§ 30-48 — Limitations of permits; exceptions. Loans. Period of credit. Resolution of credit disputes. Relationship of permittee to backer.

Connecticut § 30-48

• Jurisdiction: Connecticut
• Title 30: Intoxicating Liquors
• Ch. 545: Liquor Control Act

Text

(a) No backer or permittee of one permit class shall be a backer or permittee of any other permit class except in the case of airline permits issued under section 30-28a, boats operating under in-state transporter's permits issued under section 30-19f, and cafe permits issued under subsections (d) and (h) of section 30-22a, except that: (1) A backer of a hotel permit issued under section 30-21 or a restaurant permit issued under section 30-22 may be a backer of both such classes; (2) a holder or backer of a restaurant permit issued under section 30-22, a cafe permit issued under subsection (a) of section 30-22a or a cafe permit for wine, beer and cider issued under section 30-22g may be a holder or backer of any other or all of such classes; (3) a holder or backer of a restaurant permit issued under section 30-22 may be a holder or backer of a cafe permit issued under subsection (f) of section 30-22a; (4) a backer of a restaurant permit issued under section 30-22 may be a backer of a coliseum permit issued under section 30-33a when such restaurant is within a coliseum; (5) a backer of a hotel permit issued under section 30-21 may be a backer of a coliseum permit issued under section 30-33a; (6) a backer of a grocery store beer permit issued under subsection (c) of section 30-20 may be (A) a backer of a package store permit issued under subsection (b) of section 30-20 if such was the case on or before May 1, 1996, and (B) a backer of a restaurant permit issued under section 30-22, provided the restaurant permit premises do not abut or share the same space as the grocery store beer permit premises; (7) a backer of a cafe permit issued under subsection (j) of section 30-22a, may be a backer of a nonprofit theater permit issued under section 30-35a; (8) a backer of a nonprofit theater permit issued under section 30-35a may be a holder or backer of a hotel permit issued under section 30-21 or a coliseum permit issued under section 30-33a; (9) a backer of a concession permit issued under section 30-33 may be a backer of a coliseum permit issued under section 30-33a; (10) a holder of an out-of-state winery shipper's permit for wine issued under section 30-18a may be a holder of an in-state transporter's permit issued under section 30-19f; (11) a holder of an out-of-state shipper's permit for alcoholic liquor issued under section 30-18 or an out-of-state winery shipper's permit for wine issued under section 30-18a may be a holder of an in-state transporter's permit issued under section 30-19f; (12) a holder of a manufacturer permit for a farm winery issued under subsection (c) of section 30-16 or a manufacturer permit for wine, cider and mead issued under subsection (d) of section 30-16 may be a holder of an in-state transporter's permit issued under section 30-19f, an off-site farm winery sales and tasting permit issued under section 30-16a or any combination of such permits; (13) the holder of a manufacturer permit for spirits, beer, a farm winery or wine, cider and mead, issued under subsection (a), (b), (c) or (d), respectively, of section 30-16 may be a holder of a Connecticut craft cafe permit issued under section 30-22d, a restaurant permit or a restaurant permit for wine and beer issued under section 30-22 or a farmers' market sales permit issued under section 30-37o; (14) the holder of a restaurant permit issued under section 30-22, a cafe permit issued under section 30-22a, a cafe permit for wine, beer and cider issued under section 30-22g or an in-state transporter's permit issued under section 30-19f may be the holder of a seasonal outdoor open-air permit issued under section 30-22e or an outdoor open-air permit issued under section 30-22f; (15) the holder of a festival permit issued under section 30-37t may be the holder or backer of one or more of such other classes; (16) the holder of an out-of-state shipper's permit for alcoholic liquor other than beer issued under section 30-18, an out-of-state winery shipper's permit for wine issued under section 30-18a or an out-of-state shipper's permit for beer issued under section 30-19 may be the holder of an out-of-state retailer shipper's permit for wine issued under section 30-18a; and (17) the holder of a restaurant permit issued under section 30-22 may be a holder of a Connecticut craft cafe permit issued under section 30-22d, provided the permit premises are located at two different addresses. Any person may be a permittee of more than one permit. No holder of a manufacturer permit for beer issued under subsection (b) of section 30-16 and no spouse or child of such holder may be a holder or backer of more than three restaurant permits issued under section 30-22, cafe permits issued under section 30-22a or cafe permits for wine, beer and cider issued under section 30-22g. (b) No permittee or backer thereof and no employee or agent of such permittee or backer shall borrow money or receive credit in any form for a period in excess of thirty days, directly or indirectly, from any manufacturer permittee, or backer thereof, or from any wholesaler permittee, or backer thereof, of alcoholic liquor or from any member of the family of such manufacturer permittee or backer thereof or from any stockholder in a corporation manufacturing or wholesaling such liquor, and no manufacturer permittee or backer thereof or wholesaler permittee or backer thereof or member of the family of either of such permittees or of any such backer, and no stockholder of a corporation manufacturing or wholesaling such liquor shall lend money or otherwise extend credit, directly or indirectly, to any such permittee or backer thereof or to the employee or agent of any such permittee or backer. A wholesaler permittee or backer, or a manufacturer permittee or backer, that has not received payment in full from a retailer permittee or backer within thirty days after the date such credit was extended to such retailer or backer or to an employee or agent of any such retailer or backer, shall give a written notice of obligation to such retailer within the five days following the expiration of the thirty-day period of credit. The notice of obligation shall state: The amount due; the date credit was extended; the date the thirty-day period ended; and that the retailer is in violation of this section. A retailer who disputes the accuracy of the “notice of obligation” shall, within the ten days following the expiration of the thirty-day period of credit, give a written response to notice of obligation to the department and give a copy to the wholesaler or manufacturer who sent the notice. The response shall state the retailer's basis for dispute and the amount, if any, admitted to be owed for more than thirty days; the copy forwarded to the wholesaler or manufacturer shall be accompanied by the amount admitted to be due, if any, and such payment shall be made and received without prejudice to the rights of either party in any civil action. Upon receipt of the retailer's response, the chairman of the commission or such chairman's designee shall conduct an informal hearing with the parties being given equal opportunity to appear and be heard. If the chairman or such chairman's designee determines that the notice of obligation is accurate, the department shall forthwith issue an order directing the wholesaler or manufacturer to promptly give all manufacturers and wholesalers engaged in the business of selling alcoholic liquor to retailers in this state, a “notice of delinquency”. The notice of delinquency shall identify the delinquent retailer, and state the amount due and the date of the expiration of the thirty-day credit period. No wholesaler or manufacturer receiving a notice of delinquency shall extend credit by the sale of alcoholic liquor or otherwise to such delinquent retailer until after the manufacturer or wholesaler has received a “notice of satisfaction” from the sender of the notice of delinquency. If the chairman or such chairman's designee determines that the notice of obligation is inaccurate, the department shall forthwith issue an order prohibiting a notice of delinquency. The party for whom the determination by the chairman or such chairman's designee was adverse, shall promptly pay to the department a part of the cost of the proceedings as determined by the chairman or such chairman's designee, which shall not be less than fifty dollars. The department may suspend or revoke the permit of any permittee who, in bad faith, gives an incorrect notice of obligation, an incorrect response to notice of obligation, or an unauthorized notice of delinquency. If the department does not receive a response to the notice of obligation within such ten-day period, the delinquency shall be deemed to be admitted and the wholesaler or manufacturer who sent the notice of obligation shall, within the three days following the expiration of such ten-day period, give a notice of delinquency to the department and to all wholesalers and manufacturers engaged in the business of selling alcoholic liquor to retailers in this state. A notice of delinquency identifying a retailer who does not file a response within such ten-day period shall have the same effect as a notice of delinquency given by order of the chairman or such chairman's designee. A wholesaler permittee or manufacturer permittee that has given a notice of delinquency and that receives full payment for the credit extended, shall, within three days after the date of full payment, give a notice of satisfaction to the department and to all wholesalers and manufacturers to whom a notice of delinquency was sent. The prohibition against extension of credit to such retailer shall be void upon such full payment. The department may revoke or suspend any permit for a violation of this section. An appeal from an order of revocation or suspension issued in accordance with this section may be taken in accordance with section 30-60 . (c) If there is a proposed change or change in ownership of a retail permit premises, no application for a permit shall be approved until the applicant files with the department an affidavit executed by the seller of the retail permit premises stating that all obligations of the predecessor permittee for the purchase of alcoholic liquor at such permit premises have been paid or that such applicant did not receive direct or indirect consideration from the predecessor permittee. The commissioner may waive the requirement of such seller's affidavit upon finding that (1) the predecessor permittee abandoned the premises prior to the filing of the application, and (2) such permittee did not receive any consideration, direct or indirect, for such permittee's abandonment. For the purposes of this subsection, “consideration” means the receipt of legal tender or goods or services for the purchase of alcoholic liquor remaining on the premises of the predecessor permittee, for which bills remain unpaid. (d) A permittee may file a designation of an authorized agent with the department to issue or receive all notices or documents provided for in this section. The permittee shall be responsible for the issuance or receipt of such notices or documents by the agent. (e) The period of credit permitted under this section shall be calculated as the time elapsing between the date of receipt of the alcoholic liquors by the purchaser and the date of full legal discharge of the purchaser through the payment of cash or its equivalent from all indebtedness arising from the transaction except that, if the last day for payment falls on a Saturday, Sunday or legal holiday, the last day for payment shall then be the next business day. (f) A permittee shall be a director, employee, member, officer, partner or shareholder of the backer. For the purposes of this subsection, “employee” means an individual whose (1) manner and means of work performance are subject to the right of control of, or are controlled by, the backer, and (2) compensation is reported, or required to be reported, on a federal Form W-2 issued by, or caused to be issued by, the backer.

Legislative History

(1949, Rev., S. 4266; 1969, P.A. 150, S. 1; 1972, P.A. 143; P.A. 73-533, S. 6; 73-543, S. 9, 14; P.A. 74-307, S. 9; P.A. 75-598, S. 4; 75-641, S. 13; P.A. 77-132, S. 1, 2; 77-614, S. 165, 587, 610; P.A. 78-303, S. 80, 85, 136; P.A. 79-404, S. 41, 45; P.A. 80-482, S. 4, 170, 191, 345, 348; P.A. 82-32, S. 1, 2; 82-332, S. 5, 13; P.A. 84-494, S. 8, 11; P.A. 85-380, S. 3, 12; P.A. 93-139, S. 51; P.A. 95-161, S. 5; 95-195, S. 51, 83; P.A. 96-7, S. 3, 5; 96-220, S. 5, 7; P.A. 97-66; P.A. 98-164, S. 1; P.A. 03-34, S. 1; P.A. 04-9, S. 2; 04-31, S. 1; P.A. 05-274, S. 5; P.A. 09-47, S. 5; P.A. 11-164, S. 4; P.A. 13-299, S. 85; P.A. 14-189, S. 2; P.A. 15-30, S. 1; P.A. 17-160, S. 4; P.A. 19-24, S. 16; P.A. 21-37, S. 68; 21-50, S. 8; P.A. 22-56, S. 4; 22-70, S. 13; 22-104, S. 19; P.A. 23-50, S. 19, 20; P.A. 24-85, S. 11; 24-142, S. 64.) History: 1969 act permitted backer of hotel or restaurant permit to be a backer “in both such classes”; 1972 act permitted backer of restaurant or cafe permit to be backer of both such classes; P.A. 73-533 added provisions re backers of coliseum concession permits; P.A. 73-543 allowed backer or permittee of airline permit to be backer or permittee in other classes; P.A. 74-307 added provisions re backers of special sporting facility permits, allowed permittees to have more than one permit where commission determines that location of permits will allow for sufficient supervision, etc. and allowed operators of racing or jai alai exhibitions to back permits; P.A. 75-598 allowed backer or permittee of night club permit to be backer or permittee in other classes; P.A. 75-641 required that appeals be taken in accordance with Sec. 30-60 rather than Sec. 30-55; P.A. 77-132 allowed backer of university permit to be backer of nonprofit theater permit; P.A. 77-614 and P.A. 78-303 replaced liquor control commission with division of liquor control within the department of business regulation, effective January 1, 1979; P.A. 79-404 replaced commission on special revenue with gaming policy board in provision re licensing of racing or jai alai exhibition; P.A. 80-482 made division of liquor control an independent department and abolished the department of business regulation, overriding provision of same act which would have placed the division within the public safety department; P.A. 82-32 permitted a person who is a holder or backer of a restaurant permit to be a holder or backer of a bowling establishment permit; P.A. 82-332 divided section into Subsecs., eliminated provision in Subsec. (a) concerning supervision and responsibility by permittees, established dispute resolution process for 30-day credit violations and made suspension of license for violation optional rather than mandatory; P.A. 84-494 amended Subsec. (a) by allowing backers or permittees of one class of permit to be a backer or permittee of any class of airport permit; P.A. 85-380 amended Subsec. (a) by eliminating reference to night club permits; P.A. 93-139 made technical changes; P.A. 95-161 amended Subsec. (a) to permit the holder or backer of a restaurant permit to be a holder or backer of a special outing facility permit; P.A. 95-195 amended Subsec. (a) by substituting Department of Consumer Protection for Department of Liquor Control, effective July 1, 1995; P.A. 96-7 amended Subsec. (a) to permit a backer of a nonprofit theater permit to be a holder or backer of a hotel permit, effective April 2, 1996; P.A. 96-220 amended Subsec. (a) to permit the backer of a grocery store beer permit to be a backer of a package store permit if such was the case on or before May 1, 1996, effective June 4, 1996; P.A. 97-66 amended Subsec. (a) to authorize a holder or backer of a manufacturer permit for a brew pub, restaurant permit or cafe permit to be a holder or backer of any other or all of such classes, to provide that no holder of a manufacturer permit for a brew pub and no spouse or child of such holder may be a holder or backer of more than three restaurant permits or cafe permits, and to make technical changes; P.A. 98-164 added Subsec. (a)(13) authorizing backers of concession permits to be backers of coliseum permits and coliseum concession permits; P.A. 03-34 made technical changes for the purpose of gender neutrality in Subsec. (b), and amended Subsec. (c) to delete predecessor permittee or backer affidavit requirement, add applicant affidavit requirement, delete department finding exception re predecessor abandonment, add applicant affidavit language re nonreceipt of consideration, add provisions re wholesaler permittee affidavit and re commissioner's hearing and define “consideration”; P.A. 04-9 amended Subsec. (c) by making technical changes (Revisor's note: In 2005, a reference to “Commissioner of Agriculture and Consumer Protection” was changed editorially by the Revisors to “Commissioner of Consumer Protection” to reflect the repeal of the merger of the Departments of Agriculture and Consumer Protection by P.A. 04-189); P.A. 04-31 amended Subsec. (c) to require the filing of an affidavit executed by the seller of the retail permit premises, and to authorize the commissioner to waive the requirement of such seller's affidavit if the predecessor permittee abandoned the premises prior to the filing of the application, and the permittee did not receive any consideration, direct or indirect, for such permittee's abandonment; P.A. 05-274 added Subsec. (a)(14) to (16) re authorization for holders of an out-of-state winery shipper's permit, an out-of-state shipper's permit for alcoholic liquor other than beer or a manufacturer's permit for a farm winery to also hold an in-state transporter's permit, effective July 13, 2005; P.A. 09-47 added reference to out-of-state entity wine festival permit in Subsec. (a)(14) and wine festival permit in Subsec. (a)(16), effective May 20, 2009; P.A. 11-164 amended Subsec. (a)(16) by adding exemption re farmers' market wine sales permit or combination of permits and making technical changes, effective July 1, 2011; P.A. 13-299 amended Subsec. (a) to replace “Gaming Policy Board” with “Department of Consumer Protection”, effective July 1, 2013; P.A. 14-189 amended Subsec. (a)(16) by making a technical change and adding reference to off-site farm winery sales and tasting permit issued pursuant to Sec. 30-16a, effective July 1, 2014; P.A. 15-30 amended Subsec. (a) by adding Subdiv. (17) re holder of manufacturer permit for beer, manufacturer permit for brew pub or manufacturer permit for beer and brew pub also holding farmers' market beer sales permit, effective June 4, 2015; P.A. 17-160 amended Subsec. (a)(17) to add “or manufacturer permit for a farm brewery”, and make technical changes, effective July 7, 2017; P.A. 19-24 amended Subsec. (a) by deleting reference to manufacturer permit for brew pub in Subdiv. (2), deleting Subdiv. (10) re backer of retail on-premise consumption permit, redesignating Subdivs. (11) to (17) as Subdivs. (10) to (16), adding reference to holder of manufacturer permit for wine, cider and mead and making a conforming change in redesignated Subdiv. (15), deleting references to manufacturer permit for brew pub, manufacturer permit for beer and brew pub and manufacturer permit for farm brewery, replacing “30-37r” with “30-37o”, deleting provision re authorization for person to be permittee and backer of other retail on-premise consumption permit, and deleting provision re operator of racing or jai alai exhibition authorization to be a backer in redesignated Subdiv. (16), adding new Subdiv. (17) re authorization to be a holder of certain permits, and made technical and conforming changes, effective July 1, 2020; P.A. 21-37 amended Subsec. (a) by changing reference from “airport, railroad, airline and boat permits” to “cafe permits” under Secs. 30-22a(d), (j) or (k), by adding reference to Sec. 30-22a(a) in Subdiv. (2), by changing “bowling establishment permit” to “cafe permit” under Sec. 30-22a(f) in Subdiv. (3), by deleting references to “coliseum concession permit” in Subdivs. (4), (5) and (9), deleting former Subdivs. (6) and (7) re coliseum concession permits and former Subdiv. (11) re special outing facility permits, redesignating existing Subdivs. (8) to (15) as Subdivs. (6) to (12), by changing reference from “university permit” to “cafe permit” under Sec. 30-22a(m) in new Subdiv. (7), by adding reference to coliseum permit in new Subdiv. (8), adding new Subdiv. (15) re seasonal outdoor open-air permits and by making a technical change and amended Subsec. (c) by deleting provision re wholesaler permittee alleging applicant received consideration from predecessor permittee or outstanding obligations and commissioner determining whether hearing warranted, effective June 4, 2021; P.A. 21-50 amended Subsec. (a)(8), codified by the Revisors as Subsec. (a)(6), by designating existing provision as Subpara. (A) and adding Subpara. (B) re permitting backer of grocery store beer permit to be a backer of a restaurant permit, effective July 1, 2021; P.A. 22-56 amended Subsec. (a) by adding references to Secs. 30-21 and 30-22 in Subdiv. (1), Sec. 30-22 in Subdivs. (2) and (3), Secs. 30-22 and 30-33a in Subdiv. (4), Secs. 30-21 and 30-33a in Subdiv. (5), Sec. 30-20(b) in Subdiv. (6), Sec. 30-20(a) in Subdiv. (6)(A), Sec. 30-22 in Subdiv. (6)(B), Sec. 30-35a in Subdiv. (7), Secs. 30-35a, 30-21 and 30-33a in Subdiv. (8), Secs. 30-33 and 30-33a in Subdiv. (9), Secs. 30-18a and 30-19f in Subdiv. (10), Sec. 30-18, out-of-state winery shipper's permits for wine issued under Sec. 30-18a and Sec. 30-19f in Subdiv. (11), Secs. 30-16(c) and (d) and 30-19f in Subdiv. (12), Secs. 30-16(b) and 30-37o(a) in Subdiv. (13), Secs. 30-16(a) to (d), 30-22d and 30-22 in Subdiv. (14) and Secs. 30-22 and 30-22a in Subdiv. (15), deleting references to out-of-state entity wine festival permits issued pursuant to Sec. 30-37m in Subdiv. (10) and wine festival permits issued pursuant to Sec. 30-37 l in Subdiv. (12), adding Subdiv. (16) re holders of festival permits issued under Sec. 30-37t and references to Secs. 30-22 and 30-22a, and making technical and conforming changes, effective May 23, 2022; P.A. 22-70 made a technical change in Subsec. (b); P.A. 22-104 amended Subsec. (a) by adding references to airline permits issued under Sec. 30-28a and boats operating under in-state transporter's permits issued under Sec. 30-19f and substituting reference to Secs. 30-22a(d) and (h) for reference to Secs. 30-22a(d), (j) and (k), adding references to Secs. 30-21 and 30-22 in Subdiv. (1), Sec. 30-22 in Subdivs. (2) and (3), Secs. 30-22 and 30-33a in Subdiv. (4), Secs. 30-21 and 30-33a in Subdiv. (5), Sec. 30-20(c) in Subdiv. (6), Sec. 30-20(b) in Subdiv. (6)(A), Sec. 30-22 in Subdiv. (6)(B), Sec. 30-35a in Subdiv. (7), Secs. 30-35a, 30-21 and 30-33a in Subdiv. (8), Secs. 30-33 and 30-33a in Subdiv. (9), Secs. 30-18a and 30-19f in Subdiv. (10), Sec. 30-18, out-of-state winery shipper's permits for wine issued under Sec. 30-18a and Sec. 30-19f in Subdiv. (11), Secs. 30-16(c) and (d) and 30-19f in Subdiv. (12), Secs. 30-16(b) and 30-37o(a) in Subdiv. (13), Secs. 30-16(a) to (d), 30-22d and 30-22 in Subdiv. (14) and Secs. 30-22, 30-22a and in-state transporter's permits issued under Sec. 30-19f in Subdiv. (15), substituting reference to Sec. 30-22a(j) for reference to Sec. 30-22a(m) in Subdiv. (7), substituting reference to manufacturer permit for beer issued under Sec. 30-16(b) for reference to manufacturer permit for brew pub, adding references to Secs. 30-22 and 30-22a, and making technical and conforming changes, effective May 24, 2022; P.A. 23-50 amended Subsec. (a)(12) by deleting provision re farmers' market sales permit issued under Sec. 30-37o(a), deleted Subsec. (a)(13) re holders of manufacturer permits for beer issued under Sec. 30-16(b) and farmers' market sales permits issued under Sec. 30-37o(a), redesignated Subsec. (a)(14) as Subsec. (a)(13) and amended same by adding provision re farmers' market sales permit issued under Sec. 30-37o and designating existing provisions re holders of restaurant permits issued under Sec. 30-22, cafe permits issued under Sec. 30-22a, in-state transporter's permits issued under Sec. 30-19f and seasonal outdoor open-air permits issued under Sec. 30-22e as Subsec. (a)(14), redesignated Subsec. (a)(16) as Subsec. (a)(15) and added Subsec. (f) re required relationship between permittee and backer, effective June 13, 2023, and amended existing Subsec. (a)(14) by adding provision re outdoor open-air permit issued under Sec. 30-22f, effective October 1, 2023; P.A. 24-85 amended Subsec. (a) by adding provisions re cafe permits for wine, beer and cider issued under Sec. 30-22g in Subdivs. (2), (14) and (15) and making conforming changes, effective July 1, 2024; P.A. 24-142 amended Subsec. (a) by adding Subdiv. (16) providing that holder of out-of-state shipper's permit for alcoholic liquor other than beer issued under Sec. 30-18, out-of-state winery shipper's permit for wine issued under Sec. 30-18a or out-of-state shipper's permit for beer issued under Sec. 30-19 may be holder of out-of-state retailer shipper's permit for wine issued under Sec. 30-18a, adding Subdiv. (17) providing that holder of restaurant permit issued under Sec. 30-22 may be holder of Connecticut craft cafe permit issued under Sec. 30-22d, and made a conforming change in Subdiv. (14), effective June 6, 2024. Statute aimed at “tied house”. 128 C. 162; 132 C. 152. Revocation mandatory in case of violation. 128 C. 163. Designed to place definite restrictions upon nonpermittees as well as permittees and, read together with Sec. 30-113, provides a penalty against stockholder in brewing company. Id., 164. Not so indefinite or discriminatory as to violate due process. Id., 165. Includes extension of credit by notes which are to run after permits are granted. Id., 168. Backer could not be held as a matter of law to have such control of corporation as to justify disregarding corporate entities. 132 C. 155. Refusal based on suspicion that owner of another class would have an interest. Id., 426. Holder of out-of-state shipper's permit for beer only properly denied wholesaler beer permit. 134 C. 556. This is a constitutional exercise of the police power and not discrimination between residents and nonresidents. 138 C. 669. Cited. 148 C. 652; 156 C. 287; 175 C. 279; 226 C. 418. Denial of wholesaler permit because members of applicant's family who were partners, backers or permittees would have an interest in the permit was overruled. 13 CS 248.