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Classification Transfer of On-Premises Retailer License

Classification Transfer of On-Premises Retailer License

Classification Transfer of On-Premises Retailer License Requirements & General Information

    Existing on-premises retailer licenses may be transferred by classification from one type of license to another type of on-premises license.  For example, a Tavern license, which allows for the sale and service of only beer and wine for consumption on the premises, may be reclassified to a Class C license, which allows for the sale and service of beer, wine, and spirits for consumption on the premises.

    If the license being reclassified is a Tavern, A-Hotel, or G-2 license, all of which allow the sale and service of only beer and wine, and it is being “upgraded” to a Class C, B-Hotel, or G-1 license, all of which allow the sale and service of beer, wine, and spirits, the local governmental unit where the license is located must approve the transfer of classification.

    A transfer of classification involving two similar license types, such as a transfer of classification from a B-Hotel license to a Class C license, does not require local approval.  Furthermore, “downgrading” a license through reclassification from being able to sell and serve beer, wine, and spirits to being able to sell and serve only beer and wine does not require local approval, such as transferring classification of a Class C license to a Tavern license.

    If a licensee requests to transfer classification of an on-premises license that allows the sale and service of only beer and wine to a license that allows the sale and service of beer, wine, and spirits, the local governmental unit where the license is located must have approved the sale of spirits for on-premises consumption.  You may verify whether the local governmental unit (LGU) is “legal” for the sale of spirits on the premises or “dry” on the Commission’s website and searching for the LGU where your license is located.

Required Forms, Fees, and Documents

    An applicant requesting to transfer classification of an existing on-premises retailer license must submit the following:

Application Form

  • On-Premises Retailer License & Permit Application (LCC-100a) - On Schedule A of the application, check the box for the type of license to which the existing license is being reclassified.  For example, if the existing license is a Tavern license and its classification is being transferred to a Class C license, the Class C license box should be checked.

Inspection Fee

A $70.00 nonrefundable inspection fee is required.

License Fee

The license fee for the type of license to which the on-premises license is being reclassified is required.  For example, if you are transferring classification from a Tavern license to a Class C license, the $600.00 Class C license fee would be required.

Local Governmental Unit Approval

Local Government Approval Form (LCC-106) – Local governmental approval is required for any transfer of classification that is an “upgrade” of a license from being able to sell and serve only beer, wine, and mixed spirit drink to being able to sell and serve beer, wine, mixed spirit drink, and spirits (e.g. Tavern license reclassified to Class C license).

Licensing Process

  • The Licensing Division reviews the application and corresponding documents for completeness and verifies the appropriate fees have been received. If additional documents, fees, or corrections to documents are needed, Licensing will notify the applicant.
  • Once all the necessary documents have been received Licensing will submit the request to the Enforcement Division for its investigation. If an applicant has applied for and meets the requirements for a conditional license, the request will be considered by the Commission
  • The Enforcement Division will contact the applicant to schedule an interview with the applicant (and current licensee for license transfers). At this meeting an investigator will review with the applicant documents, including:
  • purchase agreement
  • financial documents
  • property documents
  • other items pertaining to the application
  • After the interview, the investigator will prepare a report for the Commission regarding the investigation and submit the request back to Licensing for further processing.
  • Licensing reviews the report from Enforcement and any additional documents received during the interview process. The request is prepared for the Commission to consider and placed on a docket for an upcoming licensing meeting.
  • The Commission considers the request, including:
  • the liquor license operating history of the applicant (if a current or prior licensee)
  • the arrest and conviction record of the applicant
  • whether the applicant meets the requirements for a license
  • the applicant's financial information
  • opinions of the local legislative body or police department, if received.
  • The Commission will approve or deny the request based on these factors. Occasionally, the Commission will request more information from the applicant before making a final decision.
  • After the Commission makes a decision on the request, the file is returned to Licensing for final processing.
  • Approval orders are sent to the applicant requesting any final items before the issuance of the license.
  • Denial orders are sent to the applicant and the applicant may appeal the decision.
  • When all the final items are received by Licensing, the completed request is forwarded to the Renewal Unit for the issuance of the physical license documents. Any changes in financial provisions at the time of closing which do not conform to the terms previously indicated and investigated may require submission of new forms and possible additional investigation.