Transfer of License Act Summary
All sales and transfers of DABC licenses must first be applied for, fees paid, investigation conducted, and then approved by the DABC commission.
A DABC license may be sold, transferred and/or may move from one location to another, under the following restrictions:
- A new buyer must qualify to hold a DABC license and may not be delinquent in payment of taxes arising out of the operation of a retail license.
- Any transfer of location must be within the same county with the exception of bars. Bar licenses may be transferred to anywhere in the state.
- Once the transfer is approved by the commission, operations of the retail license must begin within 30 days. The department may grant one 30 day extension. The commission may grant one or more additional extensions not to exceed, in the aggregate, seven months from the day on which the commission approves the transfer, if it can be demonstrated to the commission that they:
- cannot begin operations because the transferee is improving the licensed premises;
- have obtained a building permit for the improvements and
- are working expeditiously to complete the improvements to the licensed premises.
However, if the Business does not begin operations within the time period required, the retail license will automatically be forfeited.
- Operations of the retail license must begin at the location approved by the commission before there can be a transfer of the license to a different location.
- Sales or transfers of any DABC license must remain the same type of license.
- If the license is being purchased for money or other assets, the following additional requirements must be satisfied:
- The seller must provide the buyer a list of creditors who have a claim against the business.
- The seller must provide notice of the intended transfer to the creditors.
- The buyer and seller must establish an escrow account with an independent escrow holder for the full amount of the purchase price for the license.
- Creditors are given the opportunity to file a claim.
- Duties of the escrow holder are enumerated. Creditors must be paid in a satutory order of preference within a reasonable time after completion of the transfer.
- Escrow may not be required if a business entity meets certain qualifications and files with the DABC a guaranty of payment of all claims of creditors -- which is accepted by the creditors. The transfer is not complete until all creditors' claims are paid in full.