Opinion ID: 1173831
Heading Depth: 1
Heading Rank: 1

Heading: procedural defects in the board's denial of a license to otani

Text: We hold that the Board's denial of the license Otani applied for was procedurally invalid in three respects. Most importantly, Otani was never afforded the hearing to which he has a right under the Hawaii Revised Statutes, Chapter 444. HRS § 444-18 provides that in every case where it is proposed to refuse to grant a license to an applicant, the Board shall give notice and hearing; and that whenever possible, the hearing shall be held on the island where the applicant resides. Two other defects are to be found in the Board's action. First, HRS § 444-16 requires the Board to act on an application for a license within 75 days of receipt of the application. Here, Otani's application was not acted upon for more than eight months. Second, HRS §§ 444-4(2) and 91-4 together provide that the Board's rules and regulations shall have the force and effect of law 10 days after being filed with the lieutenant governor, if they have been approved by the governor and the director of regulatory agencies. Here, the classification scheme was applied to Otani in January, 1968, but it was not approved and signed until almost twelve months later. Moreover, not all of the rules that were applied to him were ever approved at all. None of the rules had any force or effect when they were applied to Otani, and therefore that application of the rules was invalid.