A person shall not do any act authorized by any kind of license with respect to the manufacture, storage, sale, purchase, transporting or other traffic in alcoholic beverages unless he or she holds the required state and local license that authorizes the act.
(A) Classes of licenses. The following classes of licenses are created and subject to be issued in accordance with all terms, conditions, and qualifications as set out herein:
(1) Quota retail package license. This license shall authorize the licensee to purchase, receive, possess, and sell distilled spirits and wine at retail in unbroken packages only, and only for consumption off the licensed premises. Such a licensee shall purchase distilled spirits and wine in retail packages only and only from licensed wholesales. The licensee may sell only to consumers and may make deliveries only at the premises designated in his or her license. The holder of a quota retail package license may also hold a nonquota retail malt beverage package license.
(2) Quota retail drink license. This license shall authorize the licensee to purchase, receive, possess, and sell distilled spirits and wine at retail by the drink for consumption on the licensed premises. The licensee shall purchase distilled spirits and wine only from licensed wholesalers, and unless he or she also holds a quota retail package license, he or she shall not buy or possess distilled spirits or wine in containers smaller than two hundred (200) milliliters. A licensee may purchase wine in containers not smaller than one hundred (100) milliliters if the wine does not exceed fourteen percent (14%) alcohol by volume and the quota retail drink license is held by a restaurant or private club which receives a minimum of fifty percent (50%) of its food and beverage income from the sale of food and has a minimum seating capacity of fifty (50) people at tables. A licensee may buy mixed drinks in containers of a capacity not smaller than three hundred fifty-five (355) milliliters if the mixed drinks contain a substantial proportion of carbonated water. A quota retail drink license shall not authorize the licensee to sell distilled spirits or wine by the package. The holder of a quota retail drink license may also hold an NQ4 retail malt beverage drink license.
(3) Nonquota (“NQ”) malt beverage package license.
(a) A nonquota retail malt beverage package license shall authorize the licensee to:
1. Sell malt beverages at retail by the package from the licensed premises only for consumption off the licensed premises only: and
2. Purchase malt beverages only from a distributor.
(b) The holder of a quota retail package license under KRS 243.240 may also obtain a license under this section.
(c) The holder of a nonquota retail malt beverage package license may also hold an NQ4 retail malt beverage drink license.
(d) A nonquota retail malt beverage package license shall not be issued to sell malt beverages at retail for any premises from which gasoline and lubricating oil are sold or from which the servicing and repair of motor vehicles is conducted, unless there is maintained in inventory on the premises for sale at retail not less than five thousand dollars ($5,000.00) of food, groceries, and related products valued at cost.
(e) The term “FOOD AND GROCERIES” means:
1. Any food or food product intended for human consumption except alcoholic beverages, tobacco, hot foods, and hot food products prepared for immediate consumption:
2. Seeds and plants to grow food for personal consumption.
(f) The provisions of this section shall not apply to any licensed premise which sells no fuel other than marine fuel.
(4) Nonquota type 2 (NQ2) retail drink license.
(a) A Nonquota type 2 (NQ2) retail drink license may be issued to:
1. A hotel that:
A. Contains at least fifty (50) sleeping units;
B. Contains dining facilities for at least fifty (50) persons; and
C. Receives from its total food and beverage sales at least fifty percent (50%) of its gross receipts from the sale of food;
2. A restaurant with a minimum seating for fifty (50) consumers at tables.
(b) A qualifying hotel or restaurant holding an NQ2 retail drink license may purchase receive, possess and sell distilled spirits, wine and malt beverages at retail by the drink for consumption on the licensed premise. The licensee shall purchase distilled spirits, wine or malt beverages only from licensed wholesalers or distributors. An NQ2 retail drink license shall not authorize the licensee to sell distilled spirits, wine or malt beverages by the package. The holder of an NQ2 retail drink license shall comply with the requirements of division (A)(2) herein, quota retail drink license.
(c) An NQ2 retail drink license shall not be issued for any restaurant or any dining facility in a hotel, unless the applicant can demonstrate to the City Administrator that gross receipts of the restaurant or the dining facility from the sale of food for consumption on the premises is reasonably estimated to be not less than fifty percent (50%) of the total food and alcoholic beverage receipts of the restaurant or dining facility for the license period.
(5) Nonquota type 3 (NQ3) retail drink license.
(a) A nonquota type 3 (NQ3) retail drink license may be
issued to a private club in existence for longer than one (1) year prior to the license application.
(b) An NQ3 retail drink license issued to a private club shall authorize the licensee to exercise the privilege of an NQ2 retail drink licensee, at the designated premise if the general public is excluded.
(6) Nonquota type 4 (NQ4) retail malt beverage drink license.
(a) This license may be issued to the holder of a quota retail drink license, microbrewery license, small farm winery license or any other business wishing to sell malt beverages by the drink on the premises only.
(b) This license shall authorize the licensee to:
(1) Sell malt beverage at retail by the drink from only the licensed premises for consumption at the licensed premises only; and
(2) Purchase malt beverages only from a distributor.
(c) The holder of an NQ4 retail malt beverage drink license may also hold a nonquota retail malt beverage package license.
(d) A nonquota retail malt beverage drink license shall not be issued to any premises from which gasoline and lubricating oil are sold or from which the servicing and repair of motor vehicles is conducted, unless there is maintained in inventory on the premises for sale at retail no less than five thousand dollars ($5,000.00) of food, groceries, and related products valued at cost. For purposes of this division (A)(6)(d), the term “FOOD AND GROCERIES” has the meaning provided in KRS 243.280. This section shall not apply to any licensed premise that sells no fuel other than marine fuel.
(7) Sunday retail drink license. This license shall authorize the retail sale of distilled spirits and wine by the drink for consumption on the premises only during the times and hours permitted in § 113.08(J) herein.
(8) Special temporary license.
(a) A special temporary license may be issued to any regularly organized fair, exposition, racing association, or other party, when in the opinion of the Board a necessity therefor exists. The license shall authorize the licensee to exercise the privileges of a quota retail drink licensee and an NQ4 retail malt beverage drink licensee at designated premises for a specified and limited time, not to exceed thirty (30) days, and shall expire when the qualifying event ends. All restrictions and prohibitions applying to a distilled spirits and wine quota retail drink licensee or NQ4 retail malt beverage drink license shall apply also to a temporary licensee.
(b) A nonprofit organization holding an NQ4 retail malt
beverage drink license may be issued a special temporary license to sell distilled spirits and wine by the drink on the licensed premises for a specified and limited time, not to exceed ten (10) days. The temporary license may be issued in conjunction with any public or private event, including but not limited to weddings, receptions, reunions, or similar occasions.
(c) The holder of a special temporary license may sell, serve, and deliver distilled spirits, wine or malt beverages by the drink for consumption at the event only.
(9) Caterer’s license.
(a) A caterer’s license may be issued as a supplementary license to a caterer that holds a quota retail package license, a quota retail drink license, an NQ1 license or an NQ2 license.
(b) A caterer’s license may be issued a primary license for the premise that serves as the caterer’s commissary and designated banquet hall. No primary caterer’s license shall be issued to a premise that operates as a restaurant. The alcoholic beverage stock of the caterer shall be kept under lock and key at the licensed premises during the time that the alcoholic beverages are not being used in conjunction with a catered function.
(c) The caterer’s license shall authorize the caterer to:
1. Purchase and store alcoholic beverages in the manner prescribed in KRS 243.250, 243.280 and 244.310.
2. Transport, sell, serve, and deliver malt beverages by the drink at locations away from the licensed premises or at the caterer’s designated banquet hall in conjunction with the catering of food and malt beverages for a customer and his or her guests if the catering of food at the catered event are at least thirty-five percent (35%) of the gross receipts from the catering of both food and malt beverages.
3. Transport, sell, serve, and deliver distilled spirits and wine by the drink at locations away from the licensed premises or at the caterer’s designated banquet hall in conjunction with the catering of food and alcoholic beverages for a customer and his or her guests if the receipts from the catering of food at any catered event are at least fifty percent (50%) of the gross receipts from the catering of both food and alcoholic beverages.
4. Receive and fill telephone orders for alcoholic beverages in conjunction with the ordering of food for a catered event: and
5. Receive payment for alcoholic beverages served at a catered event on a by-the-drink or by-the-event basis. The caterer may bill the host for by-the-function sales of alcoholic beverages in the usual course of the caterer’s business.
(d) A caterer licensee shall not cater alcoholic beverages at locations for which retail alcoholic beverage license or special temporary licenses have been issued. A caterer licensee may caterer a fundraising event for which a special temporary distilled spirits and wine auction license has been issued under KRS 243.036 and § 113.03(A)(12).
(e) The location at which alcoholic beverages are sold, served and delivered by a caterer, pursuant to this section, shall not constitute a public place for the purpose of KRS Chapter 222. If the location is a multi-unit structure, only the unit or units at which the function being catered is held shall be excluded from the public place provisions of KRS Chapter 222.
(f) The caterer licensee shall post a copy of his or her caterer’s license at the location of the function for which alcoholic beverages are catered.
(g) The name and license numbers of the caterer shall be painted or securely attached, in a contrasting color, in a form prescribed by the Board of promulgation of an administrative regulation, upon all vehicles used by the caterer to transport alcoholic beverages.
(h) All restrictions and prohibitions applying to a distilled spirits and wine quota retail drink licensee not inconsistent with this section shall apply to the caterer.
(i) The caterer licensee shall maintain records as set forth in KRS 244.150 and in administrative regulations promulgated by the Board.
(10) Microbrewery license.
(a) This license shall authorize the licensee to perform the following functions:
1. Engage in the business of a brewer under the terms and conditions of KRS 243.150, provided that production of malt beverages at such microbrewery shall not exceed twenty-five thousand (25,000) barrels in one (1) year;
2. Serve on the premises complimentary samples of malt beverages produced by such microbrewery in amounts not to exceed sixteen (16) ounces per patron, provided the microbrewery is located in wet territory;
3. Sell malt beverages produced on the premises of the microbrewery to licensed distributors.
4. Sell malt beverages produced on the premises of the microbrewery for on- and off-premises purposes in accordance with division (A)(10)(c)2. and 3. of this section.
(b) A microbrewery license shall not be deemed to be incompatible with any other license except for a distributor’s license under the provision of KRS 243.180.
(c) In accordance with the provisions of this section, a microbrewery license holder may:
1. Hold retail drink and package licenses both on and off the premises of the microbrewery. The holder of a microbrewery license is exempt from the provisions of KRS 244.570 and 244.590 as applied to any retail licenses held by the microbrewery license holder, and from any other sections which would restrict the co-ownership of the microbrewery license and any retail licenses described in this section.
2. Sell malt beverages produced on the premise of the microbrewery for on-premises purposes without having to transfer physical possession of those malt beverages to a licensed distributor provided:
A. The microbrewery possesses a retail drink license for those premises;
B. The microbrewer has a written contract with a licensed distributor authorizing the distributor to purchase and distribute the microbrewery’s malt beverages to any other retailer; and
C. The microbrewery provides to the distributor a monthly report of the quantity of malt beverages produced at the microbrewer and sold at retail at the microbrewery under the provisions of its retail drink license. The report required under this division (A)(10)(c)2.C. shall:
(i) Be provided to the distributor on or before the tenth day of the month next succeeding the month in which the malt beverages were produced and sold at the microbrewery; and
(ii) Be provided on a form promulgated by the Board by administrative regulations. The information provided on the form shall be reported to the Department of Revenue at the time and in the manner reguired by that Department in accordance with its powers under KRS 131.130(3) and any administrative regulations promulgated thereunder.
(iii) Nothing in this division (A)(10)(c)2.C. shall require a distributor to verify the accuracy of the information provided by the microbrewery in the report; and
3. Sell malt beverages produced on the premises of the microbrewery for off-premises purposes without having to transfer physical possession of those malt beverages to a license distributor provided that:
A. The microbrewery possesses a retail package license for those premises;
B. The microbrewery has a written contract with a licensed distributor authorizing the distributor to purchase and distribute the microbrewery’s malt beverage to any other retailer; and
C. The microbrewery provides to the distributor a monthly report of the quantity of malt beverages produced at the microbrewery under the provisions of its retail package license. The report required under this division (A)(10)(c)3. shall:
(i) Be provided to the distributor on or before the tenth day of the month next succeeding the amount in which the malt beverages were produced and sold at the microbrewery; and
(ii) Be provided on a form promulgated by the Board by administrative regulation. The information provided on the form shall be reported to the Department of Revenue at the time and in the manner required by that Department in accordance with its power under KRS 131.130(3) and any administrative regulation promulgated thereunder.
(iii) Nothing in this division (A)(10)(c)3.C. shall require a distributor to verify the accuracy of the information provided by the microbrewery in its report; and
D. The provisions of division (A)(10)(c)2. and 3. shall apply only to malt beverages that are:
1. Produced by the microbrewery at its license premises; and
2. Offered for sale by the microbrewer at that same premise under the microbrewery’s retail drink or package license. All other malt beverages produced by the microbrewery which is offered for retail sale shall be sold and physically transferred to a licensed distributor in compliance with all other relevant provisions of KRS Chapters 241, 242, 243, and 244, and a licensed microbrewery shall not otherwise affect sales of malt beverages directly to retail customers except as provided in division (A)(10)(c)3.B. and C. of this section.
(d) This section does not exempt the holder of a microbrewery license from the provisions of KRS Chapters 241, 242, 243 and 244, nor from any rules of the board as established by administrative regulations, nor from regulation by the Board, except as expressly stated in this section. The provisions of this section shall not be deemed inconsistent with the provisions of KRS 244.602.
(11) Supplemental bar license.
(a) Except as where specifically authorized by statute, a retailer licensed to sell distilled spirits or wine by the drink shall only be permitted to sell or serve distilled spirits and wine by the drink at one (1) main bar, counter, or similar contrivance at the licensed premises.
(b) A retailer may have necessary service bars, if they are not located in any room in which the members or guests or patrons of the place are invited or permitted to come. No distilled spirits or wine shall be served at service bars.
(c) A supplemental bar license shall authorize the licensee to sell and serve distilled spirits and wine by the drink at retail from an additional location other than the main bar. A supplemental bar license is a nonquota license and shall not be transferable to other premises.
(d) A supplemental bar license shall not be issued unless:
1. The licensee applies to the State Distilled Spirits Director and meets all requirement for obtaining a supplemental bar license; and
2. The licensee pays a fee identical to the fee for the primary license authorizing retail distilled spirits and wine drink sales for each of up to five (5) supplemental bar license. There shall be no charge for each supplemental license issued in excess of five (5) to the same licensee at the same premises.
(e) A license authorizing retail malt beverage sales, by the drink or by the package, authorizes the licensee to sell and serve malt beverages at any location on the licensed premise without obtaining supplemental bar license.
(12) Special temporary distilled spirits and wine auction license.
(a) A special temporary distilled spirits and wine auction license may be issued to a charitable organization, upon the payment of the fee set forth in KRS 243.030 and upon satisfaction of the requirements prescribed by administrative regulation promulgated by the Department.
(b) A special temporary distilled spirits and wine auction license shall authorize the charitable organization to:
(1) Purchase, transport, receive, possess, store, sell, and deliver distilled spirits and wine to be sold at auction in the manner prescribed by administrative regulation promulgated by the Department;
(2) Obtain distilled spirits and wine from distillers, rectifiers, wineries, wholesalers, distributors, retailers, or any other person, by gift or donation, for the purpose of charity auctions in the manner prescribed by administrative regulation promulgated by the Department; and
(3) Receive payment for distilled spirits and wine sold at auctions in the manner prescribed by administrative regulation promulgated by the Department.
(c) Each distilled spirits and wine auction conducted by a charitable organization shall be subject to all restrictions and limitations contained in KRS Chapters 241 to 244 and the administrative regulations issued under those chapters and shall be authorized only on the days and only during the hours that the sale of alcoholic beverages are otherwise authorized in the county or municipality.
(d) The location at which the distilled spirits and wine are auctioned under this section shall not constitute a public place for the purpose of KRS Chapter 222. Distilled spirits and wine auctions may be conducted on licensed or unlicensed premises. The charitable organization possessing a special temporary distilled spirits and wine auction license shall post a copy of the license at the location of the auction. During this period not more than one (1) auction shall be held.
(e) A special temporary distilled spirits and wine auction license shall not be issued for any period longer than thirty (30) days. During this period not more than one (1) auction shall be held.
(f) Notwithstanding any other provision of KRS Chapters 241 to 244, a distiller, rectifier, winery, wholesaler, distributor, or retailer may donate, give away, or deliver any of its products to a charitable organization possessing a special temporary distilled spirits and wine auction license under this section.
(g) All restrictions and prohibitions applying to a distilled spirits and wine retail package and distilled spirits and wine by the drink license, not inconsistent with this section, shall apply to a special temporary distilled spirits and wine auction license.
(13) Distributor’s license.
(a) A distributor’s license shall authorize the licensee to:
1. Purchase malt beverages from Kentucky breweries or from out-of-state breweries or distributors licensed to do business by the state in which they are located;
2. Import a non-United States brand malt beverage from an importer or wholesaler registered with the Kentucky Department of Revenue;
3. Sell his or her products to the holder of a special nonbeverage alcohol license: or
4. Store malt beverages and to sell them only, from the licensed premises, to other distributors, to licensed retailers, to any of its employees for home consumption, and to charitable or fraternal organizations holding group meetings, picnics, or outings.
(b) A distributor shall transport malt beverages only by a vehicle owned, rented, or leased and operated by the distributor, which has affixed to its sides at all times a sign of form and size prescribed by the State Board, containing among other things the name and license number of the licensee. No distilled spirits or wine shall be transported on the same truck or vehicle with malt beverages, except by a common carrier, unless the owner of such truck or vehicle holds a wholesaler’s license.
(c) A distributor’s license must be obtained for each separate warehouse, agent, distributor, broker, jobber, or place of business from which orders are received or beverages are distributed unless it is a licensed brewery.
(14) Wholesaler’s license.
(a) A licensed wholesaler may purchase, receive, store, or possess distilled spirits and wine to sell at wholesale, from the licensed premises only, and to transport from the licensed premises for himself or herself only any alcoholic beverage that the wholesaler’s license authorizes the licensee to sell. The wholesaler may transport:
1. Beverages in the manner provided for manufacturers in KRS 243.120; and
2. Distilled spirits and wine from a manufacturer’s warehouse or from another licensed wholesaler’s premises to his or her licensed premises, if consumer’s spirits stamps have been properly affixed to the spirits or wine that the wholesaler transports.
(b) The holder of a wholesaler’s license may sell his or her products to the holder of a special nonbeverage alcohol license.
(B) Number of licenses. The licenses to be issued under the classifications set out above shall not be restricted except as follows:
(1) Quota retail package liquor license. One (1) license for every two thousand three hundred (2,300) city residents, pursuant to 804 KAR 9:040.
(2) Quota retail drink license. One (1) license for every two thousand five hundred (2,500) city residents, pursuant to 804 KAR 9:050.
(Ord. 5:2000, passed 5-8-00; Am. Ord. 20:2000, passed 12-11-00; Am. Ord. 11:2001, passed 5-14-01; Am. Ord. 01:2005, passed 2-14-05; Am. Ord. 12:2006, passed 6-12-06; Am. Ord. 16:2011, passed 5-23-11; Am. Ord. 28:2013, passed 11-11-13; Am. Ord. 06:2014, passed 5-12-14; Am. Ord. 15:2014, passed 9-8-14; Am. Ord. 02:2015, passed 2-9-15)