Private Barrel Program - BourbonSphere

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

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 […]

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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:

Authorize private barrel selections and allow consumers and non-profits to buy their private-selection bottles at distillery gift shops.
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.
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

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 […]

The post Potential Solutions for Kentucky’s Private Barrel Selection Program Legal Dilemma: SB 160 & HB 500 appeared first on The Bourbon Review.

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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Is Kentucky’s Entire Private Barrel Selection Program in Jeopardy?

I saw the headline this week “Private Barrel Kentucky Bourbon In Legal Jeopardy” from Whiskycast’s Mark Gillespie (very good guy btw who runs a terrific show). I immediately thought to myself “Oh sh**, there’s no way”. But when it comes to booze and laws, hey, anything can happen. Look at Prohibition. A tingle of fear slowly crept in. […]

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I saw the headline this week “Private Barrel Kentucky Bourbon In Legal Jeopardy” from Whiskycast’s Mark Gillespie (very good guy btw who runs a terrific show).

I immediately thought to myself “Oh sh**, there’s no way”. But when it comes to booze and laws, hey, anything can happen. Look at Prohibition. A tingle of fear slowly crept in.

If you’ve ever had the immersive pleasure of doing a private barrel pick, it’s actually not too hard to imagine some rules being gently leaned on. I’ve stood there myself, staring at 10+ barrels of cask strength unadulterated nectar of the gods, those pretty maids all lined up for selection sippin’. And besides thinking how good this day was instantly becoming, another much quieter voice saying “hmmm, I wonder if this is all legal, technically?” The quieter voice silenced with hostility and rightfully so the moment that amber goodness “thieved” straight from the barrel into your glass hits your lips. It’s a sacred experience.

Private barrel selections (PBS) have been happening in Kentucky for decades upon decades. It’s not a new concept. Bars, restaurants, private businesses, and even clubs/charity groups have been picking their own pleasure going years back. I’d speculate that now is a golden age for PBS’s in Kentucky. The Bourbon Boom has made it increasingly difficult to even get your hands on your own pick these days.

PBS’s are themselves a symbolic badge of honor meaning you take this stuff pretty seriously. And it’s cool because your barrel pick is a reflection on your personal taste. Each one is unique like a fingerprint. Take two barrels side by side on the same floor of the same rickhouse with the same mashbill…they will taste different.

A special bond is formed when you visit Bourbon Country, particularly on a PBS pilgrimage. Countless Chefs and Bar Stars from establishments nationwide travel to Kentucky for “work purposes”. Their staff squads get a true taste of Bourbon Country. They see the magic of the distillery grounds. They see the passion and the people behind the curtain of the distilleries. When your journey is done and your barrel(s) is picked – you may leave Kentucky, but Kentucky doesn’t leave you.

The thought of this whole enchanting aura surrounding PBS being axed…downright infuriating.

Just how serious is this threat? Is it a legit worry or much ado about nothing? And what in particular about PBS is bending the law?

WHERE DOES THE PBS LAW BEND?

To sum up Mark’s article noted above:

There are no distinct laws for PBS, the same laws apply to it as any site seeing distillery visitor
Each visitor is permitted 1.75 oz to taste (PBS may exceed this, allegedly;))
Each visitor can purchase up to 9 liters (12 750ml’s) of alcohol per visit. A barrel can yield 200+ bottles
Conflict with KY’s 3 tier system (producer->wholesale distributor->retailer)

IS PBS IN JEOPARDY, REALLY? WE CHECKED WITH A LEGAL SOURCE

I recently spoke with a member of the KY legal community who specializes in alcohol related law.

Per the source – YES, it is actually a legit concern and was publicly aired out during a legislative session in Fall 2021.

HOWEVER, things are being done now with legislation which, going accordingly, this should all work out fine. It’s not water under the bridge until it is though. Ideally, laws will be updated allowing KY PBS to commence legally without any fretting over technicality. Essentially, it’s not a guarantee but there’s nothing to suggest that this won’t be done properly by Uncle Sam to keep the KY PBS pipeline flowing strong and the masses happy.

Try and think of a world without PBS, not sure that’s a world I want to live in. We have faith in you KY Legislators. Pretty please with sugar on top – don’t screw this up.

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