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Searching 2019-2020 Session

The Vermont Statutes Online

Title 7: Alcoholic Beverages

Chapter 005: DEPARTMENT OF LIQUOR AND LOTTERY

  • § 101. Composition of Department; Commissioner of Liquor and Lottery; Board of Liquor and Lottery

    (a)(1) The Department of Liquor and Lottery, created by 3 V.S.A. § 212, shall administer the laws relating to alcoholic beverages, tobacco, and the State Lottery. It shall include the Commissioner of Liquor and Lottery and the Board of Liquor and Lottery.

    (2) The Board of Liquor and Lottery shall supervise and manage the sales of spirits and fortified wines pursuant to this title and the establishment and management of the State Lottery pursuant to 31 V.S.A. chapter 14.

    (3)(A) The Department of Liquor and Lottery shall be under the immediate supervision and direction of the Commissioner of Liquor and Lottery.

    (B) The Division of Liquor Control is created within the Department to administer and carry out the laws relating to alcohol and tobacco set forth in this title.

    (C) The Division of Lottery is created within the Department to administer and carry out the laws relating to the State Lottery set forth in 31 V.S.A. chapter 14.

    (D) The Commissioner, with the approval of the Governor, may appoint a Deputy Commissioner of Liquor Control to supervise and direct the Division of Liquor Control and a Deputy Commissioner of the State Lottery to supervise and direct the Division of Lottery. Both Deputy Commissioners shall be exempt from the classified service and shall serve at the pleasure of the Commissioner.

    (b)(1) The Board of Liquor and Lottery shall consist of five persons. Not all members of the Board shall belong to the same political party.

    (2)(A) With the advice and consent of the Senate, the Governor shall appoint the members of the Board for staggered three-year terms.

    (B) The Governor shall fill a vacancy occurring during a term by an appointment for the unexpired term in accordance with the provisions of 3 V.S.A. § 257(b).

    (C) A member's term of office shall commence on February 1 of the year in which the member is appointed.

    (3) A member of the Board may serve for no more than two consecutive full terms. A member who is appointed to fill a vacancy occurring during a term may serve two consecutive full terms in addition to the unexpired portion of the term during which the member is first appointed.

    (4) The Governor shall designate a member of the Board to be its Chair. The Chair shall have general charge of the offices and employees of the Board.

    (c) No member of the Board shall have a financial interest in any licensee under this title or 31 V.S.A. chapter 14, nor shall any member of the Board have a financial interest in any contract awarded by the Board or the Department of Liquor and Lottery.

    (d) The Governor shall annually submit a budget for the Department to the General Assembly. (Amended 1959, No. 329 (Adj. Sess.), § 32, eff. March 1, 1961; 2011, No. 115 (Adj. Sess.), § 8, eff. May 9, 2012; 2015, No. 144 (Adj. Sess.), § 14; 2018, No. 1 (Sp. Sess.), § 9.)

  • § 102. Removal

    Notwithstanding any provision of 3 V.S.A. § 2004 to the contrary, after notice and hearing, the Governor may remove a member of the Board of Liquor and Lottery for incompetency, failure to discharge his or her duties, malfeasance, immorality, or other cause inimical to the general good of the State. In case of such removal, the Governor shall appoint a person to fill the unexpired term. (Amended 2015, No. 144 (Adj. Sess.), § 15; 2018, No. 1 (Sp. Sess.), § 10.)

  • § 103. Meetings

    The Board shall meet as may be required for the performance of its duties. The time and place for each meeting shall be designated by the Chair of the Board. The Chair shall call a meeting upon the written request of any two members or upon the written request of the Governor. (Amended 2017, No. 83, § 13.)

  • § 104. Duties; authority to resolve alleged violations

    The Board shall supervise and manage the sale of spirits and fortified wines within the State in accordance with the provisions of this title, and through the Commissioner of Liquor and Lottery shall:

    (1)(A) Ensure that the laws relating to alcohol and alcoholic beverages are enforced, using for that purpose as much of the monies annually available to the Board of Liquor and Lottery as may be necessary.

    (B) The Board of Liquor and Lottery and its agents and investigators shall act in this respect in collaboration with sheriffs, deputy sheriffs, constables, law enforcement officers certified as Level II or Level III pursuant to 20 V.S.A. chapter 151, and members of village and city police forces, control commissioners, the Attorney General, and State's Attorneys.

    (C) When the Board acts to enforce any section of this title or any administrative rule relating to sale to minors, its investigation on the alleged violation shall be forwarded to the Attorney General or the appropriate State's Attorney whether or not there is an administrative finding of wrongdoing. Nothing in this section shall be deemed to affect the responsibility or duties of law enforcement officers or agencies with respect to the enforcement of the provisions of this title.

    (D) The Commissioner or designee is authorized to prosecute administrative matters under this section and shall have the authority to enter into direct negotiations with a licensee to reach a proposed resolution or settlement of an alleged violation, subject to Board approval, or dismissal with or without prejudice.

    (2) Supervise the opening and operation of local agencies for the sale and distribution of spirits and fortified wines.

    (3) Locate, establish, and supervise the operation of a central liquor warehouse and office for the purpose of supplying spirits and fortified wines to local agencies established in accordance with this title and for the purpose of selling spirits and fortified wines to licensees of the third class and fortified wine permit holders.

    (4) Supervise the financial transactions of the central liquor warehouse and office, and the local agencies established in accordance with this title.

    (5) Adopt rules necessary for the execution of its powers and duties and of the powers and duties of all persons under its supervision and control.

    (6) Employ assistants, investigators, and other officers as it deems necessary, subject to the approval of the Governor.

    (7) Fix bonds or other security to be given by licensees.

    (8) Adopt rules concerning, and issue licenses and permits under whatever terms and conditions it may impose for the furnishing, purchasing, selling, bartering, transporting, importing, exporting, delivering, and possessing of alcohol, including denatured alcohol, for manufacturing, mechanical, medicinal, and scientific purposes.

    (9) Adopt rules regarding labeling and advertising of alcoholic beverages by adoption of federal regulations or otherwise, and collaborate with federal agencies in respect to the adoption and the enforcement of the rules.

    (10) Adopt rules relating to extension of credit by and to licensees or permittees.

    (11) Adopt rules regarding intrastate transportation of malt and vinous beverages.

    (12) Review the budget for the Department submitted by the Commissioner and approve or amend it for submission to the Governor. (Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1975, No. 254 (Adj. Sess.), § 138; 1977, No. 54, § 1(a), eff. April 23, 1977; 1981, No. 246 (Adj. Sess.), § 1; 2011, No. 115 (Adj. Sess.), § 7; 2015, No. 23, § 80; 2015, No. 51, §§ A.5, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2017, No. 93 (Adj. Sess.), § 4; 2018, No. 1 (Sp. Sess.), § 11.)

  • § 105. Duties of Attorney General

    The Attorney General shall collaborate with the Board of Liquor and Lottery for the enforcement of the provisions of subdivision 104(1) of this title. (Amended 2018, No. 1 (Sp. Sess.), § 12.)

  • § 106. Commissioner of Liquor and Lottery; reports; recommendations

    (a)(1) With the advice and consent of the Senate, the Governor shall appoint from among not fewer than three candidates proposed by the Board of Liquor and Lottery a Commissioner of Liquor and Lottery for a term of four years.

    (2) The Board shall review the applicants for the position of Commissioner of Liquor and Lottery and by a vote of the majority of the members of the Board shall select candidates to propose to the Governor. The Board shall consider each applicant's administrative expertise and his or her knowledge regarding the business of distributing and selling alcoholic beverages and administering the State Lottery.

    (b) The Commissioner shall serve at the pleasure of the Governor until the end of the term for which he or she is appointed or until a successor is appointed. (Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 2015, No. 144 (Adj. Sess.), § 16; 2018, No. 1 (Sp. Sess.), § 13.)

  • § 107. Duties of Commissioner of Liquor and Lottery

    (a) The Commissioner of Liquor and Lottery shall direct and supervise the Department of Liquor and Lottery and, subject to the direction of the Board, shall see that the laws relating to alcohol and tobacco under this title and to the State Lottery under 31 V.S.A. chapter 14 are carried out. The Commissioner shall annually prepare a budget for the Department and submit it to the Board for review pursuant to subdivision 104(12) of this chapter.

    (b) With respect to the laws relating to alcohol, the Commissioner shall:

    (1) In towns that vote to permit the sale of spirits and fortified wines, establish local agencies as the Board of Liquor and Lottery shall determine. However, the Board shall not be obligated to establish an agency in every town that votes to permit the sale of spirits and fortified wines.

    (2) Recommend rules subject to approval and adoption by the Board governing the hours during which local agencies shall be open for the sale of spirits and fortified wines, the qualifications of the agencies' employees, and the business, operational, financial, and revenue standards that must be met for the establishment of an agency and its continued operation.

    (3) Recommend rules subject to approval and adoption by the Board governing:

    (A) the prices at which spirits shall be sold by local agencies, the method for their delivery, and the quantities of spirits that may be sold to any one person at any one time; and

    (B) the minimum prices at which fortified wines shall be sold by local agencies and second-class licensees that hold fortified wine permits, the method for their delivery, and the quantities of fortified wines that may be sold to any one person at any one time.

    (4) Supervise the quantities and qualities of spirits and fortified wines to be kept as stock in local agencies and recommend rules subject to approval and adoption by the Board regarding the filling of requisitions for spirits and fortified wines on the Commissioner of Liquor and Lottery.

    (5) Purchase spirits and fortified wines for and in behalf of the Board of Liquor and Lottery; supervise their storage and distribution to local agencies, third-class licensees, and holders of fortified wine permits; and recommend rules subject to approval and adoption by the Board regarding the sale and delivery from the central liquor warehouse.

    (6) Check and audit the income and disbursements of all local agencies and the central storage plant.

    (7) Report to the Board regarding the State's liquor control system and make recommendations for the promotion of the general good of the State.

    (8) Devise methods and plans for eradicating intemperance and promoting the general good of the State and make effective such methods and plans as part of the administration of this title. (Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1961, No. 30, eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2001, No. 143 (Adj. Sess.), § 8, eff. June 21, 2002; 2015, No. 51, §§ A.6, eff. Jan. 1, 2016; 2015, No. 144 (Adj. Sess.), § 17; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 14.)

  • § 108. Enforcement by Board; regulations; forms and reports

    The Board of Liquor and Lottery shall administer and enforce the provisions of this title and is authorized and empowered to adopt rules and issue the necessary blanks, forms, and reports, except reports to the Commissioner of Taxes and to the Commissioner of Public Safety, as may be necessary to carry out the provisions of this title. (Amended 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 15.)

  • § 109. Audit of accounts of Board of Liquor and Lottery

    All accounts of the Board of Liquor and Lottery related to its activities pursuant to this title shall be audited annually by the Auditor of Accounts, and the annual report of the audit shall accompany the annual reports of the Board of Liquor and Lottery. (Amended 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 16.)

  • § 110. Special brands; purchase by Commissioner of Liquor and Lottery

    If a person desires to purchase any class, variety, or brand of spirits or fortified wine that a local agency or fortified wine permit holder does not have in stock, the Commissioner of Liquor and Lottery shall order the product upon the payment of a reasonable deposit by the purchaser in a proportion of the approximate cost of the order as prescribed by the rules of the Board of Liquor and Lottery. (Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1961, No. 30, eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2015, No. 51, § A.7, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 17.)

  • § 111. Transfer of local agency store in conjunction with sale of real property or business

    (a) If a proposed sale of real estate or a business in which a local agency store is located is contingent on the transfer of the agency store's contract with the Board to the buyer, the seller and buyer may, prior to completing the sale, submit to the Division a request to approve the transfer of the agency store's contract to the buyer. The request shall be accompanied by any information required by the Division.

    (b) The Division shall review the request and evaluate the buyer based on the standards for evaluating an applicant for a new agency store contract.

    (c) Within 30 days after receiving the request and all necessary information, the Division shall complete the evaluation of the proposed transfer and notify the parties of whether the agency store's contract may be transferred to the buyer.

    (d)(1) If the transfer is approved, the contract shall transfer to the buyer upon completion of the sale.

    (2) If the transfer is denied, the seller may continue to operate the agency store pursuant to the existing contract with the Board. (Added 1987, No. 188 (Adj. Sess.), § 3, eff. May 11, 1988; amended 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 18.)

  • § 112. Liquor Control Enterprise Fund

    The Liquor Control Enterprise Fund is established. It shall consist of all receipts from the sale of spirits, fortified wines, and other items by the Board of Liquor and Lottery and Division of Liquor Control; fees paid to the Division of Liquor Control for the benefit of the Division; all other amounts received by the Division of Liquor Control for its benefit; and all amounts that are from time to time appropriated to the Division of Liquor Control. (Added 1995, No. 63, § 278; amended 2005, No. 215 (Adj. Sess.), § 344; 2015, No. 51, § A.8, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 19.)

  • § 113. Administration of Department; apportionment of costs

    The administrative and operating costs of the Department of Liquor and Lottery that are not specific to either the Division of Liquor Control or the Division of Lottery and the cost of any functions that are shared in common by the two Divisions shall be allocated to and paid from the Liquor Control Enterprise Fund and the State Lottery Fund based on generally accepted accounting principles. (Added 2018, No. 1 (Sp. Sess.), § 20.)