1 | 1 | | Session of 2025 |
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2 | 2 | | SENATE BILL No. 15 |
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3 | 3 | | By Committee on Federal and State Affairs |
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4 | 4 | | 1-16 |
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5 | 5 | | AN ACT concerning alcoholic beverages; relating to eligibility for |
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6 | 6 | | licensure under the Kansas liquor control act and the club and drinking |
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7 | 7 | | establishment act; authorizing the director of alcoholic beverage control |
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8 | 8 | | to issue licenses to convicted felons when such conviction occurred |
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9 | 9 | | more than 10 years prior to application for a license and a |
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10 | 10 | | determination of sufficient rehabilitation is made; amending K.S.A. 41- |
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11 | 11 | | 2623 and K.S.A. 2024 Supp. 41-311 and repealing the existing |
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12 | 12 | | sections. |
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13 | 13 | | Be it enacted by the Legislature of the State of Kansas: |
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14 | 14 | | Section 1. K.S.A. 2024 Supp. 41-311 is hereby amended to read as |
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15 | 15 | | follows: 41-311. (a) No license of any kind shall be issued pursuant to the |
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16 | 16 | | liquor control act to a person: |
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17 | 17 | | (1) Who is not a citizen of the United States; |
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18 | 18 | | (2) who has been convicted of a felony under the laws of this state, |
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19 | 19 | | any other state or the United States, except as provided in subsection (h); |
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20 | 20 | | (3) who has had a license revoked for cause under the provisions of |
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21 | 21 | | the liquor control act, the beer and cereal malt beverage keg registration |
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22 | 22 | | act or who has had any license issued under the cereal malt beverage laws |
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23 | 23 | | of any state revoked for cause except that a license may be issued to a |
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24 | 24 | | person whose license was revoked for the conviction of a misdemeanor at |
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25 | 25 | | any time after the lapse of 10 years following the date of the revocation; |
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26 | 26 | | (4) who has been convicted of being the keeper or is keeping any |
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27 | 27 | | property, whether real or personal, where sexual relations are being sold or |
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28 | 28 | | offered for sale by a person who is 18 years of age or older or has forfeited |
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29 | 29 | | bond to appear in court to answer charges of being a keeper of any |
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30 | 30 | | property, whether real or personal, where sexual relations are being sold or |
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31 | 31 | | offered for sale by a person who is 18 years of age or older; |
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32 | 32 | | (5) who has been convicted of being a proprietor of a gambling |
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33 | 33 | | house, pandering or any other crime opposed to decency and morality or |
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34 | 34 | | has forfeited bond to appear in court to answer charges for any of those |
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35 | 35 | | crimes; |
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36 | 36 | | (6) who is not at least 21 years of age; |
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37 | 37 | | (7) who, other than as a member of the governing body of a city or |
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38 | 38 | | county, appoints or supervises any law enforcement officer, who is a law |
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39 | 39 | | enforcement official or who is an employee of the director; |
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75 | 75 | | 36 SB 15 2 |
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76 | 76 | | (8) who intends to carry on the business authorized by the license as |
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77 | 77 | | agent of another; |
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78 | 78 | | (9) who at the time of application for renewal of any license issued |
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79 | 79 | | under this act would not be eligible for the license upon a first application, |
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80 | 80 | | except as provided by subsection (a)(12); |
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81 | 81 | | (10) who is the holder of a valid and existing license issued under |
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82 | 82 | | article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments |
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83 | 83 | | thereto, unless the person agrees to and does surrender the license to the |
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84 | 84 | | officer issuing the same upon the issuance to the person of a license under |
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85 | 85 | | this act, except such person may be issued a farm winery license pursuant |
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86 | 86 | | to K.S.A. 41-316, and amendments thereto, or a producer license pursuant |
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87 | 87 | | to K.S.A. 41-355, and amendments thereto, and a retailer licensed pursuant |
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88 | 88 | | to K.S.A. 41-2702, and amendments thereto, shall be eligible to receive a |
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89 | 89 | | retailer's license under the Kansas liquor control act; |
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90 | 90 | | (11) who does not own the premises for which a license is sought, or |
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91 | 91 | | does not, at the time of application, have a written lease thereon; |
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92 | 92 | | (12) whose spouse would be ineligible to receive a license under this |
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93 | 93 | | act for any reason other than citizenship requirements or age, except that |
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94 | 94 | | this paragraph shall not apply in determining eligibility for a renewal |
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95 | 95 | | license or to a person whose spouse is a law enforcement officer; |
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96 | 96 | | (13) whose spouse has been convicted of a felony or other crime that |
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97 | 97 | | would disqualify a person from licensure under this section and such |
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98 | 98 | | felony or other crime was committed during the time that the spouse held a |
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99 | 99 | | license under this act; |
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100 | 100 | | (14) who does not provide any data or information required by |
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101 | 101 | | K.S.A. 41-311b, and amendments thereto; or |
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102 | 102 | | (15) who, after a hearing before the director, has been found to have |
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103 | 103 | | held an undisclosed beneficial interest in any license issued pursuant to the |
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104 | 104 | | liquor control act that was obtained by means of fraud or any false |
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105 | 105 | | statement made on the application for such license. |
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106 | 106 | | (b) No retailer's license shall be issued to: |
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107 | 107 | | (1) A person who has a beneficial interest in a manufacturer, |
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108 | 108 | | distributor, farm winery or microbrewery licensed under this act, except |
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109 | 109 | | that the spouse of an applicant for a retailer's license may own and hold a |
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110 | 110 | | farm winery license, microbrewery license, or both, if the spouse does not |
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111 | 111 | | hold a retailer's license issued under this act; |
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112 | 112 | | (2) a person who has a beneficial interest in any other retail |
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113 | 113 | | establishment licensed under this act, except that the spouse of a licensee |
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114 | 114 | | may own and hold a retailer's license for another retail establishment; |
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115 | 115 | | (3) a copartnership, unless all of the copartners are qualified to obtain |
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116 | 116 | | a license; |
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117 | 117 | | (4) a corporation; or |
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118 | 118 | | (5) a trust, if any grantor, beneficiary or trustee would be ineligible to |
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161 | 161 | | 43 SB 15 3 |
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162 | 162 | | receive a license under this act for any reason, except that the provisions of |
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163 | 163 | | subsection (a)(6) shall not apply in determining whether a beneficiary |
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164 | 164 | | would be eligible for a license. |
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165 | 165 | | (c) No manufacturer's license shall be issued to: |
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166 | 166 | | (1) A corporation, if any officer or director thereof, or any |
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167 | 167 | | stockholder owning in the aggregate more than 25% of the stock of the |
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168 | 168 | | corporation would be ineligible to receive a manufacturer's license for any |
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169 | 169 | | reason other than citizenship requirements; |
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170 | 170 | | (2) a copartnership, unless all of the copartners would be individually |
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171 | 171 | | eligible to receive a manufacturer's license under this act; |
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172 | 172 | | (3) a trust, if any grantor, beneficiary or trustee would be ineligible to |
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173 | 173 | | receive a license under this act for any reason, except that the provisions of |
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174 | 174 | | subsection (a)(6) shall not apply in determining whether a beneficiary |
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175 | 175 | | would be eligible for a license; or |
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176 | 176 | | (4) a person who has a beneficial interest in a distributor, retailer, |
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177 | 177 | | farm winery or microbrewery licensed under this act, except as provided in |
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178 | 178 | | K.S.A. 41-305, and amendments thereto. |
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179 | 179 | | (d) No distributor's license shall be issued to: |
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180 | 180 | | (1) A corporation, if any officer, director or stockholder of the |
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181 | 181 | | corporation would be ineligible to receive a distributor's license for any |
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182 | 182 | | reason. It shall be unlawful for any stockholder of a corporation licensed |
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183 | 183 | | as a distributor to transfer any stock in the corporation to any person who |
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184 | 184 | | would be ineligible to receive a distributor's license for any reason, and |
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185 | 185 | | any such transfer shall be null and void, except that: (A) If any stockholder |
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186 | 186 | | owning stock in the corporation dies and an heir or devisee to whom stock |
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187 | 187 | | of the corporation descends by descent and distribution or by will is |
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188 | 188 | | ineligible to receive a distributor's license, the legal representatives of the |
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189 | 189 | | deceased stockholder's estate and the ineligible heir or devisee shall have |
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190 | 190 | | 14 months from the date of the death of the stockholder within which to |
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191 | 191 | | sell the stock to a person eligible to receive a distributor's license, any such |
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192 | 192 | | sale by a legal representative to be made in accordance with the provisions |
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193 | 193 | | of the probate code; or (B) if the stock in any such corporation is the |
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194 | 194 | | subject of any trust and any trustee or beneficiary of the trust who is 21 |
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195 | 195 | | years of age or older is ineligible to receive a distributor's license, the |
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196 | 196 | | trustee, within 14 months after the effective date of the trust, shall sell the |
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197 | 197 | | stock to a person eligible to receive a distributor's license and hold and |
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198 | 198 | | disburse the proceeds in accordance with the terms of the trust. If any legal |
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199 | 199 | | representatives, heirs, devisees or trustees fail, refuse or neglect to sell any |
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200 | 200 | | stock as required by this subsection, the stock shall revert to and become |
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201 | 201 | | the property of the corporation, and the corporation shall pay to the legal |
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202 | 202 | | representatives, heirs, devisees or trustees the book value of the stock. |
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203 | 203 | | During the period of 14 months prescribed by this subsection, the |
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204 | 204 | | corporation shall not be denied a distributor's license or have its |
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248 | 248 | | distributor's license revoked if the corporation meets all of the other |
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249 | 249 | | requirements necessary to have a distributor's license; |
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250 | 250 | | (2) a copartnership, unless all of the copartners are eligible to receive |
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251 | 251 | | a distributor's license; |
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252 | 252 | | (3) a trust, if any grantor, beneficiary or trustee would be ineligible to |
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253 | 253 | | receive a license under this act for any reason, except that the provisions of |
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254 | 254 | | subsection (a)(6) shall not apply in determining whether a beneficiary |
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255 | 255 | | would be eligible for a license; or |
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256 | 256 | | (4) a person who has a beneficial interest in a manufacturer, retailer, |
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257 | 257 | | farm winery or microbrewery licensed under this act. |
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258 | 258 | | (e) No nonbeverage user's license shall be issued to a corporation, if |
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259 | 259 | | any officer, manager or director of the corporation or any stockholder |
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260 | 260 | | owning in the aggregate more than 25% of the stock of the corporation |
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261 | 261 | | would be ineligible to receive a nonbeverage user's license for any reason |
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262 | 262 | | other than citizenship and residence requirements. |
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263 | 263 | | (f) No microbrewery license, microdistillery license or farm winery |
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264 | 264 | | license shall be issued to a: |
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265 | 265 | | (1) Person who has a beneficial interest in a manufacturer or |
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266 | 266 | | distributor licensed under this act, except as provided in K.S.A. 41-305, |
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267 | 267 | | and amendments thereto; |
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268 | 268 | | (2) person, copartnership or association that has a beneficial interest |
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269 | 269 | | in any retailer licensed under this act or under K.S.A. 41-2702, and |
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270 | 270 | | amendments thereto, except that the spouse of an applicant for a |
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271 | 271 | | microbrewery or farm winery license may own and hold a retailer's license |
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272 | 272 | | if the spouse does not hold a microbrewery or farm winery license issued |
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273 | 273 | | under this act; |
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274 | 274 | | (3) copartnership, unless all of the copartners are qualified to obtain a |
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275 | 275 | | license; |
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276 | 276 | | (4) corporation, unless stockholders owning in the aggregate 50% or |
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277 | 277 | | more of the stock of the corporation would be eligible to receive such |
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278 | 278 | | license and all other stockholders would be eligible to receive such license |
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279 | 279 | | except for reason of citizenship or residency; or |
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280 | 280 | | (5) a trust, if any grantor, beneficiary or trustee would be ineligible to |
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281 | 281 | | receive a license under this act for any reason, except that the provisions of |
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282 | 282 | | subsection (a)(6) shall not apply in determining whether a beneficiary |
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283 | 283 | | would be eligible for a license. |
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284 | 284 | | (g) If the applicant is not a Kansas resident, no license shall be issued |
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285 | 285 | | until the applicant has appointed a citizen of the United States who is a |
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286 | 286 | | resident of Kansas as the applicant's agent and filed with the director a |
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287 | 287 | | duly authenticated copy of a duly executed power of attorney, authorizing |
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288 | 288 | | the agent to accept service of process from the director and the courts of |
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289 | 289 | | this state and to exercise full authority, control and responsibility for the |
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290 | 290 | | conduct of all business and transactions within the state relative to |
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333 | 333 | | 43 SB 15 5 |
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334 | 334 | | alcoholic liquor and the business licensed. The agent must be satisfactory |
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335 | 335 | | to and approved by the director, except that the director shall not approve |
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336 | 336 | | as an agent any person who: |
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337 | 337 | | (1) Has been convicted of a felony under the laws of this state, any |
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338 | 338 | | other state or the United States; |
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339 | 339 | | (2) has had a license issued under the alcoholic liquor or cereal malt |
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340 | 340 | | beverage laws of this or any other state revoked for cause, except that a |
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341 | 341 | | person may be appointed as an agent if the person's license was revoked |
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342 | 342 | | for the conviction of a misdemeanor and 10 years have lapsed since the |
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343 | 343 | | date of the revocation; |
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344 | 344 | | (3) has been convicted of being the keeper or is keeping any property, |
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345 | 345 | | whether real or personal, where sexual relations are being sold or offered |
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346 | 346 | | for sale by a person who is 18 years of age or older or has forfeited bond to |
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347 | 347 | | appear in court to answer charges of being a keeper of any property, |
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348 | 348 | | whether real or personal, where sexual relations are being sold or offered |
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349 | 349 | | for sale by a person who is 18 years of age or older; |
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350 | 350 | | (4) has been convicted of being a proprietor of a gambling house, |
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351 | 351 | | pandering or any other crime opposed to decency and morality or has |
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352 | 352 | | forfeited bond to appear in court to answer charges for any of those |
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353 | 353 | | crimes; or |
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354 | 354 | | (5) is less than 21 years of age. |
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355 | 355 | | (h) The director may issue a license to a person who has been |
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356 | 356 | | convicted of a felony under the laws of this state, any other state or the |
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357 | 357 | | United States if: |
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358 | 358 | | (1) The date of such conviction is more than 10 years prior to the |
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359 | 359 | | date the application for a license is submitted; and |
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360 | 360 | | (2) the director determines that the applicant has demonstrated that |
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361 | 361 | | such person has been sufficiently rehabilitated to merit the public trust. |
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362 | 362 | | Sec. 2. K.S.A. 41-2623 is hereby amended to read as follows: 41- |
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363 | 363 | | 2623. (a) No license shall be issued under the provisions of this act to: |
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364 | 364 | | (1) Any person described in K.S.A. 41-311(a)(1), (2), (4), (5), (6), |
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365 | 365 | | (7), (8), (9), (12), (13) or (15), and amendments thereto, except that: |
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366 | 366 | | (A) The provisions of K.S.A. 41-311(a)(2), and amendments thereto, |
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367 | 367 | | shall not apply if the director determines that a license may be issued |
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368 | 368 | | pursuant to the provisions of K.S.A. 41-311(h), and amendments thereto; |
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369 | 369 | | and |
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370 | 370 | | (B) the provisions of K.S.A. 41-311(a)(7), and amendments thereto, |
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371 | 371 | | shall not apply to nor prohibit the issuance of a license for a class A club to |
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372 | 372 | | an officer of a post home of a congressionally chartered service or fraternal |
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373 | 373 | | organization, or a benevolent association or society thereof. |
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374 | 374 | | (2) A person who has had the person's license revoked for cause |
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375 | 375 | | under the provisions of this act. |
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376 | 376 | | (3) A person who has a beneficial interest in the manufacture, |
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419 | 419 | | 43 SB 15 6 |
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420 | 420 | | preparation or wholesaling or the retail sale of alcoholic liquor or cereal |
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421 | 421 | | malt beverage or a beneficial interest in any other club, drinking |
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422 | 422 | | establishment or caterer licensed hereunder, except that: |
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423 | 423 | | (A) A license for premises located in a hotel may be granted to a |
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424 | 424 | | person who has a beneficial interest in one or more other clubs or drinking |
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425 | 425 | | establishments licensed hereunder if such other clubs or establishments are |
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426 | 426 | | located in hotels. |
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427 | 427 | | (B) A license for a club or drinking establishment that is a restaurant |
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428 | 428 | | may be issued to a person who has a beneficial interest in other clubs or |
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429 | 429 | | drinking establishments that are restaurants. |
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430 | 430 | | (C) A caterer's license may be issued to a person who has a beneficial |
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431 | 431 | | interest in a club or drinking establishment and a license for a club or |
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432 | 432 | | drinking establishment may be issued to a person who has a beneficial |
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433 | 433 | | interest in a caterer. |
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434 | 434 | | (D) A license for a class A club may be granted to an organization of |
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435 | 435 | | which an officer, director or board member is a distributor or retailer |
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436 | 436 | | licensed under the liquor control act if such distributor or retailer sells no |
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437 | 437 | | alcoholic liquor to such club. |
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438 | 438 | | (E) Any person who has a beneficial interest in a microbrewery, |
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439 | 439 | | microdistillery or farm winery licensed pursuant to the Kansas liquor |
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440 | 440 | | control act may be issued any or all of the following: |
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441 | 441 | | (1)(i) Class B club license; |
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442 | 442 | | (2)(ii) drinking establishment license; and |
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443 | 443 | | (3)(iii) caterer's license. |
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444 | 444 | | (F) Any person who has a beneficial interest in a manufacturer |
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445 | 445 | | licensed pursuant to the Kansas liquor control act may be issued one |
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446 | 446 | | drinking establishment license. |
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447 | 447 | | (4) A copartnership, unless all of the copartners are qualified to |
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448 | 448 | | obtain a license. |
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449 | 449 | | (5) A corporation, if any officer, manager or director thereof, or any |
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450 | 450 | | stockholder owning in the aggregate more than 5% of the common or |
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451 | 451 | | preferred stock of such corporation would be ineligible to receive a license |
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452 | 452 | | hereunder for any reason other than citizenship requirements. |
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453 | 453 | | (6) A corporation, if any officer, manager or director thereof, or any |
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454 | 454 | | stockholder owning in the aggregate more than 5% of the common or |
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455 | 455 | | preferred stock of such corporation, has been an officer, manager or |
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456 | 456 | | director, or a stockholder owning in the aggregate more than 5% of the |
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457 | 457 | | common or preferred stock, of a corporation that: |
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458 | 458 | | (A) Has had a license revoked under the provisions of the club and |
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459 | 459 | | drinking establishment act; or |
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460 | 460 | | (B) has been convicted of a violation of the club and drinking |
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461 | 461 | | establishment act or the cereal malt beverage laws of this state. |
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462 | 462 | | (7) A trust, if any grantor, beneficiary or trustee would be ineligible to |
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505 | 505 | | 43 SB 15 7 |
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506 | 506 | | receive a license under this act for any reason, except that the provisions of |
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507 | 507 | | K.S.A. 41-311(a)(6), and amendments thereto, shall not apply in |
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508 | 508 | | determining whether a beneficiary would be eligible for a license. |
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509 | 509 | | (b) No club or drinking establishment license shall be issued under |
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510 | 510 | | the provisions of the club and drinking establishment act to a person who |
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511 | 511 | | does not own the premises for which a license is sought, or does not, at the |
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512 | 512 | | time the application is submitted, have a written lease thereon, except that |
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513 | 513 | | an applicant seeking a license for a premises that is owned by a city or |
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514 | 514 | | county, or is a stadium, arena, convention center, theater, museum, |
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515 | 515 | | amphitheater or other similar premises may submit an executed agreement |
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516 | 516 | | to provide alcoholic beverage services at the premises listed in the |
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517 | 517 | | application in lieu of a lease. |
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518 | 518 | | Sec. 3. K.S.A. 41-2623 and K.S.A. 2024 Supp. 41-311 are hereby |
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519 | 519 | | repealed. |
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520 | 520 | | Sec. 4. This act shall take effect and be in force from and after its |
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521 | 521 | | publication in the statute book. |
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