KLC 2020 Legislative Update

1) ALCOHOLIC BEVERAGES
House Bill 415
DIRECT SHIPMENT OF ALCOHOLIC BEVERAGES
Sponsor: Representative Adam Koenig (R-Erlanger)
HB 415 creates new sections of KRS Chapter 243 to permit direct shipper licenses to be issued by
the Department of Alcoholic Beverage Control to a manufacturer in Kentucky or any other state for
shipment of alcoholic beverages directly to consumers of legal age. The manufacturer shall: (1) ship only
alcoholic beverages produced by the manufacturer and sold under a brand name owned or exclusively
licensed to the manufacturer; (2) pay an annual license fee of $100; and (3) if located out of state, provide a
copy of the manufacturer’s current license, permit, or other authorization to manufacture alcoholic
beverages in the state where the manufacturer is located.
Each direct shipper licensee shall file a quarterly report with the Department of Alcoholic Beverage
Control and the Department of Revenue showing: (1) the total amount of alcoholic beverages shipped into
the state per consumer; (2) the name and address of each consumer; (3) the purchase price of the alcoholic
beverages shipped and the amount of taxes charged to the consumer for the alcoholic beverages shipped;
and (4) the name and address of each common carrier.
A direct shipper licensee may sell or ship to a consumer all types of alcoholic beverages that the
licensee is authorized to sell with the following limits: (1) distilled spirits, including souvenir packages, in
quantities not to exceed 10 liters per consumer per month; (2) wine in quantities not to exceed 10 cases per
consumer per month; and (3) malt beverages in quantities not to exceed the 10 cases per consumer per
month. Small farm wineries and microbreweries holding a direct shipper license may also sell or ship to
consumers. All shipments or deliveries must be made through a licensed common carrier.
All shipments must be conspicuously labeled, “Contains alcohol: Signature of person age 21 or
older required for delivery.” The recipient of the shipment must provide valid identification. A direct
shipper licensee may not sell or ship alcoholic beverages to a consumer if the consumer’s address is in an
area in which alcoholic beverages may not be sold or received.
For tax purposes, each sale and delivery of alcoholic beverages pursuant to a direct shipper license
is considered a sale at the address of the consumer. All applicable taxes must be included in the selling
price and separately identified on the consumer’s invoice for collection by the direct shipper licensee from
the consumer. Applicable taxes include sales and use tax, excise tax, wholesale tax, and local government
regulatory license fees.
Representative Adam Koenig
(R-Erlanger) speaks to the members of the
House Licensing, Occupations and
Administrative Regulations Committee.
Photo Courtesy: LRC Public Information
www.KLC.org
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