CHAPTER 178

AN ACT to amend and reenact § 4-114, as amended, of the Code of Vir-
ginia, relating to the suspension and revocation of certain licenses
issued by the Virginia Alcoholic Beverage Control Board, to provide
for revocation or suspension of certain licenses under certain circum-
stances, to require notice and hearing before the Board may revoke
and suspend certain licenses, and to permit the payment of costs by
the licensee as a condition precedent to the removal of a license sus-

pension.
[H 380]
Approved March 4, 1958

Be it enacted by the General Assembly of Virginia:

1. That § 4-114, as amended, of the Code of Virginia be amended and re-
enacted as follows:

§ 4-114. (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 other 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 bever-
ages, or has violated any provision of this chapter or Chapter 1 (§ 4-1
et seq.) of this Title, 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 in-
volving moral turpitude in any court.

(d) 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 respon-
sibility sufficient to meet adequately the requirements of the business
conducted under license issued by the Board.

(f) Has been intoxicated, as defined in the preceding chapter, or
under the influence of some self-administered drug, while in the estab-
lishment operated 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 any state, or of the United States of
America, applicable to the manufacture, transportation, possession, use
or sale of alcoholic beverages or beverages.

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

(j) Has allowed any person whom he knew or had reason to believe
was intoxicated to loiter in such licensed establishment.

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

(1) 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-
_ 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
the preceding chapter.

(c) Has become a meeting place or rendezvous for users of nar-
cotics, drunks, homosexuals, prostitutes, pimps, panderers, gamblers, or
habitual law violators. The Board may consider the general reputation
in the community of such place in addition to any other competent evi-
dence 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, de-
signated in the application for a license as the place at which the manu-
facture, bottling, distribution, use or sale of beverages shall be performed,
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.

(bo) 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 af-
fected. 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
post office 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 repre-
sented 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 li-
censee pay the cost incurred by the Board in investigating the licensee and
in holding the proceeding resulting in such suspension.