West Virginia Code of State Rules › Agency 175 - Alcohol Beverage Control Commission › Title 175 - LEGISLATIVE RULE ALCOHOL BEVERAGE CONTROL COMMISSIONER › Series 175-05 - Licensing Of Retail Outlets › Section 175-5-4 - Limitations on Licenses

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. In general. -- A person may hold, directly or indirectly, one or more Class A retail licenses and one or more Class B retail licenses for a market zone.
4.2. Aggregate limitation rule. -- No individual or other person may directly or indirectly hold a combination of licenses that, in the aggregate, authorizes that person to operate more than thirty percent (30%) of the total number of Class A and Class B retail outlets authorized under the provisions of W. Va. Code §
									60-3A-1,
et seq
. to be operated in this state during the ten-year (10) license period that begins July 1, 2010. The following constitutes examples of the instant rule:
Example 1. -- The Commissioner advertises for bid Class A and Class B retail licenses that, in the aggregate, will allow one hundred eighty (180) retail outlets to be operated in this state during the ten-year (10) period that begins July 1, 2010. Thirty percent (30%) of one hundred eighty (180) retail outlets is fifty-four (54) retail outlets. ABC Corporation submits bids for Class A and Class B licenses that would authorize it to operate 55 retail outlets should ABC Corporation be the winning bidder for all of those licenses. After the bids are opened, it is determined that ABC Corporation would be the winning bidder for licenses authorizing it to operate 55 retail outlets. Due to the aggregate limitation rule, ABC Corporation may only be issued licenses that allow it to operate no more than 54 retail outlets.
Example 2. -- The Commissioner advertises for bid Class A and Class B retail licenses that, in the aggregate, will allow one hundred eighty (180) retail outlets to be operated in this state during the ten-year (10) period that begins July 1, 2010. Thirty percent (30%) of one hundred eighty (180) retail outlets is fifty-four (54) retail outlets. ABC Corporation submits bids for Class A and Class B licenses that would authorize it to operate thirty (30) retail outlets should ABC Corporation be the winning bidder for all of those licenses. D&E Corporation submits bids for Class A and Class B licenses that would authorize it to operate thirty (30) retail outlets should D&E Corporation be the winning bidder for all of those licenses. After the bids are opened, it is determined that ABC Corporation would be the winning bidder for licenses authorizing it to operate 30 retail outlets and that D&E Corporation would be the winning bidder for licenses authorizing it to operate 30 retail outlets. However, because ABC Corporation and D&E Corporation are wholly owned subsidiaries of Alphabet Corporation, they are disqualified from holding a license that allows them to operate, in the aggregate, more than 54 retail outlets due to application of the thirty percent (30%) rule. No individual or other person may directly or indirectly hold a license that authorizes the operation of more than 54 retail outlets.
4.3. Indirect ownership. -- A license is indirectly held by a person when that license is held by:
4.3.a. Members of a family. For purposes of this rule, the family of an individual includes only his or her brothers and sisters (whether by whole or half blood), spouse, ancestors, and lineal descendants, whether by birth or adoption and within the degree of consanguinity of second cousins and persons related by current marriage;
4.3.b. An individual and a corporation if more than fifty percent (50%) in value of the outstanding stock of the corporation is owned, directly or indirectly, by or for the individual;
4.3.c. An individual and a partnership or limited liability company if more than fifty percent (50%) in value of the ownership interests is owned, directly or indirectly, by or for that individual;
4.3.d. A partnership and another partnership if the same persons own, directly or indirectly, more than fifty percent (50%) of the capital interest, or the profits interest, in each partnership;
4.3.e. A limited liability company and another limited liability company if the same persons own, directly or indirectly, more than fifty percent (50%) of the capital interest, or the profits interest, in each limited liability company;
4.3.f. A partnership and a limited liability company if the same persons own, directly or indirectly, more than fifty percent (50%) of the capital interest, or the profits interest, in the partnership and the limited liability company;
4.3.g. Two corporations that are members of the same "controlled group" as that term is defined in section 4.6 of this rule;
4.3.h. A grantor of a trust and a fiduciary of a trust created by that grantor;
4.3.i. A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts;
4.3.j. A fiduciary of a trust and a beneficiary of that trust;
4.3.k. A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts;
4.3.l. A fiduciary of a trust and a corporation if more than fifty percent (50%) in value of the outstanding stock of the corporation is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
4.3.m. A corporation and a partnership or limited liability company if the same persons own, directly or indirectly, more than fifty percent (50%) in value of the outstanding stock of the corporation, and more than fifty percent (50%) of the capital interest, or the profits interest, in the partnership or limited liability company;
4.3.n. An S corporation and another S corporation if the same persons own, directly or indirectly, more than fifty percent (50%) in value of the outstanding stock of each corporation; or
4.3.o. An S corporation and a C corporation, if the same persons own, directly or indirectly, more than fifty percent (50%) in value of the outstanding stock of each corporation.