Session of 1998
                   
Substitute for SENATE BILL No. 610
         
By Committee on Federal and State Affairs
         
2-25
            9             AN ACT concerning intoxicating liquors and beverages; amending K.S.A.
10             41-102 and 41-308a and repealing the existing sections.
11            
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 41-102 is hereby amended to read as follows: 41-
14       102. As used in this act, unless the context clearly requires otherwise:
15           (a) ``Alcohol'' means the product of distillation of any fermented liq-
16       uid, whether rectified or diluted, whatever its origin, and includes syn-
17       thetic ethyl alcohol but does not include denatured alcohol or wood al-
18       cohol.
19           (b) ``Alcoholic liquor'' means alcohol, spirits, wine, beer and every
20       liquid or solid, patented or not, containing alcohol, spirits, wine or beer
21       and capable of being consumed as a beverage by a human being, but shall
22       not include any cereal malt beverage.
23           (c) ``Beer'' means a beverage, containing more than 3.2% alcohol by
24       weight, obtained by alcoholic fermentation of an infusion or concoction
25       of barley, or other grain, malt and hops in water and includes beer, ale,
26       stout, lager beer, porter and similar beverages having such alcoholic con-
27       tent.
28           (d) ``Caterer'' has the meaning provided by K.S.A. 41-2601, and
29       amendments thereto.
30           (e) ``Cereal malt beverage'' has the meaning provided by K.S.A. 41-
31       2701, and amendments thereto.
32           (f) ``Club'' has the meaning provided by K.S.A. 41-2601, and amend-
33       ments thereto.
34           (g) ``Director'' means the director of alcoholic beverage control of the
35       department of revenue.
36           (h) ``Distributor'' means the person importing or causing to be im-
37       ported into the state, or purchasing or causing to be purchased within
38       the state, alcoholic liquor for sale or resale to retailers licensed under this
39       act or cereal malt beverage for sale or resale to retailers licensed under
40       K.S.A. 41-2702, and amendments thereto.
41           (i) ``Domestic beer'' means beer which contains not more than 8%
42       alcohol by weight and which is manufactured from agricultural products
43       grown in this state.

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  1           (j) ``Domestic fortified wine'' means wine which contains more than
  2       14%, but not more than 20% alcohol by volume and which is manufac-
  3       tured from agricultural products grown in this state without rectification.
  4           (j) (k) ``Domestic table wine'' means wine which contains not more
  5       than 14% alcohol by volume and which is manufactured without rectifi-
  6       cation or fortification from agricultural products grown in this state.
  7           (k) (l) ``Drinking establishment'' has the meaning provided by K.S.A.
  8       41-2601, and amendments thereto.
  9           (l) (m) ``Farm winery'' means a winery licensed by the director to
10       manufacture, store and sell domestic table wine and domestic fortified
11       wine.
12           (m) (n) ``Manufacture'' means to distill, rectify, ferment, brew, make,
13       mix, concoct, process, blend, bottle or fill an original package with any
14       alcoholic liquor, beer or cereal malt beverage.
15           (n) (o) (1) ``Manufacturer'' means every brewer, fermenter, distiller,
16       rectifier, wine maker, blender, processor, bottler or person who fills or
17       refills an original package and others engaged in brewing, fermenting,
18       distilling, rectifying or bottling alcoholic liquor, beer or cereal malt bev-
19       erage.
20           (2) ``Manufacturer'' does not include a microbrewery or a farm win-
21       ery.
22           (o) (p) ``Microbrewery'' means a brewery licensed by the director to
23       manufacture, store and sell domestic beer.
24           (p) (q) ``Minor'' means any person under 21 years of age.
25           (q) (r) ``Nonbeverage user'' means any manufacturer of any of the
26       products set forth and described in K.S.A. 41-501, and amendments
27       thereto, when the products contain alcohol or wine, and all laboratories
28       using alcohol for nonbeverage purposes.
29           (r) (s) ``Original package'' means any bottle, flask, jug, can, cask, bar-
30       rel, keg, hogshead or other receptacle or container whatsoever, used,
31       corked or capped, sealed and labeled by the manufacturer of alcoholic
32       liquor, to contain and to convey any alcoholic liquor. Original container
33       does not include a sleeve.
34           (s) (t) ``Person'' means any natural person, corporation, partnership,
35       trust or association.
36           (t) (u) ``Primary American source of supply'' means the manufacturer,
37       the owner of alcoholic liquor at the time it becomes a marketable product
38       or the manufacturer's or owner's exclusive agent who, if the alcoholic
39       liquor cannot be secured directly from such manufacturer or owner by
40       American wholesalers, is the source closest to such manufacturer or
41       owner in the channel of commerce from which the product can be se-
42       cured by American wholesalers.
43           (u) (v) (1) ``Retailer'' means a person who sells at retail, or offers for

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  1       sale at retail, alcoholic liquors.
  2           (2) ``Retailer'' does not include a microbrewery or a farm winery.
  3           (v) (w) ``Sale'' means any transfer, exchange or barter in any manner
  4       or by any means whatsoever for a consideration and includes all sales
  5       made by any person, whether principal, proprietor, agent, servant or em-
  6       ployee.
  7           (w) (x) ``Salesperson'' means any natural person who:
  8           (1) Procures or seeks to procure an order, bargain, contract or agree-
  9       ment for the sale of alcoholic liquor or cereal malt beverage; or
10           (2) is engaged in promoting the sale of alcoholic liquor or cereal malt
11       beverage, or in promoting the business of any person, firm or corporation
12       engaged in the manufacturing and selling of alcoholic liquor or cereal
13       malt beverage, whether the seller resides within the state of Kansas and
14       sells to licensed buyers within the state of Kansas, or whether the seller
15       resides without the state of Kansas and sells to licensed buyers within the
16       state of Kansas.
17           (x) (y) ``Secretary'' means the secretary of revenue.
18           (y) (z) (1) ``Sell at retail'' and ``sale at retail'' refer to and mean sales
19       for use or consumption and not for resale in any form and sales to clubs,
20       licensed drinking establishments, licensed caterers or holders of tempo-
21       rary permits.
22           (2) ``Sell at retail'' and ``sale at retail'' do not refer to or mean sales
23       by a distributor, a microbrewery, a farm winery, a licensed club, a licensed
24       drinking establishment, a licensed caterer or a holder of a temporary
25       permit.
26           (z) (aa) ``To sell'' includes to solicit or receive an order for, to keep
27       or expose for sale and to keep with intent to sell.
28           (aa) (bb) ``Sleeve'' means a package of two or more 50-milliliter
29       (3.2-fluid-ounce) containers of spirits.
30           (bb) (cc) ``Spirits'' means any beverage which contains alcohol ob-
31       tained by distillation, mixed with water or other substance in solution,
32       and includes brandy, rum, whiskey, gin or other spirituous liquors, and
33       such liquors when rectified, blended or otherwise mixed with alcohol or
34       other substances.
35           (cc) (dd) ``Supplier'' means a manufacturer of alcoholic liquor or ce-
36       real malt beverage or an agent of such manufacturer, other than a sales-
37       person.
38           (dd) (ee) ``Temporary permit'' has the meaning provided by K.S.A.
39       41-2601, and amendments thereto.
40           (ee) (ff) ``Wine'' means any alcoholic beverage obtained by the normal
41       alcoholic fermentation of the juice of sound, ripe grapes, fruits, berries
42       or other agricultural products, including such beverages containing added
43       alcohol or spirits or containing sugar added for the purpose of correcting

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  1       natural deficiencies.
  2           Sec. 2. K.S.A. 41-308a is hereby amended to read as follows: 41-
  3       308a. (a) A farm winery license shall allow:
  4           (1) The manufacture of domestic table wine and domestic fortified
  5       wine and the storage thereof;
  6           (2) the sale of wine, manufactured by the licensee, to licensed wine
  7       distributors, retailers, clubs, drinking establishments and caterers;
  8           (3) the sale, on the licensed premises in the original unopened con-
  9       tainer to consumers for consumption off the licensed premises, of wine
10       manufactured by the licensee;
11           (4) the serving on the licensed premises of samples of wine manu-
12       factured by the licensee or imported under subsection (f), if the premises
13       are located in a county where the sale of alcoholic liquor is permitted by
14       law in licensed drinking establishments; and
15           (5) if the licensee is also licensed as a club or drinking establishment,
16       the sale of domestic wine, domestic fortified wine and other alcoholic
17       liquor for consumption on the licensed premises as authorized by the
18       club and drinking establishment act.
19           (b) Upon application and payment of the fee prescribed by K.S.A.
20       41-310, and amendments thereto, by a farm winery licensee, the director
21       may issue not to exceed two winery outlet licenses to the farm winery
22       licensee. A winery outlet license shall allow:
23           (1) The sale, on the licensed premises in the original unopened con-
24       tainer to consumers for consumption off the licensed premises, of wine
25       manufactured by the licensee; and
26           (2) the serving on the licensed premises of samples of wine manu-
27       factured by the licensee or imported under subsection (f), if the premises
28       are located in a county where the sale of alcoholic liquor is permitted by
29       law in licensed drinking establishments.
30           (c) Not less than 60% of the products utilized in the manufacture of
31       domestic table wine and domestic fortified wine by a farm winery shall
32       be grown in Kansas except when a lesser proportion is authorized by the
33       director based upon the director's findings and judgment. The label of
34       domestic wine and domestic fortified wine shall indicate that a majority
35       of the products utilized in the manufacture of the wine at such winery
36       were grown in Kansas.
37           (d) A farm winery having a capacity of 50,000 gallons per year or more
38       which sells wine to any distributor shall be required to comply with all
39       provisions of article 4 of chapter 41 of the Kansas Statutes Annotated and
40       of K.S.A. 41-701 through 41-705 and 41-709, and amendments thereto,
41       in the same manner and subject to the same penalties as a manufacturer.
42           (e) A farm winery or winery outlet may sell domestic wine and do-
43       mestic fortified wine in the original unopened container to consumers for

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  1       consumption off the licensed premises at any time between 6 a.m. and
  2       12 midnight on any day except Sunday and between 12 noon and 6 p.m.
  3       on Sunday. If authorized by subsection (a), a farm winery may serve sam-
  4       ples of domestic wine, domestic fortified wine and wine imported under
  5       subsection (f) and serve and sell domestic wine, domestic fortified wine
  6       and other alcoholic liquor for consumption on the licensed premises at
  7       any time when a club or drinking establishment is authorized to serve
  8       and sell alcoholic liquor. If authorized by subsection (b), a winery outlet
  9       may serve samples of domestic wine, domestic fortified wine and wine
10       imported under subsection (f) at any time when the winery outlet is au-
11       thorized to sell domestic wine and domestic fortified wine.
12           (f) The director may issue to the Kansas state fair or any bona fide
13       group of grape growers or wine makers a permit to import into this state
14       small quantities of wines. Such wine shall be used only for bona fide
15       educational and scientific tasting programs and shall not be resold. Such
16       wine shall not be subject to the tax imposed by K.S.A. 41-501, and amend-
17       ments thereto. The permit shall specifically identify specifically the brand
18       and type of wine to be imported, the quantity to be imported, the tasting
19       programs for which the wine is to be used and the times and locations of
20       such programs. The secretary shall adopt rules and regulations governing
21       the importation of wine pursuant to this subsection and the conduct of
22       tasting programs for which such wine is imported.
23           (g) A farm winery license or winery outlet license shall apply only to
24       the premises described in the application and in the license issued and
25       only one location shall be described in the license.
26           (h) No farm winery or winery outlet shall:
27           (1) Employ any person under the age of 18 years in connection with
28       the manufacture, sale or serving of any alcoholic liquor;
29           (2) permit any employee of the licensee who is under the age of 21
30       years to work on the licensed premises at any time when not under the
31       on-premise supervision of either the licensee or an employee of the li-
32       censee who is 21 years of age or over;
33           (3) employ any person under 21 years of age in connection with mix-
34       ing or dispensing alcoholic liquor; or
35           (4) employ any person in connection with the manufacture or sale of
36       alcoholic liquor if the person has been convicted of a felony.
37           (i) Whenever a farm winery or winery outlet licensee is convicted of
38       a violation of the Kansas liquor control act, the director may revoke the
39       licensee's license and order forfeiture of all fees paid for the license, after
40       a hearing before the director for that purpose in accordance with the
41       provisions of the Kansas administrative procedure act.
42           (j) This section shall be part of and supplemental to the Kansas liquor
43       control act.

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  1           Sec. 3. K.S.A. 41-102 and 41-308a are hereby repealed.
  2           Sec. 4. This act shall take effect and be in force from and after its
  3       publication in the statute book.
  4      
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