§ 111.62 SUSPENSION, REVOCATION OF LICENSE.
   (A)   The renewal by the department of any alcoholic beverage license shall not be construed to waive or condone any violation that occurred prior to the renewal and shall not prevent subsequent proceedings against the licensee.
   (B)   The department may deny license renewal if the licensee is a delinquent taxpayer for taxes owed to the city and taxes owed to the state as defined in KRS 131.1815.
   (C)   Suspension of licenses;
      (1)   Upon proceedings for the revocation of any license under KRS 243.520, the Alcoholic Beverage Control Board, or the local alcoholic beverage administrator, may in its or his or her discretion order a suspension of the license for any cause for which it may, but is not required to, revoke the license under the provisions of KRS 243.490 and 243.500. However, the licensee may have the alternative, subject to the approval of the Alcoholic Beverage Control Board or the local alcoholic beverage administrator, to pay in lieu of part or all of the days of any suspension period, a sum as follows:
         (a)   Except for violations arising from retail sales activities, including sales under licenses issued pursuant to KRS 243.086 and sales at retail under KRS 243.0305:
            1.   Distillers, rectifiers, wineries, and brewers, $1,000 per day;
            2.   Wholesale liquor licensees, $400 per day; and
            3.   Wholesale beer licensees, $400 per day;
         (b)   1.   Retail licensees authorized to sell distilled spirits, wine, or beer by the package or drink, $50 per day;
            2.   Distillers, wineries, and brewers for violations arising from their retail sales activities, including sales by distillers under licenses issued pursuant to KRS 243.086 and sales at retail under KRS 243.0305, $50 per day; and
         (c)   All remaining licensees, $50 per day.
      (2)   Payments in lieu of suspension or for board-ordered agency server training, collected on a cost recovery basis, collected by the Alcoholic Beverage Control Board shall be deposited in the state treasury and credited to the general expenditure fund. Payments in lieu of suspension collected by local alcoholic beverage administrators shall be deposited and used as local alcoholic beverage license tax receipts are deposited and used.
      (3)   In addition to or in lieu of a suspension of a license, the board may order a licensee to pay for and require attendance and completion by some or all of the licensee's alcoholic beverage servers in the department's server training program.
      (4)   Appeals from orders of suspension and the procedure thereon shall be the same as are provided for orders of revocation in KRS Chapter 13B.
   (D)   Causes for which licenses may be revoked or suspended. A license may be revoked or suspended by the board for a violation of any of the following:
      (1)   Any of the provisions of KRS Chapters 241 to 244;
      (2)   Any administrative regulation of the board relating to the regulation of the manufacture, sale, and transportation of alcoholic beverages;
      (3)   Any rule or administrative regulation of the Department of Revenue relating to the taxation of alcoholic beverages;
      (4)   Any Act of Congress or any rule or regulation of any federal board, agency, or commission;
      (5)   Any local ordinance relating to the regulation of the manufacture, sale, and transportation or taxation of alcoholic beverages;
      (6)   Any of the laws, regulations, or ordinances referred to in this section when an agent, servant, or employee of the licensee committed the violation, irrespective of whether the licensee knew of or permitted the violation or whether the violation was committed in disobedience of the licensee's instructions;
      (7)   Any cause which the Alcoholic Beverage Control Board in the exercise of its sound discretion deems sufficient; or
      (8)   Any of the reasons for which the state administrator would have been required to deny a license if existing material facts had been known.
   (E)   Causes for which licenses may be revoked or suspended. Any license may be revoked or suspended for the following causes:
      (1)   Conviction of the licensee or the licensee's agent, servant, or employee for selling any illegal alcoholic beverages on the licensed premises.
      (2)   Making any false, material statements in an application or renewal application for a license or supplemental license.
      (3)   Conviction of the licensee or any of the licensee's agents, servants, or employees of:
         (a)   Two violations of the terms and provisions of KRS Chapters 241 to 244, or any act regulating the manufacture, sale, and transportation of alcoholic beverages within two consecutive years;
         (b)   Two misdemeanors directly or indirectly attributable to the use of alcoholic beverages within two consecutive years; or
         (c)   Any felony.
      (4)   Failure or default of a licensee to pay an excise tax or any part of the tax or any penalties imposed by or under the provisions of any statutes, ordinances, or Acts of Congress relative to taxation, or for a violation of any related administrative regulations promulgated by the Department of Revenue.
      (5)   Revocation of any license or permit provided in KRS 243.060, 243.070, 243.600, and 243.610, or granted under any Act of Congress relative to the regulation of the manufacture, sale, and transportation of alcoholic beverages.
      (6)   Setting up, conducting, operating, or keeping, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility for betting or transmitting bets on horse races; or permitting to be set up, conducted, operated, kept, or engaged in, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. This division shall not apply to:
         (a)   The sale of lottery tickets sold under the provisions of KRS Chapter 154A;
         (b)   The operation of a pari-mutuel system for betting, where authorized by law;
         (c)   The conduct of charitable gaming by a charitable organization licensed or permitted under KRS Chapter 238; or
         (d)   Special temporary raffles of alcoholic beverages under KRS 243.036.
      (7)   Conviction of the licensee, the licensee's agents, servants, or employees for:
         (a)   The trafficking or possession upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs;
         (b)   Knowingly permitting the trafficking or possession by patrons upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs; or
         (c)   Knowingly receiving stolen property upon the licensed premises.
      (8)   Failure to comply with the terms of a final order of the board.
      (9)   A licensee shall not permit any consumer to possess, give away, or drink alcoholic beverages on the licensed premises that are not purchased from the licensee.
   (F)   The procedure for the revocation or suspension of a city license shall consist of a written notice signed by the City Administrator and mailed to the licensee at the address of the licensed premises by certified mail. The notice required by this section shall be in plain language and shall include:
      (1)   A statement of the date, time, place, and nature of the hearing;
      (2)   The name, official title, and mailing address of the City Administrator;
      (3)   The names, official titles, mailing addresses, and, if available, telephone numbers of all parties to the hearing, including the counsel or representative of the agency;
      (4)   A statement of the factual basis for the city action along with a statement of issues involved, in sufficient detail to give the parties reasonable opportunity to prepare evidence and argument;
      (5)   A reference to the specific statutes and administrative regulations which relate to the issues involved and the procedure to be followed in the hearing;
      (6)   A statement advising the person of his right to legal counsel;
      (7)   A statement of the parties' right to examine, at least five days prior to the hearing, a list of witnesses the parties expect to call at the hearing, any evidence to be used at the hearing and any exculpatory information in the city's possession; and
      (8)   A statement advising that any party who fails to attend or participate as required at any stage of the administrative hearing process may be held in default under this chapter. The time and place of a hearing in regard thereto shall be at least 20 days thereafter notice at which the licensee and the representatives thereof shall be heard thereon. The hearing thereon shall be conducted by the City Administrator in the city and according to the procedure prescribed by the State Alcoholic Beverage Control Board for hearings by the Board as supplemented by the regulations of the City Administrator. The City Administrator shall control and make all decisions in regard to the introduction of evidence and shall hear all arguments in regard thereto. At the conclusion of the hearing, the City Administrator shall issue a written decision in regard thereto and mail a certified copy thereof to the licensee at the address of the licensed premises by certified or registered mail.
   (G)   License to be surrendered upon revocation. Within three days after any order of revocation of a license becomes final, notice of revocation shall be given to the licensee and to the owner of the licensed premises. A notice mailed to the licensee and to the owner of the licensed premises at the address shown in the last application for a license or in the last statement supplemental to the application shall be deemed sufficient compliance with this section. The licensee shall at once surrender its license to the city police. If the revoked license is not surrendered at once by the licensee, the Chief of the Police Department or Sheriff shall, at the request of the city, immediately cause one of its officers to take physical possession of the license and return it to the city.
   (H)   Appeals from decisions or orders of City Administrator. Appeals from a decision or order of each City Administrator may be taken to the board by filing a notice of appeal with the board within thirty (30) days after the decision or order of the City Administrator is mailed or delivered by personal service. The notice of appeal shall specify the City Administrator by name and shall identify the decision or order, or part of the decision or order, being appealed. The notice shall contain a certificate that a copy of the notice has been served on the City Administrator and shall be accompanied by a copy of the decision or order being appealed. Matters at issue shall be heard by the board as upon an original proceeding. Appeals from decisions or orders of the city administrator shall be governed by KRS Chapter 13B.
(Am. Ord. 2013-07, passed 6-20-13; Am. Ord. 2017-05, passed 12-19-16; Am. Ord. 2018-02, passed 12-19-17)