§ 25–446. Settlement agreements; approval process; penalties for violations.
(a) The applicant and any protestant may, at any time, negotiate a settlement and enter into a written settlement agreement setting forth the terms of the settlement.
(a-1) The applicant and any person or entity who would otherwise have standing to protest an application pursuant to § 25-601 may, at any time, negotiate a settlement and enter into a written agreement setting forth the terms of the settlement.
(b)(1) The signatories to the agreement shall submit the agreement to the Board for approval.
(2) Except as provided in § 25-446.02, all provisions of a settlement agreement approved by the Board shall be enforceable by ABCA or the Board.
(3) A settlement agreement not approved by the Board shall not be enforced by ABCA or the Board.
(c) If it determines that the settlement agreement complies with all applicable laws and regulations and the applicant otherwise qualifies for licensure, the Board shall approve the license application, conditioned upon the licensee’s compliance with the terms of the settlement agreement. The Board shall incorporate the text of the settlement agreement in its order and the settlement agreement shall be enforceable by the Board.
(d)(1) Unless a shorter term is agreed upon by the parties, a settlement agreement shall run for the term of a license, including renewal periods, unless it is terminated or amended in writing by the parties and the termination or amendment is approved by the Board.
(2) The Board may accept an application to amend or terminate a settlement agreement by fewer than all parties in the following circumstances:
(A) During the license’s renewal period; and
(B) After 4 years from the date of the Board’s decision initially approving the settlement agreement.
(3) Notice of an application to amend or terminate a settlement agreement shall be given both to the parties of the agreement and to the public at the time of the applicant’s renewal application according to the renewal procedures required under §§ 25-421 through 25-423.
(4) The Board may approve a request by fewer than all parties to amend or terminate a settlement agreement for good cause shown if it makes each of the following findings based upon sworn evidence:
(A)(i) The applicant seeking the amendment has made a diligent effort to locate all other parties to the settlement agreement; or
(ii) If non-applicant parties are located, the applicant has made a good-faith attempt to negotiate a mutually acceptable amendment to the settlement agreement;
(B) The need for an amendment is either caused by circumstances beyond the control of the applicant or is due to a change in the neighborhood where the applicant’s establishment is located; and
(5) To fulfill the good faith attempt criteria of paragraph (4)(A)(ii) of this subsection, a sworn affidavit from the applicant shall be filed with the Board at the time that an application to amend a settlement agreement by fewer than all parties is filed stating that either:
(A) A meeting occurred between the parties which did not result in agreement; or
(B) The non-applicant parties refused to meet with the applicant.
(6) For the purposes of this subsection, the term “license’s renewal period” means the 60-day period before the expiration date of a license.
(e) Upon a determination that a licensee has violated a settlement agreement, the Board shall penalize the licensee according to the provisions set forth for violations of a license in Chapter 8 of this title.