Kentucky Administrative Regulations › Title 804 - PUBLIC PROTECTION CABINET - DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL › Chapter 4 - Licensing › Section 804 KAR 4:110 - Dormant license renewal

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				243.020,
				243.030,
				243.040,
				243.090,
				243.430
NECESSITY, FUNCTION, AND CONFORMITY: Since Kentucky operates
				under a quota system for the number of distilled spirits licenses available,
				and since many quotas are filled and no new licenses are available, it would be
				unfair to those desiring a license to be precluded from obtaining a license
				because some licenses were issued but not being used by the licensee.
				Therefore, it is necessary that a licensee actually conduct the business
				authorized by the license or else the license will become dormant. Realizing
				that a licensee, like any other business, may have his business interrupted by
				situations not under his control, various exceptions to the dormancy rule have
				been included in the administrative regulation.
Section 1.
(1) Any wholesale, distributor, or retail
			 license under which no business is transacted during a period of ninety (90)
			 days shall be revoked by the Alcoholic Beverage Control Board or
			 surrendered.
(2) The provisions of
			 subsection (1) of this section shall not apply to any licensee who is unable to
			 continue in business at the licensed premises due to an act of God, casualty,
			 the acquisition of the premises by any federal, state, city or other
			 governmental agency under power of eminent domain, acquisition by any private
			 corporation through its power of eminent domain granted to it, whether such
			 acquisition is voluntary or involuntary, loss of lease through failure of
			 landlord to renew existing lease, court action or other verifiable business
			 reason. The licensee shall apply to place the license in dormancy by furnishing
			 to the Department of Alcoholic Beverage Control a verified statement setting
			 forth the fact that the licensee is unable to continue in business at his
			 licensed premises, for any of the reasons set forth herein prior to the
			 discontinuance of business. The license shall continue to remain in effect
			 during the license period or until it is transferred to another premises or
			 person. No license shall be considered valid unless business is conducted
			 thereunder within twelve (12) months from date of first notice to the board.
			 The board may extend this dormancy period for up to an additional twelve (12)
			 months for good cause shown.
(3)
			 Licenses placed in dormancy shall be renewed and renewal fees paid in the same
			 manner as active licenses.
(4)
(a) If negotiations for a buy-out of a
			 license privilege issued under
			 KRS
			 243.030 or
			 243.040(3)
			 may extend thirty (30) days beyond the date of expiration of the seller's
			 license or licenses, then the distilled spirits administrator or the malt
			 beverage administrator shall be notified in writing of the transaction or
			 negotiations not less than ten (10) days prior to the expiration date of the
			 license or licenses involved. The appropriate administrator may then extend the
			 time for filing a renewal or application for the license or licenses for a
			 reasonable length of time not to exceed sixty (60) days.
(b) If a buy-out of an existing license
			 privilege under
			 KRS
			 243.030 or
			 243.040(3)
			 extends over the renewal period and the license or licenses have not been
			 renewed by the seller, the purchaser shall pay the annual license fee for the
			 whole fiscal year or from the expiration date of the license privilege sought
			 to be purchased, whichever is greater.
(c) If a license privilege under
			 KRS
			 243.030 or
			 243.040(3)
			 qualifies under Section 2 of this administrative regulation, the purchaser of
			 the privilege may place the license in dormancy in the manner provided by this
			 administrative regulation.