House Bill 415

Actions | Amendments
Last Action 03/26/20: delivered to Governor
Title AN ACT relating to alcoholic beverages and making an appropriation therefor.
Bill Documents Current
Introduced
Fiscal Impact Statements Fiscal Note
Local Mandate
Additional Fiscal Impact Statements Exist
Bill Request Number 191
Sponsors A. Koenig, C. McCoy, K. Bratcher, M. Hart, T. Huff
Summary of Original Version Create new sections of KRS Chapter 243, relating to alcoholic beverage licensing, to require out-of-state licensees that are not licensed in Kentucky to hold the newly created shipping permit before transporting alcoholic beverages from another state to a consumer in Kentucky; limit these shipments to only those conducted through a licensed common carrier; establish rules and requirements to hold a shipping permit; instruct the Department of Alcoholic Beverage Control (ABC) to promulgate administrative regulations to reduce unlicensed deliveries and shipments; require shipping permit holders to submit a monthly 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; impose an administrative and enforcement fee payable to the Department of Revenue for out-of-state shipment to a Kentucky consumer; make the fee 15 percent of the gross receipts derived from the shipment sales; deposit the fees in the general fund; amend KRS 241.010 to define "deliver" as transporting within the state of Kentucky and "ship" as transporting from one state to another; 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 through shipment or delivery; authorize delivery or shipment to territories where the beverages may be lawfully sold or received; amend KRS 243.020 to allow an independent contractor of a licensee to conduct activities authorized under that license; amend KRS 243.030, 243.040, and 243.212 to merge all out-of-state supplier's licenses into one license; set the fees for an out-of-state supplier's license and a shipping permit; amend 243.0305, 243.120, 243.130, 243.150, 243.155, 243.157, 243.160, 243.170, 243.180, 243.240, 243.280, and 244.165 to permit delivery and shipment sales to a consumer; allow a microbrewery to deliver and ship under its microbrewery license rather than its package retail license; amend KRS 243.100 to strike licensee citizenship requirements; forbid a wholesaler from refusing to sell and offer reasonable service to another licensee during its normal business hours; amend KRS 243.200 to include malt beverages in a retailer's ability to transport alcoholic beverages from a wholesaler or distributor to the retailer's premises; allow a retailer to purchase alcoholic beverages from a wholesaler, distributor, or those licensees authorized to sell them; amend KRS 243.353 and 243.355 to prohibit sales to consumers under an alcoholic beverage storage license; amend KRS 243.500 to allow license suspension or revocation for failure to pay the enforcement and administrative fee on shipped alcoholic beverages; amend KRS 243.990 to make it a violation to disobey the shipping permit requirements; 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 or received; remove the felony offense for out-of-state entities that ship alcoholic beverages into Kentucky; amend various sections of KRS Chapters 242 to 244 to conform; repeal KRS 243.215; APPROPRIATION.
Index Headings of Original Version Distilled Spirits - Alcoholic beverages, shipment of
Fees - Alcoholic beverages, licensing fee to ship
Licensing - Alcoholic beverages, license to ship
Local Mandate - Alcoholic beverages, shipment of
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
Fiscal Note - Alcoholic beverages, shipment of
Jump to Proposed Amendments House Committee Substitute 1 with Fiscal Impact Statements
House Floor Amendment 1
House Floor Amendment 2
House Floor Amendment 3
House Floor Amendment 4
House Floor Amendment 5
House Floor Amendment 6
House Floor Amendment 7
House Floor Amendment 8
Senate Floor Amendment 1
Votes Vote History

Actions

Top | Amendments
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

Proposed Amendments

Top | Actions
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

Last updated: 3/31/2020 9:37 AM (EDT)
To receive notice when the record is updated follow @LRCTweetBot.