804 KAR 4:410E. Special applications and registration forms incorporated by reference

      Section 1. Additional[Special] Application Forms. An applicant applying for an alcoholic beverage license not included in 804 KAR 4:400 shall complete and submit to the Department of Alcoholic Beverage Control the applicable additional[special] application form for the specific license type for which the application is made. The additional[special] application forms are listed below:

      (1) Transporter/Solicitor/Out-Of-State[Special Agent/Solicitor, Out-of-State Producer/Supplier of Distilled Spirits/Wine, Out-of-State Producer/Supplier of Malt Beverage] Application;

      (2) Special Temporary License Application;

      (3) Supplemental License Application; or

      (4) Rectifier’s[Distiller’s] License: Change of License Application.

 

      Section 2. Registration Forms. If[An] applicable, a licensee shall complete and submit the [following registration forms:

      (1) Microbrewer’s Retail Gross Receipts Report to Distributor to be submitted to the Department of Revenue; or

      (2)]Product Registration Online form. It may[to] be completed electronically at:

      (1)[(a)] https://www.productregistrationonline.com/GetStarted/Ky#selectPermit;

      (2)[(b)] https://www.productregistrationonline.com/distributor/login; or

      (3)[(c)] https://www.productregistrationonline.com/producer/login.

 

      Section 3. Additional Forms. An applicable licensee shall complete and submit the following additional forms:

      (1) Dormancy Request for Quota Retail Licenses;

      (2) Amendment to Application Authorization Form;

      (3) ABC Retailer Sampling Notification[Request];

      (4) Request for Minors on Premises;

      (5) Affidavit of Ownership;

      (6) Affidavit of Non-Transfer;

      (7) Notice of Surrender of License(s);

      (8) Request to Participate in the Master File Licensing Process;

      (9) Application Request for Approval of Partial Transfer of Ownership to my Original License Application; or

      (10) Remittance Form.

 

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

      (a) "Transporter/Solicitor/Out-Of-State[Special Agent/Solicitor, Out-of-State Producer/Supplier of Distilled Spirits/Wine, Out-of-State Producer/Supplier of Malt Beverage] Application", July 2016[September 2014];

      (b) "Special Temporary License Application", July 2016[September 2014];

      (c) "Supplemental License Application", July 2016[2015];

      (d) "Presentation/Speaker Request Form", March 2016[Microbrewer’s Retail Gross Receipts Report to Distributor", June 2015];

      (e) "Product Registration Online", September 2014;

      (f) "Rectifier’s[Distiller’s] License: Change of License Application", May 2016[July 2014];

      (g) "Dormancy Request for Quota Retail Licenses", June 2013;

      (h) "Amendment to Application Authorization Form", May 2016[July 2014];

      (i) "ABC Retailer Sampling Notification[Request]", May 2016[June 26, 2013];

      (j) "Request for Minors on Premises", June 2013;

      (k) "Affidavit of Ownership", June 2013;

      (l) "Affidavit of Non-Transfer", June 2013;

      (m) "Notice of Surrender of License(s)", June 2013;

      (n) "Request to Participate in the Master File Licensing Process", June 2013;

      (o) "Application Request for Approval of Partial Transfer of Ownership to my Original License Application", June 2013;[and]

      (p) "Remittance Form", February 2016; and

      (q) "Order Form", 2015[3/27/2015].

      (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

 

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation incorporates by reference special application forms for specific licenses and required registration forms.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to notify applicants and licensees of the forms used by the department.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 241.060 authorizes the board to promulgate administrative regulations relating to the licensing of alcoholic beverages.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist applicants and licensees in determining which forms the department uses in the alcoholic beverage licensing process.

      (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: The amendment incorporates forms the department uses and changes the applications to comply with the provisions of Senate Bill 11 ("SB 11"), which is effective July 15, 2016. Additionally, this amendment removes the "Microbrewer’s Retail Gross Receipts Report to Distributor" form from the list of forms used by this department. The form was created by this department but is used by the Department of Revenue and they have agreed to take custody of this form and incorporate it into their regulations.

      (b) The necessity of the amendment to this administrative regulation: The amendment is necessary to comply with statutory changes to comply with SB 11, which added new license types and amended numerous alcoholic beverage statutes in Chapters KRS 241 to 244.

      (c) How the amendment conforms to the content of the authorizing statutes: The department is authorized to promulgate administrative regulations pursuant to KRS 214.060(1).

      (d) How the amendment will assist in the effective administration of the statutes: The amendment will make the department’s forms compatible with the provisions of SB 11, which will allow the department to review applications, and issue licenses for the new license types that have been created.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: All licensees and potential licensees will be affected by this amendment as several of the department’s applications and forms have changed. The Department of Revenue is affected by this regulation as they have agreed to maintain the "Microbrewer’s Retail Gross Receipts Report to Distributor" as that form is used by that department and not by the Department of Alcoholic Beverage Control.

      (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: Current licensees who have a Rectifier’s license will have to determine if they meet the criteria for a Class B license, and if so, they will have to fill out the form requesting the change and submit it to the department. Applicable licensees will need to submit the appropriate form as needed in order to comply with various statutes. These are processes they are already required to complete.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There are not expected to be any additional costs.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): There are not expected to be any benefits to licensees as a result of this administrative regulation. A licensee which qualifies for the new Class B Rectifier’s license and completes the license change form will see a benefit of paying a lesser licensing fee.

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

      (a) Initially: No extra costs are anticipated to amend this administrative regulation.

      (b) On a continuing basis: None.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: No funding is used to implement and enforce the amendment of this administrative regulation.

      (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.

      (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 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 Department of Revenue are impacted by this 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.

      (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. No additional expenditures are expected.

      (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? This administrative regulation amendment is not expected to generate any revenue.

      (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? This administrative regulation amendment will not generate any revenue.

      (c) How much will it cost to administer this program for the first year? The cost to administer this amendment should be minimal, if any.

      (d) How much will it cost to administer this program for subsequent years? The cost to administer this amendment should be minimal, if any.

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

      Revenues (+/-): This administrative regulation amendment is not expected to generate any revenue.

      Expenditures (+/-):

      Other Explanation: Additional costs to administer these regulatory changes at the local government level for this year or subsequent years should be minimal or none.

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 amended KRS 243.120 to create the new Class A Rectifier’s license and the new Class B Rectifier’s license. Previously, only a single Rectifier’s license existed. The new Class B Rectifier’s license will aid small businesses by saving them $1,755 upon licensure renewal. Additionally, Senate Bill 11 amended KRS 243.0305, KRS 243.086, and KRS 243.120 to allow distilleries in certain territories to sell alcohol by the drink on the distillery’s premises. This emergency administrative regulation will ensure that the Department may review, consider, and issue licenses established by the General Assembly in Senate Bill 11 on its effective date. The Department’s existing forms are insufficient to give intent to Senate Bill 11, so they must be amended. Therefore, this emergency 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 241.060(1)

      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 licensing. This administrative regulation incorporates by reference additional[special] application forms for specific licenses and required registration forms.