Kansas 2023-2024 Regular Session

Kansas House Bill HB2124 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	Senate Substitute for HOUSE BILL No. 2124
2		-	AN ACT concerning alcoholic liquor; relating to microbreweries; directing the secretary of
3		-	revenue to study the collection and remittance of alcoholic liquor enforcement tax by
4		-	microbreweries; directing the director of alcoholic beverage control to study the
5		-	collection and remittance of alcoholic liquor gallonage tax by microbreweries;
6		-	permitting the sale of beer and hard cider manufactured by the licensee to retailers,
7		-	public venues, clubs, drinking establishments, holders of temporary permits and
8		-	caterers; allowing the sale of such beer and hard cider in unopened containers to
9		-	consumers at special events monitored and regulated by the division of alcoholic
10		-	beverage control; amending K.S.A. 41-308b, 41-410, 41-601, 41-701, 41-702, 41-
11		-	703, 41-706, 41-708, 41-709, 41-728, 41-1101, 41-1202 and 41-2642 and K.S.A.
12		-	2023 Supp. 41-1201 and repealing the existing sections.
	1	+	Session of 2023
	2	+	HOUSE BILL No. 2124
	3	+	By Committee on Commerce, Labor and Economic Development
	4	+	1-20
	5	+	AN ACT concerning alcoholic beverages; relating to the Kansas cereal
	6	+	malt beverage act; allowing businesses to sell cereal malt beverage by
	7	+	the drink on Sundays without requiring that 30% of such businesses'
	8	+	gross receipts be derived from the sale of food; amending K.S.A. 2022
	9	+	Supp. 41-2704 and repealing the existing section.
13	10		Be it enacted by the Legislature of the State of Kansas:
14		-	New Section 1. (a) The secretary of revenue shall conduct a study
15		-	on licensed microbrewery compliance with state laws and rules and
16		-	regulations governing the collection and remittance of alcoholic liquor
17		-	enforcement taxes. On or before January 15, 2025, the secretary shall
18		-	prepare and submit a report to the governor and the legislature on the
19		-	findings of such study, including any recommendations regarding such
20		-	collection and remittance, the monitoring thereof and ensuring
21		-	compliance with applicable laws and rules and regulations.
22		-	(b) The director of alcoholic beverage control shall conduct a
23		-	study on licensed microbrewery compliance with state laws and rules
24		-	and regulations governing the collection and remittance of alcoholic
25		-	liquor gallonage taxes. On or before January 15, 2025, the director shall
26		-	prepare and submit a report to the governor and the legislature on the
27		-	findings of such study, including any recommendations regarding such
28		-	collection and remittance, the monitoring thereof and ensuring
29		-	compliance with applicable laws and rules and regulations.
30		-	(c) This section shall expire on July 1, 2025.
31		-	Sec. 2. K.S.A. 41-308b is hereby amended to read as follows: 41-
32		-	308b. (a) A microbrewery license shall allow:
33		-	(1) The manufacture of not less than 100 nor more than 60,000
34		-	30,000 barrels of domestic beer during the calendar year and the
35		-	storage thereof, if, however, the licensee holds a 10% or greater
36		-	ownership interest in one or more entities that also hold a microbrewery
37		-	license, then the aggregate number of barrels of domestic beer
38		-	manufactured by all such licensees with such common ownership shall
39		-	not exceed the 60,000 30,000 barrel limit;
40		-	(2) the manufacture in the aggregate of not more than 100,000
41		-	gallons of hard cider during the calendar year and the storage thereof;
42		-	(3) (A) the sale to licensed beer distributors of beer and
43		-	manufactured by the licensee;
44		-	(B) the sale to licensed wine distributors of hard cider,
45		-	manufactured by the licensee; and
46		-	(C) the sale to retailers, public venues, clubs, drinking
47		-	establishments, caterers and temporary permit holders of beer and
48		-	hard cider manufactured by the licensee. The aggregate annual sales of
49		-	such beer made pursuant to this subparagraph shall not exceed 1,000
50		-	barrels. The aggregate annual sales of such hard cider made pursuant
51		-	to this subparagraph shall not exceed 3,000 gallons;
52		-	(4) the sale, both on the licensed premises and off the licensed
53		-	premises at special events monitored and regulated by the division of
54		-	alcoholic beverage control in the original unopened container to
55		-	consumers for consumption off the licensed premises, of beer and hard
56		-	cider manufactured by the licensee;
57		-	(5) the sale, on the licensed premises in refillable and sealable
58		-	containers to consumers for consumption off the licensed premises, of
59		-	beer manufactured by the licensee, subject to the following conditions:
60		-	(A) Containers described in this paragraph shall contain not less
61		-	than 32 fluid ounces and not more than 64 fluid ounces of beer; and
62		-	(B) the licensee shall affix a label to all containers sold pursuant to Senate Substitute HOUSE BILL No. 2124—page 2
63		-	this paragraph clearly indicating the licensee's name and the name and
64		-	type of beer contained in such container;
65		-	(6) the serving free of charge on the licensed premises and at
66		-	special events, monitored and regulated by the division of alcoholic
67		-	beverage control, of samples of beer and hard cider manufactured by
68		-	the licensee, if the premises are located in a county where the sale of
69		-	alcoholic liquor is permitted by law in licensed drinking
70		-	establishments;
71		-	(7) if the premises is also licensed as a club or drinking
72		-	establishment, the sale and transfer of domestic beer to such club or
73		-	drinking establishment and the sale of domestic beer and other
74		-	alcoholic liquor for consumption on the licensed premises as authorized
75		-	by the club and drinking establishment act;
76		-	(8) if the premises is also licensed as a caterer, the sale of
77		-	domestic beer and other alcoholic liquor for consumption on unlicensed
78		-	premises as authorized by the club and drinking establishment act;
79		-	(9) if the licensee holds a 10% or greater ownership interest in one
80		-	or more entities that also hold a microbrewery license, the domestic
81		-	beer may be manufactured and transferred for sale or storage among
82		-	such microbrewery licensees with such common ownership; and
83		-	(10) the transfer of beer and hard cider manufactured by the
84		-	licensee pursuant to a contract entered into in accordance with
85		-	subsection (b) to the contracting microbrewery.
86		-	(b) (1) A microbrewery may contract with one or more
87		-	microbreweries for the purpose of manufacturing beer or hard cider for
88		-	such other microbreweries. A microbrewery located in this state may
89		-	manufacture and package beer and hard cider for a microbrewery
90		-	located within or outside of Kansas.
91		-	(2) A microbrewery manufacturing beer or hard cider for another
92		-	microbrewery shall be responsible for complying with all federal and
93		-	state laws dealing with the manufacturing of beer and hard cider,
94		-	including labeling laws, and shall be responsible for the payment of all
95		-	federal and state taxes on the beer and hard cider.
96		-	(3) Each party engaged in a contract brewing agreement must
97		-	count the total amount of barrels and gallons manufactured as part of
98		-	the agreement and include that total amount as part of their allowed
99		-	aggregate total as provided in subsection (a).
100		-	(c) (1) Not less than 30% of the products utilized in the
101		-	manufacture of hard cider by a microbrewery shall be grown in Kansas
102		-	except when a lesser proportion is authorized by the director based
103		-	upon the director's findings and judgment. The production requirement
104		-	of this subsection shall be determined based on the annual production
105		-	of domestic hard cider.
106		-	(2) On and after July 1, 2021, the percentage of products utilized
107		-	in the manufacture of hard cider by a microbrewery required to be
108		-	grown in Kansas shall be not less than 15%.
109		-	(3) The provisions of this subsection shall expire on January 1,
110		-	2023.
111		-	(d) The limit on aggregate annual sales of beer and hard cider as
112		-	specified in subsection (a)(3)(C) shall not apply to the distribution of
113		-	beer or hard cider by the microbrewery licensee to:
114		-	(1) A drinking establishment or caterer licensed under the club
115		-	and drinking establishment act if such microbrewery licensee holds a
116		-	25% or greater ownership interest in such drinking establishment or
117		-	caterer; or
118		-	(2) another microbrewery licensee or a licensed microbrewery
119		-	packaging and warehousing facility if such microbrewery licensee
120		-	holds a 25% or greater ownership interest in such microbrewery
121		-	licensee or microbrewery packaging and warehousing facility.
122		-	(d) Upon application and payment of the fee prescribed by K.S.A.
123		-	41-310, and amendments thereto, by a microbrewery licensee, the
124		-	director may issue not to exceed one microbrewery packaging and
125		-	warehousing facility license to the microbrewery licensee. A
126		-	microbrewery packaging and warehousing facility license shall allow: Senate Substitute HOUSE BILL No. 2124—page 3
127		-	(1) The transfer, from the licensed premises of the microbrewery
128		-	to the licensed premises of the microbrewery packaging and
129		-	warehousing facility, of beer and hard cider manufactured by the
130		-	licensee, for the purpose of packaging or storage, or both;
131		-	(2) the transfer, from the licensed premises of the microbrewery
132		-	packaging and warehousing facility to the licensed premises of any
133		-	microbrewery of such licensee, of beer manufactured by the licensee;
134		-	(3) the removal from the licensed premises of the microbrewery
135		-	packaging and warehousing facility of beer manufactured by the
136		-	licensee for the purpose of delivery to a licensed beer wholesaler; and
137		-	(4) the removal from the licensed premises of the microbrewery
138		-	packaging and warehousing facility of hard cider manufactured by the
139		-	licensee for the purpose of delivery to a licensed wine distributor.
140		-	(e) A microbrewery may sell domestic beer in the original
141		-	unopened container to consumers for consumption off the licensed
142		-	premises at any time between 6 a.m. and 12 midnight on any day. If
143		-	authorized by subsection (a), a microbrewery may serve samples of
144		-	domestic beer and serve and sell domestic beer and other alcoholic
145		-	liquor for consumption on the licensed premises at any time when a
146		-	club or drinking establishment is authorized to serve and sell alcoholic
147		-	liquor.
148		-	(f) The director may issue to the Kansas state fair or any bona fide
149		-	group of brewers a permit to import into this state small quantities of
150		-	beer. Such beer shall be used only for bona fide educational and
151		-	scientific tasting programs and shall not be resold. Such beer shall not
152		-	be subject to the tax imposed by K.S.A. 41-501, and amendments
153		-	thereto. The permit shall identify specifically the brand and type of beer
154		-	to be imported, the quantity to be imported, the tasting programs for
155		-	which the beer is to be used and the times and locations of such
156		-	programs. The secretary shall adopt rules and regulations governing the
157		-	importation of beer pursuant to this subsection and the conduct of
158		-	tasting programs for which such beer is imported.
159		-	(g) A microbrewery license or microbrewery packaging and
160		-	warehousing facility license shall apply only to the premises described
161		-	in the application and in the license issued and only one location shall
162		-	be described in the license.
163		-	(h) No microbrewery shall:
164		-	(1) Employ any person under the age of 18 years in connection
165		-	with the manufacture, sale or serving of any alcoholic liquor;
166		-	(2) permit any employee of the licensee who is under the age of 21
167		-	years to work on the licensed premises at any time when not under the
168		-	on-premises supervision of either the licensee or an employee of the
169		-	licensee who is 21 years of age or over;
170		-	(3) employ any person under 21 years of age in connection with
171		-	mixing or dispensing alcoholic liquor; or
172		-	(4) employ any person in connection with the manufacture or sale
173		-	of alcoholic liquor if the person has been convicted of a felony.
174		-	(i) Whenever a microbrewery licensee is convicted of a violation
175		-	of the Kansas liquor control act, the director may revoke the licensee's
176		-	license and all fees paid for the license in accordance with the Kansas
177		-	administrative procedure act.
178		-	Sec. 3. K.S.A. 41-410 is hereby amended to read as follows: 41-
179		-	410. (a) No distributor shall sell any alcoholic liquor or cereal malt
180		-	beverage in this state unless such distributor has filed with the director
181		-	a written notice stating each geographic territory, agreed upon in
182		-	writing between the distributor and a supplier of the distributor, within
183		-	which the distributor sells one or more brands of such supplier to
184		-	retailers licensed under the Kansas liquor control act or under K.S.A.
185		-	41-2702, and amendments thereto, or to clubs or drinking
186		-	establishments licensed under the club and drinking establishment act.
187		-	Such notice shall be accompanied by a map outlining each geographic
188		-	territory stated in the notice. No manufacturer, importer or other
189		-	supplier shall grant a franchise for the distribution of a brand to more
190		-	than one distributor for all or part of any designated territory. Senate Substitute HOUSE BILL No. 2124—page 4
191		-	(b) Each supplier of alcoholic liquor or cereal malt beverage doing
192		-	business within this state shall file with the director a written notice
193		-	describing each geographic territory, agreed upon in writing between
194		-	the supplier and a distributor, within which the distributor sells one or
195		-	more brands of the supplier to retailers licensed under the Kansas
196		-	liquor control act or under K.S.A. 41-2702, and amendments thereto, or
197		-	to clubs or drinking establishments licensed under the club and
198		-	drinking establishment act.
199		-	(c) No supplier or distributor shall terminate or modify a franchise
200		-	for the distribution of a brand of alcoholic liquor or cereal malt
201		-	beverage or alter the geographic territory designated in a franchise
202		-	agreement unless such supplier or distributor files written notice thereof
203		-	with the director not less than 30 days prior to the termination,
204		-	modification or alteration. In the case of an alteration in a franchise
205		-	territory, such notice shall be accompanied by a map outlining the
206		-	altered territory. Upon receipt of such notice, the director shall notify
207		-	immediately, by certified mail, all affected parties of the impending
208		-	termination, modification or alteration.
209		-	(d) Any notice filed by a supplier pursuant to subsection (c) shall
210		-	be accompanied by an affidavit stating that the termination,
211		-	modification or alteration is not caused by the failure of the distributor
212		-	to violate any provision of the Kansas liquor control act or any rules
213		-	and regulations adopted pursuant thereto.
214		-	(e) Any supplier or distributor aggrieved by a termination,
215		-	modification or alteration made under subsection (c) may file an
216		-	appropriate action in any district court of this state having venue,
217		-	alleging that the termination, modification or alteration violates the
218		-	franchise agreement between the supplier and distributor involved.
219		-	(f) No franchise agreement for the distribution of a brand of
220		-	alcoholic liquor or cereal malt beverage shall be terminated or
221		-	modified, nor shall the territory designated in such an agreement be
222		-	altered, except for reasonable cause.
223		-	(g) No microbrewery shall sell beer or hard cider produced by
224		-	such microbrewery to retailers licensed under the Kansas liquor
225		-	control act or the Kansas cereal malt beverage act or to any licensee
226		-	under the club and drinking establishment act unless such
227		-	microbrewery has filed a written notice with the director stating the
228		-	geographic territory within which such sales are made.
229		-	(h) This section shall be a part of and supplemental to the Kansas
230		-	liquor control act.
231		-	Sec. 4. K.S.A. 41-601 is hereby amended to read as follows: 41-
232		-	601. Every manufacturer, distributor, microbrewery which that sells
233		-	any beer to a beer distributor at wholesale, microdistillery which that
234		-	sells any spirits to a spirits distributor at wholesale and farm winery
235		-	which that sells any wine to a distributor at wholesale shall between the
	11	+	Section 1. K.S.A. 2022 Supp. 41-2704 is hereby amended to read as
	12	+	follows: 41-2704. (a) In addition to and consistent with the requirements
	13	+	of the Kansas cereal malt beverage act, the board of county commissioners
	14	+	of any county or the governing body of any city may prescribe hours of
	15	+	closing, standards of conduct and rules and regulations concerning the
	16	+	moral, sanitary and health conditions of places licensed pursuant to this act
	17	+	and may establish zones within which no such place may be located.
	18	+	(b) Within any city where the days of sale at retail of cereal malt
	19	+	beverage in the original package have not been expanded as provided by
	20	+	K.S.A. 41-2911, and amendments thereto, or have been so expanded and
	21	+	subsequently restricted as provided by K.S.A. 41-2911, and amendments
	22	+	thereto, no cereal malt beverages or beer containing not more than 6%
	23	+	alcohol by volume may be sold:
	24	+	(1) Between the hours of 12 midnight and 6 a.m.; or
	25	+	(2) on Sunday, except in a place of business which that is licensed to
	26	+	sell cereal malt beverage for consumption on the premises, which derives
	27	+	not less than 30% of its gross receipts from the sale of food for
	28	+	consumption on the licensed premises and which that is located in a
	29	+	county where such sales on Sunday have been authorized by resolution of
	30	+	the board of county commissioners of the county or in a city where such
	31	+	sales on Sunday have been authorized by ordinance of the governing body
	32	+	of the city.
	33	+	(c) Within any city where the days of sale at retail of cereal malt
	34	+	beverage in the original package have been expanded as provided by
	35	+	K.S.A. 41-2911, and amendments thereto, and have not been subsequently
	36	+	restricted as provided in K.S.A. 41-2911, and amendments thereto, no
	37	+	person shall sell at retail cereal malt beverage or beer containing not more
	38	+	than 6% alcohol by volume:
	39	+	(1) Between the hours of 12 midnight and 6 a.m.;
236	40		1
237		-	st
238		-	and 15
239		-	th
240		-	day of each calendar month, make return under oath to the
241		-	director of all alcoholic liquor manufactured and sold by the
242		-	manufacturer, distributor, microbrewery, microdistillery or farm winery
243		-	in the course of business during the preceding calendar month. In the
244		-	case of a distributor or microbrewery, the return shall also show: (a)
245		-	The total amount of liquor purchased by the distributor or
246		-	microbrewery during the preceding calendar month, the names of the
247		-	distillers or distributors from whom purchased, the quantity of each
248		-	brand and the price paid therefor; and (b) the names and locations of
249		-	the retailers to whom alcoholic liquor was sold by the distributor or
250		-	microbrewery during the preceding calendar month, the quantity of
251		-	each brand and the price charged therefor. The return shall be made
252		-	upon forms prescribed and furnished by the director and shall contain
253		-	such other information as the director reasonably requires.
254		-	Sec. 5. K.S.A. 41-701 is hereby amended to read as follows: 41-
255		-	701. (a) Except as provided in subsection (d) (e), no spirits distributor
256		-	shall sell or attempt to sell any spirits within this state except to:
257		-	(1) A licensed manufacturer, licensed nonbeverage user or
258		-	licensed spirits distributor; or Senate Substitute HOUSE BILL No. 2124—page 5
259		-	(2) a licensed retailer, as authorized by K.S.A. 41-306, and
260		-	amendments thereto.
261		-	(b) Except as provided in subsection (d) (e), no wine distributor
262		-	shall sell or attempt to sell any wine within this state except to:
263		-	(1) A licensed manufacturer, licensed nonbeverage user or
264		-	licensed wine distributor;
265		-	(2) a licensed caterer; or
266		-	(3) a retailer, public venue, club or drinking establishment,
267		-	licensed in this state, as authorized by K.S.A. 41-306a, and
268		-	amendments thereto.
269		-	(c) Except as provided by subsection (d) (e), no beer distributor
270		-	shall sell or attempt to sell any beer or cereal malt beverage within this
271		-	state except to:
272		-	(1) A licensed manufacturer, licensed nonbeverage user or
273		-	licensed beer distributor;
274		-	(2) a licensed caterer; or
275		-	(3) a retailer licensed under the Kansas liquor control act or under
276		-	K.S.A. 41-2702, and amendments thereto, or a club or drinking
277		-	establishment, licensed in this state, as authorized by K.S.A. 41-307,
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	75	+	36 HB 2124 2
	76	+	(2) in the original package not earlier than 9 a.m. and not later than 8
	77	+	p.m. on Sunday;
	78	+	(3) on Easter Sunday; or
	79	+	(4) for consumption on the licensed premises on Sunday, except in a
	80	+	place of business which that is licensed to sell cereal malt beverage for
	81	+	consumption on the premises, which derives not less than 30% of its gross
	82	+	receipts from the sale of food for consumption on the licensed premises
	83	+	and which that is located in a county where such sales on Sunday have
	84	+	been authorized by resolution of the board of county commissioners of the
	85	+	county or in a city where such sales on Sunday have been authorized by
	86	+	ordinance of the governing body of the city.
	87	+	(d) No private rooms or closed booths shall be operated in a place of
	88	+	business, but this provision shall not apply if the licensed premises also are
	89	+	licensed as a club pursuant to the club and drinking establishment act.
	90	+	(e) Each place of business shall be open to the public and to law
	91	+	enforcement officers at all times during business hours, except that a
	92	+	premises licensed as a club pursuant to the club and drinking establishment
	93	+	act shall be open to law enforcement officers and not to the public.
	94	+	(f) Except as otherwise provided by this subsection, no licensee shall
	95	+	permit a person under the legal age for consumption of cereal malt
	96	+	beverage or beer containing not more than 6% alcohol by volume to
	97	+	consume or purchase any cereal malt beverage in or about a place of
	98	+	business. A licensee's employee who is not less than 18 years of age may
	99	+	dispense or sell cereal malt beverage or beer containing not more than 6%
	100	+	alcohol by volume, if:
	101	+	(1) The licensee's place of business is licensed only to sell at retail
	102	+	cereal malt beverage or beer containing not more than 6% alcohol by
	103	+	volume in the original package and not for consumption on the premises;
	104	+	or
	105	+	(2) the licensee's place of business is a licensed food service
	106	+	establishment, as defined by K.S.A. 36-501, and amendments thereto, and
	107	+	not less than 50% of the gross receipts from the licensee's place of
	108	+	business is derived from the sale of food for consumption on the premises
	109	+	of the licensed place of business.
	110	+	(g) No person shall have any alcoholic liquor, except beer containing
	111	+	not more than 6% alcohol by volume, in such person's possession while in
	112	+	a place of business, unless the premises are currently licensed as a club or
	113	+	drinking establishment pursuant to the club and drinking establishment act
	114	+	or the business is a farm winery licensed pursuant to K.S.A. 41-316, and
	115	+	amendments thereto, or a producer licensed pursuant to K.S.A. 41-355,
278	116		and amendments thereto.
279		-	(d) Except as provided in K.S.A. 41-308b, and amendments
280		-	thereto, and subsection (e), no microbrewery shall sell or attempt to
281		-	sell any beer or hard cider within this state except to:
282		-	(1) A retailer licensed under the Kansas liquor control act or the
283		-	Kansas cereal malt beverage act; or
284		-	(2) a licensee under the club and drinking establishment act.
285		-	(e) (1) If any spirits distributor refuses to sell spirits which that
286		-	such distributor is authorized to sell or refuses to provide any service in
287		-	connection therewith to any licensed retailer as authorized by K.S.A.
288		-	41-306, and amendments thereto, it shall be lawful for any other
289		-	licensed spirits distributor to sell such spirits to such retailer.
290		-	(2) If any wine distributor refuses to sell wine which that such
291		-	distributor is authorized to sell or refuses to furnish service in
292		-	connection therewith to any licensed retailer, as authorized by K.S.A.
293		-	41-306a, and amendments thereto, it shall be lawful for any other
294		-	licensed wine distributor to sell such wine to such retailer.
295		-	(3) If any beer distributor refuses to sell beer or cereal malt
296		-	beverage which that such distributor is authorized to sell or provide
297		-	service in connection therewith to any retailer licensed under this act or
298		-	under K.S.A. 41-2702, and amendments thereto, as authorized by
299		-	K.S.A. 41-307, and amendments thereto, it shall be lawful for any other
300		-	licensed beer distributor or microbrewery to sell such beer or cereal
301		-	malt beverage to such retailer.
302		-	(e) No manufacturer of alcoholic liquor or cereal malt beverage
303		-	shall sell or attempt to sell any alcoholic liquor or cereal malt beverage
304		-	within this state except to a licensed manufacturer, licensed distributor
305		-	or licensed nonbeverage user.
306		-	(f) No supplier, wholesaler, distributor, microbrewery,
307		-	manufacturer or importer shall by oral or written contract or agreement,
308		-	expressly or impliedly fix, maintain, coerce or control the resale price
309		-	of alcoholic liquor, beer or cereal malt beverage to be resold by such
310		-	wholesaler, distributor, microbrewery, manufacturer or importer.
311		-	(g) Any supplier, wholesaler, distributor, microbrewery or
312		-	manufacturer violating the provisions of this section shall be guilty of a
313		-	misdemeanor and upon conviction thereof shall be punished by a fine
314		-	of not less than $500 and not more than $1,000, to which may be added
315		-	not to exceed six months' imprisonment. In addition, any supplier,
316		-	wholesaler, distributor, microbrewery, manufacturer or importer
317		-	violating the provisions of this section relating to fixing, maintaining or
318		-	controlling the resale price of alcoholic liquor, beer or cereal malt
319		-	beverage shall be liable in a civil action to treble the amount of any
320		-	damages awarded plus reasonable attorney fees for the damaged party.
321		-	Sec. 6. K.S.A. 41-702 is hereby amended to read as follows: 41-
322		-	702. (a) Except to the extent permitted pursuant to K.S.A. 41-703, and Senate Substitute HOUSE BILL No. 2124—page 6
323		-	amendments thereto, no licensed retailer, club, drinking establishment
324		-	or caterer, or any officer, associate, member, representative or agent
325		-	thereof, shall accept, receive or borrow money or anything else of
326		-	value, or accept or receive credit, directly or indirectly, from: (1) Any
327		-	manufacturer or, distributor or microbrewery; (2) any person connected
328		-	with, in any way representing or a member of the family of a
329		-	manufacturer or, distributor or microbrewery; (3) any stockholders in a
330		-	manufacturer or, distributor or microbrewery; or (4) any officer,
331		-	manager, agent or representative of a manufacturer or, distributor or
332		-	microbrewery.
333		-	(b) Except to the extent permitted pursuant to K.S.A. 41-703, and
334		-	amendments thereto, no manufacturer or, distributor or microbrewery
335		-	shall give or lend money or anything of value or otherwise loan or
336		-	extend credit, directly or indirectly, to any retailer licensed under this
337		-	act or under K.S.A. 41-2702, and amendments thereto, or to any
338		-	licensed club, drinking establishment or caterer, or to the manager,
339		-	representative, agent, officer or director thereof.
340		-	(c) If any licensed retailer, distributor, manufacturer,
341		-	microbrewery, club, drinking establishment or caterer violates any
342		-	provision of this section, the license of such retailer, distributor,
343		-	manufacturer, microbrewery, club, drinking establishment or caterer
344		-	shall be suspended or revoked by the director in the manner provided
345		-	by law for revocation or suspension for other violations of this act.
346		-	Sec. 7. K.S.A. 41-703 is hereby amended to read as follows: 41-
347		-	703. (a) Except as provided by subsection (d), no manufacturer or,
348		-	distributor or microbrewery shall directly or indirectly: (1) Sell, supply,
349		-	furnish, give, pay for, loan or lease any furnishing, fixture or equipment
350		-	on the premises of a place of business of a licensee under the club and
351		-	drinking establishment act or a retailer licensed under the Kansas liquor
352		-	control act or under K.S.A. 41-2702, and amendments thereto; (2) pay
353		-	for any such licensee's or retailer's license, or advance, furnish, lend or
354		-	give money for payment of such license; (3) purchase or become the
355		-	owner of any note, mortgage or other evidence of indebtedness of any
356		-	such licensee or retailer or any form of security therefor; (4) be
357		-	interested in the ownership, conduct or operation of the business of any
358		-	such licensee or retailer; or (5) be interested, directly or indirectly, or as
359		-	owner, part owner, lessee or lessor thereof, in the licensed premises of
360		-	any such licensee or retailer.
361		-	(b) Except as provided by subsection (d), no manufacturer or,
362		-	distributor or microbrewery shall, directly or indirectly, or through a
363		-	subsidiary or affiliate or by any officer, director or firm of such
364		-	manufacturer or, distributor or microbrewery, furnish, give, lend or rent
365		-	any interior decorations or any signs, for inside or outside use, for use
366		-	in or about or in connection with the licensed premises of a licensee
367		-	under the club and drinking establishment act, or a retailer licensed
368		-	under the Kansas liquor control act or under K.S.A. 41-2702, and
369		-	amendments thereto, products of the manufacturer or, distributor or
370		-	microbrewery are sold.
371		-	(c) No manufacturer or, distributor or microbrewery shall directly
372		-	or indirectly pay for or advance, furnish or lend money for the payment
373		-	of any license of another under the club and drinking establishment act,
374		-	the Kansas liquor control act or K.S.A. 41-2702, and amendments
375		-	thereto.
376		-	(d) (1) A manufacturer or, distributor or microbrewery may
377		-	furnish things of value to a licensee under the club and drinking
378		-	establishment act or to a retailer licensed under the Kansas liquor
379		-	control act or under K.S.A. 41-2702, and amendments thereto, to the
380		-	extent permitted by rules and regulations adopted by the secretary
381		-	pursuant to subsection (e).
382		-	(2) Notwithstanding any other provision of law to the contrary, an
383		-	owner, officer, stockholder or director of a distributor may have an
384		-	interest in the licensed premises of a club, a drinking establishment or a
385		-	retailer licensed under the Kansas liquor control act or under K.S.A.
386		-	41-2702, and amendments thereto, if such premises are located outside Senate Substitute HOUSE BILL No. 2124—page 7
387		-	the geographic territory of the distributor's franchise.
388		-	(3) A microbrewery or owner, officer, stockholder or director
389		-	thereof may have an interest in a licensed club, drinking establishment
390		-	or caterer.
391		-	(e) The secretary shall adopt rules and regulations permitting
392		-	manufacturers and, distributors or microbreweries to furnish
393		-	equipment, signs, supplies or similar things of value to licensees under
394		-	the club and drinking establishment act or to a retailer licensed under
395		-	the Kansas liquor control act or under K.S.A. 41-2702, and
396		-	amendments thereto. Such rules and regulations shall limit the
397		-	furnishing of such things of value so that they are not conditioned on or
398		-	an inducement to the purchase of any alcoholic liquor or cereal malt
399		-	beverage. In adopting such rules and regulations, the secretary shall
400		-	consider and, to the extent the secretary determines suitable, base such
401		-	rules and regulations on the standards of the bureau of alcohol, tobacco
402		-	and firearms of the United States treasury.
403		-	Sec. 8. K.S.A. 41-706 is hereby amended to read as follows: 41-
404		-	706. No manufacturer, distributor, microbrewery or wholesaler shall
405		-	sell or deliver any package containing alcoholic liquor manufactured or
406		-	distributed by such manufacturer, distributor, microbrewery or
407		-	wholesaler, unless the package has affixed thereto all canceled revenue
408		-	stamps which that may be provided by federal law and shall also carry
409		-	thereon a clear and legible label containing the name and kind of
410		-	alcoholic liquor contained therein, and the alcoholic content thereof,
411		-	except in the case of beer, and such other information as may be
412		-	required by federal laws and rules and regulations and by rules and
413		-	regulations adopted by the secretary of revenue. No package shall be
414		-	delivered by any manufacturer or, distributor, microbrewery or
415		-	importing distributor unless the same shall be securely sealed so that
416		-	the contents thereof cannot be removed without breaking the seal so
417		-	placed thereon by such manufacturer, and no other licensee shall sell,
418		-	have in the possession of the licensee or use any package or container
419		-	which that does not comply with this section or K.S.A. 41-707, and
420		-	amendments thereto, or does not bear evidence that such package,
421		-	when delivered to the licensee, complied with this section.
422		-	Sec. 9. K.S.A. 41-708 is hereby amended to read as follows: 41-
423		-	708. No retailer licensed under this act shall purchase or receive
424		-	alcoholic liquor from any source except from a distributor, farm winery
425		-	or microbrewery licensed under this act and having a place of business
426		-	in this state, except that a licensed retailer may purchase confiscated
427		-	alcoholic liquor at a sheriff's sale. Any retail licensee who violates this
428		-	section is guilty of a misdemeanor, and upon conviction thereof shall be
429		-	punished by a fine of not less than $200, nor more than $1,000, to
430		-	which may be added imprisonment for not more than six months, and
431		-	the license of such licensee may be revoked as provided by law.
432		-	Sec. 10. K.S.A. 41-709 is hereby amended to read as follows: 41-
433		-	709. (a) No manufacturer or, distributor or microbrewery shall sell or
434		-	deliver any package containing alcoholic liquor manufactured or
435		-	distributed by such manufacturer or, distributor or microbrewery for
436		-	resale, unless the person to whom such package is sold or delivered is
437		-	authorized to receive such package in accordance with the provisions of
438		-	this act.
439		-	(b) The director shall revoke the license of any manufacturer or,
440		-	distributor or microbrewery who violates the provisions of this section.
441		-	Sec. 11. K.S.A. 41-728 is hereby amended to read as follows: 41-
442		-	728. (a) No distributor or microbrewery shall, directly or indirectly, sell
443		-	on credit any alcoholic liquor or cereal malt beverage to a club,
444		-	drinking establishment or caterer, and no club, drinking establishment
445		-	or caterer shall, directly or indirectly, buy on credit any alcoholic liquor
446		-	or cereal malt beverage from a distributor or microbrewery.
447		-	(b) Any sales of alcoholic liquor or cereal malt beverage by a
448		-	distributor or microbrewery to a club, drinking establishment, caterer or
449		-	retailer licensed under the Kansas liquor control act or under K.S.A.
450		-	41-2702, and amendments thereto, shall be separate transactions from Senate Substitute HOUSE BILL No. 2124—page 8
451		-	sales by such distributor or microbrewery to any other such club,
452		-	drinking establishment, caterer or retailer even if the licensee is the
453		-	same person or entity as the holder of the license for such other club,
454		-	drinking establishment, caterer or retailer.
455		-	(c) Except as otherwise provided by this section or K.S.A. 41-702,
456		-	41-703 and 41-2707, and amendments thereto, any financial
457		-	instrument, other than a second-party check, may be used by a club,
458		-	drinking establishment, caterer or retailer licensed under the Kansas
459		-	liquor control act or under K.S.A. 41-2702, and amendments thereto, to
460		-	purchase alcoholic liquor or cereal malt beverage from a distributor or
461		-	microbrewery and a distributor or microbrewery may accept any such
462		-	financial instrument as payment. In addition, a prepayment plan may be
463		-	used for the purpose of making such purchases if the amount prepaid
464		-	does not exceed the usual purchases made for the period of time for
465		-	which prepayment is made.
466		-	(d) Sales of alcoholic liquor by a distributor or microbrewery to
467		-	clubs, drinking establishments, caterers or retailers licensed under the
468		-	Kansas liquor control act or under K.S.A. 41-2702, and amendments
469		-	thereto, shall be final except that a distributor or microbrewery may:
470		-	(1) Buy back any item of alcoholic liquor or cereal malt beverage
471		-	which that such club, drinking establishment, caterer or retailer has
472		-	obtained the approval of the director to close out;
473		-	(2) buy back any item of alcoholic liquor or cereal malt beverage
474		-	when required by the supplier; and
475		-	(3) buy back or exchange, within 24 hours after delivery, any item
476		-	of alcoholic liquor or cereal malt beverage which that is damaged or
477		-	deteriorated in quality; and
478		-	(4) buy back or exchange, at the original sales price, any item of
479		-	beer or cereal malt beverage that is within 30 days of its expiration
480		-	date.
481		-	Sec. 12. K.S.A. 41-1101 is hereby amended to read as follows: 41-
482		-	1101. (a) No distributor licensed under this act shall purchase any
483		-	alcoholic liquor from any manufacturer, owner of alcoholic liquor at
484		-	the time it becomes a marketable product, exclusive agent of such
485		-	manufacturer or owner, microbrewery, microdistillery, farm winery or
486		-	distributor of alcoholic liquor bottled in a foreign country either within
487		-	or without this state, unless the manufacturer, owner, exclusive agent,
488		-	microbrewery, microdistillery, farm winery or distributor files with the
489		-	director a written statement sworn to by the manufacturer, owner,
490		-	exclusive agent, microbrewery, microdistillery, farm winery or
491		-	distributor or, in case of a corporation, one of its principal officers,
492		-	agreeing to sell any of the brands or kinds of alcoholic liquor
493		-	manufactured or distributed by the manufacturer, owner, exclusive
494		-	agent, microbrewery, microdistillery, farm winery or distributor to any
495		-	distributor licensed in this state and having a franchise to distribute the
496		-	alcoholic liquor pursuant to K.S.A. 41-410, and amendments thereto,
497		-	and to make such sales to all such licensed distributors in this state at
498		-	the same current price and without discrimination. Each manufacturer,
499		-	owner, exclusive agent, microbrewery, microdistillery or farm winery
500		-	shall provide to each distributor written notice not less than 45 days
501		-	before any change in the current price of any spirits or wine which that
502		-	such manufacturer, owner, exclusive agent, microbrewery,
503		-	microdistillery or farm winery sells to such distributor. If any
504		-	manufacturer, owner, exclusive agent, microbrewery, microdistillery,
505		-	farm winery or distributor making the agreement violates the agreement
506		-	by refusing to sell such alcoholic liquor to any such franchised licensed
507		-	distributor in this state or discriminates in current prices among such
508		-	franchised licensed distributors making or attempting to make
509		-	purchases of alcoholic liquor from the manufacturer, owner, exclusive
510		-	agent, microbrewery, microdistillery, farm winery or distributor, the
511		-	director shall notify, by registered mail, each such franchised licensed
512		-	distributor in this state of the violation. Thereupon, it shall be unlawful
513		-	for a franchised licensed distributor in this state to purchase any
514		-	alcoholic liquor from the manufacturer, owner, exclusive agent, Senate Substitute HOUSE BILL No. 2124—page 9
515		-	microbrewery, microdistillery, farm winery or distributor. If thereafter
516		-	such a franchised licensed distributor purchases any alcoholic liquor
517		-	from the manufacturer, owner, exclusive agent, microbrewery,
518		-	microdistillery, farm winery or distributor, such franchised distributor's
519		-	license shall be revoked by the director. If any manufacturer, owner,
520		-	exclusive agent, microbrewery, microdistillery, farm winery or
521		-	distributor of alcoholic liquor bottled in a foreign country, making any
522		-	agreement hereunder, does not have a sufficient supply of alcoholic
523		-	liquor of any of the brands or kinds which that the manufacturer,
524		-	owner, exclusive agent, microbrewery, microdistillery, farm winery or
525		-	distributor manufactures or distributes to supply the demands of all
526		-	licensed distributors having a franchise to distribute such alcoholic
527		-	liquor, the manufacturer, owner, exclusive agent, microbrewery,
528		-	microdistillery, farm winery or distributor may ration such alcoholic
529		-	liquor and apportion the available supply among such franchised
530		-	licensed distributors purchasing or attempting to purchase it, in
531		-	accordance with a plan which that shall be subject to the approval of
532		-	the director.
533		-	(b) No retailer licensed under this act shall purchase any alcoholic
534		-	liquor from any distributor or microbrewery licensed under this act
535		-	unless the distributor or microbrewery files with the director a written
536		-	statement sworn to by the distributor or microbrewery, or in case of a
537		-	corporation by one of its principal officers, agreeing to sell any of the
538		-	brands or kinds of alcoholic liquor distributed by the distributor or
539		-	microbrewery and to provide service in connection therewith to any
540		-	licensed retailer whose licensed premises are located within the
541		-	geographic territory of the distributor's franchise for the alcoholic
542		-	liquor or the microbrewery's geographic territory, unless written
543		-	approval to do otherwise is obtained from the director, and to make
544		-	such sales to all such licensed retailers at the same current bottle, sleeve
545		-	and case price and without discrimination. For purposes of this
546		-	subsection the "same current bottle, sleeve and case price" for spirits
547		-	and wine means a price effective for a specified period as designated by
548		-	the distributor or microbrewery on or before the first day of each
549		-	month. If any distributor or microbrewery making the agreement
550		-	violates the agreement by refusing to sell or provide service to any such
551		-	licensed retailer in this state without written approval of the director or
552		-	discriminates in current prices among such licensed retailers making or
553		-	attempting to make purchases of alcoholic liquor from the distributor
554		-	or microbrewery, the director may revoke the license of the distributor
555		-	or microbrewery. If any licensed distributor or microbrewery making
556		-	any agreement hereunder does not have a sufficient supply of alcoholic
557		-	liquor of any of the brands or kinds which that the distributor or
558		-	microbrewery distributes to supply the demands of all such licensed
559		-	retailers, the distributor or microbrewery may ration such alcoholic
560		-	liquor and apportion the available supply among such licensed retailers
561		-	purchasing or attempting to purchase the same, in accordance with a
562		-	plan which that shall be subject to the approval of the director.
563		-	(c) No club or drinking establishment licensed in this state shall
564		-	purchase any wine or beer from any distributor or microbrewery
565		-	licensed under this act unless the distributor or microbrewery files with
566		-	the director a written statement sworn to by the distributor or
567		-	microbrewery, or in case of a corporation by one of its principal
568		-	officers, agreeing to sell any of the brands or kinds of wine or beer
569		-	distributed by the distributor or microbrewery to those clubs and
570		-	drinking establishments to which the distributor or microbrewery is
571		-	authorized to sell such wine or beer and to which the distributor or
572		-	microbrewery desires to sell such wine or beer, unless written approval
573		-	to do otherwise is obtained from the director and to make such sales to
574		-	all such licensed clubs or drinking establishments at the same current
575		-	bottle and case price and without discrimination. If any distributor or
576		-	microbrewery making the agreement violates the agreement by refusing
577		-	to sell to any such licensed club or drinking establishment in this state
578		-	without written approval of the director or discriminates in current Senate Substitute HOUSE BILL No. 2124—page 10
579		-	prices among such licensed clubs or drinking establishments making or
580		-	attempting to make purchases of wine or beer from the distributor or
581		-	microbrewery, the director may revoke the license of the distributor or
582		-	microbrewery. If any licensed distributor or microbrewery making any
583		-	agreement hereunder does not have a sufficient supply of wine or beer
584		-	of any of the brands or kinds which that the distributor or
585		-	microbrewery distributes to supply the demands of all such licensed
586		-	clubs or drinking establishments, the distributor or microbrewery may
587		-	ration such wine or beer and apportion the available supply among such
588		-	licensed clubs or drinking establishments purchasing or attempting to
589		-	purchase the same, in accordance with a plan which that shall be
590		-	subject to the approval of the director.
591		-	For the purposes of this subsection, a delivery charge shall not be
592		-	considered a part of the price of wine or beer sold by a distributor or
593		-	microbrewery.
594		-	(d) No retailer licensed under K.S.A. 41-2701 et seq., and
595		-	amendments thereto, shall purchase any cereal malt beverage from any
596		-	distributor licensed under this act unless the distributor files with the
597		-	director a written statement sworn to by the distributor, or in case of a
598		-	corporation by one of its principal officers, agreeing to sell any of the
599		-	brands or kinds of cereal malt beverage distributed by the distributor to
600		-	those retailers to which the distributor is authorized to sell such cereal
601		-	malt beverage, unless written approval to do otherwise is obtained from
602		-	the director, and to make such sales to all such licensed retailers at the
603		-	same current price and without discrimination. If any distributor
604		-	making the agreement violates the agreement by refusing to sell to any
605		-	such licensed retailer in this state without written approval of the
606		-	director or discriminates in current prices among such licensed retailers
607		-	making or attempting to make purchases of cereal malt beverage from
608		-	the distributor, the director may revoke the license of the distributor. If
609		-	any licensed distributor making any agreement hereunder does not have
610		-	a sufficient supply of cereal malt beverage of any of the brands or kinds
611		-	which the distributor distributes to supply the demands of all such
612		-	licensed retailers, the distributor may ration such cereal malt beverage
613		-	and apportion the available supply among such licensed retailers
614		-	purchasing or attempting to purchase the same, in accordance with a
615		-	plan which shall be subject to the approval of the director.
616		-	(e) No distributor or microbrewery shall sell alcoholic liquor or
617		-	cereal malt beverage to a retailer licensed under the Kansas liquor
618		-	control act, to a club, drinking establishment or caterer licensed under
619		-	the club and drinking establishment act or to a retailer licensed under
620		-	K.S.A. 41-2702, and amendments thereto, at a discount for multiple
621		-	case lots.
622		-	Sec. 13. K.S.A. 2023 Supp. 41-1201 is hereby amended to read as
623		-	follows: 41-1201. (a) A temporary permit shall:
624		-	(1) Allow the permit holder to offer for sale, sell and serve
625		-	alcoholic liquor for consumption on licensed or unlicensed premises, or
626		-	on premises that are otherwise subject to a separate temporary permit,
627		-	that may be open to the public, subject to the terms of such permit. A
628		-	temporary permit shall also;
629		-	(2) authorize the permit holder to sell, in accordance with rules
630		-	and regulations adopted by the secretary, alcoholic liquor at a charitable
631		-	auction, or one or more limited issue porcelain containers containing
632		-	alcoholic liquor; and
633		-	(3) allow the permit holder to offer for sale, sell and serve
634		-	alcoholic liquor that is beer or hard cider manufactured by a
635		-	microbrewery licensee and purchased by the temporary permit holder
636		-	from such microbrewery licensee as provided by K.S.A. 41-308b, and
637		-	amendments thereto, for consumption on licensed or unlicensed
638		-	premises, or on premises that are otherwise subject to a separate
639		-	temporary permit, that may be open to the public, subject to the terms
640		-	of such permit.
641		-	(b) A temporary permit holder may charge a fee for entrance into
642		-	the premises described in the permit, or any portion thereof. Senate Substitute HOUSE BILL No. 2124—page 11
643		-	(c) The director may issue a temporary permit to any one or more
644		-	persons or organizations applying for such a permit, in accordance with
645		-	rules and regulations of the secretary. The permit shall be issued in the
646		-	names of the persons or organizations to which it is issued.
647		-	(d) (1) Applications for temporary permits shall be required to be
648		-	filed with the director not less than 14 days before the event for which
649		-	the permit is sought, unless the director waives such requirement for
650		-	good cause. The application shall be upon a form prescribed by the
651		-	director. Each application shall be electronically submitted and
652		-	accompanied by a non-refundable permit fee of $25 for each day for
653		-	which the permit is issued, and such fee shall be paid by a check or
654		-	credit card in the full amount thereof. All permit fees collected by the
655		-	director pursuant to this section shall be remitted to the state treasurer
656		-	in accordance with the provisions of K.S.A. 75-4215, and amendments
657		-	thereto. Upon receipt of each such remittance, the state treasurer shall
658		-	deposit the entire amount in the state treasury to the credit of the state
659		-	general fund.
660		-	(2) No city, county or township shall charge more than a $25 non-
661		-	refundable fee for each day for which the permit is issued.
662		-	(e) Each application for a temporary permit shall specify the
663		-	premises for which such permit is issued, including a diagram of the
664		-	premises covered by the temporary permit. The diagram shall clearly
665		-	show the boundaries of the premises, entrances to and exits from the
666		-	premises and the area in which the service of alcoholic liquor would
667		-	take place. A temporary permit shall be issued only for premises where
668		-	the city, county or township zoning code allows the use for which the
669		-	permit is issued. No temporary permit shall be issued for premises that
670		-	are not located in a county where the qualified electors of the county:
671		-	(1) (A) Approved, by a majority vote of those voting thereon, to
672		-	adopt the proposition amending section 10 of article 15 of the
673		-	constitution of the state of Kansas at the general election in November,
674		-	1986; or
675		-	(B) have approved a proposition to allow the sale of liquor by the
676		-	individual drink in public places within the county at an election
677		-	pursuant to K.S.A. 41-2646, and amendments thereto; and
678		-	(2) have not approved a proposition to prohibit such sales of
679		-	alcoholic liquor in such places at a subsequent election pursuant to
680		-	K.S.A. 41-2646, and amendments thereto.
681		-	(f) (1) (A) A temporary permit may be issued for the consumption
682		-	of alcoholic liquor on a city, county or township street, alley, road,
683		-	sidewalk or highway for an event if: (i) Such street, alley, road,
684		-	sidewalk or highway is closed to motor vehicle traffic by the governing
685		-	body of such city, county or township for such event; (ii) a written
686		-	request for such consumption and possession of such alcoholic liquor
687		-	has been made to the local governing body; and (iii) the event has been
688		-	approved by the governing body of such city, county or township by
689		-	ordinance or resolution.
690		-	(B) The boundaries of any such event shall be clearly marked by
691		-	signs, a posted map or other means that reasonably identify the area in
692		-	which alcoholic liquor may be possessed or consumed at such event.
693		-	(2) Drinking establishments that are immediately adjacent to, or
694		-	located within the licensed premises of an event, for which a temporary
695		-	permit has been issued and the consumption of alcoholic liquor on
696		-	public property has been approved, may request that the drinking
697		-	establishment's licensed premises be extended into and made a part of
698		-	the licensed premises of the event, for the duration of the temporary
699		-	permit issued for such event.
700		-	(3) Each licensee selling alcoholic liquor for consumption on the
701		-	premises of an event for which a temporary permit has been issued
702		-	shall be liable for violations of all laws governing the sale and
703		-	consumption of alcoholic liquor.
704		-	(4) Each temporary permit holder selling alcoholic liquor for
705		-	consumption on the permit premises shall be liable for all violations of
706		-	laws governing the sale and consumption of alcoholic liquor that occur Senate Substitute HOUSE BILL No. 2124—page 12
707		-	in areas covered by multiple temporary permits.
708		-	(g) (1) A temporary permit may be issued for the sale of wine,
709		-	beer or other alcoholic liquor on the Kansas state fairgrounds during the
710		-	days of the Kansas state fair, or as authorized by the Kansas state fair
711		-	board, if the Kansas state fair board has authorized such consumption
712		-	and possession of such wine, beer or other alcoholic liquor. Each
713		-	application for such temporary permit shall specify the premises within
714		-	the fairgrounds for which the permit is issued, including a diagram of
715		-	the premises covered by the temporary permit. Such diagram shall
716		-	match the entirety of the premises as leased from the Kansas state fair
717		-	board. The boundaries of the Kansas state fairgrounds shall be clearly
718		-	marked by signs, a posted map or other means that reasonably identify
719		-	the area in which wine, beer or other alcoholic liquor, may be possessed
720		-	or consumed at the state fair.
721		-	(2) Each temporary permit holder selling wine, beer or other
722		-	alcoholic liquor for consumption on the premises of the Kansas state
723		-	fairgrounds that is covered by such temporary permit shall be liable for
724		-	all violations of laws governing the sale and consumption of such
725		-	alcoholic liquor that occur on such temporary premises.
726		-	(3) Any temporary permit holder who has received a temporary
727		-	permit for the sale of wine, beer or other alcoholic liquor on the Kansas
728		-	state fairgrounds may allow such wine, beer or other alcoholic liquor to
729		-	be removed from the temporary permit premises and onto the Kansas
730		-	state fairgrounds.
731		-	(h) (1) Except as otherwise provided in this subsection, a
732		-	temporary permit shall be issued for a period of time not to exceed
733		-	three consecutive days, the dates and hours of which shall be specified
734		-	in the permit. An applicant may not be issued more than four temporary
735		-	permits in a calendar year.
736		-	(2) The director may issue a sufficient number of temporary
737		-	permits as required by the state fair board, valid for the entire period of
738		-	time of the Kansas state fair, which authorizes the sale of wine in its
739		-	original, unopened container and the serving by the drink of wine, beer
740		-	or other alcoholic liquor on the state fairgrounds on premises specified
741		-	in the temporary permit, by a person who has entered into an agreement
742		-	with the state fair board for that purpose subject to the conditions
743		-	imposed by the state fair board. Nothing in this paragraph shall be
744		-	construed to limit the number of temporary permits the director may
745		-	issue for the sale of wine, beer or other alcoholic liquor on the state
746		-	fairgrounds consistent with the requirements of the state fair board.
747		-	(3) For an event approved by the governing body of a city, county
748		-	or township pursuant to subsection (e)(1), the director may issue a
749		-	temporary permit, which may, at the director's discretion, be valid for
750		-	the entire period of such event, but in no event shall such permit be
751		-	issued for a period of time that exceeds 30 consecutive days.
752		-	(i) An application for a temporary permit may be rejected by the
753		-	director if:
754		-	(1) The applicant has been granted 12 permits in the current
755		-	calendar year;
756		-	(2) the application was not filed with the director at least 14 days
757		-	prior to the event;
758		-	(3) the applicant, or any officer, director, partner, registered agent,
759		-	trustee, manager or owner of the applicant has previously owned or
760		-	operated any entity holding a temporary permit, club, drinking
761		-	establishment or caterer's license, had such permit or license
762		-	surrendered, and at the time such permit or license was surrendered had
763		-	been ordered to appear and show cause why the permit or license
764		-	should not be revoked or suspended;
765		-	(4) the applicant has designated an area for an event that was the
766		-	subject of the order to appear and show cause as set forth in paragraph
767		-	(3), and it appears that the new application for a temporary permit
768		-	covering the premises is an attempt to avoid any possible remedial
769		-	action taken by the director against the former permit or license holder;
770		-	(5) the applicant has had a license or permit revoked under the Senate Substitute HOUSE BILL No. 2124—page 13
771		-	club and drinking establishment act, or has been convicted of a
772		-	violation of the Kansas liquor control act, the club and drinking
773		-	establishment act, the Kansas cereal malt beverage act or the provisions
774		-	of K.S.A. 79-41a01 et seq., and amendments thereto; or
775		-	(6) the applicant has not remitted all liquor drink taxes due from a
776		-	previous temporary permit.
777		-	(j) (1) A temporary permit holder may purchase and possess
778		-	alcoholic liquor for resale for a period of three days prior to the first
779		-	day of sale of such alcoholic liquor. A distributor may, without any
780		-	further permission from the director, deliver such alcoholic liquor to the
781		-	permit premises.
782		-	(2) If a licensee has sold alcoholic liquor to a temporary permit
783		-	holder, and a distributor directly delivers such alcoholic liquor to such
784		-	temporary permit holder, but such licensee's normal hours of operation
785		-	make immediate payment to the distributor impossible, the licensee
786		-	may pay the retailer and the retailer may pay the distributor for such
787		-	alcoholic liquor within 48 hours of the sale.
788		-	(3) Within three business days after the end of an event conducted
789		-	pursuant to a temporary permit, the temporary permit holder may sell
790		-	back to the retailer or, farm winery or microbrewery from whom
791		-	alcoholic liquor was purchased any alcoholic liquor sold to the
792		-	temporary permit holder for such event.
793		-	(4) Upon written permission from the director and after four
794		-	business days after the end of an event conducted pursuant to a
795		-	temporary permit, the temporary permit holder may sell back to the
796		-	licensee from whom alcoholic liquor was purchased any alcoholic
797		-	liquor sold to the temporary permit holder for such event.
798		-	(k) A temporary permit shall not be transferable or assignable.
799		-	(l) Each temporary permit holder shall not employ or use the
800		-	services of any person:
801		-	(1) Who is under 18 years of age to serve alcoholic liquor;
802		-	(2) who is under 21 years of age to mix or dispense drinks
803		-	containing alcoholic liquor;
804		-	(3) who is under 21 years of age and not supervised by the
805		-	temporary permit holder or an employee who is at least 21 years of age;
806		-	(4) who has been convicted of a felony or of any crime involving a
807		-	morals charge to dispense, mix or serve alcoholic liquor; or
808		-	(5) who has been convicted within the previous two years of a
809		-	violation of any intoxicating liquor law of this state, any other state or
810		-	the United States, to dispense, mix or serve alcoholic liquor.
811		-	Sec. 14. K.S.A. 41-1202 is hereby amended to read as follows: 41-
812		-	1202. (a) A temporary permit holder shall only purchase alcoholic
813		-	liquor or cereal malt beverage from a retailer or, a farm winery or a
814		-	microbrewery, as provided by K.S.A. 41-308b, and amendments
815		-	thereto, and may receive delivery of such alcoholic liquor or cereal
816		-	malt beverage from a distributor.
817		-	(b) Temporary permit holders shall only purchase alcoholic liquor
818		-	or cereal malt beverage from a retailer who possesses a federal
819		-	wholesaler's basic permit and who has a sign on display at the licensed
820		-	premises that states that the licensee is a "Wholesale Liquor Dealer
821		-	Under Federal Law." All alcoholic liquor or cereal malt beverage
822		-	purchased on any one day shall be removed from the licensed premises
823		-	of the retailer or, farm winery or microbrewery within 48 hours.
824		-	Temporary permit holders shall not warehouse any alcoholic liquor or
825		-	cereal malt beverage on the licensed premises of any retailer or, farm
826		-	winery or microbrewery for more than 48 hours.
827		-	(c) Each temporary permit holder, when purchasing alcoholic liquor
828		-	or cereal malt beverage from a retailer or, farm winery or
829		-	microbrewery, shall obtain and keep for at least one year from the date
830		-	of purchase a sales receipt that contains the following information:
831		-	(1) The date of purchase;
832		-	(2) the name and address of the retailer or, farm winery or
833		-	microbrewery;
834		-	(3) the name and address of the temporary permit holder as it Senate Substitute HOUSE BILL No. 2124—page 14
835		-	appears on the temporary permit;
836		-	(4) the brand, size, proof and amount of all alcoholic liquor or
837		-	cereal malt beverage purchased; and
838		-	(5) the subtotal of the cost of all alcoholic liquor or cereal malt
839		-	beverage purchased, and the total cost of such purchase, including
840		-	enforcement tax.
841		-	(d) Each temporary permit holder shall be responsible for all
842		-	violations of the club and drinking establishment act by the following
843		-	people while on the permit premises:
844		-	(1) An employee of the temporary permit holder, or of any person
845		-	contracting with the temporary permit holder to provide services or
846		-	food in connection with an event; or
847		-	(2) any individual dispensing, mixing or serving alcoholic liquor
848		-	or cereal malt beverage at an event.
849		-	(e) Except for a temporary permit holder who has obtained such
850		-	permit for the sale of alcoholic liquor at a charitable auction or for the
851		-	sale of one or more limited issue porcelain containers containing
852		-	alcoholic liquor, no temporary permit holder shall sell alcoholic liquor
853		-	or cereal malt beverage for removal from or consumption off the
854		-	licensed premises, except that alcoholic liquor or cereal malt beverage
855		-	may be removed to a drinking establishment that has extended its
856		-	premises into the event area in accordance with K.S.A. 41-2608, and
857		-	amendments thereto.
858		-	(f) The boundary of any premises covered by a temporary permit
859		-	shall be marked by a line of demarcation.
860		-	Sec. 15. K.S.A. 41-2642 is hereby amended to read as follows: 41-
861		-	2642. (a) A license for a drinking establishment shall allow the licensee
862		-	to offer for sale, sell and serve alcoholic liquor or cereal malt beverage
863		-	for consumption on the licensed premises which that may be open to
864		-	the public, and to serve samples of such alcoholic liquor or cereal malt
865		-	beverage free of charge on licensed premises subject to the
866		-	requirements of subsection (c), but only if such premises are located in
867		-	a county where the qualified electors of the county:
868		-	(1) (A) Approved, by a majority vote of those voting thereon, the
869		-	proposition to amend section 10 of article 15 of the constitution of the
870		-	state of Kansas at the general election in November 1986; or (B) have
871		-	approved a proposition to allow sales of alcoholic liquor by the
872		-	individual drink in public places within the county at an election
873		-	pursuant to K.S.A. 41-2646, and amendments thereto; and
874		-	(2) have not approved a proposition to prohibit such sales of
875		-	alcoholic liquor in such places at a subsequent election pursuant to
876		-	K.S.A. 41-2646, and amendments thereto.
877		-	(b) A drinking establishment shall be required to derive from sales
878		-	of food for consumption on the licensed premises not less than 30% of
879		-	all the establishment's gross receipts from sales of food and beverages
880		-	on such premises unless the licensed premises are located in a county
881		-	where the qualified electors of the county:
882		-	(1) Have approved, at an election pursuant to K.S.A. 41-2646, and
883		-	amendments thereto, a proposition to allow sales of alcoholic liquor by
884		-	the individual drink in public places within the county without a
885		-	requirement that any portion of their gross receipts be derived from the
886		-	sale of food; and
887		-	(2) have not approved a proposition to prohibit such sales of
888		-	alcoholic liquor in such places at a subsequent election pursuant to
889		-	K.S.A. 41-2646, and amendments thereto.
890		-	(c) No charge of any sort may be made for a sample serving.
891		-	Samples may not be served to a minor. No samples may be removed
892		-	from the licensed premises. Providing samples is prohibited for any
893		-	licensee who charges a cover charge or entry fee at any time during the
894		-	business day. No consideration shall be requested or required for entry
895		-	onto the premises, participation in any event taking place on the
896		-	premises or to remain on the premises.
897		-	(d) (1) A drinking establishment shall specify in the application
898		-	for a license or renewal of a license the premises to be licensed, which Senate Substitute HOUSE BILL No. 2124—page 15
899		-	may include all premises which are in close proximity and are under
900		-	the control of the applicant or licensee.
901		-	(2) If the drinking establishment licensee also holds a
902		-	manufacturer's license issued under the Kansas liquor control act, the
903		-	licensed premises specified in the drinking establishment license shall
904		-	not be the same as the licensed premises specified in the manufacturer's
905		-	license, but such specified premises shall be located not more than two
906		-	miles by the usually traveled road from the licensed premises specified
907		-	in the manufacturer's license.
908		-	(e) Notwithstanding any other provision of law to the contrary,
909		-	any hotel of which the entire premises are licensed as a drinking
910		-	establishment or as a drinking establishment caterer may sell alcoholic
911		-	liquor or cereal malt beverage by means of minibars located in guest
912		-	rooms of such hotel, subject to the following:
913		-	(1) The key, magnetic card or other device required to attain
914		-	access to a minibar in a guest room shall be provided only to guests
915		-	who are registered to stay in such room and who are 21 or more years
916		-	of age;
917		-	(2) containers or packages of spirits or wine sold by means of a
918		-	minibar shall hold not less than 50 nor more than 200 milliliters; and
919		-	(3) a minibar shall be restocked with alcoholic liquor or cereal
920		-	malt beverage only during hours when the hotel is permitted to sell
921		-	alcoholic liquor and cereal malt beverage as a drinking establishment.
922		-	(f) A drinking establishment may store on its premises wine sold
923		-	to a customer for consumption at a later date on its premises in the
924		-	unopened container. Such wine must be kept separate from all other
925		-	alcohol stock and in a secure locked area separated by customer. Such
926		-	wine shall not be removed from the licensed premises in its unopened
927		-	condition.
928		-	(g) If the drinking establishment licensee also holds a
929		-	manufacturer's license issued under the Kansas liquor control act, the
930		-	drinking establishment shall not sell alcoholic liquor manufactured by
931		-	such manufacturer's licensee to the exclusion of other alcoholic liquor.
932		-	All beer and cereal malt beverage sold by the drinking establishment
933		-	shall be acquired from a distributor or, retailer or microbrewery
934		-	licensed under the Kansas liquor control act, and all wine and spirits
935		-	sold by the drinking establishment shall be acquired from a retailer or
936		-	farm winery licensed under the Kansas liquor control act and who
937		-	possesses a federal wholesaler's basic permit, except that hard cider
938		-	may be acquired from a microbrewery licensed under the Kansas
939		-	liquor control act and who possesses a federal wholesaler's basic
940		-	permit. Senate Substitute HOUSE BILL No. 2124—page 16
941		-	Sec. 16. K.S.A. 41-308b, 41-410, 41-601, 41-701, 41-702, 41-703,
942		-	41-706, 41-708, 41-709, 41-728, 41-1101, 41-1202 and 41-2642 and
943		-	K.S.A. 2023 Supp. 41-1201 are hereby repealed.
944		-	Sec. 17. This act shall take effect and be in force from and after its
945		-	publication in the statute book.
946		-	I hereby certify that the above BILL originated in the HOUSE, and was
947		-	adopted by that body
948		-
949		-	HOUSE adopted
950		-	Conference Committee Report
951		-
952		-	Speaker of the House.
953		-
954		-	Chief Clerk of the House.
955		-	Passed the SENATE
956		-	as amended
957		-	SENATE adopted
958		-	Conference Committee Report
959		-
960		-	President of the Senate.
961		-
962		-	Secretary of the Senate.
963		-	APPROVED
964		-
965		-
966		-	Governor.
	117	+	(h) Cereal malt beverages may be sold on premises that are licensed
	118	+	pursuant to both the Kansas cereal malt beverage act and the club and
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	161	+	43 HB 2124 3
	162	+	drinking establishment act at any time when alcoholic liquor is allowed by
	163	+	law to be served on the premises.
	164	+	Sec. 2. K.S.A. 2022 Supp. 41-2704 is hereby repealed.
	165	+	Sec. 3. This act shall take effect and be in force from and after its
	166	+	publication in the Kansas register.
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