(A) No alcoholic beverage shall be sold in the city, except as authorized under KRS 242.185 as amended and substituted by KRS Chapter 243 et seq. and/or KRS 243.034 and this subchapter. Authorization under this subchapter shall be obtained only upon the city’s receipt and approval of an application in accordance with this subchapter, the city’s issuance of a license, the ABC’s receipt and approval of an application in accordance with applicable law and the ABC’s issuance of a license.
(B) Application submittal and review shall be conducted as follow:
(1) Application and fee.
(a) Persons requesting approval and license authorizing the sale of alcoholic beverages by the drink pursuant to KRS 242.185 as amended and substituted by KRS Chapter 243 et seq. and/or KRS 243.034 and this subchapter shall submit a completed application to be obtained from the office of Mayor. The office of Mayor shall determine the form of this application and the information required by it. That form and information shall be reasonably calculated to permit a reviewing officer to determine compliance with this subchapter. In any event, the city shall accept an application in the form approved and accepted by the Alcoholic Beverage Control (ABC). Any applicant utilizing the ABC form shall provide any additional information not otherwise required by the ABC form by supplemental attachment to the application.
(b) Applicants for a license under this subchapter shall pay a license fee of $1,200, pursuant to the provisions of KRS 243.070.
(c) In order to sell liquor by the drink on Sunday between the hours of 1:00 p.m. and 10:00 p.m. Sunday evening, the licensee must apply for and obtain from the city a limited Sunday drink license. The license fee for the limited Sunday drink licenses shall be $200 as authorized under KRS 243.070(1)(k).
(2) Supplemental information. An applicant currently operating a restaurant or dining facility of comparable size to that which is the subject of the application and one that offers the sale of alcoholic beverages by the drink shall supplement the required application. The required supplemental data shall include information related to its current operation, which reasonably demonstrates the likelihood that the applicant’s business in the city will yield income earned through the sale of food equal to or greater than 70% of its gross receipts. This supplement data shall include, but not necessarily be limited to, the following specific information:
(a) The population of the community in which it currently operates;
(b) Alcohol sales permitted in the community in which it currently operates; and
(c) The hours of operation, including any differentiation between the hours during which food and drinks are sold.
(3) Periodic information.
(a) Applicants to whom a license is issued authorizing the sale of alcoholic beverages by the drink pursuant to this subchapter shall provide periodic information demonstrating compliance with the continuing requirement that 70% of the applicant’s business income is earned from the sale of food.
(b) This documentation shall be provided on a schedule to be coordinated with the applicant’s quarterly tax filings. Regardless of the applicant’s filing schedule, the first of the applicant’s periodic information shall be submitted not later than six months after applicant commenced sale of alcoholic beverages pursuant to this subchapter.
(c) This information shall consist of a certificate from a certified public accountant familiar with the applicant’s pertinent business records. This certificate shall state:
I have conducted a limited scope audit according to accepted accounting principles of the pertinent records of
, licensee under Ordinance 747 , and certify that the licensee earned at least 70% of its gross receipts from the sale of food during the quarter ending . |
(d) This certificate shall include a brief description of the methodology utilized in the determination of the certified percentage.
(4) Administrating officer. The city officer responsible for administering this subchapter shall be the City Clerk or such city employee as the Mayor shall designate. All transactions required for compliance or enforcement of this subchapter shall be directed to or issued by the Mayor and/or the City Clerk. He or she shall review the applications along with supplemental and periodic information and issue licenses authorizing the sale of alcoholic beverages by the drink pursuant to this subchapter. The city’s administrating officer and employees with duties arising under this subchapter shall comply with KRS 241.180 and 241.190.
(5) Forms. All forms reasonably necessary for the implementation of this subchapter shall be provided by the Mayor’s office.
(6) Auditing authority.
(a) The Mayor and the city’s administrating officer is empowered to demand access to the pertinent business records of any applicant or licensee for the purpose of conducting an independent audit of those records to substantiate compliance with this subchapter.
(b) The Mayor and the city’s administrating officer may obtain such outside professional services as are reasonably necessary to conduct the audit. In the event the independent audit reveals noncompliance by the applicant or licensee, the cost of the audit shall be assessed to the licensee.
(Ord. 747, passed 3-3-2015; Ord. 783, passed 8-17-2023)