If, due to the annexation of territory by any municipality or county, the premises of an on-sale licensee are transferred from one jurisdiction to another, the licensee may continue to legally operate until the expiration of the license. After the expiration of the license, the licensee may apply for renewal of the license to the governing body that has jurisdiction over the licensed premises. The license application may not be denied on the grounds that, by the issuance of the license, more on-sale licenses are in existence than is permitted by the limitations of this chapter.
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