Committee approves House Bill 618 to allow limited retail-to-restaurant transfers, temporary auction licenses and parity for some bars

The Senate Standing Committee on Licensing and Occupations voted to report House Bill 618 with a favorable recommendation on March 27, 2025. Committee speakers described a three-part bill affecting alcoholic beverage sales and distribution while saying it preserves the three-tier distribution system.

Representative Matt Cook, sponsor of the House measure, said the bill's first part allows a retailer to sell limited quantities of packaged alcohol to a restaurant to be served on site in specific circumstances. "We actually had a restaurant in Bourbon County ... both busloads wanted to drink Yuengling beer," Cook said as an example. The committee substitute sets quantity limits presenters described as 9 liters of distilled spirits, 9 liters of wine, and three cases of malt beverages per reporting period, and requires quarterly reporting. Presenters said these sales still must move through the three-tier system and that the change is intended to avoid turning away customers without altering core wholesaler-retailer responsibilities.

The bill's second part creates a temporary auctioneer license said to cost $100 and be valid for 30 days, allowing auctioneers to sell alcoholic beverages in their original retail packaging at estate or specialty auctions. Joe Gribbons of the Kentucky Auctioneers Association described demand for estate and collectible bourbon auctions and said the temporary license would facilitate those sales. In response to a committee question, Gribbons said sales tax is expected to be collected on auction sales unless otherwise directed by the Revenue Cabinet.

The third component extends certain sales opportunities to holders of quota bar licenses so they may participate in "barrel pick" sales similarly to restaurants, a change sponsor Matt Cook described as leveling the playing field for small bars. Senator Nunn noted a qualified historic license holder would not benefit from the change in his case because of specific historic-license restrictions.

The committee also discussed charitable and nonprofit auctions: presenters confirmed nonprofit groups that auction alcoholic beverages must obtain the required permit, which committee members said is not a change from existing law. Senator Higdon urged consideration of additional guardrails to encourage local purchasing at the county level for fundraising events.

The measure was moved and seconded, considered as amended by the Senate committee substitute, and advanced by roll call. The chair announced, "House Bill 6 18 passes out with favorable expression."