804 KAR 4:221 - Alternating proprietorship agreements


NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060(1) authorizes the board to promulgate reasonable administrative regulations governing procedures relative to the applications for and revocations of licenses, and the supervision and control of the use, manufacture, sale, transportation, storage, advertising, and trafficking of alcoholic beverages. This administrative regulation provides for the sharing of a licensed premises between two (2) or more licensees in accordance with an alternating proprietorship agreement.

Section 1. Definition. "Alternating proprietorship agreement" means a written agreement under which two (2) or more licensees share possession or ownership of a licensed premises and alternate exclusive use of the premises over the term of the agreement.
Section 2. A licensed premises shall meet the requirements of KRS 243.220 if it is owned or possessed for a term not less than the license period by two (2) or more eligible licensees under an authorized alternating proprietorship agreement.
Section 3. A licensee shall not enter into an alternating proprietorship agreement with any person who holds a Kentucky alcoholic beverage license that the licensee is prohibited from holding under Kentucky law.
Section 4. Licensees who share a licensed premises in accordance with an alternating proprietorship agreement shall individually meet all requirements of their licenses.
Section 5. This administrative regulation shall not be interpreted to relate to direct shipper licenses.
Section 6. Federal Law. This administrative regulation shall not exempt a person from complying with any applicable federal laws.


804 KAR 4:221
48 Ky.R. 1437, 2108, 2222; eff. 5/3/2022.


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