Temperance League of Kentucky v. Perry

74 S.W.3d 730, 2002 Ky. LEXIS 95, 2002 WL 1000908
CourtKentucky Supreme Court
DecidedMay 16, 2002
DocketNo. 2000-SC-1019-TG
StatusPublished
Cited by4 cases

This text of 74 S.W.3d 730 (Temperance League of Kentucky v. Perry) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Temperance League of Kentucky v. Perry, 74 S.W.3d 730, 2002 Ky. LEXIS 95, 2002 WL 1000908 (Ky. 2002).

Opinions

OPINION OF THE COURT

This case concerns a challenge to the constitutionality of KRS 242.185(6). We hold that the statute is constitutional and affirm the trial court’s ruling.

Facts and Procedural History

The Kentucky General Assembly passed Senate Bill 247 on March 29, 2000. The bill, which became effective on July 14, 2000, amends KRS 242.185 by allowing any “dry” city or county to hold a local option election to allow the sale of alcoholic beverages in certain restaurants and dining facilities.

Appellants, the Temperance League of Kentucky, Dwight Donald Elam, and Greg Earwood, brought a declaratory judgment action in Franklin Circuit Court to challenge the constitutionality of KRS 242.185(6). Appellants argued that the statute was special legislation that violated the Kentucky Constitution.

The trial court concluded that the statute was constitutional and entered an Opinion and Order denying declaratory relief. Appellants then appealed the trial court’s Opinion and Order to the Court of Appeals. We granted Appellants’ motion to transfer the case to this Court because [732]*732the issue presented is of statewide importance.

Discussion

I. Constitutionality of the Statute

KRS 242.185(6) provides:

In order to promote economic development and tourism, other provisions of the Kentucky Revised Statutes notwithstanding, a city or county in which prohibition is in effect may, by petition in accordance with KRS 242.020, hold a local option election on the sale of alcoholic beverages by the drink at restaurants and dining facilities which seat a minimum of one hundred (100) persons and derive a minimum of seventy percent (70%) of their gross receipts from the sale of food. The election shall be held in accordance with KRS 242.030(1), (2), and (5), 242.040, and 242.060 to 242.120, and the proposition on the ballot shall state “Are you in favor of the sale of alcoholic beverages by the drink in (name of city or county) at restaurants and dining facilities with a seating capacity of at least one hundred (100) persons and which derive at least seventy percent (70%) of their gross receipts from the sale of food?”. If the majority of the votes in an election held pursuant to this subsection are ‘Tes”, licenses may be issued to qualified restaurants and dining facilities and the licensees may be regulated and taxed in accordance with subsections (4) and (5) of this section.

Appellants argue that this statute violates § 59 of the Kentucky Constitution, which provides that the “General Assembly shall not pass local or special acts .... ” The test for determining whether legislation violates § 59 is set forth in Schoo v. Rose, Ky., 270 S.W.2d 940 (1954). This two-part test provides that (1) the legislation must apply equally to all in a class, and (2) there must be “distinctive and natural reasons inducing and supporting the classification.” Id. at 941.

A. Equal Application

Appellants concede that KRS 242.185(6) applies equally to all dry cities and counties in Kentucky. Appellants do not challenge the statute on this basis. Rather, Appellants argue that the statute draws an unconstitutional distinction between restaurants that can sell alcohol by meeting the statute’s minimum requirements and any other business that might want to serve liquor but cannot meet the statute’s requirements. The trial court rejected the classification urged by Appellants and instead concluded that the relevant classification was counties and cities. We conclude that both classifications are constitutional under § 59.

Mannini v. McFarland, 294 Ky. 837, 172 S.W.2d 631 (1943), is factually and analytically similar to the case at bar. In Mannini, the owner of a pool room challenged the constitutionality of a law that prohibited the sale of alcoholic beverages in bowling alleys and pool rooms in fourth class cities. Id. In holding that the statute violated § 59, the Mannini Court appears to have addressed both the classification in the statute as to fourth class cities and the classification as to pool rooms and bowling alleys:

[T]he classification of fourth class cities set up in the statute has no reasonable relation to the purpose of the statute. There appears to be no rational basis for assuming that the sale of beer in a poolroom in Danville is fraught with other or different consequences than a similar sale in the nearby fifth class city of Stanford or the somewhat more distant second class city of Lexington. The General Assembly could by a general act legislate on this question or authorize [733]*733cities thus to legislate but the subject of the Act is one of general application and the classification on which it rests is contrary to the constitutional provisions forbidding local or special legislation.

Id. at 684 (emphasis added).

In other words, Mannini holds that the classification in the statute limiting its application to fourth class cities violates § 59. But under Mannini, a general prohibition against selling alcohol in pool rooms and bowling alleys across the Commonwealth is not a classification that would violate the first part of the Schoo test. Nor would legislation violate the first part of the Schoo test that gave individual cities and counties the option to decide individually whether to prohibit the sale of alcohol in pool rooms and bowling alleys. Thus, under Mannini, prohibiting certain classes of businesses from selling alcohol under the statute is not special legislation in violation of § 59. For § 59 purposes, we discern no meaningful difference in a classification based on what types of businesses cannot serve alcohol and a classification based on what types of businesses can serve alcohol.

The “alcoholic beverage business is of such a special character that its treatment as a separate classification for purposes of regulation and license taxation is not subject to question.” George Wiedemann Brewing Co. v. City of Newport, Ky., 321 S.W.2d 404, 408 (1959). Moreover, the sale of alcoholic beverages is the subject of extensive and detailed regulation within the Commonwealth. See, e.g., KRS Chapters 241, 242, 243, and 244.

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Cite This Page — Counsel Stack

Bluebook (online)
74 S.W.3d 730, 2002 Ky. LEXIS 95, 2002 WL 1000908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/temperance-league-of-kentucky-v-perry-ky-2002.