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. 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.