{"data":{"id":"us-ky/krs-243.027","jurisdiction":"us-ky","citation":"KRS 243.027","heading":"KRS 243.027 to 243.029 supersedes any conflicting provision of KRS","body":"Chapters 241 to 244 -- Licensing of direct shippers of alcoholic beverages and\ncannabis-infused beverages -- Duties of direct shipper licensees --\nAdministrative regulations -- Use of third parties to ship -- Shipping of\nsamples.\n(1) KRS 243.027 to 243.029 shall supersede any conflicting statute in KRS Chapters\n241 to 244.\n(2) A direct shipper Type A license shall authorize the holder to ship alcoholic\nbeverages to consumers. A direct shipper Type B license shall authorize the holder\nto ship cannabis -infused beverages to consumers. The department shall issue a\ndirect shipper license to a successful applicant that:\n(a) Pays the applicable annual license fee;\n(b) Is a manufact urer located in this state or any other state, a cannabis -infused\nbeverage manufacturer licensed by the Department for Public Health, or an\nalcoholic beverage supplier licensed under KRS 243.212 or 243.215; and\n(c) Holds a current license, permit, or other  authorization to manufacture or\nsupply alcoholic beverages or cannabis -infused beverages in the state where\nthe applicant is located. If an applicant is located outside of Kentucky, proof\nof its current license, permit, or other authorization as issued by  its home state\nshall be sufficient proof of its eligibility to hold a direct shipper license in\nKentucky.\n(3) (a) A manufacturer applicant shall only be authorized to ship beverages that are\nsold under a brand name owned or exclusively licensed to the man ufacturer,\nprovided the beverages were:\n1. Produced by the manufacturer;\n2. Produced for the manufacturer under a written contract with another\nmanufacturer; or\n3. Bottled or canned for or by the manufacturer.\n(b) An applicant licensed under KRS 243.212 or 243.215 shall only be authorized\nto ship alcoholic beverages or cannabis -infused beverages for which it is the\nprimary source of supply.\n(4) The department shall establish the form for a direct shipper license app lication\nthrough the promulgation of an administrative regulation. These requirements shall\ninclude only the following:\n(a) The address of the manufacturer or supplier; and\n(b) If the applicant is located outside this state, a copy of the applicant's curre nt\nlicense, permit, or other authorization to manufacture, store, or supply\nalcoholic beverages or cannabis -infused beverages in the state where the\napplicant is located.\n(5) For purposes of this section, the holder of a direct shipper license may utilize the\nservices of a third party to fulfill shipments, subject to the following:\n(a) The third party shall not be required to hold any alcoholic beverage license or\ncannabis-infused beverage license, but no licensed entity shall serve as a third\nparty to fulf ill shipments other than the holder of a storage license or\ntransporter's license;\n(b) The third party may operate from the premises of the direct shipper licensee\nor from another business location; and\n(c) The direct shipper licensee shall be liable for a ny violation of KRS 242.250,\n242.260, 242.270, or 244.080 that may occur by the third party.\n(6) A direct shipper licensee shall:\n(a) Agree that the Secretary of State shall serve as its registered agent for service\nof process. The licensee shall agree tha t legal service on the agent constitutes\nlegal service on the direct shipper licensee;\n(b) Maintain the records required under KRS 243.027 to 243.029 and provide the\ndepartment and the Department of Revenue access to or copies of these\nrecords;\n(c) Allow the department or the Department of Revenue to perform an audit of\nthe direct shipper licensee's records or an inspection of the direct shipper\nlicensee's licensed premises upon request. If an audit or inspection reveals a\nviolation, the department or the D epartment of Revenue may recover\nreasonable expenses from the licensee for the cost of the audit or inspection;\n(d) Register with the Department of Revenue, and file all reports and pay all taxes\nrequired under KRS 243.027 to 243.029; and\n(e) Submit to the  jurisdiction of the Commonwealth of Kentucky for any\nviolation of KRS 242.250, 242.260, 242.270, or 244.080 or for nonpayment\nof any taxes owed.\n(7) (a) Each direct shipper licensee shall submit to the department and the\nDepartment of Revenue a quarterly report for that direct shipper license\nshowing:\n1. The total amount of beverages shipped into the state per consumer;\n2. The name and address of each consumer;\n3. The purchase price of the beverages shipped and the amount of taxes\ncharged to the consumer for the beverages shipped; and\n4. The name and address of each common carrier.\n(b) The Department of Revenue shall create a form through the promulgation of\nan administrative regulation for reporting under paragraph (a) of this\nsubsection.\n(c) The departmen t shall provide a list of all active direct shipper licensees to\nlicensed common carriers on a quarterly basis to reduce the number of\nunlicensed shipments in the Commonwealth.\n(8) A direct shipper licensee shall submit a current copy of its alcoholic beve rage\nlicense or cannabis -infused beverage license from its home state along with the\napplicable license fee every year upon renewal of its direct shipper license.\n(9) Notwithstanding any provision of this section to the contrary, a manufacturer\nlocated and  licensed in Kentucky may ship by a common carrier holding a\nKentucky transporter's license samples of alcoholic beverages produced by the\nmanufacturer in quantities not to exceed one (1) liter, per any recipient, of any\nindividual product in one (1) calen dar year of distilled spirits or wine, or ninety -six\n(96) ounces, per any recipient, of any individual product in one (1) calendar year of\nmalt beverages, to any of the following:\n(a) Marketing or media representatives twenty-one (21) years of age or older;\n(b) Distilled spirits, wine, or malt beverage competitions or contests;\n(c) Wholesalers or distributors located outside of Kentucky;\n(d) Federal, state, or other regulatory testing labs;\n(e) Third-party product formulation and development partners; and\n(f) Persons or entities engaged in a private selection event pursuant to KRS\n243.0305.\nSuch samples shall be marked by affixing across the product label, a not readily\nremoved disclaim er with the words \"Sample -Not for Sale\" and the name of the\nmanufacturer.","path":["KRS Chapter 243"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56353","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:52Z","sha256":"650c4b46fd0d52c14e4afafb524711739d9182a0e0d54abe711aef44ff59e173","source_id":"us-ky","stale":false,"prev":"us-ky/krs-243.025","next":"us-ky/krs-243.028"},"notice":"GroundRules: Original legal text. Not legal advice."}