HLS 14RS-1100 REENGROSSED
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Regular Session, 2014
HOUSE BILL NO. 346
BY REPRESENTATIVE ARNOLD
REVENUE DEPARTMENT: Provides relative to permits issued by the office of alcohol
and tobacco control
AN ACT1
To amend and reenact R.S. 26:76(A)(2), 276(A)(2), and 912(A), relative to permits issued2
by the office of alcohol and tobacco control; to prohibit the transfer, assignment, or3
inheritance of tobacco permits by a limited liability company or other legal entities4
due to change of ownership or termination of business operations; to require that the5
permit be returned or surrendered under certain circumstances; to provide for6
notification requirements; to provide for time delays; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 26:76(A)(2), 276(A)(2), and 912(A) are hereby amended and10
reenacted to read as follows:11
§76. Personal nature of permits; return of permits; necessity of display; penalties12
A. The following shall apply to permits issued under this Chapter:13
* * *14
(2) The permit is not transferrable, assignable, or heritable. The permit must15
be returned to the office of alcohol and tobacco control or surrendered to an agent16
of the commissioner within five days of closure, when the ownership of the business17
is transferred or the business is terminated. When the ownership of the business is18
transferred, the new owner shall be allowed to continue to operate using the19
transferor's permit until a new permit is issued or denied, if the new owner notifies20
the office of alcohol and tobacco control of the transfer within five days of the21
transfer and applies for a new alcoholic beverage permit within fifteen days of the22 HLS 14RS-1100 REENGROSSED
HB NO. 346
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transfer of ownership. If the permit holder is a corporation or limited liability1
company, the permit holder shall notify the office of alcohol and tobacco control of2
any changes in the officers, directors, managers, shareholders, members, or persons3
previously qualified to conduct or manage the business within fifteen days of the4
date of such changes. The notification shall include the suitability documents and5
information for each new individual required to possess the qualifications of the6
applicants. However, in the event of the dissolution of a partnership by death, the7
surviving partner or partners may operate under the partnership permit. The office8
of alcohol and tobacco control shall be notified of any changes to the licensed9
business premises which increase or decrease the previously approved licensed10
business premises prior to any such changes.11
* * *12
§276. Personal nature of permits; return of permits; necessity of display; penalties13
A. The following shall apply to permits issued under this Chapter:14
* * *15
(2) The permit is not transferrable, assignable, or heritable. The permit must16
be returned to the office of alcohol and tobacco control or surrendered to an agent17
of the commissioner within five days of closure, when the ownership of the business18
is transferred or the business is terminated. When the ownership of the business is19
transferred, the new owner shall be allowed to continue to operate using the20
transferor's permit until a new permit is issued or denied, if the new owner notifies21
the office of alcohol and tobacco control of the transfer within five days of the22
transfer and applies for a new alcoholic beverage permit within fifteen days of the23
transfer of ownership. If the permit holder is a corporation or limited liability24
company, the permit holder shall notify the office of alcohol and tobacco control of25
any changes in the officers, directors, managers, shareholders, members, or persons26
previously qualified to conduct or manage the business within fifteen days of the27
date of such changes. The notification shall include the suitability documents and28
information for each new individual required to possess the qualifications of the29 HLS 14RS-1100 REENGROSSED
HB NO. 346
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applicants. However, in the event of the dissolution of a partnership by death, the1
surviving partner or partners may operate under the partnership permit. The office2
of alcohol and tobacco control shall be notified of any changes to the licensed3
business premises which increase or decrease the previously approved licensed4
business premises prior to any such changes.5
* * *6
§912. Permits; necessity of display; penalties7
A. A permit issued under this Chapter is a personal privilege and cannot be8
transferred, If over fifty-one percent of a corporation is sold or transferred during9
the period for which a permit was issued, a new permit must be applied for, and the10
new owner must comply with the provisions set forth in this Chapter. If the holder11
of the permit is an association, partnership, or limited partnership, change of the12
controlling interest shall constitute a change of ownership under this Chapter.,13
assigned, or inherited. The permit must be returned to the office of alcohol and14
tobacco control or surrendered to an agent of the commissioner within five days of15
permanently ceasing business operations or when there is a change in ownership. If16
the permit holder is a corporation or limited liability company, the permit holder17
shall notify the office of alcohol and tobacco control of any changes in the officers,18
directors, managers, shareholders, or members within fifteen days of the date of such19
changes. The notification shall include the suitability documents and information20
for each new individual required to possesses the qualifications of the applicants.21
If the business is physically relocated during such the permit period, the registration22
certificate holder or permittee permit holder must notify the commissioner in writing23
so that proper change may be noted thereon prior to relocating.24
* * *25
Section 2. This Act shall become effective upon signature by the governor or, if not26
signed by the governor, upon expiration of the time for bills to become law without signature27
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If28 HLS 14RS-1100 REENGROSSED
HB NO. 346
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Arnold HB No. 346
Abstract: Prohibits the transfer of tobacco permits for certain legal entities and provides
for notification requirements.
Present law prohibits permits issued for low and high alcoholic content beverages from
being assignable or heritable and requires the permit to be returned or surrendered to the
office of alcohol and tobacco control (ATC) within five days of closure or if ownership of
the business is transferred or terminated, and unless the dissolution of a partnership is by
death, the partners are authorized to operate under the partnership permit.
Proposed law retains present law and adds authorization for the new owner to continue to
operate using the permit holder's permit until a new permit is issued or denied, if the new
owner notifies the ATC within five days of the transfer and applies for a new permit within
15 days of the transfer of ownership.
Proposed law requires that the permit holder notify the ATC within 15 days of any changes
in the officers, directors, managers, shareholders, members, or previously qualified persons
and that the notification include the suitability documents and information for each new
individual.
Proposed law requires the permit holder to notify the ATC of any changes that increase or
decrease the previously approved licensed business premises.
Present law prohibits tobacco permits from being transferred if over 51% of a corporation
is sold or transferred during the period for which a permit was issued, and requires an
application for a new permit.
Present law provides that a change of the controlling interest shall constitute a change of
ownership if the holder of the permit is an association, partnership, or limited partnership,
and further requires the registration certificate holder or permittee to notify the
commissioner in writing if the business is physically relocated.
Proposed law prohibits a tobacco permit from being transferred, assigned, or inherited and
requires the permit to be returned or surrendered to the ATC within five days of permanently
ceasing business operations or change in ownership.
Proposed law requires a permit holder who is a corporation or limited liability company to
provide notification within 15 days of changes in its officers, directors, managers,
shareholders, or members and requires the notification to include suitability documents and
information of each new individual required to meet the qualifications of the applicant. HLS 14RS-1100 REENGROSSED
HB NO. 346
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Proposed law requires the permit holder to notify the commissioner in writing prior to
relocating if the business is physically relocated during the permit period.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 26:76(A)(2), 276(A)(2), and 912(A))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Judiciary to the original bill.
1. Added a provision to prohibit the transfer of a permit for low and high alcoholic
content beverages.
2. Added requirements for certain permit holders of low and high alcoholic content
beverages to notify the ATC within 15 days of any changes in officers, directors,
managers, shareholders, members, or previously qualified persons and to include
the suitability documents and information for each individual.
3. Added requirements that the permit holder notify the ATC of any changes that
increase or decrease the previously approved licensed business premises.
4. Changed requirements relative to the transfer of tobacco permits and requires the
return or surrender of a permit within 5 days of permanently ceasing business
operations or a change in ownership and provides for certain notification
requirements if the business is a corporation or limited liability company.
House Floor Amendments to the engrossed bill.
1. Added authorization for the new owner of a transferred business to operate under
the permit holder's permit until a new permit is issued or denied, if the new
owner notifies the ATC within five days of the transfer and applies for a new
permit within 15 days of the transfer of ownership.