(A) Advertisement. Before an application for a license shall be considered, the applicant must publish a notice of its intent to apply for an alcoholic beverage license in the newspaper used by the city for legal notices under KRS 424.120. The notice shall include the following:
(1) The advertisement shall state the name and address of the applicant and the name and address of each principal owner, partner, member, officer, and director if the applicant is a partnership, limited partnership, limited liability company, corporation, governmental agency, or other business entity recognized by law. All advertisements shall state the location of the proposed premises for which the license is sought, and the type of business, and type of license for which application is made.
(2) The applicant shall attach to the application a newspaper clipping of the advertisement.
(B) Form of application.
(1) All licenses granted under this chapter shall be approved by the City ABC Administrator. Applications for the issuance of new licenses and for renewals of existing licenses shall be in writing and upon the forms provided by the Kentucky ABC Board and/or the city, both of which may be amended and supplemented from time to time by each respective agency.
(2) The application shall be verified and shall set forth in detail such information concerning the applicant and the premises for which the license is sought, as required by the Kentucky Revised Statutes, the State Department, and the city, including as follows:
(a) Name and address;
(b) Nature of interest;
(c) Whether or not a citizen of the United States;
(d) Date of birth;
(e) Date of residence was established in Kentucky if a resident of Kentucky.
(f) Whether or not he or she has any interest in any other license or LLC, corporation, partnership or other business organization holding a license under this subchapter;
(g) Extent of stock or company ownership;
(h) Whether or not he or she has any interest in any license or LLC, corporation, partnership or other business organization holding a license in any other state or province.
(3) Each application shall be accompanied by a certified check, cashier check, or money order for the amount of the license fee, less the $50 application fee.
(4) In addition to the above specified information, the applicant shall file, with the application, responses to any additional questions as may be posed or prescribed by the City ABC Administrator. The City Council has adopted a statement of guidelines and priorities for the issuance of licenses within this subchapter to determine the extent to which applications may further, or impede, the objectives of those guidelines. Therefore, in addition to the information contained in the application, the City ABC Administrator may require such other information as the Administrator may, in his or her discretion, deem desirable, reasonable, or appropriate to the consideration of the application.
(C) Other conditions. In addition to any other inquiries, conditions or considerations required or permitted by law:
(1) The City ABC Administrator shall not grant any alcoholic beverage license or approve a renewal of a license until the applicant and his or her place of business shall have been approved by a licensed building inspector, and any and all other inspections required by the Kentucky Building Code or other applicable law;
(2) No license to sell alcoholic or malt beverages may be granted or renewed to any person who is delinquent in the payment of any property taxes, both real and personal, any other taxes due to the city, fees of any type, or charges due to any department of the city at the time of issuing the license, nor may any license be granted or renewed to sell upon any premises or property, owned and occupied by the licensee upon which there are any of the above delinquent payments due and owing to the city. Further, if a licensee becomes delinquent in the payment of any of the above at any time during the license period, the license to sell alcoholic or malt beverages may be subject to revocation or suspension.
(3) No person, whether applicant for license, or a licensee, shall in any manner attempt to bribe, threaten, unduly influence or intimidate the City ABC Administrator, or any member of the city’s staff, or any state ABC Administrator or staff, in any matter in which an application or proposed application for license, or procedure for revocation or suspension is pending before such officer. This division is not intended to stifle expressions of opinion; however, it is intended to make clear that the ABC Administrators are public officials charged with the administration and enforcement of the law, both local and state. Any person applying for a license, or contesting the revocation or suspension of a license, who engages in attempted bribes, threats, attempted undue influence or intimidation of a city or state ABC Administrator or staff shall be disqualified from receiving or retaining a license, in addition to other penalties as provided by law. The procedures for appeals shall apply to disqualifications, revocations or suspensions under this subchapter. Nothing in this subchapter shall be interpreted to prohibit monetary settlements in lieu of revocation or suspension of license after a final order or revocation or suspension, where this subchapter and applicable statutes allow for such payments in settlement.
(D) Denial of licenses.
(1) The City ABC Administrator may deny a city license for any of the following reasons:
(a) Causes for refusal to issue or renew a license and for suspension or revocation of a city license shall be the same as provided for state licenses according to KRS 243.450, 243.490 and 243.500, as well as violation of any city ordinance regarding alcohol beverage licensing, sales or the administration thereof.
(b) If the applicant has done any act for which a revocation of license would be authorized under local, state, or federal law; or
(c) If the applicant has made any false material statement in his or her application.
(2) An applicant who has been refused a license by the City ABC Administrator may appeal the refusal to the state Board pursuant to division (K) below of this section.
(E) Form of license. All city licenses shall be in such form as may be provided by the ABC Administrator, but at the least shall contain:
(1) The name and address of the licensee;
(2) The number of the license;
(3) The type of license;
(4) A description by street and number, or otherwise, of the licensed premises;
(5) The expiration date of the license;
(6) A statement in substance that the license shall not be a property or vested right and that it may be revoked at any time pursuant to law.
(F) Change of information.
(1) If after a license to individuals or to a sole proprietor has been issued, there is a change in any fact required to be set forth in the application, a verified amendment in writing giving notice of the change shall be filed with the City ABC Administrator with ten days of the change.
(2) Since a number of licenses issued by the city are in the name of corporations or other business organizations, it is necessary that ownership changes in such organizations be reported to the City ABC Administrator. The City ABC Administrator can, therefore, investigate the person to whom the ownership or management is transferred in order to ascertain whether that person is precluded by statute from holding an interest in an alcoholic beverage license.
(3) As used with regard to a partnership, corporation, LLC or other business organization herein, the word “change” is construed to include any change in managers, partners or LLC members, directors or officers of the corporation, or change in ownership or stock whereby any person secures 10% of the outstanding ownership or stock. Transfer of more than 10% of the total ownership or stock shall require a new license.
(4) The following information shall be required concerning any new manager, partner or LLC member, new director, officer, or person securing any interest in alcoholic beverage license:
(a) Name and address;
(b) Nature of interest;
(c) Whether or not a citizen of the United States;
(d) Date of birth;
(e) Date residence was established in Kentucky, if a resident of Kentucky. If a resident, indicate when residence was established;
(f) Whether or not he or she has any interest in any other license or in any LLC, corporation, partnership or other business organization holding a license under this act;
(g) Extent of stock or company ownership;
(h) Whether or not he or she has any interest in any license or in any LLC, corporation, partnership or other business organization holding a license in any other state or province.
(5) This information shall be filed with the City ABC Administrator as a verified amendment of the application pursuant to which the license was granted. Filing shall be made within ten days of any change of required information.
(G) Renewal of license.
(1) Every year, except in the case of the temporary licenses, each licensee shall renew its license. All renewal licenses must be on file with the City ABC Administrator no less than 30 days prior to the expiration of the license for the preceding license period or the same shall be canceled, except where the licensee is unable to continue in business at the same premises licensed during the preceding license period as a result of construction, act of God, casualty, death, the acquisition or threatened acquisition of the premises by any federal, state, city or other governmental agency or private organization possessing power of eminent domain, whether such acquisition is voluntary or involuntary, or loss of lease through failure of landlord to renew exiting lease; provided that said licensee shall file a written verified statement no less than 20 days from the expiration date of the license, setting forth these facts, and the City ABC Administrator is hereby authorized to extend the time for filing of a renewal of such license for a reasonable length of time within the sound discretion of the City ABC Administrator; provided, however, such licensee shall pay a license fee from the expiration date of the former license or licenses. Said license fee shall not by payable until application is made for the transfer of said license to a new location.
(2) The renewal by the City ABC Administrator of the license shall not be construed to be a waiver or acceptance of any violation which occurred prior to such renewal and shall not prevent subsequent proceedings against the licensee.
(H) Lost or destroyed license. When a license shall be lost or destroyed without fault on the part of the licensee or his or her agent or employee, a duplicate in lieu of the original license shall be issued by the City ABC Administrator after the Administrator shall have been satisfied as to the facts; provided, however, that the applicant for said duplicate license shall pay a fee of $10 for the duplicate license.
(I) Revocation or suspension.
(1) Any license may be revoked or suspended by the City ABC Administrator if the licensee shall have violated any of other provisions of KRS Ch. 241 to 244, or any rule or regulation cf the state Board, or of the Kentucky Department of Revenue, relating to the regulation of the manufacture, sale, and transportation, or taxation, of alcoholic beverages or if such licensee shall have violated or shall violate any act of Congress or any rule or regulation of any federal board, agency or commission, or this subchapter now, heretofore, or hereafter in effect relating to the regulation of the manufacture, sale, and transportation, or taxation, of intoxicating liquors, or any rules or regulations of the city heretofore in existence or authorized by the terms of KRS Ch. 241 to 244 to be created, irrespective of whether the licensee knew of or permitted the violation or whether the violation was committed is disobedience of his or her instructions.
(2) A license may be revoked for any of the reasons for which the City ABC Administrator would have been required to refuse a license if the facts had been known.
(3) In addition to the foregoing stated causes, any license may be revoked or suspended for the following causes:
(a) Conviction of the licensee or the licensee's agent, servant, or employee for selling any illegal alcoholic beverages on the licensed premises.
(b) Making any false, material statements in an application or renewal application for a license or supplemental license.
(c) Conviction of the licensee or any of the licensee's agents, servants, or employees of:
1. Two violations of the terms and provisions of KRS Chapters 241 to 244, or any act regulating the manufacture, sale, and transportation of alcoholic beverages within two consecutive years;
2. Two misdemeanors directly or indirectly attributable to the use of alcoholic beverages within two consecutive years; or
3. Any felony.
(d) Failure or default of a licensee to pay an excise tax or any part of the tax or any penalties imposed by or under the provisions of any statutes, ordinances, or Acts of Congress relative to taxation, or for a violation of any related administrative regulations promulgated by the Department of Revenue.
(e) Revocation of any state license provided in KRS 243.030, 243.040, or permit granted ruder any Act of Congress relative to the regulation of the manufacture, sale, and transportation of alcoholic beverages.
(f) Setting up, conducting, operating, or keeping, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility for betting or transmitting bets on horse races; or permitting to be set up, conducted, operated, kept, or engaged in, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. This division shall not apply to:
1. The sale of lottery tickets sold under the provisions of KRS Chapter 154A;
2. The operation of a pari-mutuel system for betting, where authorized by law;
3. The conduct of charitable gaming by a charitable organization licensed or permitted under KRS Chapter 238; or
4. Special temporary raffles of alcoholic beverages under KRS 243.036.
(g) Conviction of the licensee, the licensee's agents, servants, or employees for:
1. The trafficking or possession upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs;
2. Knowingly permitting the trafficking or possession by patrons upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs; or
3. Knowingly receiving stolen property upon the licensed premises.
(h) Failure to comply with the terms of the City Administrator.
(J) Proceedings for revocation or suspension of license.
(1) Upon the verified complaint of any person, or on the initiative of any law enforcement officer, or of the City ABC Administrator, the City ABC Administrator may institute proceedings to revoke or suspend any license granted under this subchapter. A license may be revoked or suspended only after the licensee shall have been given written notice, by certified or registered mail, of the proposed revocation, including notice of the reasons for such proposed action. The licensee shall be given opportunity to be heard in opposition to the proposed revocation or suspension. The notice of proposed action shall advise the licensee of the date, time and place of the hearing. Notice shall be sufficient if mailed to the licensee at the address shown in the last application for a license or in the last statement supplemental to or in amendment of the application, whether or not the mailing is receipted for or claimed.
(2) The specific procedures to be followed in hearings on actions for revocation or suspension shall provide constitutional due process rights to the City ABC license holder.
(3) A decision of the City ABC Administrator revoking or suspending a license may be appealed to Board as provided in KRS 241.200 and KRS 243.550.
(4) Within three days after any order of revocation or suspension of a license becomes final, notice of revocation shall be given to the licensee and to the owner of the licensed premises. A notice mailed to the licensee and to the owner of the licensed premises at the address shown in the last application for a license or in the last statement supplemental to the application shall be deemed sufficient compliance with this section. The licensee shall at once surrender his or her license to the City ABC Administrator. If the revoked or suspended license is not forthwith surrendered by the licensee, the Chief of Police, at the request of the City ABC Administrator, shall immediately cause one of his or her officers to take physical possession of the license and return it to the City ABC Administrator.
(5) When a license has been revoked or suspended, the former licensee may, with prior approval of the City ABC Administrator, dispose of and transfer his or her stock of alcoholic beverages to an appropriate entity.
(6) An appeal from the decision of the City ABC Administrator revoking or suspending a license shall be to the state Board pursuant to division (K) below. The timely filing of an appeal shall stay further proceedings for revocation.
(7) If a license is revoked or suspended by an order of the City ABC Administrator, and the decision is not appealed, the licensee shall suspend all operations authorized under his or her license upon finality and effectiveness of the order. Upon finality of any final order of the state Board sustaining or ordering revocation or suspension on appeal, the licensee shall at once suspend all operations authorized under the suspended or revoked license.
(K) Appeals.
(1) Appeals from the orders of the City ABC Administrator may be taken to the state ABC Board by filing a notice of appeal with the Board within 30 days after the decision or order of the County ABC Administrator is mailed or delivered by personal service. The notice of appeal shall specify the county administrator by name and shall identify the decision or order, or part of the decision or order, being appealed. The notice shall contain a certificate that a copy of the notice has been served on the City ABC Administrator and shall be accompanied by a copy of the decision or order being appealed. Matters
at issue shall be heard by the board as upon an original proceeding. Appeals from decisions or orders of the county administrator shall be governed by KRS Chapter 13B.
(2) As provided by law no appealed City ABC Administrator order or decision, or resulting state Board order, shall become effective or final until all Board appeals, court appeals, or appeal times shall have been exhausted. When a Board order becomes final and effective, the City ABC Administrator shall enter such orders and take such action as required by the final order of the Board.
(L) Transfer or assignment. No license issued under this chapter shall be transferred or assigned either as to licensee or location except with prior approval of the City ABC Administrator and not then until a payment of $100 shall be made to the City ABC Administrator.
(M) Review of license; books, records and reports.
(1) Applicants to whom a license is issued pursuant to this chapter shall provide periodic information demonstrating compliance with the conditions of any license, such as, but not limited to, the continuing requirement that a minimum percentage of the applicant's business income is earned from the sale of food. This documentation shall be provided on a schedule to be coordinated with the applicant's quarterly regulatory fee filings. The city shall provide the form schedule to the licensee. The licensee's acceptance of a license to manufacture or traffic in alcoholic beverages shall constitute consent to the filing of the quarterly report. In the case of caterer filing, the quarterly report shall identity each catered event by type of event, date and address of the event, and shall provide a per event breakdown of sales and the ratio of food sales to alcohol sales during the reporting period. This requirement for filing of reports notwithstanding, the city may at any time come upon the premises of any licensee and examine the books and records to determine whether the licensee is in compliance with all parts of this chapter. In the event the conditions of any license requirement are not met during any particular quarter, the City ABC Administrator shall have discretion in determining whether revocation is appropriate or whether the licensee may be allowed a reasonable period of time to reach compliance. If a good faith effort is demonstrated by the licensee, the City ABC Administrator may apply an accounting period of at least one year in determining whether or not the food sale percentage requirement has been met.
(2) Every licensee under this subchapter shall keep and maintain, upon the licensed premises, adequate books and records of all transactions involved in the sale of alcoholic beverages in the same manner required by the rules and regulations of the ABC Board. Such books and records shall be available at all reasonable times for inspection by the City ABC Administrator and such city employees who may assist the City ABC Administrator in his or her review.
(N) Dormancy.
(1) It is necessary that a licensee actually conduct the business authorized by such a license or else the license will be declared dormant and become null and void after 90 days. Such is the intent of this section. Realizing that a licensee, like other business, may have his or her business interrupted by situations not under his or her control, various exceptions to the dormancy rule have been included in this section.
(2) Any license under which no business is transacted during a period of 90 days shall be deemed inactive and, unless the conditions set forth in division (3) below are proved to the satisfaction of the City ABC Administrator, the license shall be surrendered to the City ABC Administrator. If the license is not voluntarily surrendered, it shall be revoked by the City ABC Administrator.
(3) The provisions of division (2) above shall not apply to any licensee who is unable to continue in business at the premises for which a license is issued due to construction, an act of God, casualty, death, the acquisition of the premises by any federal, state, city or other governmental agency under power of eminent domain, whether acquisition is voluntary or involuntary, or loss of lease through failure of landlord to renew existing lease. Prior to the expiration of 90 days of inactivity, such licensee shall furnish to the City ABC Administrator a verified statement setting forth the fact that the licensee is unable to continue in business, for any of the specific reasons set forth herein, and the City ABC Administrator may grant an extension of the dormancy with the license continuing to remain in effect during the license period or until same is transferred to another premises, notwithstanding the fact that no business is transacted during said period; provided, however, no such license shall be considered valid unless business is conducted thereunder within 12 months from the date of notice to the City ABC Administrator. Such extension may not extend beyond the renewal date but may be for such times as the City ABC Administrator deems appropriate in exercise of his or her sound discretion.
(Ord. 2023-04, passed 9-11-2023) Penalty, see § 119.99