Except as otherwise set forth in state law, the City Administrator shall not approve any application for a city license if:
(A) The City Administrator may deny any license application if the application is incomplete or the correct fee has not been remitted with the application.
(B) A license shall be denied:
(1) If the applicant or the premises for which the license is sought does not comply fully with all alcoholic beverage control statutes, the administrative regulations of the board and the city ordinances;
(2) If the applicant has done any act for which a revocation of license would be authorized; or
(3) If the applicant has made any false material statement in its application.
(C) A license may be denied by the City Administrator for any reason that the Administrator, in the exercise of the Administrator's sound discretion, deems sufficient. Among those factors that the Administrator shall consider in the exercise of this discretion are:
(1) Public sentiment in the area;
(2) Number of licensed outlets in the area;
(3) Potential for future growth;
(4) Type of area involved;
(5) Type of transportation available;
(6) Financial potential of the area; and
(7) Applicant's status as a delinquent taxpayer as defined in KRS 131.1815.
(D) An individual shall not become a licensee if the individual:
(1) (a) Has been convicted of any felony until five years have passed from the date of conviction, release from custody or incarceration, parole, or termination of probation, whichever is later;
(b) Has been convicted of any misdemeanor involving a controlled substance that is described in or classified pursuant to KRS Chapter 218A in the two years immediately preceding the application;
(c) Has been convicted of any misdemeanor directly or indirectly attributable to the use of alcoholic beverages in the two years immediately preceding the application;
(d) Is under the age of 21 years;
(e) Has had any license relating to the regulation of the manufacture, sale, and transportation of alcoholic beverages revoked for cause or has been convicted of a violation of any statute within KRS Chapters 241 to 244, until the expiration of two years from the date of the revocation or conviction; or
(2) Is not a citizen of the United States and has not had an actual, bona fide residence in this state for at least one year before the date on which the application for a license is made. This division shall not apply to applicants for manufacturers' licenses, to applicants that are corporations authorized to do business in this state, or to persons licensed on March 7, 1938.
(E) A partnership, limited partnership, limited liability company, corporation, governmental agency, or other business entity recognized by law shall not be licensed if:
(1) Each principal owner, partner, member, officer, and director does not qualify under divisions (D)(1)(a), (D)(1)(b), (D)(1)(c), (D)(1)(d), and (D)(1)(e) of this section;
(2) It has had any license relating to the regulation of the manufacture, sale, and transportation of alcoholic beverages revoked for cause or has been convicted of a violation of any statute within KRS Chapters 241 to 244, until the expiration of two years from the date of the revocation or conviction; or
(3) Any principal owner, partner, member, officer, or director, or any business entity in which they were directly or indirectly interested, has had any license revoked for cause or has been convicted of a violation of any statute within KRS Chapters 241 to 244, until the expiration of the later of two years from the date of the revocation or two years from the date of conviction.
(F) The provisions of divisions (D)(1)(a) and (D)(1)(b) above shall apply to anyone applying for a new license under this chapter after July 15, 1998, but shall not apply to those who renew a license that was originally issued prior to July 15, 1998, or an application for a supplemental license where the original license was issued prior to July 15, 1998.
(G) A person shall not evade license disqualification by applying for a license through or under the name of a different person. The City Administrator shall examine the ownership, membership, and management of all license applicants, and shall deny the application if a disqualified person has a direct or indirect interest in the applicant's business. The city may issue administrative subpoenas and summonses to determine ownership of an applicant or to investigate alleged violations by a licensee.
(H) No license shall be issued to any person, firm, or corporation who is ineligible for a state license; and no licenses shall be issued to any city law enforcement official. No license shall be issued or renewed to any person or company which has outstanding taxes, utilities, interest or penalties to the city.
(I) If the City Administrator denies a license application, the Administrator shall notify the applicant in writing of the denial and reasons by registered or certified mail at the address given in the application or supplement.
(J) The applicant may, within 30 days after the date of the mailing of the notice from the City Administrator, file a request with the board for an administrative hearing on the application. The hearing shall be conducted by the board as a de novo review of the application in compliance with the requirements of KRS Chapter 13B.
(K) If the City Administrator denies an application and the applicant does not timely request a board hearing on its application under division (J) of this section, the city shall refund payment of the license fee to the applicant, if requested.
(Am. Ord. 2013-07, passed 6-20-13; Am. Ord. 2017-05, passed 12-19-16; Am. Ord. 2018-02, passed 12-19-17)