Sec. 30-48. Limitations of permits; exceptions. Loans. Period of credit. Resolution of credit disputes.
Sec. 30-48. Limitations of permits; exceptions. Loans. Period of credit. Resolution of credit disputes. (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 any class of airport,
railroad, airline and boat permits, and except that: (1) A backer of a hotel or restaurant
permit may be a backer of both such classes; (2) a holder or backer of a manufacturer
permit for a brew pub, a restaurant permit or a cafe permit may be a holder or backer
of any other or all of such classes; (3) a holder or backer of a restaurant permit may be
a holder or backer of a bowling establishment permit; (4) a backer of a restaurant permit
may be a backer of a coliseum permit or a coliseum concession permit, or both, when
such restaurant is within a coliseum; (5) a backer of a hotel permit may be a backer of
a coliseum permit or a coliseum concession permit, or both; (6) a backer of a coliseum
permit may be a backer of a coliseum concession permit; (7) a backer of a coliseum
concession permit may be a backer of a coliseum permit; (8) a backer of a grocery store
beer permit may be a backer of a package store permit if such was the case on or before
May 1, 1996; (9) a backer of a university permit may be a backer of a nonprofit theater
permit; (10) subject to the discretion of the department, a backer of a permit provided
for in section 30-33b, may be a backer of any other retail on-premise consumption
permit, including those permits provided for in section 30-33b; (11) a backer of a nonprofit theater permit may be a holder or backer of a hotel permit; (12) a holder or backer
of a restaurant permit may be a holder or backer of a special outing facility permit; (13)
a backer of a concession permit may be a backer of a coliseum permit or a coliseum
concession permit, or both; (14) a holder of an out-of-state winery shipper's permit for
wine may be a holder of an in-state transporter's permit; (15) a holder of an out-of-state
shipper's permit for alcoholic liquor other than beer may be a holder of an in-state
transporter's permit; and (16) a holder of a manufacturer's permit for a farm winery
may be a holder of an in-state transporter's permit. Any person may be a permittee of
more than one permit. A person may be a permittee under a permit provided for in section
30-33b and a backer of any other retail on-premise consumption permit, including those
permits provided for in section 30-33b. The operator of a racing or jai alai exhibition
with pari-mutuel betting licensed by the Gaming Policy Board may be a backer of any
permit provided for in section 30-33b. 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.
(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. If a wholesaler permittee alleges the applicant received
direct or indirect consideration from the predecessor permittee or that there remain
outstanding liquor obligations, such wholesaler permittee may file with the department
an affidavit, along with supporting documentation to establish receipt of such consideration or outstanding liquor obligations. The Commissioner of Consumer Protection, in
the commissioner's sole discretion, shall determine whether a hearing is warranted on
such allegations. 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.
(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.)
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.
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. Cited. 156 C. 291, 301. Cited. 175 C.
279. Cited. 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.