Source: http://www.kscoplaw.com/KSAs/Ch41Art27.htm
Timestamp: 2019-04-18 18:25:01+00:00

Document:
41-2702 Retailer's license; application; notice; fee; state stamp; license nontransferable.
41-2703 Same; issuance, denial, when; term of license; notice to distributors of nonrenewal, when.
41-2703a LLCs; qualification for licensure.
41-2704 Hours and days of sale; standards; prohibited acts.
41-2705 Loans or gifts from manufacturer or distributor prohibited.
41-2706 Certain sales on credit or in trade prohibited.
41-2708 Revocation or suspension of license; grounds; appeal.
41-2711 Penalties for violation of act.
41-2722 Certain sales practices prohibited; penalties; drink defined.
41-2725 Cereal malt beverage prohibited at state capitol.
41-2726 Sales below cost prohibited.
41-2727 Use of minors to determine compliance with law, exceptions.
41-2728 Title of act; power to regulate cereal malt beverage.
41-2730 (Tentative statute number) Violations of act; issuance of citation.
(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. 2009 Supp. 41-2729, and amendments thereto, but does not include any such liquor which 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of P.L. 98-363 penalizing states for permitting persons under 21 years of age to consume cereal malt beverage are repealed or otherwise invalidated or nullified.
History: L. 1937, ch. 214, § 1; L. 1949, ch. 243, § 1; L. 1978, ch. 189, § 1; L. 1985, ch. 171, § 5; L. 1985, ch. 168, § 7; L. 1987, ch. 182, § 97; L. 2006, ch. 160, § 2; L. 2017, ch. 56, § 7; April 1, 2019.
41-2702. Retailer's license; application; notice; fee; state stamp; license nontransferable.
(a) No retailer 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 to sell on railway cars shall be made to the director as hereinafter provided.
(b) A board of county commissioners shall not issue or renew a 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 before such license is issued. If an original license is granted and issued, the board of county commissioners 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.
(5) 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 violation of any other intoxicating liquor law of any state or of the United States.
(2) for licensure to sell on railway cars, a fee of $100.
(e) Each applicant for a 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. Upon receipt of such application, the director shall authorize a state stamp to be affixed to the license. No 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. The director may refuse to issue a stamp 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) 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) 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. 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.
(h) No license issued under this act shall be transferable.
History: L. 1937, ch. 214, § 2; L. 1949, ch. 244, § 4; L. 1953, ch. 240, § 1; L. 1970, ch. 188, § 1; L. 1978, ch. 189, § 2; L. 1987, ch. 182, § 98; L. 1988, ch. 165, § 6; L. 2001, ch. 5, § 133; L. 2017, ch. 56, § 8; L. 2018, ch. 8, § 3; April 1, 2019.
41-2703. Same; issuance, denial, when; term of license; notice to distributors of nonrenewal, when.
(a) After examination of an application for a retailer's license, the board of county commissioners or the director shall, if they approve the same, 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.
(1) A person who is not a resident of the county in which the place of business covered by the license is located, has not been a resident of such county for at least six months or has not been a resident in good faith of the state of Kansas.
(2) A person who has not been a resident of this state for at least one year immediately preceding application for a retailer's license.
(3) A person who is not of good character and reputation in the community in which the person resides.
(4) A person who is not a citizen of the United States.
(5) 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.
(6) A partnership, unless all the members of the partnership are otherwise qualified to obtain a license.
(7) 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 and residency requirements.
(8) 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.
(9) A person whose spouse would be ineligible to receive a retailer's license for any reason other than citizenship, residence requirements or age, except that this subsection (b) (9) shall not apply in determining eligibility for a renewal license.
(10) A person whose spouse has been convicted of a felony or other crime which 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.
(2) been convicted of a violation of the club and drinking establishment act or the cereal malt beverage laws of this state.
(d) 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.
(4) a special event retailers’ permit shall not be transferable or assignable.
(f) 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.
History: L. 1937, ch. 214, § 3; L. 1949, ch. 244, § 5; L. 1973, ch. 201, § 1; L. 1973, ch. 202, § 1; L. 1978, ch. 189, § 3; L. 1987, ch. 182, § 99; L. 2001, ch. 189, § 5; L. 2009, ch. 87, § 1; L. 2011, ch. 57, § 3; April 28.
41-2703a. LLCs; qualification for licensure.
(a) Notwithstanding any other provision of law, any limited liability company applying for a license under the Kansas cereal malt beverage act shall be required to meet the qualifications for licensure of a corporation under K.S.A. 41-2703, and amendments thereto, except that only those individuals owning in the aggregate 25% or more of the ownership interest in such limited liability company shall be required to meet the qualifications for an individual to obtain a license.
(b) Any limited liability company applying for a license under the Kansas cereal malt beverage act shall submit a copy of its articles of organization and operating agreement to the director in such form and manner as prescribed by the director.
(c) This section shall be a part of and supplemental to the Kansas cereal malt beverage act.
History: L. 2015, ch. 82, § 10; July 1.
41-2704. Hours and days of sale; standards; prohibited acts.
(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.
(2) on Sunday, except in a place of business which is licensed to sell cereal malt beverage for consumption on the premises, which derives not less than 30% of its gross receipts from the sale of food for consumption on the licensed premises and which 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.
(4) for consumption on the licensed premises on Sunday, except in a place of business which is licensed to sell cereal malt beverage for consumption on the premises, which derives not less than 30% of its gross receipts from the sale of food for consumption on the licensed premises and which 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 public.
(2) the licensee's place of business is a licensed food service 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.
(h) Cereal malt beverages may be sold on premises which 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.
History: L. 1937, ch. 214, § 4; L. 1951, ch. 302, § 1; L. 1963, ch. 268, § 1; L. 1965, ch. 316, § 35; L. 1981, ch. 201, § 3; L. 1982, ch. 211, § 2; L. 1985, ch. 171, § 6; L. 1987, ch. 182, § 100; L. 1987, ch. 183, § 4; L. 1994, ch. 166, § 2; L. 2005, ch. 201, § 13; L. 2017, ch. 56, § 9; L. 2018, ch. 8, § 4; April 1, 2019.
41-2705. Loans or gifts from manufacturer or distributor prohibited.
(4) any officer, manager, agent or representative of a manufacturer or distributor.
(b) Any 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.
History: L. 1937, ch. 214, § 5; L. 1947, ch. 238, § 1; L. 1965, ch. 316, § 36; L. 1974, ch. 195, § 4; L. 1975, ch. 253, § 1; L. 1977, ch. 170, § 1; L. 1982, ch. 210, § 3; L. 1987, ch. 182, § 101; Jan. 1, 1988.
41-2706. Certain sales on credit or in trade prohibited.
(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 may sell cereal malt beverages or beer containing not more than 6% alcohol by volume to a consumer on credit pursuant to a credit card which entitles the user to purchase goods or services from at least 100 persons not related to the issuer of the credit card.
History: L. 1949, ch. 244, § 1; L. 1987, ch. 182, § 102; L. 1995, ch. 266, § 5; L. 2017, ch. 56, § 10; April 1, 2019.
No distributor shall sell or furnish cereal malt beverages to a retailer 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.
History: L. 1949, ch. 244, § 2; L. 1987, ch. 182, § 103; Jan. 1, 1988.
41-2708. Revocation or suspension of license; grounds; appeal.
(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.
(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 appeal.
History: L. 1937, ch. 214, § 6; L. 1949, ch. 245, § 1; L. 1951, ch. 302, § 2; L. 1965, ch. 316, § 37; L. 1973, ch. 202, § 2; L. 1976, ch. 145, § 195; L. 1985, ch. 171, § 7; L. 1987, ch. 182, § 104; L. 1995, ch. 258, § 5; L. 2002, ch. 44, § 8; L. 2004, ch. 1, § 2; L. 2009, ch. 87, § 2; L. 2011, ch. 30, § 183; L. 2017, ch. 56, § 11; April 1, 2019.
The attorney general, or any county attorney of the state within his county or any city attorney within his city shall at all times have the power to enjoin any party from selling cereal malt beverages within the county or city notwithstanding said party has a license and permit if it shall appear that the licensee has violated any provision or regulation of this act or any of the rules or regulations prescribed under this act. Injunction proceedings shall be the same as is now prescribed for the enjoining of intoxicating liquor nuisances.
History: L. 1937, ch. 214, § 7; May 1.
41-2711. Penalties for violation of act.
Any person violating any of the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not more than five hundred dollars, or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment.
History: L. 1937, ch. 214, § 8; May 1.
Should any court declare any section, clause or provision of this act to be unconstitutional such decision shall affect only such section, clause or provision so declared unconstitutional and shall not affect any other section, clause or provision of this act.
History: L. 1937, ch. 214, § 9; May 1.
41-2722. Certain sales practices prohibited; penalties; drink defined.
(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).
(3) sell or serve cereal malt beverage 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 or 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.
History: L. 1985, ch. 173, § 5; L. 1986, ch. 185, § 8; L. 2012, ch. 144, § 43; L. 2017, ch. 56, § 12; April 1, 2019.
41-2725. Cereal malt beverage prohibited at state capitol.
(a) No person shall drink or consume cereal malt beverage in the state capitol building or on the grounds of the state capitol building.
(b) Violation of this section is a misdemeanor punishable by a fine of not less than $50 or more than $200 or by imprisonment for not more than six months, or both.
(c) As used in this section, terms have the meanings provided by K.S.A. 41-2701 and amendments thereto.
History: L. 1995, ch. 59, § 2; July 1.
41-2726. Sales below cost prohibited.
(a) No 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.
(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.
History: L. 1996, ch. 154, § 8; L. 2017, ch. 56, § 13; April 1, 2019.
41-2727. Use of minors to determine compliance with law, exceptions.
(a) Any person listed in subsections (b)(1), (b)(2) or (b)(3) may engage or direct a person under the legal age for consumption of cereal malt beverage to violate the provisions of K.S.A. 41-2701, et seq., and amendments thereto, in order to develop a program or system which determines and encourages compliance with the provisions thereof prohibiting the furnishing or sale of cereal malt beverages to a person under the legal age for consumption of cereal malt beverage or the consumption of cereal malt beverages by such persons.
(3) a licensee under the provisions of K.S.A. 41-2701, et seq., and amendments thereto, or such licensee's designee pursuant to a self-compliance program designed to increase compliance with the provisions of K.S.A. 41-2701 et seq., and amendments thereto if such program has been approved by the director.
History: L. 2000, ch. 166, § 7; July 1.
41-2728. Title of act; power to regulate cereal malt beverage.
(a) K.S.A. 41-2701 through 41-2727 and section 14[*], and amendments thereto, shall be known and may be cited as the Kansas cereal malt beverage act.
(b) Except as specifically provided in the Kansas cereal malt beverage act, the power to regulate all phases of the manufacture, distribution, sale, possession, transportation and traffic in cereal malt beverages is vested exclusively in the state and shall be exercised as provided in the Kansas cereal malt beverage act. No city or county shall enact any ordinance or resolution which is in conflict with the provisions of the Kansas cereal malt beverage act and any such ordinance or resolution shall be null and void.
(c) The provisions of this act are severable. If any provision of this act is held to be invalid or unconstitutional, it shall be presumed conclusively that the legislature would have enacted the remainder of this act without such invalid or unconstitutional provision.
History: L. 2005, ch. 201, § 12; July 1.
(a) This act shall be known as the flavored malt beverage act.
(b) "Flavored malt beverage" means a malt beverage which meets the formula definitions as set forth in department of the treasury, alcohol and tobacco tax and trade bureau regulations published January 3, 2005, at 27 CFR Parts 7 and 25.
(c) Notwithstanding any other provision of law, any malt product which meets the formula definitions of 27 CFR Parts 7 and 25 published January 3, 2005, regarding flavored malt beverages shall have imposed upon it the tax rate for malt beverages as set forth in K.S.A. 41-501, and amendments thereto, for beer and cereal malt beverage.
(d) Notwithstanding any other provision of law, any malt product which meets the definitions of 27 CFR Parts 7 and 25 published January 3, 2005, regarding flavored malt beverages shall be deemed in compliance with the labeling requirements of this state when its labeling meets the requirements of 27 CFR Parts 7 and 25 published January 3, 2005.
(e) Any manufacturer or brewer who intends that its products be classified as a flavored malt beverage under this act shall file with the secretary of revenue its registration of such products on a form prescribed by the secretary for such purpose, along with such other documentation as the secretary may require by rules and regulations.
History: L. 2006, ch. 160, § 1; July 1.
41-2730. (Tentative statute number)Violations of act; issuance of citation.
(a) The director, or any properly designated agent of the director, may issue a citation for any violation of 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. 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, has violated a provision of the Kansas liquor control 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 a civil fine not exceeding $1,000 for each violation.
(c) No fine shall be imposed pursuant to this section except upon the written order of the director to the retailer 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.
History: L. 2018, ch. ___, § 1 (HB 2502); July 1.

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