Kentucky Revised Statutes Title XX. Alcoholic Beverages § 243.540.Scope of section; disposition of stock upon revocation, surrender, court disposition, or nonrenewal of license; disposition upon bankruptcy; Disposition by secured creditor or landlord; administrative regulations

(a) An act of God;

(b) A casualty;

(c) An acquisition by a federal, state, city, or other governmental agency under the power of eminent domain granted to the government or agency;

(d) A voluntary or involuntary acquisition by any corporation or other business entity recognized by law through the power of eminent domain;

(e) A loss of lease because the landlord fails to renew an existing lease;

(f) Court action;

(g) Default under a security agreement;

(h) Default under a lease; or

(i) Other verifiable business reason.

(a) If the premises is still open to the public and the licensee has not yet surrendered the license, the licensee shall sell alcoholic beverages or cannabis-infused beverages only to the public and shall not sell below costs;

(b) If a licensee has terminated the licensed business, the licensee shall submit a written request for approval from the state administrator within ten (10) days in advance of the sale to dispose of the licensee's remaining inventory. The request shall identify the retailer who is purchasing the inventory, the proposed date of the sale, and the quantity, types, and brands of alcoholic beverages or cannabis-infused beverages to be sold; and

(c) If a licensee has more than one (1) licensed retail premises and closes one (1) or more retail premises and seeks to transfer the inventory to another licensed retail premises the licensee owns, the licensee shall submit a request in writing to the state administrator at least ten (10) days before the inventory is transferred. The request shall identify the premises to which the alcoholic beverages or cannabis-infused beverages are being transferred, the proposed date of the transfer, and the quantity, types, and brands of alcoholic beverages or cannabis-infused beverages to be sold.

(a) The secured creditor or landlord shall submit a written request for approval from the state administrator, within twenty (20) days in advance of the sale or destruction of the licensee's remaining inventory. The request shall identify the:

(b) The proposed transferee or transferees may be any person or persons holding any license that authorizes the possession and sale of those alcoholic beverages or cannabis-infused beverages, or a business authorized to dispose of alcoholic beverages or cannabis-infused beverages;

(c) A copy of the written request shall be mailed by the department to the licensee's registered agent or last known address on file with the department by certified mail. Within ten (10) days after the department's mailing of this request, the licensee shall file with the department and applicant any objection the licensee has to the request, or be permanently barred from objecting; and

(d) If a sale is approved, the licensee who purchases the inventory shall notify the department within five (5) days after the transfer of that specific inventory.

(a) A final order relating to those alcoholic beverages has been entered after all administrative and judicial proceedings are conducted, if applicable;

(b) The entire proceeds of the public auction are donated to the alcohol wellness and responsibility education fund established in KRS 211.285; and

(c) The board deems the inventory safe to release to the public, including but not limited to the alcoholic beverages being in their original, unopened packaging.