The Kentucky Distillers’ Association celebrated the final passage of three KDA priority measures, including House Bill 415, the update to last year’s historic direct-to-consumer alcohol shipping law that has become a model for the country.
Sponsored by Rep. Adam Koenig, R-Erlanger, HB 415 passed the Senate last week by a bipartisan vote of 29-5 and heads to Gov. Andy Beshear’s desk for consideration. It passed the House last month by an 82-15 margin.
Rep. Koenig
KDA President Eric Gregory said there are now more than 15 states looking to introduce or expand their direct-to-consumer efforts which will create many new reciprocal markets to ship the Commonwealth’s coveted Kentucky Bourbon, craft beer, small farm wine and other spirits.
“We are extremely thankful to the General Assembly for passing this key update to last year’s bold reforms that will keep Kentucky at the forefront of spirits shipping to meet increasing consumer demand and strengthen our rightful title as the one, true, authentic home for Bourbon,” Gregory said.
HB 415 will allow the use of third-party fulfillment centers to efficiently ship bottles; set a level playing field for state tax collection on distillery gift shop sales; and establish guidelines for shipping alcohol samples to media, business and marketing partners, among other measures.
The General Assembly sent two other KDA legislative priorities to the Governor last week.
SB 67, sponsored by Sen. John Schickel, makes permanent the popular “take home cocktails” that have been a lifeline to restaurants and the hospitality industry during the pandemic. It passed the Senate 28-7 and the House 67-27.
“The cocktail movement has been one of the main drivers behind the Bourbon renaissance as bartenders – and even burgeoning home bartenders – have discovered the elegance and complexity of our premium small batch and single barrel whiskies in crafting mixed drinks,” Gregory said.
Sen. John Schickel
“Our restaurant, bar and hospitality partners have been decimated by the pandemic and continue to struggle in the recovery. They are tremendously important to our signature Bourbon and distilled spirits industry, so we have been thrilled to offer our full support and advocacy to this key bill.”
SB 68, also sponsored by Sen. Schickel, strengthens Kentucky’s workforce development efforts by exempting educational institutions from the state’s 600-gallon production requirement for licensure in their hands-on distilling courses. It passed the Senate 32-2 and the House 78-15.
“Senator Schickel always takes a leading legislative role on behalf of our homegrown industry as he understands the state’s archaic, Prohibition-era laws are in desperate need of updating to keep up with the Bourbon boom and today’s modern, consumer-driven economy,” Gregory said.
Although Kentucky produces 95 percent of the world’s Bourbon, there are now more than 3,500 distilleries in all 50 states, Gregory said. Distilling is the highest taxed industry in Kentucky, and remains the only place in the world that taxes aging barrels of spirits.
“There are a dozen states that now have more distilleries than Kentucky, but none can match our 200-year history and heritage of crafting the world’s finest Bourbon,” he said. “Still, we must remain vigilant and progressive each and every year in order to maintain our historic distilling monopoly.”
