Relates to definition of "for cause" in instances of revocation of licenses

Title of bill

An act to amend the alcoholic beverage control law, in relation to the definition of "for cause" revocation of licenses

Purpose or general idea of the bill

To enable the State Liquor Authority (SLA) to revoke, cancel, or suspend the license of a business that sells alcoholic beverages, for on-premises consumption, when: a) such licensee when applying for a license deliberately mislead the authority on the true nature of the business to be conducted, or b) the business activities of such business substantially expands over time in a manner that clearly increases the incidence of local crime or disorderly conduct.

Summary of specific provisions

Section 1. Alcoholic Beverage Control Law (ABC) section 118(3) is amended to expand the definition of the term "for cause" to include two new reasons to revoke, cancel, or suspend such businesses' on-premises alcoholic beverage license.

Under this bill, there are two ways in which the "for cause" criteria can be triggered to start proceedings to revoke, cancel, suspend, or impose a civil fine on an establishment.

1) The license applicant, when initially applying for such liquor license, deliberately mislead the SLA as to the true nature and character of the business to be conducted on such premises.

2) the licensee after a license has been issued, "substantially alters the nature and character" of the premises in a manner that significantly enlarges the scope of business activities at such premises and such activities significantly increase the amount of criminal activity or disorderly conduct in the surrounding neighborhood.

Should either 1 or 2 above occur or come into being after the initial license has been issued, then the SLA shall contemplate conducting a hearing if such conditions or expansion in the scope of the business, cause a significant increase in noise, disturbances, disorder, or the commission of criminal activity that endangers those who live in the area of such premises or who patronize businesses within such area.

Justification

The State Liquor Authority needs additional authority to clearly address the growing problem of misconduct at the premises of a licensee that sells alcohol for on-premises consumption and fosters civil disturbance and criminal activity by those attending those premises.

This legislation will give the SLA the needed authority to quickly deal with such misconduct and deliberately supplying misleading information provided by the license holder. Under current law, an applicant can apply for and obtain a liquor license that the applicant maintains will be operated as a local small tavern, however, upon being licensed, greatly expands the scope of the business by utilizing the back yard as a new bar area or highlights new evening entertainment attractions that purposefully draws in clientele that that will disturb the local neighborhood and substantially increase crime in such area. This bill will give the Authority the tools that it needs to reexamine an already issued liquor license to ensure that it is operating within the confines of what the business represented itself to be.

Fiscal implications for state and local government

None

Effective date

This act shall take effect 180 days after it shall have become law.