KRS 243.120: Business authorized by distiller's, rectifier's, or winery license -- Class A

and Class B distiller's and rectifier's licenses -- Distiller's sale of distilled

spirits by the drink.

(1) A distiller's, rectifier's, or winery license shall auth orize the licensee to engage in

the business of distiller, rectifier, or winery at the premises specifically designated

in the license, to maintain aging warehouses, and to transport for himself or herself

only any alcoholic beverage which he or she is aut horized under the license to

manufacture or sell. The licensee shall transport alcoholic beverages only by a

vehicle operated by himself or herself, which has affixed to its sides at all times a

sign of form and size prescribed by the state board, containi ng among other things

the name and license number of the licensee.

(2) (a) 1. A licensee holding a distiller's license, Class A license, or Class B

license shall distill no less than six hundred (600) gallons in one (1) year

at the distillery's licensed premises.

2. A licensee that engages in the distilling process for the exclusive

purpose of providing training and education, conducting research, or

teaching about the distilling process, aging, or bottling of distilled spirits

shall be exempt from subparag raph 1. of this paragraph, so long as the

licensee does not produce spirits for sale to the general public.

(b) Distillers that produce more than fifty thousand (50,000) gallons of distilled

spirits per calendar year at the premises shall obtain a distille r's license, Class

A.

(c) Distillers that produce fifty thousand (50,000) gallons or less of distilled

spirits per calendar year at the premises shall obtain a distiller's license, Class

B (craft distillery).

(3) (a) Rectifiers that rectify more than fifty thousand (50,000) gallons of distilled

spirits per calendar year at the premises shall obtain a rectifier's license, Class

A.

(b) Rectifiers that rectify fifty thousand (50,000) gallons or less of distilled spirits

per calendar year at the premises shall obtain a rectifier's license, Class B

(craft rectifier).

(4) (a) A distiller that is located in wet territory, or in any precinct that has authorized

the limited sale of alcoholic beverages at distilleries under KRS 242.1243,

may sell distilled spirits by the drink or by the package at retail to consumers

in accordance with KRS 243.0305.

(b) Any distilled spirits sold under this subsection shall be taxed and distributed

in the same manner as sales under KRS 243.0305(2).

(c) Except as provided in this subsec tion, sales under this subsection shall be

governed by all of the statutes and administrative regulations governing the

retail sale of distilled spirits by the drink.

(5) Nothing in this section shall be construed to:

(a) Vitiate the policy of this Commonwealth supporting an orderly three (3) tier

system for the production and sale of alcoholic beverages; or

(b) Allow delivery or shipment of alcohol into dry or moist territory.