ENROLLED Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 12 Regular Session, 2014 HOUSE BILL NO. 346 BY REPRESENTATIVE ARNOLD 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 ENROLLEDHB NO. 346 Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. transfer and applies for a new alcoholic beverage permit within fifteen days of the1 transfer of ownership. If the permit holder is a corporation or limited liability2 company, the permit holder shall notify the office of alcohol and tobacco control of3 any changes in the officers, directors, managers, shareholders, members, or persons4 previously qualified to conduct or manage the business within fifteen days of the5 date of such changes. The notification shall include the suitability documents and6 information for each new individual required to possess the qualifications of the7 applicants. However, in the event of the dissolution of a partnership by death, the8 surviving partner or partners may operate under the partnership permit. The office9 of alcohol and tobacco control shall be notified of any changes to the licensed10 business premises which increase or decrease the previously approved licensed11 business premises prior to any such changes.12 * * *13 §276. Personal nature of permits; return of permits; necessity of display; penalties14 A. The following shall apply to permits issued under this Chapter:15 * * *16 (2) The permit is not transferrable, assignable, or heritable. The permit must17 be returned to the office of alcohol and tobacco control or surrendered to an agent18 of the commissioner within five days of closure, when the ownership of the business19 is transferred or the business is terminated. When the ownership of the business is20 transferred, the new owner shall be allowed to continue to operate using the21 transferor's permit until a new permit is issued or denied, if the new owner notifies22 the office of alcohol and tobacco control of the transfer within five days of the23 transfer and applies for a new alcoholic beverage permit within fifteen days of the24 transfer of ownership. If the permit holder is a corporation or limited liability25 company, the permit holder shall notify the office of alcohol and tobacco control of26 any changes in the officers, directors, managers, shareholders, members, or persons27 previously qualified to conduct or manage the business within fifteen days of the28 date of such changes. The notification shall include the suitability documents and29 information for each new individual required to possess the qualifications of the30 ENROLLEDHB NO. 346 Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 ENROLLEDHB NO. 346 Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. vetoed by the governor and subsequently approved by the legislature, this Act shall become1 effective on the day following such approval.2 SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: