Senate Bill No. 506

(By Senator Unger)

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[Introduced February 16, 2000; referred to the Committee on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend article seven, chapter sixty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section four-b; and to amend and reenact section five of said article, all relating to requiring a public hearing prior to the issuance of an initial license for a private club or upon the transfer of a license to a private club at a new location.

Be it enacted by the Legislature of West Virginia:
That article seven, chapter sixty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section four-b; and that section five of said article be amended and reenacted, all to read as follows:
ARTICLE 7. LICENSES TO PRIVATE CLUBS.

§60-7-4b. Public hearing prior to issuance of new license or upon transfer of license to new location.

Prior to the issuance of an initial license to open and operate a private club, or prior to the transfer of a license to operate a private club in a new location, the commissioner shall hold a public hearing in the county where the private club is to be located to solicit public comment on the impact of licensing a private club in that location. The commissioner shall provide at least thirty days' notice before holding the public hearing by placing a Class II legal advertisement, to be paid by the prospective licensee, in two or more newspapers serving the area in which the private club is to be located, and the commissioner shall further place conspicuous notice on the building where the private club is to be located, if it is in existence at that time. The commissioner shall allow written comments from the public to be submitted during the notice period. License renewals to operate a private club at an existing location are exempt from the provisions of this section.
§60-7-5. Investigation by commissioner; issuance or refusal of license; special requirements for clubs at parks and airports; form of license; license valid at one location only; expiration and renewal; transferability.

(a) Upon receipt of the application referred to in section four of this article, together with the accompanying fee and bond, the commissioner shall conduct an investigation to determine the accuracy of the matters contained in such application and whether applicant is a bona fide private club of good reputation in the community in which it shall operate. For the purpose of conducting such investigation, the commissioner may withhold the granting or refusal to grant such license for a period not to exceed thirty one hundred twenty days. If it shall appear that such applicant is a bona fide private club, of good reputation in the community in which it shall operate and that there is no false statement contained in such application, the commissioner shall issue a license authorizing the applicant to sell alcoholic liquors as provided in section three of this article, and otherwise shall refuse to issue such license, except that in the case of an application by a corporation or association to operate a private club in connection with:
(1) A state park, the director of the department of natural resources must grant his or her approval before the license can be issued; or
(2) A county or municipal park, or an airport, the authority governing the park or airport must grant its approval before the license can be issued.
A license may not be issued for a private club in any state park unless a dining facility comparable to the dining facility for the proposed private club will be available to serve meals to the general public. A license may not be issued for a private club in any county or municipal park, or an airport, unless a dining facility comparable to the dining facility for the proposed private club will be available to serve meals to the general public.
(b) Upon refusal to issue such license the commissioner shall make and enter an order denying such application, which denial and refusal shall be final unless a hearing is requested in accordance with the provisions of section thirteen of this article. When such refusal or denial becomes final the commissioner shall forthwith refund to the applicant his or her fees and bond accompanying the application.
(c) Such license shall be of such form and design as the commissioner may prescribe by reasonable rule or regulation, and shall authorize the licensee to sell alcoholic liquors at only one location.
(d) Such license shall expire on the thirtieth day of June next following the date of issue and may be renewed upon the same showing as required for the issuance of the initial license, together with the payment of fees and filing of the bond as required by this article.
(e) A license issued under the provisions of this article
may not be transferable.



NOTE: The purpose of this bill is require the Alcohol Beverage Control Commissioner to hold a public hearing prior to issuing a first-time license for private club or upon the transfer of a license to a private club at a new location. The public hearing will be held in the county where the club is to be located.

§60-7-4b is new; therefore, strike-throughs and underscoring have been omitted.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.