As Amended by Senate Committee
As Amended by House Committee
Session of 2023
HOUSE BILL No. 2059
By Committee on Federal and State Affairs
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AN ACT concerning alcoholic beverages; relating to spirits, wine and
beer distributors; regulating samples; amending the common
consumption area law to permit rather than require roads be blocked
and allowing designation of such areas by signage; amending K.S.A.
41-306, 41-306a, 41-307 and 41-2659 and repealing the existing
section sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 41-306 is hereby amended to read as follows: 41-
306. A spirits distributor's license, shall allow:
(a) The wholesale purchase, importation and storage of spirits, but
all such spirits so purchased or imported which are manufactured in the
United States shall be purchased from the primary American source of
supply or from another licensed spirits distributor, except that a licensed
spirits distributor may purchase confiscated spirits at a sheriff's sale.
(b) The sale of spirits to:
(1) Spirits distributors licensed in this state;
(2) retailers licensed in this state, except that such distributor shall
sell a brand of spirits only to those retailers whose licensed premises are
located in the geographic territory within which such distributor is
authorized to sell such brand, as designated in the notice or notices filed
with the director pursuant to K.S.A. 41-410, and amendments thereto;
and
(3) such persons located outside such territory or outside this state
as permitted by law.
(c) The purchase of spirits in barrels, casks or other bulk
containers and the bottling thereof before resale, but all bottles or
containers filled with such spirits shall be sealed, labeled and otherwise
made to comply with all laws and rules and regulations governing the
preparation and bottling of spirits by manufacturers and with all federal
rules, regulations and laws.
(d) The storage and delivery to a retailer licensed under the Kansas
liquor control act or a retailer licensed under K.S.A. 41-2702, and
amendments thereto, on the distributor's licensed premises, of alcoholic
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liquor or cereal malt beverage of another licensed distributor authorized
by law to sell such alcoholic liquor or cereal malt beverage to such
retailer, in accordance with an agreement entered into with such other
distributor and approved by the director.
(e) The storage and delivery to a public venue licensed under the
club and drinking establishment act of alcoholic liquor purchased by the
public venue licensee from a retailer authorized by law to sell such
alcoholic liquor to such public venue licensee.
(f) The withdrawal of spirits from such licensee's inventory for use
as samples in the course of the business of the distributor or at industry
seminars. Samples may only be provided to persons licensed as a
distributor or a retailer under the Kansas liquor control act, and such
person's employees or to persons licensed under the club and drinking
establishment act and such persons' employees. Samples may be served
on the licensed premises of the licensee, or on the premises of a licensed
retailer, provided except that no sample shall be served on that portion of
the premises of a licensed retailer that is open to the public and where
sales of alcoholic liquor at retail are made. Only products that have not
been purchased from the distributor licensee by the retailer or club and
drinking establishment act licensee within the previous 12 months may be
provided for sampling pursuant to this subsection. No sample shall be
provided to any minor. Nothing in this subsection shall be construed to
permit the licensee to sell any alcoholic liquor for consumption on the
premises. The withdrawal of spirits shall be subject to the tax imposed by
K.S.A. 79-4101 et seq., and amendments thereto, based on the applicable
current posted bottle or case price. For purposes of providing samples
pursuant to this subsection other than at industry seminars or to the
licensee's employees, the term "sample" shall have the same meaning as
that term is defined in K.S.A. 41-2601, and amendments thereto this
subsection, "sample" means not more than three liters of distilled spirits.
Sec. 2. K.S.A. 41-306a is hereby amended to read as follows: 41-
306a. A wine distributor's license shall allow:
(a) The wholesale purchase, importation and storage of wine, but
all wine so purchased or imported which is manufactured in the United
States shall be purchased from the primary American source of supply
or from another licensed wine distributor, except that a licensed wine
distributor may purchase confiscated wine at a sheriff's sale.
(b) The sale of wine to:
(1) Wine distributors licensed in this state;
(2) retailers licensed in this state, except that such distributor shall
sell a brand of wine only to those retailers whose licensed premises are
located in the geographic territory within which such distributor is
authorized to sell such brand, as designated in the notice or notices filed
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with the director pursuant to K.S.A. 41-410, and amendments thereto;
and
(3) such persons located outside such territory or outside this state
as permitted by law.
(c) The sale of wine, but only in barrels, casks and other bulk
containers, to:
(1) Licensed caterers; and
(2) public venues, clubs and drinking establishments licensed in
this state, except that such distributor shall sell a brand of wine only to
such public venues, clubs and drinking establishments the licensed
premises of which are located in the geographic territory within which
such distributor is authorized to sell such brand, as designated in the
notice or notices filed with the director pursuant to K.S.A. 41-410, and
amendments thereto.
(d) The purchase of wine in barrels, casks or other bulk containers
and the bottling thereof before resale, but all bottles or containers filled
with such wine shall be sealed, labeled and otherwise made to comply
with all laws and rules and regulations governing the preparation and
bottling of wine by manufacturers and with all federal rules, regulations
and laws.
(e) The storage and delivery to a retailer licensed under the Kansas
liquor control act or a retailer licensed under K.S.A. 41-2702, and
amendments thereto, on the distributor's licensed premises, of alcoholic
liquor or cereal malt beverage of another licensed distributor authorized
by law to sell such alcoholic liquor or cereal malt beverage to such
retailer, in accordance with an agreement entered into with such other
distributor and approved by the director.
(f) The withdrawal of wine from such licensee's inventory for use
as samples in the course of the business of the distributor or at industry
seminars. Samples may only be provided to persons licensed as a
distributor or a retailer under the Kansas liquor control act, and such
person's employees, or to persons licensed under the club and drinking
establishment act, and such person's employees. Samples may be served
on the licensed premises of the licensee, or on the premises of a licensed
retailer, provided no sample shall be served on that portion of the
premises of a licensed retailer that is open to the public and where sales
of alcoholic liquor at retail are made. Samples may be served on the
premises of a licensee holding a license issued under the club and
drinking establishment act, provided no sample shall be served on that
portion of the premises that is open to the public and where sales of
alcoholic liquor are made. Only products that have not been purchased
from the distributor licensee by the retailer or club and drinking
establishment licensee within the previous 12 months may be provided for
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sampling pursuant to this subsection. No sample shall be provided to any
minor. Nothing in this subsection shall be construed to permit the
licensee to sell any alcoholic liquor for consumption on the premises.
The withdrawal of wine shall be subject to the tax imposed by K.S.A. 79-
4101 et seq., and amendments thereto, based on the applicable current
posted bottle or case price. For purposes of providing samples pursuant to
this subsection other than at industry seminars or to the licensee's
employees, the term of this subsection, "sample" shall have the same
meaning as that term is defined in K.S.A. 41-2601, and amendments
thereto means not more than three liters of any brand of wine.
(g) This section shall be a part of and supplemental to the Kansas
liquor control act.
Sec. 3. K.S.A. 41-307 is hereby amended to read as follows: 41-307.
A beer distributor's license shall allow:
(a) The wholesale purchase, importation and storage of beer.
(b) The sale of beer to:
(1) Licensed caterers;
(2) beer distributors licensed in this state;
(3) retailers, public venues, clubs and drinking establishments,
licensed in this state, except that such distributor shall sell a brand of
beer only to those retailers, public venues, clubs and drinking
establishments of which the licensed premises are located in the
geographic territory within which such distributor is authorized to sell
such brand, as designated in the notice or notices filed with the director
pursuant to K.S.A. 41-410, and amendments thereto; and
(4) such persons located outside such territory or outside this state
as permitted by law.
(c) The sale of cereal malt beverage to:
(1) Beer distributors licensed in this state;
(2) clubs and drinking establishments, licensed in this state, and
retailers licensed under K.S.A. 41-2702, and amendments thereto, except
that such distributor shall sell a brand of cereal malt beverage only to
those such clubs, drinking establishments and retailers of which the
licensed premises are located in the geographic territory within which
such distributor is authorized to sell such brand, as designated in the
notice or notices filed with the director pursuant to K.S.A. 41-410, and
amendments thereto;
(3) retailers; and
(4) such persons located outside such territory or outside this state
as permitted by law.
(d) The sale of beer containing not more than 6% alcohol by
volume to cereal malt beverage retailers licensed pursuant to K.S.A. 41-
2702, and amendments thereto.
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(e) The purchase of cereal malt beverage in kegs or other bulk
containers and the bottling or canning thereof in accordance with law.
(f) The storage and delivery to a retailer licensed under the Kansas
liquor control act or a retailer licensed under K.S.A. 41-2702, and
amendments thereto, on the distributor's licensed premises, of alcoholic
liquor or cereal malt beverage of another licensed distributor authorized
by law to sell such alcoholic liquor or cereal malt beverage to such
retailer, in accordance with an agreement entered into with such other
distributor and approved by the director.
(g) The storage and delivery, with proper invoicing in accordance
with rules and regulations adopted by the secretary, on the premises of a
public venue licensee, of beer sold to or available for purchase by the
public venue during an event.
(h) The withdrawal of beer or cereal malt beverage from such
licensee's inventory for use as samples in the course of the business of
the distributor or at industry seminars. Samples may only be provided to
persons licensed as a distributor or a retailer under the Kansas liquor
control act, and such person's employees, or to persons licensed under
the club and drinking establishment act, and such person's employees.
Samples may be served on the licensed premises of the licensee, or on
the premises of a licensed retailer, provided no sample shall be served on
that portion of the premises of a licensed retailer that is open to the
public and where sales of alcoholic liquor at retail are made. Samples
may be served on the premises of a licensee holding a license issued
under the club and drinking establishment act, provided no sample shall
be served on that portion of the premises that is open to the public and
where sales of alcoholic liquor are made. Only products that have not
been purchased from the distributor licensee by the retailer or club and
drinking establishment act licensee within the previous 12 months may be
provided for sampling pursuant to this subsection. No sample shall be
provided to any minor. Nothing in this subsection shall be construed to
permit the licensee to sell any alcoholic liquor for consumption on the
premises. The withdrawal of beer or cereal malt beverage shall be
subject to the tax imposed by K.S.A. 79-4101 et seq., and amendments
thereto, based on the applicable current posted bottle or case price. For
purposes of providing samples pursuant to this subsection other than at
industry seminars or to the licensee's employees, the term this subsection,
"sample" shall have the same meaning as that term is defined in K.S.A.
41-2601, and amendments thereto means not more than three gallons of
any brand of beer or cereal malt beverage.
Section 1. Sec. 4. On and after July 1, 2023, K.S.A. 41-2659 is
hereby amended to read as follows: 41-2659. (a) (1) A city or a county
may establish one or more common consumption areas within the limits of
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the city or within the unincorporated portion of the county, as applicable,
by ordinance or resolution, respectively, and authorize the possession and
consumption of alcoholic liquor or cereal malt beverage within the
common consumption area. The ordinance or resolution shall designate the
boundaries of any common consumption area and prescribe the times
during which alcoholic liquor or cereal malt beverage may be consumed
therein. The ordinance or resolution shall may require that any public street
or roadway that lies within a common consumption area shall be blocked
from motorized traffic during the hours in which alcoholic liquor or cereal
malt beverage is consumed.
(2) The city or county shall immediately notify the director of the
division of alcoholic beverage control of the establishment of a common
consumption area and submit a copy of the ordinance or resolution along
with such notice.
(b) A common consumption area permit shall allow the consumption
of alcoholic liquor or cereal malt beverage in any area designated by such
permit. The director may issue common consumption area permits to the
city or county or any one person who shall be a resident of Kansas or an
organization that has its principal place of business in Kansas and that has
been approved by the respective city or county, in accordance with rules
and regulations adopted by the secretary of revenue.
(c) Applications for common consumption area permits shall be
submitted to the director, subject to the following:
(1) A copy of any ordinance or resolution promulgated in accordance
with subsection (a) shall accompany any application for a common
consumption area permit.
(2) Each application shall be accompanied by a non-refundable
permit fee of $100. All permit fees collected by the director pursuant to
this section shall be remitted to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
each such remittance, the state treasurer shall deposit the entire amount in
the state treasury to the credit of the state general fund.
(3) A common consumption area permit shall be issued for a period
of not to exceed one year. A common consumption area permit shall not be
transferable or assignable.
(d) Any licensee immediately adjacent to, or located within a
common consumption area may request that the licensee's licensed
premises participate in the common consumption area for the duration of
the common consumption area permit. Such a request shall be made upon
forms prescribed by the director.
(e) (1) Any licensee who has requested and received permission to
participate in the common consumption area may allow its legal patrons to
remove alcoholic liquor or cereal malt beverage purchased from the
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licensee into the premises described by the common consumption area
permit. All alcoholic liquor and cereal malt beverage removed from a
licensed premises in such fashion shall be served in a container that
displays the licensee's trade name or logo or other identifying mark that is
unique to the licensee.
(2) In addition to their licensed premises, one or more licensees that
have requested and received permission to participate in a common
consumption area may offer for sale, sell and serve alcoholic liquor or
cereal malt beverage for consumption from one non-contiguous service
area within the common consumption area, as designated and approved by
the common consumption area permit holder. The licensee shall
prominently display a copy of its drinking establishment license and the
approval of the common consumption area permit holder at its non-
contiguous service area.
(f) (1) Each licensee within a common consumption area shall be
liable for violations of all liquor laws governing the sale and consumption
of alcoholic liquor or cereal malt beverage that occur on the licensee's
premises.
(2) Each common consumption area permit holder shall be liable for
violations that occur off the licensee's premises, but within the common
consumption area identified in the permit. No permit holder shall permit
any person to remove any open container of alcoholic liquor or cereal malt
beverage from the boundaries of the common consumption area.
(g) (1) For the purposes of this section, "common consumption area"
means a defined indoor or outdoor area not otherwise subject to a license
issued pursuant to the Kansas liquor control act or the club and drinking
establishment act where the possession and consumption of alcoholic
liquor or cereal malt beverage is allowed pursuant to a common
consumption area permit.
(2) The boundaries of any common consumption area must be clearly
marked using a physical barrier or, or any apparent line of demarcation or
other appropriate signage. Every common consumption area shall have
signs conspicuously posted identifying the boundaries of such area in a
size and manner that provides notice to persons entering or leaving
the area.
(h) The secretary shall adopt rules and regulations to implement this
section.
(i) This section shall be a part of and supplemental to the club and
drinking establishment act.
Sec. 5. K.S.A. 41-306, 41-306a and 41-307 are hereby repealed.
Sec. 2. 6. On and after July 1, 2023, K.S.A. 41-2659 is hereby
repealed.
Sec. 3. 7. This act shall take effect and be in force from and after its
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publication in the statute book Kansas register.1