Transcript ABC Adiministrators - City of Danville, KY

KY ABC WORKSHOP
Licensing and Regulation Discussion in anticipation of City
of Danville Local option Election
March 2, 2010
The Alcoholic Beverage
Control Board Members:
Tony Dehner, Chairman
Danny Reed, Distilled Spirits Administrator
Stephanie Stumbo, Malt Beverage Administrator
The Duties of the ABC Board
The Board administers statutes relating to alcohol
sales and regulates traffic in alcoholic beverages.
Distilled spirits unit administers laws relating to
traffic in distilled spirits and wine.
Malt beverage unit administers laws relating to traffic
in malt beverages.
Functions of the ABC Board
Promulgate regulations relative to licensing,
supervision and control of use, manufacture, sale,
transportation, storage, advertising, and trafficking of
alcoholic beverages.
Limit the number of license to be issued.
Hold hearings due to infractions of alcohol laws and
regulations.
Conduct hearings and appeals and render final orders,
levee fines and disciplinary actions.
Functions of Board, cont.
Destroy evidence after all hearings are conducted.
Suspend, revoke, or cancel any ABC license.
Prohibit issuance of a license for a premise in
violation of Kentucky Statute.
Suspend a license for any cause for which the board
is authorized.
City ABC Administrators
Cities of 1st, 2nd, 3rd, and 4th class cities in
which alcoholic beverages are permitted shall
have city ABC administrators.
City ABC Administrators in
2nd, 3rd, and 4th Class Cities
Appointed by City Manager if there is one.
If not, the appointment shall be made by the Mayor.
Administrator has:
– Full police powers of peace officers
– May inspect any premise where alcohol beverages are
manufactured, sold, stored, trafficked in without obtaining
a search warrant.
Election Questions
Ballot Question The ballot question is set by
KRS 242.125 (2). It will read “Are you in
favor of the sale of alcoholic beverages in
Danville?”
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Election Questions, cont.
The ballot question is not perceived to be misleading
because it is different from the question the voters were
asked to decide in the City’s KRS 242.185 (6) election
which was “Are you in favor of the sale of alcoholic
beverages by the drink in Danville at restaurants and
dinning facilities with a seating capacity of at least one
hundred (100) persons and which derive at least seventy
percent (70%) of their gross receipts from the sale of
food.” The current question permits the voters to allow
all permissible/legal sales of alcoholic beverages without
other qualification.
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Election Questions, cont.
For the same reason, we would not interpret a
failure of the measure to cause Danville to
revert to totally dry. The voters answered a
different question in the KRS 242.185 (6)
election and they are not now being asked to
repeal that vote.
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Election Questions, cont.
Effective Date. KRS 242.200 provides that the
results of the election become effective 60
days after the election is certified. If the
measure passes, Danville will be wet.
How Many Licenses
and
What Types of Licenses
A yes vote on the referendum would permit the
issuance of retail liquor drink licenses and
retail liquor packages licenses in the City of
Danville.
Licenses Subject to Quota
KRS 241.060 (2) permits the ABC Board to
limit ABC licenses. By regulation, 804 KAR
9:010, Liquor Drink (LD) and Liquor Package
(LP) licenses are limited by quota based on
population ratios. LD licenses are issued on a
ratio of 1/2500 and LP licenses are 1/2300.
Licenses Subject to Quota, cont.
City of Danville population is approximately
15,000. Subject to the discretion of the
Distilled Spirits Administrator, Danville would
receive 6 LD and 6 LP licenses.
There is NO QUOTA for retail malt beverage
(beer) licenses, restaurant drink or temporary
licenses.
License Types and Uses
Retail Liquor Drink (LD)
Retail Liquor Package (LP)
Retail Malt Beverage (BEER)
Restaurant Wine
Restaurant Drink
Temporary
License Types and Uses, cont.
Retail Liquor Drink (LD) licenses found in
KRS 243.250 permit the sale of all distilled
spirits and wine by the drink for consumption
on the premises. These licenses may be for a
bar where no food/limited food is sold, or in a
restaurant without regard to food sales or
available seating. A retail beer license may be
held in combination with this license.
License Types and Uses, cont.
Retail Liquor Package (LP) licenses found in
KRS 243.240 permit the establishment of
package liquor stores. These licenses permit
the package sale of:
Distilled Spirits
Wine
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License Type and Uses, cont.
These licenses would also permit consumption
of beer by the drink on the premises. Liquor
or wine could not be consumed on the
premises, unless the store also held an LD
license.
License Types and Uses, cont.
KRS 243.230 (5) provides that LP licenses
may not be issued to grocery or convenience
stores. However, the grocery or convenience
store owner may qualify for an LP license
immediately adjacent to his store if the
licensed premises has a separate entrance and
is not accessible from within the
grocery/convenience store. A pharmacy may
hold an LP license.
License Types and Uses, cont.
Retail Malt Beverage (BEER) licenses found
in KRS 243.280 authorize the sale of beer by
the package or by the drink. There is no quota
on beer licenses. Beer licenses may be issued
to gas stations so long as the station maintains
an inventory of $5000 worth of food, groceries
and related products.
License Types and Uses, cont.
Restaurant Wine licenses are found in KRS
243.032. It is a wine only license for
restaurants with a minimum seating capacity of
50 and requires that the restaurant maintain
food sales of 50% of gross annual income.
The RW is a quota license to be included in the
total number of LD licenses. This license may
be held in combination with a beer license.
License Types and Uses, cont.
Restaurant Drink license is similar to
Danville’s current Limited Restaurant license.
It allows for the sale of liquor and wine by the
drink in restaurants with a seating capacity of
100. The license is dissimilar in that it would
require only that the restaurant maintain food
sales equal to 50%, not 70%, of gross receipts.
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License Type and Uses, cont.
This license is not subject to the quota
limitation. This license may be held in
combination with a beer license.
License Types and Uses, cont.
Temporary licenses are permitted for beer and
also wine and spirits under KRS 243.290 and
KRS 243.260. These licenses are available for
temporary events such as fairs, festivals or
carnivals. The licenses are of short endurance
(not more than 30 days) and require defined
premises for consumption. Temporary
licenses would only be available for events
held within the city limits.
General Licensing Issues
Who may hold a license? KRS 243.100
addresses licensing qualifications to include:
qualified persons (a citizen, over 21 years, no
conflicting criminal background), corporate
and limited liability entities and non-profit
entities may hold a license.
General Licensing Questions, cont.
Who may not receive a license?
What are causes for refusal?
KRS 243.450 –License shall be refused:
If applicant does not comply fully with all ABC
Statutes and regulations of board;
If applicant or premises does not comply with all
regulations of city or county administrator;
If applicant has done any act for which a revocation
of license would be authorized; or
If applicant has made any false material statement on
his application.
General Licensing Issues, cont.
Issuing Discretion. The ABC administrator
will have broad, but not unlimited or arbitrary
discretion in the issuance of licenses. She may
not, as a matter of policy, prefer local
applicants over nonresident applicants. The
administrator can restrict the location of a
licensed premises so that they are not too close
to schools and so that licensed premises do not
saturate an area.
General Licensing Issues, cont.
KRS 243.490. A license that might be issued under
KRS 243.020 to 243.670 may be refused by a state
administrator for any reason which administrator
deems sufficient. Factors may include:
– Public sentiment in the area;
– number of licensed outlets in the area;
– Potential for future growth
– Type of area involved;
– Type of transportation available;
– Financial potential of the area.
General Licensing Issues, cont.
Minors on premises where liquor and wine are
sold by the drink is prohibited by KRS
244.085. This basically prohibits minors from
being on the premises of a bar, because there
are exceptions to this rule for restaurants,
hotels, fairs, schools, private clubs and similar
licensed premises.
General Licensing Issues, cont.
Is the age requirement for purchasing alcoholic
beverages (21) the same for selling and serving
alcohol?
No – A person must be 20 years old to sell liquor
or beer by the drink.
--A person must be 18 years old to sell packaged
malt beverages and must be directly supervised by
a person 20 years of age.
--A person must be 21 years old to purchase malt
beverages or distilled spirits of any type.
ABC License Application
What is the process?
What are the local responsibilities?
How do the local and state administrators
collaborate?
Applicant must publish a
notice of intent to apply for license under
KRS 243.030 and 243.040
Any person, corporation, or partnership applying for
a license must advertise by publication his intention
to apply for the license.
This advertisement must be in the newspaper at least
once.
Information required for notice:
Name and address of applicant
Specific location of the premise and type of license
being requested
Date the application will be filed
Must include the following statement:
“Any person association, corporation, or body politic
may protest the granting of the license by writing the
Department of Alcoholic Beverages, 1003 Twilight
Trail, Frankfort, Ky. 40601, within 30 days of the
date of legal publication.”
Protest
Any protest received after the 30 day period has
expired and shall not be considered a valid legal
protest by the board.
Application Approval
Applications for county or city license must first be
approved by the county or city administrator before
applying for a state license.
Local ABC Administrator must sign application
before forwarding to the state.
Securing License FAQ
How long does it take to secure a state liquor license?
A minimum of 30 days due to the protest period
(unless the same type license has been issued at the
premise within the last year. The State
administrators have the discression to issue
conditionally before the 30 day period has expired.
If the application is correct and complete when
received by the state, processing will naturally be
faster. The applicant is urged to submit his/her
application to the local administrator and state
administrators at the same time.
City Regulation
KRS 241.190 places the regulatory authority
of the city in the city administrator. The
administrator performs many of the same
functions as the ABC Board, except that she
may not limit the number of quota licenses
allotted by regulation to the city. See,
Whitehead v. Bravard, 719 S.W.2d 720 (Ky.
1986).
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City Regulation, cont.
The city commission has express authority to:
1. create licenses and charge for them according to KRS
243.070;
2. modify hours of operation according to KRS 244.290
(spirits and wine) and KRS 244.480 (beer), including
Sunday sales; and
3. levy a license fee at “a percentage rate reasonably
estimated to fully reimburse the cost of additional
policing, regulatory and administrative expenses” (credit
for original license fee).
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City Regulation, cont.
Who regulates and enforces ordinances as far as
the hours alcohol can be sold or sales to minors?
Kentucky law provides for alcohol sales between 6 a.m. and
12 midnight, Monday through Saturday; however local city or
county ordinance can change the hours of service.
KRS 244.290 – liquor
KRS 244.480 – beer
Sales to minors – State law—KRS 244.085
Minors shall not possess or purchase liquor nor to
misrepresent age.
City Regulations, cont.
Though not expressly permitted by statute,
many cities require mandatory server training
for the employees of all licensed premises.