Opinion ID: 6491543
Heading Depth: 2
Heading Rank: 4

Heading: Revieiv of DPP Refusals to Issue a Declaratory Ruling

Text: Under HRS 91-14(g)(6), an administrative agency’s discretionary determinations will not be disturbed unless “[arbitrary, or capricious, or characterized by abuse of discretion or clearly unwarranted exercise of discretion.” However, only discretionary decisions of agencies receive this deferential level of review. In this regard, this court has stated: The standard of review for administrative agencies ... consists of two parts: first, an analysis of whether the legislature empowered the agency with discretion to make a particular determination; and second, if the agency’s determination was within its realm of discretion, whether the agency abused that discretion (or whether the agency’s action was otherwise “arbitrary, or capricious, or characterized by ... [a] clearly unwairanted exercise of discretion,” HRS § 91-14(g)(6)). If an agency determination is not within its realm of discretion (as defined by the legislature), then the agency’s determination is not entitled to the deferential “abuse of discretion” standard of review. If, however, the agency acts within its realm of discretion, then its determination will not be overturned unless the agency has abused its discretion. Paul’s Elec. Serv., Inc. v. Befitel, 104 Hawai'i 412, 417, 91 P.3d 494, 499 (2004) (internal citation omitted). The abuse of discretion standard should apply to the DPP Director’s decision regarding whether to refuse to issue a declaratory ruling, because the legislature empowered the DPP with discretion over its declaratory ruling procedures. HRS § 91-8, which governs the declaratory ruling procedure, establishes that “[e]ach agency shall adopt rules prescribing the form of the petitions and the procedure for their submission, consideration, and prompt disposition.” (Emphasis added.) A refusal to issue a declaratory ruling is a manner of disposing of the petition. See Lingle v. Hawai'i Government Employees Association, AFSCME, Local 152, 107 Hawai'i 178, 190, 111 P.3d 587, 599 (2005) (Acoba, J., concurring) (“Orders refusing to issue a declaratory ruling would fall within the definition of actions ‘disposing’ of petitions.”). By empowei'ing agencies generally with the authority to adopt rules regarding the manner in which declaratory ruling petitions shall be considered and disposed of, the legislature has granted agencies discretion with regard to the consideration of de-elaratory rulings. The boundaries of that discretion, which normally are defined by the legislature, may in such cases be established with reference to the agency rales themselves, or by reading the statute and the agency rales in tandem. See Paul’s Elec., 104 Hawai'i at 417-18, 91 P.3d at 499-500 (“The boundaries of an agency’s discretion are established by the legislature ... and these statutory boundaries will likely assist a reviewing court in defining ‘discretion’ when the court examines an agency’s action for an abuse of discretion.” (Citation omitted.)). 9 In this case, DPP Rule § 3-5 governs DPP refusals to issue a declaratory ruling, making that decision discretionary with the DPP Director, within the parameters of five enumerated reasons. The rule provides: § 3-5 Refusal to issue declaratory ruling. The director may refuse to issue a declaratory ruling where: (1) The question is speculative or hypothetical and does not involve existing facts, or facts which can reasonably be expected to arise within the next year. (2) The petitioner’s interest is not of the type which would give him/her standing to maintain an action if he/she were to seek judicial relief. (3) The issuance of the declaratory ruling may adversely affect the interests of the city in any litigation which is pending or may reasonably be expected to arise. (4) The matter is not within the jurisdiction of the department. (5) For other good cause. DPP Rule § 3-5 (1999), available at http:// honoluludpp.org/permitinfo/partl.pdf. Therefore, DPP decisions to refuse to issue a declaratory ruling will be reviewed under the “abuse of discretion” standard, with reference to the language of HRS § 91-8 and the bases for refusal enumerated in the Department rule.