Session of 2025 HOUSE BILL No. 2376 By Committee on Federal and State Affairs Requested by Zack Denney, Department of Revenue 2-11 AN ACT concerning alcoholic liquor; amending the Kansas liquor control act, the Kansas club and drinking establishment act and the Kansas cereal malt beverage act; transferring the licensure of off-premise cereal malt beverage retailers and on-premise cereal malt beverage retailers from cities and counties to the alcoholic beverage control division of the department of revenue; allowing local licensure by cities or counties; amending K.S.A. 41-304, 41-2601, 41-2701, 41-2702, 41- 2705, 41-2706, 41-2707, 41-2708, 41-2722, 41-2726 and 41-2730 and K.S.A. 2024 Supp. 41-102, 41-104, 41-2703 and 41-2704 and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 2024 Supp. 41-102 is hereby amended to read as follows: 41-102. As used in this act, unless the context clearly requires otherwise: (a) "Alcohol" means the product of distillation of any fermented liquid, whether rectified or diluted, whatever its origin, and includes synthetic ethyl alcohol but does not include denatured alcohol or wood alcohol. (b) "Alcoholic candy" means: (1) For purposes of manufacturing, any candy or other confectionery product with an alcohol content greater than 0.5% alcohol by volume; and (2) for purposes of sale at retail, any candy or other confectionery product with an alcohol content greater than 1% alcohol by volume. (c) "Alcoholic liquor" means alcohol, spirits, wine, beer, alcoholic candy and every liquid or solid, patented or not, containing alcohol, spirits, wine or beer and capable of being consumed by a human being, but shall not include any cereal malt beverage. (d) "Applicant" means a person who has submitted an application for licensure under this act. (e) "Beer" means a beverage, containing more than 3.2% alcohol by weight, obtained by alcoholic fermentation of an infusion or concoction of barley, or other grain, malt and hops in water and includes beer, ale, stout, lager beer, porter and similar beverages having such alcoholic content. (f) "Caterer" means the same as defined by K.S.A. 41-2601, and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HB 2376 2 amendments thereto. (g) "Cereal malt beverage" means the same as defined by K.S.A. 41- 2701, and amendments thereto. (h) "Club" means the same as defined by K.S.A. 41-2601, and amendments thereto. (i) "Director" means the director of alcoholic beverage control of the department of revenue. (j) "Distributor" means the person importing or causing to be imported into the state, or purchasing or causing to be purchased within the state, alcoholic liquor for sale or resale to retailers licensed under this act or cereal malt beverage for sale or resale to retailers licensed under K.S.A. 41-2702, and amendments thereto. (k) "Domestic beer" means beer which that contains not more than 15% alcohol by weight and which that is manufactured in this state. (l) "Domestic fortified wine" means wine which contains more than 16%, but not more than 20% alcohol by volume and which that is manufactured in this state. (m) "Domestic table wine" means wine which contains not more than 16% alcohol by volume and which that is manufactured without rectification or fortification in this state. (n) "Drinking establishment" means the same as defined by K.S.A. 41-2601, and amendments thereto. (o) "Farm winery" means a winery licensed by the director to manufacture, store and sell domestic table wine and domestic fortified wine. (p) "Fulfillment house" means any location or facility for any in-state or out-of-state entity that handles logistics, including warehousing, packaging, order fulfillment or shipping services, on behalf of the holder of a special order shipping license issued pursuant to K.S.A. 41-350, and amendments thereto. (q) "Hard cider" means any alcoholic beverage that: (1) Contains less than 8.5% alcohol by volume; (2) has a carbonation level that does not exceed 6.4 grams per liter; and (3) is obtained by the normal alcoholic fermentation of the juice of sound, ripe apples or pears, including such beverages containing sugar added for the purpose of correcting natural deficiencies. (r) "Licensee" means a person who is issued any valid license under the Kansas liquor control act, Kansas club and drinking establishment act or Kansas cereal malt beverage act. (s) "Manufacture" means to distill, rectify, ferment, brew, make, mix, concoct, process, blend, bottle or fill an original package with any alcoholic liquor, beer or cereal malt beverage. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 3 (s)(t) (1) "Manufacturer" means every brewer, fermenter, distiller, rectifier, wine maker, blender, processor, bottler or person who fills or refills an original package and others engaged in brewing, fermenting, distilling, rectifying or bottling alcoholic liquor, beer or cereal malt beverage. (2) "Manufacturer" does not include a microbrewery, microdistillery or a farm winery. (t)(u) "Microbrewery" means a brewery licensed by the director to manufacture, store and sell domestic beer and hard cider. (u)(v) "Microdistillery" means a facility which that produces spirits from any source or substance that is licensed by the director to manufacture, store and sell spirits. (v)(w) "Minor" means any person under 21 years of age. (w)(x) "Nonbeverage user" means any manufacturer of any of the products set forth and described in K.S.A. 41-501, and amendments thereto, when the products contain alcohol or wine, and all laboratories using alcohol for nonbeverage purposes. (x)(y) "Original package" means any bottle, flask, jug, can, cask, barrel, keg, hogshead or other receptacle or container whatsoever, used, corked or capped, sealed and labeled by the manufacturer of alcoholic liquor, to contain and to convey any alcoholic liquor. Original container does not include a sleeve. (y)(z) "Person" means any natural person, corporation, partnership, trust or association. (z)(aa) "Powdered alcohol" means alcohol that is prepared in a powdered or crystal form for either direct use or for reconstitution in a nonalcoholic liquid. (aa)(bb) "Primary American source of supply" means the manufacturer, the owner of alcoholic liquor at the time it becomes a marketable product or the manufacturer's or owner's exclusive agent who, if the alcoholic liquor cannot be secured directly from such manufacturer or owner by American wholesalers, is the source closest to such manufacturer or owner in the channel of commerce from which the product can be secured by American wholesalers. (bb)(cc) (1) "Retailer" means a person who is licensed under the Kansas liquor control act and sells at retail, or offers for sale at retail, alcoholic liquors or cereal malt beverages. (2) "Retailer" does not include a microbrewery, microdistillery or a farm winery. (cc)(dd) "Sale" means any transfer, exchange or barter in any manner or by any means whatsoever for a consideration and includes all sales made by any person, whether principal, proprietor, agent, servant or employee. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 4 (dd)(ee) "Salesperson" means any natural person who: (1) Procures or seeks to procure an order, bargain, contract or agreement for the sale of alcoholic liquor or cereal malt beverage; or (2) is engaged in promoting the sale of alcoholic liquor or cereal malt beverage, or in promoting the business of any person, firm or corporation engaged in the manufacturing and selling of alcoholic liquor or cereal malt beverage, whether the seller resides within the state of Kansas and sells to licensed buyers within the state of Kansas, or whether the seller resides without the state of Kansas and sells to licensed buyers within the state of Kansas. (ee)(ff) "Sample" means a serving of alcoholic liquor that contains not more than: (1) One-half 1 /2 ounce of distilled spirits; (2) one ounce of wine; or (3) two ounces of beer or cereal malt beverage. A "sample" of a mixed alcoholic beverage shall contain not more than ½ ounce of distilled spirits. (ff)(gg) "Secretary" means the secretary of revenue. (gg)(hh) (1) "Sell at retail" and "sale at retail" refer to and mean sales for use or consumption and not for resale in any form and sales to clubs, licensed drinking establishments, licensed caterers or holders of temporary permits. (2) "Sell at retail" and "sale at retail" do not refer to or mean sales by a distributor, a microbrewery, a farm winery, a licensed club, a licensed drinking establishment, a licensed caterer or a holder of a temporary permit. (hh)(ii) "To sell" includes to solicit or receive an order for, to keep or expose for sale and to keep with intent to sell. (ii)(jj) "Sleeve" means a package of two or more 50-milliliter or 3.2- fluid-ounce containers of spirits. (jj)(kk) "Spirits" means any beverage which that contains alcohol obtained by distillation, mixed with water or other substance in solution, and includes brandy, rum, whiskey, gin or other spirituous liquors, and such liquors when rectified, blended or otherwise mixed with alcohol or other substances. (kk)(ll) "Supplier" means a manufacturer of alcoholic liquor or cereal malt beverage or an agent of such manufacturer, other than a salesperson. (ll)(mm) "Temporary permit" means the same as defined by K.S.A. 41-2601, and amendments thereto. (mm)(nn) "Wine" means any alcoholic beverage obtained by the normal alcoholic fermentation of the juice of sound, ripe grapes, fruits, berries or other agricultural products, including such beverages containing added alcohol or spirits or containing sugar added for the purpose of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 5 correcting natural deficiencies. "Wine" includes hard cider and any other product that is commonly known as a subset of wine. Sec. 2. K.S.A. 2024 Supp. 41-104 is hereby amended to read as follows: 41-104. (a) No person shall manufacture, bottle, blend, sell, barter, transport, deliver, furnish or possess any alcoholic liquor or cereal malt beverage for beverage purposes, except as specifically provided in this act, the club and drinking establishment act or article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments thereto, except that nothing contained in such acts shall prevent: (1) The possession and transportation of alcoholic liquor for the personal use of the possessor, the possessor's family and guests except that the provisions of K.S.A. 41-407, and amendments thereto, shall be applicable to all persons; (2) the making of wine, cider or beer by a person from fruits, vegetables or grains, or the product thereof, by simple fermentation and without distillation, if it is made solely for the use of the maker, the maker's family, guests and judges at a contest or competition of such beverages, provided, the maker receives no compensation for producing such beverages or for allowing the consumption thereof; (3) any duly licensed practicing physician or dentist from possessing or using alcoholic liquor in the strict practice of the medical or dental profession; (4) any hospital or other institution caring for sick and diseased persons, from possessing and using alcoholic liquor for the treatment of bona fide patients of such hospital or institution; (5) any drugstore employing a licensed pharmacist from possessing and using alcoholic liquor in the compounding of prescriptions of duly licensed physicians; (6) the possession and dispensation of wine by an authorized representative of any church for the purpose of conducting any bona fide rite or religious ceremony conducted by such church; (7) the sale of wine to a consumer in this state by a person which that holds a valid license authorizing the manufacture of wine in this or another state and the shipment of such wine directly to such consumer, subject to the following: (A) The consumer must shall be at least 21 years of age; (B) the consumer must shall purchase the wine while physically present on the premises of the wine manufacturer; (C) the wine must shall be for the consumer's personal consumption and not for resale; and (D) the consumer shall comply with the provisions of K.S.A. 41-407, and amendments thereto, by payment of all applicable taxes within such time after purchase of the wine as prescribed by rules and regulations 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 6 adopted by the secretary; (8) the serving of complimentary alcoholic liquor or cereal malt beverages at fund raising activities of charitable organizations as defined by K.S.A. 17-1760, and amendments thereto, and as qualified pursuant to 26 U.S.C. § 501(c) and by committees formed pursuant to K.S.A. 25-4142 et seq., and amendments thereto. The serving of such alcoholic liquor at such fund raising activities shall not constitute a sale pursuant to this act, the club and drinking establishment act or article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments thereto. Any such fund raising activity shall not be required to obtain a license or a temporary permit pursuant to this act, the club and drinking establishment act or article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments thereto; (9) the serving of complimentary alcoholic liquor or cereal malt beverage on the unlicensed premises of a business by the business owner or owner's agent at an event sponsored by a nonprofit organization promoting the arts and which that has been approved by ordinance or resolution of the governing body of the city, county or township wherein the event will take place and whereby the director of the alcoholic beverage control has been notified thereof no less than 10 days in advance; or (10) the provision of alcoholic liquor or cereal malt beverage as a prize for a charitable raffle conducted in accordance with K.S.A. 75-5171 et seq., and amendments thereto, except that no such prize shall be provided to any person under 21 years of age. (b) For purposes of subsection (a)(2), the term "guest" means a natural person who is known to the host and receives a personal invitation to an event conducted by the host. The term "guest" does not mean a natural person who receives an invitation to an event conducted by the host when such invitation has been made available to the general public. Sec. 3. K.S.A. 41-304 is hereby amended to read as follows: 41-304. Licenses issued by the director shall be of the following classes: (a) Manufacturer's license; (b) spirits distributor's license; (c) wine distributor's license; (d) beer distributor's license; (e) retailer's license; (f) microbrewery license; (g) microdistillery license; (h) farm winery license; (i) producer's license; and (j) nonbeverage user's license; (k) on-premise cereal malt beverage retailer's license; and (l) off-premise cereal malt beverage retailer's license. Sec. 4. K.S.A. 41-2601 is hereby amended to read as follows: 41- 2601. As used in the club and drinking establishment act: (a) The following terms mean the same as provided by K.S.A. 41- 102, and amendments thereto: (1) "Alcoholic liquor"; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 7 (2) "director"; (3) "original package"; (4) "person"; (5) "sale"; and (6) "to sell." (b) "Beneficial interest" shall not include any interest a person may have as owner, operator, lessee or franchise holder of a licensed hotel or motel on the premises of which a club or drinking establishment is located. (c) "Caterer" means an individual, partnership or corporation that sells alcoholic liquor or cereal malt beverage by the individual drink, and provides services related to the serving thereof, on unlicensed premises that may be open to the public, but does not include a holder of a temporary permit, selling alcoholic liquor or cereal malt beverage in accordance with the terms of such permit. (d) "Cereal malt beverage" means the same as provided by K.S.A. 41- 2701, and amendments thereto. (e) "Class A club" means a premises that is owned or leased by a corporation, partnership, business trust or association and that is operated thereby as a bona fide nonprofit social, fraternal or war veterans' club, as determined by the director, for the exclusive use of the corporate stockholders, partners, trust beneficiaries or associates, hereinafter referred to as members, and their families and guests accompanying them, as provided in K.S.A. 41-2637, and amendments thereto. (f) "Class B club" means a premises operated for profit by a corporation, partnership or individual, to which members of such club may resort for the consumption of food or alcoholic beverages and for entertainment. (g) "Club" means a class A or class B club. (h) "Drinking establishment" means premises that may be open to the general public, where alcoholic liquor or cereal malt beverage by the individual drink is sold. The term "Drinking establishment" includes a railway car. (i) "Food" means any raw, cooked or processed edible substance or ingredient, other than alcoholic liquor or cereal malt beverage, used or intended for use or for sale, in whole or in part, for human consumption. (j) "Food service establishment" means the same as provided by K.S.A. 36-501, and amendments thereto. (k) "Hotel" means the same as provided by K.S.A. 36-501, and amendments thereto. (l) "Individual drink" means a beverage containing alcoholic liquor or cereal malt beverage served to an individual for consumption by such individual or another individual, but which that is not intended to be consumed by two or more individuals. The term "Individual drink" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 8 includes beverages containing not more than: (1) Eight ounces of wine; (2) thirty-two32 ounces of beer or cereal malt beverage; or (3) four ounces of a single spirit or a combination of spirits. (m) "Licensee" means a person who is issued any valid license under the Kansas liquor control act, Kansas club and drinking establishment act, or Kansas cereal malt beverage act. "Licensee" shall include the holder of a temporary permit. (n) "Minibar" means a closed cabinet, whether nonrefrigerated or wholly or partially refrigerated, access to the interior of which is restricted by means of a locking device that requires the use of a key, magnetic card or similar device. (n)(o) "Minor" means a person under 21 years of age. (o)(p) "Morals charge" means a charge involving the sale of sexual relations;, procuring any person;, soliciting of a child under 18 years of age for any immoral act involving sex;, possession or sale of narcotics, marijuana, amphetamines or barbiturates;, rape;, incest;, gambling;, illegal cohabitation;, adultery;, bigamy; or a crime against nature. (p)(q) "Municipal corporation" means the governing body of any county or city. (q)(r) "Public venue" means an arena, stadium, hall or theater, used primarily for athletic or sporting events, live concerts, live theatrical productions or similar seasonal entertainment events, not operated on a daily basis, and containing: (1) Not fewer than 4,000 permanent seats; and (2) not fewer than two private suites that are enclosed or semi- enclosed seating areas, having controlled access and separated from the general admission areas by a permanent barrier. (r)(s) "Railway car" means a locomotive drawn conveyance used for the transportation and accommodation of human passengers that is confined to a fixed rail route and which that derives from sales of food for consumption on the railway car not less than 30% of its gross receipts from all sales of food and beverages in a 12-month period. (s)(t) "Restaurant" means: (1) In the case of a club, a licensed food service establishment that, as determined by the director, derives from sales of food for consumption on the licensed club premises of not less than 50% of its gross receipts from all sales of food and beverages on such premises in a 12-month period; (2) in the case of a drinking establishment subject to a food sales requirement under K.S.A. 41-2642, and amendments thereto, a licensed food service establishment that, as determined by the director, derives from sales of food for consumption on the licensed drinking establishment premises of not less than 30% of its gross receipts from all sales of food 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 9 and beverages on such premises in a 12-month period; and (3) in the case of a drinking establishment subject to no food sales requirement under K.S.A. 41-2642, and amendments thereto, a licensed food service establishment. (t)(u) "RV resort" means premises where a place to park recreational vehicles, as defined in K.S.A. 75-1212, and amendments thereto, is offered for pay, primarily to transient guests, for overnight or longer use while such recreational vehicles are used as sleeping or living accommodations. (u)(v) "Sample" means a serving of alcoholic liquor or cereal malt beverage that contains not more than: (1) One-half 1 /2 ounce of distilled spirits; (2) one ounce of wine; or (3) two ounces of beer or cereal malt beverage. A sample of a mixed alcoholic beverage shall contain not more than ½ ounce of distilled spirits. (v)(w) "Secretary" means the secretary of revenue. (w)(x) "Temporary permit" means a temporary permit issued pursuant to K.S.A. 41-1201, and amendments thereto. Sec. 5. K.S.A. 41-2701 is hereby amended to read as follows: 41- 2701. As used in this act, unless the context otherwise requires: (a) "Cereal malt beverage" means any fermented but undistilled liquor brewed or made from malt or from a mixture of malt or malt substitute or any flavored malt beverage, as defined in K.S.A. 41-2729, and amendments thereto, but does not include any such liquor which that is more than 3.2% alcohol by weight. (b) "Director" means the director of alcoholic beverage control of the department of revenue. (c) "Manufacturer" means a manufacturer as defined by K.S.A. 41- 102, and amendments thereto. (d) "Person" means any individual, firm, partnership, corporation or association. (e) "Retailer" means any person who is licensed under the Kansas cereal malt beverage act and who sells or offers for sale any cereal malt beverage or beer containing not more than 6% alcohol by volume for use or consumption and not for resale in any form. (f) "Place of business" means any place at which cereal malt beverages or beer containing not more than 6% alcohol by volume are sold. (g) "Distributor" means a beer distributor licensed pursuant to the Kansas liquor control act. (h) "Legal age for consumption of cereal malt beverage" means 21 years of age, except that "legal age for consumption of cereal malt beverage" shall mean 18 years of age if at any time the provisions of P.L. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 10 98-363 penalizing states for permitting persons under 21 years of age to consume cereal malt beverage are repealed or otherwise invalidated or nullified."Distributor" means a beer distributor licensed pursuant to the Kansas liquor control act. (d) "Legal age for consumption of cereal malt beverage" means 21 years of age, except that "legal age for consumption of cereal malt beverage" means 18 years of age if at any time the provisions of P.L. 98- 363 penalizing states for permitting persons under 21 years of age to consume cereal malt beverage are repealed or otherwise invalidated or nullified. (e) "Licensee" means the holder of an on-premise, off-premise or railroad cereal malt beverage retailers' license. (f) "Manufacturer" means a manufacturer as defined by K.S.A. 41- 102, and amendments thereto. (g) "Off-premise cereal malt beverage retailer" means any person who is licensed under the Kansas cereal malt beverage act and who sells or offers for sale any cereal malt beverage or beer containing not more than 6% alcohol by volume for consumption off and away from the premises specified in such license. (h) "On-premise cereal malt beverage retailer" means any person who is licensed under the Kansas cereal malt beverage act and who sells or offers for sale any cereal malt beverage or beer containing not more than 6% alcohol by volume for consumption on the premises specified in such license and not for resale in any form. (i) "Person" means any natural person, corporation, partnership, trust or association. (j) "Place of business" means any place where cereal malt beverages or beer containing not more than 6% alcohol by volume are sold. (k) "Retailer" means any person who is licensed under the Kansas cereal malt beverage act and who sells or offers for sale any cereal malt beverage or beer containing not more than 6% alcohol by volume for use or consumption and not for resale in any form. Sec. 6. K.S.A. 41-2702 is hereby amended to read as follows: 41- 2702. (a) No retailer person shall sell any cereal malt beverage or beer containing not more than 6% alcohol by volume without having first secured a license for each place of business as herein provided. In case such place of business is located within the corporate limits of a city, the application for license shall be made to the governing body of such city. In all other cases, the application for license shall be made to the board of county commissioners in the county in which such place of business is to be located, except that the application for license Applications for all cereal malt beverage licenses, including licenses to sell on railway cars shall be made to the director as hereinafter provided. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 11 (b) A board of county commissionersThe director shall not issue or renew a cereal malt beverage retailer's license without giving the clerk of the township where the place of business is to be located written notice by registered mail of the filing of the application for licensure or renewal. The township board, may within 10 days, file advisory recommendations as to the granting of such license or renewal, and such advisory recommendations shall be considered by the board of county commissioners director before such license is issued. If an original license is granted and issued, the board of county commissioners director shall grant and issue renewals thereof upon application of the license holder, if the license holder is qualified to receive the same and the license has not been revoked as provided by law. (c) An application for a cereal malt beverage retailer's license shall be verified and upon a form prepared by the attorney general of the state director and with any other documents deemed necessary by the director shall contain: (1) The name and residence of the applicant; (2) the length of time that the applicant has resided within the state of Kansas; (3) the particular place of business for which a license is desired; (4)(3) the name of the owner of the premises upon which where the place of business is located; and (5)(4) a statement that the applicant is a citizen of the United States and, not less than 21 years of age and that the applicant has not within two years immediately preceding the date of making application been convicted of a felony, any crime involving moral turpitude, drunkenness, driving a motor vehicle while under the influence of intoxicating liquor or a violation of any other intoxicating liquor law of any state or of the United States. (d) In addition to the fee provided by subsection (e), Each application for a retailer's license to sell cereal malt beverages for consumption on the licensed premises shall be accompanied by a fee as follows: (1) For licensure of a place of business other than a railway car, a fee of not less than $25 nor more than $200, as prescribed by the board of county commissioners or the governing body of the city, as the case may be; and (2) for licensure to sell on railway cars, railway cereal malt beverage retailer's license shall be accompanied by a fee of $100. (e) Each applicant for a an on-premise or off-premise cereal malt beverage retailer's license or renewal of such a license shall submit to the director a copy of the completed application for such license or license renewal, together with a fee of $25 $50. Upon receipt of such application, the director shall authorize a state stamp to be affixed to the license. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 12 such stamp shall be affixed to any license except such stamps as provided by the director and no retailer's license shall be issued or renewed unless such stamp has first been affixed thereto. (f) Notwithstanding any other provision of the law, the director may refuse to issue a stamp license if the applicant or licensee is not current in the payment of any fines imposed by the director relating to such license or a license previously issued pursuant to this section, the Kansas liquor control act or the club and drinking establishment act. (f)(g) The director shall remit all fees collected by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund, except that the director may provide for the deposit in the cereal malt beverage tax refund fund of such amounts as necessary for the refund of any license fees collected hereunder. (g)(h) The board of county commissioners of the several counties or the governing body of a city shall issue a license upon application duly made as otherwise provided for herein, to any retailer engaged in business in such county or city and qualified to receive such license, to sell only cereal malt beverages in original and unopened containers, and not for consumption on the premises may require any application for an on- premise or off-premise cereal malt beverage retailer's license to obtain a local license in addition to the requirements of this section. (i) If a local license is required as provided in subsection (h), no on- premise or off-premise cereal malt beverage retailer shall operate until it has obtained such license. The annual license fee for such license, which shall be in addition to the fee provided by subsection (e), shall be not less than $25 nor more than $50 $200. (h)(j) No license issued under this act shall be transferable. Sec. 7. K.S.A. 2024 Supp. 41-2703 is hereby amended to read as follows: 41-2703. (a) After examination of an application for a any cereal malt beverage retailer's license, the board of county commissioners or the director shall, if they approve the same approved, issue a license to the applicant. The governing body of the city shall, if the applicant is qualified as provided by law, issue a license to such applicant. (b) No cereal malt beverage retailer's license shall be issued to: (1) A person who is not a citizen of the United States; (2) a person who, within two years immediately preceding the date of application approval, has been convicted of, released from incarceration for or released from probation or parole for a felony or any crime involving moral turpitude, drunkenness, driving a motor vehicle while under the influence of intoxicating liquor or violation of any other intoxicating liquor law of any state or of the United States; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 13 (3) a partnership, unless all the members of the partnership are otherwise qualified to obtain a license; (4) a corporation, if any manager, officer or director thereof, or any stockholder owning in the aggregate more than 25% of the stock of such corporation, would be ineligible to receive a license hereunder for any reason other than the citizenship requirements; (5) a person whose place of business is conducted by a manager or agent unless the manager or agent possesses all the qualifications of a licensee; (6) a person whose spouse would be ineligible to receive a cereal malt beverage retailer's license for any reason other than citizenship requirements or age, except that this paragraph shall not apply in determining eligibility for a renewal license; and (7) a person whose spouse has been convicted of a felony or other crime that would disqualify a person from licensure under this section and such felony or other crime was committed during the time that the spouse held a license under this act. (c) After examination of an application for a cereal malt beverage retailer's license, the board of county commissioners or the governing body of a city director may deny a license to a person, partnership or corporation if any manager, officer or director thereof, or any stockholder owning in the aggregate more than 25% of the stock of such corporation, has been an officer, manager, director or a stockholder owning in the aggregate more than 25% of the stock, of a corporation that has: (1) Had a cereal malt beverage retailer's license revoked under K.S.A. 41-2708, and amendments thereto; or (2) been convicted of a violation of the club and drinking establishment act or the cereal malt beverage laws of this state. (d) Notwithstanding any generally applicable grant of discretion that may be provided pursuant to subsection (a), if an applicant has been issued a farm winery license pursuant to K.S.A. 41-316, and amendments thereto, or a producer's license pursuant to K.S.A. 41-355, and amendments thereto, an application for a retailers' license shall be approved by the board of county commissioners, the governing body of the city or the director, subject to the requirements of subsections (b) and (c). (e) Cereal malt beverage retailers' licenses shall be issued either on an annual basis or for the calendar year. If such licenses are issued on an annual basis, the board of county commissioners or the governing body of the city shall notify the distributors supplying the county or city on or before April 1 of the year if a retailer's license is not renewed for a period of one year, beginning on the effective date of the license and ending one year thereafter. (f) In addition to, and consistent with the requirements of K.S.A. 41- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 14 2701 et seq., and amendments thereto, the board of county commissioners of any county or the governing body of any city may provide by a resolution or ordinance for the issuance of requesting the director to issue a special event retailers' permit that shall allow the permit holder to offer for sale, sell and serve cereal malt beverage for consumption on unpermitted premises, that may be open to the public, subject to the following: (1) A special event retailers' permit shall specify the premises for which the permit is issued; (2) a special event retailers' permit shall be issued for the duration of the special event, the dates and hours of which shall be specified in the permit; (3) not more than four special event retailers' permits may be issued to any one applicant in a calendar year; and (4) a special event retailers' permit shall not be transferable or assignable. (g) A special event retailers' permit holder shall not be subject to the provisions of the beer and cereal malt beverage keg registration act, K.S.A. 41-2901 et seq., and amendments thereto. Sec. 8. K.S.A. 2024 Supp. 41-2704 is hereby amended to read as follows: 41-2704. (a) In addition to and consistent with the requirements of the Kansas cereal malt beverage act, the board of county commissioners of any county or the governing body of any city may prescribe hours of closing, standards of conduct and rules and regulations concerning the moral, sanitary and health conditions of places licensed pursuant to this act and may establish zones within which no such place may be located. (b) Within any city where the days of sale at retail of cereal malt beverage in the original package have not been expanded as provided by K.S.A. 41-2911, and amendments thereto, or have been so expanded and subsequently restricted as provided by K.S.A. 41-2911, and amendments thereto, no cereal malt beverages or beer containing not more than 6% alcohol by volume may be sold: (1) Between the hours of 12 midnight and 6 a.m.; or (2) on Sunday, except in a place of business that is licensed to sell cereal malt beverage for consumption on the premises and that is located in a county where such sales on Sunday have been authorized by resolution of the board of county commissioners of the county or in a city where such sales on Sunday have been authorized by ordinance of the governing body of the city. (c) Within any city where the days of sale at retail of cereal malt beverage in the original package have been expanded as provided by K.S.A. 41-2911, and amendments thereto, and have not been subsequently restricted as provided in K.S.A. 41-2911, and amendments thereto, no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 15 person shall sell at retail cereal malt beverage or beer containing not more than 6% alcohol by volume: (1) Between the hours of 12 midnight and 6 a.m.; (2) in the original package not earlier than 9 a.m. and not later than 8 p.m. on Sunday; (3) on Easter Sunday; or (4) for consumption on the licensed premises on Sunday, except in a place of business that is licensed to sell cereal malt beverage for consumption on the premises and that is located in a county where such sales on Sunday have been authorized by resolution of the board of county commissioners of the county or in a city where such sales on Sunday have been authorized by ordinance of the governing body of the city. (d) No private rooms or closed booths shall be operated in a place of business, but this provision shall not apply if the licensed premises also are licensed as a club pursuant to the club and drinking establishment act. (e) Each place of business shall be open to the public and to law enforcement officers at all times during business hours, except that a premises licensed as a club pursuant to the club and drinking establishment act shall be open to law enforcement officers and not to the publicThe right of immediate entry to and inspection of any premises licensed as an on-premise or off-premise cereal malt beverage retailer, or any premises subject to the control of any such licensee, by any duly authorized officer or agent of the director, or by any law enforcement officer, shall be a condition upon which every license is issued, and the application for, and acceptance of, any license shall conclusively be deemed to be the consent of the applicant and licensee to such immediate entry and inspection. Such right of immediate entry and inspection shall be at any time when the premises are occupied and is not limited to hours when the licensee is open for business. Such consent shall not be revocable during the term of the license. Refusal of such entry shall be grounds for revocation of the license. (f) Except as otherwise provided by this subsection, no licensee shall permit a person under the legal age for consumption of cereal malt beverage or beer containing not more than 6% alcohol by volume to consume or purchase any cereal malt beverage in or about a place of business. A licensee's employee who is not less than 18 years of age may dispense or sell cereal malt beverage or beer containing not more than 6% alcohol by volume, if: (1) The licensee's place of business is licensed only to sell at retail cereal malt beverage or beer containing not more than 6% alcohol by volume in the original package and not for consumption on the premises as an off-premise cereal malt beverage retailer; or (2) the licensee's place of business is a licensed food service 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 16 establishment, as defined by K.S.A. 36-501, and amendments thereto, and not less than 50% of the gross receipts from the licensee's place of business is derived from the sale of food for consumption on the premises of the licensed place of business. (g) No person shall have any alcoholic liquor, except beer containing not more than 6% alcohol by volume, in such person's possession while in a place of business, unless the premises are currently licensed as a club or drinking establishment pursuant to the club and drinking establishment act or the business is a farm winery licensed pursuant to K.S.A. 41-316, and amendments thereto, or a producer licensed pursuant to K.S.A. 41-355, and amendments thereto. (h) Cereal malt beverages may be sold on premises that are licensed pursuant to both the Kansas cereal malt beverage act and the club and drinking establishment act at any time when alcoholic liquor is allowed by law to be served on the premises. Sec. 9. K.S.A. 41-2705 is hereby amended to read as follows: 41- 2705. (a) Except to the extent permitted pursuant to K.S.A. 41-703, and amendments thereto, no retailer licensee, or any officer, associate, member, representative or agent thereof, shall accept, receive or borrow money or anything else of value, or accept or receive credit, directly or indirectly, from: (1) Any manufacturer or distributor; (2) any person connected with, in any way representing or a member of the family of a manufacturer or distributor; (3) any stockholders in a manufacturer or distributor; or (4) any officer, manager, agent or representative of a manufacturer or distributor. (b) AnyA licensee who shall permit or assent, or be a party in any way, to any violation or infringement of the provisions of this section or of K.S.A. 41-702 or 41-703, and amendments thereto, shall be deemed guilty of a violation of this act, and any money loaned contrary to a provision of this section shall not be recovered, or any note, mortgage or other evidence of indebtedness, or security, or any lease or contract obtained or made contrary to this act shall be unenforceable and void. Sec. 10. K.S.A. 41-2706 is hereby amended to read as follows: 41- 2706. (a) Except as provided by subsection (b), no person shall sell or furnish cereal malt beverages or beer containing not more than 6% alcohol by volume at retail to any person on credit; on a passbook; on order on a store; in exchange for any goods, wares or merchandise; or in payment for any services rendered. If any person extends credit for such purpose, the debt attempted to be created shall not be recoverable at law and, in addition, such person shall be subject to the penalties provided in K.S.A. 41-2707, and amendments thereto. (b) A licensed retailer licensee may sell cereal malt beverages or beer containing not more than 6% alcohol by volume to a consumer on credit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 17 pursuant to a credit card which that entitles the user to purchase goods or services from at least 100 persons not related to the issuer of the credit card. Sec. 11. K.S.A. 41-2707 is hereby amended to read as follows: 41- 2707. No distributor shall sell or furnish cereal malt beverages to a retailer licensee on credit; on a passbook; on order on a store; in exchange for any goods, wares or merchandise; in payment for any service rendered or to be rendered; or by any extension of credit of any kind, type or class. Any distributor or retailer who violates any of the terms of this section or K.S.A. 41-2706, and amendments thereto, shall be subject to all penalties and forfeitures provided by K.S.A. 41-2705 and 41-2708, and amendments thereto, and any debt attempted to be created in violation hereof shall not be recoverable at law. Sec. 12. K.S.A. 41-2708 is hereby amended to read as follows: 41- 2708. (a) The board of county commissioners or the governing body of any city, upon five days' notice to the persons holding a license, director may revoke or suspend the a license issued pursuant to this act for any one of the following reasons: (1) The licensee has violated any of the provisions of K.S.A. 41-2701 et seq., and amendments thereto, the Kansas cereal malt beverage act or any rules or regulations made by the board or the city, as the case may be; (2) drunkenness of the licensee or permitting any intoxicated person to remain in or upon the licensee's place of business; (3) the sale of cereal malt beverages or beer containing not more than 6% alcohol by volume to any person under the legal age for consumption of cereal malt beverage; (4) permitting any person to mix drinks with materials purchased in or upon the place of business or brought in for that purpose; (5) the sale or possession of, or permitting any person to use or consume on the licensed premises, any alcoholic liquor as defined by K.S.A. 41-102, and amendments thereto, except beer containing not more than 6% alcohol by volume; or (6) the licensee has been convicted of a violation of the beer and cereal malt beverage keg registration act. (b) The provisions of subsections (a)(4) and (5) shall not apply if the place of business or premises also are currently licensed as a club or drinking establishment pursuant to the club and drinking establishment act. (c) The board of county commissioners or the governing body of any city, upon five days' notice to the persons holding a license, director shall revoke or suspend the license for any one of the following reasons: (1) The licensee has fraudulently obtained the license by giving false information in the application therefor; (2) the licensee has become ineligible to obtain a license under this 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 18 act; (3) the nonpayment of any license fees; (4) permitting any gambling in or upon the licensee's place of business; (5) the employment of persons under 18 years of age in dispensing or selling cereal malt beverages or beer containing not more than 6% alcohol by volume; (6) the employment or continuation in employment of a person in connection with the sale, serving or dispensing of cereal malt beverages if the licensee knows such person has been, within the preceding two years, adjudged guilty of a felony or of any violation of the intoxicating liquor laws of this state, another state or the United States; or (7) there has been a violation of K.S.A. 21-4106 or 21-4107, prior to their repeal, or K.S.A. 21-6204, and amendments thereto, in or upon the licensee's place of business. (d) Within 20 days after the order of the board revoking or suspending any license, the licensee may appeal to the district court and the district court shall proceed to hear such appeal as though such court had original jurisdiction of the matter. Any appeal taken from an order revoking or suspending the license shall not suspend the order of revocation or suspension during the pendency of any such appealAll proceedings involving the suspension or revocation of a license pursuant to this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act. No license shall be suspended or revoked except after an opportunity for a hearing before the director. (e) (1) (A) At any time, the governing body of any city or county may request the director to hold a hearing on whether any license issued pursuant to this act should be revoked or suspended. The governing body shall provide the director reasonable cause to believe that a hearing is necessary based upon factors included in rules and regulations by the secretary. The director may refuse the governing body's request absent such reasonable cause to hold a hearing; (B) Any hearing held pursuant to this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act as provided in subsection (d). (2) At any hearing held pursuant to this section, the governing body of such city or county shall have the right to appear before the director and present testimony and evidence and make recommendations regarding the granting or refusal to grant such license or renewal, or whether such license should be revoked or suspended. In determining whether to grant or to refuse to grant such license or renewal, or to revoke or suspend such license, the director shall take into consideration the testimony and evidence and recommendations of the governing body of such city or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 19 county. The director may refuse to grant such license or renewal, or may revoke or suspend such license based on the evidence gathered at such hearing, in the interest of protecting the public welfare and in accordance with rules and regulations adopted by the secretary. Sec. 13. K.S.A. 41-2722 is hereby amended to read as follows: 41- 2722. (a) No on-premise or off-premise cereal malt beverage retailer, or employee or agent of a retailer, licensed to sell cereal malt beverage and beer containing not more than 6% alcohol by volume for consumption on the licensed premises shall: (1) OfferSell or serve any free cereal malt beverage or beer containing not more than 6% alcohol by volume to any person; (2) offersell or serve to any person a drink at a price that is less than the acquisition cost of the drink to the licensee; (3) sell, offer to sell or serve to any person an unlimited number of drinks during any set period of time for a fixed price, except at private functions not open to the general public; (4) encourage or permit, on the licensed premises, any game or contest which that involves drinking cereal malt beverage or beer containing not more than 6% alcohol by volume or the awarding of drinks as prizes; or (5) advertise or promote in any way, whether on or off the licensed premises, any of the practices prohibited under subsections (a)(1) through (4). (b) (1) AAn on-premise or off-premise cereal malt beverage retailer may: (1) offer free food or entertainment at any time;. (2) An on-premise cereal malt beverage retailer may: (A) Sell, offer to sell and serve individual drinks at different prices throughout any day; or (3)(B) sell or serve cereal malt beverage or beer containing not more than 6% alcohol by volume in a pitcher capable of containing not more than 64 fluid ounces. (c) Violation of any provisions of this section is a misdemeanor punishable as provided by K.S.A. 41-2711, and amendments thereto. (d) Violation of any provision of this act shall be grounds for suspension or revocation of the retailer's license as provided by K.S.A. 41- 2708, and amendments thereto. (e) Every licensee subject to the provisions of this section shall make available at any time upon request a price list showing the licensee's current prices for all cereal malt beverages and beer containing not more than 6% alcohol by volume. (f) This section shall be part of and supplemental to K.S.A. 41-2701 through 41-2721, and amendments thereto. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 20 Sec. 14. K.S.A. 41-2726 is hereby amended to read as follows: 41- 2726. (a) No off-premise cereal malt beverage retailer licensed under K.S.A. 41-2701 et seq., and amendments thereto, to sell cereal malt beverage or beer containing not more than 6% alcohol by volume in original and unopened containers and not for consumption on the licensed premises shall sell or offer for sale directly or indirectly any cereal malt beverage or beer containing not more than 6% alcohol by volume at a price that is less than the acquisition cost of such cereal malt beverage or beer containing not more than 6% alcohol by volume to the licensee. (b) The director may issue to a an off-premise cereal malt beverage retailer a permit authorizing the retailer to sell cereal malt beverage or beer containing not more than 6% alcohol by volume at less than the acquisition cost thereof, if: (1) The retailer is actually closing out the retailer's stock for the purpose of completely discontinuing sale of the item for a period of not less than 12 months; (2) the item is damaged or deteriorated in quality and notice is given to the public thereof; or (3) the sale of the item is by an officer acting under the order of a court. (c) Violation of this section is a misdemeanor punishable as provided by K.S.A. 41-2711, and amendments thereto. (d) Violation of this section shall be grounds for suspension or revocation of the retailer's license as provided by K.S.A. 41-2708, and amendments thereto. Sec. 15. K.S.A. 41-2730 is hereby amended to read as follows: 41- 2730. (a) The director, or any properly designated agent of the director, may issue a citation to a licensee for any violation of the Kansas cereal malt beverage act, the Kansas liquor control act, the Kansas club and drinking establishment act or any rules and regulations promulgated thereunder, with regard to the sale, consumption or possession of beer containing not more than 6% alcohol by volume. Any such citation shall be issued in accordance with the provisions of K.S.A. 41-106, and amendments thereto. (b) In addition to or in lieu of any other civil or criminal penalty provided by law, the director, upon a finding that a retailer, as defined by K.S.A. 41-2701(e), and amendments thereto, licensee has violated a provision of the Kansas liquor control act, the Kansas club and drinking establishment act or the Kansas cereal malt beverage act, or any rules and regulations promulgated thereunder, with regard to the sale, consumption or possession of beer containing not more than 6% alcohol by volume may impose upon such retailer licensee a civil fine not exceeding $1,000 for each violation. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2376 21 (c) No fine shall be imposed pursuant to this section except upon the written order of the director to the retailer licensee who committed the violation. Such order shall state the violation, the fine to be imposed and the right of the retailer to appeal the order. Such order shall be subject to appeal and review in accordance with the Kansas administrative procedure act. (d) Any fine imposed pursuant to this section shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. (e) This section shall be a part of and supplemental to the Kansas cereal malt beverage act. Sec. 16. K.S.A. 41-304, 41-2601, 41-2701, 41-2702, 41-2705, 41- 2706, 41-2707, 41-2708, 41-2722, 41-2726 and 41-2730 and K.S.A. 2024 Supp. 41-102, 41-104, 41-2703 and 41-2704 are hereby repealed. Sec. 17. This act shall take effect and be in force from and after its publication in the statute book. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18