243.630 Transfer of license or acquisition of interest without authorization

547 words·~2 min read·/ky/243-630

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

prohibited.

(1)For purpose of this section, "transfer" means:

(a)The transfer to a new person or entity of ten percent (10%) or more

ownership interest in any licensed business or license;

(b)The transfer in bulk, and not in the ordinary course of business, of a

major part of the fixtures, materials, supplies, merchandise, or other

inventory of a licensee's business; or

(c)The transfer of a business or license to a different premises.

(2)Any license issued to any person for any licensed premises shall not be

transferable or assignable to any other person or to any other premises or to

any other part of the building containing the licensed premises, unless a

transfer or assignment is authorized by the state administrator in the exercise

of sound discretion.

(3)A licensee shall not acquire or otherwise dispose of any interest in a licensed

premises or any license issued by the department, by sale of assets, stock,

inventory, control or right of control, or activities on the licensed premises

without prior approval of the state administrator. The state administrator shall

treat a transfer applicant as a new applicant for qualification and discretion

purposes.

(4)Any acquisition of interest in a license without prior authorization shall be void.

(5)All applications for approval of a transfer shall be made in writing to the state

administrator having jurisdiction over the license.

(6)Applications for approval of a transfer shall be made under oath or affirmation,

shall be signed by both the transferor and the transferee, and shall contain any

other information prescribed by the department.

(7)The appropriate state administrator shall deny or approve the application

when, in the sound discretion of the administrator, all of the necessary

information has been obtained or the applicant has refused to provide

requested information, but it shall not be acted upon before the end of the

public protest period outlined in KRS 243.360.

(8)No licensee or other person seeking to acquire an interest in an existing

license shall transfer control or assume control of any licensed premises by

agreement or otherwise without the written consent of the state administrator of

malt beverages or the state administrator of distilled spirits or both.

(9)A licensee shall not transfer its license or any interest in the license while any

proceedings against the license or the licensee for a violation of any statute or

administrative regulation which may result in the suspension or revocation of

the license are pending.

(10)A licensee shall not transfer its license or any interest it has in the license if the

licensee owes a debt on the inventory to a wholesaler responsible for the

collection and payment of the tax imposed under KRS 243.884.

(11)A licensee shall not transfer its license or any interest in the license if the

licensee owes the Commonwealth of Kentucky for taxes as defined in KRS

243.500(4). A transfer shall not take place until the department is notified by the Kentucky Department of Revenue that the licensee's indebtedness has been paid or resolved to the satisfaction of the Department of Revenue. This section shall not prohibit a transfer of a license or an interest in a license by a trustee in bankruptcy if all other requirements of this section are met.