La. Admin. Code tit. 55 § VII-111

Current through Register Vol. 50, No. 9, September 20, 2024

Section VII-111 - Retail Dealer Violations- Notices, Hearings and Findings

A. Any of the following, when committed by a retail dealer, shall be considered a violation of R.S. 26:741, the Beer Cash Law:

1. failure to pay the full cash consideration for the purchase of beer not later than at the time of delivery of said beer, or, to use any maneuver, device, or shift of any kind whereby credit is obtained;

2. making payment to a wholesaler for beer with a check which does not comply with the requirements of §103 of these regulations;

3. to buy, borrow or otherwise obtain beer by any means while under a permit suspension order;

4. to sell, loan, give or otherwise supply beer on any basis to a retail dealer who is under a permit suspension order;

5. to violate the conditions of a cash basis order, or, to violate conditions of a permit suspension order.

B. Whenever the commissioner has reason to believe that a violation of R.S. 26:741 or these regulations has been committed by a retail dealer, he shall determine, according to available records, if it is the first violation, or, if prior violations have occurred, and, proceed according to the following.

1. First Violation. The commissioner shall send a warning notice to the retailer.

2. Second Violation

a. On the second recorded instance of a violation, after the notice of the first violation to a retail dealer, the commissioner shall review the file and records of violations of the retail dealer to determine a finding.

b. If, after such review, the commissioner is satisfied that the violation did occur within one year of the first violation, then, he shall rule that the retail dealer must pay cash for beer for a period of three months, to begin the date so specified in the cash basis order.

c. If the cash basis order is issued on the retailer, the commissioner shall rule to require wholesale dealers to accept only cash from the retailer for the payment of beer sold during the period of the cash basis order.

3. Third Violation

a. The commissioner shall send a notice to the retail dealer that the records show that since the second violation was found, the retailer has committed another violation and that a hearing will be held at a specified time and place.

b. If, at the hearing on the third violation, the commissioner is satisfied that the violation did occur within one year of the first violation, then the permit of the violator shall be suspended for a three-day period, exclusive of Sundays, election days and holidays.

c. In addition to the suspension of the permit, the commissioner shall rule that the retail dealer must pay cash for beer for a period of six months, which rule, shall require wholesale dealers to accept only cash from the retailer during the period of the cash basis order.

4. Fourth Violation

a. The commissioner shall send a notice to the retail dealer that the records show that since the third violation was found, the retail dealer has committed another violation and that a hearing will be held at a specified time and place.

b. If at the hearing on the fourth violation the commissioner is satisfied that the violation did occur within two years of the first violation, then the permit of the violator shall be suspended for a period of not less than 10 days nor more than 30 days.

c. In addition to the suspension of the permit, the commissioner shall rule that the retail dealer must pay cash for beer for a period of one year, which rule shall become effective on the finding of the violation; and the commissioner shall rule to require wholesale dealers to accept only cash from retail dealer during the period of the cash basis order.

C. When violators found subsequent to the fourth violation, the commissioner likewise set hearings as in the third and fourth violations, and if after the hearing the commissioner is satisfied that the violation did occur within one year of the last previous violation, then the permit of the retail violator shall be suspended for a period of not less than 10 days nor more than 30 days, and shall be required to pay cash for the purchase of beer for one year.

D. If the commissioner determines at the hearing on the fourth violation, or, any subsequent hearing, that an aggravated condition occurred with that violation, an alternative penalty may be invoked by the commissioner to include permit suspension for a period of 90 days, or the revocation of the permit of the violator.

La. Admin. Code tit. 55, § VII-111

Adopted by the Department of Public Safety, Office of Alcoholic Beverage Control, 1948, filed at the Office of the State Register, 1974.

AUTHORITY NOTE: Promulgated in accordance with R.S. 26:32 and R.S. 26:793.