RELATES TO:KRS
243.030(35),
244.130,
244.440
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
241.060 authorizes the board to promulgate
reasonable administrative regulations governing procedures relative to the
applications for and revocations of licenses, and the supervision and control
of the use, manufacture, sale, transportation, storage, advertising, and
trafficking of alcoholic beverages.
KRS
243.030(35) authorizes the
board to promulgate administrative regulations to provide for special licenses
that the board finds necessary for the proper regulation and control of the
traffic in distilled spirits and wine. This administrative regulation provides
for the creation of an in-state distilled spirits supplier license to regulate
the traffic in distilled spirits by resident owners and suppliers of distilled
spirits brands.
Section 1. Definition.
"In-state distilled spirits supplier" means a resident brand owner and supplier
of distilled spirts products who does not operate a distillery, but through
other legal means creates distilled spirits products to sell under its own
brand name.
Section 2. License.
(1) An in-state distilled spirits supplier
license shall authorize the licensee to:
(a)
Sell distilled spirits under brands that the licensee owns, for which the
licensee is the primary source of supply, or in which the licensee has an
exclusive interest, at wholesale to wholesalers in the Commonwealth;
and
(b) Advertise distilled spirits
brands that the licensee is authorized to sell in accordance with
KRS
244.130.
(2) An in-state distilled spirits supplier
license shall not authorize the licensee to purchase, transport, store, or
possess distilled spirts for the purposes of sale.
Section 3. Qualifications.
(1) To qualify for an in-state distilled
spirits supplier license, the applicant shall:
(a) Reside in Kentucky;
(b) Be the owner, the primary source of
supply, or have an exclusive interest in a particular brand of distilled
spirits;
(c) Obtain a federal
wholesaler's basic permit;
(d)
Register with the Kentucky Department of Revenue; and
(e) Comply with all federal and state laws
and regulations.
(2) An
applicant that wishes to sell 50,000 or more gallons of distilled spirits
shall:
(a) Complete the Online In-State
Distilled Spirits Supplier License Application for an in-state distilled
spirits supplier license via the department's Online Portal at:
https://abc-portal.ky.gov/s/
following the Kentucky Alcoholic Beverage Control Licensing Portal
Applicant/Licensee User Guide (Request or Apply) that depicts the application
process through the department's online portal; and
(b) Pay an annual fee equal to the amount of
the fee for the out-of-state distilled spirits and wine supplier's license
under
KRS
243.030(30).
(3) An applicant that wishes to sell less
than 50,000 gallons of distilled spirits shall:
(a) Complete the Online In-State Distilled
Spirits Supplier License Application for a limited in-state distilled spirits
supplier license via the department's Online Portal at:
https://abc-portal.ky.gov/s/
following the Kentucky Alcoholic Beverage Control Licensing Portal
Applicant/Licensee User Guide (Request or Apply) that depicts the application
process through the department's online portal; and
(b) Pay an annual fee equal to the amount of
the fee for the limited out-of-state distilled spirits and wine supplier's
license under
KRS
243.030(31).
Section 4. Prohibited substantial interests.
An in-state distilled spirits supplier license applicant and in-state distilled
spirits supplier licensee shall comply with
804
KAR 4:015 and for that purpose shall be considered a
"manufacturer" as defined in
804
KAR 4:015.
Section
5. Brand Registration. In accordance with
804 KAR
4:410 and
KRS
244.440, an in-state distilled spirits
supplier licensee shall register with the department all brands the licensee
intends to sell in Kentucky.
Section
6. Taxes. An in-state distilled spirits supplier licensee shall
pay all applicable taxes for the sales of its products.
Section 7. Direct Shipper Licenses. This
administrative regulation shall not be interpreted to relate to direct shipper
licenses.
Section 8. Incorporation
by Reference.
(1) The following material is
incorporated by reference:
(a) "Online
In-State Distilled Spirits Supplier License Application", December 2021;
and
(b) "Kentucky Alcoholic
Beverage Control Licensing Portal Applicant\Licensee User Guide (Request or
Apply)", September 2021, depicting the application process through the
department's online portal.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at Department of Alcoholic
Beverage Control, 500 Mero Street, 2 NE 33, Frankfort, Kentucky 40601, Monday
through Friday, 8:00 a.m. to 4:30 p.m. This material is also available on the
department's Web site at
https://abc.ky.gov/newstatic_Info.aspx?static_ID=652.
