SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE SUBSTITUTE FOR
SENATE BILL NO. 116
As Recommended by House Committee on
Federal and State Affairs
Brief*
House Sub. for SB 116 would amend various provisions
of the Kansas Liquor Control Act (KLCA), Kansas Cereal Malt
Beverage (CMB) Act, and Club and Drinking Establishment
Act (CDEA) concerning remittance of gallonage taxes,
samples, Sunday sales, the food sales requirement, and
common consumption areas.
Remittance of Gallonage Taxes
The bill would amend provisions of the KLCA to require
gallonage taxes by holders of a special order shipping license
to be submitted to the Secretary of Revenue monthly rather
than quarterly as required in current law.
Product Samples
The bill would amend the KLCA provisions on the
licensing of spirits, wine, and CMB distributors concerning
samples of products provided to retailers and to club and
drinking establishment licensees.
Spirits
The bill would allow a sample of up to three liters of
distilled spirits to be provided to club and drinking
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org establishment licensees and employees of the establishment.
Continuing law allows samples to be provided to distributors,
retailers, and their employees.
Wine
The bill would allow a sample of up to three liters of any
brand of wine to be provided to a licensee. Continuing law
allows a sample to be provided to club and drinking
establishment licensees, distributors, retailers, and their
employees.
Beer
The bill would allow a sample of up to three gallons of
any brand of beer or CMB to be provided to a licensee.
Continuing law allows a sample to be provided to club and
drinking establishment licensees, distributors, retailers, and
their employees.
Sample Products
The bill would require such sample to be of a product
the licensee has not purchased from the distributor within the
previous 12 months.
Sunday Sales—Food Sales Requirement
The bill would amend the CMB Act’s provisions
concerning on-premises sales of CMB on Sunday to remove
the 30 percent food sales requirement for Sunday sales. In
continuing law, Sunday sales must have been authorized by
the county or city where the licensee is located. [Note: There
is no food sales requirement for other days of the week.]]
2- 116 Common Consumption Areas
The bill would amend the CDEA provisions related to
common consumption areas to remove the requirement that a
city or county require that the portions of common
consumption areas on public streets or roadways be blocked
from motorized traffic during events.
The bill would also require each common consumption
area to be marked by signs that are conspicuously posted,
identifying the boundaries of such area and in a size and
manner that provides notice to persons entering or leaving
the area.
Background
As referred to the House Committee on Federal and
State Affairs, SB 116 contained provisions relating to firearms
education in public schools. [Note: These provisions are
identical to the provisions in HB 2304 as passed by the
House.]
On March 16, 2023, the House Committee on Federal
and State Affairs recommended a substitute for SB 116
incorporating the contents of HB 2058, HB 2059 (as amended
by the House Committee on Federal and State Affairs), HB
2124, and HB 2170 (as amended by the House Committee
on Federal and State Affairs).
HB 2058 (Gallonage Taxes)
The bill was introduced by the House Committee on
Federal and State Affairs at the request of a representative
from the Wine & Spirits Wholesalers Association.
3- 116 House Committee on Federal and State Affairs
In the House Committee hearing on HB 2058,
proponent testimony was provided by representatives from
the Wine & Spirits Wholesalers Association and the Kansas
Department of Revenue, Division of Alcoholic Beverage
Control (ABC). The proponents indicated that the bill would
allow the ABC to match reports to identify unlawful shipments
of alcoholic liquor. They indicated currently, common carriers
and fulfillment houses report monthly, while special order
shippers report monthly, which results in a delay in matching
shipment orders, thereby resulting in a delay in determining
which shipments may be from unlicensed entities.
No other testimony was provided.
HB 2059 (Common Consumption Areas)
HB 2059 was introduce by the House Committee on
Federal and State Affairs at the request of a representative of
the City of Topeka.
House Committee on Federal and State Affairs
During the House Committee hearing, Representative
Blew and representatives of the City of Topeka, Kansas
League of Municipalities, Kansas Restaurant and Hospitality
Association, and the NOTO Arts and Entertainment District
provided proponent testimony stating the bill would help
cities designate larger and more open areas for events with
common consumption area permits and to attract additional
patrons.
Neutral testimony was provided by a representative of
the ABC, who stated the agency has some public safety
concerns and would prefer additional language be added
concerning liability.
4- 116 No other testimony was provided.
On February 7, 2023, the House Committee amended
HB 2059 to replace proposed language allowing the use of
appropriate signage for marking a common consumption area
with language specifying common consumption area signage
be in a size and manner that provides notice to patrons of the
boundaries.
HB 2124 (Sunday Sales—Food Sales Requirement)
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of Representative Blew.
House Committee on Federal and State Affairs
In the House Committee hearing, Representative Blew
and a representative of the Kansas Beer Wholesalers
Association provided proponent testimony, stating the bill
would help businesses with only a CMB license to sell such
products by-the-drink on Sundays in a county with a food
sales requirement.
No other testimony was provided.
HB 2170 (Samples)
HB 2170 was introduced by the House Committee on
Federal and State Affairs at the request of Representative
Will Carpenter.
House Committee on Federal and State Affairs
In the House Committee hearing, proponent testimony
was provided by representatives of the Kansas Association of
Beverage Retailers, Kansas Beer Wholesalers Association,
5- 116 and Kansas Wine & Spirits Wholesalers Association. The
proponents indicated the bill would conform Kansas law to
Federal Tax and Trade Bureau rules in regards to sampling
among industry members. One of the proponents
recommended an amendment to the bill, requesting HB 2170
become effective upon publication in the Kansas Register.
Neutral testimony was provided by a representative of
the ABC, who stated that if HB 2170 is enacted, ABC would
begin the process of revoking the portion of the regulation
that conflicts with the new law.
No other testimony was provided.
Fiscal Information
HB 2058
According to the fiscal note prepared by the Division of
the Budget on HB 2058, the Department of Revenue
indicates the enactment of this bill would have no fiscal effect
on the amount of liquor gallonage tax collections. The
Department indicates the bill would require $5,000 from the
State General Fund in FY 2024 for additional technology
expenditures, but if the combined effect of implementation of
the bill and other enacted legislation exceeds the
Department’s programming, or if the time for implementation
of changes is too short, expenditures for outside contract
programmer services beyond the Department’s current
budget may be required. Any fiscal effect associated with the
bill is not reflected in The FY 2024 Governor’s Budget Report.
HB 2059
According to the fiscal note prepared by the Division of
the Budget on HB 2059, as introduced, the Kansas
Association of Counties indicates enactment of the bill could
increase revenues to counties from additional application
6- 116 fees, provided that enforcement costs would not exceed new
revenues.
The League of Kansas Municipalities indicates
enactment of HB 2059 would have no fiscal effect.
HB 2124
According to the fiscal note prepared by the Division of
the Budget on HB 2124, the Department of Revenue
indicates enactment of the bill would require the handbook for
CMB retailers to be updated and any fiscal effect would be
negligible.
The Kansas Association of Counties indicates
enactment of HB 2124 would allow Sunday alcohol sales for
more licensed entities which would increase revenues to
counties from licensure fees and sales tax revenues;
however, a fiscal effect cannot be estimated.
HB 2170
According to the fiscal note prepared by the Division of
the Budget on HB 2170, as introduced, the Department of
Revenue indicates enactment of the bill would have no fiscal
effect.
Sample; alcohol; wine; cereal malt beverage; Kansas Cereal Malt Beverage Act;
CMB; spirits; beer; drinking establishment; distributor; remittance; gallonage; tax;
special order shipper; common consumption area; roadway; Sunday sales; food
sales requirement.
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