§ 113. Premises for which no license shall be granted. 1. Where a\nlicense for any premises licensed has been revoked, the liquor authority\nin its discretion may refuse to issue a license under this chapter, for\na period of two years after such revocation, for such licensed premises\nor for any part of the building containing such licensed premises and\nconnected therewith.\n 2. In determining whether to issue such a license for such two year\nperiod, in addition to any other factors deemed relevant, the liquor\nauthority shall, in the case of a license revoked due to the illegal\nsale of alcohol to a minor, determine whether the proposed subsequent\nlicensee has obtained such premises through an arm's length transaction,\nand, if such transaction is not found to be an arm's length transaction,\nthe liquor authority shall deny the issuance of such license.\n 3. For purposes of this section, "arm's length transaction" shall mean\na sale of a fee of all undivided interests in real property, lease,\nmanagement agreement, or other agreement giving the applicant control\nover the food and beverage at the premises, or any part thereof, in the\nopen market, between an informed and willing buyer and seller where\nneither is under any compulsion to participate in the transaction,\nunaffected by any unusual conditions indicating a reasonable possibility\nthat the sale was made for the purpose of permitting the original\nlicensee to avoid the effect of the revocation. The following sales\nshall be presumed not to be arm's length transactions unless adequate\ndocumentation is provided demonstrating that the sale, lease, management\nagreement, or other agreement giving the applicant control over the food\nand beverage at the premises, was not conducted, in whole or in part,\nfor the purpose of permitting the original licensee to avoid the effect\nof the revocation:\n (a) a sale between relatives;\n (b) a sale between related companies or partners in a business; or\n (c) a sale, lease, management agreement, or other agreement giving the\napplicant control over the food and beverage at the premises, affected\nby other facts or circumstances that would indicate that the sale,\nlease, management agreement, or other agreement giving the applicant\ncontrol over the food and beverage at the premises, is entered into for\nthe primary purpose of permitting the original licensee to avoid the\neffect of the revocation.\n
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