Opinion ID: 2346536
Heading Depth: 2
Heading Rank: 1

Heading: Denial of License Application

Text: [¶ 6] One of DHS's requirements for AFCH license applicants is that they have a satisfactory record of honest and lawful conduct in business and personal affairs (hereinafter, the satisfactory record rule). 10-144 CODE ME. R. ch. 121, § 4.A.6 (1996). The Reardons contend that the satisfactory record rule is unconstitutionally vague and, as applied, effectively bars them from ever getting a license. Their challenge is centered on the rule's failure to specify the length of time a prior adverse administrative finding by DHS may be considered when DHS determines, for purposes of a subsequent license application, whether an applicant has demonstrated a satisfactory record. [¶ 7] When the language of a regulation sets forth a requirement `in terms so vague that people of common intelligence must guess at its meaning,' the regulation is impermissibly vague. Town of Baldwin v. Carter, 2002 ME 52, ¶ 10, 794 A.2d 62, 67 (quoting City of Portland v. Jacobsky, 496 A.2d 646, 649 (Me.1985)). However, a rule that uses general language and does not objectively quantify, for example, the number of instances of proscribed conduct, is not unconstitutionally vague provided that it informs the public of the proscribed conduct. Carter, 2002 ME 52, ¶ 7 n. 2, 794 A.2d at 66. In Maine Real Estate Commission v. Kelby, we found that the statute proscribing `bad faith,' `incompetency,' `untrustworthiness,' and `dishonest, improper or fraudulent dealings' by real estate brokers and salespeople was sufficiently definite to apprise those in the profession of the line between permissible and forbidden conduct. 360 A.2d 528, 532 (Me.1976) (quoting 32 M.R.S.A. § 4056(1)(N) (repealed 1987)). [¶ 8] Contrary to the Reardons' contention, the absence in the satisfactory record rule of a specified amount of time an applicant must be free of violations does not render the rule unduly vague. People of common intelligence could agree that the Reardons' serious violation of the licensing statute in 2000 demonstrates that they lacked a satisfactory record of honest and lawful conduct in business and personal affairs as of the date of their application in April 2001. The satisfactory record rule is sufficiently definite to apprise those people who seek and hold AFCH licenses that licensure is dependent upon the conduct of their business affairs in an honest and lawful manner. [2] [¶ 9] Title 22, section 7802(4)(B) (1992), [3] permits an unsuccessful license applicant to submit subsequent applications after correcting the deficiencies identified by DHS. The amount of time an applicant must be free of violations before he or she can transform an unsatisfactory record into a satisfactory record is necessarily case specific, because the amount of time must be assessed in conjunction with a variety of factors such as the nature and severity of a prior violation, the steps taken by the applicant to discontinue the violation and mitigate its effects, and the applicant's post-violation performance record. Because a violation considered in a prior application does not permanently bar an applicant from receiving an AFCH license in the future, it is reasonable for DHS to consider that violation along with all other relevant information when acting upon a subsequent license application. As reflected in the record of this proceeding, the age of the violation was one of several factors that influenced the weight the violation was afforded in the licensing decision. This approach is rooted in common sense and, contrary to the Reardons' claim, does not serve to bar them from ever obtaining a license. [¶ 10] The Reardons also claim that the satisfactory record rule is so vague that it constitutes an improper delegation of legislative authority. However, an improper delegation of legislative authority issue can only arise when the Legislature delegates authority to an administrative agency. See, e.g., Ogunquit Sewer Dist. v. Town of Ogunquit, 1997 ME 33, ¶¶ 3, 14, 691 A.2d 654, 656, 658 (involving a statute authorizing the board of selectmen to make a written determination as to whether the proposed sewer extension was consistent with the town's comprehensive plan); Northeast Occupational Exch., Inc. v. State, 540 A.2d 1115, 1116 (Me.1988) (questioning whether the Community Mental Health Services Act could properly authorize the Commissioner to license facilities and issue regulations). Here, the satisfactory record rule was created by DHS, not by the Legislature, and thus is not a delegation of legislative authority. The Reardons have no reason to question whether DHS has the authority to promulgate rules to govern the administration of its programs because that authority is well established. See 22 M.R.S.A. § 7853(2) (Supp.2002) (authorizing DHS to adopt rules governing the administration, quality of care and treatment, if applicable, level and qualifications of staff, ... administration of medication, ... health and safety of residents and staff, community relations and licensing procedures). [¶ 11] Based upon the totality of the information before it, including the circumstances associated with the denial of the Reardon's first two applications, DHS did not err by denying the Reardons a license.