                                 CODE OF VIRGINIA

GROUNDS FOR WHICH BOARD MAY SUSPEND OR REVOKE LICENSES; EXCEPTION (§ 4.1-225)

A. The Board may suspend or revoke any license other than a brewery license, in
which case the Board may impose penalties as provided in § 4.1-227, if it has
reasonable cause to believe that:

   1. The licensee, or if the licensee is a partnership, any general partner
   thereof, or if the licensee is an association, any member thereof, or a
   limited partner of 10 percent or more with voting rights, or if the licensee
   is a corporation, any officer, director, or shareholder owning 10 percent or
   more of its capital stock, or if the licensee is a limited liability company,
   any member-manager or any member owning 10 percent or more of the membership
   interest of the limited liability company:
   				a. Has misrepresented a material fact in applying to the Board for such
   license;				b. Within the five years immediately preceding the date of the
   hearing held in accordance with &#xA7; 4.1-227, has (i) been convicted of a
   violation of any law, ordinance, or regulation of the Commonwealth, of any
   county, city, or town in the Commonwealth, of any state, or of the United
   States, applicable to the manufacture, transportation, possession, use, or
   sale of alcoholic beverages; (ii) violated any provision of Chapter 3 (&#xA7;
   4.1-300 et seq.); (iii) committed a violation of the Wine Franchise Act
   (&#xA7; 4.1-400 et seq.) or the Beer Franchise Act (&#xA7; 4.1-500 et seq.) in
   bad faith; (iv) violated or failed or refused to comply with any regulation,
   rule, or order of the Board; or (v) failed or refused to comply with any of
   the conditions or restrictions of the license granted by the Board;				c. Has
   been convicted in any court of a felony or of any crime or offense involving
   moral turpitude under the laws of any state, or of the United States;				d. Is
   not the legitimate owner of the business conducted under the license granted
   by the Board, or other persons have ownership interests in the business which
   have not been disclosed;				e. Cannot demonstrate financial responsibility
   sufficient to meet the requirements of the business conducted under the
   license granted by the Board;				f. Has been intoxicated or under the
   influence of some self-administered drug while upon the licensed
   premises;				g. Has maintained the licensed premises in an unsanitary
   condition, or allowed such premises to become a meeting place or rendezvous
   for members of a criminal street gang as defined in &#xA7; 18.2-46.1 or
   persons of ill repute, or has allowed any form of illegal gambling to take
   place upon such premises;				h. Knowingly employs in the business conducted
   under such license, as agent, servant, or employee, other than a busboy, cook,
   or other kitchen help, any person who has been convicted in any court of a
   felony or of any crime or offense involving moral turpitude, or who has
   violated the laws of the Commonwealth, of any other state, or of the United
   States, applicable to the manufacture, transportation, possession, use, or
   sale of alcoholic beverages;				i. Subsequent to the granting of his original
   license, has demonstrated by his police record a lack of respect for law and
   order;				j. Has allowed the consumption of alcoholic beverages upon the
   licensed premises by any person whom he knew or had reason to believe was (i)
   less than 21 years of age, (ii) interdicted, or (iii) intoxicated, or has
   allowed any person whom he knew or had reason to believe was intoxicated to
   loiter upon such licensed premises;				k. Has allowed any person to consume
   upon the licensed premises any alcoholic beverages except as provided under
   this subtitle;				l. Is physically unable to carry on the business conducted
   under such license or has been adjudicated incapacitated;				m. Has allowed
   any obscene literature, pictures, or materials upon the licensed
   premises;				n. Has possessed any illegal gambling apparatus, machine, or
   device upon the licensed premises;				o. Has upon the licensed premises (i)
   illegally possessed, distributed, sold, or used, or has knowingly allowed any
   employee or agent, or any other person, to illegally possess, distribute,
   sell, or use marijuana, controlled substances, imitation controlled
   substances, drug paraphernalia, or controlled paraphernalia as those terms are
   defined in Articles 1 (&#xA7; 18.2-247 et seq.) and 1.1 (&#xA7; 18.2-265.1 et
   seq.) of Chapter 7 of Title 18.2 and the Drug Control Act (&#xA7; 54.1-3400 et
   seq.); (ii) laundered money in violation of &#xA7; 18.2-246.3; or (iii)
   conspired to commit any drug-related offense in violation of Article 1 or 1.1
   of Chapter 7 of Title 18.2 or the Drug Control Act. The provisions of this
   subdivision shall also apply to any conduct related to the operation of the
   licensed business that facilitates the commission of any of the offenses set
   forth herein;				p. Has failed to take reasonable measures to prevent (i) the
   licensed premises, (ii) any premises immediately adjacent to the licensed
   premises that are owned or leased by the licensee, or (iii) any portion of
   public property immediately adjacent to the licensed premises from becoming a
   place where patrons of the establishment commit criminal violations of Article
   1 (&#xA7; 18.2-30 et seq.), 2 (&#xA7; 18.2-38 et seq.), 2.1 (&#xA7; 18.2-46.1
   et seq.), 2.2 (&#xA7; 18.2-46.4 et seq.), 3 (&#xA7; 18.2-47 et seq.), 4
   (&#xA7; 18.2-51 et seq.), 5 (&#xA7; 18.2-58 et seq.), 6 (&#xA7; 18.2-59 et
   seq.), or 7 (&#xA7; 18.2-61 et seq.) of Chapter 4 of Title 18.2; Article 2
   (&#xA7; 18.2-266 et seq.) of Chapter 7 of Title 18.2; Article 3 (&#xA7;
   18.2-346 et seq.) or 5 (&#xA7; 18.2-372 et seq.) of Chapter 8 of Title 18.2;
   or Article 1 (&#xA7; 18.2-404 et seq.), 2 (&#xA7; 18.2-415), or 3 (&#xA7;
   18.2-416 et seq.) of Chapter 9 of Title 18.2 and such violations lead to
   arrests that are so frequent and serious as to reasonably be deemed a
   continuing threat to the public safety; or				q. Has failed to take reasonable
   measures to prevent an act of violence resulting in death or serious bodily
   injury, or a recurrence of such acts, from occurring on (i) the licensed
   premises, (ii) any premises immediately adjacent to the licensed premises that
   is owned or leased by the licensee, or (iii) any portion of public property
   immediately adjacent to the licensed premises.

   2. 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 establishment is located, with respect to
   sanitation, health, construction, or equipment, or to any similar requirements
   established by the laws of the Commonwealth or by Board regulations;				b. Has
   been adjudicated a common nuisance under the provisions of this subtitle or
   &#xA7; 18.2-258; or				c. Has become a meeting place or rendezvous for illegal
   gambling, illegal users of narcotics, drunks, prostitutes, pimps, panderers,
   or habitual law violators or has become a place where illegal drugs are
   regularly used or distributed. The Board may consider the general reputation
   in the community of such establishment in addition to any other competent
   evidence in making such determination.

   3. The licensee or any employee of the licensee discriminated against any
   member of the armed forces of the United States by prices charged or
   otherwise.

   4. The licensee, his employees, or any entertainer performing on the licensed
   premises has been convicted of a violation of a local public nudity ordinance
   for conduct occurring on the licensed premises and the licensee allowed such
   conduct to occur.

   5. Any cause exists for which the Board would have been entitled to refuse to
   grant such license had the facts been known.

   6. The licensee is delinquent for a period of 90 days or more in the payment
   of any taxes, or any penalties or interest related thereto, lawfully imposed
   by the locality where the licensed business is located, as certified by the
   treasurer, commissioner of the revenue, or finance director of such locality,
   unless (i) the outstanding amount is de minimis; (ii) the licensee has pending
   a bona fide application for correction or appeal with respect to such taxes,
   penalties, or interest; or (iii) the licensee has entered into a payment plan
   approved by the same locality to settle the outstanding liability.

   7. Any other cause authorized by this subtitle.

B. Notwithstanding the provisions of subdivision A 1 h, a licensee may employ a
person who has been convicted of a felony or a crime involving moral turpitude
if (i) except for violations of &#xA7; 18.2-54.1 or 18.2-54.2, two years have
elapsed following the conviction and the person has completed and been released
from the term of any probation or parole, if applicable, or (ii) the licensee
has obtained written approval for such employment from the Authority and, in
instances in which the person has not completed or been released from the term
of any probation or parole, the Authority has consulted with the person&#8217;s
probation and parole officer.

HISTORY: Code 1950, § 4-37; 1956, c. 521; 1970, cc. 545, 676; 1976, cc. 696,
698, 702; 1978, c. 579; 1979, c. 537; 1980, c. 299; 1981, cc. 24, 586, 600;
1982, c. 214; 1983, c. 608; 1984, cc. 180, 200, 703; 1985, c. 559; 1986, cc.
101, 318, 615; 1987, c. 252; 1991, c. 468; 1992, cc. 161, 820; 1993, c. 866;
1996, c. 404; 1997, c. 801; 2002, c. 352; 2003, c. 594; 2007, c. 103; 2008, cc.
185, 794; 2009, c. 486; 2011, cc. 384, 410; 2013, c. 661; 2014, cc. 233, 674,
719; 2017, cc. 698, 707; 2020, c. 122; 2023, c. 774.