Bench & Bar

NOV 2013

The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.

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NQ4 Retail Malt Beverage Drink license/NQ Retail Malt Beverage Package license – SB 13 created the NQ4 retail malt beverage drink and the NQ retail malt beverage package licenses by dividing the privileges of the former retail malt beverage license. The NQ4 retail malt beverage drink license permits malt beverage drink sales only for consumption on a licensed premises.19 The NQ retail malt beverage package license permits malt beverage package sales only for consumption off the licensed premises.20 It is possible to simultaneously hold both licenses.21 The two separate retail malt beverage licenses were created to eliminate the licensing scheme conflict with retail distilled spirits and wine license types, which separated its retail license types by either by the drink allowing consumption only on the premises or by the package allowing consumption only off the premises prior to SB 13. Special Temporary Distilled Spirits and Wine Auction license – SB 13 clarified that a caterer may cater an event for which a special temporary distilled spirits and wine auction license has been issued.22 Bonds – Bonds were eliminated as a requirement to the following licensing types: distiller's, winery, brewer's, rectifier's, non-resident distilled spirits/wine transporter, wholesaler's, and bottling house. Bonds are still required by federal law for some licensees. Master Files – SB 13 amended KRS 243.380 to allow a business with more than two licensed premises in Kentucky to submit common information about ownership, management and criminal background checks (if current) only once for all separately licensed premises in one master file. Such businesses only need to amend the master file information for material changes required by KRS 243.390(2) or ownership changes described in KRS 243.360. Bundling of License Types The "bundling" of the following license types eliminated unnecessary licenses without changing the qualifications and privileges of the former license types: Rectifier's license – The former blender's license was eliminated and its privileges were consolidated into the rectifier's license.23 Special Agent or Solicitor's licenses – The nonresident special agent or solicitor's license was eliminated and its privileges consolidated into a general license for both instate and out-of-state licensees.24 Transporter's license – The following six licenses types were consolidated into one transporter's license25: transport non-resident, through transporter's, freight forwarder's, transporter's (for liquor), transporter (malt beverage) and special beer transporter's. Malt Beverage Storage license – The following three licenses types were consolidated into one malt beverage storage license26: the malt beverage warehouse, distributor's storage and the off-premise retail storage. Distilled Spirits/Wine Storage license – The special storage or warehouse license and the bonded warehouse license were consolidated into one distilled spirits/wine storage license.27 Special Non-Beverage Alcohol license – The special nonindustrial alcohol license and special industrial alcohol license were consolidated into the non-beverage alcohol license.28 The holder of the new special non-beverage alcohol license is permitted to make ethanol fuel.29 Special Temporary license – Special events held on unlicensed premises have been required to obtain certain types of "temporary" licenses to sell alcoholic beverages for just that special event. The former special temporary malt beverage license, special temporary wine license and special temporary liquor/wine license were consolidated into the special temporary license.30 The special temporary license includes only the privileges contained in the former licenses and only authorizes alcoholic beverage sales types that are permissible in the territory in which the event is held. Specifically, a special temporary license only authorizes distilled spirits drink sales if the qualifying special event occurs in a wet territory where quota retail drink licenses are permitted.31 In all other cities and counties, the holder of a special temporary license may only sell wine or malt beverages by the drink.32 9 beverages - distilled spirits, wine and beer. An NQ1 license combines the former convention center, horse track, automobile racetrack and the air/rail system licenses. The NQ1 license grants the right to sell distilled spirits, wine and malt beverages.16 An NQ2 drink license includes the former restaurant drink, motel drink, restaurant wine, airport drink and riverboat licenses.17 Although the NQ2 license is also a combo license, you should advise your clients that the "combo" designation only adds the privilege to sell malt beverage. Accordingly, a licensee that previously qualified for a restaurant wine license (restricted to wine sales only) will now be allowed to sell only wine and beer, not distilled spirits. All other holders of an NQ2 license that previously qualified to hold a restaurant drink, motel drink, airport drink or a riverboat license have the right to sell distilled spirits, wine and malt beverages. An NQ3 license now contains what was previously known as the special private club, dining car liquor and dining car beer licenses; these holders have the right to sell distilled spirits, wine and malt beverages.18 B&B; • 11.13

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