2011 Kentucky Revised Statutes CHAPTER 243 ALCOHOLIC BEVERAGES -- LICENSES AND TAXES 243.540 Scope of section -- Disposition of stock upon revocation, surrender, court disposition, or nonrenewal of license -- Disposition upon bankruptcy.
KY Rev Stat § 243.540 (1996 through Reg Sess) What's This?
243.540 Scope of section -- Disposition of stock upon revocation, surrender, court
disposition, or nonrenewal of license -- Disposition upon bankruptcy.
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The provisions of this section shall apply to any licensee who is unable to continue
in business at the licensed premises because of an act of God; a casualty; an
acquisition by a federal, state, city, or other governmental agency under the power
of eminent domain granted to the government or agency; a voluntary or involuntary
acquisition by any private corporation through the corporation's power of eminent
domain; a loss of lease because the landlord fails to renew an existing lease; court
action; or other verifiable business reason.
If a license issued by the department has been revoked, the former licensee may,
under the supervision of the state director, dispose of and transfer his or her stock to
another licensee if the disposition is completed within ninety (90) days and the
licensee is a distiller, rectifier, vintner, or brewer. The disposition shall be
completed within thirty (30) days if the licensee is a wholesaler or distributor or
within twenty (20) days if the licensee is a retailer.
A retail licensee in good standing with the department who voluntarily ceases to
operate his or her business for any reason other than revocation by the board or a
court order shall dispose of all alcoholic beverage inventory within thirty (30) days
of the event. The following requirements shall apply to the disposition of the
licensee's inventory:
(a) If the premises is still open to the public and the licensee has not yet
surrendered the license, the licensee shall sell alcoholic beverages only to the
public and shall not sell below costs;
(b) If a licensee has terminated his or her business and has surrendered his or her
license to the department, he or she shall submit a written request for approval
from the state director within ten (10) days in advance of the sale to dispose of
the licensee's remaining inventory. The request shall identify the retailer who
is purchasing the inventory, the proposed date of the sale, and the quantity,
types, and brands of alcohol to be sold; and
(c) If a licensee has more than one (1) licensed retail premises and closes one (1)
or more retail premises and seeks to transfer his or her inventory to another
licensed retail premises he or she owns, he or she shall submit a request in
writing to the state director at least ten (10) days before the inventory is
transferred. The request shall identify the premises to which the alcohol is
being transferred, the proposed date of the transfer, and the quantity, types,
and brands of alcohol to be sold.
If a retail licensee files for bankruptcy or is directed by a court to dispose of
inventory to satisfy a lien or judgment, the inventory may be sold only to a retail
alcoholic beverage licensee. The bankrupt licensee or the licensee subject to the
court order shall notify the department of the sale and shall attach a copy of the
court order or the judgment directing the sale and a list of the quantity, types, and
brands of alcohol to be sold. Any licensee who purchases the inventory shall notify
the department within five (5) days after the transfer of the specific inventory sold.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 581, effective July 15, 2010. -- Amended
2000 Ky. Acts ch. 435, sec. 14, effective July 14, 2000. -- Amended 1998 Ky. Acts
ch. 522, sec. 14, effective July 15, 1998. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. sec. 2554b-144.
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