243.155 Small farm winery license -- Eligibility and application process -- Business
961 words·~4 min read·
/ky/243-155A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
authorized by license -- Direct shipment of wine -- Self-distribution -- Custom
crushing services -- Off-premises retail sales outlet in wet territory -- Other
permitted licenses -- Renewal of license -- Sampling by employees.
(1)A small farm winery may apply for a small farm winery license. In addition to all
other licensing requirements, an applicant for a small farm winery license shall
submit with its application a copy of the small farm winery's federal basic permit
and proof documenting its annual wine production. The board shall promulgate
administrative regulations establishing the form the documentation of proof of
production shall take.
(2)A small farm winery license shall authorize the licensee to perform the following
functions without having to obtain separate licenses, except that each small farm
winery off-premises retail site shall be separately licensed:
(a)Engage in the business of a winery under the terms and conditions of KRS
243.120 and 243.130, except that a small farm winery may sell and deliver
wine produced by it to a retailer as authorized by this section. The
manufacture of wine at the small farm winery shall not be less than two
hundred fifty
(250)gallons, and shall not exceed five hundred thousand
(500,000) gallons, in one
(1)year;
(b)Bottle wines produced by that small farm winery and other licensed small
farm wineries;
(c)Enter into an agreement with another licensed small farm winery under which
it crushes, processes, ferments, bottles, or any combination of these services,
the grapes, fruits, or other agricultural products of the other small farm winery
for a production year. The resulting wine shall be considered the product of
the small farm winery that provides the fruit. The small farm winery
providing the custom crushing services may exclude the wine produced under
this paragraph from its annual production gallonage;
(d)If the licensed small farm winery or off-premises retail site premises is located
in wet territory or in a precinct that has authorized alcoholic beverage sales by
the small farm winery under KRS 242.124:
1. Serve complimentary samples of wine produced by it in amounts not to
exceed six
(6)ounces per patron per day; and
2. Sell by the drink for on-premises consumption or off-premises
consumption pursuant to KRS 243.081, or by the package wine
produced by it or by another licensed small farm winery, at retail to
consumers;
(e)Sell by the drink or by the package, at fairs, festivals, and other similar types
of events, wine produced by it or by another licensed small farm winery, at
retail to consumers if all sales occur in a wet territory;
(f)Sell and transport wine produced by it to consumers, licensed small farm
winery off-premises retail sites, wholesale license holders, and small farm
winery license holders, except that wine purchased between small farm
wineries shall not exceed five hundred
(500)gallons per year per small farm
winery;
(g)Consume on the premises wine produced by the small farm winery or a
licensed small farm winery and purchased by the drink or by the package at
the licensed premises, if the small farm winery is located in wet territory;
(h)Sell wine at retail to consumers in accordance with KRS 243.027 to 243.029
if it holds a direct shipper license; and
(i)Sell and deliver, in accordance with KRS 243.120(1), up to twelve thousand
(12,000) gallons of wine produced by it annually to any retail license holder
as long as:
1. Any products sold and delivered under this paragraph that are not
otherwise registered by a licensed wholesaler shall be registered with the
department by the small farm winery;
2. The small farm winery is responsible for payment of wine wholesale
sales taxes and reporting of self-distributed wines in accordance with
KRS 243.884; and
3. The small farm winery may extend credit on wine sold to retail licensees
for a period not to exceed thirty
(30)days from the date of invoice, with
the date of invoice included in the total number of days.
This paragraph shall not apply to small farm winery wholesalers licensed
under KRS 243.154.
(3)If the requirements of KRS 242.1241 or 244.290(5) relating to Sunday sales on the
licensed premises of a small farm winery are met, a small farm winery within that
territory may sell alcoholic beverages on Sunday only in accordance with this
section during the hours and times as permitted in the local ordinance for that
locality.
(4)A small farm winery license holder may also hold an NQ2 retail drink license or an
NQ4 retail malt beverage drink license if:
(a)The small farm winery is located in wet territory or in a precinct that has
authorized alcoholic beverage sales by the small farm winery under KRS
242.124; and
(b)The issuance of these licenses is in connection with the establishment and
operation of a restaurant, hotel, inn, bed and breakfast, conference center, or
any similar business enterprise designed to promote viticulture, enology, and
tourism.
(5)This section shall not exempt the holder of a small farm winery license from the
provisions of KRS Chapters 241 to 244, nor from the administrative regulations of
the board, nor from regulation by the board at all premises licensed by the small
farm winery, except as expressly stated in this section.
(6)Nothing contained in this section shall exempt a licensed out-of-state winery from
obeying the laws of its resident state.
(7)Upon the approval of the department, a small farm winery license may be renewed
after the licensee submits to the department the winery's federal basic permit and
proof of its annual wine production.
(8)An employee of a small farm winery may sample the products produced by that
small farm winery for purposes of education, quality control, and product
development.