(A) Personal Privilege: A license shall be purely a personal privilege, good for not to exceed one (1) year after issuance, unless sooner revoked as in this chapter provided, and shall not constitute property, nor shall it be subject to attachment, garnishment or execution, nor shall it be alienable or transferable, voluntarily or involuntarily, or subject to being otherwise encumbered or liened.
(B) No Vested Right: Nothing contained in this chapter or section shall create any vested or property right in any liquor license in any person whatsoever, nor shall it limit or restrict the right of the Village to at any time amend or repeal this chapter.
(C) Death Or Bankruptcy: A license shall cease upon the death, insolvency or bankruptcy of the licensee or, when issued to a partnership, the death of a partner of a licensee, and shall not descend by the laws of testate or intestate devolution, provided that executors or administrators of the estate of any deceased licensee or partner of a licensee, and the trustee of any insolvent or bankrupt licensee, when such estate consists in part of alcoholic liquor may, upon written notice to the Local Liquor Control Commissioner, continue the business of the sale of alcoholic liquor under the order of the appropriate court, and may exercise the privileges of the deceased or insolvent or bankrupt licensee after the death of decedent, or such insolvency, or bankruptcy until the expiration of such license, but not longer than six (6) months after the death, bankruptcy or insolvency of such licensee or partner of a licensee. If a corporation to whom a license has been issued is ordered into receivership or files for bankruptcy, the receiver or trustee may continue the operation of the business under the existing license under order of the appropriate court until the expiration of such license, but not longer than six (6) months after the date of appointment of a receiver or trustee, whichever comes first. At the time of expiration of the license or passage of six (6) months following death, bankruptcy or appointment of a receiver or trustee as specified in this subsection, the liquor license shall automatically terminate and the number of available licenses in that classification shall automatically and immediately be reduced by one (1).
(D) Changes In Ownership:
1. When the licensee is a partnership, limited liability company or a corporation whose stock is not publicly traded on a recognized stock exchange, the license shall terminate whenever fifty percent (50%) or more of the ownership interest therein changes from that shown on the original license application, except as provided for in this subsection. Prior to a transfer of fifty percent (50%) or more of the ownership, the partnership, limited liability company or corporation, through its officers/members/partners, shall submit a complete application and the required fees for the issuance of a new license, as provided herein, and said application is subject to approval by the Board of the Trustees and the Local Liquor Control Commissioner, in their sole discretion, and such approval is necessary for the new ownership to sell and/or serve alcoholic beverages. In the event that the transfer of ownership occurs prior to the approval of the application, the new corporate ownership shall be prohibited from selling and/or serving alcoholic beverages at the applied for location until the application is approved by the Board of Trustees and the Local Liquor Control Commissioner and all required fees for the liquor license have been paid to the Village.
2. When the licensee is a corporation whose stock is publicly traded on a recognized stock exchange, the license shall automatically terminate whenever fifty percent (50%) or more of the membership of the Board of Directors of the corporation changes from that shown on the original license application, or whenever one (1) person who was not shown as an owner of fifty percent (50%) or more of the ownership interest in the publicly traded corporation at the time of the original liquor license application, becomes an owner of a fifty percent (50%) or more ownership interest in the publicly traded corporation. In such event, the corporation, through its officers/Board of Directors, must make application for the issuance of a new license as provided in this chapter.
3. When the licensee is a partnership, limited liability company or corporation, no change in ownership from that shown on the original application involving the addition of a new partner or member of such partnership or limited liability company or a new shareholder who will own in the aggregate more than five percent (5%) of the stock of such corporation shall be effective until such proposed change in ownership has first been reported in writing to the Local Liquor Control Commissioner and the Commissioner finds that the proposed new partner(s) or shareholder(s) is/are not ineligible under the provisions of this chapter and so advises the licensee in writing. Any change in ownership without complying with the terms hereof shall constitute grounds for a fine and/or the suspension or revocation of the liquor license issued to such partnership or corporation.
4. When the licensee is a partnership, limited liability company or corporation whose stock is not publicly traded on a recognized stock exchange, no change in ownership from that shown on the original application involving the withdrawal of any partner, manager or shareholder shall be made without reporting such change in ownership in writing to the Local Liquor Control Commissioner within ten (10) days of any such change in ownership. Any such change in ownership made without complying with the terms hereof shall constitute grounds for a fine and/or the suspension or revocation of the liquor license issued to such partnership, limited liability company or corporation.
(E) Termination Upon Transfer: Upon the alienation, sale, transfer, assignment or donation of the business that underlies the license to any third party or person other than the licensee or as otherwise authorized by this section, the liquor license shall automatically terminate and the number of available licenses in that classification shall automatically and immediately be reduced by one. (Ord. 2773, 5-6-2011)