KS
Kansas House Bill HB2838

Kansas 2023-2024 Regular Session

Kansas House Bill HB2838 Compare Versions

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11 Session of 2024
22 HOUSE BILL No. 2838
33 By Committee on Federal and State Affairs
44 Requested by Representative Thomas
55 3-13
66 AN ACT concerning alcoholic beverages; relating to eligibility for
77 licensure under the Kansas liquor control act and the club and drinking
88 establishment act; authorizing the director to issue licenses to convicted
99 felons when such conviction occurred more than 10 years prior to
1010 application for a license and a determination of sufficient rehabilitation
1111 is made; amending K.S.A. 41-2623 and K.S.A. 2023 Supp. 41-311 and
1212 repealing the existing sections.
1313 Be it enacted by the Legislature of the State of Kansas:
1414 Section 1. K.S.A. 2023 Supp. 41-311 is hereby amended to read as
1515 follows: 41-311. (a) No license of any kind shall be issued pursuant to the
1616 liquor control act to a person:
1717 (1) Who is not a citizen of the United States;
1818 (2) who has been convicted of a felony under the laws of this state,
1919 any other state or the United States, except as provided in subsection (h);
2020 (3) who has had a license revoked for cause under the provisions of
2121 the liquor control act, the beer and cereal malt beverage keg registration
2222 act or who has had any license issued under the cereal malt beverage laws
2323 of any state revoked for cause except that a license may be issued to a
2424 person whose license was revoked for the conviction of a misdemeanor at
2525 any time after the lapse of 10 years following the date of the revocation;
2626 (4) who has been convicted of being the keeper or is keeping any
2727 property, whether real or personal, where sexual relations are being sold or
2828 offered for sale by a person who is 18 years of age or older or has forfeited
2929 bond to appear in court to answer charges of being a keeper of any
3030 property, whether real or personal, where sexual relations are being sold or
3131 offered for sale by a person who is 18 years of age or older;
3232 (5) who has been convicted of being a proprietor of a gambling
3333 house, pandering or any other crime opposed to decency and morality or
3434 has forfeited bond to appear in court to answer charges for any of those
3535 crimes;
3636 (6) who is not at least 21 years of age;
3737 (7) who, other than as a member of the governing body of a city or
3838 county, appoints or supervises any law enforcement officer, who is a law
3939 enforcement official or who is an employee of the director;
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7575 (8) who intends to carry on the business authorized by the license as
7676 agent of another;
7777 (9) who at the time of application for renewal of any license issued
7878 under this act would not be eligible for the license upon a first application,
7979 except as provided by subsection (a)(12);
8080 (10) who is the holder of a valid and existing license issued under
8181 article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments
8282 thereto, unless the person agrees to and does surrender the license to the
8383 officer issuing the same upon the issuance to the person of a license under
8484 this act, except such person may be issued a farm winery license pursuant
8585 to K.S.A. 41-316, and amendments thereto, or a producer license pursuant
8686 to K.S.A. 41-355, and amendments thereto, and a retailer licensed pursuant
8787 to K.S.A. 41-2702, and amendments thereto, shall be eligible to receive a
8888 retailer's license under the Kansas liquor control act;
8989 (11) who does not own the premises for which a license is sought, or
9090 does not, at the time of application, have a written lease thereon;
9191 (12) whose spouse would be ineligible to receive a license under this
9292 act for any reason other than citizenship requirements or age, except that
9393 this paragraph shall not apply in determining eligibility for a renewal
9494 license or to a person whose spouse is a law enforcement officer;
9595 (13) whose spouse has been convicted of a felony or other crime that
9696 would disqualify a person from licensure under this section and such
9797 felony or other crime was committed during the time that the spouse held a
9898 license under this act;
9999 (14) who does not provide any data or information required by
100100 K.S.A. 41-311b, and amendments thereto; or
101101 (15) who, after a hearing before the director, has been found to have
102102 held an undisclosed beneficial interest in any license issued pursuant to the
103103 liquor control act that was obtained by means of fraud or any false
104104 statement made on the application for such license.
105105 (b) No retailer's license shall be issued to:
106106 (1) A person who has a beneficial interest in a manufacturer,
107107 distributor, farm winery or microbrewery licensed under this act, except
108108 that the spouse of an applicant for a retailer's license may own and hold a
109109 farm winery license, microbrewery license, or both, if the spouse does not
110110 hold a retailer's license issued under this act;
111111 (2) a person who has a beneficial interest in any other retail
112112 establishment licensed under this act, except that the spouse of a licensee
113113 may own and hold a retailer's license for another retail establishment;
114114 (3) a copartnership, unless all of the copartners are qualified to obtain
115115 a license;
116116 (4) a corporation; or
117117 (5) a trust, if any grantor, beneficiary or trustee would be ineligible to
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161161 receive a license under this act for any reason, except that the provisions of
162162 subsection (a)(6) shall not apply in determining whether a beneficiary
163163 would be eligible for a license.
164164 (c) No manufacturer's license shall be issued to:
165165 (1) A corporation, if any officer or director thereof, or any
166166 stockholder owning in the aggregate more than 25% of the stock of the
167167 corporation would be ineligible to receive a manufacturer's license for any
168168 reason other than citizenship requirements;
169169 (2) a copartnership, unless all of the copartners would be individually
170170 eligible to receive a manufacturer's license under this act;
171171 (3) a trust, if any grantor, beneficiary or trustee would be ineligible to
172172 receive a license under this act for any reason, except that the provisions of
173173 subsection (a)(6) shall not apply in determining whether a beneficiary
174174 would be eligible for a license; or
175175 (4) a person who has a beneficial interest in a distributor, retailer,
176176 farm winery or microbrewery licensed under this act, except as provided in
177177 K.S.A. 41-305, and amendments thereto.
178178 (d) No distributor's license shall be issued to:
179179 (1) A corporation, if any officer, director or stockholder of the
180180 corporation would be ineligible to receive a distributor's license for any
181181 reason. It shall be unlawful for any stockholder of a corporation licensed
182182 as a distributor to transfer any stock in the corporation to any person who
183183 would be ineligible to receive a distributor's license for any reason, and
184184 any such transfer shall be null and void, except that: (A) If any stockholder
185185 owning stock in the corporation dies and an heir or devisee to whom stock
186186 of the corporation descends by descent and distribution or by will is
187187 ineligible to receive a distributor's license, the legal representatives of the
188188 deceased stockholder's estate and the ineligible heir or devisee shall have
189189 14 months from the date of the death of the stockholder within which to
190190 sell the stock to a person eligible to receive a distributor's license, any such
191191 sale by a legal representative to be made in accordance with the provisions
192192 of the probate code; or (B) if the stock in any such corporation is the
193193 subject of any trust and any trustee or beneficiary of the trust who is 21
194194 years of age or older is ineligible to receive a distributor's license, the
195195 trustee, within 14 months after the effective date of the trust, shall sell the
196196 stock to a person eligible to receive a distributor's license and hold and
197197 disburse the proceeds in accordance with the terms of the trust. If any legal
198198 representatives, heirs, devisees or trustees fail, refuse or neglect to sell any
199199 stock as required by this subsection, the stock shall revert to and become
200200 the property of the corporation, and the corporation shall pay to the legal
201201 representatives, heirs, devisees or trustees the book value of the stock.
202202 During the period of 14 months prescribed by this subsection, the
203203 corporation shall not be denied a distributor's license or have its
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247247 distributor's license revoked if the corporation meets all of the other
248248 requirements necessary to have a distributor's license;
249249 (2) a copartnership, unless all of the copartners are eligible to receive
250250 a distributor's license;
251251 (3) a trust, if any grantor, beneficiary or trustee would be ineligible to
252252 receive a license under this act for any reason, except that the provisions of
253253 subsection (a)(6) shall not apply in determining whether a beneficiary
254254 would be eligible for a license; or
255255 (4) a person who has a beneficial interest in a manufacturer, retailer,
256256 farm winery or microbrewery licensed under this act.
257257 (e) No nonbeverage user's license shall be issued to a corporation, if
258258 any officer, manager or director of the corporation or any stockholder
259259 owning in the aggregate more than 25% of the stock of the corporation
260260 would be ineligible to receive a nonbeverage user's license for any reason
261261 other than citizenship and residence requirements.
262262 (f) No microbrewery license, microdistillery license or farm winery
263263 license shall be issued to a:
264264 (1) Person who has a beneficial interest in a manufacturer or
265265 distributor licensed under this act, except as provided in K.S.A. 41-305,
266266 and amendments thereto;
267267 (2) person, copartnership or association that has a beneficial interest
268268 in any retailer licensed under this act or under K.S.A. 41-2702, and
269269 amendments thereto, except that the spouse of an applicant for a
270270 microbrewery or farm winery license may own and hold a retailer's license
271271 if the spouse does not hold a microbrewery or farm winery license issued
272272 under this act;
273273 (3) copartnership, unless all of the copartners are qualified to obtain a
274274 license;
275275 (4) corporation, unless stockholders owning in the aggregate 50% or
276276 more of the stock of the corporation would be eligible to receive such
277277 license and all other stockholders would be eligible to receive such license
278278 except for reason of citizenship or residency; or
279279 (5) a trust, if any grantor, beneficiary or trustee would be ineligible to
280280 receive a license under this act for any reason, except that the provisions of
281281 subsection (a)(6) shall not apply in determining whether a beneficiary
282282 would be eligible for a license.
283283 (g) If the applicant is not a Kansas resident, no license shall be issued
284284 until the applicant has appointed a citizen of the United States who is a
285285 resident of Kansas as the applicant's agent and filed with the director a
286286 duly authenticated copy of a duly executed power of attorney, authorizing
287287 the agent to accept service of process from the director and the courts of
288288 this state and to exercise full authority, control and responsibility for the
289289 conduct of all business and transactions within the state relative to
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333333 alcoholic liquor and the business licensed. The agent must be satisfactory
334334 to and approved by the director, except that the director shall not approve
335335 as an agent any person who:
336336 (1) Has been convicted of a felony under the laws of this state, any
337337 other state or the United States;
338338 (2) has had a license issued under the alcoholic liquor or cereal malt
339339 beverage laws of this or any other state revoked for cause, except that a
340340 person may be appointed as an agent if the person's license was revoked
341341 for the conviction of a misdemeanor and 10 years have lapsed since the
342342 date of the revocation;
343343 (3) has been convicted of being the keeper or is keeping any property,
344344 whether real or personal, where sexual relations are being sold or offered
345345 for sale by a person who is 18 years of age or older or has forfeited bond to
346346 appear in court to answer charges of being a keeper of any property,
347347 whether real or personal, where sexual relations are being sold or offered
348348 for sale by a person who is 18 years of age or older;
349349 (4) has been convicted of being a proprietor of a gambling house,
350350 pandering or any other crime opposed to decency and morality or has
351351 forfeited bond to appear in court to answer charges for any of those
352352 crimes; or
353353 (5) is less than 21 years of age.
354354 (h) The director may issue a license to a person who has been
355355 convicted of a felony under the laws of this state, any other state or the
356356 United States if:
357357 (1) The date of such conviction is more than 10 years prior to the
358358 date the application for a license is submitted; and
359359 (2) the director determines that the applicant has demonstrated that
360360 such person has been sufficiently rehabilitated to merit the public trust.
361361 Sec. 2. K.S.A. 41-2623 is hereby amended to read as follows: 41-
362362 2623. (a) No license shall be issued under the provisions of this act to:
363363 (1) Any person described in K.S.A. 41-311(a)(1), (2), (4), (5), (6),
364364 (7), (8), (9), (12), (13) or (15), and amendments thereto, except that:
365365 (A) The provisions of K.S.A. 41-311(a)(2), and amendments thereto,
366366 shall not apply if the director determines that a license may be issued
367367 pursuant to the provisions of K.S.A. 41-311(h), and amendments thereto;
368368 and
369369 (B) the provisions of K.S.A. 41-311(a)(7), and amendments thereto,
370370 shall not apply to nor prohibit the issuance of a license for a class A club to
371371 an officer of a post home of a congressionally chartered service or fraternal
372372 organization, or a benevolent association or society thereof.
373373 (2) A person who has had the person's license revoked for cause
374374 under the provisions of this act.
375375 (3) A person who has a beneficial interest in the manufacture,
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419419 preparation or wholesaling or the retail sale of alcoholic liquor or cereal
420420 malt beverage or a beneficial interest in any other club, drinking
421421 establishment or caterer licensed hereunder, except that:
422422 (A) A license for premises located in a hotel may be granted to a
423423 person who has a beneficial interest in one or more other clubs or drinking
424424 establishments licensed hereunder if such other clubs or establishments are
425425 located in hotels.
426426 (B) A license for a club or drinking establishment that is a restaurant
427427 may be issued to a person who has a beneficial interest in other clubs or
428428 drinking establishments that are restaurants.
429429 (C) A caterer's license may be issued to a person who has a beneficial
430430 interest in a club or drinking establishment and a license for a club or
431431 drinking establishment may be issued to a person who has a beneficial
432432 interest in a caterer.
433433 (D) A license for a class A club may be granted to an organization of
434434 which an officer, director or board member is a distributor or retailer
435435 licensed under the liquor control act if such distributor or retailer sells no
436436 alcoholic liquor to such club.
437437 (E) Any person who has a beneficial interest in a microbrewery,
438438 microdistillery or farm winery licensed pursuant to the Kansas liquor
439439 control act may be issued any or all of the following: (1) Class B club
440440 license; (2) drinking establishment license; and (3) caterer's license.
441441 (F) Any person who has a beneficial interest in a manufacturer
442442 licensed pursuant to the Kansas liquor control act may be issued one
443443 drinking establishment license.
444444 (4) A copartnership, unless all of the copartners are qualified to
445445 obtain a license.
446446 (5) A corporation, if any officer, manager or director thereof, or any
447447 stockholder owning in the aggregate more than 5% of the common or
448448 preferred stock of such corporation would be ineligible to receive a license
449449 hereunder for any reason other than citizenship requirements.
450450 (6) A corporation, if any officer, manager or director thereof, or any
451451 stockholder owning in the aggregate more than 5% of the common or
452452 preferred stock of such corporation, has been an officer, manager or
453453 director, or a stockholder owning in the aggregate more than 5% of the
454454 common or preferred stock, of a corporation that:
455455 (A) Has had a license revoked under the provisions of the club and
456456 drinking establishment act; or
457457 (B) has been convicted of a violation of the club and drinking
458458 establishment act or the cereal malt beverage laws of this state.
459459 (7) A trust, if any grantor, beneficiary or trustee would be ineligible to
460460 receive a license under this act for any reason, except that the provisions of
461461 K.S.A. 41-311(a)(6), and amendments thereto, shall not apply in
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505505 determining whether a beneficiary would be eligible for a license.
506506 (b) No club or drinking establishment license shall be issued under
507507 the provisions of the club and drinking establishment act to a person who
508508 does not own the premises for which a license is sought, or does not, at the
509509 time the application is submitted, have a written lease thereon, except that
510510 an applicant seeking a license for a premises that is owned by a city or
511511 county, or is a stadium, arena, convention center, theater, museum,
512512 amphitheater or other similar premises may submit an executed agreement
513513 to provide alcoholic beverage services at the premises listed in the
514514 application in lieu of a lease.
515515 Sec. 3. K.S.A. 41-2623 and K.S.A. 2023 Supp. 41-311 are hereby
516516 repealed.
517517 Sec. 4. This act shall take effect and be in force from and after its
518518 publication in the statute book.
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