CHAPTER 521

An Act to amend and reenact Section 4-87 of the Code of Virginia, relating
to the suspension and revocation of licenses by the Virginia Alcoholic
Beverage Control Board, so as to provide certain standards or grounds
upon which the Board may suspend or revoke such licenses under cer-
tain circumstances and so as to provide for an appeal in certain cases.

[S 286]
Approved March 30, 1956

Be it enacted by the General Assembly of Virginia:

1. That Section 4-37 of the Code of Virginia be amended and reenacted
as follows:

§ 4-37. (a) The Board may suspend or revoke any licenses issued by
it if it * has reasonable cause to believe:

(1) That the licensee *, or if the licensee is a partnership or associa-
tion, any partner or member thereof, or if the licensee is a corporation, any
officer, director, or manager thereof or shareholder owning ten per centum
or more of its capital stock:

(a) Has misrepresented a material fact in applying to the Board for
such license.

(b) Within the five years next preceding the date of the hearing, has
been convicted of the violation of any law, ordinance, or regulation of this
state, or of any state, or of the United States of America, or of any county,
city, or town in this state, applicable to the manufacture, transportation,
possession, use, or sale of alcoholic beverages, or has violated any provision
of this chapter or Chapter 2 of this Title 4, or has violated or failed or
refused to comply with any regulation, rule, or order of the Board, or has
failed or refused to comply with any of the conditions or restrictions of the
license issued by the Board.

(c) Has been convicted of a felony or of any crime or offense involving
moral turpitude in any court.

(ad) Is not the legitimate owner of the business conducted under the
license issued by the Board, or other persons have ownership interests in
the business which have not been disclosed.
(e) Has become insolvent or cannot demonstrate financial responst-
bility sufficient to meet adequately the requirements of the business con-
ducted under license issued by the Board.

(f) Has been intoxicated, as defined in this chapter, or under the
influence of some self-administered drug, while in the establishment oper-
ated under such license.

(g) Has allowed noisy, lewd, or disorderly conduct in the, licensed
establishment, or has maintained such establishment in an unsanitary
condition, or ‘allowed such establishment to become a meeting place or
rendezvous for persons of ill repute, or has allowed any form of gambling
to take place in such establishment.

(h) Knowingly, employs in the business conducted under such license,
as agent, servant, or employee, any person who has been convicted of a
felony or of any crime or offense involving moral turpitude in any court,
or who has violated the laws of this state, or of any other state, or of the
United States of America, applicable to the manufacture, transportation,
possession, use or sale of alcoholic beverages.

(i) Has demonstrated by his police record subsequent to the issuance
of his original license a lack of respect for law and order.

(j) Has allowed the consumption of alcoholic beverages in the licensed
establishment by any person whom he knew or had reason to believe was
(1) less than twenty-one years of age, or (2) an interdicted person, or (3)
an intoxicated person, or (4) a patient under the supervision or control of
any state hospital, whether such person be on furlough or otherwise, or
has allowed any person whom he knew or had reason to believe was intozt-
cated to loiter in such licensed establishment, or has allowed the consump-
tion of beverages, as defined in Chapter 2 of this Title 4, by any person
whom he knew or had reason to believe was (1) less than eighteen years of
age, or (2) an intoxicated person.

(k) Has allowed any person to consume in the licensed establishment
any alcoholic beverages except as provided under this chapter.

(D) Is physically unable to carry on the business conducted under
such license or has been adjudicated incompetent.

(2) That the place occupied by the licensee * :

(a) Does not conform to the requirements of the governing body of
the county, city, or town, in which such place is located, with respect to
sanitation, health, construction, or equipment, or to any similar require-
ments established by the laws of this State or by the regulations of the

oard.

(b) Has been adjudicated a common nuisance under the provisions of
this chapter.

(c) Has become a meeting place or rendezvous for users of narcotics,
drunks, homosexuals, prostitutes, pimps, panderers, gamblers, or habitual
law violators. The Board may consider the general reputation in the com-
munity of such place in addition to any other competent evidence in making
such determination.

For the purposes of this subsection (2) “place” shall mean the real
estate, together with any buildings or other improvements thereon, desig-
nated in the application for a license as the place at which the manufac-
ture, bottling, distribution, use or sale of alcoholic beverages shall be per-
formed, except that portion of any such building or other improvement
actually and exclusively used as a private residence as defined in § 4-2.

(3) That * any cause exists for which the Board would have been en-
titled to refuse to issue such license had the facts been known; and the
Board may likewise suspend or revoke any license for any other cause
designated by this chapter.
CH. 521] ACTS OF ASSEMBLY 751

And the Board shall suspend or revoke a license as provided in § 18-296.

(b) Before the Board may suspend or revoke any license issued under
the provisions of this chapter, at least ten days’ notice of such proposed or
contemplated action by the Board shall be given to the licensee affected.
Such notice shall be in writing, shall contain a statement in detail of the
grounds or reasons for such proposed or contemplated action of the Board,
and shall be served on the licensee as other notices are served, or by sending
the same to such licensee by registered mail to his last known postoffice
address. The Board shall in such notice appoint a time and place when and
at which the licensee shall be heard as to why his license should not be
suspended or revoked. The licensee shall at such time and place have the
right to produce evidence in his behalf and to be represented by counsel.

(c) The Board in suspending any license may impose, as a condition
precedent to the removal of such suspension, a requirement that the licensee
pay the cost incurred by the Board in investigating the licensee and in
holding the proceeding resulting in such suspension.

(d) The action of the Board in suspending or revoking any license
pursuant to the provisions of this section shall not be subject to review by
any court, except upon petition, to the Circuit Court of the city of Rich-

, of a licensee whose license has been revoked, which petition shall
be filed within 80 days from the entry of the order of the Board revoking
such license. The filing of such petition shall not operate to stay any order
of the Board revoking any license. The jurisdiction of the Circuit Court
of the city of Richmond shall be limited in any case involving such petition
to the record of the proceedings before the Board. An appeal shali lie to
the Supreme Court of Appeals from any order of the Circuit Court of the
city of Richmond; nor shall any mandamus or injunction lie in any such
case.
(e) Alcoholic beverages, other than beer, owned and in possession, or
owned or in possession, for sale, by or of any licensee at the time the li-
cense of any such person is suspended or revoked as herein provided, may
be sold by such person to the Board at such price or prices and upon such
terms as may be agreed upon by the Board and such person, or may, upon
permits issued by the Board and upon such conditions as the Board may
specify be sold to persons in Virginia licensed to sell such alcoholic bever-
ages or may, upon permits issued by the Board, be sold to persons outside
of Virginia for resale outside of Virginia, except that no deliveries or ship-
ments shall be made into any state the laws of which prohibit the consignee
from receiving or selling the same.

- Beer owned and in possession, or owned or in possession, for sale, by
or of any licensee at the time the license of such person is suspended or -re-
voked as provided herein, may upon permits of the Board and upon pay-
ment of any excise tax due thereon be sold to any person authorized to
purchase the same for resale.

Alcoholic beverages owned and in possession, or owned or in possession,
for sale, by or of persons whose licenses have been terminated otherwise
than by suspension or revocation may dispose of the same in accordance
with the foregoing provisions of this section within such time as the Board,
in its discretion, may deem proper under the circumstances, provided such
period shall not be Jess than sixty days.

All such alcoholic beverages owned by or in possession of any person
whose license is suspended or revoked, as provided herein, shall be dis-
posed of by such person in accordance with the provisions of this section
within a period of sixty days from the date of such suspension or revoca-
tion. All such alcoholic beverages owned by or in possession of any person
whose license is terminated otherwise than by suspension or revocation,
shall be disposed of by such person in accordance with the provisions of
this section within the period allowed by the Board. All such alcoholic
beverages owned by or remaining in the possession of any such person,
after the expiration of such period shall be deemed contraband and for-
feited to the Commonwealth in accordance with the provisions of § 4-55.