Kentucky HB 536: AN ACT relating to alcoholic beverages.

Bill Text

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AN ACT relating to alcoholic beverages. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. KRS 242.1292 IS REPEALED AND REENACTED TO READ 3
AS FOLLOWS: 4
(1) Any license issued by a state or local administrator under this section before the 5
effective date of this Act shall: 6
(a) Remain valid and in effect unless the license is surrendered to the 7
department as authorized under KRS Chapters 241 to 244; 8
(b) Continue to be subject to the regulatory license fee assessed under KRS 9
243.075, and the jurisdiction that issued the license may continue to assess 10
the regulatory license fee; and 11
(c) Not count toward the total for any other city, county, or state license limits. 12
(2) (a) Notwithstanding any limitations imposed on the city's taxing or licensing 13
power by KRS 243.070, for any city with a limited sale precinct established 14
as wet territory under this section prior to the effective date of this Act, the 15
governing body of the city may continue to impose a regulatory license fee 16
upon the gross receipts of each establishment located in said city licensed to 17
sell alcoholic beverages. 18
(b) The regulatory license fee may be levied at the beginning of each city 19
budget period at the percentage rate reasonably estimated to fully reimburse 20
the city for the estimated costs of any additional policing, regulatory, or 21
administrative expenses related to the sale of alcoholic beverages in the city. 22
(c) The regulatory license fee shall be in addition to any other taxes, fees, or 23
licenses permitted by law, but a credit against the fee shall be allowed in an 24
amount equal to any licenses or fees imposed by the city pursuant to KRS 25
243.070. 26
Section 2. KRS 243.033 is amended to read as follows: 27

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(1) A caterer's license may be issued as a supplementary license to a caterer that holds a 1
quota retail package license, a quota retail drink license, an NQ1 license, an NQ2 2
license, or a limited restaurant license. 3
(2) The caterer's license may be issued as a primary license to a caterer in any wet 4
territory or in any moist territory under KRS 242.1244 for the premises that serves 5
as the caterer's commissary and designated banquet hall. No primary caterer's 6
license shall authorize alcoholic beverage sales at a premises that operates as a 7
restaurant. The alcoholic beverage stock of the caterer shall be kept under lock and 8
key at the licensed premises during the time that the alcoholic beverages are not 9
being used in conjunction with a catered function. 10
(3) The caterer's license shall authorize the caterer to: 11
(a) Purchase and store alcoholic beverages in the manner prescribed in KRS 12
243.088, 243.250, and 244.260; 13
(b) Transport, sell, serve, and deliver alcoholic beverages by the drink at locations 14
away from the licensed premises or at the caterer's designated banquet hall in 15
conjunction with the catering of food and alcoholic beverages for a customer 16
and the customer's guests, in: 17
1. Cities and counties established as moist territory under KRS 242.1244 if 18
the receipts from the catering of food at any catered event are at least 19
seventy percent (70%) of the gross receipts from the catering of both 20
food and alcoholic beverages; 21
2. Precincts established as moist territory if the receipts from the catering 22
of food at any catered event are at least ten percent (10%) of the gross 23
receipts from the catering of both food and alcoholic beverages. This 24
subparagraph shall supersede any conflicting provisions of KRS 25
Chapters 241 to 244; 26
3. Wet cities and counties in which quota retail drink licenses are not 27

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available if the receipts from the catering of food at any catered event 1
are at least fifty percent (50%) of the gross receipts from the catering of 2
both food and alcoholic beverages; or 3
4.[3.] All other wet territory if the receipts from the catering of food at any 4
catered event are at least thirty-five percent (35%) of the gross receipts 5
from the catering of both food and alcoholic beverages; 6
(c) Receive and fill telephone orders for alcoholic beverages in conjunction with 7
the ordering of food for a catered event; and 8
(d) Receive payment for alcoholic beverages served at a catered event on a by-9
the-drink, cash bar, or by-the-event basis. The caterer may bill the customer 10
for by-the-function sales of alcoholic beverages in the usual course of the 11
caterer's business. 12
(4) A caterer licensee shall not cater alcoholic beverages at locations for which retail 13
alcoholic beverage licenses or special temporary licenses have been issued. A 14
caterer licensee may cater a fundraising event for which a special temporary 15
alcoholic be