(A) Any license may be revoked or suspended by the city’s ABC Administrator if:
(1) The licensee shall have violated any of other provisions of KRS Ch. 241 to 244, or any rule or regulation of the State Board, or of the state’s Department of Revenue, relating to the regulation of the manufacture, sale and transportation, or taxation, of alcoholic beverages or if such licensee shall have violated or shall violate any act of Congress or any rule or regulation of any federal board, agency or commission or this chapter now, heretofore or hereafter in effect relating to the regulation of the manufacture, sale and transportation or taxation, of intoxicating liquors, or any rules or regulations of the city heretofore in existence or authorized by the terms of KRS Ch. 241 to 244 to be created, irrespective of whether the licensee knew of or permitted the violation or whether the violation was committed is disobedience of his or her instructions;
(2) A license may be revoked for any of the reasons for which the city’s ABC Administrator would have been required to refuse a license if the facts had been known;
(3) In addition to the foregoing stated causes, any license may be revoked or suspended for the following causes:
(a) Conviction of the licensee or the licensee’s agent, servant or employee for selling any illegal alcoholic beverages on the licensed premises;
(b) Making any false, material statements in an application or renewal application for a license or supplemental license; and
(c) Conviction of the licensee or any of the licensee’s agents, servants or employees of:
1. Two violations of the terms and provisions of KRS Ch. 241 to 244, or any act regulating the manufacture, sale and transportation of alcoholic beverages within two consecutive years;
2. Two misdemeanors directly or indirectly attributable to the use of alcoholic beverages within two consecutive years; or
3. 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 state license provided in KRS 243.030 and 243.040, or permit 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 (A)(6) shall not apply to:
(a) The sale of lottery tickets sold under the provisions of KRS Ch. 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 Ch. 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 Ch. 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 Ch. 218A, including synthetic drugs; or
(c) Knowingly receiving stolen property upon the licensed premises.
(8) Failure to comply with the terms of the City Administrator.
(B) (1) (a) Upon the verified complaint of any person, or on the initiative of any law enforcement officer, or of the city’s ABC Administrator, the city’s ABC Administrator may institute proceedings to revoke or suspend any license granted under this chapter. A license may be revoked or suspended only after the licensee shall have been given written notice, by certified or registered mail, of the proposed revocation, including notice of the reasons for such proposed action. The licensee shall be given opportunity to be heard in opposition to the proposed revocation or suspension. The notice of proposed action shall advise the licensee of the date, time and place of the hearing. Notice shall be sufficient if mailed to the licensee at the address shown in the last application for a license or in the last statement supplemental to or in amendment of the application, whether or not the mailing is receipted for or claimed.
(b) The specific procedures to be followed in hearings on actions for revocation or suspension shall provide constitutional due process rights to the city’s ABC license holder.
(c) A decision of the city’s ABC Administrator revoking or suspending a license may be appealed to Board as provided in KRS 241.200 and KRS 243.550.
(d) Within three days after any order of revocation or suspension 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 his or her license to the city’s ABC Administrator. If the revoked or suspended license is not forthwith surrendered by the licensee, the Chief of Police, at the request of the city’s ABC Administrator, shall immediately cause one of his or her officers to take physical possession of the license and return it to the city’s ABC Administrator.
(e) When a license has been revoked or suspended, the former licensee may, with prior approval of the city’s ABC Administrator, dispose of and transfer his or her stock of alcoholic beverages to an appropriate entity.
(f) Appeal from the decision of the city’s ABC Administrator revoking or suspending a license shall be to the State Board. The timely filing of an appeal shall stay further proceedings for revocation.
(g) If a license is revoked or suspended by an order of the city’s ABC Administrator, and the decision is not appealed, the licensee shall suspend all operations authorized under his or her license upon finality and effectiveness of the order. Upon finality of any final order of the state Board sustaining or ordering revocation or suspension on appeal, the licensee shall at once suspend all operations authorized under this license.
(2) No license issued under this chapter shall be transferred or assigned either as to licensee or location, except with prior approval of the city’s ABC Administrator and not until a payment of $100 shall be made to the city’s ABC Administrator.
(Ord. 2018-04, passed 5-29-2018)