Can I sell alcohol under a lien?

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Read time: 6 minutes

Generally, only a business with a liquor permit is allowed to sell alcoholThere are extremely limited exceptions to this general rule established by Connecticut General Statutes § 30-77(a)That statute allows certain people or businesses to sell alcoholic liquor under a lien with permission from Liquor ControlThose people or businesses that are allowed to sell alcohol under a lien are: 

  • Common carriers

  • Warehousemen

  • Court-ordered lien holders

  • Officers acting under legal process (including UCC interest holders)

  • Insurance companies that acquire legal right to possess alcohol as a result of fire, flood, or water damage

 

A common example of a court-ordered lien holder is a business landlord who evicted a tenant with a liquor permit.  Often the court will award the landlord any property left in a permit premises, including any alcohol.  The court will issue an official order or decision stating that the alcohol belongs to the landlord or is held in a lien by the landlord.  Liquor Control will respect such a court order. 

When a non-permit holder has been awarded alcohol inventory, Liquor Control will allow the non-permit holder to: 

  • Work with wholesalers to have the alcohol returned
  • Sell directly to other retailers
  • Publicly auction the alcohol

  • Keep the alcohol for their own use

The non-permit holder must obtain Liquor Control approval before undertaking any of those actions.  The non-permit holder should submit a letter to Liquor Control explaining: (1) how it intends to dispose of the inventory, (2) how it came into legal ownership or possession of the inventory, and (3) a list of the complete inventory.  Include a copy of any relevant court orders.  Send to DCP.LiquorControl@ct.gov for review and further instruction. 

If any alcohol is sold by a non-permit holder to a permit holder, it must provide the permit holder: (1) a detailed invoice of the liquor purchased, (2) a copy of the approval letter issued by the Liquor Control Division allowing the sale, and (3) instructions that the retailer must maintain a copy of the invoice and letter for two years with its other liquor purchasing invoices.  The non-permit holder must respect the limits of the buyer’s permit (e.g., a grocery store permit holder can only buy beer). 

Additionally, within thirty days of any approved sale or auction, the non-permit holder must submit to Liquor Control a list setting forth the name of each buyer, each buyer’s liquor permit number (if applicable), and a description and quantity listing of the liquor sold to the specific buyer. 

 

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