[As Amended by Senate Committee of the Whole]
         

          Session of 1998
                   
SENATE BILL No. 581
         
By Committee on Federal and State Affairs
         
2-3
          10             AN ACT concerning the sale of alcoholic liquor; relating to certain elec-
11             tions; amending K.S.A. 41-302 and repealing the existing section. [41-
12             102, 41-302 and 41-308a and repealing the existing sections.]
13            
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 41-302 is hereby amended to read as follows: 41-
16       302. (a) The question of licensing the retail sale of alcoholic liquors by
17       the package shall be submitted by the governing body of any city at any
18       regular general city election occurring in such city whenever a petition
19       requesting such submission has been filed with the city clerk of any such
20       city as hereinafter provided.
21           Such question shall not be submitted at any regular general city election
22       in any city more often than once in any four years. In cities of the first
23       and second class, any such petition shall be signed by such number of
24       electors of such city as shall at least equal 30% which equals 30% or more
25       of the total vote cast in such city at the last general election for the office
26       of secretary of state; and. In cities of the third class, any such petition
27       shall be signed by such number of electors of such city as shall at least
28       equal 40% which equals 40% or more of the total vote cast at the last
29       general city election held in such city of the third class for candidates for
30       the city office for which the greatest number of total votes were cast.
31       Each sheet of each petition shall comply with the provisions of K.S.A. 25-
32       3601 through 25-3607, and amendments thereto. No signature on such
33       petition shall be valid unless appended to the petition within the last 90
34       days prior to the date of filing the petition with the city clerk.
35           Such petition shall be filed not less than 40 nor more than 60 days prior
36       to the date of the election. After any such petition has been filed no
37       signature shall be withdrawn and no signature shall be added. The gov-
38       erning body of the city shall have the power to determine the sufficiency
39       of any such petition. Any person who signs a proposal or petition contem-
40       plated under authorized by this section and who knowingly is not a qual-
41       ified elector in the place where such proposal or petition is made, or who
42       aids or abets any other persons in doing any of the acts mentioned, or
43       any person who bribes, gives or pays any money or thing of value to any

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  1       person directly or indirectly to induce such person to sign such proposal
  2       or petition shall be guilty of a misdemeanor and upon conviction thereof
  3       shall be punished by fine of not more than $300 or by imprisonment of
  4       not more than 90 days, or by both such fine and imprisonment in the
  5       discretion of the court.
  6           (b) Upon the ballot the proposition shall be stated as follows:
  7           ``Shall the sale of alcoholic liquors by the package be licensed in (here insert YES  
  8       the name of the city)?''                                                         NO  
  9           Voters desiring to vote in favor of the sale of alcoholic liquors by the
10       package shall place a cross in the square opposite the word ``Yes'' and
11       those desiring to vote against the sale of alcoholic liquor by the package
12       shall place a cross in the square opposite the word ``No.''
13           (c) Upon the filing of a sufficient petition or upon the adoption of a
14       proper resolution as herein provided, the governing body shall call any
15       election required by this section and notice of such election shall be given
16       in like manner as now provided by law for the notice of bond elections
17       in such city the manner provided by the general bond law. The provisions
18       of the laws of this state relating to election officers, voting places, election
19       places and blanks, preparation and form of ballots, information to voters,
20       delivery of ballots, calling of elections, conduct of elections, manner of
21       voting, counting of votes, records and certificates of election, and recounts
22       of votes, so far as applicable, shall apply to voting on the proposition under
23       the provisions of this act.
24           (d) The majority of those voting on the proposition shall be manda-
25       tory upon the director insofar as licensing the sale of such liquors therein
26       by the package is concerned. In the absence of any vote on the question
27       of licensing the sale of such liquors in cities of the first and second class
28       wherein a majority of the qualified electors of such city who voted on the
29       proposition to amend section 10 of article 15 of the constitution of the
30       state of Kansas at the general election held in November, 1948, shall have
31       voted in favor of the adoption of such proposition and in cities of the
32       third class located in townships wherein a majority of the qualified elec-
33       tors voted in favor of such constitutional amendment and in the absence
34       of any further vote in cities of the first, second or third class in which a
35       majority of the qualified electors of such city shall have voted at any
36       special or general city election in favor of the licensing of the sale of
37       alcoholic liquor by the package, the director shall continue to issue li-
38       censes to sell the same by the package therein for periods of one year,
39       subject to all the terms and conditions of this act.
40           (e) If a majority of the electors voting at any such election shall vote
41       against licensing the sale of alcoholic liquors by the package, the holder
42       of any valid existing retailer's license for premises in such city shall have
43       the right to continue to operate under such license for a period not to

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  1       exceed 90 days after the result of such election is canvassed or until the
  2       expiration of such license, whichever period of time is the shorter. In the
  3       event that If such period of time expires before the expiration of the term
  4       for which the retailer's license was issued, then such licensee shall be
  5       entitled to a refund of that portion of the license period which is una-
  6       vailable to such licensee in accordance with rules and regulations estab-
  7       lished by the secretary of revenue.
  8           (f) For the purpose of determining as provided in K.S.A. 41-301, and
  9       amendments thereto, and in this section whether a majority of the qual-
10       ified electors of a township in which a city of the third class is located
11       voted against the adoption of the liquor amendment at the general elec-
12       tion held in November, 1948, if any city of the third class is located in
13       two or more townships, the total vote for and against the amendment in
14       all the townships in which such city is located shall be used to determine
15       whether such city is located in a township in which a majority of the
16       qualified electors voted against the amendment.
17           Sec. 2. K.S.A. 41-302 is hereby repealed.
18        [Sec. 2. K.S.A. 41-102 is hereby amended to read as follows: 41-
19       102. As used in this act, unless the context clearly requires other-
20       wise:
21           [(a) ``Alcohol'' means the product of distillation of any fer-
22       mented liquid, whether rectified or diluted, whatever its origin, and
23       includes synthetic ethyl alcohol but does not include denatured al-
24       cohol or wood alcohol.
25           [(b) ``Alcoholic liquor'' means alcohol, spirits, wine, beer and
26       every liquid or solid, patented or not, containing alcohol, spirits,
27       wine or beer and capable of being consumed as a beverage by a
28       human being, but shall not include any cereal malt beverage.
29           [(c) ``Beer'' means a beverage, containing more than 3.2% al-
30       cohol by weight, obtained by alcoholic fermentation of an infusion
31       or concoction of barley, or other grain, malt and hops in water and
32       includes beer, ale, stout, lager beer, porter and similar beverages
33       having such alcoholic content.
34           [(d) ``Caterer'' has the meaning provided by K.S.A. 41-2601, and
35       amendments thereto.
36           [(e) ``Cereal malt beverage'' has the meaning provided by K.S.A.
37       41-2701, and amendments thereto.
38           [(f) ``Club'' has the meaning provided by K.S.A. 41-2601, and
39       amendments thereto.
40           [(g) ``Director'' means the director of alcoholic beverage control
41       of the department of revenue.
42           [(h) ``Distributor'' means the person importing or causing to be
43       imported into the state, or purchasing or causing to be purchased

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  1       within the state, alcoholic liquor for sale or resale to retailers li-
  2       censed under this act or cereal malt beverage for sale or resale to
  3       retailers licensed under K.S.A. 41-2702, and amendments thereto.
  4           [(i) ``Domestic beer'' means beer which contains not more than
  5       8% alcohol by weight and which is manufactured from agricultural
  6       products grown in this state.
  7           [(j) ``Domestic fortified wine'' means wine which contains more than
  8       14%, but not more than 20% alcohol by volume and which is manufac-
  9       tured from agricultural products grown in this state without rectification.
10           [(j) (k) ``Domestic table wine'' means wine which contains not
11       more than 14% alcohol by volume and which is manufactured with-
12       out rectification or fortification from agricultural products grown
13       in this state.
14           [(k) (l) ``Drinking establishment'' has the meaning provided by
15       K.S.A. 41-2601, and amendments thereto.
16           [(l) (m) ``Farm winery'' means a winery licensed by the director
17       to manufacture, store and sell domestic table wine and domestic for-
18       tified wine.
19           [(m) (n) ``Manufacture'' means to distill, rectify, ferment, brew,
20       make, mix, concoct, process, blend, bottle or fill an original package
21       with any alcoholic liquor, beer or cereal malt beverage.
22           [(n) (o) (1) ``Manufacturer'' means every brewer, fermenter,
23       distiller, rectifier, wine maker, blender, processor, bottler or person
24       who fills or refills an original package and others engaged in brew-
25       ing, fermenting, distilling, rectifying or bottling alcoholic liquor,
26       beer or cereal malt beverage.
27           [(2) ``Manufacturer'' does not include a microbrewery or a farm
28       winery.
29           [(o) (p) ``Microbrewery'' means a brewery licensed by the direc-
30       tor to manufacture, store and sell domestic beer.
31           [(p) (q) ``Minor'' means any person under 21 years of age.
32           [(q) (r) ``Nonbeverage user'' means any manufacturer of any of
33       the products set forth and described in K.S.A. 41-501, and amend-
34       ments thereto, when the products contain alcohol or wine, and all
35       laboratories using alcohol for nonbeverage purposes.
36           [(r) (s) ``Original package'' means any bottle, flask, jug, can,
37       cask, barrel, keg, hogshead or other receptacle or container what-
38       soever, used, corked or capped, sealed and labeled by the manufac-
39       turer of alcoholic liquor, to contain and to convey any alcoholic
40       liquor. Original container does not include a sleeve.
41           [(s) (t) ``Person'' means any natural person, corporation, part-
42       nership, trust or association.
43           [(t) (u) ``Primary American source of supply'' means the manu-

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  1       facturer, the owner of alcoholic liquor at the time it becomes a mar-
  2       ketable product or the manufacturer's or owner's exclusive agent
  3       who, if the alcoholic liquor cannot be secured directly from such
  4       manufacturer or owner by American wholesalers, is the source clos-
  5       est to such manufacturer or owner in the channel of commerce from
  6       which the product can be secured by American wholesalers.
  7           [(u) (v) (1) ``Retailer'' means a person who sells at retail, or of-
  8       fers for sale at retail, alcoholic liquors.
  9           [(2) ``Retailer'' does not include a microbrewery or a farm win-
10       ery.
11           [(v) (w) ``Sale'' means any transfer, exchange or barter in any
12       manner or by any means whatsoever for a consideration and in-
13       cludes all sales made by any person, whether principal, proprietor,
14       agent, servant or employee.
15           [(w) (x) ``Salesperson'' means any natural person who:
16           [(1) Procures or seeks to procure an order, bargain, contract or
17       agreement for the sale of alcoholic liquor or cereal malt beverage;
18       or
19           [(2) is engaged in promoting the sale of alcoholic liquor or ce-
20       real malt beverage, or in promoting the business of any person, firm
21       or corporation engaged in the manufacturing and selling of alco-
22       holic liquor or cereal malt beverage, whether the seller resides
23       within the state of Kansas and sells to licensed buyers within the
24       state of Kansas, or whether the seller resides without the state of
25       Kansas and sells to licensed buyers within the state of Kansas.
26           [(x) (y) ``Secretary'' means the secretary of revenue.
27           [(y) (z) (1) ``Sell at retail'' and ``sale at retail'' refer to and mean
28       sales for use or consumption and not for resale in any form and
29       sales to clubs, licensed drinking establishments, licensed caterers
30       or holders of temporary permits.
31           [(2) ``Sell at retail'' and ``sale at retail'' do not refer to or mean
32       sales by a distributor, a microbrewery, a farm winery, a licensed
33       club, a licensed drinking establishment, a licensed caterer or a
34       holder of a temporary permit.
35           [(z) (aa) ``To sell'' includes to solicit or receive an order for, to
36       keep or expose for sale and to keep with intent to sell.
37           [(aa) (bb) ``Sleeve'' means a package of two or more 50-milliliter
38       (3.2-fluid-ounce) containers of spirits.
39           [(bb) (cc) ``Spirits'' means any beverage which contains alcohol
40       obtained by distillation, mixed with water or other substance in
41       solution, and includes brandy, rum, whiskey, gin or other spirituous
42       liquors, and such liquors when rectified, blended or otherwise
43       mixed with alcohol or other substances.

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  1           [(cc) (dd) ``Supplier'' means a manufacturer of alcoholic liquor
  2       or cereal malt beverage or an agent of such manufacturer, other
  3       than a salesperson.
  4           [(dd) (ee) ``Temporary permit'' has the meaning provided by
  5       K.S.A. 41-2601, and amendments thereto.
  6           [(ee) (ff) ``Wine'' means any alcoholic beverage obtained by the
  7       normal alcoholic fermentation of the juice of sound, ripe grapes,
  8       fruits, berries or other agricultural products, including such bev-
  9       erages containing added alcohol or spirits or containing sugar
10       added for the purpose of correcting natural deficiencies.
11           [Sec. 3. K.S.A. 41-308a is hereby amended to read as follows:
12       41-308a. (a) A farm winery license shall allow:
13           [(1) The manufacture of domestic table wine and domestic forti-
14       fied wine and the storage thereof;
15           [(2) the sale of wine, manufactured by the licensee, to licensed
16       wine distributors, retailers, clubs, drinking establishments and ca-
17       terers;
18           [(3) the sale, on the licensed premises in the original unopened
19       container to consumers for consumption off the licensed premises,
20       of wine manufactured by the licensee;
21           [(4) the serving on the licensed premises of samples of wine man-
22       ufactured by the licensee or imported under subsection (f), if the
23       premises are located in a county where the sale of alcoholic liquor
24       is permitted by law in licensed drinking establishments; and
25           [(5) if the licensee is also licensed as a club or drinking estab-
26       lishment, the sale of domestic wine, domestic fortified wine and other
27       alcoholic liquor for consumption on the licensed premises as au-
28       thorized by the club and drinking establishment act.
29           [(b) Upon application and payment of the fee prescribed by
30       K.S.A. 41-310, and amendments thereto, by a farm winery licensee,
31       the director may issue not to exceed two winery outlet licenses to
32       the farm winery licensee. A winery outlet license shall allow:
33           [(1) The sale, on the licensed premises in the original unopened
34       container to consumers for consumption off the licensed premises,
35       of wine manufactured by the licensee; and
36           [(2) the serving on the licensed premises of samples of wine man-
37       ufactured by the licensee or imported under subsection (f), if the
38       premises are located in a county where the sale of alcoholic liquor
39       is permitted by law in licensed drinking establishments.
40           [(c) Not less than 60% of the products utilized in the manufac-
41       ture of domestic table wine and domestic fortified wine by a farm
42       winery shall be grown in Kansas except when a lesser proportion is
43       authorized by the director based upon the director's findings and

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  1       judgment. The label of domestic wine and domestic fortified wine shall
  2       indicate that a majority of the products utilized in the manufacture
  3       of the wine at such winery were grown in Kansas.
  4           [(d) A farm winery having a capacity of 50,000 gallons per year
  5       or more which sells wine to any distributor shall be required to
  6       comply with all provisions of article 4 of chapter 41 of the Kansas
  7       Statutes Annotated and of K.S.A. 41-701 through 41-705 and 41-
  8       709, and amendments thereto, in the same manner and subject to
  9       the same penalties as a manufacturer.
10           [(e) A farm winery or winery outlet may sell domestic wine and
11       domestic fortified wine in the original unopened container to consum-
12       ers for consumption off the licensed premises at any time between
13       6 a.m. and 12 midnight on any day except Sunday and between 12
14       noon and 6 p.m. on Sunday. If authorized by subsection (a), a farm
15       winery may serve samples of domestic wine, domestic fortified wine
16       and wine imported under subsection (f) and serve and sell domestic
17       wine, domestic fortified wine and other alcoholic liquor for consump-
18       tion on the licensed premises at any time when a club or drinking
19       establishment is authorized to serve and sell alcoholic liquor. If
20       authorized by subsection (b), a winery outlet may serve samples of
21       domestic wine, domestic fortified wine and wine imported under sub-
22       section (f) at any time when the winery outlet is authorized to sell
23       domestic wine and domestic fortified wine.
24           [(f) The director may issue to the Kansas state fair or any bona
25       fide group of grape growers or wine makers a permit to import into
26       this state small quantities of wines. Such wine shall be used only
27       for bona fide educational and scientific tasting programs and shall
28       not be resold. Such wine shall not be subject to the tax imposed by
29       K.S.A. 41-501,and amendments thereto. The permit shall specifically
30       identify specifically the brand and type of wine to be imported, the
31       quantity to be imported, the tasting programs for which the wine is
32       to be used and the times and locations of such programs. The sec-
33       retary shall adopt rules and regulations governing the importation
34       of wine pursuant to this subsection and the conduct of tasting pro-
35       grams for which such wine is imported.
36           [(g) A farm winery license or winery outlet license shall apply
37       only to the premises described in the application and in the license
38       issued and only one location shall be described in the license.
39           [(h) No farm winery or winery outlet shall:
40           [(1) Employ any person under the age of 18 years in connection
41       with the manufacture, sale or serving of any alcoholic liquor;
42           [(2) permit any employee of the licensee who is under the age
43       of 21 years to work on the licensed premises at any time when not

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  1       under the on-premise supervision of either the licensee or an em-
  2       ployee of the licensee who is 21 years of age or over;
  3           [(3) employ any person under 21 years of age in connection with
  4       mixing or dispensing alcoholic liquor; or
  5           [(4) employ any person in connection with the manufacture or
  6       sale of alcoholic liquor if the person has been convicted of a felony.
  7           [(i) Whenever a farm winery or winery outlet licensee is con-
  8       victed of a violation of the Kansas liquor control act, the director
  9       may revoke the licensee's license and order forfeiture of all fees paid
10       for the license, after a hearing before the director for that purpose
11       in accordance with the provisions of the Kansas administrative pro-
12       cedure act.
13           [(j) This section shall be part of and supplemental to the Kansas
14       liquor control act.
15           [Sec. 4. K.S.A. 41-102, 41-302 and 41-308a are hereby re-
16       pealed.]
17           Sec. 3 [5]. This act shall take effect and be in force from and after
18       its publication in the statute book.
19