Opinion ID: 2808357
Heading Depth: 3
Heading Rank: 3

Heading: License Renewal Regulations

Text: 6 Case: 14-12260 Date Filed: 06/15/2015 Page: 7 of 40 The AWA prohibits exhibitors 5 from exhibiting any animals unless they “have obtained a license from the Secretary and such license shall not have been suspended or revoked.” 7 U.S.C. § 2134. “[N]o such license shall be issued” until the exhibitor “shall have demonstrated that his facilities comply with the standards promulgated by the Secretary.” Id. § 2133. In addition to this statutory command, the AWA vests USDA with the authority to “promulgate such rules, regulations, and orders as he may deem necessary in order effectuate the purposes” of the statute. 7 U.S.C. § 2151. Pursuant to this section, USDA has adopted comprehensive renewal regulations that combine purely administrative requirements, random inspections, and discretionary enforcement proceedings. On or before the expiration date of his or her one-year license, an exhibitor must submit a completed application form to the appropriate USDA regional office fulfilling three, purely administrative criteria. See 9 C.F.R. § 2.1(d). First, the exhibitor certifies by signing the application form that, to the best of her knowledge or belief, she is compliant and will continue to comply with all AWA animal wildlife standards. Id. § 2.2(b). Second, the exhibitor pays an annual fee calculated according to USDA’s fee schedule that varies according to the number of animals owned, held, or exhibited. Id. § 2.6. Third, the exhibitor submits an 5 The AWA defines an “exhibitor” as “any person . . . exhibiting any animals, which were purchased in commerce or the intended distribution of which affects commerce, or will affect commerce, to the public for compensation.” 7 U.S.C. § 2132(h). 7 Case: 14-12260 Date Filed: 06/15/2015 Page: 8 of 40 annual report detailing the number of animals owned, held, or exhibited. Id. § 2.7(d). So long as an exhibitor meets these three criteria, even if her facility fails to comply with animal wildlife standards on the license expiration date, USDA must grant her a renewal. See id. § 2.2(b) (stating “[USDA] will issue a license” after applicant fulfills administrative requirements). Otherwise, the license automatically terminates due to expiration. Id. § 2.5(b). Unlike the purely administrative procedure for renewing a license, USDA’s mechanism for suspending or terminating licenses due to animal welfare violations depends on random inspections and enforcement proceedings. Each applicant for renewal is obligated to make her “animals, premises, facilities, vehicles, equipment, other premises, and records available for inspection . . . to ascertain the applicant’s compliance with the standards and regulations.” Id. § 2.3(a). USDA’s administrative renewal scheme facilitates these inspections by requiring a licensee to “promptly notify [USDA] by certified mail of any change in the name, address, management, or substantial control or ownership of his business or operation, or of any additional sites, within 10 days of any change.” Id. § 2.8. In addition to random inspections, any interested person may submit information to USDA regarding alleged violations by a licensee. 7 C.F.R. § 1.133(a)(1); see also 9 C.F.R. § 4.1 (applying USDA’s Uniform Rules of Practice for adjudicatory proceedings to section 19 of the AWA (codified at 7 U.S.C. § 2149)). In response, 8 Case: 14-12260 Date Filed: 06/15/2015 Page: 9 of 40 USDA can choose to investigate the submission if, in the opinion of the agency, such an investigation is “justified by the facts.” 7 C.F.R. § 1.133(a)(3).6 Under the AWA’s supplemental rules of procedure, USDA may suspend a license temporarily for 21 days upon written notification before an opportunity for notice and hearing if USDA has reason to believe a licensee has violated or is violating the AWA. 9 C.F.R. § 4.10. If, on the basis of inspections or the receipt of third-party information, USDA chooses to suspend a license for more than 21 days, impose a civil penalty, or terminate a license, USDA must afford notice and a hearing in an enforcement proceeding. Id. § 2.12 (stating “license may be terminated during the license renewal process . . . after a hearing in accordance with the applicable rules of practice”). An interested person who submits a thirdparty complaint to the agency “shall not be a party to any proceeding which may be instituted as a result thereof.” 7 C.F.R. § 1.133(a)(4). USDA initiates the enforcement proceeding by filing a complaint with the USDA Hearing Clerk, id. § 1.133(b)(1), who assigns the case to an ALJ that conducts the proceeding according to formal rules of evidence and procedure, see id. § 1.133–51. Unless a licensee subject to an ALJ’s adverse decision appeals to a Judicial Officer appointed by the Secretary of Agriculture, that decision becomes a final order. Id. § 1.145(i). Finally, the licensee may appeal an order that is final 6 It is during this time period, when USDA discovers evidence of AWA violations, that USDA undertakes the cooperative enforcement measures described infra at Section III(B)(2)(b). 9 Case: 14-12260 Date Filed: 06/15/2015 Page: 10 of 40 for the purposes of judicial review to the United States Court of Appeals of the circuit in which she resides or has her principal office, or in the District of Columbia Circuit. 7 U.S.C. § 2149(c); 28 U.S.C. § 2343.