STATEMENT OF EMERGENCY

804 KAR 4:400E

 

      This emergency administrative regulation is being promulgated to comply with KRS 243.110 as it relates to incompatibility of licenses. This action must be taken on an emergency basis in accordance with KRS 13A.190(1)(a)(3) to meet a deadline for the promulgation of an administrative regulation that is established by state law. Failure to enact this administrative regulation on an emergency basis in accordance with KRS 13A.190(1)(a)(3) compromises the department’s ability to comply with the provisions of KRS 243.110 on the date that the Act becomes effective as law (June 25, 2015), thereby interfering with the board’s ability to act quickly in its efforts to address any incompatible license types before the next renewal date following the change in statute. This emergency administrative regulation shall be replaced by an ordinary administrative regulation to be concurrently filed with the Regulations Compiler. The ordinary administrative regulation is identical to this emergency administrative regulation.

 

STEVEN L. BESHEAR, Governor

FREDERICK A. HIGDON, Commissioner

AMBROSE WILSON IV, Secretary

     

PUBLIC PROTECTION CABINET

Department of Alcoholic Beverage Control

(Emergency Amendment)

 

      804 KAR 4:400E. ABC basic application and renewal form incorporated by reference.

 

      RELATES TO: KRS 164.772, 241.060(1), 243.090, 243.380, 243.390

      STATUTORY AUTHORITY: KRS 241.060(1), 243.380, 243.390

      EFFECTIVE: June 23, 2015

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060(1) authorizes the board to promulgate reasonable administrative regulations governing procedures relative to the applications for and revocation of licenses. KRS 243.380(2) and 243.390 require the board to promulgate an administrative regulation to establish the license application form. This administrative regulation prescribes the basic forms to be used to apply for and renew an alcoholic beverage license.

 

      Section 1. An applicant for an alcoholic beverage license shall complete and submit to the Department of Alcoholic Beverage Control the Basic Application for Alcoholic Beverage License, with the exception of an applicant for:

      (1) A special agent/solicitor license, out-of-state producer/supplier of distilled spirits/wine license, or out-of-state producer/supplier of malt beverage license;

      (2) A temporary license; or

      (3) An extended hours, supplemental bar, special Sunday, or sampling license.

 

      Section 2. In addition to the Basic Application for Alcoholic Beverage License required by Section 1 of this administrative regulation, an applicant shall complete and submit to the Department of Alcoholic Beverage Control the special application form required by 804 KAR 4:410 if applicable.

 

      Section 3. A licensee who is renewing a license pursuant to KRS 243.090 shall complete and submit to the Department of Alcoholic Beverage Control the Application for License Renewal.

 

      Section 4. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Basic Application for Alcoholic Beverage License", June 2015[September 2014]; and

      (b) "Application for License Renewal", June 2015[February 2014].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the department’s Web site, http://www.abc.ky.gov/.

 

FREDERICK A. HIGDON, Commissioner

AMBROSE WILSON IV, Secretary

      APPROVED BY AGENCY: June 23, 2015

      FILED WITH LRC: June 23, 2015 at 3 p.m.

      CONTACT PERSON: Melissa McQueen, Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, phone (502) 782-7906, fax (502) 564-7479.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact person:    Melissa McQueen

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation incorporates the forms the de-partment uses to issue and renew alcoholic beverage licenses.

      (b) The necessity of this administrative regulation: This regulation is necessary because the department is required by statute to set forth what information is needed to obtain or renew an alcoholic beverage license.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 243.380 and 243.390 require the department to set forth what information is required to obtain or renew a license.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes. This administrative regulation clarifies what information needs to be provided to the department in order to obtain or renew an alcoholic beverage license. By incorporating the application and renewal application, the information that is required to apply for, or renew, an alcoholic beverage license is ascertainable.

      (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: It replaces the prior renewal form with the current version, which has had questions added to it. The basic application was also amended to add a few additional questions and this amendment will replace the old application with a revised version.

      (b) The necessity of the amendment to this administrative regulation: The renewal application needed to be amended to reflect current statutory changes and the amended form needs to be incorporated into the administrative regulation.

      (c) How the amendment conforms to the content of the authorizing statutes: KRS 243.380 and 243.390 require the department to set forth what information is required to obtain or renew a license.

      (d) How the amendment will assist in the effective administration of the statutes: This administrative regulation clarifies what information needs to be provided to the department in order to obtain or renew an alcoholic beverage license. By incorporating the application and renewal application, the information that is required to apply for, or renew, an alcoholic beverage license is ascertainable.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Any person or entity who wishes to obtain or renew an alcoholic beverage license will be affected by this administrative 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: The required actions are no different than the process the licensees and applicants currently follow to obtain or renew an alcoholic beverage license. They will have to complete and submit the application as they are currently required to do.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There are not expected to be any additional costs.

      (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 extra costs are anticipated to amend this administrative regulation.

      (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 is the only government agency expected to be impacted by this administrative regulation.

      (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.

      (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. Expenditures are not expected to increase. No revenue will be generated by this administrative regulation.

      (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.


 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

Administrative Regulation #: 804 KAR 4:400E

Contact Person: Melissa McQueen   

Phone Number: 502-782-7906

 

(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 is the only government agency expected to be impacted by this administrative regulation.

(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.

(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.

      Expenditures are not expected to increase. No revenue will be generated by this administrative regulation.

(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.

SUMMARY OF MATERIAL

 

Summary of Changes to Material Incorporated by Reference

 

The "Application for License Renewal" is a 2-3 page license renewal application form for all licensees who wish to renew their alcoholic beverage license(s). The length of the form is dependent on the types of licenses held by the licensee, as the number of questions populates into the form based upon license type, and some questions take up more space than others. KRS 241.060(1) authorizes the Alcoholic Beverage Control Board to promulgate administrative regulations governing procedures relative to the applications for licenses.

 

Section 1 lists the types of licenses currently held by the licensee as well as the license numbers, the dates they expire, and the current amount due to renew. The amended application will not have the separate column to automatically populate the credit card payment fee.

 

Section 2 lists any holds that the licensee will need to address before their license(s) can be renewed. Currently the types of holds that may generate in this section are a tax hold from the Department of Revenue, bad standing with the Secretary of State, or an expired lease. If the licensee has no holds, this section will be empty. Changes were made to fix the alignment.

 

Section 3 is an area in which required information is populated based upon the types of licenses held by the licensee. Questions that may generate in this section include: material change in circumstances since last application, tobacco sales, food and alcohol sales percentages, gallonage reports for Distillers Class B and Small Farm Wineries licensees, barrel reports for Microbreweries and questions regarding direct and indirect ownership interests between malt beverage producers and distributors. Changes in this amendment include asking for barrels produced reports for microbreweries, gallonage reports for Distillers Class B and Small Farm Wineries (Small Farm Wineries were previously asked to provide this information but it had been located in Section 5 and was instead moved to Section 3 so that it will only generate on the renewal for Small Farm Winery licenses instead of being printed on all renewal forms regardless of license types), questions regarding direct and indirect ownership interests between malt beverage producers and distributors, food sales percentages for licensees whose license type has a requirement of food sales. Additionally the question relating to material changes was reworded and grammatical errors and a spelling error were fixed in Section 3 as well.

 

Section 4 is instructions for making sure the renewal application is filled out entirely and submitted the proper way. Previously Section 4 was the signature section but it was switched for this amendment so that the signature would be last on the application. Grammatical changes were made to this section.

 

Section 5 is the area in which the applicant signs under oath that all information provided to the Department of Alcoholic Beverage Control is true and correct to the best of their knowledge, information, and belief. The oath was added to the signature because applications are to contain sworn information pursuant to KRS 243.390.

 

The "Basic Application for Alcoholic Beverage License" is a 14-page licensing application for that is required when applying for an alcoholic beverage license.

 

Section D, Question 9 is amended to determine the source of all funds used for the business and license fees. It requests the name of lenders if a loan was made. Additionally it requests the name and account number(s) of the banking institution the licensee will use as well as all persons authorized on the signature card of the account(s).

 

Section P is amended to add a question to ask if the applicant for a caterer’s license is also seeking a Special Sunday Retail Drink License. All subsequent questions were renumbered accordingly.