804 KAR 4:340. Brew-on-premises license.
RELATES TO: KRS 243.040(11), 243.090
STATUTORY AUTHORITY: KRS 241.060(1), 243.040(11)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 243.040(11) authorizes the Department of Alcoholic Beverage Control to issue a brew-on premises malt beverage license. This administrative regulation establishes application and operation requirements for a "Brew-on-premises" license.
Section 1. Definitions. (1) "Customer" means a person at least twenty-one (21) years old.
(2) "Licensed brew-on-premises establishment" means an establishment that has been granted a license pursuant to the provisions of this administrative regulation to provide ingredients, equipment, and assistance permitted by this administrative regulation to a customer to brew malt beverages on the premises of the establishment.
Section 2. A "brew-on-premises" license shall be granted if an applicant meets the provisions of this administrative regulation. The "brew-on-premises" licensee shall not be considered a brewer, wholesaler, or retailer of malt beverages, if the licensee complies with the provisions of this administrative regulation.
Section 3. A "brew-on-premises" licensee may provide:
(1) Instruction, advice, expertise, space, equipment, ingredients, and bottling supplies for a customer in brewing malt beverages at the licensed premises.
(2) Assistance to customers, including:
(a) Moving containers of beer between storage areas;
(b) Cleaning, maintaining, and repairing brewing and bottling equipment;
(c) Maintaining climate and temperature control;
(d) Disposing of spent grains and waste; and
(e) Quality control, including laboratory analysis of malt beverages.
(3) Filtering and carbonation of malt beverages.
Section 4. A licensee and his employees shall not provide physical assistance to, or on behalf of, the customer in the production or bottling of malt beverages, except as otherwise permitted by statute or administrative regulation.
Section 5. Malt beverages produced under this license shall:
(1) Be removed from the premises by the customer upon completion of bottling for personal or family use, including use in organized fairs, exhibitions, or competitions; and
(2) Not be sold or offered for sale by the customer.
Section 6. A customer may produce malt beverages for personal or household use on the premises of the licensed brew-on-premises establishment. The production of malt beverages per household shall not exceed:
(1) 100 gallons per year for a household with one (1) adult at least twenty-one (21) years of age in permanent residence; or
(2) 200 gallons per year for a household with two (2) or more adults at least twenty-one (21) years of age in permanent residence.
Section 7. A license issued pursuant to this administrative regulation shall not be:
(1) A quota license as defined in 804 KAR 9:010; or
(2) Transferable to another premises.
Section 8. A licensed "brew-on-premises" establishment shall not be located in a dry territory as defined in KRS 241.010(20).
Section 9. (1) The license fee for the brew-on-premises license appears in KRS 243.040(11), and the fee shall be prorated as set forth in KRS 243.090(2). A license shall expire on the last day of a month assigned to the licensee by the office under KRS 243.090 of each year.
(2) Upon renewal, the licensee shall submit a:
(a) Application form;
(b) Fee as established in subsection (1) of this section; and
(c) Report stating:
1. The number of customers that brewed malt beverages at the licensed establishment during the preceding year; and
2. The total number of gallons brewed during the preceding year.
Section 10. The "brew-on-premises" licensee shall maintain records on customers and gallons brewed for at least two (2) years. Records shall be kept on the premises of the licensed establishment and shall be subject to inspection by the Department of Alcoholic Beverage Control for compliance with provisions of this administrative regulation.
Section 11. The hearing process for a violation of this administrative regulation shall be controlled by KRS Chapter 13B.
Section 12. Each applicant for a brew-on-premises license shall complete and submit to the Department of Alcoholic Beverage Control the "ABC Basic" application as set forth in 804 KAR 4:400 and the "Schedule 'M' Manufacturer and Producer License" form incorporated by reference in 804 KAR 4:410. (23 Ky.R. 4027; Am. 24 Ky.R. 88; eff. 7-11-97; 30 Ky.R. 1097; 1513; eff. 1-5-2004; 33 Ky.R. 1153; 1534; eff. 1-5-07; TAm eff. 8-9-2007; TAm eff. 7-15-2014.)