Kansas Administrative Regulations › Agency 14 - KANSAS DEPARTMENT OF REVENUE-DIVISION OF ALCOHOLIC BEVERAGE CONTROL › Article 21 - DRINKING ESTABLISHMENTS › Section 14-21-6 - Change of drinking establishment status

Current through Register Vol. 43, No. 28, July 11, 2024
(a) If a licensee
			 desires to change the status of its license from a drinking establishment to
			 either a class A or class B club, the licensee shall make application, at least
			 45 days prior to the desired date of the change, for the type of license sought
			 and shall voluntarily cancel the current license upon the issuance of the new
			 type license. The licensee shall receive a refund for the license voluntarily
			 cancelled as required by K.A.R. 14-21-7.
(b) If a drinking establishment fails an
			 audit conducted by the director or the secretary to establish that at least 30%
			 of its gross receipts are derived from the sale of food, then that drinking
			 establishment's license as a drinking establishment shall be canceled. The
			 drinking establishment licensee shall have 10 days from the receipt of its
			 notice of cancellation to make application to become a class B club. On the
			 tenth day after receipt of notice of cancellation, the drinking establishment
			 license will be canceled and the drinking establishment shall begin conducting
			 business as a class B club pending the processing of the application for said
			 class B club license. If the application for a class B club license is denied
			 or if the applicant fails to process its application within 30 days, then the
			 applicant shall discontinue operations under the club and drinking
			 establishment act and surrender its license to the director. This provision
			 shall not apply to any drinking establishment located in a county that has
			 eliminated this requirement.
(c)
			 If one of the drinking establishments owned by a licensee which holds multiple
			 licenses pursuant to the provisions of K.A.R. 14-21-8, fails an audit conducted
			 by the director or the secretary to establish that at least 30% of its gross
			 receipts are derived from the sale of food, then that drinking establishment's
			 license as a drinking establishment shall be canceled. The licensee shall have
			 10 days from receipt of notice of cancellation to advise the director, in
			 writing, of its intent to sell the drinking establishment and the date upon
			 which the sale will be effective. If the effective sale date is within 30 days
			 of the delivery of the licensee's notice of intent to sell, then the license
			 shall be canceled on the effective date of the sale. If the licensee fails to
			 give the notice of intent to sell or the effective date is longer than 30 days
			 from the receipt of the licensee's notice of intent to sell, the licensee's
			 license shall be canceled 40 days from the date the licensee receives the
			 director's notice of cancellation and the licensee shall discontinue operations
			 under the club and drinking establishment act and surrender its license to the
			 director. This provision shall not apply to any drinking establishment located
			 in a county that has eliminated this requirement.