CHAPTER 117: ALCOHOLIC BEVERAGES

Licensing of Restaurants and Dining Facilities

117.01 Purpose
117.02 Application review
117.03 Issuance and renewal of licenses
117.04 Operational regulations
117.05 Hearings

Beverage Service Training

117.15 Mandatory responsible beverage service training
117.16 Licenses
117.17 Required information and signage to assist the trained servers and sellers
117.18 Seller/server training agency
117.99 Penalty


LICENSING OF RESTAURANTS AND DINING FACILITIES


§ 117.01 PURPOSE.

This subchapter is adopted to regulate the sale of alcohol pursuant to KRS 242.185 as amended and substituted by KRS 243, et seq. and/or KRS 243.034 in such a manner as to effectuate the legislative intent of that statute. That intent is to permit the sale of alcoholic beverages by the drink at restaurants and dining facilities which seat at least one hundred (100) persons and derive a minimum of seventy percent (70%) of their gross receipts from the sale of food. To realize this intent, the city shall implement this subchapter in such manner as to assure that:

(A) Restaurants and dining facilities licensed under this subchapter shall seat a minimum of one hundred (100) persons. Only permanent seating, excluding bar-type stools, patio seating or temporary chairs available as needed, satisfied this seating threshold.

(B) The sale of alcoholic beverages shall be accessory to the sale of food, offered only during times in which the licensee's kitchen and food service staff is on duty.

(C) Restaurants and dining facilities licensed under this subchapter shall derive a minimum of seventy percent (70%) of their gross receipts from the sale of food as certified by periodic documentation.
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am. Ord. 2014-12, passed 9-23-14) 2015 S-20 39


§ 117.02 APPLICATION REVIEW.

(A) No alcoholic beverage shall be sold in the city, except as authorized under KRS 242.185 as amended and substituted by KRS 243, et seq. and/or KRS 243.034 and this subchapter. Authorization under this subchapter shall be obtained only upon the city's receipt and approval of an application in accordance with this subchapter, the city's issuance of a license, the ABC's receipt and approval of an application in accordance with applicable law and the ABC's issuance of a license.

(B) Application submittal and review shall be conducted as follows:

(1) Application and fee.

(a) Persons requesting approval and license authorizing
the sale of alcoholic beverages by the drink pursuant to KRS 242.185 as amended and substituted by KRS 243, et seq. and/or KRS 243.034 and this subchapter shall submit a completed application to be obtained from the Office of Mayor. The Office of Mayor shall determine the form of this application and the information required by it. That form and information shall be reasonably calculated to permit a reviewing officer to determine compliance with this subchapter. In any event, the city shall accept an application in the form approved and accepted by the Alcoholic Beverage Control (ABC). Any applicant utilizing the ABC form shall provide any additional information not otherwise required by the ABC form by supplemental attachment to the application.

(b) Applicants for a license under this subchapter shall pay a license fee of eight hundred dollars ($800) pursuant to the provisions of KRS 243.070.

(2) Supplemental information. An applicant currently operating a restaurant or dining facility of comparable size to that which is the subject of the application and one that offers the sale of alcoholic beverages by the drink shall supplement the required application. The required supplemental data shall include information related to its current operation, which reasonably demonstrates the likelihood that applicant's business in the city will yield income earned through the sale of food equal to or greater than seventy percent (70%) of its gross receipts. This supplement data shall include, but not necessarily be limited to, the following specific information:

(a) The population of the community in which it currently operates;

(b) Alcohol sales permitted in the community in which it currently operates; and

(c) The hours of operation, including any differentiation between the hours during which food and drinks are sold.

(3) Periodic information. Applicants to whom a license is issued authorizing the sale of alcoholic beverages by the drink pursuant to this subchapter shall provide periodic information demonstrating compliance with the continuing requirement that seventy percent (70%) of the applicant's business income is earned from the sale of food.

(a) This documentation shall be provided on a schedule to be coordinated with the applicant's quarterly tax filings. Regardless of the applicant's filing schedule, the first of the applicant's periodic information shall be submitted not later than six

(6) months after applicant commenced sale of alcoholic beverages pursuant to this subchapter.

(b) This information shall consist of a certificate from a Certified Public Accountant familiar with the applicant's pertinent business records. This certificate shall state: "I have conducted a limited scope audit according to accepted accounting principles of the pertinent records of, Licensee under Ordinance 2013-24, and certify that the Licensee earned at least seventy percent (70%) of its gross receipts from the sale of food during the quarter ending."

(c) This certificate shall include a brief description of the methodology utilized in the determination of the certified percentage.

(4) Alcoholic Beverage Control (ABC) Administrator. As provided by KRS 241.160, wet or moist cities with population equal to or greater than 3,000 shall create the office of City Alcoholic Beverage Control (ABC) Administrator, or shall assign the duties of this office to a presently established city office. The duties of the ABC Administrator shall be assigned to the Office of the Mayor and/or his or her designee. All transactions required for compliance or enforcement of this chapter shall be directed to or issued by the Mayor and/or his or her designee. He or she shall review the applications along with supplemental and periodic information and issue licenses authorizing the sale of alcoholic beverages by the drink pursuant to this section. The city’s ABC Administrator and employees with duties arising under this chapter shall comply with KRS 241.180 and 241.190.

(5) Forms. All forms reasonably necessary for the implementation of the subchapter shall be provided by the Mayor's office.

(6) Auditing authority. The Mayor and the city's administrating officer is empowered to demand access to the pertinent business records of any applicant or licensee for the purpose of conducting an independent audit of those records to substantiate compliance with this subchapter. The Mayor and the city's administrating officer may obtain such outside professional services as are reasonably necessary to conduct the audit. In the event the independent audit reveals non-compliance by the applicant or licensee, the cost of the audit shall be assessed to the licensee.
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am. Ord. 2014-12, passed 9-23-14)


§ 117.03 ISSUANCE AND RENEWAL OF LICENSES.

(A) Issuance. Upon satisfactory compliance with all city imposed requirements, the city's administrating officer shall sign an acknowledgement of that compliance. The ABC shall rely upon that acknowledgement and upon review of the application to the ABC, shall issue an appropriate license. Upon presentation of the ABC issued license, the city's administrating officer shall issue the city's license.

(B) Renewal. A license issued pursuant to this subchapter shall authorize the sale of alcoholic beverages for one (1) year. The license may be renewed annually thereafter upon a showing of compliance with applicable regulations and the payment of a renewal fee of eight hundred dollars ($800).
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am. Ord. 2014-12, passed 9-23-14)


§ 117.04 OPERATIONAL REGULATIONS.

(A) Hours. No licensee operating pursuant to this subchapter shall be open for business earlier than 6:00 a.m. or later than 12:00 midnight, Monday through Thursday. Friday and Saturday license operating hours pursuant to this subchapter shall be 6:00 a.m. and no later than 1:00 a.m.

(B) Sales permitted only when food available. The provisions of division(A) above, notwithstanding, no licensee operating pursuant to this subchapter shall sell alcoholic beverages at any time at which the licensee's kitchen and food service staffs are off duty. This requirement is necessary for accomplishment of the legislative intent stated in § 117.01 and in KRS 242.185 as amended and substituted by KRS 243, et seq. and/or KRS 243.034. No carryout alcohol sales shall be permitted and no alcohol shall be taken off the premises.

(C) No Sunday sales permitted. The license issued under KRS 242.185 as amended and substituted by KRS 243, et seq. and/or KRS 243.034 and this subchapter authorizes the sale of alcoholic beverages only Monday through Saturday. Sunday sales of alcoholic beverages can be authorized only upon the city's adoption of an ordinance expressly providing for such sales.
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am.Ord. 2014-12, passed 9-23-14)


§ 117.05 HEARINGS.

(A) Show cause hearing. Hearings on alleged violations shall be in the manner of a “show cause” hearing at which the licensee shall bear the burden of persuasion that the alleged violation did not occur. The licensee shall be afforded the right to:

(1) Reasonable notice of the charge;

(2) Representation;

(3) Presentation of such evidence and witnesses as in its discretion are appropriate to the issue; and

(4) A finding reasonably supported by the evidence.

(B) Hearing Officer. Pursuant to § 117.02(D) above, the city administrating officer may designate a city employee or other person as the hearing officer to conduct the hearing provided for in this section. In the event of such a designation, the hearing officer's determination shall be in the form of a recommendation upon which the city administrating officer shall determine appropriate action.

(C) Appeal. Pursuant to KRS 241.200 all orders of the city administrating officer may be appealed to the Alcoholic Beverage Control Board.

(D) Referral to ABC. In lieu of the hearing authority provided above, allegations of violations of this subchapter may be referred to the Alcoholic Beverage Control Board for determination.
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am. Ord. 2014-12, passed 9-23-14)


§ 117.15 MANDATORY RESPONSIBLE BEVERAGE SERVICE TRAINING.

All persons employed in the selling and serving of alcoholic beverages shall participate in a city-approved responsible beverage service training program. For a responsible beverage service training program to be approved by the city, it must effectively train its participants in the identification of false age documentation and recognition of characteristics of intoxication. The city will not require enrollment in particular classes, but only that the training be obtained from a recognized program meeting the goals expressed in this subchapter.
(Ord. 2004-28, passed 12-6-04)


§ 117.16 LICENSES.

(A) All persons employed by a person or entity licensed under §§ 117.01 et seq. for the sale of alcoholic beverages whose job duties include the sale or service of alcoholic beverages or the management of premises on which alcoholic beverages are served, shall complete responsible beverage service training from a program approved by the city.

(B) All persons licensed under §§ 117.01 et seq. for the sale of alcoholic beverages shall complete responsible beverage service training from a program approved by the city.

(C) All entities licensed under §§ 117.01 et seq. for the sale of alcoholic beverages shall designate a person who, on behalf of the entity, shall complete responsible beverage service training from a program approved by the city. The person designated must have the authority to implement or amend the licensee's on-premise practices for selling and serving alcohol.

(D) All persons required to complete training under divisions (A), (B) and (C) shall complete that training within forty-five (45) days of the date on which the person first becomes subject to the training requirement. All persons completing the training required by this section shall be recertified in responsible beverage service  training from a program approved by the city not less than once every three (3) years thereafter.

(E) All persons or entities licensed under §§ 117.01 et seq. for the sale of alcoholic beverages shall require all their employees who are engaged in the selling or serving of alcoholic beverages or the managing of premises on which such sales are offered to complete a city-approved responsible beverage service training class according to the provisions of this subchapter.
(Ord. 2004-28, passed 12-6-04)


§ 117.17 REQUIRED INFORMATION AND SIGNAGE TO ASSIST THE TRAINED SERVERS AND SELLERS.

(A) Driver's license guide and compilation of laws. The licensee shall maintain the following information on the premises, in a location accessible at all times to all employees of the licensed establishment:

(1) A current driver's license guide, which shall include license specifications for both adults and minors for each state (including Canadian provinces), and shall list such information from at least five (5) years prior to the present date; and

(2) A current compilation of the laws relating to the sale and possession of alcoholic beverages in Kentucky. This compilation must also include §§ 117.01 et seq.

(B) Signage. The licensee shall maintain on the premises, in all customer areas, current signage related to underage consumption of alcoholic beverages and to driving under the influence of alcohol. One

(1) sign must be located behind the counter/bar and one (1) sign must be present in each additional room or section within the restaurant area in which the writing on the sign behind the counter/bar is not clearly legible. The sign(s) must have dimensions of at least one (1) foot by one (1) foot with letters at least one-half (½) inch in height. All signs must be comfortably readable from a distance of fifteen (15) feet. Any signs required by this subchapter for which there are comparable ABC requirements shall be maintained in conformity with KY ABC regulations.

(C) Personnel certification records. Each licensee shall maintain a file on its business premises for each person connected with its business for whom training is required under this subchapter. That file shall contain the name, job description, date of employment and proof of certification pursuant to this subchapter of each employee, officer and agent subject to the training requirement provided in this subchapter. During business hours, this file shall be available to the person or persons designated by the Mayor's Office with responsibility for enforcement of this subchapter and §§ 117.01 et seq. related to the licensing of premises for the sale of alcoholic beverages.
(Ord. 2004-28, passed 12-6-04)


§ 117.18 SELLER/SERVER TRAINING AGENCY.

(A) Licensees and servers shall participate in a training program with an approved responsible beverage service training agency, selected and approved by the city.

(B) Compensation. The approved training agencies shall not be compensated or otherwise reimbursed by the city. The training agencies shall recover costs and profit through fees collected from the persons receiving the training.

(C) Training. The approved training agencies shall certify the qualifications of all required participants as required by this subchapter. All new employees, officers or agents shall complete the training with sixty (60) days following their hiring or other event which subjects that person to the training requirement. New employees, officers or agents failing to complete the training within the prescribed time shall not work on the premises after the expiration of that period until they have successfully completed such training.

(D) Standards for certification. The training agency must reasonably instruct upon and certify the participants' competence in at least the following:

(1) Pertinent laws and ordinances related to the sale of alcohol;

(2) Verification of age, forms of identification and usual methods of false or misleading age identification;

(3) The effect of alcohol on humans and the physiology of alcohol intoxication, including the effect of alcohol on pregnant women, their fetuses and other situations involving the use of alcohol by persons vulnerable to its effects;

(4) Recognition of the signs of intoxication;

(5) Strategies for intervention and prevention of underage and intoxicated persons from consuming alcohol;

(6) The licensee's policies and guidelines, including the employee's role in observing those policies, and

(7) Potential liability of persons serving alcohol.

(E) Qualifications for training agencies. The training agency shall have a minimum of two (2) years actual experience in responsible beverage service and alcohol awareness training. Each instructor shall be certified to teach his or her subject matter.

(F) Personnel and physical resources. The training agencies shall have sufficient personnel and physical resources to provide responsible beverage service training course to newly hired employees, officers and agents as required by this subchapter.
(Ord. 2004-28, passed 12-6-04)


§ 117.99 PENALTY.

(A) Fines. Violations of §§ 117.01 et seq. shall be punishable by fine of up to five hundred dollars ($500) for each offense. Complaints alleging violations of §§ 117.01 et seq. may be filed in the Grant District Court and prosecuted as all other municipal ordinance violations. Each day of each violation shall constitute a separate offense.

(B) Administrative action. Violations of §§ 117.01 et seq. shall constitute grounds for administrative action by the city's administrating officer. Appropriate actions by the administrating officer upon the determination of a violation shall include a warning and probationary period in which the violation is corrected, a license suspension or license revocation. Suspensions may be satisfied by the payment of a fine of fifty dollars ($50) per day. The action of the administrating officer shall be commensurate with the seriousness of the violation. Upon a finding of a subsequent material violation, the license may be suspended for such time as is commensurate with the seriousness of the offenses or, if previously suspended, revoked. Subsequent suspensions may be satisfied by the payment of a fine of fifty dollars ($50) per day for no more than one-half (½) of the suspension.

(C) Consistent with the provisions of this chapter, the Mayor, or his or her designee, is charged with primary responsibility for enforcement of §§ 117.15 et seq.

(D) Penalties for violation of §§ 117.15 et seq. shall be assessed against the person or entity holding a license for the sale of alcoholic beverage under §§ 117.01 et seq. The individual employee shall not be civilly or criminally liable for violations of §§ 117.15 et seq. The penalties assessed against the licensee for violations of §§ 117.15 et seq. are as follows:

(1) For the first violation, a fine not exceeding fifty dollars ($50).

(2) For subsequent violations, within a two(2)-year period, a fine not exceeding five hundred dollars ($500) and suspension of the licensee's city liquor license for not less than three (3) days nor more than thirty (30) days. The licensee may redeem the days of that suspension for the payment of five hundred dollars ($500) each.

(3) Each day of each violation shall constitute a separate violation.
(Ord. 2004-27, passed 12-6-04; Am. Ord. 2004-28, passed 12-6-04; Am. Ord. 2013-24, passed 9-17-13; Am. Ord. 2014-12, passed 9-23-14)