Change of ownership, management, or name of licensee; expansion of city licensed premises.

Huntsville Code of Ordinances § 3-53

in effect

Sec. 3-53. Change of ownership, management, or name of licensee; expansion of city licensed premises. (a) Change of ownership, etc. Subject to section 3-52 concerning state transfers and new city licenses, city licenses shall be deemed to expire, terminate, or otherwise be void when there is a substantial change of ownership in the licensee; when a licensed establishment is leased, rented, or abandoned; or when possession is otherwise surrendered to another person. A city license issued to a corporation does not terminate by transfer of ownership of its stock, and a new license is not required even with a complete change in ownership of the capital stock of a corporate licensee, although the provisions of subsection (d), below, shall apply. (b) Temporary closure or interruption. Upon the death of an individual city licensee, sale of the licensed business, temporary closing of the licensed business, or other interruption in the operation of a licensed business, the city license shall immediately be delivered to the city clerk-treasurer, to be held pending the reopening of said business according to this chapter. However, where there is a surviving partner in a partnership entity possessing a city license, or a surviving spouse of a deceased licensee, such survivor may complete the current license year operating as a city licensee, having the same rights and responsibilities as the named licensee, without obtaining a new city license, provided: (1) the survivor notifies the city clerk-treasurer in writing within 20 days after the death of the licensee, and (2) the survivor is otherwise qualified to hold a city license. A surviving spouse or partner must complete a new application in his/her own name and receive approval prior to operation the next license year. (c) New officers or directors of licensed corporations. When a licensed corporation elects new officers or directors, said corporation shall notify the city clerk-treasurer in writing within 20 days thereafter. Such notification shall contain the names, positions, social security numbers, places of birth, dates of birth, home addresses, and how long the newly-elected officials have lived at said addresses. No person shall serve as a director or officer of a licensed corporation who is otherwise unqualified to obtain an original city license in their own name, and the city license shall be subject to action being taken against the license, where the person continues to hold the position of director or officer with the licensed corporation. This section shall not apply to corporations whose shares are customarily and regularly traded or sold on recognized stock exchanges. (d) New shareholders of licensed corporations. When ownership of 20 percent or more of a corporation's shares is transferred or there accrues a 20 percent transfer of shares since the licensing year began, a corporation shall notify the city-treasurer in writing within 20 days thereafter. The letter shall contain the name of the persons to whom the stock was transferred, social security number, place of birth, date of birth, home address, how long the stock transferee has lived at that address, and what quantity of shares was transferred. No person shall own shares through transfer or accrual in a licensed corporation who is otherwise unqualified to obtain an original city license in their own name. The license review committee shall have discretion in determining the qualifications of any transferee of stock shares, and may, in its discretion, suspend the corporation's license during the period of time that the unqualified shareholder retains ownership of said shares, subject to the right of appeal to the city council in accordance with section 3-91. This section shall not apply to corporations whose shares are customarily and regularly traded or sold on recognized stock exchanges. (e) Noncorporate licensees. When a noncorporate licensee has a change of ownership effecting 20 percent or more thereof, the licensee shall notify the city clerk-treasurer in writing within 20 days thereafter, and a new application shall be submitted by the new entity created by such change of ownership. No person shall become the owner or otherwise be interested in the operation of a noncorporate city licensed premises who is otherwise unqualified to obtain an original license in their own name. (f) Additional information. Additional information concerning licensed businesses and persons associated therewith shall be submitted when requested by the city clerk-treasurer. (g) Change of trade name. In the event a city licensee changes its trade name during a license year, the licensee must notify the city clerk-treasurer within 20 days of such change. (h) Expansion of licensed premises. All expansions of city licensed premises shall be subject to the city's approval. Whenever a licensee proposes to expand its city licensed premises it shall make application therefor with the city clerk-treasurer and shall submit such relevant information as the city clerk-treasurer may require. The application for expansion shall be considered by the license review committee, on behalf of the city council, in accordance with this article and the committee's decision is subject to the same right of appeal as for original license applications. (Ord. No. 11-654, § 1, 9-22-2011) (Ord. No. 26-245, § 1, adopted 3-26-2026; published 4-1-2026)

Source: City of Huntsville, Alabama, publisher code (Municode) + enacted ordinances (City Council/Legistar)URL: https://huntsvilleal.legistar.com/View.ashx?M=F&ID=15311667&GUID=357A7EDC-4151-44A9-8C48-D55E01753742Fetched: 11/6/2026