Kansas 2023-2024 Regular Session

Kansas Senate Bill SB251 Latest Draft

Bill / Introduced Version Filed 02/14/2023

                            Session of 2023
SENATE BILL No. 251
By Committee on Federal and State Affairs
2-14
AN ACT concerning alcoholic beverages; relating to spirits distributors, 
wine distributors and cereal malt beverage distributors; regulating 
samples; amending K.S.A. 41-306, 41-306a and 41-307 and repealing 
the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 41-306 is hereby amended to read as follows: 41-
306. A spirits distributor's license, shall allow:
(a) The wholesale purchase, importation and storage of spirits, but all 
such spirits so purchased or imported which are manufactured in the 
United States shall be purchased from the primary American source of 
supply or from another licensed spirits distributor, except that a licensed 
spirits distributor may purchase confiscated spirits at a sheriff's sale.
(b) The sale of spirits to:
(1) Spirits distributors licensed in this state;
(2) retailers licensed in this state, except that such distributor shall 
sell a brand of spirits only to those retailers whose licensed premises are 
located in the geographic territory within which such distributor is 
authorized to sell such brand, as designated in the notice or notices filed 
with the director pursuant to K.S.A. 41-410, and amendments thereto; and
(3) such persons located outside such territory or outside this state as 
permitted by law.
(c) The purchase of spirits in barrels, casks or other bulk containers 
and the bottling thereof before resale, but all bottles or containers filled 
with such spirits shall be sealed, labeled and otherwise made to comply 
with all laws and rules and regulations governing the preparation and 
bottling of spirits by manufacturers and with all federal rules, regulations 
and laws.
(d) The storage and delivery to a retailer licensed under the Kansas 
liquor control act or a retailer licensed under K.S.A. 41-2702, and 
amendments thereto, on the distributor's licensed premises, of alcoholic 
liquor or cereal malt beverage of another licensed distributor authorized by 
law to sell such alcoholic liquor or cereal malt beverage to such retailer, in 
accordance with an agreement entered into with such other distributor and 
approved by the director.
(e) The storage and delivery to a public venue licensed under the club 
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and drinking establishment act of alcoholic liquor purchased by the public 
venue licensee from a retailer authorized by law to sell such alcoholic 
liquor to such public venue licensee.
(f) The withdrawal of spirits from such licensee's inventory for use as 
samples in the course of the business of the distributor or at industry 
seminars. Samples may only be provided to persons licensed as a 
distributor or a retailer under the Kansas liquor control act, and such 
person's employees or to persons licensed under the club and drinking 
establishment act and such persons' employees. Samples may be served on 
the licensed premises of the licensee, or on the premises of a licensed 
retailer, provided except that no sample shall be served on that portion of 
the premises of a licensed retailer that is open to the public and where 
sales of alcoholic liquor at retail are made. Only products that have not 
been purchased from the distributor licensee by the retailer or club and 
drinking establishment act licensee within the previous 12 months may be 
provided for sampling pursuant to this subsection. No sample shall be 
provided to any minor. Nothing in this subsection shall be construed to 
permit the licensee to sell any alcoholic liquor for consumption on the 
premises. The withdrawal of spirits shall be subject to the tax imposed by 
K.S.A. 79-4101 et seq., and amendments thereto, based on the applicable 
current posted bottle or case price. For purposes of providing samples 
pursuant to this subsection other than at industry seminars or to the 
licensee's employees, the term "sample" shall have the same meaning as 
that term is defined in K.S.A. 41-2601, and amendments thereto this 
subsection, "sample" means not more than three liters of distilled spirits.
Sec. 2. K.S.A. 41-306a is hereby amended to read as follows: 41-
306a. A wine distributor's license shall allow:
(a) The wholesale purchase, importation and storage of wine, but all 
wine so purchased or imported which is manufactured in the United States 
shall be purchased from the primary American source of supply or from 
another licensed wine distributor, except that a licensed wine distributor 
may purchase confiscated wine at a sheriff's sale.
(b) The sale of wine to:
(1) Wine distributors licensed in this state;
(2) retailers licensed in this state, except that such distributor shall 
sell a brand of wine only to those retailers whose licensed premises are 
located in the geographic territory within which such distributor is 
authorized to sell such brand, as designated in the notice or notices filed 
with the director pursuant to K.S.A. 41-410, and amendments thereto; and
(3) such persons located outside such territory or outside this state as 
permitted by law.
(c) The sale of wine, but only in barrels, casks and other bulk 
containers, to:
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(1) Licensed caterers; and
(2) public venues, clubs and drinking establishments licensed in this 
state, except that such distributor shall sell a brand of wine only to such 
public venues, clubs and drinking establishments the licensed premises of 
which are located in the geographic territory within which such distributor 
is authorized to sell such brand, as designated in the notice or notices filed 
with the director pursuant to K.S.A. 41-410, and amendments thereto.
(d) The purchase of wine in barrels, casks or other bulk containers 
and the bottling thereof before resale, but all bottles or containers filled 
with such wine shall be sealed, labeled and otherwise made to comply with 
all laws and rules and regulations governing the preparation and bottling of 
wine by manufacturers and with all federal rules, regulations and laws.
(e) The storage and delivery to a retailer licensed under the Kansas 
liquor control act or a retailer licensed under K.S.A. 41-2702, and 
amendments thereto, on the distributor's licensed premises, of alcoholic 
liquor or cereal malt beverage of another licensed distributor authorized by 
law to sell such alcoholic liquor or cereal malt beverage to such retailer, in 
accordance with an agreement entered into with such other distributor and 
approved by the director.
(f) The withdrawal of wine from such licensee's inventory for use as 
samples in the course of the business of the distributor or at industry 
seminars. Samples may only be provided to persons licensed as a 
distributor or a retailer under the Kansas liquor control act, and such 
person's employees, or to persons licensed under the club and drinking 
establishment act, and such person's employees. Samples may be served 
on the licensed premises of the licensee, or on the premises of a licensed 
retailer, provided no sample shall be served on that portion of the premises 
of a licensed retailer that is open to the public and where sales of alcoholic 
liquor at retail are made. Samples may be served on the premises of a 
licensee holding a license issued under the club and drinking establishment 
act, provided no sample shall be served on that portion of the premises that 
is open to the public and where sales of alcoholic liquor are made. Only 
products that have not been purchased from the distributor licensee by the 
retailer or club and drinking establishment licensee within the previous 12 
months may be provided for sampling pursuant to this subsection. No 
sample shall be provided to any minor. Nothing in this subsection shall be 
construed to permit the licensee to sell any alcoholic liquor for 
consumption on the premises. The withdrawal of wine shall be subject to 
the tax imposed by K.S.A. 79-4101 et seq., and amendments thereto, based 
on the applicable current posted bottle or case price. For purposes of 
providing samples pursuant to this subsection other than at industry 
seminars or to the licensee's employees, the term of this subsection, 
"sample" shall have the same meaning as that term is defined in K.S.A. 41-
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2601, and amendments thereto means not more than three liters of any 
brand of wine.
(g) This section shall be a part of and supplemental to the Kansas 
liquor control act.
Sec. 3. K.S.A. 41-307 is hereby amended to read as follows: 41-307. 
A beer distributor's license shall allow:
(a) The wholesale purchase, importation and storage of beer.
(b) The sale of beer to:
(1) Licensed caterers;
(2) beer distributors licensed in this state;
(3) retailers, public venues, clubs and drinking establishments, 
licensed in this state, except that such distributor shall sell a brand of beer 
only to those retailers, public venues, clubs and drinking establishments of 
which the licensed premises are located in the geographic territory within 
which such distributor is authorized to sell such brand, as designated in the 
notice or notices filed with the director pursuant to K.S.A. 41-410, and 
amendments thereto; and
(4) such persons located outside such territory or outside this state as 
permitted by law.
(c) The sale of cereal malt beverage to:
(1) Beer distributors licensed in this state;
(2) clubs and drinking establishments, licensed in this state, and 
retailers licensed under K.S.A. 41-2702, and amendments thereto, except 
that such distributor shall sell a brand of cereal malt beverage only to those 
such clubs, drinking establishments and retailers of which the licensed 
premises are located in the geographic territory within which such 
distributor is authorized to sell such brand, as designated in the notice or 
notices filed with the director pursuant to K.S.A. 41-410, and amendments 
thereto;
(3) retailers; and
(4) such persons located outside such territory or outside this state as 
permitted by law.
(d) The sale of beer containing not more than 6% alcohol by volume 
to cereal malt beverage retailers licensed pursuant to K.S.A. 41-2702, and 
amendments thereto.
(e) The purchase of cereal malt beverage in kegs or other bulk 
containers and the bottling or canning thereof in accordance with law.
(f) The storage and delivery to a retailer licensed under the Kansas 
liquor control act or a retailer licensed under K.S.A. 41-2702, and 
amendments thereto, on the distributor's licensed premises, of alcoholic 
liquor or cereal malt beverage of another licensed distributor authorized by 
law to sell such alcoholic liquor or cereal malt beverage to such retailer, in 
accordance with an agreement entered into with such other distributor and 
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approved by the director.
(g) The storage and delivery, with proper invoicing in accordance 
with rules and regulations adopted by the secretary, on the premises of a 
public venue licensee, of beer sold to or available for purchase by the 
public venue during an event.
(h) The withdrawal of beer or cereal malt beverage from such 
licensee's inventory for use as samples in the course of the business of the 
distributor or at industry seminars. Samples may only be provided to 
persons licensed as a distributor or a retailer under the Kansas liquor 
control act, and such person's employees, or to persons licensed under the 
club and drinking establishment act, and such person's employees. 
Samples may be served on the licensed premises of the licensee, or on the 
premises of a licensed retailer, provided no sample shall be served on that 
portion of the premises of a licensed retailer that is open to the public and 
where sales of alcoholic liquor at retail are made. Samples may be served 
on the premises of a licensee holding a license issued under the club and 
drinking establishment act, provided no sample shall be served on that 
portion of the premises that is open to the public and where sales of 
alcoholic liquor are made. Only products that have not been purchased 
from the distributor licensee by the retailer or club and drinking 
establishment act licensee within the previous 12 months may be provided 
for sampling pursuant to this subsection. No sample shall be provided to 
any minor. Nothing in this subsection shall be construed to permit the 
licensee to sell any alcoholic liquor for consumption on the premises. The 
withdrawal of beer or cereal malt beverage shall be subject to the tax 
imposed by K.S.A. 79-4101 et seq., and amendments thereto, based on the 
applicable current posted bottle or case price. For purposes of providing 
samples pursuant to this subsection other than at industry seminars or to 
the licensee's employees, the term this subsection, "sample" shall have the 
same meaning as that term is defined in K.S.A. 41-2601, and amendments 
thereto means not more than three gallons of any brand of beer or cereal 
malt beverage.
Sec. 4. K.S.A. 41-306, 41-306a and 41-307 are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its 
publication in the statute book.
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