Hospitality Law Blog

New KY Laws Bring Codified Private Barrel Selections, Satellite Tasting Rooms, and Lower Age for Alcohol-Related Jobs

As the 2022 Kentucky legislative session has come to a close, it’s time to review the new laws that emerged in Frankfort. For those in the alcoholic beverage industry, the most significant of these is HB 500, which contains several significant advances for distillers. Among these are the standardization and legalization of private barrel selection events and the opportunity for distilleries to establish satellite tasting rooms, two steps to promote bourbon tourism in the commonwealth. More >

Kentucky General Assembly Makes Cocktails-To-Go Privileges Permanent

One of the many pandemic-inspired ad hoc measures enacted last year to support restaurants and provide much needed merriment for beleaguered patrons has now become a permanent feature of Kentucky law – the cocktail-to-go. SB 67 was signed into law by Kentucky Gov. Beshear on March 15^th featuring an emergency clause thereby rendering it immediately effective. More >

Alcohol Producers, Take Note: Direct To Consumer Sales and Shipping Privileges Enhanced

On February 26^th, the Kentucky House of Representatives overwhelmingly passed legislation that significantly enhances and expands in-state and out-of-state manufacturers’ ability to directly ship their products in and out of Kentucky. The legislation quickly passed the Kentucky Senate and was signed into law by Governor Andy Beshear on March 11^th.  Because the bill contains an emergency clause, nearly all its provisions became effective immediately upon the Governor’s signing. More >

Developments in Federal Law – Alcoholic Beverage Regulation: Congress Makes the CBMTRA Permanent and TTB Expands Allowable Standards of Fill

CBMTRA

To many, Washington D.C. has been consumed by COVID-19 and turbulence over the election, but to the alcoholic beverage industry there has been one goal dominating policy discussions: to make permanent the 2017 Craft Beverage Modernization and Tax Reform Act (CBMTRA), which was slated for expiration on December 31, 2020. More >

Relief for Wholesalers and Distributors

After a flurry of executive orders and legislative action by Kentucky’s Governor and General Assembly to provide relief for hard hit alcohol retailers, at the request of our firm on behalf of distributor and wholesaler clients, the Kentucky Public Protection Cabinet and Department of Alcoholic Beverage Control issued a new Order, effective April 8th, extending the hours that malt beverage distributors and wine and spirits wholesalers may deliver product to the retailers to “any time of the day that the retailer is ready, able and voluntarily willing to accept deliveries of product.” This Order will allow distributors and wholesalers to deliver product to retailers outside the existing restricted hours mandated by state statute and local ordinances, which will hopefully minimize the spread of Coronavirus and allow these middle tier industry members to more efficiently and safely manage their workforce.

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New Order from Gov. Beshear Closes All Non-Essential Retail Businesses

On Sunday, March 22, Gov. Andy Beshear issued an executive order that closes all non-essential retail as of 8:00 p.m. on Monday, March 23. Essential retail businesses listed in the order include grocery stores, pharmacies, banks, hardware stores and other businesses that provide staple goods. Luckily for alcohol retailers, that list includes liquor stores, which may remain open, but follow social distancing and hygiene guidance from the CDC and Kentucky Department of Public Health. Importantly for restaurants, carry-out, delivery and drive-through food and beverage sales may continue. More >

ALERT: Supreme Court Strikes Down Tennessee Residency Requirements in Alcohol Licensing

In a move sure to have a profound effect on state regulation of alcohol sales and distribution, the United States Supreme Court has issued an opinion in Tennessee Wine and Spirits Retailers Assn. v. Thomas that strikes down Tennessee’s two-year in-state residency requirement for initial applicants for state liquor licenses. More >

Mandatory Alcohol Server Training: Kentucky ABC Regulation

Alcoholic Beverage Control (“ABC”) laws are a somewhat unique creature within American legislation. Most U.S. laws pose specific limitations on a broad range of freedoms. ABC laws are largely the opposite, prohibiting large swaths of conduct unless specifically allowed within these laws, perhaps the result of post-21^st Amendment caution. More >

Contract Brewing in a Nutshell

The brewing world has come a long way over the past ten years.  Local breweries are an everyday part of our lives providing a wide variety of product on a local, regional and national level to even the most novice of beer drinkers.  As a result of this boon, there are endless opportunities to become a part of the craft beer movement.  One of these opportunities is afforded through the concept of contract brewing. Contract brewing is a burgeoning trend whereby an aspiring, or existing, brewer contracts with another brewery to brew and package beer on their behalf. This may be done for several reasons, such as the desire for a small business to get its foot into the brewing door, the expanded capacity or bottling ability of the contract brewer.  The Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau (“TTB”), which oversees many federal alcohol regulations, considers contract brewing arrangements to be “ordinary commercial agreements.” As alcohol production is a highly-regulated industry, there are still, of course, several regulations and considerations in place with respect to brewing beer on a contract basis, so what follows is a brief overview of the various federal law issues at play. More >

The Basics of Alcoholic Beverage Control Laws

I.              Introduction

Since the end of Prohibition, states have traditionally dealt with the issue of Alcoholic Beverage Control (“ABC”) laws in one of two ways, either through full state regulation of the sale of alcohol or through a three-tier system of production, distribution and sale. With the abuses of the industry fresh in their minds, policymakers after Prohibition set about finding ways to keep alcohol from becoming a societal problem through careful regulation.  In Kentucky, the three-tier system is paramount, and that principle has been consistently affirmed by key court cases and legislation. These materials will provide an overview of the three-tier system in Kentucky with discussions of relevant cases and legislative changes. More >