Bench & Bar

NOV 2013

The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.

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FEATURE: BRIDLED SPIRITS malt beverage license, microbreweries are now required to obtain one or both of the new retail malt beverage license types in order to sell malt beverages at retail. Furthermore, SB 13 now permits microbreweries to sell limited amounts of malt beverages (288 ounces per customer per day) produced on the premises without having to transfer physical possession of those malt beverages to a licensed distributor, and then back to itself as retailer.48 To protect the three-tier system, microbreweries are required to file monthly reports and collect and provide all taxes due to licensed distributors.49 foreign or disqualifying ownership in multi-level entity structures.50 That said, the passage of SB 13, a bill devoted solely to alcohol, reduced state license types from 88 types to 44 types without eliminating existing license privileges. And that in and of itself deserves a toast. Although SB 13 corrected many of the problems and inconsistencies that troubled Kentucky's statutory alcohol scheme, it did not solve all of them. Among others, the task force emphasized that further study was required to prevent abuses by applicants attempting to hide 5 1 2 3 4 6 7 8 9 10 11 12 13 14 Governor's Task Force on the Study of Kentucky Alcoholic Beverage Control Laws, Executive Summary at i (January 2013). Minutes of the Governor's 2012 Task Force on the Study of Kentucky's Alcoholic Beverage Control Laws dated August 16, 2012. A complete list of the 22 members of the Task Force can be found in the Amended Exec. Order no. 2012590 (August 14, 2012). Exec. Order no. 2012-683 ( July 18, 2012). 2013 Ky. Acts 518. Id. KRS 243.0305 (amended 2013). KRS 243.0305. KRS 243.155. KRS 241.010(63), 243.120, and 243.130. KRS 243.150(3). KRS 243.212. KRS 243.240. KRS 243.250. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 KRS 241.065 and 804 KAR 9:010, Section 1 and Section 2. KRS 243.082. KRS 243.084. KRS 243.086. KRS 243.088. KRS 243.280(1)(a). KRS 243.280(3). KRS 243.033(4). KRS 243.120 and 243.130. KRS 243.340. KRS 243.205. KRS 243.353. KRS 243.355. KRS 243.320. KRS 243.320(4). KRS 243.260. KRS 243.260(3). KRS 243.260(4). KRS 243.030(8). KRS 243.030. KRS 243.090(4). KRS 243.060 and KRS 243.070. Id. KRS 243.060 and 243.070. Id. KRS 243.060(2) and 243.070(16). The other states that still prohibit alcohol sales while the polls are open on election days are Alaska, Massachusetts and South Carolina, although local governments can exempt their communities from the prohibition in Alaska and Massachusetts. 42 43 44 45 46 47 48 49 50 KRS 244.290 and KRS 244.480. Id. KRS 241.010(36). See KRS 242.1244, 242.123, 242.124, 242.1242 and 242.1238. KRS 244.120. KRS 244.992. KRS 243.157. Id. Governor's Task Force on the Study of Kentucky Alcoholic Beverage Control Laws at xxvii and xxviii (January 2013). Stacy Kula is an attorney at Stoll Keenon Ogden PLLC and focuses her practice on alcohol beverage control, hospitality and corporate law at Stoll Keenon Ogden PLLC. Kula received her J.D. from North Carolina Central University and her LL.M. in Taxation from the University of Florida. She is a member of the National Association of Alcoholic Beverage Licensing Attorneys (NAABLA) and the National Association of Licensing and Compliance Professionals (NALCP). Kula can be reached at stacy.kula@skofirm.com or 859.231.3054. 12 Steve Humphress is currently the general counsel for the Kentucky Department of Alcoholic Beverage Control (ABC). Humphress received his law degree from the University of Louisville, School of Law in 1993 and was employed in private practice until 2001. From 2001 until 2007, he was employed by the ABC, and served as general counsel beginning in 2003. In 2007, he began employment at the Office of Attorney General as an administrative law judge. Humphress returned to the ABC in 2009. During his tenure at the ABC, Humphress has acquired a vast and unique knowledge about the alcoholic beverage laws. B&B; • 11.13

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