Monday, October 13, 2008
The General Assembly is not in session.
Tracking Virginia’s General Assembly
since 2007.
HB1562: Alcoholic beverage control; allows transfer of ABC license for purchaser of a licensed premises.
Be it enacted by the General Assembly of Virginia:
1. That § 4.1-212 of the Code of Virginia is amended and reenacted as follows:
§ 4.1-212. Permits required in certain instances.
A. The Board may grant the following permits which shall authorize:
1. Wine and beer salesmen representing any out-of-state wholesaler engaged in the sale of wine and beer, or either, to sell or solicit the sale of wine or beer, or both in the Commonwealth.
2. Any person having any interest in the manufacture, distribution or sale of spirits or other alcoholic beverages to solicit any mixed beverage licensee, his agent, employee or any person connected with the licensee in any capacity in his licensed business to sell or offer for sale such spirits or alcoholic beverages.
3. Any person to keep upon his premises alcoholic beverages which he is not authorized by any license to sell and which shall be used for culinary purposes only.
4. Any person to transport lawfully purchased alcoholic beverages within, into or through the Commonwealth, except that no permit shall be required for any person shipping or transporting into the Commonwealth a reasonable quantity of alcoholic beverages when such person is relocating his place of residence to the Commonwealth in accordance with § 4.1-310.
5. Any person to keep, store or possess any still or distilling apparatus.
6. The release of alcoholic beverages not under United States custom bonds or internal revenue bonds stored in Board approved warehouses for delivery to the Board or to persons entitled to receive them within or outside of the Commonwealth.
7. The release of alcoholic beverages from United States customs bonded warehouses for delivery to the Board or to licensees and other persons enumerated in subsection B of § 4.1-131.
8. The release of alcoholic beverages from United States internal revenue bonded warehouses for delivery in accordance with subsection C of § 4.1-132.
9. A secured party or any trustee, curator, committee, conservator, receiver or other fiduciary appointed or qualified in any court proceeding, to continue to operate under the licenses previously issued to any deceased or other person licensed to sell alcoholic beverages for such period as the Board deems appropriate.
10. The one-time sale of lawfully acquired alcoholic beverages belonging to any person, or which may be a part of such person's estate, including a judicial sale, estate sale, sale to enforce a judgment lien or liquidation sale to satisfy indebtedness secured by a security interest in alcoholic beverages, by a sheriff, personal representative, receiver or other officer acting under authority of a court having jurisdiction in the Commonwealth, or by any secured party as defined in subdivision (a) (72) of § 8.9A-102 of the Virginia Uniform Commercial Code. Such sales shall be made only to persons who are licensed or hold a permit to sell alcoholic beverages in the Commonwealth or to persons outside the Commonwealth for resale outside the Commonwealth and upon such conditions or restrictions as the Board may prescribe.
11. Any person who purchases at a foreclosure, secured
creditor's or judicial auction sale the premises or property of a person
licensed by the Board and who has become lawfully entitled to the possession of
the licensed premises to continue to operate the establishment to the same
extent as a person holding such licenses for a period not to exceed 60 days or
for such longer period as determined by the Board. Such permit shall be
temporary and shall (i) confer the privileges of any licenses held by
the previous owner to the extent determined by the Board and (ii) authorize
the permittee to continue to operate the establishment to the same extent as a
person holding such licenses for a period not to exceed 60 days or for such
longer period as determined by the Board. Such temporary permit may be
issued in advance, conditioned on the above requirements.
12. The sale of wine and beer in kegs by any person licensed to sell wine or beer, or both, at retail for off-premises consumption.
13. The storage of lawfully acquired alcoholic beverages not under customs bond or internal revenue bond in warehouses located in the Commonwealth.
14. The storage of wine by a licensed winery or farm winery under internal revenue bond in warehouses located in the Commonwealth.
15. Any person to conduct tastings in accordance with § 4.1-201.1, provided that such person has filed an application for a permit in which the applicant represents (i) that he or she is under contract to conduct such tastings on behalf of the alcoholic beverage manufacturer or wholesaler named in the application; (ii) that such contract grants to the applicant the authority to act as the authorized representative of such manufacturer or wholesaler; and (iii) that such contract contains an acknowledgment that the manufacturer or wholesaler named in the application may be held liable for any violation of § 4.1-201.1 by its authorized representative. A permit issued pursuant to this subdivision shall be valid for at least one year, unless sooner suspended or revoked by the Board in accordance with § 4.1-229.
16. Any person who, through contract, lease, concession, license, management or similar agreement (hereinafter referred to as the "contract"), becomes lawfully entitled to the use and control of the premises of a person licensed by the Board to continue to operate the establishment to the same extent as a person holding such licenses, provided such person has made application to the Board for a license at the same premises. The permit shall (i) confer the privileges of any licenses held by the previous owner to the extent determined by the Board and (ii) be valid for a period of 120 days or for such longer period as may be necessary as determined by the Board pending the completion of the processing of the permittee's license application. No permit shall be issued without the written consent of the previous licensee. No permit shall be issued under the provisions of this subdivision if the previous licensee owes any state or local taxes, or has any pending charges for violation of this title or any Board regulation, unless the permittee agrees to assume the liability of the previous licensee for the taxes or any penalty for the pending charges. An application for a permit may be filed prior to the effective date of the contract, in which case the permit when issued shall become effective on the effective date of the contract. Upon the effective date of the permit, (a) the permittee shall be responsible for compliance with the provisions of this title and any Board regulation and (b) the previous licensee shall not be held liable for any violation of this title or any Board regulation committed by, or any errors or omissions of, the permittee.
B. Nothing in subdivision 9, 10, or 11 shall authorize any brewery, winery or affiliate or a subsidiary thereof which has supplied financing to a wholesale licensee to manage and operate the wholesale licensee in the event of a default, except to the extent authorized by subdivision B 3 a of § 4.1-216.
Be it enacted by the General Assembly of Virginia:
1. That § 4.1-203 of the Code of Virginia is amended and reenacted as follows:
§ 4.1-203. Separate license for each place of business; transfer or amendment; posting; expiration; carriers.
A. Each license granted by the Board shall designate the place where the business of the licensee will be carried on. Except as otherwise provided in §§ 4.1-207 and 4.1-208, a separate license shall be required for each separate place of business.
B. No license shall be transferable from one person to another, or from one location to another, except as provided in subsection E. The Board may permit a licensee to amend the classification of an existing license without complying with the posting and publishing procedures required by § 4.1-230 if the effect of the amendment is to reduce materially the privileges of an existing license. However, if (i) the Board determines that the amendment is a device to evade the provisions of this chapter, (ii) a majority of the corporate stock of a retail licensee is sold to a new entity, or (iii) there is a change of business at the premises of a retail licensee, the Board may, within thirty days of receipt of written notice by the licensee of a change in ownership or a change of business, require the licensee to comply with any or all of the requirements of § 4.1-230. If the Board fails to exercise its authority within the thirty-day period, the licensee shall not be required to reapply for a license. The licensee shall submit such written notice to the Secretary of the Board.
C. Each license shall be posted in a location conspicuous to the public at the place where the licensee carries on the business for which the license is granted.
D. The privileges conferred by any license granted by the Board, except for temporary licenses, banquet and mixed beverage special events licenses, shall continue until the last day of the twelfth month next ensuing or the last day of the designated month of expiration, except the license may be sooner terminated for any cause for which the Board would be entitled to refuse to grant a license, by operation of law, voluntary surrender or order of the Board.
The Board may permit a licensee who fails to pay by midnight of the fifteenth day of the twelfth month or of the designated month of expiration, whichever is applicable, the required license tax covering the continuation or reissuance of his license, to pay the tax in lieu of posting and publishing notice and reapplying, provided payment of the tax is made within thirty days following that date and is accompanied by a civil penalty of twenty-five dollars or ten percent of such tax, whichever is greater.
E. In lieu of issuing a permit under the provisions of § 4.1-212, the Board may transfer a license upon application of a bona fide purchaser of a licensed premises who made the purchase at any of the following:
1. A trustee's sale under foreclosure as provided in Article 2 (§ 55-58 et seq.) of Chapter 4 of Title 55;
2. A trustee's or receiver's sale in bankruptcy proceedings;
3. Any other sale conducted upon the order of a court of competent jurisdiction;
4. Upon the death of an individual who is a licensee or who has a stock ownership or partnership interest of 50 percent or more in the licensed premises;
5. A tax sale; or
6. A sheriff's sale.
Every application for a license transfer shall be on a form provided by the Board and shall be accompanied by a nonrefundable application fee as set by the Board regulations. Bona fide purchasers whose license transfer application is granted by the Board shall, at the time for renewal of the license, meet all of the requirements in accordance with § 4.1-230. Notwithstanding the provisions of this section, no license transfer shall be granted to an applicant against whom there is pending in the courts or before the Board a charge for violation of the provisions of this title or Board regulations. Additionally, the Board may refuse to grant a license transfer for such causes as are specified in § 4.1-222.
F. Subsections A and C shall not apply to common carriers of passengers by train, boat, or airplane.
Additional Data
Explanation
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