KRS 260.175: Kentucky small farm wineries support fund.

(1) The Kentucky small farm wineries support fund is created as a separate revolving

fund. The support fund shall consist of amounts transferred to the fund pursuant to

the provisions of subsection (2) of this section and any other proceeds from grants,

contributions, appropriations, or other moneys made available for the purposes of

the fund. Fund amounts not expended at the close of the fiscal year shall not lapse

but shall be carried forward into the next fiscal year. Any interest earnings of the

fund shall become a part of the fund and shall not lapse.

(2) A total of four hundred thousand dollars ($400,000) shall be deposited in the

Kentucky small farm wineries support fund each fiscal year from the general fund.

The funds shall be used by the Kentucky Grape and Wine Council as follows:

(a) Two hundred thousand dollars ($200,000) of these funds shall be used for the

promotion, advertising, and marketing in Kentucky of wine produced by small

farm wineries located in Kentucky. The Grape and Wine Council shall

collaborate with the Kentucky Department of Agriculture and the Kentucky

Department of Tourism to develop a marketing plan that shall include brand

development, direct mail and e -marketing, Web site development, collateral

brochures and maps, advertising, f amiliarization trips, a retail program, and

any other topics that the marketing plan developers deem appropriate or that

may be established through the promulgation of administrative regulations;

(b) One hundred thousand dollars ($100,000) of these funds s hall be used by the

Grape and Wine Council, in collaboration with the Kentucky Department of

Agriculture and the Kentucky Department of Tourism, to establish a local

marketing cost -share program. For the purposes of this section, "local

marketing cost -share program" means a mechanism to provide Kentucky

small farm wineries with access to matching funds reimbursements for

projects that promote and market their products. Standards for the application

for, and receipt of, matching funds reimbursements authoriz ed in this section

shall be established through the promulgation of administrative regulations;

(c) Twenty-five thousand dollars ($25,000) of these funds shall be used for

funding the administrative costs of the Kentucky Grape and Wine Council.

The costs s hall include but not be limited to reimbursement for the council's

appointed members' travel expenses while attending meetings of the council;

(d) Seventy-five thousand dollars ($75,000) shall be used for the payment of fees

to licensed wholesalers who app ly to the Kentucky Grape and Wine Council

to participate in a wine distribution program established by the Kentucky

Grape and Wine Council. A licensed wholesaler shall apply and shall be

eligible for consideration for the program. The licensed wholesaler shall agree

to distribute the wine produced by small farm wineries licensed under KRS

243.155 and shall agree to sell the wine to retailers for the same price the

wholesaler paid for the wine; and

(e) The funds allocated to each purpose under paragraphs (a) to (d) of this

subsection shall be used exclusively for the purpose designated. Use of the

funds designated for each purpose shall be strictly adhered to, and the funds

shall not be used to support any other purpose. If at the end of any fiscal year

funds designated for one (1) of the purposes are unused, the unused funds

shall not lapse and shall be carried forth to the succeeding year for the original

purpose designated.

(3) The Kentucky Grape and Wine Council shall advise the Commissioner of the

Department of Agriculture regarding promulgation of administrative regulations

necessary to carry out the provisions and purposes of subsection (2) of this section.

The Department of Agriculture shall collaborate with the Kentucky Department of

Tourism and the Ke ntucky Grape and Wine Council in developing any

administrative regulations promulgated under the authority of this section.