LAST CALL! Kentucky’s Private Barrel Selection Program Needs Your Help, NOW

LAST CALL! HB 500Kentucky’s entire Private Barrel Selection (PBS) program is in jeopardy, but there’s hope – YOU CAN HELP! The time for action is NOW. As of today, there are only 7 works days remaining for HB 500 to clear the last and final critical step for passage in KY legislation via the KY Senate. This is […]

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LAST CALL! HB 500

Kentucky’s entire Private Barrel Selection (PBS) program is in jeopardy, but there’s hope – YOU CAN HELP!

The time for action is NOW. As of today, there are only 7 works days remaining for HB 500 to clear the last and final critical step for passage in KY legislation via the KY Senate. This is where YOU come in!

If you live in Kentucky, and you’re a fan of PBS’s (if not, why?), contact your Senator immediately and tell them to “please pass HB 500”. There are other booze related laws within this bill that will enhance the Kentucky Bourbon Experience for everyone.

Below is a rundown on HB 500 and quick easy ways to contact your Senator (please do it!).

Backstory and Main Points of HB 500

During the 2021 Fall Session, state level regulators (ABC) publicly aired that as it currently exists, PBS are NOT technically legal. New legislation would be necessary in order to create the proper legal channels allowing PBS to commence (legally).

The major problem – a distillery visitor is only allowed 1.75 ozs of booze to sample as the law the currently stands. The problem within the problem, there are no laws or jurisdiction solely for PBS participants. As now, Joe Schmo or Susy Q taking a standard tour is the same as a group conducting a PBS in the eyes of the law.

HB 500 addresses this by treating PBS participants as a separate entity with its own rules vs the standard tour going visitor. Special thanks to House Majority Whip, Rep Chad McCoy (Bardstown, of course), and all other law makers for your help and efforts to push this through. Representative McCoy in particular has been a true beacon over the years for the Kentucky Bourbon Industry, our nickname for him as of this moment – “The Real McCoy”.

Here are the main points of HB 500:

  1. Authorize private barrel selections and allow consumers and non-profits to buy their private-selection bottles at distillery gift shops.
  2. Allow distilleries to open one satellite tasting room each, bringing new downtown development, tourism and vibrancy to locations with and without distilleries. Currently, breweries and wineries can operate as many satellite tasting rooms as they wish.
  3. Let consumers buy exclusive, visitor-center-only bottles at distillery gift shops. Beer and wine lovers know this privilege well. It would draw repeat visitors to the Commonwealth and answer the question so many Kentuckians and tourists ask following their distillery tours; “What can I buy here that I can’t back home?”

What’s up with #3?…Legalize “distillery only” sold bottles? Isn’t that already a thing in Kentucky? Kinda. We looked into it.

In essence, by law, a product has to be available for purchase from a distributor at the state wide retail level. Technically, as it stands now, a distillery gift shop can’t have full autonomy of a release.

For example, Distillery X touts “available only at our visitor center”. That’s very very close to being accurate. However, because of current law, somewhere out there in KY, there may be just one case of that product floating around at some liquor store. So, “distillery only” is currently almost entirely accurate;) If passed, HB 500 will allow this to be 100% entirely accurate.

On a lesser note, the new law proposes that for a “distillery only” release, a consumer is limited to 3L of that purchase (four 750ml) vs the standard 9L cap (twelve 750ml) per each visitor.

HOW TO CONTACT YOUR KY SENATOR

  1. Click THIS LINK, type “Please support HB 500” in an email as it will automatically connect with your district based Senator.
  2. Call the legislative hotline at 800-372-7181 and leave a message.

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SOS! KY’s Private Barrel Program needs your help, NOW

KY HB 500Try imagining an imbibing world without any KY Private Barrel Selections (PBS). We agree, bad idea. It is a disturbing possibility however as state level regulators have publicly aired that as it currently exists, PBS are NOT technically legal. New legislation is necessary in order to create the proper legal channels allowing PBS to commence […]

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KY HB 500

Try imagining an imbibing world without any KY Private Barrel Selections (PBS). We agree, bad idea.

It is a disturbing possibility however as state level regulators have publicly aired that as it currently exists, PBS are NOT technically legal. New legislation is necessary in order to create the proper legal channels allowing PBS to commence (legally).

{Heroic trumpets sounding} KY SB 160 and HB 500 have each been proposed to save the day. Each contain a specific pathway of which PBS would be legal. HB 500 has some additional Bourbon related bonuses that include the sale of exclusive “distillery only” bottles and also barrel aged cocktails. From what our insider sources suggest, support HB 500 with full force.

Main Points of HB 500:

  1. Authorize private barrel selections and allow consumers and non-profits to buy their private-selection bottles at distillery gift shops.
  2. Allow distilleries to open one satellite tasting room each, bringing new downtown development, tourism and vibrancy to locations with and without distilleries. Currently, breweries and wineries can operate as many satellite tasting rooms as they wish.
  3. Let consumers buy exclusive, visitor-center-only bottles at distillery gift shops. Beer and wine lovers know this privilege well. It would draw repeat visitors to the Commonwealth and answer the question so many Kentuckians and tourists ask following their distillery tours; “What can I buy here that I can’t back home?”

URGENCY

Not saying it’s time to panic, but it’s almost time to panic. Lets call it crunch time for now. Today is day 43 of the 60 day session window for legislative approval, just a shade over 2 weeks out. If HB 500 is not passed by then, an emergency session could commence, but from what we’ve been told, that would be doubtful in this scenario.

Horse Trading” (via wikipedia) refers to complex bargaining or other transactions, such as political vote trading. What this term means essentially applied here, what seems like a no-brainer can become tricky and encumbered in political tape. More playing devil’s advocate here. Bottom line though, the more support from the public, the better.

Get Involved! Here’s How To Contact Your KY House Rep

PLEASE CLICK HERE and with one swoop, you can email your KY House Rep to advocate PBS (and some other cool booze stuff)! Link provided by the KY Distillers Association (KDA).

FULL LIST & CONTACT INFO of Kentucky House Reps and Senators: CLICK HERE

FIND your KY House Rep Senator and Rep (type home address in search bar): CLICK HERE

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Potential Solutions for Kentucky’s Private Barrel Selection Program Legal Dilemma: SB 160 & HB 500

Private Barrel SelectionThe words “quick action” and “legislation” don’t normally go hand-in-hand. But in the land of Bourbon, hey, desperate times call for desperate measures. Earlier this month, we splashed a story on how Kentucky’s entire “Private Barrel Selection” (PBS) program was called out at a Fall 2021 legislative session by the state regulatory eyes under the […]

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Private Barrel Selection

The words “quick action” and “legislation” don’t normally go hand-in-hand. But in the land of Bourbon, hey, desperate times call for desperate measures.

Earlier this month, we splashed a story on how Kentucky’s entire “Private Barrel Selection” (PBS) program was called out at a Fall 2021 legislative session by the state regulatory eyes under the lens of being kinda sorta not legal. Not good. However, the scrutiny and tone not necessarily being to eliminate, but more on the lines of “well, this isn’t legal as it stands now, lets look at fixing it”.

What’s Illegal about Private Barrel Selections?

In KY, the law of the land says a visitor to a distillery is permitted to consume no more than 1.75 ounces of spirits and only 9 liters (twelve 750 ml’s) for purchase at that distillery. When on a PBS, it’s very very likely you’ll sample more than 1.75oz’s. The real problem, there aren’t any laws strictly for PBS. So now, PBS falls under the existing conditions for regular distillery visitors and site seers. There’s also concern with the retail sale of PBS and laws against exerted unfair force from producer to retailer.

SB 160 and HB 500: Potential Solutions for PBS Dilemma

On Feb 10th and Feb 14th, 2 different House Bills, HB 160 and HB 500 respectively, were proposed. Each designed to make PBS legal and remove any fuss that currently exists with PBS. SB 160 has tunnel vision solely on PBS where as HB 500 has some additional booze benefits to the consumer/tourism realm. Hint hint – think barrel aged cocktails for example.

SB 160 Breakdown: Here’s What It Would Do

You got to love the last three words of the opening line,”SB160 SALE OF ALCOHOLIC BEVERAGES (SCHICKEL, JOHN) AN ACT relating to the sale of alcoholic beverages and declaring an emergency“.

  • Amend KRS 241.010 to redefine “consumer” and define “private selection event” and “private selection package”
  • Amend KRS 243.027 to authorize a manufacturer to ship samples to persons or entities engaged in private selection events; indicate that the shipped sample quantity limits apply to each separate recipient
  • Amend KRS 243.0305 to allow a distiller to conduct private selection events and sell private selection packages at retail
  • Amend KRS 243.884 to exempt most private selection package sales from the wholesale tax
  • Amend KRS 244.240 to exclude a distiller selling private selection packages from the interlocking interests prohibition

HB 500 Breakdown: Here’s What It Would Do

Like SB 160, HB 500 would set specific parameters in defining Private Barrel Events (the act of Private Barrel Selecting) and participants within it, but as you can see below, there are additional objectives.

One being to set legal parameters for “Barrel Aged and Batched Cocktails”. Another, allowing a distillery to have 1 (only) off-site tasting room in KY. Conceptually, think perhaps satellite tasting rooms for a microbrewery.

  • Amend KRS 241.010 to define “barrel-aged and batched cocktails,” “private selection event,” and “private selection package” and to redefine “consumer” and “vintage distilled spirit”.
  • Create a new section of KRS Chapter 243 to establish a “limited nonquota package license” that allows designated alcoholic beverage drink licensees to sell vintage distilled spirits and private selection packages
  • Amend KRS 243.027 to authorize a manufacturer to ship samples to persons or entities engaged in private selection events
  • Indicate that the shipped sample quantity limits apply to each separate recipient
  • Amend KRS 243.029 to require a direct shipper licensee to include all applicable taxes in the selling price for alcoholic beverages
  • Include sales tax as a separate item on the customer’s invoice
  • Amend KRS 243.030 to set a $300 annual fee for a limited nonquota package license and for an off-premises retail sales outlet license
  • Amend KRS 243.0305 to allow a distiller to conduct private selection events and sell private selection packages at retail
  • Set package and sample limits for sales at fairs, festivals, and other similar types of events
  • Permit distillers to purchase jointly branded souvenir packages from microbreweries
  • Restrict a distiller to only one off-premises retail site for each of its licensed premises
  • Amend KRS 243.110 to make a limited nonquota package license compatible with listed drink licenses
  • Amend KRS 243.232 to authorize a limited nonquota package license holder to sell vintage distilled spirits
  • Amend KRS 243.240 to exclude private selection package sales from the normal quota retail package license restrictions
  • Amend KRS 243.260 to issue a special temporary license for farmers markets
  • Amend KRS 243.884 to exempt most private selection package sales from the wholesale tax
  • Amend KRS 244.240 to exclude a distiller selling private selection packages or supplying barrels for barred-aged and batched cocktails from the interlocking interests prohibition
  • Amend KRS 244.260 to permit a retailer to keep distilled spirits or wine in a container for preparing barred-aged and batched cocktails
  • Align distilled spirit container limits with the largest applicable federal standard of fill size
  • Amend KRS 243.034 and 243.0341 to conform

Both SB 160 and HB 500 are in the very early stages of proposal. We will keep you posted with updates. If neither bills pass, well, we don’t even want to go there.

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