(a) Nontransferability. No license, nor any interest in a licensed entity, shall be transferable by any licensee to any other person, but in certain circumstances as set forth in this section, the issuance fee may be waived for a new license issued hereunder.
(b) Issuance fees payable for a new license or supplemental license may be waived in the following circumstances:
(1) Any change in entity status involving the formation or dissolution of a corporation, limited liability company, or partnership, so long as the actual ownership and control of the licensed business is held by the same persons, in the same percentages, as prior to such entity change; or
(2) The voluntary transfer, by gift or otherwise to an immediate family member of an interest in a licensed business. "Immediate family member", for purposes of this section means a persons in the same line of direct lineal descent, including grandparents, parents, children and grandchildren, but excluding siblings, aunts and uncles, and cousins.
The waiver of the issuance fee shall only be granted in the event application is made for issuance of a new license prior to the intended transfer, is and accompanied by such identification and documentary proof as may be required by the Liquor Commissioner to show that the transfer of ownership qualifies for any exemption set forth above.
(c) The following events shall not be deemed to create a change of ownership requiring issuance of a new license:
(1) The transfer of any ownership interest to or from a spouse, or any division of interests of spouses in relation to marital dissolution proceedings if ordered by a court of competent jurisdiction;
(2) The transfer of any interest in a partnership, corporation or limited liability company to an immediate family member as the result of death of a person with a current ownership interest;
(3) The transfer of less than fifty percent ownership interest in a licensed partnership, corporation, or limited liability company. For purposes of this section, the relevant determination shall be whether, in the aggregate, more than fifty percent of the ownership interest in the licensed entity have been held by the same person or persons for at least the preceding thirty-six months prior to the date of the most recent transfer. If any transfer or intended transfer would result in more than fifty percent of the overall ownership interests in the licensed entity having changed owners in the last thirty-six months, the transfer shall be deemed to require issuance of a new license.
In the event of the occurrence of any of the exempt ownership transfers set forth above, the licensee shall immediately notify the City Clerk of the transfer, and shall provide such identification and documentary verification of the circumstances of such transfer as may be required by the Liquor Commissioner.
(d) Any transfer of interest which is not specifically authorized and approved in the manner set forth herein hereby, or which is made to a person otherwise prohibited from holding a license, shall be deemed a prohibited transfer, and shall immediately void any license currently issued to the offending licensee.
(Ord. 2018-12. Passed 3-5-18.)