                                 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.