Kentucky Alcohol Shipping Regulations Update
Kentucky's new regulations allow in-state and out-of-state license holders to ship alcohol directly to consumers, with requirements for licensure, compliance, and carrier reporting. The changes aim to enhance competition, meet consumer demand, and ensure parity, while maintaining the state's 3-tier system. Additional provisions cover labeling, ID verification, tax collection, and penalties for misuse of regulatory fees. The updates also permit malt beverages manufacturers to ship to Kentucky consumers and allow various transactions in the alcohol industry.
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Presentation Transcript
Alcohol Shipping L&O IJ Committee Meeting December 2019 Chairman Adam Koenig Christy Trout Van Tatenhove
What does it do? Allows in-state license holders to provide alcohol directly to Kentucky consumers and out-of- state consumers Allows out-of-state license holders to ship alcohol directly to Kentucky consumers Requires licensure and carrier reporting Requires compliance with all Kentucky substantive and tax laws and regulations Maintains the 3-Tier system in Kentucky
Why do it? Parity Consumer demand/modernization Removes artificial barriers to competition Makes Kentucky competitive nationally Constitutionality
What does it say? Allows any license holder to ship alcohol to a consumer in or out-of-state Only ship to territories where alcohol is lawful Package must be labeled ALCOHOL and 21 YEARS OLD with SIGNATURE Requires shipper to implement system to verify ID/payment Requires all taxes and fees (state and local be collected and remitted to DOR) Carrier reporting allows for proper regulatory enforcement and oversight Maintains limits on the amount of alcohol shipped Creates penalties for local jurisdictions which abuse the use of regulatory license fees Allows retailers to purchase from other retailers on a limited basis
Parrot the Parity Malt Beverages manufacturers from another state may ship to Kentucky consumers (already allowed for wine and distilled spirits) Allows dock sales for malt beverages. Retailer may transport and purchase from the distributor s premises (currently allowed for distilled spirits and wine) Wholesaler must sell or offer reasonable service to authorized recipients during its normal business hours (matches existing rule for distributors of malt beverages) Allows distillers and malt beverages to ship (currently allowed for small farm wineries)
