HOUSE BILL No. 2103

      An Act concerning intoxicating liquors and beverages; relating to the regulation and con-
      sumption thereof; amending K.S.A. 41-102, 41-302 and 41-308a and K.S.A. 1997 Supp.
      41-719, as amended by section 8 of 1998 House Bill No. 2899, and repealing the existing
      sections.

Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 41-102 is hereby amended to read as follows: 41-
102. As used in this act, unless the context clearly requires otherwise:

    (a) ``Alcohol'' means the product of distillation of any fermented liq-
uid, whether rectified or diluted, whatever its origin, and includes syn-
thetic ethyl alcohol but does not include denatured alcohol or wood al-
cohol.

    (b) ``Alcoholic liquor'' means alcohol, spirits, wine, beer and every
liquid or solid, patented or not, containing alcohol, spirits, wine or beer
and capable of being consumed as a beverage by a human being, but shall
not include any cereal malt beverage.

    (c) ``Beer'' means a beverage, containing more than 3.2% alcohol by
weight, obtained by alcoholic fermentation of an infusion or concoction
of barley, or other grain, malt and hops in water and includes beer, ale,
stout, lager beer, porter and similar beverages having such alcoholic con-
tent.

    (d) ``Caterer'' has the meaning provided by K.S.A. 41-2601, and
amendments thereto.

    (e) ``Cereal malt beverage'' has the meaning provided by K.S.A. 41-
2701, and amendments thereto.

    (f) ``Club'' has the meaning provided by K.S.A. 41-2601, and amend-
ments thereto.

    (g) ``Director'' means the director of alcoholic beverage control of the
department of revenue.

    (h) ``Distributor'' means the person importing or causing to be im-
ported into the state, or purchasing or causing to be purchased within
the state, alcoholic liquor for sale or resale to retailers licensed under this
act or cereal malt beverage for sale or resale to retailers licensed under
K.S.A. 41-2702, and amendments thereto.

    (i) ``Domestic beer'' means beer which contains not more than 8%
alcohol by weight and which is manufactured from agricultural products
grown in this state.

    (j) ``Domestic fortified wine'' means wine which contains more than
14%, but not more than 20% alcohol by volume and which is manufac-
tured from agricultural products grown in this state without rectification.

    (j) (k) ``Domestic table wine'' means wine which contains not more
than 14% alcohol by volume and which is manufactured without rectifi-
cation or fortification from agricultural products grown in this state.

    (k) (l) ``Drinking establishment'' has the meaning provided by K.S.A.
41-2601, and amendments thereto.

    (l) (m) ``Farm winery'' means a winery licensed by the director to
manufacture, store and sell domestic table wine and domestic fortified
wine.

    (m) (n) ``Manufacture'' means to distill, rectify, ferment, brew, make,
mix, concoct, process, blend, bottle or fill an original package with any
alcoholic liquor, beer or cereal malt beverage.

    (n) (o) (1) ``Manufacturer'' means every brewer, fermenter, distiller,
rectifier, wine maker, blender, processor, bottler or person who fills or
refills an original package and others engaged in brewing, fermenting,
distilling, rectifying or bottling alcoholic liquor, beer or cereal malt bev-
erage.

    (2) ``Manufacturer'' does not include a microbrewery or a farm win-
ery.

    (o) (p) ``Microbrewery'' means a brewery licensed by the director to
manufacture, store and sell domestic beer.

    (p) (q) ``Minor'' means any person under 21 years of age.

    (q) (r) ``Nonbeverage user'' means any manufacturer of any of the
products set forth and described in K.S.A. 41-501, and amendments
thereto, when the products contain alcohol or wine, and all laboratories
using alcohol for nonbeverage purposes.

    (r) (s) ``Original package'' means any bottle, flask, jug, can, cask, bar-
rel, keg, hogshead or other receptacle or container whatsoever, used,
corked or capped, sealed and labeled by the manufacturer of alcoholic
liquor, to contain and to convey any alcoholic liquor. Original container
does not include a sleeve.

    (s) (t) ``Person'' means any natural person, corporation, partnership,
trust or association.

    (t) (u) ``Primary American source of supply'' means the manufacturer,
the owner of alcoholic liquor at the time it becomes a marketable product
or the manufacturer's or owner's exclusive agent who, if the alcoholic
liquor cannot be secured directly from such manufacturer or owner by
American wholesalers, is the source closest to such manufacturer or
owner in the channel of commerce from which the product can be se-
cured by American wholesalers.

    (u) (v) (1) ``Retailer'' means a person who sells at retail, or offers for
sale at retail, alcoholic liquors.

    (2) ``Retailer'' does not include a microbrewery or a farm winery.

    (v) (w) ``Sale'' means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration and includes all sales
made by any person, whether principal, proprietor, agent, servant or em-
ployee.

    (w) (x) ``Salesperson'' means any natural person who:

    (1) Procures or seeks to procure an order, bargain, contract or agree-
ment for the sale of alcoholic liquor or cereal malt beverage; or

    (2) is engaged in promoting the sale of alcoholic liquor or cereal malt
beverage, or in promoting the business of any person, firm or corporation
engaged in the manufacturing and selling of alcoholic liquor or cereal
malt beverage, whether the seller resides within the state of Kansas and
sells to licensed buyers within the state of Kansas, or whether the seller
resides without the state of Kansas and sells to licensed buyers within the
state of Kansas.

    (x) (y) ``Secretary'' means the secretary of revenue.

    (y) (z) (1) ``Sell at retail'' and ``sale at retail'' refer to and mean sales
for use or consumption and not for resale in any form and sales to clubs,
licensed drinking establishments, licensed caterers or holders of tempo-
rary permits.

    (2) ``Sell at retail'' and ``sale at retail'' do not refer to or mean sales
by a distributor, a microbrewery, a farm winery, a licensed club, a licensed
drinking establishment, a licensed caterer or a holder of a temporary
permit.

    (z) (aa) ``To sell'' includes to solicit or receive an order for, to keep
or expose for sale and to keep with intent to sell.

    (aa) (bb) ``Sleeve'' means a package of two or more 50-milliliter
(3.2-fluid-ounce) containers of spirits.

    (bb) (cc) ``Spirits'' means any beverage which contains alcohol ob-
tained by distillation, mixed with water or other substance in solution,
and includes brandy, rum, whiskey, gin or other spirituous liquors, and
such liquors when rectified, blended or otherwise mixed with alcohol or
other substances.

    (cc) (dd) ``Supplier'' means a manufacturer of alcoholic liquor or ce-
real malt beverage or an agent of such manufacturer, other than a sales-
person.

    (dd) (ee) ``Temporary permit'' has the meaning provided by K.S.A.
41-2601, and amendments thereto.

    (ee) (ff) ``Wine'' means any alcoholic beverage obtained by the normal
alcoholic fermentation of the juice of sound, ripe grapes, fruits, berries
or other agricultural products, including such beverages containing added
alcohol or spirits or containing sugar added for the purpose of correcting
natural deficiencies.

    Sec. 2. K.S.A. 41-302 is hereby amended to read as follows: 41-302.
(a) The question of licensing the retail sale of alcoholic liquors by the
package shall be submitted by the governing body of any city at any reg-
ular general city election occurring in such city whenever a petition re-
questing such submission has been filed with the city clerk of any such
city as hereinafter provided.

    Such question shall not be submitted at any regular general city election
in any city more often than once in any four years. In cities of the first
and second class, any such petition shall be signed by such number of
electors of such city as shall at least equal 30% which equals 30% or more
of the total vote cast in such city at the last general election for the office
of secretary of state; and. In cities of the third class, any such petition
shall be signed by such number of electors of such city as shall at least
equal 40% which equals 40% or more of the total vote cast at the last
general city election held in such city of the third class for candidates for
the city office for which the greatest number of total votes were cast.
Each sheet of each petition shall comply with the provisions of K.S.A. 25-
3601 through 25-3607, and amendments thereto. No signature on such
petition shall be valid unless appended to the petition within the last 90
days prior to the date of filing the petition with the city clerk.

    Such petition shall be filed not less than 40 nor more than 60 days prior
to the date of the election. After any such petition has been filed no
signature shall be withdrawn and no signature shall be added. The gov-
erning body of the city shall have the power to determine the sufficiency
of any such petition. Any person who signs a proposal or petition contem-
plated under authorized by this section and who knowingly is not a qual-
ified elector in the place where such proposal or petition is made, or who
aids or abets any other persons in doing any of the acts mentioned, or
any person who bribes, gives or pays any money or thing of value to any
person directly or indirectly to induce such person to sign such proposal
or petition shall be guilty of a misdemeanor and upon conviction thereof
shall be punished by fine of not more than $300 or by imprisonment of
not more than 90 days, or by both such fine and imprisonment in the
discretion of the court.

    (b) Upon the ballot the proposition shall be stated as follows:

``Shall the sale of alcoholic liquors by the package YES

be licensed in (here insert the name of the city)?''   NO

    Voters desiring to vote in favor of the sale of alcoholic liquors by the
package shall place a cross or check mark in the square opposite the word
``Yes'' and those desiring to vote against the sale of alcoholic liquor by the
package shall place a cross or check mark in the square opposite the word
``No.''

    (c) Upon the filing of a sufficient petition or upon the adoption of a
proper resolution as herein provided, the governing body shall call any
election required by this section and notice of such election shall be given
in like manner as now provided by law for the notice of bond elections
in such city the manner provided by the general bond law. The provisions
of the laws of this state relating to election officers, voting places, election
places and blanks, preparation and form of ballots, information to voters,
delivery of ballots, calling of elections, conduct of elections, manner of
voting, counting of votes, records and certificates of election, and recounts
of votes, so far as applicable, shall apply to voting on the proposition under
the provisions of this act.

    (d) The majority of those voting on the proposition shall be manda-
tory upon the director insofar as licensing the sale of such liquors therein
by the package is concerned. In the absence of any vote on the question
of licensing the sale of such liquors in cities of the first and second class
wherein a majority of the qualified electors of such city who voted on the
proposition to amend section 10 of article 15 of the constitution of the
state of Kansas at the general election held in November, 1948, shall have
voted in favor of the adoption of such proposition and in cities of the
third class located in townships wherein a majority of the qualified elec-
tors voted in favor of such constitutional amendment and in the absence
of any further vote in cities of the first, second or third class in which a
majority of the qualified electors of such city shall have voted at any
special or general city election in favor of the licensing of the sale of
alcoholic liquor by the package, the director shall continue to issue li-
censes to sell the same by the package therein for periods of one year,
subject to all the terms and conditions of this act.

    (e) If a majority of the electors voting at any such election shall vote
against licensing the sale of alcoholic liquors by the package, the holder
of any valid existing retailer's license for premises in such city shall have
the right to continue to operate under such license for a period not to
exceed 90 days after the result of such election is canvassed or until the
expiration of such license, whichever period of time is the shorter. In the
event that If such period of time expires before the expiration of the term
for which the retailer's license was issued, then such licensee shall be
entitled to a refund of that portion of the license period which is una-
vailable to such licensee in accordance with rules and regulations estab-
lished by the secretary of revenue.

    (f) For the purpose of determining as provided in K.S.A. 41-301, and
amendments thereto, and in this section whether a majority of the qual-
ified electors of a township in which a city of the third class is located
voted against the adoption of the liquor amendment at the general elec-
tion held in November, 1948, if any city of the third class is located in
two or more townships, the total vote for and against the amendment in
all the townships in which such city is located shall be used to determine
whether such city is located in a township in which a majority of the
qualified electors voted against the amendment.

    Sec. 3. K.S.A. 41-308a is hereby amended to read as follows: 41-
308a. (a) A farm winery license shall allow:

    (1) The manufacture of domestic table wine and domestic fortified
wine and the storage thereof;

    (2) the sale of wine, manufactured by the licensee, to licensed wine
distributors, retailers, clubs, drinking establishments and caterers;

    (3) the sale, on the licensed premises in the original unopened con-
tainer to consumers for consumption off the licensed premises, of wine
manufactured by the licensee;

    (4) the serving on the licensed premises of samples of wine manu-
factured by the licensee or imported under subsection (f), if the premises
are located in a county where the sale of alcoholic liquor is permitted by
law in licensed drinking establishments; and

    (5) if the licensee is also licensed as a club or drinking establishment,
the sale of domestic wine, domestic fortified wine and other alcoholic
liquor for consumption on the licensed premises as authorized by the
club and drinking establishment act.

    (b) Upon application and payment of the fee prescribed by K.S.A.
41-310, and amendments thereto, by a farm winery licensee, the director
may issue not to exceed two winery outlet licenses to the farm winery
licensee. A winery outlet license shall allow:

    (1) The sale, on the licensed premises in the original unopened con-
tainer to consumers for consumption off the licensed premises, of wine
manufactured by the licensee; and

    (2) the serving on the licensed premises of samples of wine manu-
factured by the licensee or imported under subsection (f), if the premises
are located in a county where the sale of alcoholic liquor is permitted by
law in licensed drinking establishments.

    (c) Not less than 60% of the products utilized in the manufacture of
domestic table wine and domestic fortified wine by a farm winery shall
be grown in Kansas except when a lesser proportion is authorized by the
director based upon the director's findings and judgment. The label of
domestic wine and domestic fortified wine shall indicate that a majority
of the products utilized in the manufacture of the wine at such winery
were grown in Kansas.

    (d) A farm winery having a capacity of 50,000 gallons per year or more
which sells wine to any distributor shall be required to comply with all
provisions of article 4 of chapter 41 of the Kansas Statutes Annotated and
of K.S.A. 41-701 through 41-705 and 41-709, and amendments thereto,
in the same manner and subject to the same penalties as a manufacturer.

    (e) A farm winery or winery outlet may sell domestic wine and do-
mestic fortified wine in the original unopened container to consumers for
consumption off the licensed premises at any time between 6 a.m. and
12 midnight on any day except Sunday and between 12 noon and 6 p.m.
on Sunday. If authorized by subsection (a), a farm winery may serve sam-
ples of domestic wine, domestic fortified wine and wine imported under
subsection (f) and serve and sell domestic wine, domestic fortified wine
and other alcoholic liquor for consumption on the licensed premises at
any time when a club or drinking establishment is authorized to serve
and sell alcoholic liquor. If authorized by subsection (b), a winery outlet
may serve samples of domestic wine, domestic fortified wine and wine
imported under subsection (f) at any time when the winery outlet is au-
thorized to sell domestic wine and domestic fortified wine.

    (f) The director may issue to the Kansas state fair or any bona fide
group of grape growers or wine makers a permit to import into this state
small quantities of wines. Such wine shall be used only for bona fide
educational and scientific tasting programs and shall not be resold. Such
wine shall not be subject to the tax imposed by K.S.A. 41-501,and amend-
ments thereto. The permit shall specifically identify specifically the brand
and type of wine to be imported, the quantity to be imported, the tasting
programs for which the wine is to be used and the times and locations of
such programs. The secretary shall adopt rules and regulations governing
the importation of wine pursuant to this subsection and the conduct of
tasting programs for which such wine is imported.

    (g) A farm winery license or winery outlet license shall apply only to
the premises described in the application and in the license issued and
only one location shall be described in the license.

    (h) No farm winery or winery outlet shall:

    (1) Employ any person under the age of 18 years in connection with
the manufacture, sale or serving of any alcoholic liquor;

    (2) permit any employee of the licensee who is under the age of 21
years to work on the licensed premises at any time when not under the
on-premise supervision of either the licensee or an employee of the li-
censee who is 21 years of age or over;

    (3) employ any person under 21 years of age in connection with mix-
ing or dispensing alcoholic liquor; or

    (4) employ any person in connection with the manufacture or sale of
alcoholic liquor if the person has been convicted of a felony.

    (i) Whenever a farm winery or winery outlet licensee is convicted of
a violation of the Kansas liquor control act, the director may revoke the
licensee's license and order forfeiture of all fees paid for the license, after
a hearing before the director for that purpose in accordance with the
provisions of the Kansas administrative procedure act.

    (j) This section shall be part of and supplemental to the Kansas liquor
control act.

    Sec. 4. K.S.A. 1997 Supp. 41-719, as amended by section 8 of 1998
House Bill No. 2899, is hereby amended to read as follows: 41-719. (a)
No person shall drink or consume alcoholic liquor on the public streets,
alleys, roads or highways or inside vehicles while on the public streets,
alleys, roads or highways.

    (b) No person shall drink or consume alcoholic liquor on private
property except:

    (1) On premises where the sale of liquor by the individual drink is
authorized by the club and drinking establishment act;

    (2) upon private property by a person occupying such property as an
owner or lessee of an owner and by the guests of such person, if no charge
is made for the serving or mixing of any drink or drinks of alcoholic liquor
or for any substance mixed with any alcoholic liquor and if no sale of
alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
takes place;

    (3) in a lodging room of any hotel, motel or boarding house by the
person occupying such room and by the guests of such person, if no
charge is made for the serving or mixing of any drink or drinks of alcoholic
liquor or for any substance mixed with any alcoholic liquor and if no sale
of alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
takes place;

    (4) in a private dining room of a hotel, motel or restaurant, if the
dining room is rented or made available on a special occasion to an in-
dividual or organization for a private party and if no sale of alcoholic liquor
in violation of K.S.A. 41-803, and amendments thereto, takes place; or

    (5) on the premises of a microbrewery or farm winery, if authorized
by K.S.A. 41-308a or 41-308b, and amendments thereto.

    (c) No person shall drink or consume alcoholic liquor on public prop-
erty except:

    (1) On real property leased by a city to others under the provisions
of K.S.A. 12-1740 through 12-1749, and amendments thereto, if such real
property is actually being used for hotel or motel purposes or purposes
incidental thereto.

    (2) In any state-owned or operated building or structure, and on the
surrounding premises, which is furnished to and occupied by any state
officer or employee as a residence.

    (3) On premises licensed as a club or drinking establishment and
located on property owned or operated by an airport authority created
pursuant to chapter 27 of the Kansas Statutes Annotated or established
by a city having a population of more than 200,000.

    (4) On the state fair grounds on the day of any race held thereon
pursuant to the Kansas parimutuel racing act.

    (5) On the state fairgrounds, if such liquor is domestic wine or wine
imported under subsection (e) of K.S.A. 41-308a, and amendments
thereto, and is consumed only for purposes of judging competitions.

    (6) In the state historical museum provided for by K.S.A. 76-2036,
and amendments thereto, on the surrounding premises and in any other
building on such premises, as authorized by rules and regulations of the
state historical society.

    (7) On the premises of any state-owned historic site under the juris-
diction and supervision of the state historical society, on the surrounding
premises and in any other building on such premises, as authorized by
rules and regulations of the state historical society.

    (8) In a lake resort within the meaning of K.S.A. 32-867, and amend-
ments thereto, on state-owned or leased property.

    (9) On property exempted from this subsection (c) pursuant to sub-
section (d), (e), (f), (g) or (h).

    (d) Any city may exempt, by ordinance, from the provisions of sub-
section (c) specified property the title of which is vested in such city.

    (e) The board of county commissioners of any county may exempt,
by resolution, from the provisions of subsection (c) specified property the
title of which is vested in such county.

    (f) The state board of regents may exempt from the provisions of
subsection (c) specified property which is under the control of such board
and which is not used for classroom instruction, where alcoholic liquor
may be consumed in accordance with policies adopted by such board.

    (g) The board of regents of Washburn university may exempt from
the provisions of subsection (c) the Mulvane art center and the Bradbury
Thompson alumni center on the campus of Washburn university, and
other specified property the title of which is vested in such board and
which is not used for classroom instruction, where alcoholic liquor may
be consumed in accordance with policies adopted by such board.

    (h) Any city may exempt, by ordinance, from the provisions of sub-
section (c) any national guard armory in which such city has a leasehold
interest, if the Kansas military board consents to the exemption.

    (i) The provisions of subsection (c) shall not apply to functions or
activities held in the Hiram Price Dillon house or on its surrounding
premises, except to the extent limitations are established in policies
adopted by the legislative coordinating council, as provided by K.S.A. 75-
3682, and amendments thereto.

    (i) (j) Violation of any provision of this section is a misdemeanor pun-
ishable by a fine of not less than $50 or more than $200 or by impris-
onment for not more than six months, or both.

    Sec. 5. K.S.A. 41-102, 41-302 and 41-308a and K.S.A. 1997 Supp.
41-719, as amended by section 8 of 1998 House Bill No. 2899, are hereby
repealed.

    Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.

I hereby certify that the above Bill originated in the
House, and passed that body

__________________________________

House adopted
Conference Committee Report __________________________

__________________________________

Speaker of the House.

__________________________________

Chief Clerk of the House.

Passed the Senate
as amended __________________________

Senate adopted
Conference Committe Report __________________________

__________________________________

President of the Senate

__________________________________

Secretary of the Senate.

Approved__________________________

__________________________________

Governor.