Source: http://ksag.washburnlaw.edu/opinions/2002/2002-035.htm
Timestamp: 2019-04-19 02:46:40+00:00

Document:
K.S.A. 41-308(b) prohibits liquor retailers from offering or allowing another to offer automatic teller machine services in or from the licensed premises. Cited herein: K.S.A. 41-308; L. 1992, Ch. 169, § 1; L. 1987, Ch. 182, § 18 and Ch. 292, § 25; L. 1971, Ch. 173, § 1; K.A.R. 14-3-15 (revoked May 1, 1988); 14-10-11; 14-13-13.
You request our opinion regarding the legality of placing automatic teller machines (ATMs) in licensed retail liquor stores. You question whether it makes a difference that such machines are not actually offering any product for sale, but rather are providing only a service.
"(4) distribute to the public, without charge, consumer advertising specialities bearing advertising matter, subject to rules and regulations of the secretary limiting the form and distribution of such specialities so that they are not conditioned on or an inducement to the purchase of alcoholic liquor."
"A retailer shall not permit any other person to use the licensed premises for the purpose of carrying on any business activity other than the sale of alcoholic liquor."
We believe the latter discussion to be the actual holding in the case and therefore do not feel bound by the dicta indicating that the only types of services prohibited by K.S.A. 41-308 are those that are similar to the inducements listed in K.A.R. 14-13-13(g). In any event, K.S.A. 41-308 and the Division's regulations have been significantly amended subsequent to the Court's decision in Willcott. Most notable among these amendments were the Legislature's addition of a specific exception to K.S.A. 41-308 allowing refrigeration or chilling of wine and, at a later date, any alcoholic liquor,(6) the exception for charging a delivery fee for delivery of liquor to other licensees,(7) the exception for sale of lottery tickets,(8) and the exceptions allowing retailers to include in the sale of liquor any goods included by the manufacturer in packaging the liquor and to distribute free consumer advertising specialties.(9) Clearly the Legislature intends the terms "any service" and "thing of value" to mean more than just inducements similar to gifts, prizes, premiums or rebates.
In Attorney General Opinion No. 91-72, this office discussed the meaning of "any service" in the context of the Director's authority to further define the term by regulation. The opinion found that, as used in K.S.A. 41-308, the term "lacks concrete definition but logically prohibits acts done to assist or benefit the consumer." The opinion concluded that while the Director may adopt regulations to define the term, such regulations must conform to "the obvious legislative intent to curtail those items given to a consumer and those services provided to a consumer." Absent further definition by statute or lawfully crafted regulations, "licensed retailer's can only provide the service of selling lottery tickets and charging a fee for delivery to a club, drinking establishment, or caterer. No other service whatsoever is allowed."
Based on these authorities, it is our opinion that K.S.A. 41-308(b) presently prohibits the placement of an operable ATM in a licensed retail liquor store. A licensed retailer may neither directly offer the service an ATM provides, nor allow another to offer that service in or from the licensed premises.
1. See, e.g., K.S.A. 41-308(c), (d).
2. Willcott v. Murphy, 204 Kan. 640 (1970).
3. Revoked May 1, 1988, now codified at K.A.R. 14-13-13(g).
4. Willcott, 204 Kan. at 643.
6. L. 1971, Ch. 173, § 1(b); L. 1992, Ch. 169, § 1(d).
7. L. 1987, Ch. 182, § 18(b).
8. L. 1987, Ch. 292, § 25(c).
9. L. 1992, Ch. 169, § 1(b)(3), (4). See also K.A.R. 14-10-11(b) and 14-13-13(g).

References: § 1
 § 18
 § 25
 § 1
 v. 
 § 1
 § 1
 § 18
 § 25
 § 1