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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
subsection shall be used exclusively for the purpose designated. Use of the
(3)
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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