For over 150 years, federal law has prohibited the use of home distilleries. The essential purpose of the ban is to facilitate the taxing of distilled spirits, which has long been a font of government revenue. In fact, distilled spirit taxation was the original revenue source for the federal government (see “Whiskey Rebellion”).  For just as long, there have been attempts to thwart these tax collection efforts, and the ensuing give and take have left a profound stamp on American culture, such as the creation of NASCAR from moonshine runners evading those pesky “revenooers.”

Over the past month, Kentucky has hosted several gatherings that brought together some of the most influential voices in the bourbon industry. 

Most distilleries think about law in terms of compliance.
Permits. Labels. Distribution. Avoiding risk. 

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.

It’s not a stretch to link dram shop liability and Kentucky tourism these days. The Kentucky Bourbon Trail and the newfound ability of distilleries and craft producers to serve alcohol themselves have brought this issue into sharper focus. With the boom in alcohol tourism and on-site sampling, alcohol retailers old and new who rely on a steady stream of tourists should understand that with these new powers come new responsibilities, and dram shop liability is law in Kentucky.