(A) Personal privileges. Licenses and riders are personal privileges granted by the city to the person named on the license and/or rider. Licenses and riders may not be transferred through any means, unless otherwise provided in § 96.27(F)(4). Licenses and riders shall not constitute personal property for purposes of sale, transfer, or descent by reason of the laws governing testate or intestate estates.
(B) Transfer of license or rider. Any effort to transfer a license and/or rider, whether voluntary or involuntary or through a change of ownership of the premises, shall automatically and immediately void the license and/or rider. Voided transfers of licenses and/or riders include, but are not necessarily limited to, the following:
(1) A sole proprietor attempts to transfer a license and/or a rider to a partnership, corporation, limited liability company, or another sole proprietor.
(2) A corporation attempts to transfer its license and/or a rider to a sole proprietor, partnership, limited liability company, another corporation, or where a majority of the shareholders attempt to transfer their shareholder interest or interests to one or more minority shareholders of the corporation or third persons. Notwithstanding anything to the contrary contained in this subsection, the sale of stock in a corporation through a transaction governed by the rules of a regulated public stock exchange shall not void the corporation’s license as otherwise provided in this subsection.
(3) A partnership attempts to transfer its license and/or rider, if any, to a sole proprietor, corporation, limited liability company, another partnership, or where a majority partner attempts to transfer his, her or its partnership interest to one or more minority partners or a third person.
(4) A limited liability company attempts to transfer its license and/or rider to a sole proprietor, a corporation, a partnership, another limited liability company, or where a majority owners of a limited liability company (members) attempt to transfer their ownership interest or interests to one or more minority owners (members) of the limited liability company.
(5) A licensee and/or rider holder ceases business operations at the premises identified in the license and/or rider for a period of 180 consecutive days except in those circumstances where the licensee or rider holder is engaging in remodeling, restoring, or rehabilitating the premises identified in the license or rider pursuant to a building permit issued by the city.
(C) Death of licensee. A license and/or rider shall automatically become void upon the death of a licensee sole proprietor, a corporate licensee’s majority shareholder, a limited liability company licensee’s majority owner, or a partnership’s majority partner and such license, in all events, shall not descend by reason of the laws governing testate or intestate estates. However, the personal representative of the estate of the aforesaid deceased individual may continue to operate under such license as provided by state law under court order until such time as the estate is closed or the license is failed to be renewed, whichever is earlier in time.
(D) Bankruptcy, liquidation of licensee. A license and/or rider shall automatically become void in the event that the licensee or its majority owner files for protection pursuant to Chapter 7 of the United States bankruptcy laws, rules and regulations or where such bankruptcy is otherwise converted from some other chapter to a straight liquidation. Neither a license nor a rider shall constitute an executory contract with the city for bankruptcy purposes.
(E) Termination of operations. A license and/or rider shall automatically become void in the event the licensee terminates that operation of the licensee’s business. However, the licensee may continue to operate under such license for a reasonable period of time but solely for the purpose of winding up the business affairs of the licensee.
(F) Waiting list.
(1) Once the maximum allowable number of licenses have been issued, applicants for licenses will be placed on a waiting list in the order in which their fully completed applications for a license were delivered to the deputy liquor commissioner.
(2) An applicant that does not have a current valid liquor license issued by the city need not provide the certificate of insurance required by § 96.03(A)(6) until such time as that applicant rises to the top of the waiting list and is notified that a license is available.
(3) In order to be number one on the waiting list, the applicant must provide the deputy liquor commissioner with (i) a fully completed application; (ii) the requisite certificate of insurance; (iii) and, if applicable, an Illinois Gaming Board license that allows for the display, operation and playing of video gaming terminals; and (iv) the license or rider fee, as the case may be, within ten business days of when the applicant learned that they are number one on the waiting list. If the applicant fails to provide the aforesaid information, the applicant shall be removed from the top spot on the waiting list and the applicant next on the list shall be afforded the opportunity to qualify for the available license or rider.
(4) In the event that a licensee seeks to sell, transfer, or otherwise convey their establishment, the buyer seeking to acquire the establishment shall submit an application for the same license and any riders, if any, that the seller has. Once the buyer has submitted a fully completed application, including a certification of insurance, all as provided in § 96.03, and has met the qualifications to receive a license, the buyer will be placed on the top of the waiting list. The buyer shall receive the same license, one or more riders, if any, that the city issued to the seller upon the buyer presenting evidence that the buyer has closed on the purchase of the seller’s business.
(Ord. 9470, passed 3-5-24)