Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 113
Premises for which no license shall be granted
Alcoholic Beverage Control (ABC) CHAPTER 3-B, ARTICLE 8
§ 113. Premises for which no license shall be granted. 1. Where a
license for any premises licensed has been revoked, the liquor authority
in its discretion may refuse to issue a license under this chapter, for
a period of two years after such revocation, for such licensed premises
or for any part of the building containing such licensed premises and
connected therewith.

2. In determining whether to issue such a license for such two year
period, in addition to any other factors deemed relevant, the liquor
authority shall, in the case of a license revoked due to the illegal
sale of alcohol to a minor, determine whether the proposed subsequent
licensee has obtained such premises through an arm's length transaction,
and, if such transaction is not found to be an arm's length transaction,
the liquor authority shall deny the issuance of such license.

3. For purposes of this section, "arm's length transaction" shall mean
a sale of a fee of all undivided interests in real property, lease,
management agreement, or other agreement giving the applicant control
over the food and beverage at the premises, or any part thereof, in the
open market, between an informed and willing buyer and seller where
neither is under any compulsion to participate in the transaction,
unaffected by any unusual conditions indicating a reasonable possibility
that the sale was made for the purpose of permitting the original
licensee to avoid the effect of the revocation. The following sales
shall be presumed not to be arm's length transactions unless adequate
documentation is provided demonstrating that the sale, lease, management
agreement, or other agreement giving the applicant control over the food
and beverage at the premises, was not conducted, in whole or in part,
for the purpose of permitting the original licensee to avoid the effect
of the revocation:

(a) a sale between relatives;

(b) a sale between related companies or partners in a business; or

(c) a sale, lease, management agreement, or other agreement giving the
applicant control over the food and beverage at the premises, affected
by other facts or circumstances that would indicate that the sale,
lease, management agreement, or other agreement giving the applicant
control over the food and beverage at the premises, is entered into for
the primary purpose of permitting the original licensee to avoid the
effect of the revocation.