§ 111.015 CHANGE IN PERSONNEL.
   (A)   The occurrence of any one or more of the following events shall be deemed to constitute a change in ownership of licensed businesses for which a new license shall be required:
      (1)   With respect to any licensee that is a corporation, the replacement or addition of any shareholder owning directly or indirectly (including ownership by members of the same household) 20% or more of the outstanding share of any class of the capital stock of said corporation; provided that any sale or exchange of stock which results in a change in controlling ownership under the by-laws of the corporation shall be deemed to be a change of ownership hereunder regardless of the percentage of actual sale or exchange;
      (2)   With respect to any licensee that is a general partnership, the replacement or addition of any general partner;
      (3)   With respect to any licensee that is a limited partnership, the replacement or addition of any general partner or of any limited partner holding directly or indirectly (including ownership by members of the same household) 20% or more interest in the earnings of said limited partnership;
      (4)   The operation of a licensed business by an unlicensed individual or corporation under a management agreement which permits such unlicensed individual or corporation to control and direct the operation of the business, to retain all or a majority or the profits derived from such business, and to utilize the privileges of the liquor license issued to another for such business for any period in excess of 90 days. A management agreement shall not be deemed to include a contract for employment between a licensee and an individual manager or managers, who operate the licensed business on behalf of or at the direction of the licensee.
   (B)   At least 90 days prior to any of the events described in paragraph (A) hereof as constituting a change of ownership, the licensee shall apply for a new license pursuant to the requirements of § 111.005 of this subchapter, and shall pay the required application fee in conjunction therewith. The Commissioner shall act promptly thereon; however, the licensee shall not conduct its business following any change of ownership as defined herein until a new license has been issued.
   (C)   The occurrence of any one or more of the following events shall constitute a change in ownership of licensed businesses for which a new license shall be required, but shall not be subject to the application requirements established in § 111.005 of this subchapter. Within five business days following any change described below, the licensee shall notify the Commissioner in writing describing the event in detail:
      (1)   With respect to any licensee that is a corporation, the replacement or addition of any officer or director of said corporation or any shareholder owning directly or indirectly (including ownership by members of the same household) more than 5% but less than 20% of the outstanding shares of any class of the capital stock of said corporation;
      (2)   With respect to any licensee that is a limited partnership, the replacement or addition of any limited partner holding directly or indirectly (including ownership by members of the same household) more than a 5% but less than a 20% interest in the earnings of said limited partnership.
   Failure to give the notice required shall constitute a violation of this subchapter subjecting the licensee to revocation or suspension of the license. No additional license fee shall be payable for a new license required by virtue of changes described in this paragraph, and so long as an application therefor is pending and not yet acted upon by the Commissioner, the applicant may continue to conduct its business and operations under the license in effect immediately prior to such changes.
   (D)   Within ten days of any change of liquor manager conducting business for the licensee, the licensee shall report such change to the Commissioner, in writing, and shall provide information concerning such liquor manager as required in § 111.005(A)(9) of this subchapter. A fee of $150 shall be paid in conjunction with any such change of manager.
   (E)   All new personnel shall meet all the standards of this subchapter and must otherwise qualify to hold a liquor license. All such changes in personnel shall be subject to review by the Commissioner, and if any new officer, shareholder, partner or liquor manager is ineligible for a license, the license shall terminate.
   (F)   A person convicted of a violation of the requirements established herein shall be subject to a fine of not less than $100 nor more than $750; provided, however, that nothing herein shall preclude the right of the Commissioner to suspend or revoke the license pursuant to the provisions of § 111.037 of this subchapter.
(Ord. 02-44, passed 11-26-02; Am. Ord. 07-43, passed 3-25-08)