PUBLIC PROTECTION CABINET

Department of Alcoholic Beverage Control

(Amendment)

 

      804 KAR 4:390. License renewals.

 

      RELATES TO: KRS 243.090(1)

      STATUTORY AUTHORITY: KRS 241.060(1), 243.090(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060 authorizes the board to promulgate administrative regulations regarding matters over which the board has jurisdiction. KRS 243.090(1) requires the board[Department of Alcoholic Beverage Control] to establish a year-round system for renewal of licenses. This administrative regulation establishes a year-round[the] system for license renewals and attendant requirements[renewal].

 

      Section 1. Definition. "Batch renewal" means the simultaneous renewal of multiple licenses held by a licensee for more than two (2) premises.

 

      Section 2. Monthly Renewal Schedule. (1) All licenses in Ballard, Breckinridge, Bullitt, Butler, Caldwell, Calloway, Carlisle, Christian, Crittenden, Cumberland, Daviess, Edmonson, Fulton, Graves, Grayson, Green, Hancock, Hardin, Hart, Henderson, Hickman, Larue, Livingston, Lyon, Marshall, McCracken, McLean, Meade, Metcalfe, Monroe, Ohio, Owen, Spencer, Trigg, Trimble, Union, and Webster Counties shall have an annual term beginning February 1 and ending January 31 of the following year and shall be renewed in the month of January by submitting the renewal application by January 31.

      (2)[Section 3.] All licenses in Adair, Allen, Barren, Bath, Bell, Boyle, Breathitt, Casey, Clark, Clay, Clinton, Elliott, Estill, Fleming, Floyd, Garrard, Harlan, Harrison, Hopkins, Jackson, Jessamine, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie, Letcher, Lincoln, Logan, Madison, Magoffin, Marion, Martin, McCreary, Menifee, Mercer, Montgomery, Morgan, Muhlenberg, Nelson, Owsley, Perry, Powell, Pulaski, Rockcastle, Russell, Simpson, Taylor, Todd, Warren, Washington, Wayne, and Whitley Counties shall have an annual term beginning May 1 and ending April 30 of the following year and shall be renewed in the month of April by submitting the renewal application by April 30.

      (3)[Section 4.] All licenses in Anderson, Bourbon, Boyd, Bracken, Carroll, Carter, Franklin, Gallatin, Grant, Greenup, Henry, Lewis, Mason, Nicholas, Oldham, Pendleton, Pike, Robertson, Rowan, Scott, Shelby, Wolfe, and Woodford Counties shall have an annual term beginning July 1 and ending June 30 of the following year and shall be renewed in the month of June by submitting the renewal application by June 30.

      (4)[Section 5.] All licenses in Jefferson County shall have an annual term beginning November 1 and ending October 31 of the following year and shall be renewed in the month of October by submitting the renewal application by October 31.

      (5)[Section 6.] All licenses in Boone, Campbell, Fayette, and Kenton Counties shall have an annual term beginning December 1 and ending November 30 of the following year and shall be renewed in the month of November by submitting the renewal application by November 30.

      (6)[Section 7.] The license of a statewide or out-of-state licensee shall have an annual term beginning January 1 and ending December 31 of the same year and shall be renewed in December by submitting the renewal application by December 31.

 

      Section 3[8]. Batch Renewals. (1) A licensee that holds multiple licenses for more than two (2) premises may renew the licenses by batch at the same time. To complete a batch renewal, a licensee shall notify the department in writing.

      (2) All batch renewals shall have an annual term beginning September 1 and ending August 31 of the following year and shall be renewed in August by submitting the renewal application by August 31.

      (3)[Section 9.] Unless a licensee notifies the department of its intent to renew premises licenses by batch renewal, licenses shall be renewed pursuant to Section 2 of this administrative regulation[as provided in Section 10 of this administrative regulation, a licensee that holds multiple licenses that cover multiple premises shall renew its licenses using the license expiration date based on the county of each premises.

 

      Section 10. A licensee that holds multiple licenses for more than two (2) premises may renew the licenses by batch at the same time. A licensee who wants to renew premises by batch shall notify the department in writing. Upon written notification, the licenses shall then be renewed in August, as provided in Section 8 of this administrative regulation.

 

      Section 11. A licensee that holds multiple licenses for more than two (2) premises shall not be required to send a letter requesting that its licenses be renewed separately unless the licensee wishes to change its current renewal schedule from batch to separate or from separate to batch].

 

      Section 4[12]. Renewal of Producer Licenses with Maximum Production Limits. (1) The following[All small farm winery, microbrewery, and Class B Craft distiller’s] licensees shall, for the dates identified on the renewal application, submit:

      (a) For Small Farm Wineries, the[required production reports with their renewal application forms. Small farm wineries shall submit copies of their] federal Report of Wine Premises Operation, TTB F 5120.17;

      (b) For Microbreweries, the[, for time periods identified on renewal application forms. Microbreweries shall submit copies of their] federal Brewer’s Report of Operations, TTB F 5130.9;

      (c) For Class B Craft Distilleries, the[, for time periods identified on renewal application forms. Class B Craft Distilleries shall submit copies of their] federal Monthly Report of Production Operations, TTB F 5110.40; and

      (d) For Class B Craft Rectifiers, the federal Monthly Report of Processing Operations, TTB F 5110.28.

      (2)[511.40, for time periods identified on renewal application forms.

 

      Section 13.] The department may deny a license renewal application[elect to not renew a license] if the licensee exceeds a production limit,[for its license type or] fails to meet required food sales percentages[required for its license type], or if the license renewal [of the license] would otherwise be contrary to law.

 

      Section 5[14]. Renewal Grace Period. If a licensee fails to renew its license by the expiration date, the department shall grant not more than one (1) extension that[which] shall not exceed thirty (30) days from the original expiration date. The licensee shall not conduct any activity related to alcoholic beverages during the extension. A license not renewed during the thirty (30) day extension period shall not be renewed thereafter for any reason, and the licensee shall apply[reapply] for a new license.

 

CHRISTINE TROUT, Commissioner

DAVID A. DICKERSON, Secretary

      APPROVED BY AGENCY: June 29, 2017

      FILED WITH LRC: June 29, 2017 at 3 p.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 22, 2017 at 1:00 p.m. Eastern Time at the Kentucky Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Department in writing by five working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on August 31, 2017. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Heather Mercadante, Executive Advisor, Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, phone (502) 564-4850, fax (502) 564-7479, email Heather.Mercadante@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Heather Mercadante

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation sets forth a system for year-round renewals of alcoholic beverage licenses.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to comply with KRS 243.090, 243.120, 243.155, and 243.157.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 241.060 authorizes the board to promulgate reasonable regulations. KRS 243.090 requires the board to establish a year-round system of license renewals. KRS 243.090, 243.120, 243.155, and 243.157 allow reduced fees for producer licenses based upon maximum yearly production.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes. This administrative regulation assists the department by distributing the workload of license renewals throughout the calendar year. This regulation also allows the department to verify which producers are entitled to reduced licensing fees pursuant to KRS 243.090, 243.120, 243.155, and 243.157.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment specifies the documents required to renew a Class B Rectifier’s license based on production amounts.

      (b) The necessity of the amendment to this administrative regulation: The amendment is necessary to comply with statutory changes to KRS 243.120.

      (c) How the amendment conforms to the content of the authorizing statutes: The amendment reflects the new Class B Rectifier’s license.

      (d) How the amendment will assist in the effective administration of the statutes: The amendment will assist the department in ensuring that only qualified rectifiers obtain the Class B license at a reduced fee.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: All holders of 16,000 plus licenses issued by the department are affected by this regulation.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Rectifiers with Class B licenses will have to submit copies of federal production reports to the department.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): It is not expected that rectifiers will incur any additional costs because they are already required to prepare and submit these production reports to the U.S. Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau ("TTB").

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): There are no financial benefits to this administrative regulation amendment.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: No costs.

      (b) On a continuing basis: None.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: No funding is used to implement and enforce the amendment of this administrative regulation.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: There is no anticipated increase in fees or funding necessary to amend this administrative regulation.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increased any fees: This administrative regulation amendment does not directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? No tiering is applied because this regulation applies equally to the regulated entities.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      (1) What units, parts or divisions of state or local government (including cities, counties, fire departments or school districts) will be impacted by this administrative regulation? The Department of Alcoholic Beverage Control.

      (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 241.060(1) authorizes the board to promulgate administrative regulations, and KRS 243.090 requires the board to establish a year-round system of license renewal.

      (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? No revenue will be generated by this administrative regulation.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No revenue will be generated by this administrative regulation.

      (c) How much will it cost to administer this program for the first year? The cost to administer this amendment should be minimal, if any.

      (d) How much will it cost to administer this program for subsequent years? The cost to administer this amendment should be minimal, if any.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation:

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: Additional costs to administer these regulatory changes at the local government level for this year or subsequent years should be minimal or none.