RELATES TO: KRS 148.853(2)(b), 241.060(1), 243.030(41), (46), 243.040(18), 243.050(4), (5)
STATUTORY AUTHORITY: KRS 241.060(1), 243.030(46), 243.040(18)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 243.030(41) and (46) and 243.040(18) authorize the Department of Alcoholic Beverage Control to issue an entertainment destination license and any other special licenses the board finds necessary for the proper regulation and control of traffic in alcoholic beverages. This administrative regulation creates a special license to facilitate convention and tourism business in the Commonwealth by permitting the retail sale of alcoholic beverages by the drink at entertainment destination centers.
Section 1. Definitions. (1) "Entertainment destination center" means a facility:
(a)1. Located in a city of the first class or in a county containing a city of the first class;
2. Located within an urban-county government under KRS Chapter 67A;
3. Located within a city of the second class and meeting the incentive qualifications for an entertainment destination center project as set forth in KRS 148.853(2)(b)(1); or
4. Located within a county containing a city of the second class and meeting the incentive qualifications for an entertainment destination center project as set forth in KRS 148.853(2)(b)(1);
(b) Containing a minimum of 100,000 square feet of building space located within 2,000 feet of:
1. An existing tourism attraction; or
2. A major convention facility measured from closest property line to closest property line; and
(c) Containing a combination of entertainment destination venues including:
3. Leisure time activities; or
4. Specialty retail stores.
(2) "Major convention facility" means an establishment licensed under KRS 243.050(4) or (5) as a convention center.
(3) "Physical confines of the center" means:
(a) A portion of a public thoroughfare that is:
1. Adjacent to or within the entertainment destination center; and
2. Closed to vehicular traffic;
(b) An area designated by the lease as a common area; or
(c) An area included in the leased space or common areas and defined by a physical barrier, which would preclude motor vehicle traffic and limit pedestrian accessibility, as approved by the Department of Alcoholic Beverage Control.
Section 2. An entertainment destination center license shall authorize the licensee to sell alcoholic beverages by the drink at one (1) or more nonpermanent locations within common areas of the entertainment destination center over which the licensee, by lease or ownership, has exclusive control.
Section 3. (1) Each lessee of premises located within an entertainment destination center that intends to sell alcoholic beverages by the drink at retail shall apply for and obtain the necessary on-premises licenses under KRS 243.030 and 243.040.
(2) If permitted by the owner or lessee of the entertainment destination center in the lease, a licensed retail drink licensee may also sell alcoholic beverages from one (1) nonpermanent facility if the facility is located 100 feet or less from the licensee’s permanent premises.
(3) Each retail drink licensee shall obtain a supplemental bar license for the nonpermanent location.
Section 4.(1) On Thursday, Friday, and Saturday of each week, between the hours of 6 p.m. and up to 4 a.m., and during any other days and times as the owner or lessee of the entertainment destination center may determine and which are permitted by local ordinance and state statute, a licensee within the entertainment destination center may allow patrons to leave the individually licensed premises with an alcoholic beverage drink and enter other licensed premises and the common areas of the center, if adequate security is provided by the entertainment destination center licensee at each point of ingress and egress.
(2) Each licensee shall serve all alcoholic beverages in containers bearing the licensee’s trademark, trade name, logo, or other identifying markings unique to that licensee.
(3) Each licensee, including the entertainment destination center licensee, shall prohibit patrons from taking alcoholic beverages outside the physical confines of the center.
(4) At times other than those specified in subsection (1) of this section, and in accordance with local ordinance and state statute, the entertainment destination center licensee may permit alcoholic beverages to be consumed in nonpermanent locations and common areas if it provides adequate security at each point of ingress and egress.
(5) During those times the entertainment destination center is operating pursuant to subsection (1) or (4) of this section, the entertainment destination center licensee shall ensure that minors can be easily distinguished from other patrons through use of identity bracelets, hand stamps, badges, or other visible means.
(6) Each licensee of the center shall cause to be posted signs indicating the hours and days when alcoholic beverages may be consumed in the common areas pursuant to subsection (1) of this section and times when that consumption is prohibited.
(7) The entertainment destination center licensee shall be solely responsible for notifying the department of the dates and times during which alcoholic beverages shall be sold in the nonpermanent retail locations and common areas pursuant to subsections (1) and (4) of this section.
Section 5. The holder of the entertainment destination center license shall be subject to the restrictions and prohibitions established in KRS Chapters 243 and 244.
Section 6.(1) The entertainment destination center license shall not be a quota license and shall not be transferable to any other premises.
(2) A licensee who obtains an alcoholic beverage license for permanent premises within the center shall not be prohibited from holding a retail drink quota license.
(3)(a) Except as provided in paragraph (b) of this subsection, a licensee in the center shall not hold a retail package alcoholic beverage license.
(b) A liquor package licensee with an existing contractual commitment may remain at its licensed premises after the entertainment destination center license is issued.
Section 7. (1) Except as provided in this administrative regulation, all statutes and administrative regulations governing the retail sale of alcoholic beverages by the drink and the consumption of alcohol by patrons shall be applicable to all retail establishments contained within the physical confines of the center.
(2)(a) A licensee shall be solely responsible for alcohol violations occurring on its licensed premises, including its nonpermanent location.
(b) The entertainment destination center licensee shall be solely responsible for alcohol violations occurring at its nonpermanent locations, kiosks, or in the common areas.
(3) Proceedings relating to applications, renewals, suspensions, or revocations of the license created by this administrative regulation shall be conducted in the same manner as for any retail licensee, in accordance with the provisions of KRS Chapters 243 and 13B.
(4) If the board suspends the entertainment destination center license, all retail drink sales at its nonpermanent locations, kiosks, or common areas shall be suspended.
(5) If the alcoholic beverage license of an individual tenant of the center is suspended, the retail licensee shall not sell alcoholic beverages for the duration of the suspension from either its permanent or nonpermanent locations. (29 Ky.R. 1712, Am. 2289; eff. 3-19-2003; 31 Ky.R. 623; eff. 11-26-04; TAm eff. 8-9-2007; 35 Ky.R. 1590; 1758; eff. 3-6-09; 38 Ky.R. 2049; eff. 8-31-2012; TAm eff. 7-15-2014.)