804 KAR 4:400E. ABC basic application and renewal form incorporated by reference

      Section 1. Initial Application for Alcoholic Beverage License. An applicant for an alcoholic beverage license shall complete and submit to the department[of Alcoholic Beverage Control] the Basic Application for Alcoholic Beverage License, with the exception of an applicant for:

      (1) A special agent/solicitor license, out-of-state producer/supplier of distilled spirits/wine license,[or] out-of-state producer/supplier of malt beverage license, or a transporter license; or

      (2) A temporary license[; or

      (3) An extended hours, supplemental bar, special Sunday, or sampling license].

 

      Section 2. Application for License Renewal.[In addition to the Basic Application for Alcoholic Beverage License required by Section 1 of this administrative regulation, an applicant shall complete and submit to the Department of Alcoholic Beverage Control the special application form required by 804 KAR 4:410 if applicable.

 

      Section 3.] A licensee seeking to renew[who is renewing] a license pursuant to KRS 243.090 shall complete and submit to the department[of Alcoholic Beverage Control] the Application for License Renewal.

 

      Section 3.[4.] Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Basic Application for Alcoholic Beverage License", July 2016[June 2015]; and

      (b) "Application for License Renewal", July 2016[June 2015].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the department’s Web site, http://www.abc.ky.gov/.

 

STEVEN A. EDWARDS, Commissioner

DAVID A. DICKERSON, Secretary

      APPROVED BY AGENCY: July 14, 2016

      FILED WITH LRC: July 15, 2016 at 11 a.m.

      CONTACT PERSON: Melissa McQueen, Staff Attorney, Department of Alcoholic Beverage Control, 1003 Twilight Trail, Frankfort, Kentucky 40601, phone [phone], fax [phone], email [e-mail].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Melissa McQueen

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation incorporates the forms the department uses to issue and renew alcoholic beverage licenses.

      (b) The necessity of this administrative regulation: This regulation is necessary because the department is required by statute to set forth what information is needed to obtain or renew an alcoholic beverage license.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 243.380 and 243.390 require the department to set forth what information is required to obtain or renew a license.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation clarifies what information needs to be provided to the department in order to obtain or renew an alcoholic beverage license. By incorporating the application and renewal application, the information that is required to apply for, or renew, an alcoholic beverage license is ascertainable.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment updates the renewal form and includes information on how to utilize the Kentucky One-Stop Business ("KyBOS") Portal for on-line renewals. Additionally, the basic application and renewal application forms have also changed in order to comply with the numerous provisions of Senate Bill 11 ("SB 11"), which created several new license types.

      (b) The necessity of the amendment to this administrative regulation: The renewal application needed to be amended to add information about the KyBoS Portal website for licensees to renew online through that portal, and this amended form needs to be incorporated into the administrative regulation. Additionally, the basic application and renewal application forms have also been amended to account for new license types created by SB 11.

      (c) How the amendment conforms to the content of the authorizing statutes: KRS 243.380 and 243.390 require the department to set forth what information is required to obtain or renew a license. This amendment updates the renewal form to clarify what website licensees need to use to utilize the KyBoS Portal if they wish to renew online. With this amendment, the basic application and renewal application forms will also comply with the requirements of SB 11, which goes into effect on July 15, 2016.

      (d) How the amendment will assist in the effective administration of the statutes: This administrative regulation amendment will make the basic application and renewal application compliant with the provisions of SB 11, which adds new license types. Additionally, it clarifies what information licensees need in order to renew their alcoholic beverage licenses through the KyBoS Portal.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Any person or entity who wishes to apply for any alcoholic beverage license, or renew an alcoholic beverage license online, will be affected by this administrative regulation. The Department of Alcoholic Beverage Control will also be affected by this regulation.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The required actions of applying, or renewing, a license are no different than the process the licensees and applicants currently follow to obtain or renew an alcoholic beverage license, although they will be receiving information on how to do this through the KyBos Portal instead of going directly through the department’s website.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The KyBos Portal will be utilized for on-line renewals and is incorporated by reference on the revised renewal form. The Department’s proposed budget allocates $290,000 per year of its restricted funds for on-line renewals through the KyBos Portal. Throughout discussions with the Department about utilizing the KyBos Portal for online renewals, the Commonwealth Office of Technology ("COT"), through its representative(s), has repeatedly stated that the Department will have no additional costs for using the KyBos Portal.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): There are no financial benefits to this administrative regulation amendment.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: It is estimated that this will cost the Department approximately $290,000 per year to utilize the KyBos Portal.

      (b) On a continuing basis: It is estimated that this will cost the Department approximately $290,000 per year to utilize the KyBoS Portal for online license renewals.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: It is estimated that it will cost the Department approximately $290,000 per year to utilize the KyBos Portal for online license renewals.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: There is no anticipated increase in fees or funding necessary to amend this administrative regulation based upon representations by COT.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increased any fees: This administrative regulation amendment does not directly or indirectly establish or increase any fees.

      (9) TIERING: Is tiering applied? No tiering is applied because this regulation applies equally to the regulated entities

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      (1) What units, parts or divisions of state or local government (including cities, counties, fire departments or school districts) will be impacted by this administrative regulation? The Department of Alcoholic Beverage Control and the Commonwealth Office of Technology are the only government agencies expected to be impacted by this administrative regulation.

      (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 241.060(1) authorizes the board to promulgate administrative regulations. The One-Stop Business Portal was created by KRS 14.250.

      (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. The Department of Alcoholic Beverage Control is expected to spend approximately $290,000 per year on this program. No revenue will be generated by this administrative regulation.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? No revenue will be generated by this administrative regulation.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No revenue will be generated by this administrative regulation.

      (c) How much will it cost to administer this program for the first year? The cost to administer this amendment should be approximately $290,000 for the first year.

      (d) How much will it cost to administer this program for subsequent years? The cost to administer this amendment should be approximately $290,000 for each subsequent year.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation:

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: Additional costs to administer these regulatory changes at the local government level for this year or subsequent years should be approximately $290,000 per year.

Notation

      During its 2016 regular session, the General Assembly passed Senate Bill 11, which amended numerous provisions within the statutory scheme that regulates the alcoholic beverage industry. See 2016 Ky Acts ch. 80. Senate Bill 11 is effective on July 15, 2016. Senate Bill 11 created new license types and made certain businesses eligible for existing licenses. The new license types are Rectifier’s Class A license, Rectifier’s Class B license, and Authorized Public Consumption license. In addition, Senate Bill 11 made distilleries and bed and breakfasts eligible for an NQ3 license. This emergency administrative regulation will ensure that the Department may issue the newly created licenses established by the General Assembly in Senate Bill 11 on its effective date. This emergency administrative regulation will also allow distilleries and bed and breakfasts to apply for an NQ3 license on the effective date of Senate Bill 11. The Department’s existing forms do not reflect these provisions of Senate Bill 11, so the forms must be amended. Therefore, this emergency administrative regulation is required pursuant to KRS 13A.190(a)(3) to meet a deadline for the promulgation of an administrative regulation that is established by state law. This emergency administrative regulation shall be replaced by an ordinary administrative regulation to be concurrently filed with the Regulations Compiler. The ordinary administrative regulation is identical to this emergency administrative regulation.

MATTHEW G. BEVIN, Governor

DAVID A. DICKERSON, Secretary

STEVEN A. EDWARDS, Commissioner

      RELATES TO: KRS 164.772, 241.060(1), 243.090, 243.380, 243.390

      STATUTORY AUTHORITY: KRS 241.060(1), 243.380, 243.390

      EFFECTIVE: July 15, 2016

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060(1) authorizes the board to promulgate reasonable administrative regulations governing procedures relative to the applications for and revocation of licenses. KRS 243.380(2) and 243.390 require the board to promulgate an administrative regulation to establish the license application form. This administrative regulation prescribes the [basic]forms to be used to apply for and renew an alcoholic beverage license.