  the  board  will,  in  its  discretion,  consider  



in determining  whether  it  is  in  the  public  interest  to   .   .   .  refuse  to  renew  or  transfer a  

license  include  .  .  .  .).  



                                                                                   -14-                                                                            7394
  


----------------------- Page 15-----------------------

provided in the statutory renewal procedure, arguing that the club received no notice of                                                                                                                                             



the basis or opportunity to be heard, and that the specific license renewal process set out                                                                                                                                       

                                                                                                                                           22      In addition Fantasies argues that  

 in AS 04.11.510 does not comply with due process.                                                                                                                                                                              



AS 04.11.330(a)(1) and 3 AAC 304.180 - allowing denial of an application when a  

                                                                                                                                                                                                                                       



 license would not be in the public's best interests - are unconstitutionally vague.  The  

                                                                                                                                                                                                                               



 due process clauses of both the United States and Alaska Constitutions require "that  

                                                                                                                                                                                                                             



 adequate notice and a meaningful opportunity to be heard . . . be afforded to liquor  

                                                                                                                                                                                        

 licensees  before  their  licenses  can  be  suspended."23                                                                                            This  due  process  requirement  

                                                                                                                                                                                                        



 similarly applies when a license's renewal is denied. Fantasies received adequate notice  

                                                                                                                                                                                                                          



 and an opportunity to be heard in the three Board hearings, as well as through written  

                                                                                                                                                                                                                       



notices of hearings, decisions, and opportunities to appeal, and in the subsequent hearing  

                                                                                                                                                                                                                      



before the ALJ.  

                                             



                                     1.               Fantasies received an opportunity to be heard.  

                                                                                                                                                                                              



                                    Due process "merely require[s] the Board to hold a hearing before it [can]  

                                                                                                                                                                                                                          



 suspend a liquor license. . . . [T]he hearing need not be elaborate, and the Board need not  

                                                                                                                                                                                                                                  



make written findings or even file a written opinion explaining its action so long as it  

                                                                                                                                                                                                                                      



                  22                While AS 04.11.510 lays out the general procedure for actions on license                                                                                                            



 applications, suspensions, and revocations, Fantasies received more opportunity to be                                                                                                                                              

heard   than   the   statute   requires,   having   been   provided   three   Board   hearings,  an  

 administrative appeal, and a superior court appeal.                                                                                             Because we find that Fantasies                                 

received due process and thus was not injured by the purportedly deficient statute, we                                                            

 decline to address this purely legal issue.                                                                          See State v. Am. Civil Liberties Union of                                                                     

Alaska , 204 P.3d364,368-69                                                    (Alaska2009) ("[W]hileAlaska'sstanding                                                                             rulesareliberal         

this court should not issue advisory opinions or resolve abstract questions of law."                                                                                                                                       

 (alteration in original) (quoting                                                   Bowers Office Prods., Inc. v. Univ. of Alaska                                                                             , 755 P.2d     

 1095, 1097-98 (Alaska 1988))).                                  



                  23                FrontierSaloon,Inc. v. AlcoholicBeverage Control Bd., 524 P.2d 657, 661  

                                                                                                                                                                                                                                 

 (Alaska 1974); see also Rollins v. State, Dep't of Revenue, Alcoholic Beverage Control  

                                                                                                                                                                                                                     

Bd., 991 P.2d 202, 211 (Alaska 1999).  

                                                                                       



                                                                                                                -15-                                                                                                         7394
  


----------------------- Page 16-----------------------

                                                                                                                         24  

reached its decision after hearing the appellant's presentation."                                                             Fantasies was entitled      



to "an opportunity to be heard in a meaningful, impartial administrative hearing in full                                                                          

                                                                                                         25    Fantasies received three such  

compliance with the Administrative Procedures Act."                                                                                                             



opportunities before the Board and an additional opportunity before an ALJ.  

                                                                                                                                                       



                          Fantasies' attorney attended all three Board hearings and the ALJ hearing  

                                                                                                                                                          



on the club's behalf, vigorously questioned witnesses, testified himself, and answered  

                                                                                                                                              



Board questions during two of the meetings.   Fantasies claims it is entitled to more  

                                                                                                                                                              



process despite the licensing statute's lack of requirement of any hearing:  the Board  

                                                                                                                                                             



"may review an application for the . . . renewal . . . of a license without affording the  

                                                                                                                                                                   



                                                        26  

applicant notice or hearing."                                The fact that Fantasies participated in multiple hearings  

                                                                                                                                                        



more than satisfies due process.  

                                               



                          2.	          Fantasies received notice of the basis for denial of the license  

                                                                                                                                                           

                                       renewal.  

                                                           



                          Fantasies argues that it had no notice of the reasons why its license renewal  

                                                                                                                                                          



was denied either at the Board meetings or at the administrative hearing.  Fantasies also  

                                                                                                                                                                 



argues  that  it  was  denied  notice  before  the  administrative  hearing  that  the  2014  

                                                                                                                                                              



management agreement was a basis for non-renewal.   Alaska Statute   04.11.510(b)  

                                                                                                                                              



allows the Board to review a renewal application "without affording the applicant notice  

                                                                                                                                                             



or hearing."   We have nonetheless held that due process requires both notice and a  

                                                                                                                                                                      

hearing before the Board can take an individual's property interest in a liquor license.27  

                                                                                                                                                       

                                                                                                                                                                          



             24           Rollins v. State, Dep't of Revenue                              , 991 P.2d at 211 (citing                     Frontier Saloon                ,  



524 P.2d at 659).       



             25           Id.  



             26           AS 04.11.510(b) (emphases added).  

                                                                                  



             27           Stevens   v.  State,  Alcoholic  Beverage   Control  Bd.,   257   P.3d   1154,   1160  



                                                                                                                                              (continued...)  



                                                                                -16-	                                                                          7394
  


----------------------- Page 17-----------------------

But "[t]hese procedures 'need not be elaborate,' . . . and due process 'merely require[s]                                             



                                                                                                                                  28  

the [ABC] Board to hold a hearing before it [can] suspend a liquor license."                                                          Fantasies  



                                                                                                                                                  

received three separate hearings before the Board during which it was presented with the  



                                                                                                                                          

objections to its renewal and had an opportunity to refute them.   The same written  



                                                                                                                                        

objections to the renewal were before the Board at each hearing.  Fantasies received  



                                                                                                   

adequate notice through the Board hearings and written objections.  



                                                                                                                                                  

                       Fantasies claims that it was not until the administrative hearing that the  



                                                                                                                                          

Board raised the issue of the management agreement violating the license.  The Board's  



                                                                                                                                                  

written notice of denial following its vote to deny renewal must state "the reason for the  

                                                                    29    The Board's notification letter to Fantasies  

                                                                                                                                       

denial in clear and concise language." 



stated that, "per AS 04.11.330(a)(1) . . . the renewal of the license would not be in the  

                                                                                                                                                  



best interest of the public."  The letter also refers to the three Board hearings, during  

                                                                                                                                            



which former workers and DOL objected due to non-licensees having financial interests  

                                                                                                                                         



in the license.  

                          



                       Before a hearing with an ALJ, the Administrative Procedure Act requires  

                                                                                                                                         



that the hearing file include a statement of issues specifying the statute with which  

                                                                                                                                            



compliance must be shown and the "particular matters that have come to the attention of  

                                                                                                                                                    



            27         (...continued)  



                                                                                                                                                  

(Alaska 2011) (requiring merely that Board hold hearing before suspending license); see  

                                                                                                                                          

also Frontier Saloon, Inc., 524 P.2d at 661 (holding that state and federal due process  

                                                                                                                       

clauses require hearing before license can be suspended by Board).  



            28         Stevens, 257 P.3d at 1160 (third, fourth, and fifth alterations in original)  

                                                                                                                                   

(quoting Rollins v. State, Dep't of Revenue, 991 P.2d at 211).  

                                                                                                  



            29         AS 04.11.510(b)(1).  Written notice was provided to Fantasies on July 21,  

                                                                                                                                                  

2016, the day after its application was denied at the Board meeting.  

                                                                                                                        



                                                                        -17-                                                                  7394
  


----------------------- Page 18-----------------------

                                                                                                                                                                                      30  

the initiating party and that would authorize a denial of the agency action sought."                                                                                                       But  



there is no similar requirement for the Board, only for the party initiating the ALJ                                                                                                      



hearing, and the Act does not include such requirements for an agency's notice of denial.                                                                                                             



We have considered cases where the Board provided more detailed findings of fact                                                                                                           



explaining why it denied a license, specifying the precise reasons it found granting a                                                                                                           

                                                                                                 31     But we have upheld the final decision in  

license would not be in the public interest.                                                                                                                                                    



other contexts so long as "the subject matter remains the same[,] the public has been  

                                                                                                                                                                                         

reasonably notified," and it is "a logical outgrowth of that notice."32  

                                                                                                                                                           



                              Consideration of the management agreement is a logical outgrowth of  

                                                                                                                                                                                               



DOL's initial concerns listed in its January 2016 letter to the Board.  The agreement  

                                                                                                                                                                            



violated AS04.11.450, prohibiting non-licensees fromhaving direct or indirect financial  

                                                                                                                                                                                 



interests in the licensed business.  DOL's initial objection letter asserted that it "ha[d]  

                                                                                                                                                                                     



ascertained credible information that . . . a person(s) other than the licensee has direct and  

                                                                                                                                                                                            



indirect financial interest in the business."  The management agreement is evidence that  

                                                                                                                                                                                            



directly supports DOL's objection.  

                                                         



                              Furthermore,  Fantasies  itself  listed  the  issue  of  a  prohibited  financial  

                                                                                                                                                                               



interest in its request for the administrative hearing.  Having itself noted that this issue  

                                                                                                                                                                                         



               30             AS 44.62.370(a).   



               31             See State, Alcoholic Beverage Control Bd. v. Decker, 700 P.2d 483, 487  

                                                                                                                                                                                

(Alaska  1985)  (affirming  Board's  denial  of  liquor  license  as  not  in  public  interest  

                                                                                                                                                                                   

because it would contribute to teenage drinking at nearby schools and was not necessary  

                                                                                                                                                                              

to serve area's reasonable alcohol requirements), overruled on other grounds by Rollins  

                                                                                                                                                                                    

v. State, Dep't of Pub. Safety, 312 P.3d 1091, 1095 (Alaska 2013).  

                                                                                                                                         



               32              Trs. for Alaska v. State, Dep't of Nat. Res., 795 P.2d 805, 808-09 (Alaska  

                                                                                                                                                                                   

 1990) (finding adequate notice because potential for offshore facilities to support oil  

                                                                                                                                                                                              

development was "logical outgrowth" of notice saying sale could occur without onshore  

                                                                                                                                                                                  

support from specific site).  

                                                  



                                                                                             -18-                                                                                        7394
  


----------------------- Page 19-----------------------

was a basis for its appeal to the ALJ, Fantasies cannot now prevail on a claim that it had                                                                                                                                 



no notice that evidence relating to the issue of a prohibited financial interest would be  



raised at the administrative hearing.                                     



                                    3.               The licensing laws are not unconstitutionally vague.                                                                                                 



                                    Both AS 04.11.330(a)(1) and 3 AAC 304.180(a)(4) authorize the Board to                                                                                                                        



                                                                                                                                                                                                                                  33  

deny a license application if it finds that renewal is not in the public's best interests.                                                                                                                                               



                                                                                                                                                                                                                                         

Fantasies argues that both the statute and the regulation are unconstitutionally vague.  



                                                                                                                                                                                                                                 

"[A] law may be unconstitutionally vague if the scope of exceptions and the scope of  



                                                          34  

                                                                                                                                                                                                                          

                                                                  We consider two elements in evaluating whether a law is void  

defenses are unclear." 



                                                                                                                                                                                                               

for vagueness:  "First . . . whether there is a history or a strong likelihood of arbitrary  



                                                                                                                                                                                                              

enforcement and  uneven  application.                                                                      Second . .  . whether  the regulation  provides  



                                                                                                              35  

                                                                                                                                                                                                              

adequate  notice  of  prohibited  conduct."                                                                             Because  there  is  no  history  of  arbitrary  



                                                                                                                                                                                                                                 

enforcement and Fantasies was given notice, these laws are not vague as applied to  



                                               36  

                             

Fantasies' denial. 



                  33                "An application requesting renewal of a license shall be denied if . . . the                                                                                                              



 [B]oard finds . . . that renewal of the license would not be in the best interests of the                                                                                                                                    

public."  AS 04.11.330(a)(1).   "The factors the [B]oard will, in its discretion, consider  

in determining whether it is in the public interest to . . . refuse to renew . . . a license                                                                                                                 

include . . . all other factors the [B]oard in its discretion determines relevant to the public                                                                                                                       

interest."   3 AAC 304.180(a)(4).                



                  34               Halliburton Energy Servs. v. State, Dep't of Labor, 2 P.3d 41, 50 (Alaska  

                                                                                                                                                                                                                  

2000).  



                  35               Id.  

                                             



                  36               See id. ("When evaluating whether [a regulation] is void for vagueness, we  

                                                                                                                                                                                                                               

must determine whether the regulation is vague as applied to the particular conduct for  

                                                                                                                                                                                                                              

which a citation was issued.").  

                                                         



                                                                                                              -19-                                                                                                       7394
  


----------------------- Page 20-----------------------

                                               a.	            The   Board   did   not   arbitrarily   enforce   the   statute   or  

                                                              regulation against Fantasies.                  



                               Fantasiesclaims                        that theBoardarbitrarilyenforced                                              AS04.11.330(a)(1)and                          



3 AAC 304.180. But this claim is made without analysis or explanation. Consequently,                                                                                    



                                                                                                                                                   37  

any claims of arbitrary enforcement by the Board are waived.                                                                                                                     

                                                                                                                                                          The only articulated  



                                                                                                                                                                                                    

claim of arbitrary enforcement is against DOL, claiming that DOL arbitrarily filed an  



                                                                                                                                                                                 

objection to Fantasies' license with the Board when it had settled with two restaurants  



                                                                                                                                                                                              

for unpaid wages in an unrelated matter. The question of arbitrary enforcement by DOL  



                                                                                                                                                                               

is not properly before us because this is not a review of DOL's actions; DOL investigates  



                                                                                                                                                                                             

claims of wage violations and routinely shares information with other agencies when  



                       

relevant.  



                                                                                                                                                                                      

                                               b.	            The licensing laws provide adequate notice of conduct  

                                                                                                                                                                 

                                                              that is not in the public's best interests.  



                                                                                                                                                                                                    

                               A law which "either forbids or requires the doing of an act in terms so  



                                                                                                                                                 

vague that [people] of common intelligence must necessarily guess at its meaning and  



                                                                                                                                                                                38 

                                                                                                                                                                                      

differ as to its application violates the first essential of due process of law."                                                                                                     As used  



                                                                                                                                                                                                

in the statute and regulation, the term "best interests of the public" is not vague.  The  



                                                                                                                                                                                                   

statute lists a number of factors that can lead to a determination that renewal would not  



                                                                                                                                                                                              

be in the public interest, including criminal acts, violations of regulations or other laws,  



                                                                                                                                                                                                     

untrustworthiness, unfitness to conduct a licensed business, being a potential source of  



                37             See Windel v. Carnahan                                    , 379 P.3d 971, 980 (Alaska 2016) ("[W]here a                                                                 



point is given only a cursory statement in the argument portion of a brief, the point will                                                                                                       

not be considered on appeal.") (quoting                                                            Burts v. Burts                    , 266 P.3d 337, 344 (Alaska                       

2011)).  



                38             Halliburton, 2P.3dat51(quoting LazyMountainLandClub v. Matanuska- 

                                                                                                                                                                               

Susitna Borough Bd. of Adjustment & Appeals, 904 P.2d 373, 382 (Alaska 1995)).  

                                                                                                                                                                                



                                                                                                -20-	                                                                                         7394
  


----------------------- Page 21-----------------------

                                                                                                                                             39  

public harm, and allowing sexual contact on the licensed premises.                                                                                The regulation   



names these factors and allows the Board to consider "all other factors the [B]oard in its                                                                                    

discretion determines relevant to the public interest."40  While this scope is broad, it is  



not unconstitutionally vague:  the regulation lists the very factors on which the Board  

                                                                                                                                                                      



decided to deny Fantasies' renewal application.  Factors such as prohibiting 911 calls  

                                                                                                                                                                         



during  medical  emergencies  can  easily  be  understood  by  those  with  "common  

                                                                                                                                                             

intelligence" as not in the public interest.41  

                                                                     



                            Each of the Board's findings correlates to the licensing laws.  The Board's  

                                                                                                                                                                  



finding that Fantasies violated wage and hour laws was based upon DOL's investigation  

                                                                                                                                                        



which determined that Fantasies violated AS 04.21.030's requirement that a business be  

                                                                                                                                                                              



lawfully conducted.  This in turn satisfies 3 AAC 304.180(a)(1)(B), listing "a violation  

                                                                                                                                                                



of AS 04" as one factor to be considered in determining whether license renewal is in the  

                                                                                                                                                                             



public's best interest.  

                            



                            The Board's finding that Fantasies discouraged dancers from calling 911  

                                                                                                                                                                           



during medical emergencies is not only generally against the public interest, it is also "a  

                                                                                                                                                                              



potential source of harm to the public," a factor listed under 3 AAC 304.180(a)(2).  

                                                                                                                                                                                    



Additionally, the finding that Gravelle lacks knowledge of club operations suggests he  

                                                                                                                                                                              



is "unfit to  conduct a licensed  business," another  factor  enumerated  under  3  AAC  

                                                                                                                                                                       



304.180(a)(2).   The finding that Gravelle does not know the legal requirements for  

                                                                                                                                                                            



operating Fantasies' license similarly indicates that he is "unfit to conduct a licensed  

                                                                                                                                                                



business"  as  well  as  "untrustworthy"  because  he  had  signed  a  document  claiming  

                                                                                                                                                               



familiarity with Title 4 of the Alaska Statutes and its regulations.  Both of these factors  

                                                                                                                                                                     



              39            3 AAC 304.180(a)(1)-(3).     



              40            3 AAC 304.180(a)(4).     



              41           Halliburton, 2 P.3d at 51.                      



                                                                                     -21-                                                                               7394
  


----------------------- Page 22-----------------------

are listed in 3 AAC 304.180(a)(2). And the finding that a management agreement gives                                                                                              



a manager a direct financial interest in the license also demonstrated that Fantasies                                                                                   



                                                         42 

                                                                                                                                                      

violated AS 04.11.450(a).                                     Failure to lawfully conduct business is a factor listed in 3  



              

AAC 304.180(a)(1)(B).  



                                                                                                                                                                                       

                             In addition to the specific listed factors on  which  the Board based its  



                                                                                                                                                                           

decision, it had discretion to consider "all other factors . . . relevant to the public interest"  



                                                                                                                                                                           

under 3 AAC 304.180(a)(4).  Even if the factors on which the Board based its decision  



                                                                                                                                                                          

were not specifically listed for its consideration, it is apparent that people "of common  



                                                                                                                                                                               

intelligence" would consider most, if not all, of these factors relevant to the public  

interest.43  



                                                                                                                                                                              

                             TheBoard'sdenial ofFantasies' licenserenewal as notin thepublicinterest  



                                                                                                                                                                              

is not unconstitutionally vague.  The Board's findings are included in the list of factors  



                                                                                                                                                                                        

the Board may consider.   A regulation need not explicitly list every permutation of  



                                                                                                                                                                                   

proscribed behavior "[s]o long as the mandate affords a reasonable warning . . . in light  



                                                                                               44  

                                                                     

of common understanding and practice[s]." 



v.             CONCLUSION  



                             We  AFFIRM  the  superior  court's  decision  upholding  the  Board's  

                                                                                                                                                                          



determination denying the renewal of Fantasies' liquor license number 1078 and find no  

                                                                                                                                                                                        



due process violation.  

                            



               42            AS 04.11.450(a) ("A person other than a licensee may not have a direct or                                                                                   



indirect financial interest in the business for which a license is issued.").                                                             



               43            See Halliburton, 2 P.3d at 51.  

                                                                                        



               44            Id. (first alteration in original) (quoting  vanco Constr., Inc. v. Donovan,  

                                                                                                                                                                        

723 F.2d 410, 412 (5th Cir. 1984)).  

                                                              



                                                                                          -22-                                                                                    7394
  

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