An ’emergency’ Act To Save Barrel Picks

Bourbon

February 14, 2022

A proposed act deemed an “emergency” is trying to save private barrel selections. Introduced Feb. 10, and sponsored by Kentucky State Sen. John Schickel, SB 160 authorizes distillers to sample whiskey straight from the barrel.

(Also, see House Bill introduced Feb. 14.)

In December, State Senator Damon Thayer, co-owner of the Kentucky Senator Bourbon, announced in my event Repeal Day Expo that private barrel selections were under threat and could go away if the regulation did not change. I immediately Tweeted it and have been waiting for proposed legislation since. Thayer co-sponsored Schickel’s bill.

My buddy at WhiskyCast had a nice rundown in January as well, but essentially the Kentucky ABC wants to update the state’s code for private barrel selections and are actively working with industry to revise the regulation. Currently, one of the problems: “a distillery shall not provide more than one and three-fourths (1- ¾ ) ounces of samples per visitor.” All barrel picks violate this sample size, and a barrel is not a legal package to sample from. While other issues are at hand, the big one is that private barrel picks violate tied-house state and federal laws, which keep alcohol manufacturers from exerting undue influence over retailers.

Thus, the ABC needs legislators to pass a bill that defines barrel picks, because the current code opens the door for an outside state to challenge the legality of the private barrel process. Thayer’s and Schickel’s bill (below) looks to enact definitions quickly.

Amend KRS 241.010 to redefine “consumer” and define “private selection event” and “private selection package”; amend KRS 243.027 to authorize a manufacturer to ship samples to persons or entities engaged in private selection events; indicate that the shipped sample quantity limits apply to each separate recipient; amend KRS 243.0305 to allow a distiller to conduct private selection events and sell private selection packages at retail; amend KRS 243.884 to exempt most private selection package sales from the wholesale tax; amend KRS 244.240 to exclude a distiller selling private selection packages from the interlocking interests prohibition; EMERGENCY.

Kentucky SB Bill 160. Authors: Damon Thayer and John Schickel

Thayer’s and Schickel’s bill is direct to the point, but a House Bill proposal is to drop soon. Authored by Bardstown-based State Rep. Chad McCoy, the yet-to-be-introduced bill is expected to include private barrel mandates and satellite tasting rooms. The latter could be a huge win for tourism and community tax revenues.

Note: I will be making updates to this story and creating newer posts as new legislation is introduced.

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