CHAPTER 39
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CHAPTER 39
( HB 500 )
AN ACT relating to the sale of alcoholic beverages and declaring an emergency.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
Section 1. KRS 241.010 is amended to read as follows:
As used in KRS Chapters 241 to 244, unless the context requires otherwise:
(1) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit of wine, from whatever source or by whatever
process it is produced;
(2) "Alcoholic beverage" means every liquid, solid, powder, or crystal, whether patented or not, containing
alcohol in an amount in excess of more than one percent (1%) of alcohol by volume, which is fit for beverage
purposes. It includes every spurious or imitation liquor sold as, or under any name commonly used for,
alcoholic beverages, whether containing any alcohol or not. It does not include the following products:
(a) Medicinal preparations manufactured in accordance with formulas prescribed by the United States
Pharmacopoeia, National Formulary, or the American Institute of Homeopathy;
(b) Patented, patent, and proprietary medicines;
(c) Toilet, medicinal, and antiseptic preparations and solutions;
(d) Flavoring extracts and syrups;
(e) Denatured alcohol or denatured rum;
(f) Vinegar and preserved sweet cider;
(g) Wine for sacramental purposes; and
(h) Alcohol unfit for beverage purposes that is to be sold for legitimate external use;
(3) (a) "Alcohol vaporizing device" or "AWOL device" means any device, machine, or process that mixes
liquor, spirits, or any other alcohol product with pure oxygen or by any other means produces a
vaporized alcoholic product used for human consumption;
(b) "Alcohol vaporizing device" or "AWOL device" does not include an inhaler, nebulizer, atomizer, or
other device that is designed and intended by the manufacturer to dispense a prescribed or over-the-
counter medication or a device installed and used by a licensee under this chapter to demonstrate the
aroma of an alcoholic beverage;
(4) "Automobile race track" means a facility primarily used for vehicle racing that has a seating capacity of at
least thirty thousand (30,000) people;
(5) "Barrel-aged and batched cocktail" means an alcoholic beverage that is:
(a) Composed of:
1. Distilled spirits that have been dispensed from their original sealed container; and
2. Other ingredients or alcoholic beverages;
(b) Placed into a barrel or container on the premises of a retail licensee; and
(c) Dispensed from the barrel or container as a retail sale by the drink;
(6) "Bed and breakfast" means a one (1) family dwelling unit that:
(a) Has guest rooms or suites used, rented, or hired out for occupancy or that are occupied for sleeping
purposes by persons not members of the single-family unit;
(b) Holds a permit under KRS Chapter 219; and
(c) Has an innkeeper who resides on the premises or property adjacent to the premises during periods of
occupancy; ACTS OF THE GENERAL ASSEMBLY 2
(7)[(6)] "Board" means the State Alcoholic Beverage Control Board created by KRS 241.030;
(8)[(7)] "Bottle" means any container which is used for holding alcoholic beverages for the use and sale of
alcoholic beverages at retail;
(9)[(8)] "Brewer" means any person who manufactures malt beverages or owns, occupies, carries on, works, or
conducts any brewery, either alone or through an agent;
(10)[(9)] "Brewery" means any place or premises where malt beverages are manufactured for sale, and includes
all offices, granaries, mash rooms, cooling rooms, vaults, yards, and storerooms connected with the premises;
or where any part of the process of the manufacture of malt beverages is carried on; or where any apparatus
connected with manufacture is kept or used; or where any of the products of brewing or fermentation are
stored or kept;
(11)[(10)] "Building containing licensed premises" means the licensed premises themselves and includes the land,
tract of land, or parking lot in which the premises are contained, and any part of any building connected by
direct access or by an entrance which is under the ownership or control of the licensee by lease holdings or
ownership;
(12)[(11)] "Caterer" means a person operating a food service business that prepares food in a licensed and
inspected commissary, transports the food and alcoholic beverages to the caterer's designated and inspected
banquet hall or to an agreed location, and serves the food and alcoholic beverages pursuant to an agreement
with another person;
(13)[(12)] "Charitable organization" means a nonprofit entity recognized as exempt from federal taxation under
section 501(c) of the Internal Revenue Code (26 U.S.C. sec. 501(c)) or any organization having been
established and continuously operating within the Commonwealth of Kentucky for charitable purposes for
three (3) years and which expends at least sixty percent (60%) of its gross revenue exclusively for religious,
educational, literary, civic, fraternal, or patriotic purposes;
(14)[(13)] "Cider" means any fermented fruit-based beverage containing seven percent (7%) or more alcohol by
volume and includes hard cider and perry cider;
(15)[(14)] "City administrator" means city alcoholic beverage control administrator;
(16)[(15)] "Commercial airport" means an airport through which more than five hundred thousand (500,000)
passengers arrive or depart annually;
(17)[(16)] (a) "Commercial quadricycle" means a vehicle equipped with a minimum of ten (10) pairs of fully
operative pedals for propulsion by means of human muscular power and which:
1. Has four (4) wheels;
2. Is operated in a manner similar to that of a bicycle;
3. Is equipped with a minimum of thirteen (13) seats for passengers;
4. Has a unibody design;
5. Is equipped with a minimum of four (4) hydraulically operated brakes;
6. Is used for commercial tour purposes;
7. Is operated by the vehicle owner or an employee of the owner; and
8. Has an electrical assist system that shall only be used when traveling to or from its storage
location while not carrying passengers.
(b) A "commercial quadricycle" is not a motor vehicle as defined in KRS 186.010 or 189.010;
(18)[(17)] "Commissioner" means the commissioner of the Department of Alcoholic Beverage Control;
(19)[(18)] "Consumer" means a person, persons, or business organization who purchases alcoholic beverages and
who:
(a) Does not hold a license or permit issued by the department;
(b) Purchases the alcoholic beverages for personal consumption only and not for resale;
(c) Is of lawful drinking age; and CHAPTER 39
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(d)[ Receives the alcoholic beverages at a location other than a licensed premises; and
(e)] Receives the alcoholic beverages in territory where the alcoholic beverages may be lawfully sold or
received;
(20)[(19)] "Convention center" means any facility which, in its usual and customary business, provides seating for
a minimum of one thousand (1,000) people and offers convention facilities and related services for seminars,
training and educational purposes, trade association meetings, conventions, or civic and community events or
for plays, theatrical productions, or cultural exhibitions;
(21)[(20)] "Convicted" and "conviction" means a finding of guilt resulting from a plea of guilty, the decision of a
court, or the finding of a jury, irrespective of a pronouncement of judgment or the suspension of the judgment;
(22)[(21)] "County administrator" means county alcoholic beverage control administrator;
(23)[(22)] "Department" means the Department of Alcoholic Beverage Control;
(24)[(23)] "Dining car" means a railroad passenger car that serves meals to consumers on any railroad or Pullman
car company;
(25)[(24)] "Discount in the usual course of business" means price reductions, rebates, refunds, and discounts given
by wholesalers to distilled spirits and wine retailers pursuant to an agreement made at the time of the sale of
the merchandise involved and are considered a part of the sales transaction, constituting reductions in price
pursuant to the terms of the sale, irrespective of whether the quantity discount was:
(a) Prorated and allowed on each delivery;
(b) Given in a lump sum after the entire quantity of merchandise purchased had been delivered; or
(c) Based on dollar volume or on the quantity of merchandise purchased;
(26)[(25)] "Distilled spirits" or "spirits" means any product capable of being consumed by a human being which
contains alcohol in excess of the amount permitted by KRS Chapter 242 obtained by distilling, mixed with
water or other substances in solution, except wine, hard cider, and malt beverages;
(27)[(26)] "Distiller" means any person who is engaged in the business of manufacturing distilled spirits at any
distillery in the state and is registered in the Office of the Collector of Internal Revenue for the United States at
Louisville, Kentucky;
(28)[(27)] "Distillery" means any place or premises where distilled spirits are manufactured for sale, and which are
registered in the office of any collector of internal revenue for the United States. It includes any United States
government bonded warehouse;
(29)[(28)] "Distributor" means any person who distributes malt beverages for the purpose of being sold at retail;
(30)[(29)] "Dry" means a territory in which a majority of the electorate voted to prohibit all forms of retail alcohol
sales through a local option election held under KRS Chapter 242;
(31)[(30)] "Election" means:
(a) An election held for the purpose of taking the sense of the people as to the application or discontinuance
of alcoholic beverage sales under KRS Chapter 242; or
(b) Any other election not pertaining to alcohol;
(32)[(31)] "Horse racetrack" means a facility licensed to conduct a horse race meeting under KRS Chapter 230;
(33)[(32)] "Hotel" means a hotel, motel, or inn for accommodation of the traveling public, designed primarily to
serve transient patrons;
(34)[(33)] "Investigator" means any employee or agent of the department who is regularly employed and whose
primary function is to travel from place to place for the purpose of visiting licensees, and any employee or
agent of the department who is assigned, temporarily or permanently, by the commissioner to duty outside the
main office of the department at Frankfort, in connection with the administration of alcoholic beverage
statutes;
(35)[(34)] "License" means any license issued pursuant to KRS Chapters 241 to 244;
(36)[(35)] "Licensee" means any person to whom a license has been issued, pursuant to KRS Chapters 241 to 244; ACTS OF THE GENERAL ASSEMBLY 4
(37)[(36)] "Limited restaurant" means:
(a) A facility where the usual and customary business is the preparation and serving of meals to consumers,
which has a bona fide kitchen facility, which receives at least seventy percent (70%) of its food and
alcoholic beverage receipts from the sale of food, which maintains a minimum seating capacity of fifty
(50) persons for dining, which has no open bar, which requires that alcoholic beverages be sold in
conjunction with the sale of a meal, and which is located in a wet or moist territory under KRS
242.1244; or
(b) A facility where the usual and customary business is the preparation and serving of meals to consumers,
which has a bona fide kitchen facility, which receives at least seventy percent (70%) of its food and
alcoholic beverage receipts from the sale of food, which maintains a minimum seating capacity of one
hundred (100) persons of dining, and which is located in a wet or moist territory under KRS 242.1244;
(38)[(37)] "Local administrator" means a city alcoholic beverage administrator, county alcoholic beverage
administrator, or urban-county alcoholic beverage control administrator;
(39)[(38)] "Malt beverage" means any fermented undistilled alcoholic beverage of any name or description,
manufactured from malt wholly or in part, or from any substitute for malt, and includes weak cider;
(40)[(39)] "Manufacture" means distill, rectify, brew, bottle, and operate a winery;
(41)[(40)] "Manufacturer" means a winery, distiller, rectifier, or brewer, and any other person engaged in the
production or bottling of alcoholic beverages;
(42)[(41)] "Minor" means any person who is not twenty-one (21) years of age or older;
(43)[(42)] "Moist" means a territory in which a majority of the electorate voted to permit limited alcohol sales by
any one (1) or a combination of special limited local option elections authorized by KRS Chapter 242;
(44)[(43)] "Population" means the population figures established by the federal decennial census for a census year
or the current yearly population estimates prepared by the Kentucky State Data Center, Urban Studies Center
of the University of Louisville, Louisville, Kentucky, for all other years;
(45)[(44)] "Premises" means the land and building in and upon which any business regulated by alcoholic
beverage statutes is operated or carried on. "Premises" shall not include as a single unit two (2) or more
separate businesses of one (1) owner on the same lot or tract of land, in the same or in different buildings if
physical and permanent separation of the premises is maintained, excluding employee access by keyed entry
and emergency exits equipped with crash bars, and each has a separate public entrance accessible directly from
the sidewalk or parking lot. Any licensee holding an alcoholic beverage license on July 15, 1998, shall not, by
reason of this subsection, be ineligible to continue to hold his or her license or obtain a renewal, of the license;
(46)[(45)] "Primary source of supply" or "supplier" means the distiller, winery, brewer, producer, owner of the
commodity at the time it becomes a marketable product, bottler, or authorized agent of the brand owner. In the
case of imported products, the primary source of supply means either the foreign producer, owner, bottler, or
agent of the prime importer from, or the exclusive agent in, the United States of the foreign distiller, producer,
bottler, or owner;
(47)[(46)] "Private club" means a nonprofit social, fraternal, military, or political organization, club, or nonprofit
or for-profit entity maintaining or operating a club room, club rooms, or premises from which the general
public is excluded;
(48)[(47)] "Private selection event" means a private event with a licensed distiller during which participating
consumers, retail licensees, wholesalers, distributors, or a distillery's own representatives select a single
barrel or a blend of barrels of the distiller's products to be specially packaged for the participants;
(49) "Private selection package" means a bottle of distilled spirits sourced from the barrel or barrels selected by
participating consumers, retail licensees, wholesalers, distributors, microbreweries that hold a quota retail
drink or quota retail package license, or a distillery's own representatives during a private selection event;
(50) "Public nuisance" means a condition that endangers safety or health, is offensive to the senses, or obstructs the
free use of property so as to interfere with the comfortable enjoyment of life or property by a community or
neighborhood or by any considerable number of persons;
(51)[(48)] "Qualified historic site" means: CHAPTER 39
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(a) A contributing property with dining facilities for at least fifty (50) persons at tables, booths, or bars
where food may be served within a commercial district listed in the National Register of Historic
Places;
(b) A site that is listed as a National Historic Landmark or in the National Register of Historic Places with
dining facilities for at least fifty (50) persons at tables, booths, or bars where food may be served;
(c) A distillery which is listed as a National Historic Landmark and which conducts souvenir retail package
sales under KRS 243.0305; or
(d) A not-for-profit or nonprofit facility listed on the National Register of Historic Places;
(52)[(49)] "Rectifier" means any person who rectifies, purifies, or refines distilled spirits, malt, or wine by any
process other than as provided for on distillery premises, and every person who, without rectifying, purifying,
or refining distilled spirits by mixing alcoholic beverages with any materials, manufactures any imitations of
or compounds liquors for sale under the name of whiskey, brandy, gin, rum, wine, spirits, cordials, bitters, or
any other name;
(53)[(50)] "Repackaging" means the placing of alcoholic beverages in any retail container irrespective of the
material from which the container is made;
(54)[(51)] "Restaurant" means a facility where the usual and customary business is the preparation and serving of
meals to consumers, that has a bona fide kitchen facility, and that receives at least fifty percent (50%) of its
food and alcoholic beverage receipts from the sale of food at the premises;
(55)[(52)] "Retail container" means any bottle, can, barrel, or other container which, without a separable
intermediate container, holds alcoholic beverages and is suitable and destined for sale to a retail outlet,
whether it is suitable for delivery or shipment to the consumer or not;
(56)[(53)] "Retail sale" means any sale of alcoholic beverages to a consumer, including those transactions taking
place in person, electronically, online, by mail, or by telephone;
(57)[(54)] "Retailer" means any licensee who sells and delivers any alcoholic beverage to consumers, except for
manufacturers with limited retail sale privileges and direct shipper licensees;
(58)[(55)] "Riverboat" means any boat or vessel with a regular place of mooring in this state that is licensed by the
United States Coast Guard to carry one hundred (100) or more passengers for hire on navigable waters in or
adjacent to this state;
(59)[(56)] "Sale" means any transfer, exchange, or barter for consideration, and includes all sales made by any
person, whether principal, proprietor, agent, servant, or employee, of any alcoholic beverage;
(60)[(57)] "Service bar" means a bar, counter, shelving, or similar structure used for storing or stocking supplies of
alcoholic beverages that is a workstation where employees prepare alcoholic beverage drinks to be delivered to
customers away from the service bar;
(61)[(58)] "Sell" includes solicit or receive an order for, keep or expose for sale, keep with intent to sell, and the
delivery of any alcoholic beverage;
(62)[(59)] "Small farm winery" means a winery whose wine production is not less than two hundred fifty (250)
gallons and not greater than five hundred thousand (500,000) gallons in a calendar year;
(63)[(60)] "Souvenir package" means a special package of distilled spirits available from a licensed retailer that is:
(a) Available for retail sale at a licensed Kentucky distillery where the distilled spirits were produced or
bottled; or
(b) Available for retail sale at a licensed Kentucky distillery but produced or bottled at another of that
distiller's licensed distilleries in Kentucky;
(64)[(61)] "State administrator" or "administrator" means the distilled spirits administrator or the malt beverages
administrator, or both, as the context requires;
(65)[(62)] "State park" means a state park that has a:
(a) Nine (9) or eighteen (18) hole golf course; or
(b) Full-service lodge and dining room; ACTS OF THE GENERAL ASSEMBLY 6
(66)[(63)] "Supplemental bar" means a bar, counter, shelving, or similar structure used for serving and selling
distilled spirits or wine by the drink for consumption on the licensed premises to guests and patrons from
additional locations other than the main bar;
(67)[(64)] "Territory" means a county, city, district, or precinct;
(68)[(65)] "Urban-county administrator" means an urban-county alcoholic beverage control administrator;
(69)[(66)] "Valid identification document" means an unexpired, government-issued form of identification that
contains the photograph and date of birth of the individual to whom it is issued;
(70)[(67)] "Vehicle" means any device or animal used to carry, convey, transport, or otherwise move alcoholic
beverages or any products, equipment, or appurtenances used to manufacture, bottle, or sell these beverages;
(71)[(68)] "Vintage distilled spirit" means:
(a) A private selection package; or
(b) A package or packages of distilled spirits that:
1.[(a)] Are in their original manufacturer's unopened container;
2.[(b)] Are not owned by a distillery; and
3.[(c)] Are not otherwise available for purchase from a licensed wholesaler within the Commonwealth;
(72) (a) "Vintage distilled spirits seller" means a non-licensed person at least twenty-one (21) years of age
who is:
1. An administrator, executor, receiver, or other fiduciary who receives and sells vintage distilled
spirits in execution of the person's fiduciary capacity;
2. A creditor who receives or takes possession of vintage distilled spirits as security for, or in
payment of, debt, in whole or in part;
3. A public officer or court official who levies on vintage distilled spirits under order or process
of any court or magistrate to sell the vintage distilled spirits in satisfaction of the order or
process; or
4. Any other person not engaged in the business of selling alcoholic beverages.
(b) "Vintage distilled spirits seller" does not mean:
1. A person selling alcoholic beverages as part of an approved KRS 243.630 transfer; or
2. A person selling alcoholic beverages as authorized by KRS 243.540;
(73)[(69)] "Warehouse" means any place in which alcoholic beverages are housed or stored;
(74)[(70)] "Weak cider" means any fermented fruit-based beverage containing more than one percent (1%) but
less than seven percent (7%) alcohol by volume;
(75)[(71)] "Wet" means a territory in which a majority of the electorate voted to permit all forms of retail alcohol
sales by a local option election under KRS 242.050 or 242.125 on the following question: "Are you in favor of
the sale of alcoholic beverages in (name of territory)?";
(76)[(72)] "Wholesale sale" means a sale to any person for the purpose of resale;
(77)[(73)] "Wholesaler" means any person who distributes alcoholic beverages for the purpose of being sold at
retail, but it shall not include a subsidiary of a manufacturer or cooperative of a retail outlet;
(78)[(74)] "Wine" means the product of the normal alcoholic fermentation of the juices of fruits, with the usual
processes of manufacture and normal additions, and includes champagne and sparkling and fortified wine of
an alcoholic content not to exceed twenty-four percent (24%) by volume. It includes sake, cider, hard cider,
and perry cider and also includes preparations or mixtures vended in retail containers if these preparations or
mixtures contain not more than fifteen percent (15%) of alcohol by volume. It does not include weak cider;
and
(79)[(75)] "Winery" means any place or premises in which wine is manufactured from any fruit, or brandies are
distilled as a by-product of wine or other fruit, or cordials are compounded, except a place or premises that
manufactures wine for sacramental purposes exclusively. CHAPTER 39
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SECTION 2. A NEW SECTION OF KRS CHAPTER 243 IS CREATED TO READ AS FOLLOWS:
(1) A limited nonquota package license may be issued as a supplementary license to a licensee that holds an
NQ1 retail drink license, an NQ2 retail drink license, or a limited restaurant license in a jurisdiction that
has authorized the sale of distilled spirits and wine by the package.
(2) The limited nonquota package license shall authorize the licensee to:
(a) Purchase private selection packages in the original manufacturer's unopened containers; and
(b) Sell private selection packages at retail in the original manufacturer's unopened containers, and only
for consumption off the licensed premises.
(3) The licensee shall purchase private selection packages in accordance with subsection (4) of Section 6 of this
Act.
Section 3. KRS 243.027 is amended to read as follows:
(1) KRS 243.027 to 243.029 shall supersede any conflicting statute in KRS Chapters 241 to 244.
(2) A direct shipper license shall authorize the holder to ship alcoholic beverages to consumers. The department
shall issue a direct shipper license to a successful applicant that:
(a) Pays an annual license fee of one hundred dollars ($100);
(b) Is a manufacturer located in this state or any other state or an alcoholic beverage supplier licensed under
KRS 243.212 or 243.215; and
(c) Holds a current license, permit, or other authorization to manufacture or supply alcoholic beverages in
the state where the applicant is located. If an applicant is located outside of Kentucky, proof of its
current license, permit, or other authorization as issued by its home state shall be sufficient proof of its
eligibility to hold a direct shipper license in Kentucky.
(3) (a) A manufacturer applicant shall only be authorized to ship alcoholic beverages that are sold under a
brand name owned or exclusively licensed to the manufacturer, provided the alcoholic beverages were:
1. Produced by the manufacturer;
2. Produced for the manufacturer under a written contract with another manufacturer; or
3. Bottled for or by the manufacturer.
(b) An applicant licensed under KRS 243.212 or 243.215 shall only be authorized to ship alcoholic
beverages for which it is the primary source of supply.
(4) The department shall establish the form for a direct shipper license application through the promulgation of an
administrative regulation. These requirements shall include only the following:
(a) The address of the manufacturer or supplier; and
(b) If the applicant is located outside this state, a copy of the applicant's current license, permit, or other
authorization to manufacture, store, or supply alcoholic beverages in the state where the applicant is
located.
(5) For purposes of this section, the holder of a direct shipper license may utilize the services of a third party to
fulfill shipments, subject to the following:
(a) The third party shall not be required to hold any alcoholic beverage license, but no licensed entity shall
serve as a third party to fulfill shipments other than the holder of a storage license or transporter's
license;
(b) The third party may operate from the premises of the direct shipper licensee or from another business
location; and
(c) The direct shipper licensee shall be liable for any violation of KRS 242.250, 242.260, 242.270, or
244.080 that may occur by the third party.
(6) A direct shipper licensee shall: ACTS OF THE GENERAL ASSEMBLY 8
(a) Agree that the Secretary of State shall serve as its registered agent for service of process. The licensee
shall agree that legal service on the agent constitutes legal service on the direct shipper licensee;
(b) Maintain the records required under KRS 243.027 to 243.029 and provide the department and the
Department of Revenue access to or copies of these records;
(c) Allow the department or the Department of Revenue to perform an audit of the direct shipper licensee's
records or an inspection of the direct shipper licensee's licensed premises upon request. If an audit or
inspection reveals a violation, the department or the Department of Revenue may recover reasonable
expenses from the licensee for the cost of the audit or inspection;
(d) Register with the Department of Revenue, and file all reports and pay all taxes required under KRS
243.027 to 243.029; and
(e) Submit to the jurisdiction of the Commonwealth of Kentucky for any violation of KRS 242.250,
242.260, 242.270, or 244.080 or for nonpayment of any taxes owed.
(7) (a) Each direct shipper licensee shall submit to the department and the Department of Revenue a quarterly
report for that direct shipper license showing:
1. The total amount of alcoholic beverages shipped into the state per consumer;
2. The name and address of each consumer;
3. The purchase price of the alcoholic beverages shipped and the amount of taxes charged to the
consumer for the alcoholic beverages shipped; and
4. The name and address of each common carrier.
(b) The Department of Revenue shall create a form through the promulgation of an administrative
regulation for reporting under paragraph (a) of this subsection.
(c) The department shall provide a list of all active direct shipper licensees to licensed common carriers on
a quarterly basis to reduce the number of unlicensed shipments in the Commonwealth.
(8) A direct shipper licensee shall submit a current copy of its alcoholic beverage license from its home state along
with the one hundred dollar ($100) license fee every year upon renewal of its direct shipper license.
(9) Notwithstanding any provision of this section to the contrary, a manufacturer located and licensed in Kentucky
may ship by a common carrier holding a Kentucky transporter's license samples of alcoholic beverages
produced by the manufacturer in quantities not to exceed one (1) liter, per any recipient, of any
individual[particular] product in one (1) calendar year of distilled spirits or wine, or ninety-six (96) ounces,
per any recipient, of any individual[particular] product in one (1) calendar year of malt beverages, to any of
the following:
(a) Marketing or media representatives twenty-one (21) years of age or older;
(b) Distilled spirits, wine, or malt beverage competitions or contests;
(c) Wholesalers or distributors located outside of Kentucky;
(d) Federal, state, or other regulatory testing labs;[ and]
(e) Third-party product formulation and development partners; and
(f) Persons or entities engaged in a private selection event pursuant to Section 6 of this Act.
Such samples shall be marked by affixing across the product label, a not readily removed disclaimer with the
words "Sample-Not for Sale" and the name of the manufacturer.
Section 4. KRS 243.029 is amended to read as follows:
(1) For purposes of this section, "taxes" associated with the purchase of alcoholic beverages includes any
applicable:
(a) Sales tax;
(b) Use tax;
(c) Excise tax;
(d) Wholesale tax equivalent as established in KRS 243.884; CHAPTER 39
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(e) Regulatory license fees; and
(f) Other assessments.
(2) For purposes of this section and for other tax purposes, each sale and delivery of alcoholic beverages under a
direct shipper license is a sale occurring at the address of the consumer. For each tax remittance or collected
group of tax remittances, the direct shipper licensee shall include its federal tax identification number.
(3) A direct shipper licensee that sells alcoholic beverages under its direct shipper license for shipment to a
consumer shall charge the consumer all applicable taxes and shall sell the alcoholic beverages with all
applicable taxes included in the selling price. The total amount of the applicable taxes shall be identified on
the consumer's invoice and shall specifically state the amount of the applicable sales tax included in the
invoice[Except for the regulatory license fee imposed under KRS 243.075, the applicable taxes shall be
collected by the direct shipper licensee from the consumer. The regulatory license fee and all other applicable
taxes shall be separately stated on the invoice, bill of sale, or similar document given to the consumer].
(4) The amount of the taxes to be paid by the direct shipper licensee under this section shall be calculated based on
the sale of the alcoholic beverages occurring at the location identified as the consumer's address on the
shipping label.
(5) For taxes owed by a direct shipper licensee under this section, the direct shipper licensee shall meet the
standards of the destination state, including filing a return that contains its license number and federal tax
identification number.
Section 5. KRS 243.030 is amended to read as follows:
The following licenses that authorize traffic in distilled spirits and wine may be issued by the distilled spirits
administrator. Licenses that authorize traffic in all alcoholic beverages may be issued by both the distilled spirits
administrator and malt beverages administrator. The licenses and their accompanying fees are as follows:
(1) Distiller's license:
(a) Class A, per annum ..................................................................................................... $3,090.00
(b) Class B (craft distillery), per annum ............................................................................ $1,000.00
(c) Off-premises retail sales outlet, per annum .................................................................. $300.00
(2) Rectifier's license:
(a) Class A, per annum ..................................................................................................... $2,580.00
(b) Class B (craft rectifier), per annum ................................................................................. $825.00
(3) Winery license, per annum .................................................................................................... $1,030.00
(4) Small farm winery license, per annum ...................................................................................... $110.00
(a) Small farm winery off-premises retail license, per annum .............................................. $30.00
(5) Wholesaler's license, per annum ............................................................................................ $2,060.00
(6) Quota retail package license, per annum ................................................................................... $570.00
(7) Quota retail drink license, per annum ........................................................................................ $620.00
(8) Transporter's license, per annum .............................................................................................. $210.00
(9) Special nonbeverage alcohol license, per annum ........................................................................ $60.00
(10) Special agent's or solicitor's license, per annum ......................................................................... $30.00
(11) Bottling house or bottling house storage license,
per annum $1,030.00
(12) Special temporary license, per event ........................................................................................ $100.00
(13) Special Sunday retail drink license, per annum ...................................................................... . $520.00
(14) Caterer's license, per annum ................................................................................................... . $830.00 ACTS OF THE GENERAL ASSEMBLY 10
(15) Special temporary alcoholic beverage
auction license, per event .......................................................................................................... $100.00
(16) Extended hours supplemental license, per annum ................................................................. $2,060.00
(17) Hotel in-room license, per annum ............................................................................................. $210.00
(18) Air transporter license, per annum ............................................................................................ $520.00
(19) Sampling license, per annum ..................................................................................................... $110.00
(20) Replacement or duplicate license ................................................................................................ $25.00
(21) Entertainment destination center license:
(a) When the licensee is a city, county, urban-county government, consolidated local government, charter
county government, or unified
local government, per annum ..............................................................$2,577.00
(b) All other licensees, per annum .................................................................................... $7,730.00
(22) Limited restaurant license, per annum ............................. . ........................................................$780.00
(23) Limited golf course license, per annum ............................. ........................................................$720.00
(24) Small farm winery wholesaler's license, per annum ................................................................. $110.00
(25) Qualified historic site license, per annum .............................................................................. $1,030.00
(26) Nonquota type 1 license, per annum ........................ .......................... ...................................$4,120.00
(27) Nonquota type 2 license, per annum ................................ ..........................................................$830.00
(28) Nonquota type 3 license, per annum ................................ ..........................................................$310.00
(29) Distilled spirits and wine storage license, per annum .......................... ..................................$620.00
(30) Out-of-state distilled spirits and wine supplier's license,
per annum .. ....................................................................................................... .....$1, 550.00
(31) Limited out-of-state distilled spirits and
wine supplier's license, per annum ......................... ................................................................$260.00
(32) Authorized public consumption license, per annum .................................................................. $250.00
(33) Direct shipper license, per annum .............................................................................................. $100.00
(34) Limited nonquota package license, per annum ....................................................................... $300.00
(35) A nonrefundable fee of sixty dollars ($60) shall be charged to process each new transitional license pursuant to
KRS 243.045.
(36)[(35)] Other special licenses the board finds necessary for the proper regulation and control of the traffic in
distilled spirits and wine and provides for by administrative regulation. In establishing the amount of license
taxes that are required to be fixed by the board, it shall have regard for the value of the privilege granted.
(37)[(36)] The fee for each of the first five (5) supplemental bar licenses shall be the same as the fee for the
primary retail drink license. There shall be no charge for each supplemental license issued in excess of five (5)
to the same licensee at the same premises.
A nonrefundable application fee of fifty dollars ($50) shall be charged to process each new application under this
section, except for subsections (4), (8), (9), (10), (12), (15), (19), and (20) of this section. The application fee shall be
applied to the licensing fee if the license is issued; otherwise it shall be retained by the department.
Section 6. KRS 243.0305 is amended to read as follows:
(1) Any licensed Kentucky distiller that is located in wet territory or in any precinct that has authorized the limited
sale of alcoholic beverages at distilleries under KRS 242.1243 and that has a gift shop or other retail outlet on
its premises may conduct the activities permitted under this section as a part of its distiller's license. CHAPTER 39
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(2) (a) For purposes of all retail drink and package sales that occur pursuant to subsection (3), (4), (7),[(8), or]
(9), (10), or (12) of this section, the distillery shall:
1. Be permitted to transfer its products from the distillery proper to the location where those retail
sales occur without having to transfer physical possession of those distilled spirits to a licensed
wholesaler; and
2. [Effective January 1, 2022, ]Without otherwise reporting those distilled spirits to a licensed
wholesaler, report those retail sales and pay all taxes required to the Department of Revenue at
the time and in the manner required by the Department of Revenue in accordance with its powers
under KRS 131.130(3).
(b) 1. [Effective January 1, 2022, ]A distiller selling distilled spirits in accordance with this subsection
shall pay all wholesale sales taxes due under KRS 243.884. For the purposes of this subsection,
"wholesale sales" means a sale of distilled spirits made by a distiller under subsection (3)(b), (4),
(7),[(8), and] (9), (10), and (12) of this section, if required by KRS 243.884, excluding sales
made by a distiller under subsection (4)(a)3. and (b) of this section that utilize a licensed
wholesaler.
2. [Effective January 1, 2022, ]A distiller shall pay the excise tax on distilled spirits in accordance
with KRS 243.720 and 243.730.
(c) All other distilled spirits that are produced by the distillery shall be sold and physically transferred in
compliance with all other relevant provisions of KRS Chapters 241 to 244.
(3) A distiller may sell its own private selection packages and souvenir packages at retail:
(a) To consumers in accordance with KRS 243.027 to 243.029 if it holds a direct shipper license; and
(b) To distillery visitors of legal drinking age, in quantities not to exceed an aggregate of[ four and one-half
(4-1/2) liters per purchaser per day for sales prior to January 1, 2021, and in quantities not to exceed an
aggregate of] nine (9) liters per purchaser per day[ on and after January 1, 2021].
(4) A distiller may conduct private selection events and sell private selection packages at retail, as follows:
(a) Distillers may sell private selection packages to consumers who participated in a private selection
event only by:
1. Shipping the private selection packages in accordance with KRS 243.027 to 243.029 if the
distiller holds a direct shipper license, but these sales and shipments shall be exempt from the
quantity limitations established in KRS 243.028(1);
2. Selling the private selection packages to the participating consumers directly from the
distillery premises, but these sales shall be exempt from the quantity limitations established in
subsection (3)(b) of this section; or
3. Selling the private selection packages through a wholesaler and to a licensed retailer of the
consumer's choice. The distillery and wholesaler's cooperation in facilitating the sale of the
private selection packages to the retailer of the consumer's choice shall not be deemed a
violation of Section 12 of this Act.
(b) Except as provided in KRS 243.036, distillers may sell private selection packages to retail licensees
that participated in a private selection event only through a licensed wholesaler.
(c) A distillery shall make available for purchase not less than seventy percent (70%) of its annual
private selection packages to licensed wholesalers and shall maintain records of such transactions in
accordance with KRS 244.150.
(d) Distillers may sell private selection packages to wine and distilled spirits wholesalers, malt beverage
distributors, and microbreweries that hold a quota retail drink or quota retail package license that
participated in a private selection event if the private selection packages resulting from the event are
sold only through a licensed retailer.
(5) Hours of sale for souvenir packages sold at retail and private selection packages sold[ to distillery visitors] at
retail shall be in conformity with KRS 244.290(3). ACTS OF THE GENERAL ASSEMBLY 12
(6)[(5)] Except as provided in this section, souvenir package and private selection package sales to distillery
visitors shall be governed by all the statutes and administrative regulations governing the retail sale of distilled
spirits by the package.
(7)[(6)] Souvenir packages sold to distillery visitors under subsection (3)(b) of this section, which are not made
available to wholesalers licensed in Kentucky or elsewhere, shall be registered by the licensed distiller with
the department and shall be sold exclusively to in-person distillery visitors in quantities not to exceed three
(3) liters per person per day[pursuant to KRS 244.440 and made available to a Kentucky licensed wholesaler].
(8)[(7)] Notwithstanding any provision of KRS 244.050 to the contrary, a distillery holding a sampling license
may allow visitors to sample distilled spirits under the following conditions:
(a) Sampling shall be permitted only on the licensed premises during regular business hours;
(b) A distillery shall not charge for the samples; and
(c) A distillery shall not provide more than one and three-fourths (1-3/4) ounces of samples per visitor per
day, except in connection with a private selection event.
(9)[(8)] Notwithstanding the provisions of KRS 243.110, in accordance with this section, a distillery located in
wet territory or in any territory that has authorized the limited sale of alcoholic beverages under an election
held pursuant to KRS 242.1243 may:
(a) Hold an NQ2 retail drink license for the sale of alcoholic beverages on the distillery premises; and
(b) Employ persons to engage in the sale or service of alcohol under an NQ2 license, if each employee
completes the department's Server Training in Alcohol Regulations program within thirty (30) days of
beginning employment.
(10)[(9)] A distiller may sell to consumers at fairs, festivals, and other similar types of events located in wet
territory. A distiller may:
(a) Sell alcoholic beverages by the drink, containing spirits distilled or bottled on the premises of the
distillery;
(b) Sell by the package in quantities not to exceed nine (9) liters per person, per day; and
(c) Serve complimentary samples not to exceed one and three-fourths (1-3/4) ounces per person, per day.
(11)[(10)] A distiller may offer for sale in its gift shop products that were produced in collaboration with a brewer
or microbrewer, except that:
(a) These packages shall not be exclusive to the distiller's gift shop; and
(b) The distiller shall purchase the jointly branded souvenir package only from a licensed malt beverage
distributor or a microbrewery pursuant to KRS 243.157(1)(f). A microbrewery selling and delivering
the jointly branded souvenir package directly to a distiller under this subsection shall provide notice
to the distributor of any self-distribution delivery by electronic or other means.
(12) A distiller that sells souvenir packages and serves complimentary samples in accordance with this section at
any of its licensed premises may, for each such premises, maintain one (1) separately licensed off-premises
retail sales outlet and engage in the activities and hold the licenses authorized in subsections (3), (4), (8),
(9), and (11) of this section if the off-premises retail sales outlet premises are located in wet territory or in a
precinct that has authorized alcoholic beverage sales by the distillery under KRS 242.1243. The distiller
shall pay the fee required under Section 5 of this Act for each off-premises retail sales outlet it maintains.
(13)[(11)] Except as expressly stated in this section, this section does not exempt the holder of a distiller's license
from:
(a) The provisions of KRS Chapters 241 to 244;
(b) The administrative regulations of the board; and
(c) Regulation by the board at all the distiller's licensed premises.
(14)[(12)] Nothing in this section shall be construed to vitiate the policy of this Commonwealth supporting an
orderly three (3) tier system for the production and sale of alcoholic beverages.
Section 7. KRS 243.110 is amended to read as follows: CHAPTER 39
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(1) Except as provided in subsection (3) of this section, each kind of license listed in KRS 243.030 shall be
incompatible with every other kind listed in that section and no person or entity holding a license of any of
those kinds shall apply for or hold a license of another kind listed in KRS 243.030.
(2) (a) Each kind of license listed in KRS 243.040(1), (3), or (4) shall be incompatible with every other kind
listed in KRS 243.040(1), (3), or (4), and no person holding a license of any of those kinds shall apply
for or hold a license of any other kind listed in KRS 243.040(1), (3), or (4).
(b) A brewery holding a license listed in KRS 243.040(5) or (8) shall not apply for or hold a license listed
in KRS 243.040(3) or (4).
(3) (a) The holder of a quota retail package license may also hold a quota retail drink license, an NQ1 retail
drink license, an NQ2 retail drink license, an NQ3 retail drink license, or a special nonbeverage alcohol
license.
(b) The holder of a transporter's license may also hold a distilled spirits and wine storage license.
(c) The holder of a distiller's license may also hold a rectifier's license, a special nonbeverage alcohol
license, a winery license, or a small farm winery license.
(d) A commercial airline system or charter flight system retail license, a commercial airline system or
charter flight system transporter's license, and a retail drink license if held by a commercial airline or
charter flight system may be held by the same licensee.
(e) A Sunday retail drink license and supplemental license may be held by the holder of a primary license.
(f) The holder of a distiller's, winery, small farm winery, brewer, microbrewery, distilled spirits and wine
supplier's, or malt beverage supplier's license may also hold a direct shipper license.
(g) The holder of an NQ1 retail drink license, an NQ2 retail drink license, or a limited restaurant license
may also hold a limited nonquota package license.
(4) Any person may hold two (2) or more licenses of the same kind.
(5) A person or entity shall not evade the prohibition against applying for or holding licenses of two (2) kinds by
applying for a second license through or under the name of a different person or entity. The state administrator
shall examine the ownership, membership, and management of applicants, and shall deny the application for a
license if the applicant is substantially interested in a person or entity that holds an incompatible license.
Section 8. KRS 243.232 is amended to read as follows:
(1) A person holding a license to sell distilled spirits by the drink or by the package at retail may sell vintage
distilled spirits purchased from a nonlicensed person upon written notice to the department in accordance with
administrative regulations promulgated by the department.
(2) Vintage distilled spirits may be resold only:
(a) By the drink by a person holding a license to sell distilled spirits by the drink; and
(b) By the package by a person holding a license to sell distilled spirits by the package.
(3) Vintage distilled spirits may be sold or resold by the package by a person holding a limited nonquota
package license.
(4) A vintage distilled spirits seller shall sell no more than twenty-four (24) vintage distilled spirits packages in
any given twelve (12) month period.
(5) Prior to selling vintage distilled spirits purchased from a vintage distilled spirits seller to a consumer, a
licensee shall provide notice of its purchase of the spirits to the department. The notice shall contain the
following information:
(a) The name, address, state license number, and phone number of the licensee purchasing vintage
distilled spirits;
(b) The name, address, and phone number of the vintage distilled spirits seller;
(c) The brand name and quantity of each vintage distilled spirits package purchased;
(d) The date of the purchase; and ACTS OF THE GENERAL ASSEMBLY 14
(e) The number of packages that the licensee has previously purchased from the same vintage distilled
spirits seller and the dates of those purchases.
Section 9. KRS 243.240 is amended to read as follows:
(1) A quota retail package license shall authorize the licensee to:
(a) Purchase, receive, possess, and sell distilled spirits and wine at retail in unbroken packages only, and
only for consumption off the licensed premises;[ and]
(b) Deliver to the consumer, at the consumer's request, alcoholic beverages that are purchased from the
licensed premises, in quantities not to exceed four and one-half (4 1/2) liters of distilled spirits and four
(4) cases of wine per consumer per day for sales prior to January 1, 2021, and in quantities not to
exceed an aggregate of nine (9) liters of distilled spirits and four (4) cases of wine per consumer per day
on and after January 1, 2021; and
(c) 1. Sell distilled spirits and wine in unbroken packages only at fairs and festivals held in wet
territory if the fair or festival is located in the same county as the quota retail package license
holder's licensed premises; and
2. Notwithstanding KRS 243.0307, sell and provide samples of distilled spirits and wine at fairs
and festivals held in wet territory if the fair or festival is located in the same county as the
quota retail package license holder's licensed premises.
(2) The licensee shall purchase distilled spirits and wine in retail packages only and only from:
(a) Licensed wholesalers;
(b) Those licensees authorized to sell distilled spirits and wine by the package at retail, but only if the
distilled spirits and wine have first gone through the three (3) tier system; or
(c) From a distillery souvenir gift shop.
(3) The restrictions and permissions for sales to quota retail package licensees and to consumers that are
authorized under subsection (4) of Section 6 of this Act shall supersede any conflicting provisions of this
section.
Section 10. KRS 243.260 is amended to read as follows:
(1) A special temporary license may be issued in wet territory to any regularly organized fair, exposition, racing
association, farmers market, or other party, when in the opinion of the board a necessity for the license exists.
Unless inconsistent with this section, a special temporary licensee shall have the same privileges and
restrictions of a quota retail drink licensee and an NQ4 retail malt beverage drink licensee at the designated
premises, not to exceed thirty (30) days.
(2) A nonprofit organization holding an NQ4 retail malt beverage drink license may be issued a special temporary
license to sell distilled spirits and wine by the drink on the licensed premises for a specified and limited time,
not to exceed ten (10) days. The temporary license may be issued in conjunction with any public or private
event, including but not limited to weddings, receptions, reunions, or similar occasions.
(3) The holder of a special temporary license may sell, serve, and deliver alcoholic beverages by the drink, for
consumption only at the designated premises and the date and times for the qualifying event.
(4) A special temporary license shall not be issued for an event held in dry or moist territory.
Section 11. KRS 243.884 is amended to read as follows:
(1) (a) For the privilege of making "wholesale sales" or "sales at wholesale" of beer, wine, or distilled spirits, a
tax is hereby imposed upon all wholesalers of wine and distilled spirits, all distributors of beer, all direct
shipper licensees shipping alcohol to a consumer at a Kentucky address, all distillers making sales
pursuant to KRS 243.0305(3)[(b)], (4)(a)1. and 2., (4)(c), (7),[(8), and] (9), (10), and (12), and all
microbreweries selling malt beverages under KRS 243.157.
(b) Prior to July 1, 2015, the tax shall be imposed at the rate of eleven percent (11%) of the gross receipts
of any such wholesaler or distributor derived from "sales at wholesale" or "wholesale sales" made
within the Commonwealth, except as provided in subsection (3) of this section. For the purposes of this
section, the gross receipts of a microbrewery making "wholesale sales" shall be calculated by CHAPTER 39
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determining the dollar value amount that the microbrewer would have collected had it conveyed to a
distributor the same volume sold to a consumer as allowed under KRS 243.157 (3)(b) and (c).
(c) On and after July 1, 2015, the following rates shall apply:
1. For distilled spirits, eleven percent (11%) of wholesale sales or sales at wholesale; and
2. For wine and beer:
a. Ten and three-quarters of one percent (10.75%) for wholesale sales or sales at wholesale
made on or after July 1, 2015, and before June 1, 2016;
b. Ten and one-half of one percent (10.5%) for wholesale sales or sales at wholesale made
on or after June 1, 2016, and before June 1, 2017;
c. Ten and one-quarter of one percent (10.25%) for wholesale sales or sales at wholesale
made on or after June 1, 2017, and before June 1, 2018; and
d. Ten percent (10%) for wholesale sales or sales at wholesale made on or after June 1, 2018.
(d) On and after March 12, 2021, the following rates shall apply for direct shipper sales:
1. For distilled spirits shipments, eleven percent (11%) for wholesale sales or sales at wholesale;
and
2. For wine and beer shipments, ten percent (10%) for wholesale sales or sales at wholesale.
(e) For direct shipper sales or sales made pursuant to Section 6 of this Act, if a wholesale price is not
readily available, the direct shipper licensee or distillery shall calculate the wholesale price to be
seventy percent (70%) of the retail price of the alcoholic beverages.
(2) Wholesalers of distilled spirits and wine, distributors of malt beverages, microbreweries, distillers, and direct
shipper licensees shall pay and report the tax levied by this section on or before the twentieth day of the
calendar month next succeeding the month in which possession or title of the distilled spirits, wine, or malt
beverages is transferred from the wholesaler or distributor to retailers, or by microbreweries, distillers, or
direct shipper licensees to consumers in this state, in accordance with rules and regulations of the Department
of Revenue designed reasonably to protect the revenues of the Commonwealth.
(3) Gross receipts from sales at wholesale or wholesale sales shall not include the following sales:
(a) Sales made between wholesalers or between distributors;
(b) Sales from the first fifty thousand (50,000) gallons of wine produced by a small farm winery in a
calendar year made by:
1. The small farm winery; or
2. A wholesaler of that wine produced by the small farm winery; and
(c) Sales made between a direct shipper licensee and a consumer located outside of Kentucky.
Section 12. KRS 244.240 is amended to read as follows:
(1) No distiller, rectifier, winery, or wholesaler and no employee, servant, or agent of a distiller, rectifier, winery,
or wholesaler shall:
(a) Except as provided in KRS 243.0305 and 243.155, be interested directly or indirectly in any way in any
premises where distilled spirits or wine is sold at retail or in any business devoted wholly or partially to
the sale of distilled spirits or wine at retail;
(b) Make or cause to be made any loan to any person engaged in the manufacture or sale of distilled spirits
or wine at wholesale or retail;
(c) Make any gift or render any kind of service whatsoever, directly or indirectly, to any licensee that may
tend to influence the licensee to purchase the product of the distiller, rectifier, winery, or wholesaler; or
(d) Enter into a contract with any retail licensee under which the licensee agrees to confine the licensee's
sales to distilled spirits or wine manufactured or sold by one (1) or more distillers, rectifiers, wineries,
or wholesalers. This type of contract shall be void. ACTS OF THE GENERAL ASSEMBLY 16
(2) Nothing in this section shall prohibit the giving of discounts in the usual course of business if the same
discounts are offered to all licensees holding the same license type buying similar quantities.
(3) A retailer shall not require or demand that a distiller, rectifier, winery, or wholesaler violate this section.
(4) This section shall not prohibit a distiller from:
(a) Supplying a retailer with barrels for the purpose of holding barrel-aged and batched cocktails; and
(b) Selling private selection packages as authorized in subsection (4)(a)3. of Section 6 of this Act.
Section 13. KRS 244.260 is amended to read as follows:
(1) No wholesaler shall purchase, import, keep upon the licensed premises, or sell any distilled spirits or wine in
any container except in the original sealed package containing quantities of not less than fifty (50) milliliters
each of distilled spirits or one hundred (100) milliliters of wine, and not exceeding the largest applicable
federal standard of fill size for[one and seventy-five hundredths (1.75) liters of] distilled spirits or two
hundred twenty (220) liters of wine, as received from the distiller, rectifier, winery, or wholesaler. The
containers shall be in sizes authorized by federal law and at all times shall have affixed to them all labels
required by federal law or the administrative regulations of the board.
(2) Except for purposes of preparing barrel-aged and batched cocktails as defined in Section 1 of this Act and
as permitted by KRS 243.055 and 243.082(4) and subsection (3) of this section, licensees holding retail
distilled spirits and wine drink licenses shall not keep upon their licensed premises any distilled spirits or wine
in any container except in the original package as received from the wholesaler and authorized by federal law.
Containers of distilled spirits shall not exceed the largest applicable federal standard of fill size for distilled
spirits[one and seventy-five hundredths (1.75) liters] or be less than fifty (50) milliliters of distilled spirits.
Containers of wine shall not exceed two hundred twenty (220) liters or be less than one hundred (100)
milliliters. All containers shall at all times have affixed to them any labels required by federal law or
administrative regulations of the board.
(3) Licensees holding retail distilled spirits and wine package licenses shall not keep upon their licensed premises
any distilled spirits or wine in any container except in the original package as received from the wholesaler and
authorized by federal law. Containers of distilled spirits shall not exceed the largest applicable federal
standard of fill size for distilled spirits[one and seventy-five hundredths (1.75) liters] or be less than fifty (50)
milliliters of distilled spirits. Containers of wine shall not exceed two hundred twenty (220) liters or be less
than one hundred (100) milliliters. Except as permitted by subsection (2) of this section, all containers shall at
all times remain sealed and shall have affixed to them any labels required by federal law or administrative
regulations of the board.
Section 14. KRS 243.034 is amended to read as follows:
(1) A limited restaurant license may be issued to an establishment meeting the definition criteria established in
KRS 241.010(37)[(36)] as long as the establishment is within:
(a) Any wet territory; or
(b) Any moist precinct that has authorized the sale of alcoholic beverages under KRS 242.1244.
(2) A limited restaurant license shall authorize the licensee to purchase, receive, possess, and sell alcoholic
beverages at retail by the drink for consumption on the licensed premises or off-premises consumption
pursuant to KRS 243.081. The licensee shall purchase alcoholic beverages only from licensed wholesalers or
distributors. The license shall not authorize the licensee to sell alcoholic beverages by the package.
(3) The holder of a limited restaurant license shall maintain at least seventy percent (70%) of its gross receipts
from the sale of food and maintain the minimum applicable seating requirement required for the type of
limited restaurant license.
(4) A limited restaurant as defined by KRS 241.010(37)(a)[(36)(a)] shall:
(a) Only sell alcoholic beverages incidental to the sale of a meal; and
(b) Not have an open bar and shall not sell alcoholic beverages to any person who has not purchased or
does not purchase a meal.
Section 15. KRS 243.0341 is amended to read as follows: CHAPTER 39
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(1) Notwithstanding any other provision of law, any city or county that conducted an election under KRS
242.1244(2) prior to January 1, 2016, for by the drink sales of alcoholic beverages in restaurants and dining
facilities seating one hundred (100) persons or more or any city with limited sale precincts created pursuant to
KRS 242.1292 may elect to act under this section.
(2) Upon a determination by the legislative body of a city or county that:
(a) An economic hardship exists within the city or county; and
(b) Expanded sales of alcoholic beverages by the drink could aid in economic growth;
the city or county may, after conducting a public hearing that is noticed to the public in accordance with the
KRS Chapter 424, adopt an ordinance authorizing by the drink sales of alcoholic beverages in restaurants and
dining facilities containing seating for at least fifty (50) persons and meeting the requirements of subsection
(3) of this section.
(3) The ordinance enacted by a city or county pursuant to subsection (2) of this section shall authorize the sale of
alcoholic beverages under the following limitations:
(a) Sales shall only be conducted in restaurants and other dining facilities meeting the requirements of KRS
241.010(37)(a)[(36)(a)]; and
(b) The provisions of KRS 243.034 shall apply to any restaurant or dining facility operating under a license
issued pursuant to this section.
(4) A city or county acting under this section may allow limited restaurant sales as defined in KRS
241.010(37)[(36)].
(5) The enactment of an ordinance under this section shall not:
(a) Modify the city's or county's ability to issue a limited restaurant license to restaurants or other dining
facilities meeting the requirements of KRS 241.010(37)(b)[(36)(b)]; or
(b) Affect, alter, or otherwise impair any license previously issued to a restaurant or dining facility meeting
the requirements of KRS 241.010(37)(b)[(36)(b)].
Section 16. Whereas distilled spirits represent a signature industry of the Commonwealth, and this industry
is essential for job creation and other economic benefits to the state, an emergency is declared to exist, and this Act
takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law.
Signed by Governor March 29, 2022.