804 KAR 4:200. Warehouses.

      RELATES TO: KRS 243.030(15)

      STATUTORY AUTHORITY: KRS 241.060

      NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation provides for a special license applicable to distillers who desire to close their distilling operations but desire to retain the use of their warehousing facilities. The specific licensing provisions of KRS 243.030 make no specific provision for such a license. The need for such a special license arose in the late 1960's when, by merger or outright purchase, small distilleries were being absorbed by larger operations, and in many instances the larger operation desired to suspend the distilling of alcoholic beverages at the smaller location, but retained the storage and warehousing facilities of the smaller distillery. This license is limited to the period of time when distilling is suspended and if distilling operations are begun again, this special license becomes null and void and the distiller must once again operate under a distillers license. The fee for the herein license appears in KRS 243.030(15).

      Section 1. (1) A bonded distilled spirits warehouse license may be issued, upon proper application, to any person, firm or corporation operating a bonded warehouse for distilled spirits, and who does not at the same time, and for the same premises, hold a federal operating permit for distilling purposes, but who possesses only a federal operating permit for a bonded warehouse for distilled spirits as defined by federal law (26 USC, IRS, 5171, 5251).

      (2) The license issued under this section shall authorize the licensee to operate a bonded warehouse or warehouses for premises specifically designated, and such license shall become null and void if a federal operating permit for distilling purposes is issued for the same premises, and shall remain void so long as such federal permit remains in effect. Upon the granting of a federal operating permit for distilling purposes the licensee of the premises previously licensed hereunder shall obtain a license as set out in KRS 243.030(1). (ABC 3:190; 1 Ky.R. 358; eff. 2-5-75; Am. 5 Ky.R. 1098; eff. 8-1-79.)