Kansas 2025-2026 Regular Session

Kansas Senate Bill SB15 Latest Draft

Bill / Introduced Version Filed 01/16/2025

                            Session of 2025
SENATE BILL No. 15
By Committee on Federal and State Affairs
1-16
AN ACT concerning alcoholic beverages; relating to eligibility for 
licensure under the Kansas liquor control act and the club and drinking 
establishment act; authorizing the director of alcoholic beverage control 
to issue licenses to convicted felons when such conviction occurred 
more than 10 years prior to application for a license and a 
determination of sufficient rehabilitation is made; amending K.S.A. 41-
2623 and K.S.A. 2024 Supp. 41-311 and repealing the existing 
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 41-311 is hereby amended to read as 
follows: 41-311. (a) No license of any kind shall be issued pursuant to the 
liquor control act to a person:
(1) Who is not a citizen of the United States;
(2) who has been convicted of a felony under the laws of this state, 
any other state or the United States, except as provided in subsection (h);
(3) who has had a license revoked for cause under the provisions of 
the liquor control act, the beer and cereal malt beverage keg registration 
act or who has had any license issued under the cereal malt beverage laws 
of any state revoked for cause except that a license may be issued to a 
person whose license was revoked for the conviction of a misdemeanor at 
any time after the lapse of 10 years following the date of the revocation;
(4) who has been convicted of being the keeper or is keeping any 
property, whether real or personal, where sexual relations are being sold or 
offered for sale by a person who is 18 years of age or older or has forfeited 
bond to appear in court to answer charges of being a keeper of any 
property, whether real or personal, where sexual relations are being sold or 
offered for sale by a person who is 18 years of age or older;
(5) who has been convicted of being a proprietor of a gambling 
house, pandering or any other crime opposed to decency and morality or 
has forfeited bond to appear in court to answer charges for any of those 
crimes;
(6) who is not at least 21 years of age;
(7) who, other than as a member of the governing body of a city or 
county, appoints or supervises any law enforcement officer, who is a law 
enforcement official or who is an employee of the director;
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(8) who intends to carry on the business authorized by the license as 
agent of another;
(9) who at the time of application for renewal of any license issued 
under this act would not be eligible for the license upon a first application, 
except as provided by subsection (a)(12);
(10) who is the holder of a valid and existing license issued under 
article 27 of chapter 41 of the Kansas Statutes Annotated, and amendments 
thereto, unless the person agrees to and does surrender the license to the 
officer issuing the same upon the issuance to the person of a license under 
this act, except such person may be issued a farm winery license pursuant 
to K.S.A. 41-316, and amendments thereto, or a producer license pursuant 
to K.S.A. 41-355, and amendments thereto, and a retailer licensed pursuant 
to K.S.A. 41-2702, and amendments thereto, shall be eligible to receive a 
retailer's license under the Kansas liquor control act;
(11) who does not own the premises for which a license is sought, or 
does not, at the time of application, have a written lease thereon;
(12) whose spouse would be ineligible to receive a license under this 
act for any reason other than citizenship requirements or age, except that 
this paragraph shall not apply in determining eligibility for a renewal 
license or to a person whose spouse is a law enforcement officer;
(13) 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;
(14) who does not provide any data or information required by 
K.S.A. 41-311b, and amendments thereto; or
(15) who, after a hearing before the director, has been found to have 
held an undisclosed beneficial interest in any license issued pursuant to the 
liquor control act that was obtained by means of fraud or any false 
statement made on the application for such license.
(b) No retailer's license shall be issued to:
(1) A person who has a beneficial interest in a manufacturer, 
distributor, farm winery or microbrewery licensed under this act, except 
that the spouse of an applicant for a retailer's license may own and hold a 
farm winery license, microbrewery license, or both, if the spouse does not 
hold a retailer's license issued under this act;
(2) a person who has a beneficial interest in any other retail 
establishment licensed under this act, except that the spouse of a licensee 
may own and hold a retailer's license for another retail establishment;
(3) a copartnership, unless all of the copartners are qualified to obtain 
a license;
(4) a corporation; or
(5) a trust, if any grantor, beneficiary or trustee would be ineligible to 
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receive a license under this act for any reason, except that the provisions of 
subsection (a)(6) shall not apply in determining whether a beneficiary 
would be eligible for a license.
(c) No manufacturer's license shall be issued to:
(1) A corporation, if any officer or director thereof, or any 
stockholder owning in the aggregate more than 25% of the stock of the 
corporation would be ineligible to receive a manufacturer's license for any 
reason other than citizenship requirements;
(2) a copartnership, unless all of the copartners would be individually 
eligible to receive a manufacturer's license under this act;
(3) a trust, if any grantor, beneficiary or trustee would be ineligible to 
receive a license under this act for any reason, except that the provisions of 
subsection (a)(6) shall not apply in determining whether a beneficiary 
would be eligible for a license; or
(4) a person who has a beneficial interest in a distributor, retailer, 
farm winery or microbrewery licensed under this act, except as provided in 
K.S.A. 41-305, and amendments thereto.
(d) No distributor's license shall be issued to:
(1) A corporation, if any officer, director or stockholder of the 
corporation would be ineligible to receive a distributor's license for any 
reason. It shall be unlawful for any stockholder of a corporation licensed 
as a distributor to transfer any stock in the corporation to any person who 
would be ineligible to receive a distributor's license for any reason, and 
any such transfer shall be null and void, except that: (A) If any stockholder 
owning stock in the corporation dies and an heir or devisee to whom stock 
of the corporation descends by descent and distribution or by will is 
ineligible to receive a distributor's license, the legal representatives of the 
deceased stockholder's estate and the ineligible heir or devisee shall have 
14 months from the date of the death of the stockholder within which to 
sell the stock to a person eligible to receive a distributor's license, any such 
sale by a legal representative to be made in accordance with the provisions 
of the probate code; or (B) if the stock in any such corporation is the 
subject of any trust and any trustee or beneficiary of the trust who is 21 
years of age or older is ineligible to receive a distributor's license, the 
trustee, within 14 months after the effective date of the trust, shall sell the 
stock to a person eligible to receive a distributor's license and hold and 
disburse the proceeds in accordance with the terms of the trust. If any legal 
representatives, heirs, devisees or trustees fail, refuse or neglect to sell any 
stock as required by this subsection, the stock shall revert to and become 
the property of the corporation, and the corporation shall pay to the legal 
representatives, heirs, devisees or trustees the book value of the stock. 
During the period of 14 months prescribed by this subsection, the 
corporation shall not be denied a distributor's license or have its 
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distributor's license revoked if the corporation meets all of the other 
requirements necessary to have a distributor's license;
(2) a copartnership, unless all of the copartners are eligible to receive 
a distributor's license;
(3) a trust, if any grantor, beneficiary or trustee would be ineligible to 
receive a license under this act for any reason, except that the provisions of 
subsection (a)(6) shall not apply in determining whether a beneficiary 
would be eligible for a license; or
(4) a person who has a beneficial interest in a manufacturer, retailer, 
farm winery or microbrewery licensed under this act.
(e) No nonbeverage user's license shall be issued to a corporation, if 
any officer, manager or director of the corporation or any stockholder 
owning in the aggregate more than 25% of the stock of the corporation 
would be ineligible to receive a nonbeverage user's license for any reason 
other than citizenship and residence requirements.
(f) No microbrewery license, microdistillery license or farm winery 
license shall be issued to a:
(1) Person who has a beneficial interest in a manufacturer or 
distributor licensed under this act, except as provided in K.S.A. 41-305, 
and amendments thereto;
(2) person, copartnership or association that has a beneficial interest 
in any retailer licensed under this act or under K.S.A. 41-2702, and 
amendments thereto, except that the spouse of an applicant for a 
microbrewery or farm winery license may own and hold a retailer's license 
if the spouse does not hold a microbrewery or farm winery license issued 
under this act;
(3) copartnership, unless all of the copartners are qualified to obtain a 
license;
(4) corporation, unless stockholders owning in the aggregate 50% or 
more of the stock of the corporation would be eligible to receive such 
license and all other stockholders would be eligible to receive such license 
except for reason of citizenship or residency; or
(5) a trust, if any grantor, beneficiary or trustee would be ineligible to 
receive a license under this act for any reason, except that the provisions of 
subsection (a)(6) shall not apply in determining whether a beneficiary 
would be eligible for a license.
(g) If the applicant is not a Kansas resident, no license shall be issued 
until the applicant has appointed a citizen of the United States who is a 
resident of Kansas as the applicant's agent and filed with the director a 
duly authenticated copy of a duly executed power of attorney, authorizing 
the agent to accept service of process from the director and the courts of 
this state and to exercise full authority, control and responsibility for the 
conduct of all business and transactions within the state relative to 
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alcoholic liquor and the business licensed. The agent must be satisfactory 
to and approved by the director, except that the director shall not approve 
as an agent any person who:
(1) Has been convicted of a felony under the laws of this state, any 
other state or the United States;
(2) has had a license issued under the alcoholic liquor or cereal malt 
beverage laws of this or any other state revoked for cause, except that a 
person may be appointed as an agent if the person's license was revoked 
for the conviction of a misdemeanor and 10 years have lapsed since the 
date of the revocation;
(3) has been convicted of being the keeper or is keeping any property, 
whether real or personal, where sexual relations are being sold or offered 
for sale by a person who is 18 years of age or older or has forfeited bond to 
appear in court to answer charges of being a keeper of any property, 
whether real or personal, where sexual relations are being sold or offered 
for sale by a person who is 18 years of age or older;
(4) has been convicted of being a proprietor of a gambling house, 
pandering or any other crime opposed to decency and morality or has 
forfeited bond to appear in court to answer charges for any of those 
crimes; or
(5) is less than 21 years of age.
(h) The director may issue a license to a person who has been 
convicted of a felony under the laws of this state, any other state or the 
United States if:
(1) The date of such conviction is more than 10 years prior to the 
date the application for a license is submitted; and
(2) the director determines that the applicant has demonstrated that 
such person has been sufficiently rehabilitated to merit the public trust.
Sec. 2. K.S.A. 41-2623 is hereby amended to read as follows: 41-
2623. (a) No license shall be issued under the provisions of this act to:
(1) Any person described in K.S.A. 41-311(a)(1), (2), (4), (5), (6), 
(7), (8), (9), (12), (13) or (15), and amendments thereto, except that: 
(A) The provisions of K.S.A. 41-311(a)(2), and amendments thereto, 
shall not apply if the director determines that a license may be issued 
pursuant to the provisions of K.S.A. 41-311(h), and amendments thereto; 
and
(B) the provisions of K.S.A. 41-311(a)(7), and amendments thereto, 
shall not apply to nor prohibit the issuance of a license for a class A club to 
an officer of a post home of a congressionally chartered service or fraternal 
organization, or a benevolent association or society thereof.
(2) A person who has had the person's license revoked for cause 
under the provisions of this act.
(3) A person who has a beneficial interest in the manufacture, 
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preparation or wholesaling or the retail sale of alcoholic liquor or cereal 
malt beverage or a beneficial interest in any other club, drinking 
establishment or caterer licensed hereunder, except that:
(A) A license for premises located in a hotel may be granted to a 
person who has a beneficial interest in one or more other clubs or drinking 
establishments licensed hereunder if such other clubs or establishments are 
located in hotels.
(B) A license for a club or drinking establishment that is a restaurant 
may be issued to a person who has a beneficial interest in other clubs or 
drinking establishments that are restaurants.
(C) A caterer's license may be issued to a person who has a beneficial 
interest in a club or drinking establishment and a license for a club or 
drinking establishment may be issued to a person who has a beneficial 
interest in a caterer.
(D) A license for a class A club may be granted to an organization of 
which an officer, director or board member is a distributor or retailer 
licensed under the liquor control act if such distributor or retailer sells no 
alcoholic liquor to such club.
(E) Any person who has a beneficial interest in a microbrewery, 
microdistillery or farm winery licensed pursuant to the Kansas liquor 
control act may be issued any or all of the following: 
(1)(i) Class B club license; 
(2)(ii) drinking establishment license; and 
(3)(iii) caterer's license.
(F) Any person who has a beneficial interest in a manufacturer 
licensed pursuant to the Kansas liquor control act may be issued one 
drinking establishment license.
(4) A copartnership, unless all of the copartners are qualified to 
obtain a license.
(5) A corporation, if any officer, manager or director thereof, or any 
stockholder owning in the aggregate more than 5% of the common or 
preferred stock of such corporation would be ineligible to receive a license 
hereunder for any reason other than citizenship requirements.
(6) A corporation, if any officer, manager or director thereof, or any 
stockholder owning in the aggregate more than 5% of the common or 
preferred stock of such corporation, has been an officer, manager or 
director, or a stockholder owning in the aggregate more than 5% of the 
common or preferred stock, of a corporation that:
(A) Has had a license revoked under the provisions of the club and 
drinking establishment act; or
(B) has been convicted of a violation of the club and drinking 
establishment act or the cereal malt beverage laws of this state.
(7) A trust, if any grantor, beneficiary or trustee would be ineligible to 
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receive a license under this act for any reason, except that the provisions of 
K.S.A. 41-311(a)(6), and amendments thereto, shall not apply in 
determining whether a beneficiary would be eligible for a license.
(b) No club or drinking establishment license shall be issued under 
the provisions of the club and drinking establishment act to a person who 
does not own the premises for which a license is sought, or does not, at the 
time the application is submitted, have a written lease thereon, except that 
an applicant seeking a license for a premises that is owned by a city or 
county, or is a stadium, arena, convention center, theater, museum, 
amphitheater or other similar premises may submit an executed agreement 
to provide alcoholic beverage services at the premises listed in the 
application in lieu of a lease.
Sec. 3. K.S.A. 41-2623 and K.S.A. 2024 Supp. 41-311 are hereby 
repealed.
Sec. 4. This act shall take effect and be in force from and after its 
publication in the statute book.
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