804 KAR 4:280 - Affiliated businesses
RELATES TO: KRS 244.240, 244.570
NECESSITY, FUNCTION, AND CONFORMITY: KRS 244.240 prohibits a distiller, rectifier, vintner or wholesaler or an employee thereof from being interested "directly or indirectly" in any way in any premises where distilled spirits or wine are sold at retail or any business devoted wholly or partially to the sale of distilled spirits or wine at retail. KRS 244.570 prohibits a brewer or distributor "either directly or indirectly" from having an ownership or leasehold interest in any property for which a retail license is issued. The trend in the alcoholic beverage industry today, as well as in American business generally, is toward diversification. It is a common practice for manufacturers, wholesalers and distributors, to be owned by holding companies which may also own many other businesses unrelated to the manufacture or distribution of alcoholic beverages. Because of the rise of this diversification, it has become more difficult to determine whether an "indirect" interest in a retail premises exists. This administrative regulation will eliminate any confusion relating to the application of KRS 244.240 and/or KRS 244.570 to businesses affiliated with distillers, rectifiers, wineries, wholesalers, brewers, and distributors.
Notes
STATUTORY AUTHORITY: KRS 241.060
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