Title 1, Subtitle E | Procedure upon Seizure and Forfeiture of Controlled Beverages and Personal Property
Article 1 | Procedure upon Seizure and Forfeiture of Controlled Beverages
Section 1.64 Controlled Beverages Possessed in Violation of Regulations or Law Declared Contraband.
All controlled beverages found in the possession of any person where such possession shall violate any of these Regulations or any alcoholic beverage control law of the State of Arkansas are contraband and shall be seized and forfeited.
Section 1.65 Procedure Upon Seizure of Controlled Beverages.
All controlled beverages seized as provided in these Regulations and the laws of the State of Arkansas in regard thereto shall be immediately turned over to the mayor, if seized within the city limits of a municipality by a law enforcement officer of such municipality, or to the county judge, if seized without the city limits of any municipality or within the city limits of any municipality by the sheriff or any state policeman or any agent of the Division of Alcoholic Beverage Control, to be held by such mayor or county judge until such time as a district court of the county wherein such beverages were seized determines such beverages to be contraband and subject to sale. Such controlled beverages shall not be considered subject to sale if, upon advice of the Department of Health, the district court determines that the controlled beverages are not fit for human consumption. In such case, the controlled beverages shall not be sold but shall be destroyed under the supervision of an agent of the Division of Alcoholic Beverage Control.
Section 1.66 Notice of Sale to be Published.
Within three (3) days after being authorized by a district court to sell seized controlled beverages, the mayor or county judge, as the case may be, shall cause to be published in a newspaper having county-wide circulation, a notice, which notice shall appear in said newspaper twice within a thirty (30) day period, fifteen (15) days apart. The notice shall contain a list of the beverages authorized to be sold by the court, the approximate retail value thereof, the person, if known, from whom taken, the place where seized and that the beverage will be sold by the mayor or the county judge, as the case may be, at the expiration of thirty (30) days from the first published notice.
Section 1.67 Claims Against Seized Beverages.
Any person claiming any interest in any controlled beverages seized may, at any time within thirty (30) days from the date of seizure of such controlled beverages, present a written petition to the district court having jurisdiction of said controlled beverages, setting out the nature of said interest and requesting that a hearing be held by the court to determine the right or interest of such person therein. Upon the filing of the petition with the court, the judge of said court shall set a date for a hearing which date shall be ten (10) days from the date the hearing is requested, unless good and sufficient cause is shown and recorded for a further delay. At the hearing all witnesses shall be duly sworn and the testimony recorded by a stenographer. The district judge shall within fifteen (15) days after completion of the hearing enter his written findings of fact and order upon the testimony presented.
Section 1.68 Appeal from District Court.
The findings of fact and order of the district judge may be appealed to the circuit court of the county wherein such controlled beverages were seized by filing with said court within fifteen (15) days after the district judge’s order has been duly entered a transcript of record of the hearing held before the district judge. The circuit court shall hear no new evidence on the appeal and shall render its judgment only on errors of law. An appeal from the judgement of the circuit court may be taken to the Arkansas Court of Appeals.
Section 1.69 Sale of Seized Beverages.
Upon the expiration of thirty (30) days from the date of the first notice required to be published as provided in this Article the mayor or county judge, as the case may be, shall immediately notify all permitted liquor wholesalers and/or retailers in the county, or, if the county is dry, then the permitted liquor wholesalers and/or retailers in the nearest wet county, that said seized controlled beverages will be sold to the highest bidder and shall request all permitted liquor wholesalers and/or retailers to submit sealed bids. In the event that controlled beverages are seized upon which any tax has not been paid, the retailer or wholesaler buying such beverages shall pay such tax and affix all stamps required by law. (Amended 8-19-93)
Section 1.70 Mayor or County Judge to File Monthly Report of Seizures and Sales of Controlled Beverages.
Every mayor or county judge to whom seized controlled beverages are delivered shall file with the Director of the Division of Alcoholic Beverage Control a report at the end of each month showing the number of seizures, the amount of controlled beverages seized and the amount of money collected from the sale of the controlled beverages.
Article 2 | Procedure upon Seizure and Forfeiture of Personal Property
Section 1.71 Seizure and Forfeiture of Vehicles, Vessels and Other Personal Property Used in the Manufacture, Transportation or Storage of Illicitly Manufactured Beverages.
All vehicles, vessels and other personal property used, or intended to be used, in the manufacture, transportation or sale of any beverages manufactured in violation of any of these Regulations or any alcoholic beverage control law of the State of Arkansas may be seized by any law enforcement agent of the State of Arkansas and shall be forfeited to the State and turned over to the Division of Alcoholic Beverage Control for disposition.
Section 1.72 Notice of Seizure and Sale.
Within fifteen (15) days after any vehicle, vessel or other personal property is seized, the Director shall publish a notice in a newspaper having statewide circulation describing the property and stating the time, place and cause of its seizure, and stating that such property will be sold at public auction at the expiration of thirty (30) days from the date of publication of such notice if no claimants to the property appear within said thirty (30) day period. The notice shall also state that, upon disposition of any claims filed, the property will be sold pursuant to notice at public auction.
Section 1.73 Claims Against Seized Property.
Any person claiming any interest in any property seized under this Article may at any time within thirty (30) days of the date of the notice of publication required by this Article present a written petition to the Director of the Division of Alcoholic Beverage Control setting out the nature of said interest and requesting that a hearing be held to determine such person’s right or interest in the property. The Director shall set a date for said hearing which date shall be within ten (10) days of the date the hearing is requested, unless good and sufficient cause is shown and recorded for further delay. The Director shall conduct such hearing and any appeal from the Director shall be made in accordance with the procedure established in this Title.
Section 1.74 Offers to Compromise by Persons Claiming Interest in Property.
The Director may accept an offer by a person claiming an interest in the seized property in compromise of such person’s claim, taking into consideration mortgages, lender liens, other claims, cost of litigation and financial gain in the final determination of the matter.
Section 1.75 Notice of Sale After Disposition of Claim.
Upon disposition of all claims filed against the property seized and upon expiration of thirty (30) days from the date of publication of the first notice of seizure and sale required by this Article, the Director shall publish a notice in a newspaper of general statewide circulation stating that the seized property is to be sold at public auction and stating the time, date and location of such sale. The notice shall also state that all property will be sold on a unit basis and that the terms of the sale shall be cash.
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