Kentucky
General Assembly

02/11/20	introduced in House
02/13/20	to Licensing, Occupations, & Admin Regs (H)
02/14/20	posted in committee
03/11/20	reported favorably, 1st reading, to Calendar with Committee Substitute (1)
03/12/20	2nd reading, to Rules floor amendments (1) and (2) filed to Committee Substitute
03/17/20	posted for passage in the Regular Orders of the Day for Wednesday, March 18, 2020 floor amendments (3), (4), (6), (7) and (8) filed to Committee Substitute, floor amendment (5) filed to bill
03/18/20	3rd reading floor amendment (6) defeated passed 52-33 with Committee Substitute (1) and floor amendments (2) (7) and (8) received in Senate to Committee on Committees (S) taken from Committee on Committees (S) 1st reading returned to Committee on Committees (S) to Licensing, Occupations, & Administrative Regulations (S)
03/19/20	taken from Licensing, Occupations, & Administrative Regulations (S) 2nd reading returned to Licensing, Occupations, & Administrative Regulations (S) floor amendment (1) filed floor amendment (1) withdrawn
03/26/20	reported favorably, to Rules posted for passage in the Regular Orders of the Day for Thursday, March 26, 2020 3rd reading, passed 21-11 received in House enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor
04/08/20	became law without Governor's Signature (Acts Ch. 80)

Amendment	House Committee Substitute 1
Fiscal Impact Statement	Local Mandate to House Committee Substitute 1
Summary	Delete original provisions; create new sections of KRS Chapter 243, relating to alcoholic beverage licensing, to allow an in-state or out-of-state manufacturer to hold a direct shipper license, which authorizes the shipment of alcoholic beverages from the direct shipper licensee to the consumer; limit these shipments to only those conducted through a licensed common carrier; establish rules and requirements to hold a direct shipper license; instruct the Department of Alcoholic Beverage Control (ABC) to promulgate administrative regulations to reduce unlicensed deliveries and shipments; require direct shipper licensees to submit a quarterly report to the ABC department and the Department of Revenue that gives shipping totals and the names and addresses of each consumer and common carrier; establish consumer age verification processes; require each direct shipper licensee to collect and remit any applicable alcoholic beverage taxes; amend KRS 241.010 to define "consumer" as a person of lawful drinking age and territory who does not hold an alcohol license and who purchases alcoholic beverages for personal consumption only; redefine "retail sale" to include in-person, electronic, online, or telephone transactions; define "valid identification document"; amend KRS 243.030 and 243.040 to set the fees for a direct shipper license; amend KRS 243.075 to require a direct shipper licensee to collect and remit regulatory license fees as though it were located in the receiving city or county; direct a city or county imposing a regulatory license fee to report on fee collections and modifications; amend KRS 243.200 to remove liability of a licensed common carrier or any of its employees on behalf of a consignor for delivering or shipping into areas where alcoholic beverages are not lawfully sold; amend KRS 243.240 to allow a retailer to purchase distilled spirits and wine from a wholesaler or those licensees authorized to sell them, but only if the distilled spirits and wine have first gone through the three tier system; amend KRS 244.150 to remove common carrier reporting to the department; amend KRS 243.034, 243.0341, and 243.360 to conform; APPROPRIATION.
Index Headings	Distilled Spirits - Alcoholic beverages, shipment of Fees - Alcoholic beverages, licensing fee to ship Licensing - Alcoholic beverages, license to ship Malt Beverages - Alcoholic beverages, shipment of Sales - Alcoholic beverages, retail sale of Wines and Wineries - Alcoholic beverages, shipment of Alcoholic Beverages - Shipping alcoholic beverages, regulation of Appropriations - Alcoholic beverages, licensing fee to ship Local Mandate - Alcoholic beverages, shipment of

Amendment	House Floor Amendment 1
Sponsor	J. Jenkins
Summary	Amend KRS 244.150 to direct common carriers to prepare and file a monthly report with the department on known alcoholic beverages shipped by that carrier; list required items for the report; authorize the department to request additional supporting records, to be kept by the carrier for two years; fine a common carrier $500 each time the carrier willfully fails, neglects, or refuses to file a report; make the reports subject to the Kentucky Open Records Act, with the name and address of each consumer redacted; instruct the department to provide common carriers with a quarterly list of active direct shipper licensees.
Index Headings	Distilled Spirits - Alcoholic beverages, common carrier transportation of Commerce - Alcoholic beverages, common carrier transportation of Licensing - Alcoholic beverages, licensed common carrier transportation of Motor Carriers - Alcoholic beverages, common carrier transportation of Malt Beverages - Alcoholic beverages, common carrier transportation of State Agencies - Department of Alcoholic Beverage Control, common carrier reporting to Wines and Wineries - Alcoholic beverages, common carrier transportation of Alcoholic Beverages - Common carriers, alcoholic beverage transportation by

Amendment	House Floor Amendment 2
Sponsor	M. Sorolis
Summary	Change the aggregate monthly per consumer shipping limits for a direct shipper licensee to 10 liters of distilled spirits, 10 cases of wine, and 10 cases of malt beverages.
Index Headings	Distilled Spirits - Alcoholic beverages, shipment limits for Licensing - Alcoholic beverages, direct shipper licensee, consumer shipment limits Malt Beverages - Alcoholic beverages, shipment limits for Sales - Alcoholic beverages, quantity limits on retail sale of Wines and Wineries - Alcoholic beverages, shipment limits for Alcoholic Beverages - Shipping alcoholic beverages, quantity limits for

Amendment	House Floor Amendment 3
Sponsor	R. Roberts
Summary	Increase the annual fee for a direct shipper license from $100 to $200.
Index Headings	Alcoholic Beverages - Direct shipper license, annual fee for Distilled Spirits - Direct shipper license, annual fee for Fees - Direct shipper license, annual fee for Licensing - Direct shipper license, annual fee for Malt Beverages - Direct shipper license, annual fee for Wines and Wineries - Direct shipper license, annual fee for

Amendment	House Floor Amendment 4
Sponsor	R. Roberts
Summary	Change the aggregate monthly per consumer shipping limits for a direct shipper licensee to one case of distilled spirits, two cases of wine, and two cases of malt beverages.
Index Headings	Distilled Spirits - Alcoholic beverages, shipment limits for Licensing - Alcoholic beverages, direct shipper licensee, consumer shipment limits Malt Beverages - Alcoholic beverages, shipment limits for Sales - Alcoholic beverages, quantity limits on retail sale of Wines and Wineries - Alcoholic beverages, shipment limits for Alcoholic Beverages - Shipping alcoholic beverages, quantity limits for

Amendment	House Floor Amendment 5
Sponsor	J. Jenkins
Summary	Delete Section 41 in its entirety and renumber subsequent sections.
Index Headings	Wines and Wineries - Shipment by common carriers, reporting of Alcoholic Beverages - Shipment by common carriers, reporting of Distilled Spirits - Shipment by common carriers, reporting of Malt Beverages - Shipment by common carriers, reporting of Transportation - Shipment of alcoholic beverages, reporting of

Amendment	House Floor Amendment 6
Sponsor	J. Jenkins
Summary	Retain original provisions; amend Section 13 to restore authority to allow department to require common carriers to provide information on shipments of alcoholic beverages.
Index Headings	Alcoholic Beverages - Shipment by common carriers, reporting of Distilled Spirits - Shipment by common carriers, reporting of Malt Beverages - Shipment by common carriers, reporting of Transportation - Shipment of alcoholic beverages, reporting of Wines and Wineries - Shipment by common carriers, reporting of

Amendment	House Floor Amendment 7
Sponsor	C. McCoy
Summary	Make taxes associated with the purchase of alcoholic beverages include any applicable wholesale tax equivalent at the Kentucky wholesale tax rate; require a direct shipper to calculate the wholesale cost to be 70% of the retail price if a wholesale price is not readily available.
Index Headings	Alcoholic Beverages - Wholesale tax equivalent, alcoholic beverages, calculation of Distilled Spirits - Wholesale tax equivalent, alcoholic beverages, calculation of Licensing - Wholesale tax equivalent, licensed alcoholic beverage shipper, calculation of Malt Beverages - Wholesale tax equivalent, alcoholic beverages, calculation of Taxation - Wholesale tax equivalent, alcoholic beverages, calculation of Wines and Wineries - Wholesale tax equivalent, alcoholic beverages, calculation of Sales - Wholesale tax equivalent, alcoholic beverage sales, calculation of

Amendment	House Floor Amendment 8
Sponsor	A. Koenig
Summary	Allow an out-of-state alcoholic beverage supplier to receive a direct shipper license; require a manufacturer to have a specific business connection to the production of alcoholic beverages before shipping those alcoholic beverages under a direct shipper license; direct the department to use the same standards relating to causes for license denial, suspension, or revocation for in-state and out-of-state applicants; remove the department's ability to refuse an application due to an indirect interest in another type of alcohol licensee; include alcoholic beverage sales made by mail in the definition of "retail sale"; amend KRS 243.020 to allow an independent contractor of a licensee to conduct activities authorized under that license; amend KRS 243.0305, 243.130, 243.150, 243.155, 243.157, and 244.165 to require a direct shipper license to conduct other alcoholic beverage shipping activities; amend KRS 243.110 to deem a direct shipper license compatible with a distiller, winery, or small farm winery license; remove liability of a licensed common carrier or any of its employees on behalf of a consignor for delivering or shipping into areas where alcoholic beverages are not lawfully sold; remove the felony offense for out-of-state entities that ship alcoholic beverages into Kentucky; make amendments to conform.
Index Headings	Distilled Spirits - Direct shipper license, requirements for Licensing - Direct shipper license, requirements for Malt Beverages - Direct shipper license, requirements for State Agencies - Department of Alcoholic Beverage Control, authority over direct shipper licenses Wines and Wineries - Direct shipper license, requirements for Alcoholic Beverages - Direct shipper license, requirements for

Amendment	Senate Floor Amendment 1
Sponsor	J. Higdon
Summary	Amend KRS 244.150 to direct the department to require reporting from each common carrier on all alcoholic beverage shipments it transported for direct shipper licensees.
Index Headings	Distilled Spirits - Alcoholic beverages, common carrier reporting on transportation of Licensing - Alcoholic beverages, licensed common carrier reporting on transportation of Malt Beverages - Alcoholic beverages, common carrier reporting on transportation of Motor Carriers - Alcoholic beverages, common carrier reporting on transportation of State Agencies - Department of Alcoholic Beverage Control, common carrier reporting to Wines and Wineries - Alcoholic beverages, common carrier reporting on transportation of Alcoholic Beverages - Common carriers, alcoholic beverage transportation by Commerce - Alcoholic beverages, common carrier reporting on transportation of