Session of 1998
                   
SENATE BILL No. 680
         
By Committee on Federal and State Affairs
         
2-25
            9             AN ACT concerning alcoholic beverages; relating to licensure and qual-
10             ifications therefor; amending K.S.A. 41-2623 and 41-2703 and repeal-
11             ing the existing sections.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 41-2623 is hereby amended to read as follows:
15       41-2623. (a) No license shall be issued under the provisions of this act to:
16           (1) Any person described in subsection (a)(1), (2), (4), (5), (6), (7),
17       (8), (9) or (12) of K.S.A. 41-311, and amendments thereto, except that
18       the provisions of subsection (a)(7) of such section shall not apply to nor
19       prohibit the issuance of a license for a class A club to an officer of a post
20       home of a congressionally chartered service or fraternal organization, or
21       a benevolent association or society thereof.
22           (2) A person who has had the person's license revoked for cause un-
23       der the provisions of this act.
24           (3) A person who has not been a resident of this state for a period of
25       at least one year immediately preceding the date of application.
26           (4) A person who has a beneficial interest in the manufacture, prep-
27       aration or wholesaling or the retail sale of alcoholic liquors or a beneficial
28       interest in any other club, drinking establishment or caterer licensed here-
29       under, except that:
30           (A) A license for premises located in a hotel may be granted to a
31       person who has a beneficial interest in one or more other clubs or drinking
32       establishments licensed hereunder if such other clubs or establishments
33       are located in hotels.
34           (B) A license for a club or drinking establishment which is a restau-
35       rant may be issued to a person who has a beneficial interest in other clubs
36       or drinking establishments which are restaurants.
37           (C) A caterer's license may be issued to a person who has a beneficial
38       interest in a club or drinking establishment and a license for a club or
39       drinking establishment may be issued to a person who has a beneficial
40       interest in a caterer.
41           (D) A license for a class A club may be granted to an organization of
42       which an officer, director or board member is a distributor or retailer
43       licensed under the liquor control act if such distributor or retailer sells

SB 680

2

  1       no alcoholic liquor to such club.
  2           (E) On and after January 1, 1988, a license for a class B club or
  3       drinking establishment may be granted to a person who has a beneficial
  4       interest in a microbrewery or farm winery licensed pursuant to the Kansas
  5       liquor control act.
  6           (5) A copartnership, unless all of the copartners are qualified to ob-
  7       tain a license.
  8           (6) A corporation, if any officer, manager or director thereof, or any
  9       stockholder owning in the aggregate more than 5% of the common or
10       preferred stock of such corporation would be ineligible to receive a li-
11       cense hereunder for any reason other than citizenship and residence
12       requirements.
13           (7) A corporation, if any officer, manager or director thereof, or any
14       stockholder owning in the aggregate more than 5% of the common or
15       preferred stock of such corporation, has been an officer, manager or di-
16       rector, or a stockholder owning in the aggregate more than 5% of the
17       common or preferred stock, of a corporation which:
18           (A) Has had a license revoked under the provisions of the club and
19       drinking establishment act; or
20           (B) has been convicted of a violation of the club and drinking estab-
21       lishment act or the cereal malt beverage laws of this state.
22           (8) A corporation organized under the laws of any state other than
23       this state.
24           (9) A trust, if any grantor, beneficiary or trustee would be ineligible
25       to receive a license under this act for any reason, except that the provi-
26       sions of subsection (a)(6) of K.S.A. 41-311, and amendments thereto shall
27       not apply in determining whether a beneficiary would be eligible for a
28       license.
29           (10) A person who has failed to file any tax return or is not current
30       in payment of all taxes, interest and penalties owed to any taxing subdi-
31       vision.
32           (11) A person who has failed to file any tax return or is not current
33       in filing all applicable tax returns and in payment of all taxes, interest and
34       penalties owed to the state of Kansas, excluding items under formal appeal
35       pursuant to applicable statutes.
36           (b) No club or drinking establishment license shall be issued under
37       the provisions of the club and drinking establishment act to:
38           (1) A person described in subsection (a)(11) of K.S.A. 41-311, and
39       amendments thereto.
40           (2) A person who is not a resident of the county in which the premises
41       sought to be licensed are located.
42           (3) A person who has failed to file any tax return or is not current in
43       payment of all taxes, interest and penalties owed to any taxing subdivision.

SB 680

3

  1           (4) A person who has failed to file any tax return or is not current in
  2       filing all applicable tax returns in and payment of all taxes, interest and
  3       penalties owed to the state of Kansas, excluding items under formal appeal
  4       pursuant to applicable statutes.
  5           Sec. 2. K.S.A. 41-2703 is hereby amended to read as follows: 41-
  6       2703. (a) After examination of an application for a retailer's license, the
  7       board of county commissioners or the director shall, if they approve the
  8       same, shall issue a license to the applicant. The governing body of the
  9       city shall, if the applicant is qualified as provided by law, shall issue a
10       license to such applicant.
11           (b) No retailer's license shall be issued to:
12           (1) A person who is not a resident of the county in which the place
13       of business covered by the license is located, has not been a resident of
14       such county for at least six months or has not been a resident in good
15       faith of the state of Kansas.
16           (2) A person who has not been a resident of this state for at least one
17       year immediately preceding application for a retailer's license.
18           (3) A person who is not of good character and reputation in the com-
19       munity in which the person resides.
20           (4) A person who is not a citizen of the United States.
21           (5) A person who, within two years immediately preceding the date
22       of application, has been convicted of a felony or any crime involving moral
23       turpitude, drunkenness, driving a motor vehicle while under the influence
24       of intoxicating liquor or violation of any other intoxicating liquor law of
25       any state or of the United States.
26           (6) A partnership, unless all the members of the partnership are oth-
27       erwise qualified to obtain a license.
28           (7) A corporation, if any manager, officer or director thereof, or any
29       stockholder owning in the aggregate more than 25% of the stock of such
30       corporation, would be ineligible to receive a license hereunder for any
31       reason other than the citizenship and residency requirements.
32           (8) A corporation, if any manager, officer or director thereof, or any
33       stockholder owning in the aggregate more than 25% of the stock of such
34       corporation, has been an officer, manager or director, or a stockholder
35       owning in the aggregate more than 25% of the stock, of a corporation
36       which: (A) Has had a retailer's license revoked under K.S.A. 41-2708, and
37       amendments thereto; or (B) has been convicted of a violation of the drink-
38       ing establishment act or the cereal malt beverage laws of this state.
39           (9) A person whose place of business is conducted by a manager or
40       agent unless the manager or agent possesses all the qualifications of a
41       licensee.
42           (10) A person whose spouse would be ineligible to receive a retailer's
43       license for any reason other than citizenship, residence requirements or

SB 680

4

  1       age, except that this subsection (b)(10) shall not apply in determining
  2       eligibility for a renewal license.
  3           (11) A person who has failed to file any tax return or is not current
  4       in payment of all taxes, interest and penalties owed to any taxing subdi-
  5       vision.
  6           (12) A person who has failed to file any tax return or is not current
  7       in filing all applicable tax returns and in payment of all taxes, interest and
  8       penalties owed to the state of Kansas, excluding items under formal appeal
  9       pursuant to applicable statutes.
10           (c) Retailers' licenses shall be issued either on an annual basis or for
11       the calendar year. If such licenses are issued on an annual basis, the board
12       of county commissioners or the governing body of the city shall notify the
13       distributors supplying the county or city on or before April 1 of the year
14       if a retailer's license is not renewed.
15           Sec. 3. K.S.A. 41-2623 and 41-2703 are hereby repealed.
16           Sec. 4. This act shall take effect and be in force from and after its
17       publication in the statute book.
18      
19