804 KAR 9:010. Retail liquor license limit.
RELATES TO: KRS 241.010(38), 241.060, 241.065, 241.075, 243.030
STATUTORY AUTHORITY: KRS 241.060(1), (2), EO 2008-507
NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060(1) authorizes the Alcoholic Beverage Control Board to promulgate administrative regulations relative to the applications for and revocations of licenses. KRS 241.060(2) authorizes the board to limit the number of licenses to be issued in any county of the Commonwealth. EO 2008-507, effective June 16, 2008, abolished the Environmental and Public Protection Cabinet and established the new Public Protection Cabinet, and reorganized the Office of Alcohol Beverage Control as the Department of Alcohol Beverage Control. This administrative regulation establishes the basis of this limitation and establishes the manner in which the population of a county is to be ascertained for purposes of the number of licenses in a county.
Section 1. (1) Except as provided in 804 KAR 9:040 or in subsection (2) of this section, the number of retail package liquor licenses issued by the Alcoholic Beverage Control Board in any county of the Commonwealth shall not exceed a number equal to one (1) for every 2,300 persons resident.
(2) A county containing a city of the first class shall be subject to the limitations established in KRS 241.065.
Section 2. (1)(a) Except as provided in paragraph (b) of this subsection or in subsection (2), (3), (4), or (5) of this section, the number of retail drink liquor licenses issued by the Alcoholic Beverage Control Board in any county of the Commonwealth shall not exceed a number equal to one (1) for every 2,500 persons resident.
(b) A county containing a city of the first class shall be subject to the limitations established in KRS 241.065.
(2) The Alcoholic Beverage Control Board may issue retail drink licenses in excess of the number provided in subsection (1) of this section if the license is for a facility that is:
(a) An outlet in a hotel, inn, or motel for accommodation of the traveling public;
(b) Designed primarily to serve transient patrons; and
(c) Has submitted to the board evidence that the facility will accommodate sufficient patrons to sustain the operation of a retail drink outlet. The evidence shall include documentation that the facility:
1. Contains at least fifty (50) sleeping units:
2. Contains dining facilities for at least 100 persons; and
3. Receives from its total food and beverage sales at least fifty (50) percent of its gross receipts from the sale of food. An applicant shall submit to the Board satisfactory proof that the facility shall accommodate sufficient patrons to sustain the operation of a retail drink outlet. The facility shall:
1. Contain at least fifty (50) sleeping units;
2. Contain dining facilities for at least 100 persons; and
3. Receive at least fifty (50) percent of its gross receipts from the sale of food.
(3) The Alcoholic Beverage Control Board may issue retail drink licenses in excess of the number provided in subsection (1) of this section if the license is for an outlet in an airport terminal where commercial flights are made in or near cities of the first, second, or third class in wet counties.
(4) The Alcoholic Beverage Control Board may issue retail drink licenses in excess of the number provided in subsection (1) of this section if the license is for a facility that:
(a) Is a restaurant as defined by KRS 241.010(38);
(b) Has a minimum seating capacity of 100 people at tables;
(c) Has submitted to the board:
1. Evidence that the facility meets the criteria established in paragraphs (a) and (b) of this subsection; and
2. A certification of seating capacity by the applicable fire marshal's office or its equivalent; and
(d) If applying for a license renewal, has submitted an annual report to the board indicating annual gross receipts from the sale of food and the sale of alcoholic beverages.
(5) The Alcoholic Beverage Control Board may issue retail drink licenses in excess of the number provided in subsection (1) of this section if the license is for an outlet located within a premises that has been issued an Entertainment Destination Center License under 804 KAR 4:370.
(6) Licenses issued under the exceptions established in subsection (2), (3), (4), or (5) of this section shall not be transferred to other premises.
Section 3. (1) The estimates of population for Kentucky counties prepared by the Kentucky State Data Center, Urban Studies Center of the University of Louisville, Louisville, Kentucky, shall be used in every year except a census year to determine the number of licenses prescribed by this administrative regulation. The United States Government census figures of population shall be used in a census year.
(2)(a) On or before January 1 of each year, the Alcoholic Beverage Control Board shall request from the Kentucky State Data Center, Urban Studies Center of the University of Louisville, Louisville, Kentucky, population estimates as of that date for those counties in which license quotas may need to be reviewed by the board.
(b) Upon receipt of these estimates from the Kentucky State Data Center, Urban Studies Center of the University of Louisville, Louisville, Kentucky, the Alcoholic Beverage Control Board shall, within thirty (30) days, send a specific notice to the newspaper with the largest circulation in each county where the estimate justifies a change in that county's quota, and issue a release of this information to the general press.
(c) The Department of Alcoholic Beverage Control shall accept applications for new quota licenses for a period of thirty (30) days following the date of publication in the newspaper of each county affected.
Section 4. This administrative regulation shall not prohibit renewal of licenses. The present quota shall be reduced, in conformance with this administrative regulation, as licenses are revoked or surrendered. (ABC 9:10; 1 Ky.R. 846; eff. 5-14-75; Am. 4 Ky.R. 67; eff. 10-5-77; 8 Ky.R. 18; eff. 10-7-81; 16 Ky.R. 488; 754; eff. 10-13-89; 31 Ky.R. 627; 939; eff.11-26-2004; 35 Ky.R. 1596; 1761; eff. 3-6-09.)