Request By:
Mr. John W. Crimmins
Malt Beverage Administrator
Department of Alcoholic Beverage Control
123 Walnut Street
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; Reid C. James, Assistant Attorney General
This is in response to your request for an opinion of this office relating to KRS 244.570. You particularly inquire,
1) Whether a wholesale beer distributor or a brewer located in another state can hold a retail beer license in this state, and
2) Whether an individual who is a major stockholder of a corporation that holds a brewers or a distributors license in another state can also be a major stockholder in another corporation that holds a retail license in this state?
The purpose of KRS 244.570 is clearly to prohibit brewers and distributors from becoming financially interested in retail malt beverage premises. Specifically this statute provides,
(1) No brewer or distributor shall be interested in any manner, either directly or indirectly, in the ownership or leasehold of any property or in any mortgage against the property for which a retail license is issued, nor shall a brewer or distributor either directly or indirectly lend any moneys, credit or the equivalent thereto to any retailer in equipping, fitting out or maintaining and conducting either in whole or in part a malt beverage retail establishment or business.
The statutes of this Commonwealth are to be liberally construed with a view toward promoting their objects and carrying out the legislative intent. KRS 446.080. The statute in question prohibits any wholesale beer distributor or brewer from becoming financially interested in retail premises. That the wholesaler or brewer is a non-resident is of no consequence.
Regarding your second question, it is our opinion that an individual may be a major stockholder in a corporation holding a retail malt beverage license in this state while also a major stockholder of a corporation holding a brewers or distributors license in another state. Even though the individual is a major stockholder in both corporations, it is the corporations, and not the individual stockholder, whose mutual financial interests are precluded by this statute.