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260.175 Kentucky small farm wineries support fund.
(1)
(2)
The Kentucky small farm wineries support fund is created as a separate
revolving fund. The support fund shall consist of amounts transferred to the
fund pursuant to the provisions of subsection (2) of this section and any other
proceeds from grants, contributions, appropriations, or other moneys made
available for the purposes of the fund. Fund amounts not expended at the
close of the fiscal year shall not lapse but shall be carried forward into the next
fiscal year. Any interest earnings of the fund shall become a part of the fund
and shall not lapse.
A total of four hundred thousand dollars ($400,000) shall be deposited in the
Kentucky small farm wineries support fund each fiscal year from the general
fund. The funds shall be used by the Kentucky Grape and Wine Council as
follows:
(a) Two hundred thousand dollars ($200,000) of these funds shall be used
for the promotion, advertising, and marketing in Kentucky of wine
produced by small farm wineries located in Kentucky. The Grape and
Wine Council shall collaborate with the Kentucky Department of
Agriculture and the Kentucky Department of Travel and Tourism to
develop a marketing plan that shall include brand development, direct
mail and e-marketing, Web site development, collateral brochures and
maps, advertising, familiarization trips, a retail program, and any other
topics that the marketing plan developers deem appropriate or that may
be established through the promulgation of administrative regulations;
(b) One hundred thousand dollars ($100,000) of these funds shall be used by
the Grape and Wine Council, in collaboration with the Kentucky
Department of Agriculture and the Kentucky Department of Travel and
Tourism, to establish a local marketing cost-share program. For the
purposes of this section, "local marketing cost-share program" means a
mechanism to provide Kentucky small farm wineries with access to
matching funds reimbursements for projects that promote and market
their products. Standards for the application for, and receipt of, matching
funds reimbursements authorized in this section shall be established
through the promulgation of administrative regulations;
(c) Twenty-five thousand dollars ($25,000) of these funds shall be used for
funding the administrative costs of the Kentucky Grape and Wine Council.
The costs shall include but not be limited to reimbursement for the
council's appointed members' travel expenses while attending meetings
of the council;
(d) Seventy-five thousand dollars ($75,000) shall be used for the payment of
fees to licensed wholesalers who apply to the Kentucky Grape and Wine
Council to participate in a wine distribution program established by the
Kentucky Grape and Wine Council. A licensed wholesaler shall apply and
shall be eligible for consideration for the program. The licensed
wholesaler shall agree to distribute the wine produced by small farm
wineries licensed under KRS 243.155 and shall agree to sell the wine to
retailers for the same price the wholesaler paid for the wine; and
(e) The funds allocated to each purpose under paragraphs (a) to (d) of this
(3)
subsection shall be used exclusively for the purpose designated. Use of
the funds designated for each purpose shall be strictly adhered to, and
the funds shall not be used to support any other purpose. If at the end of
any fiscal year funds designated for one (1) of the purposes are unused,
the unused funds shall not lapse and shall be carried forth to the
succeeding year for the original purpose designated.
The Kentucky Grape and Wine Council shall advise the Commissioner of the
Department of Agriculture regarding promulgation of administrative regulations
necessary to carry out the provisions and purposes of subsection (2) of this
section. The Department of Agriculture shall collaborate with the Kentucky
Department of Travel and Tourism and the Kentucky Grape and Wine Council
in developing any administrative regulations promulgated under the authority of
this section.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 65, sec. 6, effective July 15, 2010. -Amended 2009 Ky. Acts ch. 16, sec. 68, effective June 25, 2009. -- Created
2006 Ky. Acts ch. 179, sec. 4, effective January 1, 2007.
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