KRS 243.036: Special temporary alcoholic beverage auction license -- Permitted activities

-- Restrictions.

(1) A special temporary alcoholic beverage auction license may be issued to an

auctioneer licensed under KRS Chapter 330 or to a charitable or n onprofit

organization.

(2) A special temporary alcoholic beverage auction license issued to a charitable or

nonprofit organization shall authorize the holder to:

(a) Purchase, transport, receive, possess, store, sell, and deliver alcoholic

beverages to be sold by auction or raffle or consumed at charity or nonprofit

events;

(b) Purchase, transport, receive, possess, store, sell, and deliver limited specially

labeled bottles of alcoholic beverages to be sold at charity or nonprofit events;

(c) Obtain alcohol ic beverages from distillers, rectifiers, wineries, small farm

wineries, brewers, microbreweries, wholesalers, distributors, retailers, or any

other person, by gift or donation, for the purpose of charity or nonprofit

events; and

(d) Receive payment for alcoholic beverages sold at events.

(3) For a charitable or nonprofit auction:

(a) Each alcoholic beverage auction or raffle conducted by a charitable

organization shall be subject to all restrictions and limitations contained in

KRS Chapters 241 to 244 and the administrative regulations issued under

those chapters and shall be authorized only on the days and only during the

hours that the sale of alcoholic beverages is otherwise authorized in the

county or municipality; and

(b) The location at which the alco holic beverages are auctioned, raffled, or

consumed under this section shall not constitute a public place for the purpose

of KRS Chapter 222. Charitable or nonprofit events may be conducted on

licensed or unlicensed premises. The charitable organization p ossessing a

special temporary alcoholic beverage auction license shall post a copy of the

license at the location of the event.

(4) An auctioneer holding a special temporary alcoholic beverage auction license may:

(a) Transport, receive, possess, store, advertise, auction, sell, deliver, and ship

alcoholic beverages either sold or intended for sale at auction by the licensee;

(b) Sell only alcoholic beverages at auction that:

1. Were previously lawfully sold at retail; and

2. Are in their original manufacturer's unopened container;

(c) Deliver and ship any alcoholic beverages sold at an auction directly to the

consumer who purchased the alcoholic beverages. Any shipment to a

consumer outside of this state is subject to a ll applicable laws of the

jurisdiction in which that consumer is located. When shipping alcoholic

beverages directly to a consumer in this state, the auctioneer holder of the

license shall:

1. Ensure that the shipping label on each container containing the alcoholic

beverages conspicuously states the following: "CONTAINS

ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER

REQUIRED FOR DELIVERY";

2. Obtain the signature of a person who is at least twenty -one (21) years of

age at the delivery address prior to delive ry, after requiring that person

to demonstrate that he or she is at least twenty -one (21) years of age by

providing a valid identification document; and

3. Not ship the alcoholic beverages to any address in this state located in

dry territory; and

(d) Conduct the auction on premises licensed by the department, unlicensed

premises, or online.

(5) A special temporary alcoholic beverage auction conducted by an auctioneer shall

be:

(a) Subject to all restrictions and limitations contained in KRS Chapters 241 to

244 and the administrative regulations issued under those chapters;

(b) Separate from any other type of alcoholic beverage auction authorized under

KRS Chapters 241 to 244, but may be combined with other types of auctions

authorized under KRS Chapter 330;

(c) Authorized for in-person live auctions and online auction closings only on the

days and only during the hours that the sale of alcoholic beverages is

otherwise authorized in the county or municipality where the live auction is

held or, for an online a uction, the physical location of the alcoholic beverages

being sold; and

(d) Subject to the auction and auctioneer requirements of KRS Chapter 330.

(6) An auctioneer conducting a special temporary alcoholic beverage auction shall:

(a) Post a copy of its sp ecial temporary alcoholic beverage auction license and

auctioneer license at the location of the event for in -person auctions and on

the auction website for online auctions; and

(b) Not hold any other type of alcoholic beverage license.

(7) Alcoholic beverages shall only be sold by an auctioneer under a special temporary

alcoholic beverage auction license if the alcoholic beverages were not purchased or

attained for the purpose of resale at auction and in the following circumstances:

(a) As an "Estate Auct ion," or included in such auction where the alcoholic

beverages being offered at auction are the property belonging to the estate of

one (1) or more deceased persons and are being offered by:

1. The direction and authority of the authorized executor or administrator;

2. Court order; or

3. The direction or on behalf of a surviving spouse or direct heirs;

(b) As a "Living Estate Auction" or "Downsizing Auction" or included in such

auction where the alcoholic beverages being offered at auction are the

property belonging to a person or persons of a household that is in transition

due to one (1) of the following life-changing situations:

1. One (1) or more members of the household moving into a retirement

home, nursing home, assisted living home, or a smaller residence; or

2. Combining one (1) household with another; or

(c) As a partial or complete disbursement of an alcoholic beverage collection

consisting of more than one (1) package that has been collected by the same

individual or household. An individual or h ousehold shall not sell collections

at auction more than once every three (3) years.

(8) (a) A person shall not purchase alcoholic beverages from an auctioneer at a

special temporary alcoholic beverage auction unless that person may lawfully

receive or possess the alcoholic beverages.

(b) Nothing in this section shall prevent a vintage distilled spirits licensee from

purchasing alcoholic beverages at auction if the alcoholic beverages qualify as

vintage distilled spirits.

(9) All advertising for an auctioneer special temporary alcoholic bev erage auction

shall:

(a) Show the name and license number for the special temporary alcoholic

beverage auction license and the auctioneer license; and

(b) Conform to all advertising requirements and restrictions for auctions

contained in KRS Chapter 330 an d any administrative regulations

promulgated under that chapter.

(10) If a person ceases to be licensed as an auctioneer under KRS Chapter 330, the

person's special temporary alcoholic beverage auction license shall be automatically

suspended until the person reestablishes licensure as an auctioneer.

(11) An auctioneer holding a special temporary alcoholic beverage auction license shall

file a quarterly report with the department, which shall be established and

maintained by the department, utilizing a form prescribed by the department that

includes the following information:

(a) The number of alcoholic beverage packages auctioned in the preceding three

(3) months in total, with each purchase matched to the individuals who both

sold and purchased the alcoholic beverages;

(b) The date of each purchase;

(c) The name, address, and phone number of each individual who sold and

purchased the alcoholic beverages;

(d) A detailed description of the alcoholic beverages purchased, including the

brand name, number of packages, and the size of the packages; and

(e) Whether each alcoholic beverage package was purchased in -person, delivered

in-person, or shipped.

(12) A special temporary alcoholic beverage auction license shall not be issued for any

period longer than thirty (30) days.

(13) Notwithstanding any other provision of KRS Chapters 241 to 244, a distiller,

rectifier, winery, small farm winery, brewer, microbrewery, wholesaler, distributor,

or retailer may donate, give away, or deliver any of its products to a charit able or

nonprofit organization possessing a special temporary alcoholic beverage auction

license under this section.

(14) All restrictions and prohibitions applying to an alcoholic beverage retail package

and alcoholic beverage by the drink license, not in consistent with this section, shall

apply to a special temporary alcoholic beverage auction license.