(A) General provision declaring economic hardship pursuant to KRS 243.072. Pursuant to KRS 243.072, the City Council has made, and hereby expresses, its determination that an economic hardship exists within the city, and that the sale of alcoholic beverages by the drink within the city can aid economic growth. Based upon this determination by the City Council, this section is adopted as a comprehensive means to regulate the safe of alcoholic beverages by the drink for consumption on the premises where sold, in accordance with the applicable provisions of state law.
(B) Types of licenses and required license fees. The city shall have the power and authority to issue the following types of licenses for the sale, manufacture and/or trafficking in alcoholic beverages, upon proper application and payment of the below prescribed annual fees. All license fees indicated are on a per annum basis, unless otherwise expressly indicated.
(1) Quota retail package license.
(a) Annual license fee: $630.
(b) This license shall authorize the licensee to sell distilled spirits and wine at retail by the package from the licensed premises only for consumption off the licensed premises only.
(c) The holder of quota retail package license may also obtain a nonquota retail malt beverage package license.
(2) Nonquota retail malt beverage package license (“NQ retail malt beverage package license”).
(a) Annual license fee: $200.
(b) This license shall authorize the licensee to sell malt beverages at retail by the package from the licensed premises only for consumption off the licensed premises only.
(c) The holder of a nonquota retail malt beverage package license may also obtain a quota retail package license.
(3) Nonquota type 4 retail malt beverage drink license (“NQ-4 retail malt beverage drink license”).
(a) Annual license fee: $200.
(b) This license shall authorize the licensee to sell malt beverages at retail by the drink from only the licensed premises for consumption at the licensed premises only.
(c) The holder of an NQ-4 retail malt beverage drink license may also hold a nonquota retail malt beverage package license.
(4) Nonquota type 2 retail drink license (“NQ-2 retail drink license”).
(a) Annual license fee: $630.
(b) A “nonquota type 2” or “NQ-2” retail drink license may be issued to:
(1) A hotel that:
a. Contains at least 50 sleeping units;
b. Contains dining facilities for at least 50 persons; and
c. Receives from its total food and beverage sales at least 50% of its gross receipts from the sale of food;
(2) A restaurant with a minimum seating for 50 consumers at tables.
(c) A qualifying hotel or restaurant holding an NQ-2 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 premises.
(d) The term “restaurant” as used in this section shall have the same meaning as currently provided at KRS 241.010(44), to wit: “a facility where the usual and customary business is the serving of meals to consumers, that has a bona fide kitchen facility, and that receives at least fifty per cent (50%) of its food and beverage receipts from the sale of food”.
(e) The term “hotel” as used in this section shall have the same meaning as currently provided at KRS 241.010(29), to wit: “a hotel, motel, or inn for accommodation of the traveling public, designed primarily to serve transient patrons”.
(f) An NQ-2 retail drink license shall not authorize the licensee to sell distilled spirits, wine or malt beverages by the package.
(g) The holder of an NQ-2 retail drink license shall comply with the requirements of KRS 243.250.
(h) The holder of an NQ-2 retail drink license shall purchase distilled spirits, wine or malt beverages only from licensed wholesalers or distributors.
(i) An NQ-2 retail drink license shall not be issued to any restaurant or any dining facility in a hotel, unless the applicant can demonstrate to the City ABC 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 50% of the total food and alcoholic beverage receipts of the restaurant or dining facility for the license period.
(5) Nonquota type 3 retail drink license (“NQ-3 retail drink license”).
(a) Annual license fee: $300.
(b) A “nonquota type 3” or “NQ-3” retail drink license may be issued to:
(1) A private club in existence for longer than one year prior to the license application; or
(2) A dining car.
(c) An NQ-3 retail drink license issued to a private club shall authorize the licensee to exercise the privileges of an NQ-2 retail drink licensee at the designated premises, if the general public is excluded.
(d) An NQ-3 retail drink license issued to a dining car shall authorize the licensee to exercise the privileges of an NQ-2 retail drink licensee, and shall also authorize the licensee to sell distilled spirits and wine by the package, only on the designated dining car identified in the NQ-3 license.
(e) The term “private club” as used in this section shall have the same meaning as currently provided at KRS 241.010(39), to wit: “a nonprofit social, fraternal, military, or political organization, club, or entity maintaining or operating a club room, club rooms, or premises from which the general public is excluded”.
(f) The term “dining car” as used in this section shall have the same meaning as currently provided at KRS 241.010(20), to wit: “a railroad passenger car that serves meals to consumers on any railroad or Pullman car company”.
(g) In order to assure that the general public is excluded from the designated premises of a private club NQ-3 retail drink licensee, the following guidelines must be met:
1. Each private club member shall be issued a membership card that can be readily produced while visiting the club;
2. Each private club member shall be limited to no more than two non-member guests at any club function or event; and
3. A written log shall be maintained of all non-member guests.
(6) Limited golf course license.
(a) Annual license fee: $630.
(b) A limited golf course license may be issued to an establishment that is a nine- or an 18-hole golf course that meets United States Golf Association criteria and is located within the city limits.
(c) A limited golf course license shall authorize the licensee to purchase, receive, possess, and sell distilled spirits, wine, and malt beverages at retail by the drink for consumption on the licensed premises. The license shall not authorize the licensee to sell distilled spirits, wine, and malt beverages by the package.
(7) Caterer’s license.
(a) Annual license fee: $800.
(b) A caterer’s license may be issued as a supplementary license to a caterer who holds a quota retail package license or an NQ-2 retail drink license.
(c) A caterer’s license may be issued as a primary license for the premises that serves as the caterer’s commissary and designated banquet hall. No primary caterer’s license shall be issued to a premises 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.
(d) The caterer’s license shall authorize the caterer to:
1. 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, in:
a. The city limits and all other wet territory, if the receipts from the catering of food at any catered event are at least 35% of the gross receipts from the catering of both food and malt beverages; or
b. Cities and counties established as moist territory under KRS 242.1244, if the receipts from the catering of food at any catered event are at least 70% of the gross receipts from the catering of both food and malt beverages.
2. 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, in:
a. The city and/or any other cities of the fourth class and counties containing cities of the fourth class established as wet or moist territory permitting distilled spirits and wine drink sales by ordinance under KRS 243.072, if the receipts from the catering of food at any catered event are at least 50% of the gross receipts from the catering of both food and alcoholic beverages;
b. Cities and counties established as moist territory under KRS 242.1244, if the receipts from the catering of food at any catered event are at least 70% of the gross receipts from the catering of both food and alcoholic beverages; or
c. All other wet territory in which the sale of distilled spirits and wine by the drink is authorized, if the receipts from the catering of food at any catered event are at least 35% of the gross receipts from the catering of both food and alcoholic beverages.
3. Receive and fill telephone orders for alcoholic beverages in conjunction with the ordering of food for a catered event; and
4. 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.
(e) A caterer licensee shall not cater alcoholic beverages at locations for which retail alcoholic beverage licenses or special temporary licenses have been issued. A caterer licensee may cater a fund-raising event for which a special temporary distilled spirits and wine auction license has been issued under KRS 243.036.
(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 number of the caterer shall be painted or securely attached, in a contrasting color, in a form prescribed by the State Alcoholic Beverage Control Board by 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 licensee.
(i) The caterer licensee shall maintain records as set forth in KRS 244.150 and in administrative regulations promulgated by the State Alcoholic Beverage Control Board.
(j) The caterer licensee shall submit a list of functions catered or to be catered, including location, host, date and time, upon request of the local ABC administrator.
(8) Special temporary license.
(a) License fee shall be $166.66 per event.
(b) A special temporary license may be issued to any regularly organized fair, exposition, racing association, or any other party, for the sale, service and delivery of wine and/or malt beverages by-the-drink for consumption at any approved and licensed special temporary event, such as fairs, sporting events, entertainment events or other public events as specifically approved by the State Alcoholic Beverage Control Board. The special temporary license issued pursuant to this division shall be issued for a specified and limited time, not to exceed 30 days, and shall expire when the qualifying event ends.
(c) A nonprofit organization holding an NQ-4 retail malt beverage drink license may be issued a special temporary license to sell wine by the drink on the licensed premises for a specified and limited time, not to exceed ten days. The special temporary license issued under this division may be issued in conjunction with any public or private event, including but not limited to, weddings, receptions, reunions, or similar occasions, as specifically approved by the State Alcoholic Beverage Control Board.
(9) Wholesaler’s distilled spirits and wine license.
(a) Annual license fee: $3,000.
(b) This license authorizes the licensed wholesaler to purchase, receive, store and 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, in accordance with Kentucky state law.
(10) Malt beverage distributor’s license.
(a) Annual license fee: $400.
(b) This license shall authorize the licensee to purchase, import, store, sell and otherwise distribute malt beverages, in accordance with applicable Kentucky state law.
(11) Distiller’s license.
(a) Annual license fee: $500.
(b) This license shall authorize the licensee to engage in the business of a distiller at the premises specifically designated in the license, and to maintain warehouses, and to transport for himself or herself only any alcoholic beverage that he or she is authorized under the license to manufacture or sell, in accordance with applicable Kentucky state law.
(12) Rectifier’s license.
(a) Annual license fee: $3,000.
(b) This license shall authorize the licensee to engage in the business of a rectifier at the premises specifically designated in the license, and to maintain warehouses, and to transport for himself or herself only any alcoholic beverage that he or she is authorized under the license to manufacture or sell, in accordance with applicable Kentucky state law.
(13) Brewer’s license.
(a) Annual license fee: $500.
(b) This license shall authorize the licensee to engage in the business of a brewer at the premises specifically designated in the license, and to transport for himself or herself only any malt beverages that he or she is authorized by his or her license to manufacture or sell, but he or she shall transport any malt beverages in accordance with the requirements provided by KRS 243.120 for distillers, all in accordance with the provisions of applicable Kentucky state law.
(14) Microbrewery license.
(a) Annual license fee: $500.
(b) This license shall authorize the licensee to perform all functions and engage in all activities specifically permitted for a microbrewery in accordance with applicable Kentucky state law.
(Ord. 2009-006, passed 7-6-09; Am. Ord. 2013-003, passed 12-2-13; Am. Ord. 2014-004, passed 8-12-14; Am. Ord. 2017-006, passed 6-14-17)