SENATE BILL No. 16
         
By Special Committee on Federal and State Affairs
          
12-17
          
  8             AN  ACT concerning alcoholic liquor and cereal malt beverages; relating
  9             to the regulation thereof; amending K.S.A. 21-3610, 41-101, 41-103,
10             41-104, 41-105, 41-202, 41-204, 41-206, 41-207, 41-209, 41-211, 41-
11             301, 41-303, 41-304, 41-309, 41-310, 41-313, 41-314, 41-315, 41-317,
12             41-319, 41-320, 41-321, 41-322, 41-323, 41-326, 41-328, 41-330, 41-
13             331, 41-332, 41-333, 41-334, 41-339, 41-401, 41-402, 41-403, 41-405,
14             41-406, 41-407, 41-408, 41-410, 41-501, 41-501a, 41-502, 41-507, 41-
15             508, 41-601, 41-602, 41-701, 41-702, 41-703, 41-704, 41-705, 41-706,
16             41-710, 41-713, 41-718, 41-720, 41-728, 41-729, 41-805, 41-806, 41-
17             901, 41-902, 41-903, 41-904, 41-905, 41-1001, 41-1002, 41-1003, 41-
18             1004, 41-1102, 41-1107, 41-1122, 41-1123, 41-1125, 41-2610, 41-2611,
19             41-2613, 41-2632, 41-2639, 41-2640, 41-2643, 41-2645, 41-2646, 41-
20             2647, 41-2651, 41-2701, 41-2702, 41-2705, 41-2722 and 75-5118 and
21             K.S.A. 1998 Supp. 8-241, 8-1599, 8-2110, 19-101a, 41-102, 41-201, 41-
22             302, 41-306, 41-306a, 41-307, 41-308a, 41-311, 41-346, 41-347, 41-
23             708, 41-712, 41-717, 41-719, 41-727, 41-1101, 41-1126, 41-2614, 41-
24             2615, 41-2642, 44-706, 60-2313, 79-41a01, 79-41a03 and 79-41a07 and
25             repealing the existing sections; also repealing K.S.A. 41-203, 41-205,
26             41-208, 41-210, 41-305, 41-308, 41-312, 41-316, 41-318, 41-324, 41-
27             325, 41-327, 41-329, 41-335, 41-336, 41-337, 41-338, 41-340, 41-341,
28             41-342, 41-343, 41-344, 41-345, 41-409, 41-412, 41-501c, 41-510, 41-
29             707, 41-711, 41-714, 41-715, 41-721, 41-722, 41-723, 41-724, 41-725,
30             41-726, 41-801, 41-803, 41-1105, 41-1111, 41-1112, 41-1114, 41-1115,
31             41-1116, 41-1117, 41-1118, 41-1119, 41-1120, 41-1121, 41-1124, 41-
32             1127, 41-2604, 41-2605, 41-2606, 41-2607, 41-2608, 41-2609, 41-2612,
33             41-2619, 41-2620, 41-2621, 41-2623, 41-2625, 41-2626, 41-2627, 41-
34             2628, 41-2629, 41-2630, 41-2631, 41-2633, 41-2633a, 41-2634, 41-
35             2635, 41-2636, 41-2644, 41-2648, 41-2649 and 41-2650. and K.S.A.
36             1998 Supp. 19-101i, 41-308b, 41-709, 41-2601, 41-2622, 41-2637 and
37             41-2641.
38      
39       Be it enacted by the Legislature of the State of Kansas:
40             Section  1. K.S.A. 41-101 is hereby amended to read as follows: 41-
41       101. This act (a) Sections 1 through 125, and amendments thereto, shall
42       be known and may be cited as the "Kansas liquor control act."

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  1             (b) If any provision of this act or the application thereof to any person
  2       or circumstances is held invalid, the invalidity shall not affect other pro-
  3       visions or applications of the act which can be given effect without the
  4       invalid provision or application, and, to this end, the provisions of this
  5       act are severable.
  6             New Sec.  2. The power to regulate all phases of the control of the
  7       manufacture, distribution, sale, possession, transportation and traffic in
  8       alcoholic liquor and the manufacture of beer regardless of its alcoholic
  9       content hereby is vested exclusively in the state and shall be exercised as
10       provided in this act. No city or county shall adopt any ordinance or res-
11       olution in conflict with the provisions of this act. Any ordinance or reso-
12       lution of any city or county in effect at the time this act takes effect or is
13       thereafter adopted which is in conflict with the provisions of this act shall
14       be null and void. Except as specifically provided by section 125, and
15       amendments thereto, no city or county shall adopt any ordinance or res-
16       olution which is in addition or supplemental to the provisions of the liquor
17       control act. Any such additional or supplemental ordinance or resolution
18       of any city or county which is in effect at the time this act takes effect or
19       is thereafter adopted which exceeds the authority granted by this act shall
20       be null and void. Nothing contained in this section shall be construed as
21       preventing any city or county from adopting ordinances or resolutions
22       declaring acts prohibited or made unlawful by this act as unlawful or
23       prohibited in such city or county and prescribing penalties for violation
24       thereof, but the minimum penalty in any such ordinance or resolution
25       shall not be less than the minimum penalty prescribed by this act for the
26       same violation and the maximum penalty in any such ordinance or reso-
27       lution shall not exceed the maximum penalty prescribed by this act for
28       the same violation.
29             Sec.  3. K.S.A. 1998 Supp. 41-102 is hereby amended to read as fol-
30       lows: 41-102. As used in this act, unless the context clearly requires
31       otherwise:
32             (a) "Alcohol" means the product of distillation of any fermented liq-
33       uid, whether rectified or diluted, whatever its origin, and includes syn-
34       thetic ethyl alcohol but does not include denatured alcohol or wood
35       alcohol.
36             (b) "Alcoholic liquor" means alcohol, spirits, wine, beer and every
37       liquid or solid, patented or not, containing alcohol, spirits, wine or beer,
38       nonalcoholic malt beverage and capable of being consumed as a beverage
39       by a human being, but shall not include any cereal malt beverage.
40             (c) "Beer" means a beverage, containing more than 3.2% alcohol by
41       weight, obtained by alcoholic fermentation of an infusion or concoction
42       of barley, or other grain, malt and hops in water and includes beer, ale,
43       stout, lager beer, porter and similar beverages having such alcoholic

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  1       content.
  2             (d) "Caterer" has the meaning provided by K.S.A. 41-2601, and
  3       amendments thereto.
  4             (e) "Cereal malt beverage" has the meaning provided by K.S.A. 41-
  5       2701, and amendments thereto.
  6             (f) "Club" has the meaning provided by K.S.A. 41-2601, and amend-
  7       ments thereto.
  8             (d) "Beneficial interest" shall not include any interest a person may
  9       have as owner, operator, lessee or franchise holder of a licensed hotel or
10       motel on the premises of which a club or drinking establishment is located.
11             (e) "Caterer" means an individual, partnership or corporation which
12       sells alcoholic liquor by the individual drink, and provides services related
13       to the serving thereof, on unlicensed premises which may be open to the
14       public, but does not include a holder of a temporary permit, selling al-
15       coholic liquor in accordance with the terms of such permit.
16             (f) "Cereal malt beverage" means any fermented but undistilled liquor
17       brewed or made from malt or from a mixture of malt or malt substitute,
18       but does not include any such liquor which is more than 3.2% alcohol by
19       weight.
20             (g) "Class A club" means a premises which is owned or leased by a
21       corporation, partnership, business trust or association and which is op-
22       erated thereby as a bona fide nonprofit social, fraternal or war veterans
23       club, as determined by the director, for the exclusive use of the corporate
24       stockholders, partners, trust beneficiaries or associates (hereinafter re-
25       ferred to as members) and their families and guests accompanying them.
26             (h) "Class B club" means a premises operated for profit by a corpo-
27       ration, partnership or individual, to which members of such club may
28       resort for the consumption of food or alcoholic beverages and for
29       entertainment.
30             (i) "Club" means a class A or class B club.
31             (g) (j) "Director" means the director of alcoholic beverage control of
32       the department of revenue.
33             (h) (k) "Distributor" means the person importing or causing to be
34       imported into the state, or purchasing or causing to be purchased within
35       the state, alcoholic liquor for sale or resale to retailers licensed under this
36       act or cereal malt beverage for sale or resale to retailers licensed under
37       K.S.A. 41-2702, and amendments thereto the cereal malt beverage act.
38             (i) (l) "Domestic beer" means beer which contains not more than 8%
39       alcohol by weight and which is manufactured from agricultural products
40       grown in this state.
41             (j) (m) "Domestic fortified wine" means wine which contains more
42       than 14%, but not more than 20% alcohol by volume and which is man-
43       ufactured from agricultural products grown in this state without

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  1       rectification.
  2             (k) (n) "Domestic table wine" means wine which contains not more
  3       than 14% alcohol by volume and which is manufactured without rectifi-
  4       cation or fortification from agricultural products grown in this state.
  5             (l) (o) "Drinking establishment" has the meaning provided by K.S.A.
  6       41-2601, and amendments thereto means premises which may be open
  7       to the general public, where alcoholic liquor by the individual drink is
  8       sold.
  9             (m) (p) "Farm winery" means a winery licensed by the director to
10       manufacture, store and sell domestic table wine and domestic fortified
11       wine.
12             (q) "Food" means any raw, cooked or processed edible substance or
13       ingredient, other than alcoholic liquor or cereal malt beverage, used or
14       intended for use or for sale, in whole or in part, for human consumption.
15             (r) "Food service establishment" has the meaning provided by K.S.A.
16       36-501, and amendments thereto.
17             (s) "Hotel" has the meaning provided by K.S.A. 36-501, and amend-
18       ments thereto.
19             (n) (t) "Manufacture" means to distill, rectify, ferment, brew, make,
20       mix, concoct, process, blend, bottle or fill an original package with any
21       alcoholic liquor, beer or cereal malt beverage.
22             (o) (u)  (1) "Manufacturer" means every brewer, fermenter, distiller,
23       rectifier, wine maker, blender, processor, bottler or person who fills or
24       refills an original package and others engaged in brewing, fermenting,
25       distilling, rectifying or bottling alcoholic liquor, beer or cereal malt
26       beverage.
27             (2) "Manufacturer" does not include a microbrewery or a farm
28       winery.
29             (p) (v) "Microbrewery" means a brewery licensed by the director to
30       manufacture, store and sell domestic beer.
31             (w) "Minibar" means a closed cabinet, whether nonrefrigerated or
32       wholly or partially refrigerated, access to the interior of which is restricted
33       by means of a locking device which requires the use of a key, magnetic
34       card or similar device.
35             (q) (x) "Minor" means any person under 21 years of age.
36             (y) "Morals charge" means a charge involving prostitution; procuring
37       any person; solicitation of a child under 18 years of age for any immoral
38       act involving sex; possession or sale of narcotics, marijuana, ampheta-
39       mines or barbiturates; rape; incest; or gambling.
40             (z) "Nonalcoholic malt beverage" means a beverage containing less
41       than .5% alcohol by volume obtained by alcohol fermentation of an in-
42       fusion or concoction of barley, or other grain, malt and hops in water and
43       includes beer, ale, stout, lager beer, porter and similar beverages having

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  1       such alcoholic content.
  2             (r) (aa) "Nonbeverage user" means any manufacturer person who
  3       purchases alcohol or wine for the use in the manufacture of any of the
  4       products set forth and described in K.S.A. 41-501 section 64, and amend-
  5       ments thereto, when the products contain alcohol or wine, and all labo-
  6       ratories using alcohol for nonbeverage purposes.
  7             (s) (bb) "Original package" means any bottle, flask, jug, can, cask,
  8       barrel, keg, hogshead or other receptacle or container whatsoever, used,
  9       corked or capped, sealed and labeled by the manufacturer of alcoholic
10       liquor, to contain and to convey any alcoholic liquor. Original container
11       does not include a sleeve.
12             (t) (cc) "Person" means any natural person, corporation, partnership,
13       trust or association.
14             (u) (dd) "Primary American source of supply" means the manufac-
15       turer, the owner of alcoholic liquor at the time it becomes a marketable
16       product or the manufacturer's or owner's exclusive agent who, if the al-
17       coholic liquor cannot be secured directly from such manufacturer or
18       owner by American wholesalers, is the source closest to such manufac-
19       turer or owner in the channel of commerce from which the product can
20       be secured by American wholesalers.
21             (ee) "Restaurant" means:
22             (1) In the case of a club, a licensed food service establishment which,
23       as determined by the director, derives from sales of food for consumption
24       on the licensed club premises not less than 50% of its gross receipts from
25       all sales of food and beverages on such premises in a 12-month period;
26             (2) in the case of a drinking establishment subject to a food sales
27       requirement under section 118, and amendments thereto, a licensed food
28       service establishment which, as determined by the director, derives from
29       sales of food for consumption on the licensed drinking establishment
30       premises not less than 30% of its gross receipts from all sales of food and
31       beverages on such premises in a 12-month period; and
32             (3) in the case of a drinking establishment subject to no food sales
33       requirement under section 118, and amendments thereto, a licensed food
34       service establishment.
35             (v) (ff)  (1) "Retailer" means a person who sells at retail, or offers for
36       sale at retail, alcoholic liquors.
37             (2) "Retailer" does not include a microbrewery or a farm winery.
38             (gg) "RV resort" means premises where a place to park recreational
39       vehicles, as defined in K.S.A. 75-1212, and amendments thereto, is offered
40       for pay, primarily to transient guests for overnight or longer use while
41       such recreational vehicles are used as sleeping or living accommodations.
42             (w) (hh) "Sale" means any transfer, exchange or barter in any manner
43       or by any means whatsoever for a consideration and includes all sales

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  1       made by any person, whether principal, proprietor, agent, servant or
  2       employee.
  3             (x) (ii) "Salesperson" means any natural person who:
  4             (1) Procures or seeks to procure an order, bargain, contract or agree-
  5       ment for the sale of alcoholic liquor or cereal malt beverage; or
  6             (2) is engaged in promoting the sale of alcoholic liquor or cereal malt
  7       beverage, or in promoting the business of any person, firm or corporation
  8       engaged in the manufacturing and selling of alcoholic liquor or cereal
  9       malt beverage, whether the seller resides within the state of Kansas and
10       sells to licensed buyers within the state of Kansas, or whether the seller
11       resides without the state of Kansas and sells to licensed buyers within the
12       state of Kansas.
13             (y) (jj) "Secretary" means the secretary of revenue.
14             (z) (kk)  (1) "Sell at retail" and "sale at retail" refer to and mean sales
15       for use or consumption and not for resale in any form and sales to clubs,
16       licensed drinking establishments, licensed caterers or holders of tempo-
17       rary permits.
18             (2) "Sell at retail" and "sale at retail" do not refer to or mean sales
19       by a distributor, a microbrewery, a farm winery, a licensed club, a licensed
20       drinking establishment, a licensed caterer or a holder of a temporary
21       permit.
22             (aa) (ll) "To sell" includes to solicit or receive an order for, to keep
23       or expose for sale and to keep with intent to sell.
24             (bb) (mm) "Sleeve" means a package of two or more 50-milliliter (3.2-
25       fluid-ounce) containers of spirits.
26             (cc) (nn) "Spirits" means any beverage which contains alcohol ob-
27       tained by distillation, mixed with water or other substance in solution,
28       and includes brandy, rum, whiskey, gin or other spirituous liquors, and
29       such liquors when rectified, blended or otherwise mixed with alcohol or
30       other substances.
31             (dd) (oo) "Supplier" means a manufacturer of alcoholic liquor or ce-
32       real malt beverage or an agent of such manufacturer, other than a
33       salesperson.
34             (ee) "Temporary permit" has the meaning provided by K.S.A. 41-
35       2601, and amendments thereto.
36             (pp) "Temporary liquor-by-the-drink permit" means a temporary
37       permit used pursuant to section 121, and amendments thereto.
38             (qq) "Temporary package permit" means a temporary permit issued
39       pursuant to section 54, and amendments thereto.
40             (ff) (rr) "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.  4. K.S.A. 41-103 is hereby amended to read as follows: 41-103.
  3       The legislature hereby declares the public policy of this state to be that:
  4       (a) Cereal malt beverage shall be sold at retail separately from sales of
  5       alcoholic liquor at retail; (b) cereal malt beverage shall be sold and dis-
  6       pensed at retail in rooms or premises separate and distinct from rooms
  7       or premises where alcoholic liquor is sold; and (c) no retailer's license for
  8       the sale of alcoholic liquor shall be granted to any applicant making ap-
  9       plication therefor if the premises sought to be licensed are located outside
10       the corporate limits of any city within this state, except as provided in
11       K.S.A. 41-303 section 18, and amendments thereto.
12             Sec.  5. K.S.A. 41-104 is hereby amended to read as follows: 41-104.
13       No person shall manufacture, bottle, blend, sell, barter, transport, deliver,
14       furnish or possess any alcoholic liquor or cereal malt beverage for bev-
15       erage purposes, except as specifically provided in this act, the club and
16       drinking establishment act or article 27 of chapter 41 of the Kansas Stat-
17       utes Annotated or the cereal malt beverage act, except that nothing con-
18       tained in this act shall prevent:
19             (a) The possession and transportation of alcoholic liquor or cereal
20       malt beverage for the personal use of the possessor, the possessor's family
21       and guests except that the provisions of K.S.A. 41-1103 and amendments
22       thereto relating to transportation and the provisions of K.S.A. 41-407
23       section 60, and amendments thereto, shall be applicable to all persons;
24             (b) the making of wine, cider or beer by a person from fruits, vege-
25       tables or grains, or the product thereof, by simple fermentation and with-
26       out distillation, if it is made solely for the use of the maker and the maker's
27       family;
28             (c) any duly licensed practicing physician or dentist from possessing
29       or using alcoholic liquor in the strict practice of the medical or dental
30       profession;
31             (d) any hospital or other institution caring for sick and diseased per-
32       sons, from possessing and using alcoholic liquor for the treatment of bona
33       fide patients of such hospital or institution;
34             (e) any drugstore employing a licensed pharmacist from possessing
35       and using alcoholic liquor in the compounding of prescriptions of duly
36       licensed physicians; or
37             (f) the possession and dispensation of wine by an authorized repre-
38       sentative of any church for the purpose of conducting any bona fide rite
39       or religious ceremony conducted by such church.
40             Sec.  6. K.S.A. 41-105 is hereby amended to read as follows: 41-105.
41       None of the provisions of this act shall apply to: (1) To The manufacture
42       of denatured alcohol produced in accordance with acts of congress and
43       regulations promulgated thereunder; (2) to flavoring extracts, syrups, or

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  1       medicinal, mechanical, scientific, culinary or toilet preparations, or food
  2       products unfit for beverage purposes, but the provisions of this act shall
  3       not be construed to exclude or not apply to alcoholic liquor used in the
  4       manufacture, preparation or compounding of such preparations and
  5       products; or (3) to wine intended for use and used by any church or
  6       religious organization for sacramental purposes.
  7             Sec.  7. K.S.A. 1998 Supp. 41-201 is hereby amended to read as fol-
  8       lows: 41-201. (a) The director of alcoholic beverage control and agents
  9       and employees of the director designated by the director, with the ap-
10       proval of the secretary of revenue, are hereby vested with the power and
11       authority of peace and police officers, in the execution of the duties im-
12       posed upon the director of alcoholic beverage control by this act and in
13       enforcing the provisions of this act and the provisions of K.S.A. 1998
14       Supp. 8-1599, and amendments thereto.
15             (b) The director and each agent and employee designated by the
16       director under subsection (a), with the approval of the secretary of rev-
17       enue, shall have the authority to make arrests, conduct searches and sei-
18       zures and carry firearms while investigating violations of this act or vio-
19       lations of K.S.A. 1998 Supp. 8-1599, and amendments thereto, and during
20       the routine conduct of their duties as determined by the director or des-
21       ignee. In addition to the above, the director and such agents and em-
22       ployees shall have the authority to make arrests, conduct searches and
23       seizures and generally to enforce all the criminal laws of the state as
24       violations of those laws are encountered by such employees or agents
25       during the routine performance of their duties. In addition to or in lieu
26       of the above, the director and the director's agents and employees shall
27       have the authority to issue notices to appear pursuant to K.S.A. 22-2408,
28       and amendments thereto. No agent or employee of the director shall be
29       certified to carry firearms under the provisions of this section without
30       having first successfully completed the firearm training course or courses
31       prescribed for law enforcement officers under subsection (a) of K.S.A.
32       74-5604a, and amendments thereto. The director may adopt rules and
33       regulations prescribing other training required for such agents or
34       employees.
35             (c) The attorney general shall appoint, with the approval of the sec-
36       retary of revenue, an assistant attorney general who shall be the attorney
37       for the director of alcoholic beverage control and the division of alcoholic
38       beverage control, and who shall receive an annual salary fixed by the
39       attorney general with the approval of the director of alcoholic beverage
40       control and the state finance council.
41             Sec.  8. K.S.A. 41-202 is hereby amended to read as follows: 41-202.
42       The office of the director of alcoholic beverage control shall be in Topeka,
43       but the director may, with the approval of the secretary of revenue, may

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  1       establish and maintain branch offices at places other than the seat of
  2       government.
  3             Sec.  9. K.S.A. 41-204 is hereby amended to read as follows: 41-204.
  4       (a) No person shall be appointed director who is not a citizen of the
  5       United States and who has not resided in the state of Kansas successively
  6       for five years immediately preceding the date of appointment.
  7             (b) No person shall be appointed deputy director who is not a citizen
  8       of the United States and who has not resided in the state of Kansas suc-
  9       cessively for two years immediately preceding the date of appointment.
10             (c) No person shall be appointed director or deputy director if such
11       person has been convicted of a felony or of any violation of any federal
12       or state law concerning the manufacture or sale of alcoholic liquor or
13       cereal malt beverages, has paid a fine or penalty in settlement in any
14       prosecution against such person in any violation of such laws or has for-
15       feited bond to appear in court to answer charges for any such violation.
16             (d) No person appointed director, deputy director or agent or em-
17       ployee of the director may, directly or, indirectly, individually or as a
18       member of a partnership, or as or a shareholder of a corporation, may:
19       (1) Have any interest whatsoever in the manufacture, sale or distribution
20       of alcoholic liquor, nor; (2) receive any compensation or profit therefrom,
21       nor; (3) have any interest whatsoever in the purchases or sales made by
22       the persons authorized by this act, or to; or (4) purchase or to sell alcoholic
23       liquor. None of the provisions of this subsection shall prevent a person
24       subject to this subsection from purchasing and keeping in the person's
25       possession for the use of the person or the person's family or guests any
26       alcoholic liquor which may be purchased or kept by any person by virtue
27       of this act.
28             New Sec.  10. The director, deputy director and each person ap-
29       pointed by the director shall take and subscribe an oath to support and
30       enforce the provisions of this act and the constitution of the state of
31       Kansas.
32             Sec.  11. K.S.A. 41-206 is hereby amended to read as follows: 41-206.
33       (a) Except as permitted pursuant to by subsection (b), neither the director
34       nor any employee in the office of the director shall: (1) Solicit or accept,
35       directly or indirectly, any gift, gratuity, emolument or employment from
36       any manufacturer, distributor, wholesaler or retailer of alcoholic liquor
37       or from any person who is an applicant for any license or is a licensee
38       under the provisions of this act, or from any officer, agent or employee
39       thereof; or (2) solicit requests from or recommend, directly or indirectly,
40       to any such person, or to any officer, agent or employee thereof, the
41       appointment of any person to any place or position. Any such person,
42       officer, agent or employee thereof, is hereby forbidden to offer to the
43       director, or any employee in the office of the director, any gift, gratuity,

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  1       emolument or employment, except as permitted pursuant to by subsec-
  2       tion (b).
  3             (b) The secretary may adopt rules and regulations allowing the ac-
  4       ceptance of official hospitality by the director and employees in the office
  5       of the director, subject to such limits as prescribed by the secretary.
  6             (c) If any person who is the director or an employee in the office of
  7       the director violates any provision of this section, such person shall be
  8       removed from such person's office or employment.
  9             (d) Violation of any provision of this section is a misdemeanor pun-
10       ishable by a fine of not more than $500 or imprisonment of not less than
11       60 days nor more than six months, or both such fine and imprisonment.
12             (e) (d) Nothing contained in this section shall be construed as pre-
13       venting the prosecution and punishment of any person for bribery as
14       defined in the Kansas criminal code of this state.
15             Sec.  12. K.S.A. 41-207 is hereby amended to read as follows: 41-207.
16       (a) The director may, for authentication of the records, process and pro-
17       ceedings of the director, may adopt and keep and use a common seal of
18       which judicial notice shall be taken in all of the courts of the state. Any
19       process, notice or other paper which the director may be authorized by
20       law to issue shall be deemed sufficient if signed by the director or deputy
21       director and authenticated by the seal of the director.
22             (b) All acts, orders, proceedings, rules and regulations, entries,
23       minutes and other records of the director and all reports and documents
24       filed with the director may be proved in any court of this state by copy
25       thereof certified to by the director or the deputy director with the seal
26       of the director attached. A written certificate stating that after diligent
27       search no record or entry of a specified tenor is found to exist in the
28       records of the office of state director of alcoholic beverage control, when
29       signed and certified to by the director or the deputy director and au-
30       thenticated by the seal of the director, shall be admissible as evidence in
31       any court of this state to prove that the records of the office contain no
32       such record or entry.
33             Sec.  13. K.S.A. 41-209 is hereby amended to read as follows: 41-209.
34       The director shall have the following powers, functions and duties:
35             (a) To receive applications for, and to issue and revoke licenses to
36       manufacturers, distributors, nonbeverage users and retailers and permits
37       in accordance with the provisions of this act and the cereal malt beverage
38       act;
39             (b) to call upon other administrative departments of the state, county
40       and city governments, sheriffs, city police departments, city marshals, law
41       enforcement officers and upon prosecuting officers for such information
42       and assistance as the director deems necessary in the performance of the
43       duties imposed upon the director by this act;

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  1             (c) to inspect or cause to be inspected, any premises where alcoholic
  2       liquors are manufactured, distributed or sold;
  3             (d) in the conduct of any hearing authorized to be held by the director
  4       to examine, or cause to be examined, under oath, any person, and to
  5       examine or cause to be examined books and records of any licensee; to
  6       hear testimony and take proof material for the information of the director
  7       in the discharge of such duties hereunder; to administer or cause to be
  8       administered oaths; and for any such purposes to issue subpoenas to re-
  9       quire the attendance of witnesses and the production of books which shall
10       be effective in any part of this state; and any district court or any judge
11       of the district court, either in term time or vacation, may by order duly
12       entered, require the attendance of witnesses and the production of rel-
13       evant books subpoenaed by the director, and the court or judge may
14       compel obedience to the order by proceedings for contempt;
15             (e) to collect, receive, account for and turn over to the secretary of
16       revenue all registration and license fees and taxes provided for in this act
17       and all other moneys received by the director by virtue of the director's
18       office; and
19             (f) such other powers, functions and duties as are or may be imposed
20       or conferred upon the director by law.
21             New Sec.  14. (a) The director shall propose such rules and regula-
22       tions as necessary to carry out the intent and purposes of this act. After
23       the hearing on a proposed rule and regulation has been held as required
24       by law, the director shall submit the proposed rule and regulation to the
25       secretary of revenue who, if the secretary approves such rule and regu-
26       lation, shall adopt the rule and regulation.
27             (b) It is intended by this act that the director of alcoholic beverage
28       control shall have broad discretionary powers to govern the traffic in al-
29       coholic liquors and to enforce strictly all the provisions of this act in the
30       interest of sanitation, purity of products, truthful representation and hon-
31       est dealings in such manner as generally will promote the public health
32       and welfare. All valid rules and regulations adopted under the provisions
33       of this act shall be absolutely binding upon all licensees and enforceable
34       by the director of alcoholic beverage control through the power of sus-
35       pension or revocation of licenses.
36             Sec.  15. K.S.A. 41-211 is hereby amended to read as follows: 41-211.
37       (a) The rules and regulations adopted by the secretary of revenue pur-
38       suant to K.S.A. 41-210 section 14, and amendments thereto,shall include
39       rules and regulations:
40             (1) Prescribing the nature, form and capacity of all containers used
41       for alcoholic liquors;.
42             (2) Prescribing the nature of and the representations to be shown
43       upon the labels attached to the containers and requiring that the labels

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  1       attached to all original containers or packages of alcoholic liquors sold or
  2       offered for sale in this state shall set forth in plain and legible print in the
  3       English language the quantity of such liquors, exclusive of the package
  4       or cask containing them, in either metric or English measurement;.
  5             (3) Prescribing administrative procedures for the issuance of licenses
  6       and the investigation of license applications and providing for advisory
  7       recommendations from governing bodies of cities as to retailers' licenses
  8       and for hearings on applications;.
  9             (4) Prescribing conditions for the issuance of duplicate licenses in lieu
10       of those lost or destroyed;.
11             (5) Prescribing those violations of the rules and regulations for which
12       licenses shall be suspended or revoked;.
13             (6) Establishing standards of purity, sanitation and honest advertising
14       and representations;.
15             (7) requiring the destruction of stamps upon containers which have
16       been opened;
17             (7) Establishing criteria for determining whether an applicant or li-
18       censee is a bona fide nonprofit social, fraternal or war veterans club, based
19       on the following standards:
20             (A) An applicant or licensee is a bona fide nonprofit social club if:
21             (i) It is organized and operated exclusively for pleasure, recreation
22       and other nonprofitable purposes; and
23             (ii) no part of its net earnings inures to the benefit of any of its private
24       shareholders or members.
25             (B) An applicant or licensee is a bona fide nonprofit fraternal club if:
26             (i) It is a fraternal beneficiary society, order or association which
27       operates under the lodge system, or for the exclusive benefit of the mem-
28       bers of a fraternity itself operating under the lodge system; and
29             (ii) such society, order or association provides for the payment of life,
30       sickness, accident or other benefits to its members or their dependents.
31             (C) An applicant or licensee is a bona fide nonprofit war veterans
32       club if:
33             (i) It is a post or organization of war veterans or an auxiliary unit or
34       society of, or a trust or foundation for, any such post or organization,
35       organized in the United States or any of its possessions;
36             (ii) not less than 75% of its members are war veterans and substan-
37       tially all of its other members are veterans or widows or widowers of
38       veterans; and
39             (iii) no part of its net earnings inures to the benefit of any private
40       shareholder or individual.
41             (8) In the case of manufacturers and distributors of alcoholic liquors,
42       requiring the labels attached to all containers of such liquors which are
43       intended for sale in this state to set forth, in plain legible print in the

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  1       English language, the name and kind of alcoholic liquors contained
  2       therein, together with their alcoholic content, and if a blended product
  3       (except wine) to so state, except that, if the director deems it unnecessary
  4       to show the alcoholic content of beer on labels of containers of beer, the
  5       alcoholic content shall not be required to be shown thereon; and.
  6             (9) Providing for such other details as are necessary or convenient to
  7       the administration and enforcement of this act.
  8             (b) Any rules and regulations adopted pursuant to subsection (a)(7)
  9       shall be based on the same criteria and standards used to determine the
10       right to exemption from federal income taxes pursuant to section
11       501(c)(7), (8) and (19) of the internal revenue code of 1986, as amended.
12             (b) (c) The secretary of revenue may adopt rules and regulations pur-
13       suant to K.S.A. 41-210 section 14, and amendments thereto,establishing:
14             (1) Standards of manufacture of alcoholic liquors and beer, regardless
15       of its alcoholic content, not inconsistent with federal laws, in order to
16       insure the use of proper ingredients and methods in the manufacture and
17       distribution thereof; and
18             (2) standards, not inconsistent with federal law, for the proper label-
19       ing of containers or barrels, casks or other bulk containers or bottles of
20       alcoholic liquor and beer, regardless of its alcoholic content, manufac-
21       tured or sold in this state.
22             Sec.  16. K.S.A. 41-301 is hereby amended to read as follows: 41-301.
23       (a) The director shall issue to qualified applicants, who have filed the
24       bond and paid the registration and license fees required by this act, li-
25       censes to sell alcoholic liquor at retail in the original package within the
26       corporate limits of cities and outside the corporate limits of cities in cer-
27       tain townships as provided in this act: Provided, That. No such retailer's
28       license shall be issued for any premises within any city of the first or
29       second class wherein unless a majority of the qualified electors of such
30       city who voted on the proposition to amend section 10 of article 15 of
31       the constitution of the state of Kansas at the general election held in
32       November, 1948, shall have voted against the adoption of such proposi-
33       tion or in cities of the third class located in a township, or townships,
34       wherein a majority of the qualified electors of such township, or town-
35       ships, who voted on said proposition to amend the constitution at said
36       election shall have voted against its adoption, until a majority of the qual-
37       ified electors of such city voting at an election held as provided by K.S.A.
38       41-302, shall have declared by their votes to be in favor of the licensing
39       of the sale of alcoholic liquor by the package in such city have voted in
40       favor thereof.
41             (b) As used in this section, "proposition" means:
42             (1) The proposition to amend section 10 of article 15 of the consti-
43       tution of the state of Kansas submitted at the general election held in

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  1       November, 1948; or
  2             (2) a proposition to sell alcoholic liquor by the package submitted at
  3       an election held as provided by section 17, and amendments thereto.
  4             Sec.  17. K.S.A. 1998 Supp. 41-302 is hereby amended to read as
  5       follows: 41-302. (a) The question of licensing the retail sale of alcoholi-
  6       cliquors liquor by the package shall be submitted by the governing body
  7       of any city at any regular general city election occurring in such city when-
  8       ever a petition requesting such submission has been filed with the city
  9       clerk of any such city as hereinafter provided.
10             In cities of the first and second class, Any such petition shall be signed
11       by such number of electors of such city which equals 30% or more of the
12       total vote cast in such city at the last general election for the office of
13       secretary of state. In cities of the third class, any such petition shall be
14       signed by such number of electors of such city which equals 40% or more
15       of the total vote cast at the last general city election held in such city of
16       the third class for candidates for the city office for which the greatest
17       number of total votes were cast. Each sheet of each petition shall comply
18       with the provisions of K.S.A. 25-3601 through 25-3607, and amendments
19       thereto. No signature on such petition shall be valid unless appended to
20       the petition within the last 90 days prior to the date of filing the petition
21       with the city clerk.
22             Such petition shall be filed not less than 40 nor more than 60 days prior
23       to the date of the election. After any such petition has been filed no
24       signature shall be withdrawn and no signature shall be added. The gov-
25       erning body of the city shall have the power to determine the sufficiency
26       of any such petition. Any person who signs a proposal or petition author-
27       ized by this section and who knowingly is not a qualified elector in the
28       place where such proposal or petition is made, or who aids or abets any
29       other persons in doing any of the acts mentioned, or any person who
30       bribes, gives or pays any money or thing of value to any person directly
31       or indirectly to induce such person to sign such proposal or petition shall
32       be guilty of a misdemeanor and upon conviction thereof shall be punished
33       by fine of not more than $300 or by imprisonment of not more than 90
34       days, or by both such fine and imprisonment in the discretion of the court.
35             (b) Upon the ballot the proposition shall be stated as follows:
36      
 "Shall the sale of alcoholic liquors by the package be licensed in YES  
37       (here insert the name of the city)?"                             NO  
38             Voters desiring to vote in favor of the sale of alcoholic liquors by the package shall place
39       a cross or check mark in the square opposite the word "Yes" and those desiring to vote
40       against the sale of alcoholic liquor by the package shall place a cross or check mark in the
41       square opposite the word "No."
42             (c) Upon the filing of a sufficient petition or upon adoption of a res-
43       olution by the governing body, the governing body shall call any election

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  1       required by this section and notice of such election shall be given in the
  2       manner provided by the general bond law. The provisions of the laws of
  3       this state relating to election officers, voting places, election places and
  4       blanks, preparation and form of ballots, information to voters, delivery of
  5       ballots, calling of elections, conduct of elections, manner of voting, count-
  6       ing of votes, records and certificates of election, and recounts of votes,
  7       so far as applicable, shall apply to voting on the proposition under the
  8       provisions of this act.
  9             (d) The majority of those voting on the proposition shall be manda-
10       tory upon the director insofar as licensing the sale of such liquors therein
11       by the package is concerned. In the absence of any vote on the question
12       of licensing the sale of such liquors in cities of the first and second class
13       wherein a majority of the qualified electors of such city who voted on the
14       proposition to amend section 10 of article 15 of the constitution of the
15       state of Kansas at the general election held in November, 1948, shall have
16       voted in favor of the adoption of such proposition and in cities of the
17       third class located in townships wherein a majority of the qualified elec-
18       tors voted in favor of such constitutional amendment and in the absence
19       of any further vote in cities of the first, second or third class in which a
20       majority of the qualified electors of such city shall have voted at any
21       special or general city election in favor of the licensing of the sale of
22       alcoholic liquor by the package, the director shall continue to issue li-
23       censes to sell the same by the package therein for periods of one year,
24       subject to all the terms and conditions of this act.
25             (d) If a majority of the electors voting on the proposition vote in favor
26       thereof, the director shall issue licenses to qualified applicants for the
27       retail sale of alcoholic liquor in such city. Subject to the provisions of this
28       act, such licenses shall be valid for one year from the date of issuance.
29             (e) The question of continuing the retail sale of alcoholic liquor in a
30       city may be submitted to the electors of such city in the same manner and
31       subject to the limitations provided by this section.
32             (e) (f) If a majority of the electors voting at any such election held
33       pursuant to subsection (a) shall vote against licensing the retail sale of
34       alcoholic liquors by the package liquor, the holder of any valid existing
35       retailer's license for premises in such city shall have the right to continue
36       to operate under such license for a period not to exceed 90 days after the
37       result of such election is canvassed or until the expiration of such license,
38       whichever period of time is the shorter. If such period of time expires
39       before the expiration of the term for which the retailer's license was
40       issued, such licensee shall be entitled to a refund of that portion of the
41       license period which is unavailable to such licensee in accordance with
42       rules and regulations established by the secretary of revenue.
43             (f) For the purpose of determining as provided in K.S.A. 41-301, and

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  1       amendments thereto, and in this section whether a majority of the qual-
  2       ified electors of a township in which a city of the third class is located
  3       voted against the adoption of the liquor amendment at the general elec-
  4       tion held in November, 1948, if any city of the third class is located in
  5       two or more townships, the total vote for and against the amendment in
  6       all the townships in which such city is located shall be used to determine
  7       whether such city is located in a township in which a majority of the
  8       qualified electors voted against the amendment.
  9             Sec.  18. K.S.A. 41-303 is hereby amended to read as follows: 41-303.
10       The director may license the sale of alcoholic liquor at retail in the original
11       package on premises not located in an incorporated city for use or con-
12       sumption off the premises, if such premises are located in any township
13       having a population of more than eleven thousand (11,000) 11,000. No
14       such license shall be granted to any applicant unless he shall possess the
15       applicant meets all the qualifications required of other applicants for re-
16       tailers' licenses except the qualification of residence within a city. In the
17       event that If any license has been issued under the provisions of this
18       section in a township having a population of more than eleven thousand
19       (11,000) 11,000, and thereafter such township population decreases or
20       has decreased to eleven thousand (11,000) 11,000 or less, such licenses
21       shall continue to be valid and the licensees shall be eligible for renewal
22       of such licenses at the appropriate time if they are otherwise qualified.
23             In the event that If any license has been issued under the provisions
24       of this section in a township having a population of more than eleven
25       thousand (11,000) 11,000, and thereafter the premises so licensed are
26       annexed to a city wherein retail liquor licenses may be issued, such li-
27       censes shall continue to be valid and the licensees shall be eligible for
28       renewal of such licenses at the appropriate time even though the licensees
29       shall not reside in the cities to which the areas are annexed if they are
30       otherwise qualified and if they reside in the township in which the prem-
31       ises were originally located or in the city to which the premises have been
32       annexed.
33             Sec.  19. K.S.A. 41-304 is hereby amended to read as follows: 41-304.
34       (a) The director shall issue an initial and an annual renewal license to
35       each applicant for licensure that qualifies under this act.
36             (b) Licenses and permits issued by the director shall be of the follow-
37       ing classes: (a) (1) Supplier's permit; (2) manufacturer's license; (b) (3)
38       spirits distributor's license; (c) (4) wine distributor's license; (d) (5) beer
39       distributor's license; (e) (6) retailer's license; (f) (7) microbrewery license;
40       (g) (8) farm winery license; (9) winery outlet license; and (h) (10) non-
41       beverage user's license; (11) temporary package permit; (12) club license;
42       (13) drinking establishment license; (14) caterer's license; (15) temporary
43       liquor-by-the-drink permit; and (16) salesperson's permit.

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  1             New Sec.  20. A manufacturer's license shall allow the manufacture
  2       and storage of alcoholic liquor and cereal malt beverage and the sale of
  3       alcoholic liquor and cereal malt beverage to distributors and nonbeverage
  4       users licensed in this state and to such persons outside this state as per-
  5       mitted by law.
  6             Sec.  21. K.S.A. 1998 Supp. 41-306 is hereby amended to read as
  7       follows: 41-306. A spirits distributor's license, shall allow:
  8             (a) The wholesale purchase, importation and storage of spirits, but
  9       all such spirits so purchased or imported which are manufactured in the
10       United States shall be purchased from the primary American source of
11       supply or from another licensed spirits distributor, except that a licensed
12       spirits distributor may purchase confiscated spirits at a sheriff's sale.
13             (b) The sale of spirits to:
14             (1) Spirits distributors licensed in this state;
15             (2) retailers licensed in this state, except that such distributor shall
16       sell a brand of spirits only to those retailers whose licensed premises are
17       located in the geographic territory within which such distributor is au-
18       thorized to sell such brand, as designated in the notice or notices filed
19       with the director pursuant to K.S.A. 41-410 section 63, and amendments
20       thereto; and
21             (3) such persons located outside such territory or outside this state
22       as permitted by law.
23             (c) The purchase of spirits in barrels, casks or other bulk containers
24       and the bottling thereof before resale, but all bottles or containers filled
25       with such spirits shall be sealed, labeled and otherwise made to comply
26       with all laws and rules and regulations governing the preparation and
27       bottling of spirits by manufacturers and with all federal rules, regulations
28       and laws.
29             (d) The storage and delivery to a retailer licensed under the Kansas
30       liquor control act or a retailer licensed under K.S.A. 41-2702, and amend-
31       ments thereto, on the distributor's licensed premises, of alcoholic liquor
32       or cereal malt beverage of another licensed distributor authorized by law
33       to sell such alcoholic liquor or cereal malt beverage to such retailer, in
34       accordance with an agreement entered into with such other distributor
35       and approved by the director.
36             Sec.  22. K.S.A. 1998 Supp. 41-306a is hereby amended to read as
37       follows: 41-306a. A wine distributor's license shall allow:
38             (a) The wholesale purchase, importation and storage of wine, but all
39       wine so purchased or imported which is manufactured in the United
40       States shall be purchased from the primary American source of supply or
41       from another licensed wine distributor, except that a licensed wine dis-
42       tributor may purchase confiscated wine at a sheriff's sale.
43             (b) The sale of wine to:

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  1             (1) Wine distributors licensed in this state;
  2             (2) retailers licensed in this state, except that such distributor shall
  3       sell a brand of wine only to those retailers whose licensed premises are
  4       located in the geographic territory within which such distributor is au-
  5       thorized to sell such brand, as designated in the notice or notices filed
  6       with the director pursuant to K.S.A. 41-410 section 63, and amendments
  7       thereto; and
  8             (3) such persons located outside such territory or outside this state
  9       as permitted by law.
10             (c) The sale of wine, but only in barrels, casks and other bulk con-
11       tainers, to:
12             (1) Licensed caterers; and
13             (2) clubs and drinking establishments licensed in this state, except
14       that such distributor shall sell a brand of wine only to such clubs and
15       drinking establishments the licensed premises of which are located in the
16       geographic territory within which such distributor is authorized to sell
17       such brand, as designated in the notice or notices filed with the director
18       pursuant to K.S.A. 41-410 section 63, and amendments thereto.
19             (d) The purchase of wine in barrels, casks or other bulk containers
20       and the bottling thereof before resale, but all bottles or containers filled
21       with such wine shall be sealed, labeled and otherwise made to comply
22       with all laws and rules and regulations governing the preparation and
23       bottling of wine by manufacturers and with all federal rules, regulations
24       and laws.
25             (e) The storage and delivery to a retailer licensed under the Kansas
26       liquor control act or a retailer licensed under K.S.A. 41-2702, and amend-
27       ments thereto, on the distributor's licensed premises, of alcoholic liquor
28       or cereal malt beverage of another licensed distributor authorized by law
29       to sell such alcoholic liquor or cereal malt beverage to such retailer, in
30       accordance with an agreement entered into with such other distributor
31       and approved by the director.
32             (f) This section shall be part of and supplemental to the Kansas liquor
33       control act.
34             Sec.  23. K.S.A. 1998 Supp. 41-307 is hereby amended to read as
35       follows: 41-307. A beer distributor's license shall allow:
36             (a) The wholesale purchase, importation and storage of beer.
37             (b) The sale of beer to:
38             (1) Licensed caterers;
39             (2) beer distributors licensed in this state;
40             (3) retailers, clubs and drinking establishments, licensed in this state,
41       except that such distributor shall sell a brand of beer only to those re-
42       tailers, clubs and drinking establishments of which the licensed premises
43       are located in the geographic territory within which such distributor is

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  1       authorized to sell such brand, as designated in the notice or notices filed
  2       with the director pursuant to K.S.A. 41-410 section 63, and amendments
  3       thereto; and
  4             (4) such persons located outside such territory or outside this state
  5       as permitted by law.
  6             (c) The sale of cereal malt beverage to:
  7             (1) Beer distributors licensed in this state;
  8             (2) clubs and drinking establishments, licensed in this state, and re-
  9       tailers licensed under K.S.A. 41-2702, and amendments thereto, except
10       that such distributor shall sell a brand of cereal malt beverage only to
11       those such clubs, drinking establishments and retailers of which the li-
12       censed premises are located in the geographic territory within which such
13       distributor is authorized to sell such brand, as designated in the notice or
14       notices filed with the director pursuant to K.S.A. 41-410 section 63, and
15       amendments thereto; and
16             (3) such persons located outside such territory or outside this state
17       as permitted by law.
18             (d) The purchase of cereal malt beverage in kegs or other bulk con-
19       tainers and the bottling or canning thereof in accordance with law.
20             (e) The storage and delivery to a retailer licensed under the Kansas
21       liquor control act or a retailer licensed under K.S.A. 41-2702, and amend-
22       ments thereto, on the distributor's licensed premises, of alcoholic liquor
23       or cereal malt beverage of another licensed distributor authorized by law
24       to sell such alcoholic liquor or cereal malt beverage to such retailer, in
25       accordance with an agreement entered into with such other distributor
26       and approved by the director.
27             New Sec.  24. (a) A retailer's license shall allow the licensee to sell
28       and offer for sale at retail and deliver in the original package, as therein
29       prescribed, alcoholic liquor for use or consumption off of and away from
30       the premises specified in such license. A retailer's license shall permit
31       sale and delivery of alcoholic liquor only on the licensed premises and
32       shall not permit sale of alcoholic liquor for resale in any form, except that
33       a licensed retailer may:
34             (1) Sell alcoholic liquor to a temporary permit holder for resale by
35       such permit holder; and
36             (2) sell and deliver alcoholic liquor to a caterer or to the licensed
37       premises of a club or drinking establishment, if such premises are in the
38       county where the retailer's premises are located or in an adjacent county,
39       for resale by such club, establishment or caterer.
40             (b) The holder of a retailer's license shall not sell, offer for sale, give
41       away or permit to be sold, offered for sale or given away in or from the
42       premises specified in such license any service or thing of value whatsoever
43       except alcoholic liquor in the original package, except that a licensed

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  1       retailer may:
  2             (1) Charge a delivery fee for delivery to a club, drinking establishment
  3       or caterer pursuant to subsection (a);
  4             (2) sell lottery tickets and shares to the public in accordance with the
  5       Kansas lottery act, if the retailer is selected as a lottery retailer;
  6             (3) include in the sale of alcoholic liquor any goods included by the
  7       manufacturer in packaging with the alcoholic liquor, subject to the ap-
  8       proval of the director; and
  9             (4) distribute to the public, without charge, consumer advertising
10       specialities bearing advertising matter, subject to rules and regulations of
11       the secretary limiting the form and distribution of such specialities so that
12       they are not conditioned on or an inducement to the purchase of alcoholic
13       liquor.
14             (c) No licensed retailer shall furnish any entertainment in such prem-
15       ises or permit any pinball machine or game of skill or chance to be located
16       in or on such premises.
17             (d) A retailer's license shall allow the licensee to store alcoholic liquor
18       in refrigerators, cold storage units, ice boxes or other cooling devices, and
19       the licensee may sell such alcoholic liquor to consumers in a chilled con-
20       dition.
21             Sec.  25. K.S.A. 1998 Supp. 41-308a is hereby amended to read as
22       follows: 41-308a. (a) A farm winery license shall allow:
23             (1) The manufacture of domestic table wine and domestic fortified
24       wine and the storage thereof;
25             (2) the sale of wine, manufactured by the licensee, to licensed wine
26       distributors, retailers, clubs, drinking establishments and caterers;
27             (3) the sale, on the licensed premises in the original unopened con-
28       tainer to consumers for consumption off the licensed premises, of wine
29       manufactured by the licensee;
30             (4) the serving on the licensed premises of samples of wine manu-
31       factured by the licensee or imported under subsection (f), if the premises
32       are located in a county where the sale of alcoholic liquor is permitted by
33       law in licensed drinking establishments; and
34             (5) if the licensee is also licensed as a club or drinking establishment,
35       the sale of domestic wine, domestic fortified wine and other alcoholic
36       liquor for consumption on the licensed premises as authorized by the
37       club and drinking establishment act.
38             (b) Upon application and payment of the fee prescribed by K.S.A.
39       41-310 section 28, and amendments thereto, by a farm winery licensee,
40       the director may issue not to exceed two winery outlet licenses to the
41       farm winery licensee. A winery outlet license shall allow:
42             (1) The sale, on the licensed premises in the original unopened con-
43       tainer to consumers for consumption off the licensed premises, of wine

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  1       manufactured by the licensee; and
  2             (2) the serving on the licensed premises of samples of wine manu-
  3       factured by the licensee or imported under subsection (f), if the premises
  4       are located in a county where the sale of alcoholic liquor is permitted by
  5       law in licensed drinking establishments.
  6             (c) Not less than 60% of the products utilized in the manufacture of
  7       domestic table wine and domestic fortified wine by a farm winery shall
  8       be grown in Kansas except when a lesser proportion is authorized by the
  9       director based upon the director's findings and judgment. The label of
10       domestic wine and domestic fortified wine shall indicate that a majority
11       of the products utilized in the manufacture of the wine at such winery
12       were grown in Kansas.
13             (d) A farm winery having a capacity of 50,000 gallons per year or more
14       which sells wine to any distributor shall be required to comply with all
15       provisions of article 4 of chapter 41 of the Kansas Statutes Annotated and
16       of K.S.A. 41-701 through 41-705 and 41-709 sections 55 through 63, 71
17       through 75 and 78, and amendments thereto, in the same manner and
18       subject to the same penalties as a manufacturer.
19             (e) A farm winery or winery outlet may sell domestic wine and do-
20       mestic fortified wine in the original unopened container to consumers for
21       consumption off the licensed premises at any time between 6 a.m. and
22       12 midnight on any day except Sunday and between 12 noon and 6 p.m.
23       on Sunday. If authorized by subsection (a), a farm winery may serve sam-
24       ples of domestic wine, domestic fortified wine and wine imported under
25       subsection (f) and serve and sell domestic wine, domestic fortified wine
26       and other alcoholic liquor for consumption on the licensed premises at
27       any time when a club or drinking establishment is authorized to serve
28       and sell alcoholic liquor. If authorized by subsection (b), a winery outlet
29       may serve samples of domestic wine, domestic fortified wine and wine
30       imported under subsection (f) at any time when the winery outlet is au-
31       thorized to sell domestic wine and domestic fortified wine.
32             (f) The director may issue to the Kansas state fair or any bona fide
33       group of grape growers or wine makers a permit to import into this state
34       small quantities of wines. Such wine shall be used only for bona fide
35       educational and scientific tasting programs and shall not be resold. Such
36       wine shall not be subject to the tax imposed by K.S.A. 41-501 section 64,
37       and amendments thereto. The permit shall identify specifically the brand
38       and type of wine to be imported, the quantity to be imported, the tasting
39       programs for which the wine is to be used and the times and locations of
40       such programs. The secretary shall adopt rules and regulations governing
41       the importation of wine pursuant to this subsection and the conduct of
42       tasting programs for which such wine is imported.
43             (g) A farm winery license or winery outlet license shall apply only to

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  1       the premises described in the application and in the license issued and
  2       only one location shall be described in the license.
  3             (h) No farm winery or winery outlet shall:
  4             (1) Employ any person under the age of 18 years in connection with
  5       the manufacture, sale or serving of any alcoholic liquor;
  6             (2) permit any employee of the licensee who is under the age of 21
  7       years to work on the licensed premises at any time when not under the
  8       on-premise supervision of either the licensee or an employee of the li-
  9       censee who is 21 years of age or over;
10             (3) employ any person under 21 years of age in connection with mix-
11       ing or dispensing alcoholic liquor; or
12             (4) employ any person in connection with the manufacture or sale of
13       alcoholic liquor if the person has been convicted of a felony.
14             (i) Whenever a farm winery or winery outlet licensee is convicted of
15       a violation of the Kansas liquor control act, the director may revoke the
16       licensee's license and order forfeiture of all fees paid for the license, after
17       a hearing before the director for that purpose in accordance with the
18       provisions of the Kansas administrative procedure act.
19             (j) This section shall be part of and supplemental to the Kansas liquor
20       control act.
21             New Sec.  26. (a) A microbrewery license shall allow:
22             (1) The manufacture of not less than 100 nor more than 15,000 bar-
23       rels of domestic beer during the license year and the storage thereof;
24             (2) the sale to beer distributors of beer, manufactured by the licensee;
25             (3) the sale, on the licensed premises in the original unopened con-
26       tainer to consumers for consumption off the licensed premises, of beer
27       manufactured by the licensee;
28             (4) the serving on the premises of samples of beer manufactured by
29       the licensee, if the premises are located in a county where the sale of
30       alcoholic liquor is permitted by law in licensed drinking establishments;
31             (5) if the licensee is also licensed as a club or drinking establishment,
32       the sale of domestic beer and other alcoholic liquor for consumption on
33       the licensed premises as authorized by the club and drinking establish-
34       ment act; and
35             (6) if the licensee is also licensed as a caterer, the sale of domestic
36       beer and other alcoholic liquor for consumption on unlicensed premises
37       as authorized by the club and drinking establishment act.
38             (b) Not less than 50% of the products utilized in the manufacture of
39       domestic beer by a microbrewery shall be grown in Kansas except when
40       a greater proportion of products grown outside this state is authorized by
41       the director based upon findings that such products are not available in
42       this state. The label of each container of domestic beer shall clearly set
43       forth the proportion of the products utilized in the manufacture of the

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  1       beer which was from agricultural products grown in Kansas.
  2             (c) A microbrewery may sell domestic beer in the original unopened
  3       container to consumers for consumption off the licensed premises at any
  4       time between 6 a.m. and 12 midnight on any day except Sunday and
  5       between 12 noon and 6 p.m. on Sunday. If authorized by subsection (a),
  6       a microbrewery may serve samples of domestic beer and serve and sell
  7       domestic beer and other alcoholic liquor for consumption on the licensed
  8       premises at any time when a club or drinking establishment is authorized
  9       to serve and sell alcoholic liquor.
10             (d) A microbrewery license shall apply only to the premises described
11       in the application and in the license issued and only one location shall be
12       described in the license.
13             (e) No microbrewery shall:
14             (1) Employ any person under the age of 18 years in connection with
15       the manufacture, sale or serving of any alcoholic liquor;
16             (2) permit any employee of the licensee who is under the age of 21
17       years to work on the licensed premises at any time when not under the
18       on-premises supervision of either the licensee or an employee of the
19       licensee who is 21 years of age or over;
20             (3) employ any person under 21 years of age in connection with mix-
21       ing or dispensing alcoholic liquor; or
22             (4) employ any person in connection with the manufacture or sale of
23       alcoholic liquor if the person has been convicted of a felony.
24             (f) Whenever a microbrewery licensee is convicted of a violation of
25       the Kansas liquor control act, the director may revoke the licensee's li-
26       cense and all fees paid for the license in accordance with the Kansas
27       administrative procedure act.
28             Sec.  27. K.S.A. 41-309 is hereby amended to read as follows: 41-309.
29       A nonbeverage user's license shall allow the licensee to purchase alcohol
30       or wine from a licensed manufacturer or distributor, without the impo-
31       sition of any tax upon the business of such licensed manufacturer or dis-
32       tributor as to such alcohol or wine, to be used by such nonbeverage user
33       licensee solely for the nonbeverage purposes set forth in subsection (5)
34       of K.S.A. 41-501: Provided, (e) of section 64, and amendments thereto,
35       except that if any such licensee is engaged in the business of manufac-
36       turing, compounding or preparing pharmaceutical products or similar
37       preparations or products containing alcohol or wine to be sold in both
38       intrastate and interstate commerce, such license shall allow the licensee
39       to purchase at wholesale or otherwise from manufacturers or distributors
40       not licensed in the state and to import alcohol or wine either in barrels,
41       drums, casks or other containers. All such licenses shall be divided and
42       classified and shall permit the purchase during the term for which such
43       licenses shall be issued of limited and stated quantities of alcohol or wine

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  1       as follows:
  2       Class 1, not to exceed .............................100 gallons
  3       Class 2, not to exceed ...........................1,000 gallons
  4       Class 3, not to exceed ...........................5,000 gallons
  5       Class 4, not to exceed ..........................10,000 gallons
  6       Class 5, in excess of ...........................10,000 gallons
  7             Sec.  28. K.S.A. 41-310 is hereby amended to read as follows: 41-310.
  8       (a) At the time application is made to the director for a license of any
  9       class, the applicant shall pay the fee provided by this section.
10             (b) The annual fee for a manufacturer's license to manufacture al-
11       cohol and spirits shall be $2,500.
12             (c) The annual fee for a manufacturer's license to manufacture beer
13       and cereal malt beverage shall be:
14             (1) For 1 to 100 barrel daily capacity or any part thereof, $200.
15             (2) For 100 to 150 barrel daily capacity, $400.
16             (3) For 150 to 200 barrel daily capacity, $700.
17             (4) For 200 to 300 barrel daily capacity, $1,000.
18             (5) For 300 to 400 barrel daily capacity, $1,300.
19             (6) For 400 to 500 barrel daily capacity, $1,400.
20             (7) For 500 or more barrel daily capacity, $1,600.
21             As used in this subsection, "daily capacity" means the average daily
22       barrel production for the previous 12 months of manufacturing operation.
23       If no basis for comparison exists, the licensee shall pay in advance for the
24       first year's operation a fee of $1,000.
25             (d) The annual fee for a manufacturer's license to manufacture wine
26       shall be $500.
27             (e) The annual fee for a microbrewery license or a farm winery li-
28       cense shall be $250.
29             The annual fee for a winery outlet license shall be $50.
30             (f) The annual fee for a spirits distributor's license for the first and
31       each additional distributing place of business operated in this state by the
32       licensee and wholesaling and jobbing spirits shall be $1,000.
33             (g) The annual fee for a wine distributor's license for the first and
34       each additional distributing place of business operated in this state by the
35       licensee and wholesaling and jobbing wine shall be $1,000.
36             (h) The annual fee for a beer distributor's license, for the first and
37       each additional wholesale distributing place of business operated in this
38       state by the licensee and wholesaling or jobbing beer and cereal malt
39       beverage shall be $1,000.
40             (i) The annual fee for a nonbeverage user's license shall be:
41             (1) For class 1, $10.
42             (2) For class 2, $50.
43             (3) For class 3, $100.

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  1             (4) For class 4, $200.
  2             (5) For class 5, $500.
  3             (j) In addition to the license fees prescribed by subsections (b), (c),
  4       (d), (f), (g), (h) and (i):
  5             (1) Any city in which the licensed premises are located may levy and
  6       collect an annual occupation or license tax on the licensee in an amount
  7       not exceeding the amount of the annual license fee required to be paid
  8       under this act to obtain the license, but no city shall impose an occupation
  9       or privilege tax on the licensee in excess of that amount; and
10             (2) any township in which the licensed premises are located may levy
11       and collect an annual occupation or license tax on the licensee in an
12       amount not exceeding the amount of the annual license fee required to
13       be paid under this act to obtain the license, but no township shall impose
14       an occupation or privilege tax on the licensee in excess of that amount;
15       the township board of the township is authorized to fix and impose the
16       tax and the tax shall be paid by the licensee to the township treasurer,
17       who shall issue a receipt therefor to the licensee and shall cause the tax
18       paid to be placed in the general fund of the township.
19             (k) (j) The annual fee for a retailer's license shall be $250.
20             (l) In addition to the license fee prescribed by subsection (k):
21             (1) Any city in which the licensed premises are located shall levy and
22       collect an annual occupation or license tax on the licensee in an amount
23       not less than $100 nor more than $300, but no other occupation or excise
24       tax or license fee shall be levied by any city against or collected from the
25       licensee; and
26             (2) any township in which the licensed premises are located shall levy
27       and collect an annual occupation or license tax on the licensee in an
28       amount not less than $100 nor more than $300; the township board of
29       the township is authorized to fix and impose the tax and the tax shall be
30       paid by the licensee to the township treasurer, who shall issue a receipt
31       therefor to the licensee and shall cause the tax paid to be placed in the
32       general fund of the township.
33             (k) The annual fee for a class A club license for a bona fide nonprofit
34       fraternal or war veterans club, as defined by rules and regulations of the
35       secretary, shall be $250.
36             (l) The annual fee for a class A club license for a bona fide nonprofit
37       social club, as defined by rules and regulations of the secretary, and which
38       has not more than 500 members, shall be $500.
39             (m) The annual fee for a class A club license for a bona fide nonprofit
40       social club, as defined by rules and regulations of the secretary, and which
41       has more than 500 members, shall be $1,000.
42             (n) The annual fee for a class B club license shall be $1,000.
43             (o) The annual fee for a drinking establishment license shall be $1,000.

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  1             (p) The annual fee for a hotel of which the entire premises are licensed
  2       as a drinking establishment shall be $3,000.
  3             (q) The annual fee for a caterer's license shall be $500.
  4             (r) The annual fee for a drinking establishment/caterer license shall
  5       be $1,500, except that the annual fee shall be $3,500 if the drinking es-
  6       tablishment is a hotel where the entire premises are licensed as a drinking
  7       establishment.
  8             (s) In addition to the license fees provided by this section:
  9             (1) Any city where the licensed premises of a manufacturer, distrib-
10       utor or nonbeverage user are located may levy and collect an annual
11       occupation or license tax on the licensee in an amount not exceeding the
12       amount of the annual license fee prescribed by this section, but no city
13       shall impose an occupation or privilege tax on the licensee in excess of
14       that amount.
15             (2) Any township where the licensed premises of a manufacturer, dis-
16       tributor or nonbeverage user are located may levy and collect an annual
17       occupation or license tax on the licensee in an amount not exceeding the
18       amount of the annual license fee prescribed by this section, but no town-
19       ship shall impose an occupation or privilege tax on the licensee in excess
20       of that amount. The township board of the township is authorized to fix
21       and impose the tax and the tax shall be paid by the licensee to the township
22       treasurer, who shall issue a receipt therefor to the licensee and shall cause
23       the tax paid to be placed in the general fund of the township.
24             (3) Any city where the licensed premises of a retailer are located shall
25       levy and collect an annual occupation or license tax on the licensee in an
26       amount not less than $100 nor more than $300, but no other occupation
27       or excise tax or license fee shall be levied by any city against or collected
28       from the licensee.
29             (4) Any township where the licensed premises of a retailer are located
30       shall levy and collect an annual occupation or license tax on the licensee
31       in an amount not less than $100 nor more than $300; the township board
32       of the township is authorized to fix and impose the tax and the tax shall
33       be paid by the licensee to the township treasurer, who shall issue a receipt
34       therefor to the licensee and shall cause the tax paid to be placed in the
35       general fund of the township.
36             (5) Any city where the licensed premises of a club or drinking estab-
37       lishment are located or, if such licensed premises are not located in a city,
38       the board of county commissioners of the county where the licensed prem-
39       ises are located may levy and collect an annual occupation or license tax
40       from the licensee in an amount equal to not less than $100 nor more than
41       $250 and no occupational or excise tax or license fee other than that
42       authorized by this section shall be levied by any city or county against or
43       collected from a licensed club or drinking establishment.

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  1             (t) The director shall remit to the state treasurer at least monthly all
  2       moneys received under this section. Upon receipt of each remittance, the
  3       state treasurer shall deposit the entire amount thereof in the state treasury
  4       and credit it as follows:
  5             (1) Of each deposit of amounts received from fees for a manufacturer's
  6       license, microbrewery license, farm winery license, winery outlet license,
  7       retailer's license, distributor's license or nonbeverage user's license, the
  8       entire amount shall be credited to the state general fund.
  9             (2) Of each deposit of amounts received from fees for a club license,
10       drinking establishment license, caterer's license or drinking establishment/
11       caterer's license, 50% shall be credited to the state general fund and 50%
12       shall be credited to the other state fees fund of the department of social
13       and rehabilitation services. In addition to the purposes for which expend-
14       itures may be made from the other state fees fund of the department of
15       social and rehabilitation services, expenditures may be made by the sec-
16       retary of social and rehabilitation services for the purpose of implementing
17       the powers and duties of the secretary under the provisions of K.S.A. 65-
18       4006 and 65-4007, and amendments thereto.
19             (m) (u) The license year for a license shall commence on the date
20       the license is issued by the director and shall end one year after that date.
21             Sec.  29. K.S.A. 1998 Supp. 41-311 is hereby amended to read as
22       follows: 41-311. (a) No license of any kind shall be issued pursuant to the
23       liquor control act to a person:
24             (1) Who has not been a citizen of the United States for at least 10
25       years, except that the spouse of a deceased retail licensee may receive
26       and renew a retail license notwithstanding the provisions of this subsec-
27       tion (a)(1) if such spouse is otherwise qualified to hold a retail license and
28       is a United States citizen or becomes a United States citizen within one
29       year after the deceased licensee's death;
30             (2) who has been convicted of a felony under the laws of this state,
31       any other state or the United States;
32             (3) who has had a license revoked for cause under the provisions of
33       this act or who has had any license issued under the alcoholic liquor or
34       cereal malt beverage laws of any state revoked for cause, except that a
35       license may be issued to a person whose license was revoked for the
36       conviction of a misdemeanor at any time after the lapse of 10 years fol-
37       lowing the date of the revocation;
38             (4) who has been convicted of being the keeper or is keeping a house
39       of prostitution or has forfeited bond to appear in court to answer charges
40       of being a keeper of a house of prostitution;
41             (5) who has been convicted of being a proprietor of a gambling house,
42       pandering or any other crime opposed to decency and morality a morals
43       charge or has forfeited bond to appear in court to answer charges for any

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  1       of those crimes a morals charge;
  2             (6) (5) who is not at least 21 years of age;
  3             (7) (6) who, other than as a member of the governing body of a city
  4       or county, appoints or supervises any law enforcement officer, who is a
  5       law enforcement official or who is an employee of the director, except
  6       that the provisions of this subsection shall not apply to nor prohibit the
  7       issuance of a license for a class A club to an officer of a post home of a
  8       congressionally chartered service or fraternal organization, or a benevo-
  9       lent association or society thereof;
10             (8) (7) who intends to carry on the business authorized by the license
11       as agent of another;
12             (9) (8) who at the time of application for renewal of any license issued
13       under this act would not be eligible for the license upon a first application,
14       except as provided by subsection (a)(12) (11);
15             (10) (9) who is the holder of a valid and existing license issued under
16       article 27 of chapter 41 of the Kansas Statutes Annotated the cereal malt
17       beverage act unless the person agrees to and does surrender the license
18       to the officer issuing the same upon the issuance to the person of a license
19       under this act, except that a retailer licensed pursuant to K.S.A. 41-2702
20       and amendments thereto under the cereal malt beverage act shall be el-
21       igible to receive a club, drinking establishment, caterer's or retailer's li-
22       cense or a temporary permit under the Kansas liquor control this act;
23             (11) (10) who does not own the premises for which a license is sought,
24       or does not have a written lease thereon for at least 3/4 of the period for
25       which the license is to be issued; or
26             (12) (11) whose spouse would be ineligible to receive a license under
27       this act for any reason other than citizenship, residence requirements or
28       age, except that this subsection (a)(12)(11) shall not apply in determining
29       eligibility for a renewal license.
30             (b) No retailer's license shall be issued to:
31             (1) A person who is not a resident of this state;
32             (2) a person who has not been a resident of this state for at least four
33       years immediately preceding the date of application;
34             (3) a person who has beneficial any interest in the manufacture, prep-
35       aration or wholesaling of alcoholic beverages;
36             (4) a person who has beneficial any interest in any other retail estab-
37       lishment licensed under this act, except that the spouse of a licensee may
38       own and hold a retailer's license for another retail establishment;
39             (5) a copartnership partnership, unless all of thecopartners partners
40       are qualified to obtain a license;
41             (6) a corporation; or
42             (7) a trust, if any grantor, beneficiary or trustee would be ineligible
43       to receive a license under this act for any reason, except that the provi-

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  1       sions of subsection (a)(6)(5) shall not apply in determining whether a
  2       beneficiary would be eligible for a license.
  3             (c) No manufacturer's license shall be issued to:
  4             (1) A corporation, if any officer or director thereof, or any stockholder
  5       owning in the aggregate more than 25% of the stock of the corporation
  6       would be ineligible to receive a manufacturer's license for any reason
  7       other than citizenship and residence requirements;
  8             (2) a copartnership partnership, unless all of the copartners partners
  9       shall have been residents of this state for at least five years immediately
10       preceding the date of application and unless all the members of the co-
11       partnership partnership would be eligible to receive a manufacturer's
12       license under this act;
13             (3) a trust, if any grantor, beneficiary or trustee would be ineligible
14       to receive a license under this act for any reason, except that the provi-
15       sions of subsection (a)(6)(5) shall not apply in determining whether a
16       beneficiary would be eligible for a license;
17             (4) an individual who is not a resident of this state; or
18             (5) an individual who has not been a resident of this state for at least
19       five years immediately preceding the date of application.
20             (d) No distributor's license shall be issued to:
21             (1) A corporation, if any officer, director or stockholder of the cor-
22       poration would be ineligible to receive a distributor's license for any rea-
23       son. It shall be unlawful for any stockholder of a corporation licensed as
24       a distributor to transfer any stock in the corporation to any person who
25       would be ineligible to receive a distributor's license for any reason, and
26       any such transfer shall be null and void, except that: (A) If any stockholder
27       owning stock in the corporation dies and an heir or devisee to whom stock
28       of the corporation descends by descent and distribution or by will is in-
29       eligible to receive a distributor's license, the legal representatives of the
30       deceased stockholder's estate and the ineligible heir or devisee shall have
31       14 months from the date of the death of the stockholder within which to
32       sell the stock to a person eligible to receive a distributor's license, any
33       such sale by a legal representative to be made in accordance with the
34       provisions of the probate code; or (B) if the stock in any such corporation
35       is the subject of any trust and any trustee or beneficiary of the trust who
36       is 21 years of age or older is ineligible to receive a distributor's license,
37       the trustee, within 14 months after the effective date of the trust, shall
38       sell the stock to a person eligible to receive a distributor's license and
39       hold and disburse the proceeds in accordance with the terms of the trust.
40       If any legal representatives, heirs, devisees or trustees fail, refuse or ne-
41       glect to sell any stock as required by this subsection, the stock shall revert
42       to and become the property of the corporation, and the corporation shall
43       pay to the legal representatives, heirs, devisees or trustees the book value

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  1       of the stock. During the period of 14 months prescribed by this subsec-
  2       tion, the corporation shall not be denied a distributor's license or have its
  3       distributor's license revoked if the corporation meets all of the other
  4       requirements necessary to have a distributor's license;
  5             (2) a copartnership partnership, unless all of the copartners partners
  6       are eligible to receive a distributor's license;
  7             (3) a trust, if any grantor, beneficiary or trustee would be ineligible
  8       to receive a license under this act for any reason, except that the provi-
  9       sions of subsection (a)(6)(5) shall not apply in determining whether a
10       beneficiary would be eligible for a license;
11             (4) an individual who is not a resident of this state; or
12             (5) an individual who has not been a resident of this state for at least
13       10 years immediately preceding the date of application, except that:
14             (A) A wholesaler of cereal malt beverages properly licensed on Sep-
15       tember 1, 1948, shall be eligible for a beer distributor's license; and
16             (B) a person who has been a resident of the state for at least one year
17       immediately preceding the date of application shall be eligible for a beer
18       distributor's license.
19             (e) No nonbeverage user's license shall be issued to a corporation, if
20       any officer, manager or director of the corporation or any stockholder
21       owning in the aggregate more than 25% of the stock of the corporation
22       would be ineligible to receive a nonbeverage user's license for any reason
23       other than citizenship and residence requirements.
24             (f) No microbrewery license or farm winery license shall be issued to
25       a:
26             (1) Person who is not a resident of this state;
27             (2) person who has not been a resident of this state for at least four
28       years immediately preceding the date of application;
29             (3) person who has beneficial any interest in the manufacture, prep-
30       aration or wholesaling of alcoholic beverages other than that produced by
31       such brewery or winery;
32             (4) person, copartnership partnership or association which has ben-
33       eficial any interest in any retailer licensed under this act or under K.S.A.
34       41-2702 and amendments thereto the cereal malt beverage act;
35             (5) copartnership partnership, unless all of the copartners partners
36       are qualified to obtain a license;
37             (6) corporation, unless stockholders owning in the aggregate 50% or
38       more of the stock of the corporation would be eligible to receive such
39       license and all other stockholders would be eligible to receive such license
40       except for reason of citizenship or residency; or
41             (7) a trust, if any grantor, beneficiary or trustee would be ineligible
42       to receive a license under this act for any reason, except that the provi-
43       sions of subsection (a)(6)(5) shall not apply in determining whether a

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  1       beneficiary would be eligible for a license.
  2             (g) No club, drinking establishment or caterer's license shall be issued
  3       to:
  4             (1) A person who has not been a resident of this state for a period of
  5       at least one year immediately preceding the date of application;
  6             (2) a person who has a beneficial interest in the manufacture, prep-
  7       aration or wholesaling or the retail sale of alcoholic liquors or a beneficial
  8       interest in any other club, drinking establishment or caterer licensed here-
  9       under, except that:
10             (A) A license for premises located in a hotel may be granted to a
11       person who has a beneficial interest in one or more other clubs or drinking
12       establishments licensed hereunder if such other clubs or establishments
13       are located in hotels;
14             (B) a license for a club or drinking establishment which is a restaurant
15       may be issued to a person who has a beneficial interest in other clubs or
16       drinking establishments which are restaurants;
17             (C) a caterer's license may be issued to a person who has a beneficial
18       interest in a club or drinking establishment and a license for a club or
19       drinking establishment may be issued to a person who has a beneficial
20       interest in a caterer;
21             (D) a license for a class A club may be granted to an organization of
22       which an officer, director or board member is a distributor or retailer
23       licensed under the liquor control act if such distributor or retailer sells no
24       alcoholic liquor to such club; and
25             (E) a license for a class B club or drinking establishment may be
26       granted to a person who has a beneficial interest in a microbrewery or
27       farm winery licensed pursuant to this act and a caterer's license may be
28       granted to a person who has a beneficial interest in a microbrewery li-
29       censed pursuant to this act;
30             (3) a partnership, unless all of the partners are qualified to obtain a
31       license;
32             (4) a corporation, if any officer, manager or director thereof, or any
33       stockholder owning in the aggregate more than 5% of the common or
34       preferred stock of such corporation would be ineligible to receive a license
35       hereunder for any reason other than citizenship and residence require-
36       ments;
37             (5) a corporation, if any officer, manager or director thereof, or any
38       stockholder owning in the aggregate more than 5% of the common or
39       preferred stock of such corporation, has been an officer, manager or di-
40       rector, or a stockholder owning in the aggregate more than 5% of the
41       common or preferred stock, of a corporation which:
42             (A) Has had a license revoked under the provisions of the club and
43       drinking establishment act; or

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  1             (B) has been convicted of a violation of the club and drinking estab-
  2       lishment act or the cereal malt beverage laws of this state;
  3             (6) a trust, if any grantor, beneficiary or trustee would be ineligible
  4       to receive a license under this act for any reason, except that the provisions
  5       of subsection (a)(5) shall not apply in determining whether a beneficiary
  6       would be eligible for a license; or
  7             (7) a person who is not a resident of the county in which the premises
  8       sought to be licensed are located.
  9             (g) (h) The provisions of subsections (b)(1), (b)(2),(c)(3), (c)(4),
10       (d)(3), (d)(4) (c)(4), (c)(5), (d)(4), (d)(5), (f)(1) and (f)(2) shall not apply
11       in determining eligibility for the 10th, or a subsequent, consecutive re-
12       newal of a license if the applicant has appointed a citizen of the United
13       States who is a resident of Kansas as the applicant's agent and filed with
14       the director a duly authenticated copy of a duly executed power of attor-
15       ney, authorizing the agent to accept service of process from the director
16       and the courts of this state and to exercise full authority, control and
17       responsibility for the conduct of all business and transactions within the
18       state relative to alcoholic liquor and the business licensed. The agent must
19       be satisfactory to and approved by the director, except that the director
20       shall not approve as an agent any person who:
21             (1) Has been convicted of a felony under the laws of this state, any
22       other state or the United States;
23             (2) has had a license issued under the alcoholic liquor or cereal malt
24       beverage laws of this or any other state revoked for cause, except that a
25       person may be appointed as an agent if the person's license was revoked
26       for the conviction of a misdemeanor and 10 years have lapsed since the
27       date of the revocation;
28             (3) has been convicted of being the keeper or is keeping a house of
29       prostitution or has forfeited bond to appear in court to answer charges of
30       being a keeper of a house of prostitution;
31             (4) has been convicted of being a proprietor of a gambling house,
32       pandering or any other crime opposed to decency and morality a morals
33       charge or has forfeited bond to appear in court to answer charges for any
34       of those crimes a morals charge; or
35             (5) (4) is less than 21 years of age.
36             New Sec.  30. No person holding a manufacturer's or distributor's
37       license shall be permitted to receive any retailer's, microbrewery or farm
38       winery license. No person holding a retailer's, microbrewery or farm win-
39       ery license shall be permitted to receive any manufacturer's or distribu-
40       tor's license or another retailer's, microbrewery or farm winery license.
41             Sec.  31. K.S.A. 41-313 is hereby amended to read as follows: 41-
42       313.(a) No corporation, either organized under the laws of this state, any
43       other state or a foreign country, shall be issued a manufacturer's, distrib-

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  1       utor's, microbrewery or farm winery license under this act unless the
  2       corporation has first procured a certificate of authority from the secretary
  3       of state to do business in this state as provided by law, appointed a citizen
  4       of the United States, and resident of Kansas, as its agent and filed with
  5       the director a duly authenticated copy of a duly executed power of attor-
  6       ney, authorizing the agent to accept service of process from the director
  7       and the courts of this state and to exercise full authority of the corporation
  8       and full authority, control and responsibility for the conduct of all business
  9       and transactions of the corporation within the state relative to alcoholic
10       liquor and the business licensed. The agent must be satisfactory to and
11       approved by the director with respect to the agent's character. The agent
12       shall at all times be maintained by the corporation.
13             In addition, any corporation organized under the laws of any other state
14       or foreign country, as a condition precedent to the issuance to it of any
15       license, shall file with the secretary of state of the state of Kansas, a duly
16       authorized and executed power of attorney, authorizing the secretary of
17       state to accept service of process from the director and the courts of this
18       state and to accept service of any notice or order provided for in this act,
19       and all such acts by the secretary of state shall be fully binding upon the
20       corporation.
21             (b) No corporation shall be issued a license under this act unless such
22       corporation first files with the director a copy of its articles of incorpo-
23       ration and its bylaws.
24             (c) No partnership shall be issued a license under this act unless such
25       partnership first files with the director a copy of the partnership agree-
26       ment.
27             Sec.  32. K.S.A. 41-314 is hereby amended to read as follows: 41-314.
28       (a) When a retail licensee has been convicted by any court of a violation
29       of any of the provisions of this act, such licensee may, in addition to the
30       penalty for such offense, incur a forfeiture of license and all moneys that
31       have been paid therefor.
32             (b) In accordance with the provisions of the Kansas administrative
33       procedure act, the director may revoke the license of any retailer or deny
34       issuance of a retail license in an original proceeding brought before the
35       director upon conviction of a violation of this act. Whenever the holder
36       of any license issued by the director has been convicted by any court of
37       a violation of any provision of this act or the rules and regulations adopted
38       under this act, the director may revoke or suspend the licensee's license
39       in an original proceeding brought before the director for that purpose.
40       The proceeding shall be conducted in accordance with the provisions of
41       the Kansas administrative procedure act.
42             Sec.  33. K.S.A. 41-315 is hereby amended to read as follows: 41-315.
43       Retail licenses issued hereunder (a) Licenses, other than caterers' licenses,

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  1       issued under this act shall apply only to the premises described in the
  2       application and in the license issued thereon, and only one location shall
  3       be so described in each license. After such retail license has been granted
  4       for particular premises in any city, the director, upon proper showing,
  5       may endorse upon the license permission to abandon the premises, but
  6       in order to obtain such permission the retail licensee shall file with the
  7       director a request in writing, and a statement under oath which shall show
  8       that the premises to which removal is to be made comply in all respects
  9       with the requirements of this act. No such removal shall be made by any
10       licensee until his said the licensee's license has been endorsed to that
11       effect in writing by the director.
12             (b) Every holder of a license shall cause such license to be displayed
13       in plain view on the licensed premises.
14             Sec.  34. K.S.A. 41-317 is hereby amended to read as follows: 41-317.
15       (a) Applications for all licenses under this act shall be upon forms pre-
16       scribed and furnished by the director and shall be filed with the director
17       in duplicate. Each application shall be accompanied by a state registration
18       fee of $50 for each initial application and $10 for each renewal application
19       to defray the cost of preparing and furnishing standard forms incident to
20       the administration of this act and the cost of processing the application.
21       Each application shall also be accompanied by a deposit of a certified or
22       cashier's check of a bank within this state, United States post office money
23       order or cash payment in the full amount of the license fee required to
24       be paid for the kind of license applied for, which license fee shall be
25       returned to the applicant if the application is denied. All registration fees
26       shall be paid into the state treasury by the director and shall be credited
27       to the state general fund. All license fees received by the director, in-
28       cluding fees received for licenses to manufacture beer, regardless of its
29       alcoholic content, shall be paid into the state treasury by the director and
30       shall be credited to the state general fund.
31             (b) Every applicant for a manufacturer's, distributor's, nonbeverage
32       user's, microbrewery, farm winery or retailer's license shall file with the
33       application a joint and several bond on a form prescribed by the director
34       and executed by good and sufficient corporate sureties licensed to do
35       business within the state of Kansas to the director, in the following
36       amounts:
37             (1) For a manufacturer, $25,000;
38             (2) for a spirits distributor, $15,000 or an amount equal to the highest
39       monthly liability of the distributor for taxes imposed by the Kansas liquor
40       control act for any of the 12 months immediately prior to renewal of the
41       distributor's license, whichever amount is greater;
42             (3) for a beer or wine distributor, $5,000 or an amount equal to the
43       highest monthly liability of the distributor for taxes imposed by the Kansas

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  1       liquor control act for any of the 12 months immediately prior to renewal
  2       of the distributor's license, whichever amount is greater;
  3             (4) for a retailer, $2,000;
  4             (5) for nonbeverage users, $200 for class 1, $500 for class 2, $1,000
  5       for class 3, $5,000 for class 4 and $10,000 for class 5; and
  6             (6) for a microbrewery or a farm winery, $2,000.
  7             If a distributor holds or applies for more than one distributor's license,
  8       only one bond for all such licenses shall be required, which bond shall be
  9       in an amount equal to the highest applicable bond.
10             (c) All bonds required by this section shall be conditioned on the
11       licensee's compliance with the provisions of this act and payment of all
12       taxes, fines and forfeitures which may be assessed against the licensee.
13             Sec.  35. K.S.A. 41-319 is hereby amended to read as follows: 41-319.
14       Within 30 days after an application is filed for a retailer's, microbrewery
15       or farm winery license and within 20 days after an application is filed for
16       a manufacturer's, distributor's or nonbeverage user's license under this
17       act, the director shall enter an order either refusing or granting the li-
18       cense. If the director does not enter an order within the time prescribed,
19       the license applied for shall be deemed to have been refused. The direc-
20       tor, with the written consent of the applicant for a license, may delay
21       entering an order on an application for an additional period of not to
22       exceed 30 days.
23             Sec.  36. K.S.A. 41-320 is hereby amended to read as follows: 41-320.
24       (a) All proceedings for the suspension and revocation of licenses of man-
25       ufacturers, distributors, retailers, microbreweries, farm wineries and non-
26       beverage users issued by the director shall be before the director, and
27       the proceedings shall be in accordance with the provisions of the Kansas
28       administrative procedure act. Except as provided in subsection (b), no
29       license shall be suspended or revoked except after a hearing by the di-
30       rector.
31             (b) When proceedings for the suspension or revocation of a distrib-
32       utor's license are filed and the distributor has been issued more than one
33       license for distributing places of business in this state, any order of the
34       director suspending or revoking the license at any one place of business
35       shall suspend or revoke all licenses issued to the distributor. When one
36       person is the holder of stock in two or more corporations licensed as
37       distributors under the provisions of this act, any order of the director
38       suspending or revoking the license of any such corporation shall operate
39       as a suspension or revocation of the license of all corporations licensed
40       as distributors in which the person is a stockholder.
41             Sec.  37. K.S.A. 41-321 is hereby amended to read as follows: 41-321.
42       (a) Whenever the director refuses an application for any license or sus-
43       pends or revokes any license, the director shall prepare an order so pro-

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  1       viding which shall be signed by the director or a person designated by
  2       the director, and the seal of the director shall be affixed thereto. The
  3       order shall state the reason or reasons for the refusal, suspension or rev-
  4       ocation. The order shall be served in accordance with the provisions of
  5       K.S.A. 77-531, and amendments thereto.
  6             (b) Any applicant or licensee aggrieved by any order of the director
  7       may appeal from such order to the secretary by filing a notice of appeal
  8       with the secretary. Such notice of appeal must either be mailed to the
  9       secretary by certified mail or filed with the secretary within 15 days after
10       service of the order appealed from or, if such appeal is taken because the
11       director has failed to enter the order on an application for a license, within
12       15 days after the date an application for a license is considered to have
13       been refused as provided in K.S.A. 41-319 section 35, and amendments
14       thereto. The notice of appeal shall be on a form which shall be prescribed
15       and furnished by the secretary. Whenever any such notice of appeal is
16       filed, the secretary shall notify, in writing, the director of such appeal.
17       The secretary at least 10 days before the time fixed for the hearing shall
18       notify the director and the applicant or licensee of the time when, and
19       place where, the appeal will be heard. The hearing shall be conducted by
20       the secretary, or by a person designated by the secretary, in accordance
21       with the provisions of the Kansas administrative procedure act and shall
22       be held within 30 days after the date of the filing of the notice of appeal
23       unless the person appealing consents to a later hearing.
24             (c) The secretary shall adopt, pursuant to K.S.A. 41-210 section 14,
25       and amendments thereto, such rules and regulations as necessary to gov-
26       ern the procedure in such hearings under this section. At any such hearing
27       the applicant or licensee and the director may be present in person or by
28       agent or counsel. The secretary or person conducting the hearing shall
29       have the power to adjourn any hearing, but no such adjournment shall
30       be for more than five days unless consented to by the person appealing.
31             Sec.  38. K.S.A. 41-322 is hereby amended to read as follows: 41-322.
32       (a) For the purpose of hearing or conducting any appeal authorized to be
33       heard by the secretary under this act, the secretary shall have power to:
34       (1) Examine, or cause to be examined, under oath, any licensee, the di-
35       rector, or any other person, and to examine or cause to be examined
36       books and records of any such licensee; to (2)hear testimony and take
37       proof material for its information evidence in hearing such appeal; to (3)
38       administer or cause to be administered oaths; and (4) for any such pur-
39       poses to, issue subpoenas to require the attendance of witnesses and the
40       production of books which shall be effective in any part of this state; and.
41             (b) Any district court or any judge thereof either in term time or
42       vacation, may by order duly entered, require may order the attendance
43       of witnesses and the production of relevant books and records subpoe-

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  1       naed by the secretary under this section and the district court or judge
  2       may compel obedience to the order by proceedings for contempt.
  3             Sec.  39. K.S.A. 41-323 is hereby amended to read as follows: 41-323.
  4       Any action of the secretary pursuant to K.S.A. 41-321 section 37, and
  5       amendments thereto is subject to review in accordance with the act for
  6       judicial review and civil enforcement of agency actions. At the time of
  7       the filing of the petition for review, the petitioner shall give a bond for
  8       costs conditioned on the petitioner's prosecuting the appeal without delay
  9       and paying all costs assessed against the petitioner. If review of the de-
10       cision of the district court is sought pursuant to K.S.A. 77-623, and
11       amendments thereto, the director shall not be required to give a bond on
12       such review.
13             Sec.  40. K.S.A. 41-326 is hereby amended to read as follows: 41-326.
14       A license shall be purely a personal privilege, valid for not to exceed one
15       year after issuance, unless sooner suspended or revoked, and shall not
16       constitute property, nor shall it be subject to sale, attachment, garnish-
17       ment or execution, nor shall it be alienable or transferable, voluntarily or
18       involuntarily, or subject to being encumbered or hypothecated. A license
19       shall not descend by the laws of testate or intestate devolution but shall
20       cease and expire upon the death of the licensee except that executors,
21       administrators or representatives of the estate of any deceased licensee
22       and the trustee of any insolvent or bankrupt licensee, when such estate
23       consists in part of alcoholic liquor or cereal malt beverage, may continue
24       the business of the sale, distribution or manufacture of alcoholic liquor
25       or cereal malt beverage under order of the appropriate court and may
26       exercise the privilege of the deceased, insolvent or bankrupt licensee after
27       the death of such decedent, or after such insolvency or bankruptcy, until
28       the expiration of such license but not longer than one year after the death,
29       bankruptcy or insolvency of such licensee subject to renewal of the license,
30       until the appropriate court issues its final order or decree in the matter.
31             A refund shall be made of that portion of the license fee paid for any
32       period in which the licensee shall be prevented from operating under
33       such license in accordance with the provisions of this section. The sec-
34       retary of revenue may adopt rules and regulations pursuant to K.S.A. 41-
35       210 section 14, and amendments thereto, which provide for the author-
36       ization of refunds of that portion of the license fees paid for any period
37       in which the licensee does not use such license as a result of the cancel-
38       lation of the license upon the request of the licensee for voluntary reasons.
39             Sec.  41. K.S.A. 41-328 is hereby amended to read as follows: 41-328.
40       (a) In addition to or in lieu of any other civil or criminal penalty provided
41       by law, the director, upon a finding that a licensee under the Kansas liquor
42       control or a permit holder under this act has violated any provision thereof
43       of this act, may impose on such licensee a civil fine not exceeding $1,000

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  1       for each violation.
  2             (b) No fine shall be imposed pursuant to this section except upon the
  3       written order of the director to the licensee who committed the violation.
  4       Such order shall state the violation, the fine to be imposed and the right
  5       of the licensee to appeal the order. Such order shall be subject to appeal
  6       and review in the manner provided by K.S.A. 41-321, 41-322 and 41-323
  7       sections 37, 38 and 39, and amendments thereto.
  8             (c) Any fine imposed pursuant to this section shall be paid to the state
  9       treasurer, who shall deposit the same in the state treasury and credit it
10       to the state general fund.
11             (d) This section shall be part of and supplemental to the Kansas liquor
12       control act.
13             Sec.  42. K.S.A. 41-330 is hereby amended to read as follows: 41-330.
14       (a) After notice and an opportunity for hearing in accordance with the
15       provisions of the Kansas administrative procedure act, the director may
16       refuse to issue or renew or may revoke any license provided for by the
17       Kansas liquor control act manufacturer's, distributor's, retailer's, farm
18       winery, microbrewery or nonbeverage user's license if:
19             (a) (1) The licensee or the licensee's spouse has been convicted of a
20       violation of intoxicating liquor laws of any state or the alcoholic beverage
21       control laws of the United States or has forfeited of bond to appear in
22       court to answer charges for any such violation, within the 10 years im-
23       mediately preceding the date of application for issuance or renewal of the
24       license or the date of revocation; or
25             (b) (2) the licensee or the licensee's spouse has been convicted of a
26       violation of any of the laws of any state relating to cereal malt beverages,
27       within 10 years immediately preceding the date of application for issuance
28       or renewal of the license or the date of revocation.
29             (b) After notice and an opportunity for hearing in accordance with
30       the provisions of the Kansas administrative procedure act, the director
31       may refuse to issue or renew or may suspend or revoke the license of any
32       person selling alcoholic liquor at retail, a class A or B club, drinking
33       establishment, caterer or temporary permit holder who has had a local
34       license suspended, restricted or revoked pursuant to section 125, and
35       amendments thereto.
36             Sec.  43. K.S.A. 41-331 is hereby amended to read as follows: 41-331.
37       (a) Every supplier desiring to sell alcoholic liquor or cereal malt beverage
38       to distributors in this state shall be required to obtain an annual permit
39       from the director, unless such supplier is licensed in this state as a man-
40       ufacturer or distributor. Application for such permit shall be on a form
41       prescribed by rules and regulations of the secretary of revenue and shall
42       be accompanied by an annual permit fee of $25. As a condition of the
43       issuance of such permit, the supplier shall be deemed to have appointed

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  1       the secretary of state as the resident agent and representative of the sup-
  2       plier to accept service of process from the director and the courts of this
  3       state and to accept service of any notice or order provided for in this act,
  4       and all such acts by the secretary of state shall be fully binding upon the
  5       supplier.
  6             (b) Every supplier desiring to sell alcoholic liquor or cereal malt bev-
  7       erage to distributors in this state shall be required to register each brand
  8       of such alcoholic liquor or cereal malt beverage with the director prior to
  9       making shipments to distributors in this state. Registration shall be in a
10       form prescribed by rules and regulations of the secretary and shall be
11       accompanied by an annual fee of $25 for each label proposed for sale in
12       this state.
13             (c) The director, in accordance with the Kansas administrative pro-
14       cedure act, may revoke, suspend or refuse to issue a permit to any supplier
15       found to have violated any provision of the Kansas liquor control act or
16       K.S.A. 41-2701 et seq. and amendments thereto this act or the cereal malt
17       beverage act, or any rules and regulations adopted thereunder under such
18       acts.
19             Sec.  44. K.S.A. 41-332 is hereby amended to read as follows: 41-332.
20       The director may issue to a supplier a temporary permit allowing such
21       supplier to import into this state to a distributor licensed under the Kansas
22       liquor control act or under K.S.A. 41-2713 and amendments thereto this
23       act alcoholic liquor or cereal malt beverage for which such distributor
24       does not have a franchise to sell. The permit shall specifically identify the
25       brand and type of alcoholic liquor or cereal malt beverage for which the
26       permit is issued and the quantity permitted to be imported into the state.
27       Such alcoholic liquor or cereal malt beverage shall not be resold by the
28       distributor and shall not be subject to the tax imposed by K.S.A. 41-501
29       or 79-3818, section 64, and amendments thereto.
30             Sec.  45. K.S.A. 41-333 is hereby amended to read as follows: 41-333.
31       Any natural person individual may act as a salesperson for the sale of, or
32       the taking or soliciting of orders for the sale of, alcoholic liquor or cereal
33       malt beverage in the state of Kansas only after such person has first ap-
34       plied for and received a permit therefor from the director, except that no
35       such permit shall be required of a licensed retailer or an employee of
36       such retailer operating solely on the licensed retail premises.
37             Sec.  46. K.S.A. 41-334 is hereby amended to read as follows: 41-334.
38       (a) Any natural person individual over the age of 21 may apply to the
39       director for a salesperson's permit. The application shall be in such form
40       and shall include such terms as the director may prescribe, and shall
41       include a provision that the holder will comply with the Kansas liquor
42       control this act and the cereal malt beverage laws of this state act, and
43       any rules and regulations adopted under such act or laws acts. The ap-

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  1       plication and any permit issued pursuant thereto shall set forth the name
  2       and address of the person, firm or corporation whom the applicant rep-
  3       resents and also the name, address and a description of the applicant. A
  4       salesperson shall not represent any person, firm or corporation whose
  5       name does not appear onthe permit as the salespersons' employer. No
  6       person shall act as salesperson for more than one person, firm or corpo-
  7       ration under one permit. Additional permits may be granted the same
  8       applicant for additional principals.
  9             (b) Upon approval of any application by the director, the director
10       shall issue a permit to the applicant for one year three years upon the
11       payment of an annual a fee of $10 $30, which fee shall accompany the
12       application.
13             (c) No person shall be issued a salesperson's permit if such person
14       does not meet the qualifications of subsections (a)(4) and (5) of K.S.A.
15       41-311 subsection (a)(4) of section 29,and amendments thereto, or if such
16       person has a beneficial interest in any licensed retailer of alcoholic liquor
17       or cereal malt beverage or any licensed club, drinking establishment or
18       caterer. The director may deny a permit to any person who has been
19       convicted of a felony or of a violation of the Kansas liquor control act or
20       cereal malt beverage laws of this state.
21             New Sec.  47. All salespersons shall exhibit their permits at any time
22       while engaged in soliciting, taking orders for, or promoting the sale of
23       alcoholic liquor or cereal malt beverage, upon demand of any agent or
24       employee of the director or upon request of any licensee.
25             New Sec.  48. No licensee shall purchase alcoholic liquor or cereal
26       malt beverage from, or give an order to, any person who is not the holder
27       of a permit duly issued hereunder, except that an employee of a licensed
28       distributor may solicit sales while on the licensed premises of such dis-
29       tributor without such a permit.
30             New Sec.  49. If a salesperson leaves the employ of the employer
31       specified on the salesperson's permit, the salesperson shall immediately
32       notify the director and surrender the permit to the director within five
33       days. Failure to surrender the permit within five days shall make the
34       salesperson ineligible for any other permit for a period prescribed by the
35       director. It shall also be the duty of the employer whose name is specified
36       on the salesperson's permit to notify the director within five days of the
37       termination of a salesperson's employment.
38             New Sec.  50. If the holder of a salesperson's permit changes address
39       from that noted on the application for the permit, the salesperson shall
40       notify the director of such change of address within five days. Failure to
41       so notify the director of a change of address shall make the salesperson's
42       permit subject to revocation in accordance with the Kansas administrative
43       procedure act.

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  1             Sec.  51. K.S.A. 41-339 is hereby amended to read as follows: 41-339.
  2       (a) If the holder of a salesperson's permit is convicted of a felony or
  3       violates the provisions of the Kansas liquor control act or this act, the
  4       cereal malt beverage laws of this state, act or any rules and regulations
  5       adopted thereunder pursuant to such acts, the director may suspend or
  6       revoke any and all permits issued to such salesperson. The director shall
  7       suspend or revoke a salesperson's permit if the salesperson is not qualified
  8       to receive a permit pursuant to K.S.A. 41-334 section 46, and amendments
  9       thereto.
10             (b) In addition to suspending or revoking a salesperson's permit, the
11       director may suspend or revoke the authority of the salesperson's em-
12       ployer to sell alcoholic liquor or cereal malt beverage to licensed distrib-
13       utors within the state of Kansas or, if the salesperson is an employee of
14       a licensed distributor, suspend or revoke such distributor's license.
15             (c) Any suspension or revocation of a license or permit pursuant to
16       this section shall be in accordance with the Kansas administrative pro-
17       cedure act.
18             New Sec.  52. No salesperson's permit shall be issued except to a
19       person who, in good faith, devotes a major part of the person's time to
20       selling, or taking or soliciting orders for the sale of, alcoholic liquor or
21       cereal malt beverage and whose principal occupation is that of a sales-
22       person of the person, firm or corporation on whose behalf the application
23       is filed. Nothing in this section shall prohibit the issuance of a permit to
24       a person who is regularly employed on a full-time basis by a manufacturer
25       or licensed distributor of alcoholic liquor or cereal malt beverage and
26       who, incident to the person's regular employment for such manufacturer
27       or distributor, may sell, take or solicit orders for the sale of alcoholic liquor
28       or cereal malt beverage.
29             Sec.  53. K.S.A. 1998 Supp. 41-346 is hereby amended to read as
30       follows: 41-346. In any administrative proceeding pursuant to the Kansas
31       liquor control act to suspend or revoke a license, or to impose a civil fine,
32       for a violation of K.S.A. 21-3610, 21-3610a or 41-2615 section 112, and
33       amendments thereto, it shall be a defense if evidence is presented which
34       indicates that: (a) The defendant permitted the minor to possess or con-
35       sume the alcoholic liquor or cereal malt beverage with reasonable cause
36       to believe that the minor was 21 or more years of age; and (b) to possess
37       or consume the alcoholic liquor or cereal malt beverage, the minor ex-
38       hibited to the defendant a driver's license, Kansas nondriver's identifi-
39       cation card or other official or apparently official document, containing a
40       photograph of the minor and purporting to establish that such minor was
41       21 or more years of age.
42             Sec.  54. K.S.A. 1998 Supp. 41-347 is hereby amended to read as
43       follows: 41-347. (a) The director may issue, in accordance with rules and

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  1       regulations of the secretary: (1) To one or more charitable organizations
  2       a temporary package permit authorizing the sale of alcoholic liquor at an
  3       auction; or (2) to an individual a temporary package permit authorizing
  4       the sale of one or more limited issue porcelain containers containing al-
  5       coholic liquor. The permit shall be issued in the names of the charitable
  6       organizations or individual to which it is issued.
  7             (b) Applications for temporary package permits shall be required to
  8       be filed with the director not less than 14 days before the event for which
  9       the permit is sought unless the director waives such requirement for good
10       cause. Each application for a permit authorizing an auction shall state the
11       purposes for which the proceeds of the event will be used. The application
12       shall be upon a form prescribed and furnished by the director and shall
13       be filed with the director in duplicate. Each application shall be accom-
14       panied by a permit fee of $25 for each day for which the permit is issued,
15       which fee shall be paid by a certified or cashier's check of a bank within
16       this state, United States post office money order or cash in the full amount
17       thereof. All permit fees collected by the director pursuant to this section
18       shall be remitted to the state treasurer, who shall deposit the entire
19       amount in the state treasury and credit it to the state general fund.
20             (c) Temporary package permits shall specify the premises for which
21       they are issued and shall be issued only for premises where the city,
22       county or township zoning code allows use for which the permit is issued.
23             (d) A temporary package permit shall be issued for a period of time
24       not to exceed three consecutive days, the dates and hours of which shall
25       be specified in the permit. Not more than one temporary permit may be
26       issued to any one applicant in a calendar year.
27             (e) All proceeds from an auction for which a temporary package per-
28       mit is issued shall be used only for the purposes stated in the application
29       for such permit.
30             (f) A temporary package permit shall not be transferable or assigna-
31       ble.
32             (g) The director may refuse to issue a temporary package permit to
33       any charitable organization or individual which has violated any provision
34       of the Kansas liquor control this act.
35             (h) This section shall be part of and supplemental to the Kansas liquor
36       control act.
37             Sec.  55. K.S.A. 41-401 is hereby amended to read as follows: 41-401.
38       Every licensed manufacturer of spirits or wine and every spirits or wine
39       distributor shall provide at such manufacturer's or distributor's own ex-
40       pense a warehouse to be situated on and to constitute a part of such
41       manufacturer's or distributor's distillery, winery or premises used for the
42       purpose of distributing, furnishing or selling spirits or wine for purposes
43       of resale, to be kept separate and distinct from such distillery, winery or

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  1       premises, and to be used only for the storage of spirits or wine manufac-
  2       tured or distributed by such manufacturer or distributor for purposes of
  3       resale until the tax levied thereon, as hereinafter provided, on such spirits
  4       or wine under this act has been paid. No dwelling house shall be used
  5       for such purpose. Such warehouse, when approved by the director, shall
  6       be a bonded warehouse of the state of Kansas and shall be under the
  7       control of the director. The director may assign one or more of agents to
  8       be known as a storekeeper or inspector to enforce the provisions of this
  9       act with respect to such warehouse or warehouses.
10             Sec.  56. K.S.A. 41-402 is hereby amended to read as follows: 41-402.
11       The entire stock of spirits or wine of manufacturers or distributors, except
12       in the case of a distillery or wine cellar where such spirits or wine is in
13       the process of distillation or manufacture, shall be kept in such manufac-
14       turer's or distributor's warehouse approved under K.S.A. 41-401 section
15       55, and amendments thereto. The director shall prescribe the records
16       which the storekeeper or inspector shall keep, when assigned, as regards
17       to such spirits or wine while in the process of manufacture or distillation
18       and after such spirits or wine has been delivered to bonded warehouses.
19       Every such warehouse shall be in the joint custody of the director through
20       the director's storekeeper or inspector, when assigned, and the proprietor
21       thereof, and shall be kept securely locked and at no time be unlocked or
22       open, or remain open unless in the presence of such storekeeper, in-
23       spector or other person who may be designated to act for the director,
24       as provided by rules and regulations or order of the director; and no such
25       spirits or wine shall be received or delivered in or delivered from such
26       warehouse, except on order or permit of the director or the director's
27       duly authorized storekeeper, inspector or other agent.
28             Sec.  57. K.S.A. 41-403 is hereby amended to read as follows: 41-403.
29       Alcoholic liquor, on payment of the tax thereon on such liquor, pursuant
30       to rules and regulations of the secretary, may be withdrawn, on such
31       triplicate forms as the director prescribes, from the warehouse, pursuant
32       to application to the director or to the storekeeper or inspector in charge
33       of such warehouse. One triplicate original of each entry of withdrawal
34       shall be transmitted to the director. In case of receipt of such liquor by
35       manufacturers or distributors, entry of such receipt to such warehouses
36       shall be made in triplicate, and one triplicate original of such entry of
37       receipt shall be transmitted forthwith promptly by the proprietor of the
38       warehouse to the director.
39             Sec.  58. K.S.A. 41-405 is hereby amended to read as follows: 41-405.
40       (a) The director is hereby authorized to measure, gauge or check such
41       alcoholic liquor in bond in any bonded warehouse, and. If the amount of
42       liquor on hand does not correspond with the reports of the manufacturer
43       or distributor filed with the director, the proprietor of such warehouse

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  1       shall have the proprietor's license revoked, and, in additionthereto,shall
  2       be deemed guilty of a felony, and upon conviction thereof shall be fined
  3       in any sum not exceeding $5,000 or be imprisoned in the custody of the
  4       secretary of corrections not exceeding punishable by a fine of not more
  5       than $5,000 or imprisonment for not more than 10 years.
  6             (b) Any storekeeper, inspector or other person in the employ of the
  7       director having charge of such a bonded liquor warehouse who removes
  8       or allows to be removed any cask or other package of such liquor, except
  9       on order or permit from the director, or which has not been marked or
10       consigned as provided by law, or who removes or allows to be removed
11       any part of the contents of any cask or package of liquor deposited therein,
12       shall be immediately dismissed from office or employment, and, in ad-
13       dition thereto, shall be deemed guilty of a felony, and upon conviction
14       thereof shall be fined for each offense not exceeding $1,000, and shall be
15       imprisoned in the custody of the secretary of corrections punishable by
16       a fine of not more than $1,000 for each offense and imprisonment for not
17       more than three years.
18             Sec.  59. K.S.A. 41-406 is hereby amended to read as follows: 41-406.
19       It shall be lawful for the director, or for any agent of the director, to
20       detain any package containing or supposed to contain such alcoholic liq-
21       uor when he the director or the director's agent has reason to believe that
22       the tax imposed by law upon the same alcoholic liquor has not been paid
23       in full, or that the same alcoholic liquor is being or has been removed
24       from any bonded warehouse, or has been received and transported into
25       the state of Kansas in violation of the law; and law. Every such cask or
26       package may be held by him the director or the director's agent at a safe
27       place until it shall be is determined whether the property so detained is
28       liable by law to be proceeded against for forfeiture; but such but summary
29       detention of the property shall not continue in any case longer than forty-
30       eight 48 hours without process of law.
31             Sec.  60. K.S.A. 41-407 is hereby amended to read as follows: 41-407.
32       (a) It shall be unlawful for any person to:
33             (1) Evade, or attempt to evade, the payment of tax or duty on any
34       alcoholic liquor or cereal malt beverage, in any manner whatever. Upon
35       conviction of a violation of this subsection, in addition to the penalty
36       prescribed for the violation of this act, the violator shall forfeit and pay,
37       as a part of costs in the action, double the amount of the tax or duty so
38       evaded or attempted to be evaded.
39             (2) Have in such person's possession any cask or package of alcoholic
40       liquor or cereal malt beverage, without having thereon each mark re-
41       quired therefor by law, and any such cask or package not having thereon
42       each such mark shall be forfeited to the state of Kansas.
43             (b) Nothing contained in this section shall make unlawful the pos-

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  1       session and transportation of wine imported solely for use by a church or
  2       religious organization for sacramental purposes and uses.
  3             (c) Violation of any provision of this section is a misdemeanor pun-
  4       ishable by a fine not exceeding $500 or imprisonment not exceeding six
  5       months, or both, and In proper cases the trial court may order and direct
  6       the confiscation of the liquor any alcoholic liquor or cereal malt beverage
  7       involved in the violation a violation of this section as part of the judgment
  8       of conviction.
  9             Sec.  61. K.S.A. 41-408 is hereby amended to read as follows: 41-408.
10       (a) Any common carrier of merchandise owning or operating any railroad,
11       express company, bus, truck or other transportation lines or routes for
12       the transportation of merchandise in the state of Kansas, upon applica-
13       tion, may be designated as a carrier of such alcoholic liquor, for the final
14       release of which liquor, from a bonded warehouse in the state of Kansas,
15       a permit has not been issued. The consignee shall be a manufacturer or
16       distributor maintaining a bonded warehouse for such liquor within the
17       state of Kansas. Any such liquor arriving at a point of entry in the state
18       of Kansas may be entered, in accordance with any rules and regulations
19       which may be adopted pursuant to K.S.A. 41-210 section 14, and amend-
20       ments thereto, for transportation to any bonded warehouse in the state
21       of Kansas.
22             (b) No person or common carrier shall haul or transport alcoholic
23       liquor in or into this state, for sale, or for storage and sale in this state,
24       upon which the required labeling or gauging fee, tax, duty or license has
25       not been paid, except for delivery to distributors, distillers, manufacturers,
26       importers, blenders, rectifiers, wholesalers or jobbers maintaining a
27       bonded warehouse within this state.
28             (c) It shall be unlawful for any officer, agent or employee of any rail-
29       road company, express company or other common carrier to:
30             (1) Deliver any alcoholic liquor to any person other than to the person
31       to whom such shipment is consigned, or to the consignee's authorized
32       agent, and without a written receipt in each instance by such consignee
33       in person therefor, or by the consignee's authorized agent; or
34             (2) deliver any such shipments to any person whomsoever where such
35       shipments have been consigned to a fictitious person or persons under a
36       fictitious name.
37             (d) It shall be unlawful for any person to make a false statement, for
38       the purpose of obtaining alcoholic liquor, to any railroad, express or trans-
39       portation company or any person engaged in the business of transporting
40       goods, wares or merchandise for the purpose of obtaining the shipment,
41       transportation or delivery of such liquor.
42             New Sec.  62. (a) Before commencing or continuing business, every
43       manufacturer of beer or cereal malt beverage, every beer distributor and

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  1       every importer of beer shall file with the director a notice in writing,
  2       which states: (1) The name of the person, company, corporation or firm,
  3       (2) the name of the members of any such company or firm, (3) the places
  4       of residence of such persons, and (4) a legal description of the premises
  5       on which the office of the manufacturer or distributor is situated and of
  6       the title thereto and the name of the owner thereof.
  7             (b) The director may require under rules and regulations adopted as
  8       provided in this act that beer and cereal malt beverage be kept, received
  9       and withdrawn from bonded warehouses, as other alcoholic liquors are
10       kept, received and withdrawn as provided under the Kansas liquor control
11       act, whenever the director deems that the public interest demands.
12             (c) No beer or cereal malt beverage manufactured or distributed
13       within this state shall be sold under the provisions of this act until the
14       manufacturers or distributors of such beer or cereal malt beverage furnish
15       satisfactory evidence to the director that such beer or cereal malt bev-
16       erage is brewed from alcoholic fermentation of an infusion of pure hops
17       or pure extract of hops, and pure barley malt or other wholesome grains
18       or cereals, and wholesome yeast, and pure water, and are free from all
19       harmful substances, preservatives and adulterants.
20             Sec.  63. K.S.A. 41-410 is hereby amended to read as follows: 41-410.
21       (a) No distributor shall sell any alcoholic liquor or cereal malt beverage
22       in this state unless such distributor has filed with the director a written
23       notice stating each geographic territory, agreed upon in writing between
24       the distributor and a supplier of the distributor, within which the distrib-
25       utor sells one or more brands of such supplier to retailers licensed under
26       the Kansas liquor control act or under K.S.A. 41-2702 and amendments
27       thereto or to, clubs or, drinking establishments or caterers licensed under
28       the club and drinking establishment this act or to retailers licensed under
29       the cereal malt beverage act. Such notice shall be accompanied by a map
30       outlining each geographic territory stated in the notice. No manufacturer,
31       importer or other supplier shall grant a franchise for the distribution of
32       a brand to more than one distributor for all or part of any designated
33       territory.
34             (b) Each supplier of alcoholic liquor or cereal malt beverage doing
35       business within this state shall file with the director a written notice de-
36       scribing each geographic territory, agreed upon in writing between the
37       supplier and a distributor, within which the distributor sells one or more
38       brands of the supplier to retailers licensed under the Kansas liquor control
39       act or under K.S.A. 41-2702 and amendments thereto or to, clubs or,
40       drinking establishments or caterers licensed under the club and drinking
41       establishment this act or to retailers licensed under the cereal malt bev-
42       erage act.
43             (c) No supplier or distributor shall terminate or modify a franchise

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  1       for the distribution of a brand of alcoholic liquor or cereal malt beverage
  2       or alter the geographic territory designated in a franchise agreement un-
  3       less such supplier or distributor files written notice thereof with the di-
  4       rector not less than 30 days prior to the termination, modification or
  5       alteration. In the case of an alteration in a franchise territory, such notice
  6       shall be accompanied by a map outlining the altered territory. Upon re-
  7       ceipt of such notice, the director shall notify immediately, by certified
  8       mail, all affected parties of the impending termination, modification or
  9       alteration.
10             (d) Any notice filed by a supplier pursuant to subsection (c) shall be
11       accompanied by an affidavit stating that the termination, modification or
12       alteration is not caused by the failure of the distributor to violate any
13       provision of the Kansas liquor control act or any rules and regulations
14       adopted pursuant thereto.
15             (e) Any supplier or distributor aggrieved by a termination, modifi-
16       cation or alteration made under subsection (c) may file an appropriate
17       action in any district court of this state having venue, alleging that the
18       termination, modification or alteration violates the franchise agreement
19       between the supplier and distributor involved.
20             (f) No franchise agreement for the distribution of a brand of alcoholic
21       liquor or cereal malt beverage shall be terminated or modified, nor shall
22       the territory designated in such an agreement be altered, except for rea-
23       sonable cause.
24             (g) This section shall be part of and supplemental to the Kansas liquor
25       control act.
26             Sec.  64. K.S.A. 41-501 is hereby amended to read as follows: 41-501.
27       (a) As used in this section and K.S.A. 41-501a section 65, and amendments
28       thereto:
29             (1) "Gallon" means wine gallon.
30             (2) "Federal area" means any lands or premises which are located
31       within the exterior boundaries of this state and which are held or acquired
32       by or for the use of the United States or any department, establishment
33       or agency of the United States.
34             (3) "Malt product" means malt syrup, malt extract, liquid malt or
35       wort.
36             (b)  (1) For the purpose of raising revenue a tax is imposed upon the
37       manufacturing, using, selling, storing or purchasing alcoholic liquor, ce-
38       real malt beverage or malt products in this state or a federal area at a rate
39       of $.18 per gallon on beer and cereal malt beverage; $.20 per gallon on
40       all wort or liquid malt; $.10 per pound on all malt syrup or malt extract;
41       $.30 per gallon on wine containing 14% or less alcohol by volume; $.75
42       per gallon on wine containing more than 14% alcohol by volume; and
43       $2.50 per gallon on alcohol and spirits.

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  1             (2) The tax imposed by this section shall be paid only once and shall
  2       be paid by the person in this state or federal area who first manufactures,
  3       uses, sells, stores, purchases or receives the alcoholic liquor or cereal malt
  4       beverage. The tax shall be collected and paid to the director as provided
  5       in this act. If the alcoholic liquor or cereal malt beverage is manufactured
  6       and sold in this state or a federal area, the tax shall be paid by the man-
  7       ufacturer, microbrewery or farm winery producing it. If the alcoholic
  8       liquor or cereal malt beverage is imported into this state by a distributor
  9       for the purpose of sale at wholesale in this state or a federal area, the tax
10       shall be paid by the distributor, and in no event shall such tax be paid by
11       the manufacturer unless the alcoholic liquor or cereal malt beverage is
12       manufactured in this state. If not to exceed one gallon, or metric equiv-
13       alent, per person of alcoholic liquor has been purchased by a private
14       citizen outside the borders of the United States and is brought into this
15       state by the private citizen in such person's personal possession for such
16       person's own personal use and not for sale or resale, such import is lawful
17       and no tax payment shall be due thereon.
18             (c) Manufacturers, microbreweries, farm wineries or distributors at
19       wholesale of alcoholic liquor or cereal malt beverage shall be exempt from
20       the payment of the gallonage tax imposed on alcoholic liquor and cereal
21       malt beverage, upon satisfactory proof, including bills of lading furnished
22       to the director by affidavit or otherwise as the director requires, that the
23       liquor or cereal malt beverage was manufactured in this state but was
24       shipped out of the state for sale and consumption outside the state.
25             (d) Wines manufactured or imported solely and exclusively for sac-
26       ramental purposes and uses shall not be subject to the tax provided for
27       by this section.
28             (e) The tax provided for by this section is not imposed upon:
29             (1) Any alcohol or wine, whether manufactured in or imported into
30       this state, when sold to a nonbeverage user licensed by the state, for use
31       in the manufacture of any of the following when they are unfit for bev-
32       erage purposes: Patent and proprietary medicines and medicinal, anti-
33       septic and toilet preparations; flavoring extracts and syrups and food prod-
34       ucts; scientific, industrial and chemical products; or scientific, chemical,
35       experimental or mechanical purposes; or
36             (2) the privilege of engaging in any business of interstate commerce
37       or otherwise, which business may not be made the subject of taxation by
38       this state under the constitution and statutes of the United States.
39             (f) The tax imposed by this section shall be in addition to all other
40       taxes imposed by the state of Kansas or by any municipal corporation or
41       political subdivision thereof.
42             (g) Retail sales of alcoholic liquor, sales of beer to consumers by mi-
43       crobreweries and sales of wine to consumers by farm wineries shall not

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  1       be subject to the tax imposed by the Kansas retailers' sales tax act but
  2       shall be subject to the enforcement tax provided for in this act K.S.A. 79-
  3       4101 et seq., and amendments thereto.
  4             (h) Notwithstanding any ordinance to the contrary, no city shall im-
  5       pose an occupation or privilege tax on the business of any person, firm
  6       or corporation licensed as a manufacturer, distributor, microbrewery,
  7       farm winery, retailer or nonbeverage user under this act and doing busi-
  8       ness within the boundaries of the city except as specifically authorized by
  9       K.S.A. 41-310 section 28 or 125, and amendments thereto.
10             (i) The director shall collect the taxes imposed by this section and
11       shall account for and turn over to the state treasurer at least once each
12       week all moneys collected from the tax. The state treasurer shall credit
13       1/10 of the moneys collected from taxes imposed upon alcohol and spirits
14       under subsection (b)(1) to the community alcoholism and intoxication
15       programs fund created by K.S.A. 41-1126 section 107, and amendments
16       thereto, and shall credit the balance of the moneys collected to the state
17       general fund.
18             (j) If any alcoholic liquor manufactured in or imported into this state
19       is sold to a licensed manufacturer or distributor of this state to be used
20       solely as an ingredient in the manufacture of any beverage for human
21       consumption, the tax imposed upon the manufacturer or distributor shall
22       be reduced by the amount of the taxes which have been paid under this
23       section as to the alcoholic liquor so used.
24             (k) The tax provided for by this section is not imposed upon alcohol
25       or wine used by any school or college for scientific, chemical, experimen-
26       tal or mechanical purposes or by hospitals, sanitoria or other institutions
27       caring for the sick. Any school, college, hospital, sanatorium or other
28       institution caring for the sick may import alcohol or wine for scientific,
29       chemical, experimental, mechanical or medicinal purposes by making ap-
30       plication to the director for a permit to import it and receiving such a
31       permit. Application for the permit shall be on a form prescribed and
32       furnished by the director, and a separate permit shall be required for
33       each purchase of alcohol or wine. A fee of $2 shall accompany each ap-
34       plication. All permits shall be issued in triplicate to the applicant and shall
35       be under the seal of the office of the director. Two copies of the permit
36       shall be forwarded by the applicant to the microbrewery, farm winery,
37       manufacturer or distributor from which the alcohol or wine is purchased,
38       and the microbrewery, farm winery, manufacturer or distributor shall
39       return to the office of the director one copy of the permit with its shipping
40       affidavit and invoice. Within 10 days after receipt of any alcohol or wine,
41       the school, college, hospital or sanatorium ordering it shall file a report
42       in the office of the director upon forms furnished by the director, showing
43       the amount of alcohol or wine received, the place where it is to be stored,

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  1       from whom it was received, the purpose for which it is to be used and
  2       such other information as required by the director. Any school, college,
  3       hospital, sanatorium or institution caring for the sick, which complies with
  4       the provisions of this subsection, shall not be required to have any other
  5       license to purchase alcohol or wine from a microbrewery, farm winery,
  6       manufacturer or distributor.
  7             Sec.  65. K.S.A. 41-501a is hereby amended to read as follows: 41-
  8       501a. If any alcoholic liquor which is taxable under the provisions of
  9       K.S.A. 41-501 section 64, and amendments thereto, is transported in in-
10       terstate commerce into this state or a federal area for delivery to a con-
11       signee or person located, residing or stationed on or at a federal area,
12       such tax shall be paid by the consignee or person. For the purpose of
13       collection and payment of such tax, any and all common, contract or
14       private carriers transporting or delivering any such alcoholic liquor con-
15       signed to consignees or persons located, residing or stationed on or at any
16       federal area shall not deliver such alcoholic liquor unless and until the
17       consignee or person shall either (a) present to the carrier written evi-
18       dence, signed by the director, that the tax imposed by K.S.A. 41-501
19       section 64, and amendments thereto,on such alcoholic liquor has been
20       paid, or (b) shall pay such tax to the carrier. All such carriers are author-
21       ized to collect from such consignee or person the tax imposed by K.S.A.
22       41-501 section 64,and amendments thereto, at the time of delivery, and
23       to account for and pay the same to the director.
24             The secretary of revenue shall adopt, pursuant to K.S.A. 41-210 section
25       14, and amendments thereto, such rules and regulations as necessary to
26       carry out the intent and purposes of this section. Such rules and regula-
27       tions may include, but shall not be limited to, provisions for the inspection
28       and sealing of cargoes of alcoholic liquor consigned, being transported or
29       delivered to consignees or persons located, residing or stationed on or at
30       federal areas.
31             Sec.  66. K.S.A. 41-502 is hereby amended to read as follows: 41-502.
32       (a) The secretary of revenue shall prescribe, by rules and regulations
33       adopted pursuant to K.S.A. 41-210 section 14, and amendments
34       thereto,and designed to protect the revenue of this state, a method of
35       reporting, paying and collecting the tax imposed by K.S.A. 41-501 section
36       64, and amendments thereto, other than the affixture to original packages
37       of alcoholic liquor of stamps or other visible evidence of the payment of
38       such tax. Such tax shall be paid on or before the 15th day of the calendar
39       month next succeeding the month in which the distributor acquires pos-
40       session of alcoholic liquors made taxable by the provisions of K.S.A. 41-
41       501 section 64, and amendments thereto. The reporting and payment
42       thereof within the time prescribed by this section and in the manner
43       prescribed by the rules and regulations shall constitute a compliance with

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  1       the provisions of K.S.A. 41-501 section 64, and amendments thereto.
  2             (b) Notwithstanding the provisions of section 64, and amendments
  3       thereto, any distributor may claim and receive from the director a credit
  4       for taxes imposed by section 64, and amendments thereto, on spirits sold
  5       to a federal military installation in a federal area.
  6             Sec.  67. K.S.A. 41-507 is hereby amended to read as follows: 41-507.
  7       There is hereby established in the state treasury a revolving fund, desig-
  8       nated the alcoholic liquor tax refund fund shall be set apart and main-
  9       tained by the director, which shall be set apart from the license fees and
10       excise tax collected under the provisions of this act and held by the state
11       treasurer. Moneys in the fund shall be expended only for the refund of
12       license fees, and the refund of gallonage taxes. Such fund shall be in such
13       amount as the director determines necessary for the purpose of making
14       such refunds.
15             Sec.  68. K.S.A. 41-508 is hereby amended to read as follows: 41-508.
16       It shall be unlawful for the holder of any retailer's license, temporary
17       package permit, club license, drinking establishment license, caterer's li-
18       cense or temporary liquor-by-the-drink license issued under this act or
19       any retailer's license issued under the cereal malt beverage act to receive
20       or possess any alcoholic liquor or cereal malt beverage upon which the
21       gallonage tax levied by this act imposed pursuant to section 64, and
22       amendments thereto, has not been paid. Any such licensee who shall vi-
23       olate the provisions of this section shall be guilty of a misdemeanor and
24       upon conviction fined not more than $500, to which may be added not
25       more than 12 months' imprisonment.
26             Sec.  69. K.S.A. 41-601 is hereby amended to read as follows: 41-601.
27       Every manufacturer, distributor, microbrewery which sells any beer to a
28       beer distributor at wholesale and farm winery which sells any wine to a
29       distributor at wholesale shall between the 1st and 15th day of each cal-
30       endar month, make return under oath to the director of all alcoholic
31       liquor or cereal malt beverage manufactured and sold by the manufac-
32       turer, distributor, microbrewery or farm winery in the course of business
33       during the preceding calendar month. In the case of a distributor, the
34       return shall also show: (a) The total amount of liquor alcoholic liquor or
35       cereal malt beverage purchased by the distributor during the preceding
36       calendar month, the names of the distillers suppliers, microbreweries,
37       farm wineries or distributors from whom purchased, the quantity of each
38       brand and the price paid therefor; and (b) the names and locations of the
39       retailers, clubs, drinking establishments, caterers or cereal malt beverage
40       retailers to whom alcoholic liquor or cereal malt beverage was sold by the
41       distributor during the preceding calendar month, the quantity of each
42       brand and the price charged therefor. The return shall be made upon
43       forms prescribed and furnished by the director and shall contain such

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  1       other information as the director reasonably requires.
  2             Sec.  70. K.S.A. 41-602 is hereby amended to read as follows: 41-602.
  3       It is the duty of each manufacturer, distributor, microbrewery which sells
  4       any beer to a beer distributor and farm winery which sells any wine to a
  5       distributor to keep complete and accurate records of all sales of liquor,
  6       wine or beer and complete and accurate records of all alcoholic liquors
  7       produced, manufactured, compounded or imported. The director, in the
  8       director's discretion, may prescribe reasonable and uniform methods for
  9       keeping records by manufacturers, distributors, microbreweries and farm
10       wineries as contemplated by K.S.A. 41-401 through 41-409 sections 55
11       through 62, and amendments thereto.
12             Sec.  71. K.S.A. 41-701 is hereby amended to read as follows: 41-701.
13       (a) Except as provided in subsection (d), no spirits distributor shall sell
14       or attempt to sell any spirits within this state except to:
15             (1) A licensed manufacturer, licensed nonbeverage user or licensed
16       spirits distributor; or
17             (2) a licensed retailer, as authorized by K.S.A. 41-306 section 21, and
18       amendments thereto.
19             (b) A Except as provided in subsection (d), no wine distributor shall
20       sell or attempt to sell any wine within this state except to:
21             (1) A licensed manufacturer, licensed nonbeverage user or licensed
22       wine distributor;
23             (2) a licensed caterer; or
24             (3) a retailer, club or drinking establishment, licensed in this state, as
25       authorized by K.S.A. 41-306a section 22, and amendments thereto.
26             (c) Except as provided by subsection (d), no beer distributor shall sell
27       or attempt to sell any beer or cereal malt beverage within this state except
28       to:
29             (1) A licensed manufacturer, licensed nonbeverage user or licensed
30       beer distributor;
31             (2) a licensed caterer; or
32             (3) a retailer licensed under the Kansas liquor control this act or un-
33       der K.S.A. 41-2702 and amendments thereto the cereal malt beverage act
34       or a club or drinking establishment, licensed in this state, as authorized
35       by 41-307 section 23, and amendments thereto.
36             (d)  (1) If any spirits distributor refuses to sell spirits which such dis-
37       tributor is authorized to sell or refuses to provide any service in connec-
38       tion therewith to any licensed retailer as authorized by K.S.A. 41-306
39       section 21, and amendments thereto, it shall be lawful for any other li-
40       censed spirits distributor to sell such spirits to such retailer.
41             (2) If any wine distributor refuses to sell wine which such distributor
42       is authorized to sell or refuses to furnish service in connection therewith
43       to any licensed retailer, as authorized by K.S.A. 41-306a section 22, and

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  1       amendments thereto, it shall be lawful for any other licensed wine dis-
  2       tributor to sell such wine to such retailer.
  3             (3) If any beer distributor refuses to sell beer or cereal malt beverage
  4       which such distributor is authorized to sell or provide service in connec-
  5       tion therewith to any retailer licensed under this act or under K.S.A. 41-
  6       2702 and amendments thereto the cereal malt beverage act, as authorized
  7       by K.S.A. 41-307 section 23, and amendments thereto, it shall be lawful
  8       for any other licensed beer distributor to sell such beer or cereal malt
  9       beverage to such retailer.
10             (e) No manufacturer of alcoholic liquor or cereal malt beverage shall
11       sell or attempt to sell any alcoholic liquor or cereal malt beverage within
12       this state except to a licensed manufacturer, licensed distributor or li-
13       censed nonbeverage user.
14             (f) No supplier, wholesaler, distributor, manufacturer or importer
15       shall by oral or written contract or agreement, expressly or impliedly fix,
16       maintain, coerce or control the resale price of alcoholic liquor, beer or
17       cereal malt beverage to be resold by such wholesaler, distributor, man-
18       ufacturer or importer.
19             (g) Any supplier, wholesaler, distributor or manufacturer violating the
20       provisions of this section shall be guilty of a misdemeanor and upon con-
21       viction thereof shall be punished by a fine of not less than $500 and not
22       more than $1,000, to which may be added not to exceed six months'
23       imprisonment. In addition, Any supplier, wholesaler, distributor, manu-
24       facturer or importer violating the provisions of this section relating to
25       fixing, maintaining or controlling the resale price of alcoholic liquor, beer
26       or cereal malt beverage shall be liable in a civil action to treble the amount
27       of any damages awarded plus reasonable attorney fees for the damaged
28       party.
29             Sec.  72. K.S.A. 41-702 is hereby amended to read as follows: 41-702.
30       (a) Except to the extent permitted pursuant to K.S.A. 41-703 section 73,
31       and amendments thereto, no licensed retailer, club, drinking establish-
32       ment or caterer, or any officer, associate, member, representative or agent
33       thereof, shall accept, receive or borrow money or anything else of value,
34       or accept or receive credit, directly or indirectly, from: (1) Any manufac-
35       turer or distributor; (2) any person connected with, in any way repre-
36       senting or a member of the family of a manufacturer or distributor; (3)
37       any stockholders in a manufacturer or distributor; or (4) any officer, man-
38       ager, agent or representative of a manufacturer or distributor.
39             (b) Except to the extent permitted pursuant to K.S.A. 41-703 section
40       73, and amendments thereto, no manufacturer or distributor shall give
41       or lend money or anything of value or otherwise loan or extend credit,
42       directly or indirectly, to any retailer licensed under this act or under
43       K.S.A. 41-2702 and amendments thereto, the cereal malt beverage act or

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  1       to any licensed club, drinking establishment or caterer, or to the manager,
  2       representative, agent, officer or director thereof.
  3             (c) If any licensed retailer, distributor, manufacturer, club, drinking
  4       establishment or caterer violates any provision of this section, the license
  5       of such retailer, distributor, manufacturer, club, drinking establishment
  6       or caterer shall be suspended or revoked by the director in the manner
  7       provided by law for revocation or suspension for other violations of this
  8       act.
  9             Sec.  73. K.S.A. 41-703 is hereby amended to read as follows: 41-703.
10       (a) Except as provided by subsection (d), no manufacturer or distributor
11       shall directly or indirectly: (1) Sell, supply, furnish, give, pay for, loan or
12       lease any furnishing, fixture or equipment on the premises of a place of
13       business of a licensee under the club and drinking establishment act or a
14       retailer, club or drinking establishment licensed under the Kansas liquor
15       control act or under K.S.A. 41-2702 and amendments thereto this act or
16       a retailer licensed under the cereal malt beverage act; (2) pay for any such
17       licensee's or retailer's license, or advance, furnish, lend or give money for
18       payment of such license; (3) purchase or become the owner of any note,
19       mortgage or other evidence of indebtedness of any such licensee or re-
20       tailer or any form of security therefor; (4) be interested in the ownership,
21       conduct or operation of the business of any such licensee or retailer; or
22       (5) be interested, directly or indirectly, or as owner, part owner, lessee
23       or lessor thereof, in the licensed premises of any such licensee or retailer.
24             (b) Except as provided by subsection (d), no manufacturer or distrib-
25       utor shall, directly or indirectly, or through a subsidiary or affiliate or by
26       any officer, director or firm of such manufacturer or distributor, furnish,
27       give, lend or rent any interior decorations or any signs, for inside or out-
28       side use, for use in or about or in connection with the licensed premises
29       of a licensee under the club and drinking establishment act, or a retailer,
30       club or drinking establishment licensed under the Kansas liquor control
31       act or under K.S.A. 41-2702 and amendments thereto this act or a retailer
32       licensed under the cereal malt beverage act where products of the man-
33       ufacturer or distributor are sold.
34             (c) No manufacturer or distributor shall directly or indirectly pay for
35       or advance, furnish or lend money for the payment of any license of
36       another under the club and drinking establishment act, the Kansas liquor
37       control act or K.S.A. 41-2702 and amendments thereto this act or the
38       cereal malt beverage act.
39             (d)  (1) A manufacturer or distributor may furnish things of value to
40       a licensee under the club and drinking establishment act or to a retailer,
41       club or drinking establishment licensed under the Kansas liquor control
42       act or under K.S.A. 41-2702 and amendments thereto this act or a retailer
43       licensed under the cereal malt beverage act to the extent permitted by

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  1       rules and regulations adopted by the secretary pursuant to subsection (e).
  2             (2) Notwithstanding any other provision of law to the contrary, an
  3       owner, officer, stockholder or director of a distributor may have an in-
  4       terest in the licensed premises of a club, a drinking establishment or a
  5       retailer, club or drinking establishment licensed under the Kansas liquor
  6       control act or under K.S.A. 41-2702 and amendments thereto this act or
  7       a retailer licensed under the cereal malt beverage act, if such premises
  8       are located outside the geographic territory of the distributor's franchise.
  9             (e) The secretary shall adopt rules and regulations permitting man-
10       ufacturers and distributors to furnish equipment, signs, supplies or similar
11       other things of value to licensees under the club and drinking establish-
12       ment act or to a retailer licensed under the Kansas liquor control act or
13       under K.S.A. 41-2702 and amendments thereto this act or the cereal malt
14       beverage act. Such rules and regulations shall limit the furnishing of such
15       things of value so that they are not conditioned on or an inducement to
16       the purchase of any alcoholic liquor or cereal malt beverage. In adopting
17       such rules and regulations, the secretary shall consider and, to the extent
18       the secretary determines suitable, base such rules and regulations on the
19       standards of the bureau of alcohol, tobacco and firearms of the United
20       States treasury.
21             Sec.  74. K.S.A. 41-704 is hereby amended to read as follows: 41-704.
22       No manufacturer of alcoholic liquors liquor or ceral malt beverage hold-
23       ing a manufacturer's license under this act and no manufacturer of al-
24       coholic liquors liquor or cereal malt beverage outside of this state man-
25       ufacturing alcoholic liquors liquor or cereal malt beverage for distribution
26       and sale within this state shall, directly or indirectly, as owner or part
27       owner, or through a subsidiary or affiliate, or by any officer, director or
28       employee thereof, or by stock ownership, interlocking directors, trustee-
29       ship, loan, mortgage or lien on any personal or real property, as guarantor,
30       endorser or surety, be interested in the ownership, conduct, operation or
31       management of any alcoholic liquor distributor holding an alcoholic liquor
32       a distributor's license under this act; nor shall any. No manufacturer of
33       alcoholic liquors liquor or cereal malt beverage holding a manufacturer's
34       license under this act nor any manufacturer of alcoholic liquors liquor or
35       cereal malt beverage outside of this state manufacturing alcoholic liquors
36       liquor or ceral malt beverage for distribution and sale within this state,
37       shall be interested directly or indirectly, as lessor or lessee, as owner or
38       part owner, or through a subsidiary or affiliate, or by any officer, director
39       or employee thereof, or by stock ownership, interlocking directors or
40       trusteeship in the premises upon which the place of business of an al-
41       coholic liquor a distributor holding an alcoholic liquor a distributor's li-
42       cense under this act is located, established, conducted or operated in
43       whole or in part.

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  1             Sec.  75. K.S.A. 41-705 is hereby amended to read as follows: 41-705.
  2       Any licensee who shall permit or assent, or be a party in any way to any
  3       violation or infringement of the provisions of K.S.A. 41-703 or 41-704
  4       section 73 or 74, and amendments thereto, shall be deemed guilty of a
  5       violation of this act, and any money loaned contrary to a provision of this
  6       act shall not be recovered back, or any note, mortgage or other evidence
  7       of indebtedness, or security, or any lease or contract obtained or made
  8       contrary to this act shall be unenforceable and void.
  9             Sec.  76. K.S.A. 41-706 is hereby amended to read as follows: 41-706.
10       No manufacturer, distributor or wholesaler shall sell or deliver any pack-
11       age containing alcoholic liquor manufactured or distributed by such man-
12       ufacturer, distributor or wholesaler, unless the package has affixed thereto
13       all canceled revenue stamps which may be provided by federal law and
14       shall also carry thereon a clear and legible label containing the name and
15       kind of alcoholic liquor contained therein, and the alcoholic content
16       thereof, except in the case of beer, and such other information as may be
17       required by federal laws and rules and regulations and by rules and reg-
18       ulations adopted by the secretary of revenue. No package shall be deliv-
19       ered by any manufacturer or distributor or importing distributor unless
20       the same shall be securely sealed so that the contents thereof cannot be
21       removed without breaking the seal so placed thereon by such manufac-
22       turer, and no other licensee shall sell, have in the possession of the li-
23       censee or use any package or container which does not comply with this
24       sectionor K.S.A. 41-707 and amendments thereto, or does not bear evi-
25       dence that such package, when delivered to the licensee, complied with
26       this section.
27             Sec.  77. K.S.A. 1998 Supp. 41-708 is hereby amended to read as
28       follows: 41-708. No retailer licensed under this act shall purchase or re-
29       ceive alcoholic liquor from any source except from a distributor licensed
30       under this act and having a place of business in this state, except that a
31       licensed retailer may purchase confiscated:
32             (a) Purchase alcoholic liquor at a sheriff's sale. Any retail licensee who
33       violates this section is guilty of a misdemeanor, and upon conviction
34       thereof shall be punished by a fine of not less than $200, nor more than
35       $1,000, to which may be added imprisonment for not more than six
36       months, and the license of such licensee may be revoked as provided by
37       law;
38             (b) purchase or receive beer from a licensed beer manufacturer hav-
39       ing a place of business in this state; and
40             (c) purchase alcoholic liquor from another licensed retailer who is
41       quitting business, subject to approval by the director.
42             New Sec.  78. No manufacturer or distributor shall sell or deliver any
43       package containing alcoholic liquor manufactured or distributed by such

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  1       manufacturer or distributor for resale, unless the person to whom such
  2       package is sold or delivered is authorized to receive such package in ac-
  3       cordance with the provisions of this act. The director shall revoke the
  4       license of any manufacturer or distributor who violates the provisions of
  5       this section.
  6             Sec.  79. K.S.A. 41-710 is hereby amended to read as follows: 41-710.
  7       (a) No retailer's license shall be issued for premises which are located in
  8       areas not zoned for general commercial or business purposes, if the city
  9       or township in which the premises are located is zoned or are not ap-
10       proved by the director, if the premises sought to be licensed are located
11       outside an incorporated city in a township which is not zoned. Any license
12       issued pursuant to this act shall be for one particular premises which shall
13       be stated in the application and in the license. No license shall be issued
14       for a particular premises unless the zoning code, if applicable, allows the
15       operation of the business to be licensed at that location.
16             (b) No microbrewery license or farm winery license shall be issued
17       for premises which are zoned for any purpose except agricultural, com-
18       mercial or business purposes.
19             (c) No retailer's, microbrewery or farm winery license shall be issued
20       for premises which:
21             (1) Are located within 200 feet of any public or parochial school or
22       college or church, except that if any such school, college or church is
23       established within 200 feet of any licensed premises after the premises
24       have been licensed, the premises shall be an eligible location for retail
25       licensing; and
26             (2) do not conform to the building ordinances or laws of the state or
27       city or, in the absence of such ordinances or laws, are not structurally in
28       good condition or are in a dilapidated condition.
29             New Sec.  80. No alcoholic liquor shall be sold at retail upon any
30       premises which have an inside entrance or opening which connects with
31       any other place of business.
32             Sec.  81. K.S.A. 1998 Supp. 41-712 is hereby amended to read as
33       follows: 41-712. No person shall sell at retail any alcoholic liquor: (1) (a)
34       On Sunday; (2) (b) on Memorial Day, Independence Day, Labor Day,
35       Thanksgiving Day or Christmas Day; or (3) (c) before 9 a.m. or after 11
36       p.m. on any day when the sale is permitted, except that the governing
37       body of any city by ordinance may require closing prior to 11 p.m., but
38       such ordinance shall not require closing prior to 8 p.m.
39             Sec.  82. K.S.A. 41-713 is hereby amended to read as follows: 41-713.
40       It shall be unlawful for a retailer of alcoholic liquor: (1) (a) To permit any
41       person to mix drinks in or on the licensed premises; (2) (b) to employ any
42       person under the age of twenty-one (21) 21 years in connection with the
43       operation of such retail establishment; or (3) (c) to employ any person in

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  1       connection with the operation of such retail establishment who has been
  2       adjudged guilty of a felony.
  3             Sec.  83. K.S.A. 1998 Supp. 41-717 is hereby amended to read as
  4       follows: 41-717. (a) (1) Except as provided by subsection (a)(2), no person
  5       shall sell or furnish at retail and no microbrewery or farm winery shall
  6       sell to any consumer any alcoholic liquor on credit; on a passbook; on
  7       order on a store; in exchange for any goods, wares or merchandise; or in
  8       payment for any services rendered. If any person extends credit in vio-
  9       lation of this subsection, the debt attempted to be created shall not be
10       recoverable at law.
11             (2) A licensed retailer may sell alcoholic liquor and nonalcoholic malt
12       beverage to a consumer, a licensed microbrewery may sell domestic beer
13       to a consumer and a licensed farm winery may sell domestic wine to a
14       consumer on credit pursuant to a credit card which entitles the user to
15       purchase goods or services from at least 100 persons not related to the
16       issuer of the credit card.
17             (b) No microbrewery, farm winery or retailer of alcoholic liquor shall
18       accept a check for payment for alcoholic liquors sold by the winery or
19       retailer to a consumer, other than the personal check of the person mak-
20       ing the purchase.
21             Sec.  84. K.S.A. 41-718 is hereby amended to read as follows: 41-718.
22       (a) No person except a manufacturer, distributor, microbrewery, or farm
23       winery or wholesaler shall fill or refill, in whole or in part, any original
24       package of alcoholic liquor with the same or any other kind or quality of
25       alcoholic liquor.
26             (b) No person shall have in the person's possession for sale at retail
27       any bottles, casks or other containers containing alcoholic liquor, except
28       in original packages.
29             Sec.  85. K.S.A. 1998 Supp. 41-719 is hereby amended to read as
30       follows: 41-719. (a) No person shall drink or consume alcoholic liquor on
31       the public streets, alleys, roads or highways or inside vehicles while on
32       the public streets, alleys, roads or highways.
33             (b) No person shall drink or consume alcoholic liquor on private
34       property except:
35             (1) On premises where the sale of liquor by the individual drink is
36       authorized by the club and drinking establishment act;
37             (2) upon private property by a person occupying such property as an
38       owner or lessee of an owner and by the guests of such person, if no charge
39       is made for the serving or mixing of any drink or drinks of alcoholic liquor
40       or for any substance mixed with any alcoholic liquor and if no sale of
41       alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
42       this act takes place;
43             (3) in a lodging room of any hotel, motel or boarding house by the

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  1       person occupying such room and by the guests of such person, if no
  2       charge is made for the serving or mixing of any drink or drinks of alcoholic
  3       liquor or for any substance mixed with any alcoholic liquor and if no sale
  4       of alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
  5       this act takes place;
  6             (4) in a private dining room of a hotel, motel or restaurant, if the
  7       dining room is rented or made available on a special occasion to an in-
  8       dividual or organization for a private party and if no sale of alcoholic liquor
  9       in violation of K.S.A. 41-803, and amendments thereto, this act takes
10       place; or
11             (5) on the premises of a microbrewery or farm winery, if authorized
12       by K.S.A. 41-308a or 41-308b section 25 or 26, and amendments thereto.
13             (c) No person shall drink or consume alcoholic liquor on public prop-
14       erty except:
15             (1) On real property leased by a city to others under the provisions
16       of K.S.A. 12-1740 through 12-1749, and amendments thereto, if such real
17       property is actually being used for hotel or motel purposes or purposes
18       incidental thereto.
19             (2) In any state-owned or operated building or structure, and on the
20       surrounding premises, which is furnished to and occupied by any state
21       officer or employee as a residence.
22             (3) On premises licensed as a club or drinking establishment and
23       located on property owned or operated by an airport authority created
24       pursuant to chapter 27 of the Kansas Statutes Annotated or established
25       by a city having a population of more than 200,000.
26             (4) On the state fair grounds on the day of any race held thereon
27       pursuant to the Kansas parimutuel racing act.
28             (5) On the state fairgrounds, if such liquor is domestic wine or wine
29       imported under subsection (e) of K.S.A. 41-308a (f) of section 25, and
30       amendments thereto, and is consumed only for purposes of judging com-
31       petitions.
32             (6) In the state historical museum provided for by K.S.A. 76-2036,
33       and amendments thereto, on the surrounding premises and in any other
34       building on such premises, as authorized by rules and regulations of the
35       state historical society.
36             (7) On the premises of any state-owned historic site under the juris-
37       diction and supervision of the state historical society, on the surrounding
38       premises and in any other building on such premises, as authorized by
39       rules and regulations of the state historical society.
40             (8) In a lake resort within the meaning of K.S.A. 32-867, and amend-
41       ments thereto, on state-owned or leased property.
42             (9) On property exempted from this subsection (c) pursuant to sub-
43       section (d), (e), (f), (g) or (h).

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  1             (d) Any city may exempt, by ordinance, from the provisions of sub-
  2       section (c) specified property the title of which is vested in such city.
  3             (e) The board of county commissioners of any county may exempt,
  4       by resolution, from the provisions of subsection (c) specified property the
  5       title of which is vested in such county.
  6             (f) The state board of regents may exempt from the provisions of
  7       subsection (c) specified property which is under the control of such board
  8       and which is not used for classroom instruction, where alcoholic liquor
  9       may be consumed in accordance with policies adopted by such board.
10             (g) The board of regents of Washburn university may exempt from
11       the provisions of subsection (c) the Mulvane art center and the Bradbury
12       Thompson alumni center on the campus of Washburn university, and
13       other specified property the title of which is vested in such board and
14       which is not used for classroom instruction, where alcoholic liquor may
15       be consumed in accordance with policies adopted by such board.
16             (h) Any city may exempt, by ordinance, from the provisions of sub-
17       section (c) any national guard armory in which such city has a leasehold
18       interest, if the Kansas military board consents to the exemption.
19             (i) The provisions of subsection (c) shall not apply to functions or
20       activities held in the Hiram Price Dillon house or on its surrounding
21       premises, except to the extent limitations are established in policies
22       adopted by the legislative coordinating council, as provided by K.S.A. 75-
23       3682, and amendments thereto.
24             (j) Violation of any provision of this section is a misdemeanor punish-
25       able by a fine of not less than $50 or more than $200 or by imprisonment
26       for not more than six months, or both.
27             Sec.  86. K.S.A. 41-720 is hereby amended to read as follows: 41-720.
28       No nonbeverage user shall sell, give away or otherwise dispose of any
29       alcohol or wine, purchased under his the nonbeverage user'slicense as
30       such nonbeverage user, in any form fit for beverage purposes. Any non-
31       beverage user who shall violate violates the provisions of this section shall
32       pay to the director, for the use of the liquor control administration deposit
33       in the state treasury and credit to the state general fund, the sum of two
34       dollars and ten cents ($2.10) $2.10 for each gallon of alcohol or wine so
35       diverted, and in addition thereto shall be subject to the penalties provided
36       in K.S.A. 41-901 section 92, and amendments thereto.
37             Sec.  87. K.S.A. 1998 Supp. 41-727 is hereby amended to read as
38       follows: 41-727. (a) Except with regard to serving of alcoholic liquor or
39       cereal malt beverage as permitted by K.S.A. 41-308a, 41-308b, 41-2610
40       or sections 25, 26, 108 and K.S.A. 41-2704, and amendments thereto, no
41       person under 21 years of age shall possess, consume, obtain, purchase or
42       attempt to obtain or purchase alcoholic liquor or cereal malt beverage
43       except as authorized by law.

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  1             (b) Violation of this section by a person 18 or more years of age but
  2       less than 21 years of age is a class C misdemeanor for which the minimum
  3       fine is $200.
  4             (c) Any person less than 18 years of age who violates this section is a
  5       juvenile offender under the Kansas juvenile offenders code. Upon adju-
  6       dication thereof and as a condition of disposition, the court shall require
  7       the offender to pay a fine of not less than $200 nor more than $500.
  8             (d) In addition to any other penalty provided for a violation of this
  9       section, the court may order the offender to do either or both of the
10       following:
11             (1) Perform 40 hours of public service; or
12             (2) attend and satisfactorily complete a suitable educational or train-
13       ing program dealing with the effects of alcohol or other chemical sub-
14       stances when ingested by humans.
15             (e) This section shall not apply to the possession and consumption of
16       cereal malt beverage by a person under the legal age for consumption of
17       cereal malt beverage when such possession and consumption is permitted
18       and supervised, and such beverage is furnished, by the person's parent
19       or legal guardian.
20             (f) Any city ordinance or county resolution prohibiting the acts pro-
21       hibited by this section shall provide a minimum penalty which is not less
22       than the minimum penalty prescribed by this section.
23             (g) This section shall be part of and supplemental to the Kansas liquor
24       control act.
25             Sec.  88. K.S.A. 41-728 is hereby amended to read as follows: 41-728.
26       (a) No distributor shall, directly or indirectly, shall sell on credit any al-
27       coholic liquor or cereal malt beverage to a club, drinking establishment
28       or caterer, and no club, drinking establishment or caterer shall, directly
29       or indirectly, buy on credit any alcoholic liquor or cereal malt beverage
30       from a distributor.
31             (b) Any sales of alcoholic liquor or cereal malt beverage by a distrib-
32       utor to a club, drinking establishment, caterer or retailer licensed under
33       the Kansas liquor control act or under K.S.A. 41-2702 and amendments
34       thereto this act or a retailer licensed under the cereal malt beverage act
35       shall be separate transactions from sales by such distributor to any other
36       such club, drinking establishment, caterer or retailer even if the licensee
37       is the same person or entity as the holder of the license for such other
38       club, drinking establishment, caterer or retailer.
39             (c) Except as otherwise provided by this section or K.S.A. 41-702, 41-
40       703 and and sections 72, 73 and K.S.A. 41-2707, and amendments
41       thereto, any financial instrument, other than a second-party check, may
42       be used by a club, drinking establishment, caterer or retailer licensed
43       under the Kansas liquor control act or under K.S.A. 41-2702 and amend-

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  1       ments thereto this act or a retailer licensed under the cereal malt beverage
  2       act to purchase alcoholic liquor or cereal malt beverage from a distributor
  3       and a distributor may accept any such financial instrument as payment.
  4       In addition, a prepayment plan may be used for the purpose of making
  5       such purchases if the amount prepaid does not exceed the usual purchases
  6       made for the period of time for which prepayment is made.
  7             (d) Sales of alcoholic liquor by a distributor to clubs, drinking estab-
  8       lishments, caterers or retailers licensed under the Kansas liquor control
  9       act or under K.S.A. 41-2702 and amendments thereto this act or retailers
10       licensed under the cereal malt beverage act shall be final except that a
11       distributor may:
12             (1) Buy back any item of alcoholic liquor or cereal malt beverage
13       which such club, drinking establishment, caterer or retailer has obtained
14       the approval of the director to close out;
15             (2) buy back any item of alcoholic liquor or cereal malt beverage
16       when required by the supplier; and
17             (3) buy back or exchange, within 24 hours after delivery, any item of
18       alcoholic liquor or cereal malt beverage which is damaged or deteriorated
19       in quality.
20             Sec.  89. K.S.A. 41-729 is hereby amended to read as follows: 41-729.
21       (a) No retailer shall sell, directly or indirectly, any alcoholic liquor at less
22       than the acquisition cost of such liquor without first having obtained from
23       the director a permit to do so.
24             (b) The director may issue to a licensed retailer a permit authorizing
25       the retailer to sell alcoholic liquor at less than the acquisition act cost of
26       such liquor if:
27             (1) The retailer is actually closing out the retailer's stock for the pur-
28       pose of completely discontinuing sale of the item of alcoholic liquor for
29       a period of not less than 12 months;
30             (2) the item of alcoholic liquor is damaged or deteriorated in quality
31       and notice is given to the public thereof; or
32             (3) the sale of the item of alcoholic liquor is by an officer acting under
33       the order of a court.
34             Sec.  90. K.S.A. 41-805 is hereby amended to read as follows: 41-
35       805.(1) (a) Any room, house, building, boat, vehicle, airplane, structure
36       or place of any kind where alcoholic liquors are sold, manufactured, bar-
37       tered or given away, in violation of this act, or any building, structure or
38       boat where persons are permitted to resort for the purpose of drinking
39       alcoholic liquors, in violation of this act, or any place where such liquors
40       are kept for sale, barter or gift, in violation of this act, and all such liquors,
41       and all property kept in and used in maintaining such a place, are each
42       and all of them hereby declared to be a common nuisance. Any person
43       who maintains or assists in maintaining such common nuisance is guilty

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  1       of a misdemeanor punishable by imprisonment for not more than one
  2       year or by a fine not exceeding $25,000, or by both. If the court finds that
  3       the owner of real property knew or should have known under the circum-
  4       stances of the maintenance of a common nuisance on such property,
  5       contrary to the liquor laws of this state, and did not make a bona fide
  6       attempt to abate such nuisance under the circumstances, such property
  7       shall be subject to a lien for, and may be sold to pay all fines and costs
  8       assessed against the occupant of such building or premises for any vio-
  9       lation of this act; and such lien shall be immediately enforced by civil
10       action, in any court having jurisdiction, by the county or district attorney
11       of the county wherein such building or premises may be located, or by
12       the attorney for the director, when ordered by the director. For purposes
13       of this section, evidence of a bona fide attempt to abate such nuisance by
14       the owner of the property shall include, but not be limited to, the filing
15       of a written report, by such owner or at such owner's direction, to the
16       local law enforcement agency that the property is suspected by the owner
17       of the property of being used in maintaining a common nuisance as set
18       forth in K.S.A. 22-3901, and amendments thereto, contrary to the liquor
19       laws of this state. If a tenant of any building or premises uses the building
20       or premises, or any part thereof, in maintaining a common nuisance as
21       hereinbefore defined, or knowingly permits such use by another, such
22       use shall render void the lease under which the tenant holds, and shall
23       cause the right of possession to revert to the owner or lessor, who may
24       make immediate entry upon the premises, or may invoke the remedy
25       provided for the forcible detention thereof.
26             (2) (b) Upon the filing of a complaint or information charging that a
27       vehicle or airplane is a common nuisance as above declared, a warrant
28       shall be issued authorizing and directing the officer to whom it is directed
29       to arrest the person or persons described in the complaint or information
30       or the person or persons using the vehicle or airplane in violation of this
31       act and to seize and take into the officer's custody all such vehicles and
32       airplanes so used which the officer finds, and safely keep them subject to
33       the order of the court. In the complaint or information it shall not be
34       necessary to accurately describe the vehicle or airplane so used, but only
35       such description shall be necessary as will enable the officer executing
36       the warrant to identify it properly.
37             Whenever any vehicles or airplanes shall be seized under any such
38       warrant, whether an arrest has been made or not, a notice shall issue
39       within 48 hours after the return of the warrant in the same manner as a
40       summons, directed to the defendant in such action and to all persons
41       claiming any interest in such vehicles or airplanes, fixing a time, to be not
42       less than 60 days, and place at which all persons claiming any interest
43       therein may appear and answer the complaint made against such vehicles

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  1       or airplanes and show cause why they should not be adjudged forfeited
  2       and sold as hereinafter provided. Such notice shall be served upon the
  3       defendant in the action in the same manner as a summons if the defend-
  4       ant be found within the jurisdiction of the court, and a copy thereof shall
  5       also be posted in one or more public places in the county in which the
  6       cause is pending. If at the time for filing answer the notice has not been
  7       duly served or sufficient cause appear, the time for answering shall be
  8       extended by the court and such other notice issued as will supply any
  9       defect in the previous notice and give reasonable time and opportunity
10       for all persons interested to appear and answer. At or before the time
11       fixed by notice, any person claiming an interest in the vehicles or airplanes
12       seized, may file an answer in writing, setting up a claim thereto, and shall
13       thereupon be admitted as a party defendant to the proceedings against
14       such vehicles or airplanes. The complaint or information and answer or
15       answers that may be filed shall be the only pleadings required. At the
16       time fixed for answer, or at any other time to be fixed by the court, a trial
17       shall be held in a summary manner before the court on the allegation of
18       the complaint or information against the property seized. Whether any
19       answer shall be filed or not, it shall be the duty of the county or district
20       attorney to appear and adduce evidence in support of such allegation.
21             (3) (c) If the court finds that such vehicles or airplanes were at the
22       time a common nuisance, as defined in this section, the court shall ad-
23       judge forfeited so much thereof as the court finds to be a common nui-
24       sance, and shall order the officer in whose custody they are to sell them
25       publicly. The officer shall cause notice to be given by publication for at
26       least one week in the official county paper of the time and place of the
27       sale of the property and shall file in the court a return showing the sale
28       of the property and the amount received therefor and shall pay the same
29       into court to await the order of the court. The court, if it approves such
30       sale, shall declare forfeited the proceeds of the sale and, after paying out
31       of the proceeds of the sale the costs of the action, including costs of sale
32       and the keeping and maintenance of the property, shall out of the balance
33       of the money received from the property at the sale, pay all liens, ac-
34       cording to their priorities, which are established by intervention or oth-
35       erwise at the hearing or another proceeding brought for that purpose as
36       being bona fide and for value and as having been created without the
37       lienor having any notice that the vehicle or airplane was being used in so
38       violating the provisions of this act and without the lienor having any notice
39       at any time subsequent to the creation of the lien and prior to the seizure
40       in time to have protected the lien that the vehicle was so being used. The
41       balance remaining shall be paid to the state treasurer pursuant to K.S.A.
42       20-2801, and amendments thereto, except that, if upon proper proof, a
43       lien as herein provided is established in excess of the value of the vehicle

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  1       as found by the court, the court may order, without sale, the surrender
  2       of such vehicle to such lienor upon the payment of all costs as is herein
  3       provided.
  4             (4) (d) Either the state or any defendant or other person claiming the
  5       vehicle or airplane seized, or an interest therein, may appeal from the
  6       judgment of the court in any such proceedings against the property seized
  7       in the manner provided for taking appeals in criminal cases. Any claimant
  8       of such property who appeals, in order to stay proceedings, must enter
  9       into an undertaking with two or more sureties to the state of Kansas, to
10       be approved by the judge of the district court, in the sum of not less than
11       $100 nor less than double the amount of the value of the property as
12       fixed by the court and the costs adjudged against the property, condi-
13       tioned that the claimant will prosecute the appeal without unnecessary
14       delay, and if judgment is entered against the claimant on appeal, the
15       claimant will satisfy the judgment and costs, and no bond shall be required
16       for an appeal by the state, and such appeal shall stay the execution of the
17       judgment.
18             Sec.  91. K.S.A. 41-806 is hereby amended to read as follows: 41-806.
19       The attorney for the director when ordered by the director, or the county
20       attorney in or district attorney of the county in which such nuisance exists,
21       or is kept or maintained, may maintain an action by injunction, in the
22       name of the state of Kansas, to abate and temporarily or permanently to
23       enjoin such nuisance. The court shall have the right to make temporary
24       and final orders as in other injunction proceedings. The plaintiff shall not
25       be required to give bond in such action.
26             Upon final judgment against the defendant, such court shall allow the
27       attorneys for the state of Kansas a reasonable fee for prosecuting the
28       action which shall be taxed as costs and shall also order that such room,
29       house, building, structure, boat or place of any kind shall be closed and
30       padlocked for a period of not less than three (3) months nor more than
31       two (2) years, and until the owner, lessee, tenant or occupant thereof shall
32       give bond with sufficient surety to be approved by the court making the
33       order, in the penal sum of not less than one thousand dollars ($1,000)
34       $1,000, payable to the state of Kansas, and conditioned that no alcoholic
35       liquor will for a period of two years thereafter be manufactured, pos-
36       sessed, sold, bartered or given away or furnished or otherwise disposed
37       of thereon or therein, or kept thereon or therein with intent to sell, barter,
38       give away, or otherwise dispose of the same, contrary to this act, and that
39       he and his the defendant and the defendant's surety will pay all fines and
40       costs assessed against him the defendant for any violation of this act.
41             If any condition of such bond be violated, the whole amount may be
42       recovered as a penalty for the use of the state of Kansas; and, in such suit
43       on the bond, both principal and surety may be joined as party defendants,

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  1       and satisfaction may be had from either of them. In such action a notice
  2       to nonresident defendants may be given by publication as authorized by
  3       law under the code of civil procedure, or upon their agents for service in
  4       this state, if any.
  5             Sec.  92. K.S.A. 41-901 is hereby amended to read as follows: 41-901.
  6       (a) No person shall manufacture, import for distribution as a distributor
  7       at wholesale or distribute or sell alcoholic liquor or cereal malt beverage
  8       at any place within the state without having first obtained a valid license
  9       or permittherefor under the provisions of this act or under K.S.A. 41-
10       2702 and amendments thereto the cereal malt beverage act. No person
11       shall obtain a license to carry on the business authorized by the license
12       as agent for another, obtain a license by fraud or make any false statement
13       or otherwise violate any of the provisions of this act in obtaining any
14       license hereunder. No person having obtained a license hereunder shall
15       violate any of the provisions of this act with respect to the manufacture,
16       possession, distribution or sale of alcoholic liquor or cereal malt beverage;
17       or with respect to the maintenance of the licensed premises.
18             (b) The existence of any place for which a license or permit has not
19       been issued pursuant to this act and which purports, or is held out to the
20       public or to any person by the proprietors or their agents or employees,
21       to be a place where alcoholic liquor or cereal malt beverage is sold shall
22       be deemed to be sufficient probable cause for any judge of the district
23       court to issue a search warrant to any law enforcement officer of the state
24       or a subdivision of the state for the purpose of searching such place for
25       alcoholic liquor or cereal malt beverage being sold, possessed or consumed
26       in violation of this act, any other law of the state or any ordinance of a
27       municipal subdivision of the state.
28             (b) (c) Violation of subsection (a) shall be is punishable as follows,
29       except where other penalties are specifically provided by law:
30             (1) For a first offense, by a fine of not more than $500; and
31             (2) for a second or subsequent offense, by a fine of not more than
32       $1,000 or by imprisonment for not more than six months, or both.
33             (c) (d) Each day any person engages in business as a manufacturer,
34       distributor, microbrewery, farm winery or, retailer, temporary package
35       permit holder, club, drinking establishment, caterer or temporary liquor-
36       by-the-drink permit holder in violation of the provisions of this act shall
37       constitute a separate offense.
38             (d) (e) Any license obtained to carry on the business as agent for
39       another or any license obtained by fraud or by false statements shall be
40       revoked by the director. When a license has been revoked for obtaining
41       a license to carry on the business authorized by the license as agent for
42       another, or obtained a license by fraud or by any false statement, all
43       alcoholic liquor and cereal malt beverage in the possession of the person

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  1       who procured the license shall be forfeited and sold and the proceeds of
  2       the sale shall be paid to the county treasurer of the county where the
  3       alcoholic liquor or cereal malt beverage was located. During the pendency
  4       of any appeal from any order revoking a license, the director may obtain
  5       an order from the district court of the county where the alcoholic liquor
  6       or cereal malt beverage is located, restraining the sale or disposal of the
  7       alcoholic liquor or cereal malt beverage. When an order revoking any
  8       license is issued by the director, the director shall forthwith forward by
  9       registered mail a certified copy of the order revoking the license under
10       the seal of the director to the county or district attorney of the county
11       where the alcoholic liquor or cereal malt beverage is located.
12             Within 15 days after the order of revocation becomes final, the county
13       or district attorney shall institute, against the person who procured the
14       license, a civil action under the code of civil procedure in the district
15       court of the county in the name of the state of Kansas on the relation of
16       the county or district attorney to forfeit all alcoholic liquor and cereal
17       malt beverage. Summons shall be served as provided by the code of civil
18       procedure upon the person who procured the license. Upon the return
19       day of the summons issued or as soon after as convenient to the court,
20       an order shall be entered by the court forfeiting the alcoholic liquor and
21       cereal malt beverage to the state of Kansas and ordering it to be sold by
22       the sheriff of the county in which the forfeiture occurred. The order shall
23       fix the time and place of sale and the method and manner in which the
24       sale shall be held, together with notice of the sale as the court directs.
25       After payment of all costs of the action, including a reasonable fee for the
26       county or district attorney, the balance remaining shall be paid to the
27       state treasurer pursuant to K.S.A. 20-2801 and amendments thereto.
28             Sec.  93. K.S.A. 41-902 is hereby amended to read as follows: 41-902.
29       Any person who shall violate violates any provision of this act for which
30       a penalty is not otherwise specifically provided shall upon conviction of
31       any such violation be fined not to exceed five hundred dollars ($500) or
32       by imprisonment not to exceed six (6) months or by both such fine and
33       imprisonment upon conviction shall be fined not more than $500 or im-
34       prisoned for not more than six months, or both.
35             Sec.  94. K.S.A. 41-903 is hereby amended to read as follows: 41-903.
36       If the owner of the licensed premises or any person from whom the
37       licensee derives the right to possession of such premises, or the agent of
38       such owner or person, shall knowingly permit knowingly permits the li-
39       censee to use such licensed premises in violation of the terms of this act,
40       such owner, agent or other person shall be deemed guilty of a violation
41       of this act to the same extent as such licensee and be subject to the same
42       punishment.
43             Sec.  95. K.S.A. 41-904 is hereby amended to read as follows: 41-904.

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  1       Every act or omission of whatsoever any nature constituting a violation
  2       of any of the provisions of this act, by any officer, director, manager or
  3       other agent or employee of any licensee, if such act is committed or
  4       omission is made with the authorization, knowledge or approval of the
  5       licensee, shall be deemed and held to be the act of such employer or
  6       licensee, and such employer or licensee shall be punishable in the same
  7       manner as if such act or omission had been done or omitted by him the
  8       employer or licensee personally.
  9             Sec.  96. K.S.A. 41-905 is hereby amended to read as follows: 41-905.
10       Any person who shall (a) It is unlawful for any person to: (1) Knowingly
11       possess, sell, ship, transport or in any way dispose of any alcoholic liquor
12       under any other than the proper name or brand known to the trade as
13       designating the kind and quality of the contents of the package or other
14       containers of such alcoholic liquor or who shall; or (2) cause any such act
15       to be done,.
16             (b) In addition to any other penalties provided by this act, a person
17       violating this section shall forfeit to the state such alcoholic liquor and
18       such packages and containers, and shall be subject to the punishment and
19       penalties provided for violation of this act.
20             Sec.  97. K.S.A. 41-1001 is hereby amended to read as follows: 41-
21       1001. In any indictment, information or complaint, charging the violation
22       of any of the provisions of this act, it shall be sufficient to charge that the
23       accused unlawfully manufactured, sold, offered for sale, kept for sale,
24       delivered or otherwise unlawfully disposed of alcoholic liquor or cereal
25       malt beverage without any further or more specific description of such
26       liquor; and alcoholic liquor or cereal malt beverage. Proof of any kind of
27       alcoholic liquor or cereal malt beverage unlawfully manufactured, sold,
28       offered for sale, kept for sale, delivered, or otherwise unlawfully disposed
29       of, as the case may be, shall be sufficient proof as to the character or kind
30       of alcoholic liquor or cereal malt beverage.
31             Sec.  98. K.S.A. 41-1002 is hereby amended to read as follows: 41-
32       1002. In any indictment, information, or complaint charging the violation
33       of any of the provisions of this act, it shall not be necessary to allege the
34       quantity of such alcoholic liquor or cereal malt beverage or the kind
35       thereof further than to allege that the same was alcoholic liquor or cereal
36       malt beverage and, in case of sale, keeping for sale or delivery, it shall not
37       be necessary to set out the name of the person to whom sale or delivery
38       has been made; and, in any prosecution for a second offense, it shall not
39       be necessary to state in the indictment, complaint or information the
40       record of the former conviction, but it shall be sufficient briefly to allege
41       such conviction. Proof of sale, delivery or unlawful disposition of alcoholic
42       liquors liquor or cereal malt beverage to any person, not authorized by
43       this act to purchase or receive the same, shall be sufficient to sustain the

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  1       allegation of unlawful sale, delivery or disposition, as the case may be.
  2             Sec.  99. K.S.A. 41-1003 is hereby amended to read as follows: 41-
  3       1003. In any indictment, information, or complaint, against any one or
  4       more individuals charging the violation of any of the provisions of this act,
  5       separate offenses hereunder may be joined in the same indictment, in-
  6       formation, or complaint; and. The accused may be prosecuted and con-
  7       victed upon all or any of such counts so joined the same as upon separate
  8       indictments, informations or complaints; and judgment may be rendered
  9       on each count upon which there is a conviction. In any indictment, in-
10       formation or complaint for any violation of this act, it shall not be nec-
11       essary to describe the place where the offense was committed, except to
12       allege that it was committed in the county wherein the prosecution was
13       had where the prosecution was brought, unless the particular place where
14       the violation occurred constitutes one of the specific ingredients of the
15       offense; nor shall it. It shall not be necessary to negative any of the ex-
16       ceptions contained in this act, nor shall it be necessary to state the day or
17       the hour when the offense was committed unless the day or hour consti-
18       tutes a special element or ingredient of the offense.
19             Sec.  100. K.S.A. 41-1004 is hereby amended to read as follows: 41-
20       1004. The possession of a special tax stamp from the government of the
21       United States authorizing the sale or manufacture of alcoholic liquor as
22       defined in this act by a person not licensed under this act, shall be prima
23       facie evidence that the person so holding said holding the special tax
24       stamp is manufacturing or selling in violation of this act. A certified copy
25       of such special tax stamp verified by the proper authority shall be admitted
26       in evidence in all respects as the original special tax stamp might be re-
27       ceived.
28             Sec.  101. K.S.A. 1998 Supp. 41-1101 is hereby amended to read as
29       follows: 41-1101. (a) No distributor licensed under this act shall purchase
30       any alcoholic liquor from any manufacturer, owner of alcoholic liquor at
31       the time it becomes a marketable product, exclusive agent of such man-
32       ufacturer or owner, microbrewery, farm winery or distributor of alcoholic
33       liquor bottled in a foreign country either within or without this state,
34       unless the manufacturer, owner, exclusive agent, microbrewery, farm
35       winery or distributor files with the director a written statement sworn to
36       by the manufacturer, owner, exclusive agent, microbrewery, farm winery
37       or distributor or, in case of a corporation, one of its principal officers,
38       agreeing to sell any of the brands or kinds of alcoholic liquor manufac-
39       tured or distributed by the manufacturer, owner, exclusive agent, micro-
40       brewery, farm winery or distributor to any distributor licensed in this state
41       and having a franchise to distribute the alcoholic liquor pursuant to K.S.A.
42       41-410 section 63, and amendments thereto, and to make such sales to
43       all such licensed distributors in this state at the same current price and

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  1       without discrimination. Each manufacturer, owner, exclusive agent, mi-
  2       crobrewery or farm winery shall provide to each distributor written notice
  3       not less than 45 days before any change in the current price of any spirits
  4       or wine which such manufacturer, owner, exclusive agent, microbrewery
  5       or farm winery sells to such distributor. If any manufacturer, owner, ex-
  6       clusive agent, microbrewery, farm winery or distributor making the agree-
  7       ment violates the agreement by refusing to sell such alcoholic liquor to
  8       any such franchised licensed distributor in this state or discriminates in
  9       current prices among such franchised licensed distributors making or at-
10       tempting to make purchases of alcoholic liquor from the manufacturer,
11       owner, exclusive agent, microbrewery, farm winery or distributor, the
12       director shall notify, by registered mail, each such franchised licensed
13       distributor in this state of the violation. Thereupon, it shall be unlawful
14       for a franchised licensed distributor in this state to purchase any alcoholic
15       liquor from the manufacturer, owner, exclusive agent, microbrewery,
16       farm winery or distributor. If thereafter such a franchised licensed dis-
17       tributor purchases any alcoholic liquor from the manufacturer, owner,
18       exclusive agent, microbrewery, farm winery or distributor, such fran-
19       chised distributor's license shall be revoked by the director. If any man-
20       ufacturer, owner, exclusive agent, microbrewery, farm winery or distrib-
21       utor of alcoholic liquor bottled in a foreign country, making any
22       agreement hereunder, does not have a sufficient supply of alcoholic liquor
23       of any of the brands or kinds which the manufacturer, owner, exclusive
24       agent, microbrewery, farm winery or distributor manufactures or distrib-
25       utes to supply the demands of all licensed distributors having a franchise
26       to distribute such alcoholic liquor, the manufacturer, owner, exclusive
27       agent, microbrewery, farm winery or distributor may ration such alcoholic
28       liquor and apportion the available supply among such franchised licensed
29       distributors purchasing or attempting to purchase it, in accordance with
30       a plan which shall be subject to the approval of the director.
31             (b) No retailer licensed under this act shall purchase any alcoholic
32       liquor from any distributor licensed under this act unless the distributor
33       files with the director a written statement sworn to by the distributor, or
34       in case of a corporation by one of its principal officers, agreeing to sell
35       any of the brands or kinds of alcoholic liquor distributed by the distributor
36       and to provide service in connection therewith to any licensed retailer
37       whose licensed premises are located within the geographic territory of
38       the distributor's franchise for the alcoholic liquor, unless written approval
39       to do otherwise is obtained from the director, and to make such sales to
40       all such licensed retailers at the same current bottle, sleeve and case price
41       and without discrimination. For purposes of this subsection the "same
42       current bottle, sleeve and case price" for spirits and wine means a price
43       effective for a specified period as designated by the distributor on or

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  1       before the first day of each month. If any distributor making the agree-
  2       ment violates the agreement by refusing to sell or provide service to any
  3       such licensed retailer in this state without written approval of the director
  4       or discriminates in current prices among such licensed retailers making
  5       or attempting to make purchases of alcoholic liquor from the distributor,
  6       the director may revoke the license of the distributor. If any licensed
  7       distributor making any agreement hereunder does not have a sufficient
  8       supply of alcoholic liquor of any of the brands or kinds which the distrib-
  9       utor distributes to supply the demands of all such licensed retailers, the
10       distributor may ration such alcoholic liquor and apportion the available
11       supply among such licensed retailers purchasing or attempting to pur-
12       chase the same, in accordance with a plan which shall be subject to the
13       approval of the director.
14             (c) No club or drinking establishment licensed in this state shall pur-
15       chase any wine or beer from any distributor licensed under this act unless
16       the distributor files with the director a written statement sworn to by the
17       distributor, or in case of a corporation by one of its principal officers,
18       agreeing to sell any of the brands or kinds of wine or beer distributed by
19       the distributor to those clubs and drinking establishments to which the
20       distributor is authorized to sell such wine or beer and to which the dis-
21       tributor desires to sell such wine or beer, unless written approval to do
22       otherwise is obtained from the director and to make such sales to all such
23       licensed clubs or drinking establishments at the same current bottle and
24       case price and without discrimination. If any distributor making the agree-
25       ment violates the agreement by refusing to sell to any such licensed club
26       or drinking establishment in this state without written approval of the
27       director or discriminates in current prices among such licensed clubs or
28       drinking establishments making or attempting to make purchases of wine
29       or beer from the distributor, the director may revoke the license of the
30       distributor. If any licensed distributor making any agreement hereunder
31       does not have a sufficient supply of wine or beer of any of the brands or
32       kinds which the distributor distributes to supply the demands of all such
33       licensed clubs or drinking establishments, the distributor may ration such
34       wine or beer and apportion the available supply among such licensed
35       clubs or drinking establishments purchasing or attempting to purchase
36       the same, in accordance with a plan which shall be subject to the approval
37       of the director.
38             For the purposes of this subsection, a delivery charge shall not be
39       considered a part of the price of wine or beer sold by a distributor.
40             (d) No retailer licensed under K.S.A. 41-2701 et seq. and amend-
41       ments thereto the cereal malt beverage act, shall purchase any cereal malt
42       beverage from any distributor licensed under this act unless the distrib-
43       utor files with the director a written statement sworn to by the distributor,

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  1       or in case of a corporation by one of its principal officers, agreeing to sell
  2       any of the brands or kinds of cereal malt beverage distributed by the
  3       distributor to those retailers to which the distributor is authorized to sell
  4       such cereal malt beverage, unless written approval to do otherwise is
  5       obtained from the director, and to make such sales to all such licensed
  6       retailers at the same current price and without discrimination. If any
  7       distributor making the agreement violates the agreement by refusing to
  8       sell to any such licensed retailer in this state without written approval of
  9       the director or discriminates in current prices among such licensed re-
10       tailers making or attempting to make purchases of cereal malt beverage
11       from the distributor, the director may revoke the license of the distrib-
12       utor. If any licensed distributor making any agreement hereunder does
13       not have a sufficient supply of cereal malt beverage of any of the brands
14       or kinds which the distributor distributes to supply the demands of all
15       such licensed retailers, the distributor may ration such cereal malt bev-
16       erage and apportion the available supply among such licensed retailers
17       purchasing or attempting to purchase the same, in accordance with a plan
18       which shall be subject to the approval of the director.
19             (e) No distributor shall sell alcoholic liquor or cereal malt beverage
20       to a retailer licensed under the Kansas liquor control act, to a, club, drink-
21       ing establishment or caterer licensed under the club and drinking estab-
22       lishment this act or to a retailer licensed under K.S.A. 41-2702 and
23       amendments thereto the cereal malt beverage act at a discount for mul-
24       tiple case lots.
25             Sec.  102. K.S.A. 41-1102 is hereby amended to read as follows: 41-
26       1102. Any licensee who shall quit quits business or shall have the has the
27       licensee's license suspended or revoked may sell and dispose of any al-
28       coholic liquor which the licensee has possession of at the time of quitting
29       business or at the time of the suspension or revocation of the license in
30       accordance with rules and regulations adopted by the secretary of reve-
31       nue.
32             Sec.  103. K.S.A. 41-1107 is hereby amended to read as follows: 41-
33       1107. (a) It shall be the duty of the county attorneys of the several counties
34       each county or district attorney to: (1) Diligently prosecute any and all
35       persons violating any of the provisions of this act in their respective coun-
36       ties, and to the county or district attorney's county; (2) bring suit upon
37       all bonds or recognizances forfeited immediately after the happening of
38       such forfeiture, to; and (3) recover the penalty, and to and pay all money
39       so collected to the county treasurer of his the county.
40             If any county attorney shall fail, neglect, or refuse to faithfully perform
41       any duty imposed upon him by this act, he shall be deemed guilty of a
42       misdemeanor, and upon conviction thereof shall be fined in any sum not
43       less than one hundred dollars ($100) nor more than five hundred dollars

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  1       ($500), and be imprisoned in the county jail not less than ten (10) days
  2       nor more than ninety (90) days; and such conviction shall operate as a
  3       forfeiture of his office, and the court before whom such conviction may
  4       be had shall order and adjudge such forfeiture of office in addition to the
  5       fine or imprisonment imposed as herein provided.
  6             (b) Whenever the county attorney shall be or district attorney is un-
  7       able or shall neglect or refuse neglects and refuses to enforce the provi-
  8       sions of this act in his the county or district attorney's county, or whenever
  9       for any reason whatever the provisions of this act shall not be are not
10       enforced in any county, it shall be the duty of the attorney general to
11       enforce the same provisions of this act in such county, and. For that
12       purpose he the attorney general may appoint as many assistants as he
13       shall see fit, and he and his the attorney general determines necessary.
14       The attorney general and the attorney general's assistants shall be au-
15       thorized to sign, verify and file all such complaints, informations, petitions
16       and papers as the county or district attorney is authorized to sign, verify
17       or file, and to do and perform any act that the county attorney might
18       lawfully do or perform.
19             Sec.  104. K.S.A. 41-1122 is hereby amended to read as follows: 41-
20       1122. The director of alcoholic beverage control is authorized to sell at
21       public or private sale alcoholic liquor in his the director's custody here-
22       tofore or hereafter purchased or confiscated by his the director's agents
23       or other peace officers of the state for use as evidence in any investigation,
24       proceeding or trial when such liquor is no longer required for such in-
25       vestigation, trial or proceeding.
26             Sec.  105. K.S.A. 41-1123 is hereby amended to read as follows: 41-
27       1123. (a) All alcoholic liquor in the custody of the director through seizure
28       by agents of alcoholic beverage control or other peace officers of the state
29       under authority of a duly executed search warrant shall be held until final
30       determination of any prosecution arising under such search and seizure.
31       Upon the final determination of such prosecution and if such alcoholic
32       liquor is fit for human consumption the director may make application to
33       the court in which such alcoholic liquor was offered as evidence for an
34       order to sell such liquor. The court, if satisfied that such liquor so seized
35       was being manufactured, distributed, stored, sold or used in violation of
36       law, shall make an order that such property be sold by the director at
37       public or private sale.
38             (b) All alcoholic liquor which is unfit for human consumption may be
39       summarily destroyed by the director.
40             (c) The proceeds of all sales by the director under this section shall
41       be deposited in the state general fund.
42             Sec.  106. K.S.A. 41-1125 is hereby amended to read as follows: 41-
43       1125. The sheriff of any county who has in his the sheriff's possession

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  1       alcoholic liquors liquor on which he the sheriff has levied execution for a
  2       judgment creditor may sell such alcoholic liquors liquor when an order
  3       of the court is entered directing such sale. Such order shall be directed
  4       to the sheriff of the county in which execution is levied and shall fix the
  5       time and place of sale, method and manner in which the sale shall be
  6       held, together with such notice as the court shall direct. After payment
  7       of all costs of said such action, the balance shall be paid to the judgment
  8       creditor, except, if the amount exceeds the amount of the judgment, then
  9       any excess of the judgment amount shall be returned to defendant debtor.
10       This act shall not apply in any case in which the court has ordered and
11       directed confiscation of liquors alcoholic liquor as part of a judgment or
12       conviction.
13             Sec.  107. K.S.A. 1998 Supp. 41-1126 is hereby amended to read as
14       follows: 41-1126. (a) In addition to other purposes for which expenditures
15       may be made from the other state fees fund of the department of social
16       and rehabilitation services, moneys in the other state fees fund of the
17       department of social and rehabilitation services shall be used by the sec-
18       retary of social and rehabilitation services to provide financial assistance
19       to community-based alcoholism and intoxication treatment programs for
20       the following purposes: (1) Matching money under title XX of the federal
21       social security act to purchase treatment services from approved treat-
22       ment facilities; (2) providing start-up or expansion grants for halfway
23       houses or rehabilitation centers for alcoholics; (3) purchasing services
24       from approved treatment facilities for persons who are needy but who
25       are not eligible for assistance under either title XIX or title XX of the
26       federal social security act, and administrative costs of the alcohol and drug
27       abuse section which shall not exceed 10% of the total moneys in the
28       community alcoholism and intoxication programs fund; and (4) assisting
29       to develop programs for prevention, education, early identification and
30       facility assistance and review team.
31             (b) No state alcohol treatment program at Topeka state hospital, Os-
32       awatomie state hospital, Rainbow mental health facility or Larned state
33       hospital shall receive any moneys under the provisions of subsection (a)
34       of this section.
35             Sec.  108. K.S.A. 41-2610 is hereby amended to read as follows: 41-
36       2610. It shall be unlawful for any licensee holder of a club, drinking
37       establishment or caterer's license or holder of a temporary liquor-by-the-
38       drink permit under this act to:
39             (a) Employ any person under the age of 18 years in connection with
40       the serving of alcoholic liquor.
41             (b) Employ knowingly or continue in employment any person in con-
42       nection with the dispensing or serving of alcoholic liquor or the mixing
43       of drinks containing alcoholic liquor who has been adjudged guilty of a

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  1       felony or of any crime involving a morals charge in this or any other state,
  2       or of the United States.
  3             (c) Employ knowingly or to continue in employment any person in
  4       connection with the dispensing or serving of alcoholic liquor or mixing of
  5       drinks containing alcoholic liquor who has been adjudged guilty of a vi-
  6       olation of any intoxicating liquor law of this or any other state, or of the
  7       United States, during the two-year period immediately following such
  8       adjudging.
  9             (d) In the case of a club, fail to maintain at the licensed premises a
10       current list of all members and their residence addresses or refuse to
11       allow the director, any of the director's authorized agents or any law
12       enforcement officer to inspect such list.
13             (e) Purchase alcoholic liquor from any person except from a person
14       authorized by law to sell such alcoholic liquor to such licensee or permit
15       holder.
16             (f) Permit any employee of the licensee or permit holder who is under
17       the age of 21 years to work on premises where alcoholic liquor is sold by
18       such licensee or permit holder at any time when not under the on-prem-
19       ises supervision of either the licensee or permit holder, or an employee
20       who is 21 years of age or over.
21             (g) Employ any person under 21 years of age in connection with the
22       mixing or dispensing of drinks containing alcoholic liquor.
23             Sec.  109. K.S.A. 41-2611 is hereby amended to read as follows: 41-
24       2611. The director may revoke or suspend any club, drinking establish-
25       ment or caterer's license issued pursuant to the club and drinking estab-
26       lishment act for any one or more of the following reasons:
27             (a) The licensee has fraudulently obtained the license by giving false
28       information in the application therefor or any hearing thereon.
29             (b) The licensee has violated any of the provisions of this act or any
30       rules or and regulations adopted hereunder.
31             (c) The licensee has become ineligible to obtain a license or permit
32       under this act.
33             (d) The licensee's manager or employee has been intoxicated while
34       on duty.
35             (e) The licensee, or its manager or employee, has permitted any dis-
36       orderly person to remain on premises where alcoholic liquor is sold by
37       such licensee.
38             (f) There has been a violation of a provision of the laws of this state,
39       or of the United States, pertaining to the sale of intoxicating or alcoholic
40       liquors or cereal malt beverages, or any crime involving a morals charge,
41       on premises where alcoholic liquor is sold by such licensee.
42             (g) The licensee, or its managing officers or any employee, has pur-
43       chased and displayed, on premises where alcoholic liquor is sold by such

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  1       licensee, a federal wagering occupational stamp issued by the United
  2       States treasury department.
  3             (h) The licensee, or its managing officers or any employee, has pur-
  4       chased and displayed, on premises where alcoholic liquor is sold by such
  5       licensee, a federal coin operated gambling device stamp for the premises
  6       issued by the United States treasury department.
  7             (i) The licensee holds a license as a class B club, drinking establish-
  8       ment or caterer and has been found guilty of a violation of article 10 of
  9       chapter 44 of the Kansas Statutes Annotated under a decision or order
10       of the Kansas human rights commission which has become final or such
11       licensee has been found guilty of a violation of K.S.A. 21-4003, and
12       amendments thereto.
13             Sec.  110. K.S.A. 41-2613 is hereby amended to read as follows: 41-
14       2613. The right of immediate entry to and inspection of any premises
15       licensed as a club or drinking establishment or any premises where al-
16       coholic liquor is sold by a holder of a temporary permit, or any premises
17       subject to the control of any licensee or temporary permit holder or per-
18       mitted under the liquor control act, by any duly authorized officer or agent
19       of the director, or by any law enforcement officer, shall be a condition
20       on which every license or temporary permit is issued, and. The application
21       for, and acceptance of, any license or temporary permit shall conclusively
22       be deemed to be the consent of the applicant and licensee or permit
23       holder to such immediate entry and inspection. Such right of immediate
24       entry and inspection shall be at any time when the premises are occupied
25       and is not limited to hours when the club or drinking establishment is
26       premises are open for business. Such consent shall not be revocable dur-
27       ing the term of the license or temporary permit. Refusal of such entry
28       shall be grounds for revocation of the license or temporary permit.
29             Sec.  111. K.S.A. 1998 Supp. 41-2614 is hereby amended to read as
30       follows: 41-2614. (a) Except as provided by subsection (c), no club or
31       drinking establishment shall allow the serving, mixing or consumption of
32       alcoholic liquor on its premises between the hours of 2:00 2 a.m. and 9:00
33       9 a.m. on any day.
34             (b) No caterer shall allow the serving, mixing or consumption of al-
35       coholic liquor between the hours of 2:00 2 a.m. and 6:00 6a.m. on any
36       day at an event catered by such caterer.
37             (c) A hotel of which the entire premises are licensed as a drinking
38       establishment or as a drinking establishment/caterer may allow at any time
39       the serving, mixing and consumption of alcoholic liquor and cereal malt
40       beverage from a minibar in a guest room by guests registered to stay in
41       such room, and guests of guests registered to stay in such room.
42             Sec.  112. K.S.A. 1998 Supp. 41-2615 is hereby amended to read as
43       follows: 41-2615. (a) No licensee or permit holder holder of a club, drink-

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  1       ing establishment or caterer's license or holder of a temporary liquor-by-
  2       the-drink permit, or any owner, officer or employee thereof, shall know-
  3       ingly or unknowingly permit the possession or consumption of alcoholic
  4       liquor or cereal malt beverage by a minor on premises where alcoholic
  5       beverages are sold by such licensee or permit holder, except that a li-
  6       censee's or permit holder's employee who is not less than 18 years of age
  7       may serve alcoholic liquor or cereal malt beverage under the on-premises
  8       supervision of the licensee or permit holder, or an employee who is 21
  9       years of age or older.
10             (b) Violation of this section is a misdemeanor punishable by a fine of
11       not less than $100 and not more than $250 or imprisonment not exceeding
12       30 days, or both.
13             (c) It shall be a defense to a prosecution under this section if: (1) The
14       defendant permitted the minor to possess or consume the alcoholic liquor
15       or cereal malt beverage with reasonable cause to believe that the minor
16       was 21 or more years of age; and (2) to possess or consume the alcoholic
17       liquor or cereal malt beverage, the minor exhibited to the defendant a
18       driver's license, Kansas nondriver's identification card or other official or
19       apparently official document, containing a photograph of the minor and
20       purporting to establish that such minor was 21 or more years of age.
21             Sec.  113. K.S.A. 41-2632 is hereby amended to read as follows: 41-
22       2632. (a) As used in this section: (1) The word "distributor" means a
23       person, firm, association or corporation which is the holder of an alcoholic
24       liquor distributor's license issued under the Kansas liquor control act; (2)
25       the word "retailer" means a person, copartnership or association which
26       is the holder of a retailer's license issued under the Kansas liquor control
27       act; and (3) the word "manufacturer" shall have the meaning ascribed to
28       it by K.S.A. 41-102 and amendments thereto.
29             (b) It shall be unlawful for a distributorof alcoholic liquor, or a man-
30       ufacturer, or any officer, agent or employee thereof, to influence, coerce
31       or induce or attempt to influence, coerce or induce, either directly or
32       indirectly, any holder of a license issued under this act club, drinking
33       establishment or caterer's license or a holder of a temporary liquor-by-
34       the-drink permit, or any officer, agent or employee of the holder of such
35       a license or permit, to: (1) (a)Purchase any particular brand or kind of
36       alcoholic liquor to be dispensed by the licensee, except that a distributor
37       or manufacturer may provide to a licensee information regarding the
38       availability of brands in the market and things of value as authorized by
39       subsection (d) of K.S.A. 41-703 section 73, and amendments thereto; or
40       (2) (b) purchase from a particular retailer alcoholic liquor to be dispensed
41       by the licensee.
42             (c) Violation of this section is a misdemeanor punishable by a fine of
43       not less than $100 nor more than $1,000 or by imprisonment for not more

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  1       than six months, or by both.
  2             New Sec.  114. (a) A license for a class A club shall allow the licensee
  3       to offer for sale, sell and serve alcoholic liquor for consumption on the
  4       licensed premises by members and their families, and guests accompa-
  5       nying them.
  6             (b)  (1) Subject to the provisions of subsection (b)(2), any two or more
  7       class A or class B clubs may permit, by an agreement filed with and
  8       approved by the director, the members of each such club to have access
  9       to all other clubs which are parties to such agreement. The privileges
10       extended to the visiting members of other clubs under such an agreement
11       shall be determined by the agreement and, if the agreement so provides,
12       any club which is a party to such agreement may sell, offer for sale and
13       serve, to any person who is a member of another club which is a party to
14       such agreement, alcoholic liquor for consumption on the licensed prem-
15       ises by such person and such person's family, and guests accompanying
16       them.
17             (2) A class B club may enter into a reciprocal agreement authorized
18       by subsection (b)(1) only if the class B club is a restaurant.
19             Sec.  115. K.S.A. 41-2639 is hereby amended to read as follows: 41-
20       2639. (a) No person shall receive a commission or other compensation
21       for the sale of any membership to a club.
22             (b) No person shall sell or offer for sale any membership to a club
23       except on the licensed premises of such club.
24             (c) This section shall be part of and supplemental to K.S.A. 41-2601
25       to 41-2637, inclusive, and amendments thereto.
26             Sec.  116. K.S.A. 41-2640 is hereby amended to read as follows: 41-
27       2640. (a) No club, drinking establishment, caterer or holder of a tem-
28       porary liquor-by-the-drink permit, nor any person acting as an employee
29       or agent thereof, shall:
30             (1) Offer or serve any free cereal malt beverage or alcoholic liquor
31       in any form to any person;
32             (2) offer or serve to any person a drink at a price that is less than the
33       acquisition cost of the drink to the licensee or permit holder;
34             (3) sell, offer to sell or serve to any person an unlimited number of
35       drinks during any set period of time for a fixed price, except at private
36       functions not open to the general public or to the general membership
37       of a club;
38             (4) sell, offer to sell or serve any drink to any person at any time at a
39       price less than that charged all other purchasers of drinks on that day;
40             (5) increase the volume of alcoholic liquor contained in a drink or the
41       size of a drink of cereal malt beverage without increasing proportionately
42       the price regularly charged for the drink on that day;
43             (6) encourage or permit, on the licensed premises, any game or con-

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  1       test which involves drinking alcoholic liquor or cereal malt beverage or
  2       the awarding of drinks as prizes; or
  3             (7) advertise or promote in any way, whether on or off the licensed
  4       premises, any of the practices prohibited under subsections (a)(1) through
  5       (6).
  6             (b) Nothing in subsection (a) shall be construed to prohibit a club,
  7       drinking establishment, caterer or holder of a temporary permit from:
  8             (1) Offering free food or entertainment at any time; or
  9             (2) selling or delivering wine by the bottle or carafe.
10             (c) Violation of any provision of this section is a misdemeanor pun-
11       ishable as provided by K.S.A. 41-2633 and amendments thereto.
12             (d) Violation of any provision of this section shall be grounds for sus-
13       pension or revocation of the licensee's license as provided by K.S.A. 41-
14       2609 and amendments thereto and for imposition of a civil fine on the
15       licensee or temporary permit holder as provided by K.S.A. 41-2633a and
16       amendments thereto.
17             (e) (c) Every licensed club and drinking establishment shall make
18       available at any time upon request a price list showing the club's or drink-
19       ing establishment's current prices per drink for all drinks.
20             (f) (d) As used in this section, "drink" means an individual serving of
21       any beverage containing alcoholic liquor or an individual serving of cereal
22       malt beverage.
23             New Sec.  117. (a) A license for a class B club shall allow the licensee
24       to offer for sale, sell and serve alcoholic liquor for consumption on the
25       licensed premises by members of such club and guests accompanying
26       them.
27             (b)  (1) Subject to the provisions of subsection (b)(2), any two or more
28       class A or class B clubs may permit, by an agreement filed with and
29       approved by the director, the members of each such club to have access
30       to all other clubs which are parties to such agreement. The privileges
31       extended to the visiting members of other clubs under such an agreement
32       shall be determined by the agreement and, if the agreement so provides,
33       any club which is a party to such agreement may sell, offer for sale and
34       serve, to any person who is a member of another club which is a party to
35       such agreement, alcoholic liquor for consumption on the licensed prem-
36       ises by such person and such person's family, and guests accompanying
37       them.
38             (2) A class B club may enter into a reciprocal agreement authorized
39       by subsection (b)(1) only if the class B club is a restaurant.
40             (c) Except as provided by subsection (d), an applicant for member-
41       ship in a class B club shall, before becoming a member of such club:
42             (1) Be screened by the club for good moral character;
43             (2) pay an annual membership fee of not less than $10; and

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  1             (3) wait for a period of 10 days after completion of the application
  2       form and payment of the membership fee.
  3             (d) Notwithstanding the membership fee and waiting period require-
  4       ment of subsection (c):
  5             (1) Any class B club located on the premises of a hotel or RV resort
  6       may establish rules whereby a guest, who registered at the hotel or RV
  7       resort and who is not a resident of the county in which the club is located,
  8       may file application for temporary membership in such club. The mem-
  9       bership, if granted, shall be valid only for the period of time that the guest
10       is a bona fide registered guest at the hotel or RV resort and such tem-
11       porary membership shall not be subject to the waiting period or fee re-
12       quirement of this section.
13             (2) Any class B club located on property which is owned or operated
14       by a municipal airport authority and upon which consumption of alcoholic
15       liquor is authorized by law may establish rules whereby an air traveler
16       who is a holder of a current airline ticket may file application for tem-
17       porary membership in such club for the day such air traveler's ticket is
18       valid, and such temporary membership shall not be subject to the waiting
19       period or fee requirement of this section.
20             (3) Any class B club may establish rules whereby military personnel
21       of the armed forces of the United States on temporary duty and housed
22       at or near any military installation located within the exterior boundaries
23       of the state of Kansas may file application for temporary membership in
24       such club. The membership, if granted, shall be valid only for the period
25       of the training, not to exceed 20 weeks. Any person wishing to make
26       application for temporary membership in a class B club under this sub-
27       section (d)(3) shall present the temporary duty orders to the club. Tem-
28       porary membership issued under this subsection (d)(3) shall not be sub-
29       ject to the waiting period or fee requirements of this section.
30             (4) Any class B club may enter into a written agreement with a hotel
31       or RV resort whereby a guest who is registered at the hotel or RV resort
32       and who is not a resident of the county in which the club is located may
33       file application for temporary membership in such club. The temporary
34       membership, if granted, shall be valid only for the period of time that the
35       guest is a bona fide registered guest at the hotel or RV resort and shall
36       not be subject to the waiting period or dues requirement of this section.
37       A club may enter into a written agreement with a hotel or RV resort
38       pursuant to this provision only if (A) the hotel or RV resort is located in
39       the same county as the club, (B) there is no class B club located on the
40       premises of the hotel or RV resort and (C) no other club has entered into
41       a written agreement with the hotel or RV resort pursuant to this section.
42             (5) Any class B club located in a racetrack facility where races with
43       parimutuel wagering are conducted under the Kansas parimutuel racing

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  1       act may establish rules whereby persons attending such races may file an
  2       application for temporary membership in such club for the day such per-
  3       son is attending such races, and such temporary membership shall not be
  4       subject to the waiting period or fee requirement of this section.
  5             Sec.  118. K.S.A. 1998 Supp. 41-2642 is hereby amended to read as
  6       follows: 41-2642. (a) A license for a drinking establishment shall allow the
  7       licensee to offer for sale, sell and serve alcoholic liquor for consumption
  8       on the licensed premises which may be open to the public, but only if
  9       such premises are located in a county where the qualified electors of the
10       county:
11             (1)  (A) Approved, by a majority vote of those voting thereon, the
12       proposition to amend section 10 of article 15 of the constitution of the
13       state of Kansas at the general election in November 1986, or (B) have
14       approved a proposition to allow sales of alcoholic liquor by the individual
15       drink in public places within the county at an election pursuant to K.S.A.
16       41-2646 section 122, and amendments thereto; and
17             (2) have not approved a proposition to prohibit such sales of alcoholic
18       liquor in such places at a subsequent election pursuant to K.S.A. 41-2646
19       section 122, and amendments thereto.
20             (b) A drinking establishment shall be required to derive from sales
21       of food for consumption on the licensed premises not less than 30% of
22       all the establishment's gross receipts from sales of food and beverages on
23       such premises unless the licensed premises are located in a county where
24       the qualified electors of the county:
25             (1) Have approved, at an election pursuant to K.S.A. 41-2646 section
26       122, and amendments thereto, a proposition to allow sales of alcoholic
27       liquor by the individual drink in public places within the county without
28       a requirement that any portion of their gross receipts be derived from
29       the sale of food; and
30             (2) have not approved a proposition to prohibit such sales of alcoholic
31       liquor in such places at a subsequent election pursuant to K.S.A. 41-2646
32       section 122, and amendments thereto.
33             (c) A drinking establishment shall specify in the application for a li-
34       cense or renewal of a license the premises to be licensed, which may
35       include all premises which are in close proximity and are under the con-
36       trol of the applicant or licensee.
37             (d) Notwithstanding any other provision of law to the contrary, any
38       hotel of which the entire premises are licensed as a drinking establish-
39       ment or as a drinking establishment/caterer may sell alcoholic liquor or
40       cereal malt beverage by means of minibars located in guest rooms of such
41       hotel, subject to the following:
42             (1) The key, magnetic card or other device required to attain access
43       to a minibar in a guest room shall be provided only to guests who are

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  1       registered to stay in such room and who are 21 or more years of age;
  2             (2) containers or packages of spirits or wine sold by means of a min-
  3       ibar shall hold not less than 50 nor more than 200 milliliters; and
  4             (3) a minibar shall be restocked with alcoholic liquor or cereal malt
  5       beverage only during hours when the hotel is permitted to sell alcoholic
  6       liquor and cereal malt beverage as a drinking establishment.
  7             Sec.  119. K.S.A. 41-2643 is hereby amended to read as follows: 41-
  8       2643. (a) A caterer's license shall allow the licensee to offer for sale, sell
  9       and serve alcoholic liquor for consumption on unlicensed premises, which
10       may be open to the public, but only if such premises are located in a
11       county where the qualified electors of the county:
12             (1)  (A) Approved, by a majority vote of those voting thereon, the
13       proposition to amend section 10 of article 15 of the constitution of the
14       state of Kansas at the general election in November, 1986, or (B) have
15       approved a proposition to allow sales of alcoholic liquor by the individual
16       drink in public places within the county at an election pursuant to K.S.A.
17       41-2646 section 122, and amendments thereto; and
18             (2) have not approved a proposition to prohibit such sales of alcoholic
19       liquor in such places at a subsequent election pursuant to K.S.A. 41-2646
20       section 122, and amendments thereto.
21             (b) A caterer shall be required to derive from sales of food at catered
22       events not less than 30% of the caterer's gross receipts from all sales of
23       food and beverages at catered events in a 12-month period unless the
24       caterer offers for sale, sells and serves alcoholic liquor only in counties
25       where the qualified electors of the county:
26             (1) Have approved, at an election pursuant to K.S.A. 41-2646 section
27       122, and amendments thereto, a proposition to allow sales of alcoholic
28       liquor by the individual drink in public places within the county without
29       a requirement that any portion of their gross receipts be derived from
30       the sale of food; and
31             (2) have not approved a proposition to prohibit such sales of alcoholic
32       liquor in such places at a subsequent election pursuant to K.S.A. 41-2646
33       section 122, and amendments thereto.
34             (c) Each caterer shall maintain the caterer's principal place of busi-
35       ness in a county in this state where the caterer is authorized by this section
36       to sell alcoholic liquor by the individual drink in a public place. All records
37       of the caterer relating to the caterer's licensed business and the caterer's
38       license shall be kept at such place of business. The caterer's principal
39       place of business shall be stated in the application for a caterer's license
40       and the caterer shall notify the director of any change in its location within
41       10 days after such change.
42             (d) A caterer shall notify the director at least 10 days prior to any
43       event at which the caterer will sell alcoholic liquor by the individual drink

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  1       unless the director waives the 10-day requirement for good cause shown.
  2       In addition, prior to the event, the caterer shall notify:
  3             (1) The police chief of the city where the event will take place, if the
  4       event will take place within the corporate limits of a city; or
  5             (2) the county sheriff of the county where the event will take place,
  6       if the event will be outside the corporate limits of any city.
  7             (e) A caterer may rebate a portion of the caterer's receipts from the
  8       sale of alcoholic liquor at an event to the person or organization contract-
  9       ing with the caterer to sell alcoholic liquor at such event.
10             New Sec.  120. A license for a drinking establishment/caterer shall
11       allow the licensee all the rights and privileges of a holder of a drinking
12       establishment license and of a licensed caterer, subject to all provisions
13       of law relating to such an establishment or caterer.
14             Sec.  121. K.S.A. 41-2645 is hereby amended to read as follows: 41-
15       2645. (a) A temporary liquor-by-the-drink permit shall allow the permit
16       holder to offer for sale, sell and serve alcoholic liquor for consumption
17       on unlicensed premises, which may be open to the public, subject to the
18       terms of such permit.
19             (b) The director may issue a temporary liquor-by-the-drink permit to
20       any one or more persons or organizations applying for such a permit, in
21       accordance with rules and regulations of the secretary. The permit shall
22       be issued in the names of the persons or organizations to which it is issued.
23             (c) Applications for temporary liquor-by-the-drink permits shall be
24       required to be filed with the director not less than 14 days before the
25       event for which the permit is sought unless the director waives such re-
26       quirement for good cause. Each application shall state the purposes for
27       which the proceeds of the event will be used. The application shall be
28       upon a form prescribed and furnished by the director and shall be filed
29       with the director in duplicate. Each application shall be accompanied by
30       a permit fee of $25 for each day for which the permit is issued, which
31       fee shall be paid by a certified or cashier's check of a bank within this
32       state, United States post office money order or cash in the full amount
33       thereof. All permit fees collected by the director pursuant to this section
34       shall be remitted to the state treasurer, who shall deposit the entire
35       amount in the state treasury and credit it to the state general fund.
36             (d) Temporary liquor-by-the-drink permits shall specify the premises
37       for which they are issued and shall be issued only for premises where the
38       city, county or township zoning code, if applicable, allows use for which
39       the permit is issued. No temporary permit shall be issued for premises
40       which are not located in a county where the qualified electors of the
41       county:
42             (1)  (A) Approved, by a majority vote of those voting thereon, to adopt
43       the proposition amending section 10 of article 15 of the constitution of

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  1       the state of Kansas at the general election in November, 1986; or (B) have
  2       approved a proposition to allow the sale of liquor by the individual drink
  3       in public places within the county at an election pursuant to K.S.A. 41-
  4       2646 section 122, and amendments thereto; and
  5             (2) have not approved a proposition to prohibit such sales of alcoholic
  6       liquor in such places at a subsequent election pursuant to K.S.A. 41-2646
  7       section 122 and amendments thereto.
  8             (e) A temporary liquor-by-the-drink permit shall be issued for a pe-
  9       riod of time not to exceed three consecutive days, the dates and hours of
10       which shall be specified in the permit. Not more than four temporary
11       permits may be issued to any one applicant in a calendar year.
12             (f) All proceeds from an event for which a temporary liquor-by-the-
13       drinkpermit is issued shall be used only for the purposes stated in the
14       application for such permit.
15             (g) A temporary liquor-by-the-drink permit shall not be transferable
16       or assignable.
17             (h) The director may refuse to issue a temporary liquor-by-the-drink
18       permit to any person or organization which has violated any provision of
19       the Kansas liquor control act, the drinking establishment this act or K.S.A.
20       79-41a01 et seq., and amendments thereto.
21             Sec.  122. K.S.A. 41-2646 is hereby amended to read as follows: 41-
22       2646. (a) The board of county commissioners may, by resolution, or shall,
23       upon a petition filed in accordance with subsection (b), submit to the
24       qualified electors of the county at any state general election a proposition
25       to:
26             (1) Prohibit the sale of alcoholic liquor by the individual drink in
27       public places within the county;
28             (2) permit the sale of alcoholic liquor by the individual drink in public
29       places within the county which derive not less than 30% of their gross
30       receipts from the sale of food for consumption on the premises; or
31             (3) permit the sale of alcoholic liquor by the individual drink in public
32       places within the county without a requirement that any portion of their
33       gross receipts be derived from the sale of food.
34             (b) A petition to submit a proposition to the qualified voters of a
35       county pursuant to this section shall be filed with the county election
36       officer. The petition shall be signed by qualified electors of the county
37       equal in number to not less than 10% of the electors of the county who
38       voted for the office of secretary of state at the last preceding general
39       election at which such office was elected. The appropriate version follow-
40       ing shall appear on the petition:
41             "We request an election to determine whether the sale of alcoholic liquor by the individual
42       drink in ________  county shall be (prohibited in public places) (allowed in public
43       places where at least 30% of the gross receipts are from sales of food for consumption on

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  1       the premises) (allowed in public places without a requirement that any portion of their gross
  2       receipts be from sales of food)."
  3             (c) Upon the adoption of a resolution or the submission of a valid
  4       petition calling for an election pursuant to this section, the county election
  5       officer shall cause the appropriate version of the following proposition to
  6       be placed on the ballot at the next succeeding state general election which
  7       occurs more than 90 days after the resolution is adopted or the petition
  8       is filed with the county election officer:
  9             "Shall sale of alcoholic liquor by the individual drink in ________  county be (pro-
10       hibited in public places) (allowed in public places where at least 30% of the gross receipts
11       are from sales of food for consumption on the premises and prohibited in all other public
12       places) (allowed in public places without a requirement that any portion of their gross
13       receipts be from sales of food)?"
14             (d) If a majority of the votes cast and counted is in favor of the prop-
15       osition, the county election officer shall transmit a copy of the results to
16       the director, who shall issue or refuse to issue temporary permits and
17       licenses for drinking establishments and caterers within the county ac-
18       cordingly and the rights of licensees holding licenses on the date of the
19       election shall be modified in accordance with the result of the election
20       as provided by rules and regulations of the secretary.
21             (e) The election provided for by this section shall be conducted, and
22       the votes counted and canvassed, in the manner provided by law for
23       question submitted elections of the county.
24             Sec.  123. K.S.A. 41-2647 is hereby amended to read as follows: 41-
25       2647. (a) Nothing in the club and drinking establishment this act shall be
26       construed to prohibit a person from possessing, on premises licensed
27       pursuant to such act as a club or drinking establishment, alcoholic liquor
28       or cereal malt beverage not purchased from the licensee.
29             (b) Nothing in this act shall be construed to prohibit a person from
30       possessing, on the premises of an event catered by the holder of a caterer's
31       license or premises which are the subject of a temporary liquor-by-the-
32       drink permit, alcoholic liquor or cereal malt beverage not purchased from
33       the licensee or permit holder.
34             (b) (c) Nothing in this section shall prevent a licensee: (1) The holder
35       of a club or drinking establishment from adopting a policy prohibiting the
36       possession, on the licensee's licensed premises, of alcoholic liquor or ce-
37       real malt beverage not purchased from the licensee; (2) the holder of a
38       caterer's license from adopting a policy prohibiting the possession, on the
39       premises of an event catered by the licensee, of alcoholic liquor or cereal
40       malt beverage not purchased from the licensee; or (3) the holder of a
41       temporary liquor-by-the-drink permit from adopting a policy prohibiting
42       the possession, on premises which are the subject of the permit, of alco-
43       holic liquor or cereal malt beverage not purchased from the permittee.

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  1             Sec.  124. K.S.A. 41-2651 is hereby amended to read as follows: 41-
  2       2651. (a) When application for licensure or renewal of licensure as a club
  3       or drinking establishment is received by the director, the director shall
  4       notify the governing body of the city or county where the premises to be
  5       licensed are located, if such governing body requests such notification.
  6             (b) No such license or renewal shall be granted by the director until
  7       the expiration of at least 10 days from the time of filing the application
  8       for licensure or renewal with the director, during which period the gov-
  9       erning body of any city or county notified pursuant to subsection (a) may
10       request the director to hold a hearing on the granting or refusal to grant
11       such license or renewal. The hearing on the application shall be con-
12       ducted in accordance with the provisions of the Kansas administrative
13       procedure act as provided in K.S.A. 41-2609 sections 36 through 39, and
14       amendments thereto.
15             (c) At such hearing the governing body of such city or county shall
16       have the right to appear before the director and present testimony and
17       evidence and make recommendations regarding the granting or refusal
18       to grant such license or renewal. In determining whether to grant or to
19       refuse to grant such license or renewal, the director shall take into con-
20       sideration the testimony and evidence and recommendations of the gov-
21       erning body of such city or county. The director may refuse to grant such
22       license or renewal based on the evidence gathered at such hearing.
23             (d) This section shall be part of and supplemental to the club and
24       drinking establishment act.
25             New Sec.  125. (a) For the purpose of protecting the public health,
26       safety and welfare, the governing body of any city may regulate the sale
27       of alcoholic liquor by the issuance of local licenses to persons selling
28       alcoholic liquor at retail, class A or B clubs, drinking establishments, ca-
29       terers and temporary permit holders. Upon adoption of an ordinance by
30       the governing body of a city which requires the issuance of a license as
31       authorized by this section, no person shall sell alcoholic liquor within the
32       corporate limits of the city unless such person holds a valid license issued
33       by such city.
34             The board of county commissioners of any county may regulate the
35       sale of alcoholic liquor outside the corporate limits of cities by the issu-
36       ance of local licenses to class A or B clubs, drinking establishments, ca-
37       terers and temporary permit holders. Upon adoption of a resolution by
38       the board of county commissioners of any county which requires the
39       issuance of a license as authorized by this section, no person shall sell
40       alcoholic liquor outside the corporate limits of cities within such county
41       unless such person holds a valid license issued by such county.
42             (b) On and after July 1, 1999, and upon payment of the fee authorized
43       by subsection (e), any person who is qualified to be licensed under the

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  1       liquor control act shall qualify for the issuance of a license issued by a
  2       city or county under the provisions of this section. A person who does not
  3       hold a valid state license or whose state license is under suspension shall
  4       not be issued a license pursuant to this section.
  5             (c)  (1) On and after July 1, 1999, the governing body of any city and
  6       the board of county commissioners of any county which issues a license
  7       under the provisions of this section may adopt operating standards for
  8       such licensees.
  9             (2) Operating standards may include, but shall not be limited to:
10             (A) Employee requirements, including residency and training
11       requirements;
12             (B) conduct in and around the licensed premises;
13             (C) zoning;
14             (D) security requirements;
15             (E) hours of operation;
16             (F) building code requirements; and
17             (G) advertising, subject to the provisions of paragraph (3)(B) of this
18       subsection.
19             (3) Operating standards shall not include:
20             (A) Pricing restrictions;
21             (B) advertising content;
22             (C) brand blocking; and
23             (D) trade practices.
24             (d) On or after July 1, 1999, the governing body of any city and the
25       board of county commissioners of any county may suspend, restrict or
26       revoke the license of any licensee who violates operating standards
27       adopted pursuant to the provisions of this section. The suspension or
28       revocation of a license issued by the state under the liquor control act
29       shall be deemed to be a suspension or revocation of a license issued by
30       a city or county.
31             (e) The governing body of a city and the board of county commis-
32       sioners of a county may impose a fee for a local license issued pursuant
33       to this section. Such fee shall be in lieu of and shall not exceed the oc-
34       cupational tax established pursuant to section 28, and amendments
35       thereto.
36             (f) This section is enabling legislation for the enactment of operating
37       standards by cities and counties for the protection of the public health,
38       safety and welfare. This section is not intended to prevent the enactment
39       or enforcement of additional or supplemental laws and regulations con-
40       cerning operating standards which are not in conflict with the provisions
41       of this section or other provisions of this act.
42             Sec.  126. K.S.A. 41-2701 is hereby amended to read as follows: 41-
43       2701. (a) K.S.A. 41-2701 through 41-2708, 41-2708a, 41-2709, 41-2711,

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  1       41-2712, 41-2722 and 41-2725 shall be known and may be cited as the
  2       cereal malt beverage act.
  3             (b) As used in this act unless the context otherwise requires:
  4             (a) (1) "Cereal malt beverage" means any fermented but undistilled
  5       liquor brewed or made from malt or from a mixture of malt or malt
  6       substitute, but does not include any such liquor which is more than 3.2%
  7       alcohol by weight.
  8             (b) (2) "Director" means the director of alcoholic beverage control
  9       of the department of revenue.
10             (c) (3) "Manufacturer" means a manufacturer as defined by K.S.A.
11       41-102 section 3, and amendments thereto.
12             (d) (4) "Person" means any individual, firm, partnership, corporation
13       or association.
14             (e) (5) "Retailer" means any person who sells or offers for sale any
15       cereal malt beverage for use or consumption and not for resale in any
16       form.
17             (f) (6) "Place of business" means any place at which cereal malt bev-
18       erages are sold.
19             (g) (7) "Distributor" means a beer distributor licensed pursuant to
20       the Kansas liquor control act.
21             (h) (8) "Legal age for consumption of cereal malt beverage" means
22       21 years of age, except that "legal age for consumption of cereal malt
23       beverage" shall mean 18 years of age if at any time the provisions of P.L.
24       98-363 penalizing states for permitting persons under 21 years of age to
25       consume cereal malt beverage are repealed or otherwise invalidated or
26       nullified.
27             Sec.  127. K.S.A. 41-2702 is hereby amended to read as follows: 41-
28       2702. (a) No retailer shall sell any cereal malt beverage without having
29       first secured a license for each place of business as herein provided. In
30       case such place of If such business is located within the corporate limits
31       of a city, the application for license shall be made to the governing body
32       of such city. In all other cases, the application for license shall be made
33       to the board of county commissioners in the county in which such place
34       of business is to be located, except that. The application for license to sell
35       on railway cars shall be made to the director as hereinafter provided.
36             (b) A board of county commissioners shall not issue or renew a re-
37       tailer's license without giving the clerk of the township where the place
38       of business is to be located written notice by registered mail of the filing
39       of the application for licensure or renewal. The township board may,
40       within 10 days of such notice, may file advisory recommendations as to
41       the granting of such license or renewal and. Such advisory recommen-
42       dations shall be considered by the board of county commissioners before
43       such license is issued. If an original license is granted and issued, the

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  1       board of county commissioners shall grant and issue renewals thereof
  2       upon application of the license holder, if the license holder is qualified
  3       to receive the same and the license has not been revoked as provided by
  4       law.
  5             (c) An application for a retailer's license shall be verified and upon a
  6       form prepared by the attorney general of the state and shall contain:
  7             (1) The name and residence of the applicant;
  8             (2) the length of time that the applicant has resided within the state
  9       of Kansas;
10             (3) the particular place of business for which a license is desired;
11             (4) the name of the owner of the premises upon which the place of
12       business is located; and
13             (5) a statement that the applicant is a citizen of the United States and
14       not less than 21 years of age and that the applicant has not within two
15       years immediately preceding the date of making application been con-
16       victed of a felony, any crime involving moral turpitude, drunkenness, driv-
17       ing a motor vehicle while under the influence of intoxicating liquor or
18       violation of any other intoxicating liquor law of any state or of the United
19       States.
20             (d) In addition to the fee provided by subsection (e), each application
21       for a retailer's license to sell cereal malt beverages for consumption on
22       the licensed premises shall be accompanied by a fee as follows:
23             (1) For licensure of a place of business other than a railway car, a fee
24       of not less than $25 nor more than $200, as prescribed by the board of
25       county commissioners or the governing body of the city, as the case may
26       be; and
27             (2) for licensure to sell on railway cars, a fee of $100.
28             (e) Each applicant for a retailer's license or renewal of such a license
29       shall submit to the director a copy of the completed application for such
30       license or license renewal, together with a fee of $25. Upon receipt of
31       such application, the director shall authorize a state stamp to be affixed
32       to the license. No such stamp shall be affixed to any license except such
33       stamps as provided by the director and no retailer's license shall be issued
34       or renewed unless such stamp has first been affixed thereto.
35             (f) The director shall remit to the state treasurer all fees collected by
36       the director hereunder, and the state treasurer shall credit the same to
37       the state general fund, except that the director may provide for the de-
38       posit in the cereal malt beverage tax refund fund of such amounts as
39       necessary for the refund of any license fees collected hereunder.
40             (g) The board of county commissioners of the several counties or the
41       governing body of a city shall issue a license upon application duly made
42       as otherwise provided for herein, to any retailer engaged in business in
43       such county or city and qualified to receive such license, to sell only cereal

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  1       malt beverages in original and unopened containers, and not for con-
  2       sumption on the premises. The annual license fee for such license, which
  3       shall be in addition to the fee provided by subsection (e), shall be not less
  4       than $25 nor more than $50.
  5             (h) No license issued under this act shall be transferable.
  6             (i)  (1) The governing body of any city and the board of county com-
  7       missioners of any county which issues a license under the provisions of
  8       this section may adopt operating standards for such licensees.
  9             (2) Operating standards may include, but shall not be limited to:
10             (A) Employee requirements, including residency and training
11       requirements;
12             (B) conduct in and around the licensed premises;
13             (C) zoning;
14             (D) security requirements;
15             (E) hours of operation;
16             (F) building code requirements; and
17             (G) advertising, subject to the provisions of paragraph (3)(B) of this
18       subsection.
19             (3) Operating standards shall not include:
20             (A) Pricing restrictions;
21             (B) advertising content;
22             (C) brand blocking; and
23             (D) trade practices.
24             (4) The governing body of any city and the board of county commis-
25       sioners of any county may suspend, restrict or revoke the license of any
26       licensee who violates operating standards established pursuant to the pro-
27       visions of this section.
28             Sec.  128. K.S.A. 41-2705 is hereby amended to read as follows: 41-
29       2705. (a) Except to the extent permitted pursuant to K.S.A. 41-703 section
30       73,and amendments thereto, no retailer, or any officer, associate, mem-
31       ber, representative or agent thereof, shall accept, receive or borrow
32       money or anything else of value, or accept or receive credit, directly or
33       indirectly, from: (1) Any manufacturer or distributor; (2) any person con-
34       nected with, in any way representing or a member of the family of a
35       manufacturer or distributor; (3) any stockholders in a manufacturer or
36       distributor; or (4) any officer, manager, agent or representative of a man-
37       ufacturer or distributor.
38             (b) Any licensee who shall permit or assent, or be a party in any way,
39       to any violation or infringement of the provisions of this section or of
40       K.S.A. 41-702 or 41-703 section 72 or 73, and amendments thereto, shall
41       be deemed guilty of a violation of this act, and any money loaned contrary
42       to a provision of this section shall not be recovered, or any note, mortgage
43       or other evidence of indebtedness, or security, or any lease or contract

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  1       obtained or made contrary to this act shall be unenforceable and void.
  2             Sec.  129. K.S.A. 41-2722 is hereby amended to read as follows: 41-
  3       2722. (a) No retailer, or employee or agent of a retailer, licensed to sell
  4       cereal malt beverage for consumption on the licensed premises shall:
  5             (1) Offer or serve any free cereal malt beverage to any person;
  6             (2) offer or serve to any person a drink at a price that is less than the
  7       acquisition cost of the drink to the licensee;
  8             (3) sell, offer to sell or serve to any person an unlimited number of
  9       drinks during any set period of time for a fixed price, except at private
10       functions not open to the general public;
11             (4) sell, offer to sell or serve any drink to any person at any time at a
12       price less than that charged the general public on that day, except at
13       private functions not open to the general public;
14             (5) increase the size of a drink of cereal malt beverage without in-
15       creasing proportionately the price regularly charged for the drink on that
16       day;
17             (6) encourage or permit, on the licensed premises, any game or con-
18       test which involves drinking cereal malt beverage or the awarding of
19       drinks as prizes; or
20             (7) advertise or promote in any way, whether on or off the licensed
21       premises, any of the practices prohibited under subsections (a)(1) through
22       (6).
23             (b) Nothing in subsection (a) shall be construed to prohibit a retailer
24       from offering free food or entertainment at any time.
25             (c) Violation of any provisions of this section is a misdemeanor pun-
26       ishable as provided by K.S.A. 41-2711, and amendments thereto.
27             (d) Violation of any provision of this act shall be grounds for suspen-
28       sion or revocation of the retailer's license as provided by K.S.A. 41-2708,
29       and amendments thereto.
30             (e) Every licensee subject to the provisions of this section shall make
31       available at any time upon request a price list showing the licensee's
32       current prices for all cereal malt beverages.
33             (f) As used in this section, "drink" means an individual serving of
34       cereal malt beverage.
35             (g) This section shall be part of and supplemental to K.S.A. 41-2701
36       through 41-2721, and amendments thereto.
37             Sec.  130. K.S.A. 1998 Supp. 19-101a is hereby amended to read as
38       follows: 19-101a. (a) The board of county commissioners may transact all
39       county business and perform all powers of local legislation and adminis-
40       tration it deems appropriate, subject only to the following limitations,
41       restrictions or prohibitions:
42             (1) Counties shall be subject to all acts of the legislature which apply
43       uniformly to all counties.

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  1             (2) Counties may not consolidate or alter county boundaries.
  2             (3) Counties may not affect the courts located therein.
  3             (4) Counties shall be subject to acts of the legislature prescribing
  4       limits of indebtedness.
  5             (5) In the exercise of powers of local legislation and administration
  6       authorized under provisions of this section, the home rule power con-
  7       ferred on cities to determine their local affairs and government shall not
  8       be superseded or impaired without the consent of the governing body of
  9       each city within a county which may be affected.
10             (6) Counties may not legislate on social welfare administered under
11       state law enacted pursuant to or in conformity with public law No. 271--
12       74th congress, or amendments thereof.
13             (7) Counties shall be subject to all acts of the legislature concerning
14       elections, election commissioners and officers and their duties as such
15       officers and the election of county officers.
16             (8) Counties shall be subject to the limitations and prohibitions im-
17       posed under K.S.A. 12-187 to 12-195, inclusive, and amendments thereto,
18       prescribing limitations upon the levy of retailers' sales taxes by counties.
19             (9) Counties may not exempt from or effect changes in statutes made
20       nonuniform in application solely by reason of authorizing exceptions for
21       counties having adopted a charter for county government.
22             (10) No county may levy ad valorem taxes under the authority of this
23       section upon real property located within any redevelopment area estab-
24       lished under the authority of K.S.A. 12-1772, and amendments thereto,
25       unless the resolution authorizing the same specifically authorized a por-
26       tion of the proceeds of such levy to be used to pay the principal of and
27       interest upon bonds issued by a city under the authority of K.S.A. 12-
28       1774, and amendments thereto.
29             (11) Counties shall have no power under this section to exempt from
30       any statute authorizing or requiring the levy of taxes and providing sub-
31       stitute and additional provisions on the same subject, unless the resolution
32       authorizing the same specifically provides for a portion of the proceeds
33       of such levy to be used to pay a portion of the principal and interest on
34       bonds issued by cities under the authority of K.S.A. 12-1774, and amend-
35       ments thereto.
36             (12) Counties may not exempt from or effect changes in the provi-
37       sions of K.S.A. 19-4601 to 19-4625, inclusive, and amendments thereto.
38             (13) Except as otherwise specifically authorized by K.S.A. 12-1,101
39       to 12-1,109, inclusive, and amendments thereto, counties may not levy
40       and collect taxes on incomes from whatever source derived.
41             (14) Counties may not exempt from or effect changes in K.S.A. 19-
42       430, and amendments thereto. Any charter resolution adopted by a
43       county prior to July 1, 1983, exempting from or effecting changes in

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  1       K.S.A. 19-430, and amendments thereto, is null and void.
  2             (15) Counties may not exempt from or effect changes in K.S.A. 19-
  3       302, 19-502b, 19-503, 19-805 or 19-1202, and amendments thereto.
  4             (16) Counties may not exempt from or effect changes in K.S.A. 13-
  5       13a26, and amendments thereto. Any charter resolution adopted by a
  6       county, prior to the effective date of this act, exempting from or effecting
  7       changes in K.S.A. 13-13a26, and amendments thereto, is null and void.
  8             (17) Counties may not exempt from or effect changes in K.S.A. 71-
  9       301, and amendments thereto. Any charter resolution adopted by a
10       county, prior to the effective date of this act, exempting from or effecting
11       changes in K.S.A. 71-301, and amendments thereto, is null and void.
12             (18) Counties may not exempt from or effect changes in K.S.A. 19-
13       15,139, 19-15,140 and 19-15,141, and amendments thereto. Any charter
14       resolution adopted by a county prior to the effective date of this act,
15       exempting from or effecting changes in such sections is null and void.
16             (19) Counties may not exempt from or effect changes in the provi-
17       sions of K.S.A. 12-1223, 12-1225, 12-1225a, 12-1225b, 12-1225c and 12-
18       1226, and amendments thereto, or the provisions of K.S.A. 1998 Supp.
19       12-1260 to 12-1270, inclusive, and amendments thereto, and 12-1276,
20       and amendments thereto.
21             (20) Counties may not exempt from or effect changes in the provi-
22       sions of K.S.A. 19-211, and amendments thereto.
23             (21) Counties may not exempt from or effect changes in the provi-
24       sions of K.S.A. 19-4001 to 19-4015, inclusive, and amendments thereto.
25             (22) Counties may not regulate the production or drilling of any oil
26       or gas well in any manner which would result in the duplication of reg-
27       ulation by the state corporation commission and the Kansas department
28       of health and environment pursuant to chapter 55 and chapter 65 of the
29       Kansas Statutes Annotated and any rules and regulations adopted pur-
30       suant thereto. Counties may not require any license or permit for the
31       drilling or production of oil and gas wells. Counties may not impose any
32       fee or charge for the drilling or production of any oil or gas well.
33             (23) Counties may not exempt from or effect changes in K.S.A. 79-
34       41a04, and amendments thereto.
35             (24) Counties may not exempt from or effect changes in K.S.A. 1998
36       Supp. 79-1611, and amendments thereto.
37             (25) Counties may not exempt from or effect changes in K.S.A. 1998
38       Supp. 79-1494, and amendments thereto.
39             (26) Counties may not exempt from or effect changes in subsection
40       (b) of K.S.A. 19-202, and amendments thereto.
41             (27) Counties may not exempt from or effect changes in subsection
42       (b) of K.S.A. 19-204, and amendments thereto.
43             (28) Counties may not levy or impose an excise, severance or any

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  1       other tax in the nature of an excise tax upon the physical severance and
  2       production of any mineral or other material from the earth or water. Any
  3       resolution adopted by any county prior to the effective date of this act
  4       imposing or levying any such tax is null and void.
  5             (29) Counties may not exempt from or effect changes in K.S.A. 79-
  6       2017 or 79-2101, and amendments thereto. Any charter resolution
  7       adopted prior to the effective date of this act, which affected the provi-
  8       sions of K.S.A. 79-2017 or 79-2101, and amendments thereto, is hereby
  9       declared to be null and void.
10             (30) Counties may not exempt from or effect changes in K.S.A. 2-
11       1915, 2-3302, 2-3305, 2-3307, 17-5904, 17-5908, 47-1219, 65-171d, 74-
12       5065, 74-5066, 74-8902, 74-8905 and 79-32,117, K.S.A. 1998 Supp. 2-
13       3318, 17-5909, 65-1,178 through 65-1,199 and 79-32,204, and
14       amendments thereto.
15             (31) Counties may not exempt from or effect changes in the liquor
16       control act, and amendments thereto.
17             (b) Counties shall apply the powers of local legislation granted in
18       subsection (a) by resolution of the board of county commissioners. If no
19       statutory authority exists for such local legislation other than that set forth
20       in subsection (a) and the local legislation proposed under the authority
21       of such subsection is not contrary to any act of the legislature, such local
22       legislation shall become effective upon passage of a resolution of the
23       board and publication in the official county newspaper. If the legislation
24       proposed by the board under authority of subsection (a) is contrary to an
25       act of the legislature which is applicable to the particular county but not
26       uniformly applicable to all counties, such legislation shall become effec-
27       tive by passage of a charter resolution in the manner provided in K.S.A.
28       19-101b, and amendments thereto.
29             (c) Any resolution adopted by a county which conflicts with the re-
30       strictions of subsection (a) is null and void.
31             Sec.  131. K.S.A. 1998 Supp. 8-241 is hereby amended to read as
32       follows: 8-241. (a) Except as provided in K.S.A. 8-2,125 through 8-2,142,
33       and amendments thereto, any person licensed to operate a motor vehicle
34       in this state shall submit to an examination whenever: (1) The division of
35       vehicles has good cause to believe that such person is incompetent or
36       otherwise not qualified to be licensed; or (2) the division of vehicles has
37       suspended such person's license pursuant to K.S.A. 8-1014, and amend-
38       ments thereto, as the result of a test refusal, test failure or conviction for
39       a violation of K.S.A. 8-1567, and amendments thereto, or a violation of
40       city ordinance or county resolution prohibiting the acts prohibited by
41       K.S.A. 8-1567, and amendments thereto, except that no person shall have
42       to submit to and successfully complete an examination more than once
43       as the result of separate suspensions arising out of the same occurrence.

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  1             (b) When a person is required to submit to an examination pursuant
  2       to subsection (a)(1), the fee for such examination shall be in the amount
  3       provided by K.S.A 8-240, and amendments thereto. When a person is
  4       required to submit to an examination pursuant to subsection (a)(2), the
  5       fee for such examination shall be $5. In addition, any person required to
  6       submit to an examination pursuant to subsection (a)(2) shall be required,
  7       at the time of examination, to pay a reinstatement fee of $50. All exami-
  8       nation fees collected pursuant to this section shall be disposed of as pro-
  9       vided in K.S.A. 8-267, and amendments thereto. All reinstatement fees
10       collected pursuant to this section shall be remitted to the state treasurer,
11       who shall deposit the entire amount in the state treasury and credit 50%
12       to the community alcoholism and intoxication programs fund created pur-
13       suant to K.S.A. 41-1126 section 107, and amendments thereto, 20% to
14       the juvenile detention facilities fund created by K.S.A. 79-4803, and
15       amendments thereto, 20% to the forensic laboratory and materials fee
16       fund cited in K.S.A. 28-176, and amendments thereto, and 10% to the
17       driving under the influence equipment fund created by K.S.A. 75-5660,
18       and amendments thereto. Moneys credited to the forensic laboratory and
19       materials fee fund as provided herein shall be used to supplement existing
20       appropriations and shall not be used to supplant general fund appropri-
21       ations to the Kansas bureau of investigation.
22             (c) When an examination is required pursuant to subsection (a), at
23       least five days' written notice of the examination shall be given to the
24       licensee. The examination administered hereunder shall be at least equiv-
25       alent to the examination required by subsection (e) of K.S.A. 8-247, and
26       amendments thereto, with such additional tests as the division deems
27       necessary. Upon the conclusion of such examination, the division shall
28       take action as may be appropriate and may suspend or revoke the license
29       of such person or permit the licensee to retain such license, or may issue
30       a license subject to restrictions as permitted under K.S.A. 8-245, and
31       amendments thereto.
32             (d) Refusal or neglect of the licensee to submit to an examination as
33       required by this section shall be grounds for suspension or revocation of
34       the license.
35             Sec.  132. K.S.A. 1998 Supp. 8-1599 is hereby amended to read as
36       follows: 8-1599. (a) As used in this section, "alcoholic beverage" means
37       any alcoholic liquor, as defined by K.S.A. 41-102 and amendments
38       thereto, or any or cereal malt beverage, as defined by K.S.A. 41-2701
39       section 3, and amendments thereto.
40             (b) No person shall transport in any vehicle upon a highway or street
41       any alcoholic beverage unless such beverage is:
42             (1) In the original unopened package or container, the seal of which
43       has not been broken and from which the original cap, cork or other means

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  1       of closure has not been removed;
  2             (2) in the locked rear trunk or rear compartment, or any locked out-
  3       side compartment which is not accessible to any person in the vehicle
  4       while it is in motion; or
  5             (3) in the exclusive possession of a passenger in a vehicle which is a
  6       recreational vehicle, as defined by K.S.A. 75-1212, and amendments
  7       thereto, or a bus, as defined by K.S.A. 8-1406, and amendments thereto,
  8       who is not in the driving compartment of such vehicle or who is in a
  9       portion of such vehicle from which the driver is not directly accessible.
10             (c) Violation of this section is a misdemeanor punishable by a fine of
11       not more than $200 or by imprisonment for not more than six months,
12       or both.
13             (d) Except as provided in subsection (f) upon conviction or adjudi-
14       cation of a second or subsequent violation of this section, the judge, in
15       addition to any other penalty or disposition ordered pursuant to law, shall
16       suspend the person's driver's license or privilege to operate a motor ve-
17       hicle on the streets and highways of this state for one year.
18             (e) Upon suspension of a license pursuant to this section, the court
19       shall require the person to surrender the license to the court, which shall
20       transmit the license to the division of motor vehicles of the department
21       of revenue, to be retained until the period of suspension expires. At that
22       time, the licensee may apply to the division for return of the license. If
23       the license has expired, the person may apply for a new license, which
24       shall be issued promptly upon payment of the proper fee and satisfaction
25       of other conditions established by law for obtaining a license unless an-
26       other suspension or revocation of the person's privilege to operate a motor
27       vehicle is in effect.
28             (f) As used in this section, "highway" and "street" have the meanings
29       provided by K.S.A. 8-1424 and 8-1473, and amendments thereto.
30             (g) In lieu of suspending the driver's license or privilege to operate a
31       motor vehicle on the highways of this state of any person convicted of
32       violating this section, as provided in subsection (d), the judge of the court
33       in which such person was convicted may enter an order which places
34       conditions on such person's privilege of operating a motor vehicle on the
35       highways of this state, a certified copy of which such person shall be
36       required to carry any time such person is operating a motor vehicle on
37       the highways of this state. Any such order shall prescribe the duration of
38       the conditions imposed, which in no event shall be for a period of more
39       than one year for a second violation.
40             Upon entering an order restricting a person's license hereunder, the
41       judge shall require such person to surrender such person's driver's license
42       to the judge who shall cause it to be transmitted to the division of vehicles,
43       together with a copy of the order. Upon receipt thereof, the division of

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  1       vehicles shall issue without charge a driver's license which shall indicate
  2       on its face that conditions have been imposed on such person's privilege
  3       of operating a motor vehicle and that a certified copy of the order im-
  4       posing such conditions is required to be carried by the person for whom
  5       the license was issued any time such person is operating a motor vehicle
  6       on the highways of this state. If the person convicted is a nonresident,
  7       the judge shall cause a copy of the order to be transmitted to the division
  8       and the division shall forward a copy of it to the motor vehicle adminis-
  9       trator, of such person's state of residence. Such judge shall furnish to any
10       person whose driver's license has had conditions imposed on it under this
11       section a copy of the order, which shall be recognized as a valid Kansas
12       driver's license until such time as the division shall issue the restricted
13       license provided for in this section.
14             Upon expiration of the period of time for which conditions are imposed
15       pursuant to this subsection, the licensee may apply to the division for the
16       return of the license previously surrendered by such licensee. In the event
17       such license has expired, such person may apply to the division for a new
18       license, which shall be issued immediately by the division upon payment
19       of the proper fee and satisfaction of the other conditions established by
20       law, unless such person's privilege to operate a motor vehicle on the
21       highways of this state has been suspended or revoked prior thereto. If
22       any person shall violate any of the conditions imposed under this subsec-
23       tion, such person's driver's license or privilege to operate a motor vehicle
24       on the highways of this state shall be revoked for a period of not less than
25       60 days nor more than one year by the judge of the court in which such
26       person is convicted of violating such conditions.
27             (h) It shall be an affirmative defense to any prosecution under this
28       section that an occupant of the vehicle other than the defendant was in
29       exclusive possession of the alcoholic liquor.
30             (i) The court shall report to the division every conviction of a violation
31       of this section or of a city ordinance or county resolution that prohibits
32       the acts prohibited by this section. Prior to sentencing under the provi-
33       sions of this section, the court shall request and shall receive from the
34       division a record of all prior convictions obtained against such person for
35       any violations of any of the motor vehicle laws of this state.
36             (j) For the purpose of determining whether a conviction is a first,
37       second or subsequent conviction in sentencing under this section:
38             (1) "Conviction" includes being convicted of a violation of an ordi-
39       nance of any city, or resolution of any county, which prohibits the acts
40       that this section prohibits;
41             (2) only convictions occurring in the immediately preceding five
42       years, including prior to the effective date of this act, shall be taken into
43       account, but the court may consider other prior convictions in determin-

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  1       ing the sentence to be imposed within the limits provided for a first,
  2       second or subsequent offender, whichever is applicable; and
  3             (3) it is irrelevant whether an offense occurred before or after con-
  4       viction for a previous offense.
  5             (k) This section shall not be construed as preventing any city from
  6       enacting ordinances, or any county from adopting resolutions, declaring
  7       acts prohibited by this section as unlawful or prohibited in such city or
  8       county and prescribing penalties for violation thereof, but such ordinance
  9       or resolution shall provide for suspension or restriction of driving privi-
10       leges as provided by this section and the convicting court shall be required
11       to report convictions for violations of such ordinance or resolution as
12       provided by subsection (i).
13             (l) This section shall be part of and supplemental to the uniform act
14       regulating traffic on highways.
15             Sec.  133. K.S.A. 1998 Supp. 8-2110 is hereby amended to read as
16       follows: 8-2110. (a) Failure to comply with a traffic citation means failure
17       either to (1) appear before any district or municipal court in response to
18       a traffic citation and pay in full any fine and court costs imposed or (2)
19       otherwise comply with a traffic citation as provided in K.S.A. 8-2118, and
20       amendments thereto. Failure to comply with a traffic citation is a mis-
21       demeanor, regardless of the disposition of the charge for which such
22       citation was originally issued.
23             (b) In addition to penalties of law applicable under subsection (a),
24       when a person fails to comply with a traffic citation, except for illegal
25       parking, standing or stopping, the district or municipal court in which the
26       person should have complied with the citation shall mail notice to the
27       person that if the person does not appear in district or municipal court
28       or pay all fines, court costs and any penalties within 30 days from the date
29       of mailing, the division of vehicles will be notified to suspend the person's
30       driving privileges. Upon the person's failure to comply within such 30
31       days, the district or municipal court shall notify the division of vehicles.
32       Upon receipt of a report of a failure to comply with a traffic citation under
33       this subsection, pursuant to K.S.A. 8-255, and amendments thereto, the
34       division of vehicles shall notify the violator and suspend the license of the
35       violator until satisfactory evidence of compliance with the terms of the
36       traffic citation has been furnished the informing court. Upon such com-
37       pliance the informing court shall notify the division of vehicles and the
38       suspension or suspension action shall be terminated.
39             (c) Except as provided in subsection (d), when the district or munic-
40       ipal court notifies the division of vehicles of a failure to comply with a
41       traffic citation pursuant to subsection (b), the court shall assess a rein-
42       statement fee of $50 for each charge on which the person failed to make
43       satisfaction regardless of the disposition of the charge for which such

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  1       citation was originally issued. Such reinstatement fee shall be in addition
  2       to any fine, district or municipal court costs and other penalties. The court
  3       shall, at least monthly, remit all reinstatement fees to the state treasurer
  4       who shall credit 50% of such moneys to the division of vehicles operating
  5       fund, 37.5% to the community alcoholism and intoxication programs fund
  6       created by K.S.A. 41-1126 section 107, and amendments thereto, and
  7       12.5% to the juvenile detention facilities fund created by K.S.A. 79-4803,
  8       and amendments thereto.
  9             (d) The district court or municipal court shall waive the reinstatement
10       fee provided for in subsection (c), if the failure to comply with a traffic
11       citation was the result of such person enlisting in or being drafted into
12       the armed services of the United States, being called into service as a
13       member of a reserve component of the military service of the United
14       States, or volunteering for such active duty, or being called into service
15       as a member of the state of Kansas national guard, or volunteering for
16       such active duty, and being absent from Kansas because of such military
17       service. In any case of a failure to comply with a traffic citation which
18       occurred on or after August 1, 1990, and prior to the effective date of
19       this act, in which a person was assessed and paid a reinstatement fee and
20       the person failed to comply with a traffic citation because the person was
21       absent from Kansas because of any such military service, the reinstate-
22       ment fee shall be reimbursed to such person upon application therefor.
23       The state treasurer and the director of accounts and reports shall pre-
24       scribe procedures for all such reimbursement payments and shall create
25       appropriate accounts, make appropriate accounting entries and issue such
26       appropriate vouchers and warrants as may be required to make such re-
27       imbursement payments.
28             Sec.  134. K.S.A. 21-3610 is hereby amended to read as follows: 21-
29       3610. (a) Furnishing alcoholic liquor to a minor is directly or indirectly,
30       selling to, buying for, giving or furnishing any alcoholic liquor to any
31       minor.
32             (b) Furnishing alcoholic liquor to a minor is a class B person misde-
33       meanor for which the minimum fine is $200.
34             (c) As used in this section, terms have the meanings provided by
35       K.S.A. 41-102 and amendments thereto:
36             (1) "Alcoholic liquor" means any alcoholic liquor as defined by section
37       3, and amendments thereto, other than nonalcoholic malt beverage.
38             (2) "Minor" has the meaning provided by section 3, and amendments
39       thereto.
40             (d) It shall be a defense to a prosecution under this section if: (1) The
41       defendant is a licensed retailer, club, drinking establishment or caterer
42       or holds a temporary permit, or an employee thereof; (2) the defendant
43       sold the alcoholic liquor to the minor with reasonable cause to believe

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  1       that the minor was 21 or more years of age; and (3) to purchase the
  2       alcoholic liquor, the minor exhibited to the defendant a driver's license,
  3       Kansas nondriver's identification card or other official or apparently of-
  4       ficial document, containing a photograph of the minor and purporting to
  5       establish that such minor was 21 or more years of age.
  6             Sec.  135. K.S.A. 1998 Supp. 44-706 is hereby amended to read as
  7       follows: 44-706. An individual shall be disqualified for benefits:
  8             (a) If the individual left work voluntarily without good cause attrib-
  9       utable to the work or the employer, subject to the other provisions of this
10       subsection (a). After a temporary job assignment, failure of an individual
11       to affirmatively request an additional assignment on the next succeeding
12       workday, if required by the employment agreement, after completion of
13       a given work assignment, shall constitute leaving work voluntarily. The
14       disqualification shall begin the day following the separation and shall con-
15       tinue until after the individual has become reemployed and has had earn-
16       ings from insured work of at least three times the individual's weekly
17       benefit amount. An individual shall not be disqualified under this sub-
18       section (a) if:
19             (1) The individual was forced to leave work because of illness or injury
20       upon the advice of a licensed and practicing health care provider and,
21       upon learning of the necessity for absence, immediately notified the em-
22       ployer thereof, or the employer consented to the absence, and after re-
23       covery from the illness or injury, when recovery was certified by a prac-
24       ticing health care provider, the individual returned to the employer and
25       offered to perform services and the individual's regular work or compa-
26       rable and suitable work was not available; as used in this paragraph (1)
27       subsection (a) "health care provider" means any person licensed by the
28       proper licensing authority of any state to engage in the practice of med-
29       icine and surgery, osteopathy, chiropractic, dentistry, optometry, podiatry
30       or psychology;
31             (2) the individual left temporary work to return to the regular em-
32       ployer;
33             (3) the individual left work to enlist in the armed forces of the United
34       States, but was rejected or delayed from entry;
35             (4) the individual left work because of the voluntary or involuntary
36       transfer of the individual's spouse from one job to another job, which is
37       for the same employer or for a different employer, at a geographic loca-
38       tion which makes it unreasonable for the individual to continue work at
39       the individual's job;
40             (5) the individual left work because of hazardous working conditions;
41       in determining whether or not working conditions are hazardous for an
42       individual, the degree of risk involved to the individual's health, safety
43       and morals, the individual's physical fitness and prior training and the

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  1       working conditions of workers engaged in the same or similar work for
  2       the same and other employers in the locality shall be considered; as used
  3       in this paragraph (5) subsection (a), "hazardous working conditions"
  4       means working conditions that could result in a danger to the physical or
  5       mental well-being of the individual; each determination as to whether
  6       hazardous working conditions exist shall include, but shall not be limited
  7       to, a consideration of (A) the safety measures used or the lack thereof,
  8       and (B) the condition of equipment or lack of proper equipment; no work
  9       shall be considered hazardous if the working conditions surrounding the
10       individual's work are the same or substantially the same as the working
11       conditions generally prevailing among individuals performing the same
12       or similar work for other employers engaged in the same or similar type
13       of activity;
14             (6) the individual left work to enter training approved under section
15       236(a)(1) of the federal trade act of 1974, provided the work left is not
16       of a substantially equal or higher skill level than the individual's past
17       adversely affected employment (as defined for purposes of the federal
18       trade act of 1974), and wages for such work are not less than 80% of the
19       individual's average weekly wage as determined for the purposes of the
20       federal trade act of 1974;
21             (7) the individual left work because of unwelcome harassment of the
22       individual by the employer or another employee of which the employing
23       unit had knowledge;
24             (8) the individual left work to accept better work; each determination
25       as to whether or not the work accepted is better work shall include, but
26       shall not be limited to, consideration of (A) the rate of pay, the hours of
27       work and the probable permanency of the work left as compared to the
28       work accepted, (B) the cost to the individual of getting to the work left
29       in comparison to the cost of getting to the work accepted, and (C) the
30       distance from the individual's place of residence to the work accepted in
31       comparison to the distance from the individual's residence to the work
32       left;
33             (9) the individual left work as a result of being instructed or requested
34       by the employer, a supervisor or a fellow employee to perform a service
35       or commit an act in the scope of official job duties which is in violation
36       of an ordinance or statute;
37             (10) the individual left work because of a violation of the work agree-
38       ment by the employing unit and, before the individual left, the individual
39       had exhausted all remedies provided in such agreement for the settlement
40       of disputes before terminating; or
41             (11) after making reasonable efforts to preserve the work, the indi-
42       vidual left work due to a personal emergency of such nature and com-
43       pelling urgency that it would be contrary to good conscience to impose a

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  1       disqualification.
  2             (b) If the individual has been discharged for misconduct connected
  3       with the individual's work. The disqualification shall begin the day follow-
  4       ing the separation and shall continue until after the individual becomes
  5       reemployed and has had earnings from insured work of at least three
  6       times the individual's determined weekly benefit amount, except that if
  7       an individual is discharged for gross misconduct connected with the in-
  8       dividual's work, such individual shall be disqualified for benefits until such
  9       individual again becomes employed and has had earnings from insured
10       work of at least eight times such individual's determined weekly benefit
11       amount. In addition, all wage credits attributable to the employment from
12       which the individual was discharged for gross misconduct connected with
13       the individual's work shall be canceled. No such cancellation of wage
14       credits shall affect prior payments made as a result of a prior separation.
15             (1) For the purposes of this subsection (b), "misconduct" is defined
16       as a violation of a duty or obligation reasonably owed the employer as a
17       condition of employment. The term "gross misconduct" as used in this
18       subsection (b) shall be construed to mean conduct evincing extreme, will-
19       ful or wanton misconduct as defined by this subsection (b).
20             (2) For the purposes of this subsection (b), the use of or impairment
21       caused by an alcoholic beverage, a cereal malt beverage or a nonprescri-
22       bed controlled substance by an individual while working shall be conclu-
23       sive evidence of misconduct and the possession of an alcoholic beverage,
24       a cereal malt beverage or a nonprescribed controlled substance by an
25       individual while working shall be prima facie evidence of conduct which
26       is a violation of a duty or obligation reasonably owed to the employer as
27       a condition of employment. For purposes of this subsection (b), the dis-
28       qualification of an individual from employment which disqualification is
29       required by the provisions of the drug free workplace act, 41 U.S.C. 701
30       et seq. or is otherwise required by law because the individual refused to
31       submit to or failed a chemical test which was required by law, shall be
32       conclusive evidence of misconduct. Refusal to submit to a chemical test
33       administered pursuant to an employee assistance program or other drug
34       or alcohol treatment program in which the individual was participating
35       voluntarily or as a condition of further employment shall also be conclu-
36       sive evidence of misconduct."Alcoholic liquor" shall be defined as pro-
37       vided in K.S.A. 41-102 and amendments thereto. and "cereal malt bev-
38       erage" shall be defined as provided in K.S.A. 41-2701 section 3, and
39       amendments thereto. Controlled substance shall be defined as provided
40       in K.S.A. 65-4101, and amendments thereto of the uniform controlled
41       substances act. As used in this subsection (b)(2), "required by law" means
42       required by a federal or state law, a federal or state rule or regulation
43       having the force and effect of law, a county resolution or municipal or-

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  1       dinance, or a policy relating to public safety adopted in open meeting by
  2       the governing body of any special district or other local governmental
  3       entity. An individual's refusal to submit to a chemical test shall not be
  4       admissible evidence to prove misconduct unless the test is required by
  5       and meets the standards of the drug free workplace act, 41 U.S.C. 701
  6       et seq., the test was administered as part of an employee assistance pro-
  7       gram or other drug or alcohol treatment program in which the employee
  8       was participating voluntarily or as a condition of further employment, the
  9       test was otherwise required by law and the test constituted a required
10       condition of employment for the individual's job, or, there was probable
11       cause to believe that the individual used, possessed or was impaired by
12       an alcoholic beverage, a cereal malt beverage or a controlled substance
13       while working. The results of a chemical test shall not be admissible ev-
14       idence to prove misconduct unless the following conditions were met:
15             (A) Either (i) the test was required by law, the test was administered
16       pursuant to the drug free workplace act, 41 U.S.C. 701 et seq., (ii) the
17       test was administered as part of an employee assistance program or other
18       drug or alcohol treatment program in which the employee was partici-
19       pating voluntarily or as a condition of further employment, (iii) the test
20       was required by law and the test constituted a required condition of em-
21       ployment for the individual's job, or (iv) there was probable cause to
22       believe that the individual used, had possession of, or was impaired by
23       the alcoholic beverage, the cereal malt beverage or the controlled sub-
24       stance while working;
25             (B) the test sample was collected either (i) as prescribed by the drug
26       free workplace act, 41 U.S.C. 701 et seq., (ii) as prescribed by an em-
27       ployee assistance program or other drug or alcohol treatment program in
28       which the employee was participating voluntarily or as a condition of
29       further employment, (iii) as prescribed by a test which was required by
30       law and which constituted a required condition of employment for the
31       individual's job, or (iv) at a time contemporaneous with the events estab-
32       lishing probable cause;
33             (C) the collecting and labeling of the test sample was performed by
34       a licensed health care professional or any other individual authorized to
35       collect or label test samples by federal or state law, or a federal or state
36       rule or regulation having the force and effect of law, including law en-
37       forcement personnel;
38             (D) the test was performed by a laboratory approved by the United
39       States department of health and human services or licensed by the de-
40       partment of health and environment, except that a blood sample may be
41       tested for alcohol content by a laboratory commonly used for that purpose
42       by state law enforcement agencies;
43             (E) the test was confirmed by gas chromatography, gas chromatog-

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  1       raphy-mass spectroscopy or other comparably reliable analytical method,
  2       except that no such confirmation is required for a blood alcohol sample;
  3       and
  4             (F) the foundation evidence must establish, beyond a reasonable
  5       doubt, that the test results were from the sample taken from the individ-
  6       ual.
  7             (3) For the purposes of this subsection (b), misconduct shall include,
  8       but not be limited to repeated absence, including lateness, from sched-
  9       uled work if the facts show:
10             (A) The individual was absent without good cause;
11             (B) the absence was in violation of the employer's written absentee-
12       ism policy;
13             (C) the employer gave or sent written notice to the individual that
14       future absence will result in discharge; and
15             (D) the employee had knowledge of the employer's written absen-
16       teeism policy.
17             (4) An individual shall not be disqualified under this subsection (b)
18       if the individual is discharged under the following circumstances:
19             (A) The employer discharged the individual after learning the indi-
20       vidual was seeking other work or when the individual gave notice of future
21       intent to quit;
22             (B) the individual was making a good-faith effort to do the assigned
23       work but was discharged due to: (i) Inefficiency, (ii) unsatisfactory per-
24       formance due to inability, incapacity or lack of training or experience, (iii)
25       isolated instances of ordinary negligence or inadvertence, (iv) good-faith
26       errors in judgment or discretion, or (v) unsatisfactory work or conduct
27       due to circumstances beyond the individual's control; or
28             (C) the individual's refusal to perform work in excess of the contract
29       of hire.
30             (c) If the individual has failed, without good cause, to either apply
31       for suitable work when so directed by the employment office of the sec-
32       retary of human resources, or to accept suitable work when offered to
33       the individual by the employment office, the secretary of human re-
34       sources, or an employer, such disqualification shall begin with the week
35       in which such failure occurred and shall continue until the individual
36       becomes reemployed and has had earnings from insured work of at least
37       three times such individual's determined weekly benefit amount. In de-
38       termining whether or not any work is suitable for an individual, the sec-
39       retary of human resources, or a person or persons designated by the
40       secretary, shall consider the degree of risk involved to health, safety and
41       morals, physical fitness and prior training, experience and prior earnings,
42       length of unemployment and prospects for securing local work in the
43       individual's customary occupation or work for which the individual is rea-

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  1       sonably fitted by training or experience, and the distance of the available
  2       work from the individual's residence. Notwithstanding any other provi-
  3       sions of this act, an otherwise eligible individual shall not be disqualified
  4       for refusing an offer of suitable employment, or failing to apply for suit-
  5       able employment when notified by an employment office, or for leaving
  6       the individual's most recent work accepted during approved training, in-
  7       cluding training approved under section 236(a)(1) of the trade act of 1974,
  8       if the acceptance of or applying for suitable employment or continuing
  9       such work would require the individual to terminate approved training
10       and no work shall be deemed suitable and benefits shall not be denied
11       under this act to any otherwise eligible individual for refusing to accept
12       new work under any of the following conditions: (1) If the position offered
13       is vacant due directly to a strike, lockout or other labor dispute; (2) if the
14       remuneration, hours or other conditions of the work offered are substan-
15       tially less favorable to the individual than those prevailing for similar work
16       in the locality; (3) if as a condition of being employed, the individual would
17       be required to join or to resign from or refrain from joining any labor
18       organization.
19             (d) For any week with respect to which the secretary of human re-
20       sources, or a person or persons designated by the secretary, finds that the
21       individual's unemployment is due to a stoppage of work which exists be-
22       cause of a labor dispute or there would have been a work stoppage had
23       normal operations not been maintained with other personnel previously
24       and currently employed by the same employer at the factory, establish-
25       ment or other premises at which the individual is or was last employed,
26       except that this subsection (d) shall not apply if it is shown to the satis-
27       faction of the secretary of human resources, or a person or persons des-
28       ignated by the secretary, that: (1) The individual is not participating in or
29       financing or directly interested in the labor dispute which caused the
30       stoppage of work; and (2) the individual does not belong to a grade or
31       class of workers of which, immediately before the commencement of the
32       stoppage, there were members employed at the premises at which the
33       stoppage occurs any of whom are participating in or financing or directly
34       interested in the dispute. If in any case separate branches of work which
35       are commonly conducted as separate businesses in separate premises are
36       conducted in separate departments of the same premises, each such de-
37       partment shall, for the purpose of this subsection (d), be deemed to be
38       a separate factory, establishment or other premises. For the purposes of
39       this subsection (d), failure or refusal to cross a picket line or refusal for
40       any reason during the continuance of such labor dispute to accept the
41       individual's available and customary work at the factory, establishment or
42       other premises where the individual is or was last employed shall be
43       considered as participation and interest in the labor dispute.

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  1             (e) For any week with respect to which or a part of which the indi-
  2       vidual has received or is seeking unemployment benefits under the un-
  3       employment compensation law of any other state or of the United States,
  4       except that if the appropriate agency of such other state or the United
  5       States finally determines that the individual is not entitled to such un-
  6       employment benefits, this disqualification shall not apply.
  7             (f) For any week with respect to which the individual is entitled to
  8       receive any unemployment allowance or compensation granted by the
  9       United States under an act of congress to ex-service men and women in
10       recognition of former service with the military or naval services of the
11       United States.
12             (g) For the period of one year beginning with the first day following
13       the last week of unemployment for which the individual received benefits,
14       or for one year from the date the act was committed, whichever is the
15       later, if the individual, or another in such individual's behalf with the
16       knowledge of the individual, has knowingly made a false statement or
17       representation, or has knowingly failed to disclose a material fact to obtain
18       or increase benefits under this act or any other unemployment compen-
19       sation law administered by the secretary of human resources.
20             (h) For any week with respect to which the individual is receiving
21       compensation for temporary total disability or permanent total disability
22       under the workmen's compensation law of any state or under a similar
23       law of the United States.
24             (i) For any week of unemployment on the basis of service in an in-
25       structional, research or principal administrative capacity for an educa-
26       tional institution as defined in subsection (v) of K.S.A. 44-703, and
27       amendments thereto, if such week begins during the period between two
28       successive academic years or terms or, when an agreement provides in-
29       stead for a similar period between two regular but not successive terms
30       during such period or during a period of paid sabbatical leave provided
31       for in the individual's contract, if the individual performs such services in
32       the first of such academic years or terms and there is a contract or a
33       reasonable assurance that such individual will perform services in any
34       such capacity for any educational institution in the second of such aca-
35       demic years or terms.
36             (j) For any week of unemployment on the basis of service in any
37       capacity other than service in an instructional, research, or administrative
38       capacity in an educational institution, as defined in subsection (v) of
39       K.S.A. 44-703, and amendments thereto, if such week begins during the
40       period between two successive academic years or terms if the individual
41       performs such services in the first of such academic years or terms and
42       there is a reasonable assurance that the individual will perform such serv-
43       ices in the second of such academic years or terms, except that if benefits

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  1       are denied to the individual under this subsection (j) and the individual
  2       was not offered an opportunity to perform such services for the educa-
  3       tional institution for the second of such academic years or terms, such
  4       individual shall be entitled to a retroactive payment of benefits for each
  5       week for which the individual filed a timely claim for benefits and for
  6       which benefits were denied solely by reason of this subsection (j).
  7             (k) For any week of unemployment on the basis of service in any
  8       capacity for an educational institution as defined in subsection (v) of
  9       K.S.A. 44-703,and amendments thereto, if such week begins during an
10       established and customary vacation period or holiday recess, if the indi-
11       vidual performs services in the period immediately before such vacation
12       period or holiday recess and there is a reasonable assurance that such
13       individual will perform such services in the period immediately following
14       such vacation period or holiday recess.
15             (l) For any week of unemployment on the basis of any services, sub-
16       stantially all of which consist of participating in sports or athletic events
17       or training or preparing to so participate, if such week begins during the
18       period between two successive sport seasons or similar period if such
19       individual performed services in the first of such seasons or similar per-
20       iods and there is a reasonable assurance that such individual will perform
21       such services in the later of such seasons or similar periods.
22             (m) For any week on the basis of services performed by an alien
23       unless such alien is an individual who was lawfully admitted for perma-
24       nent residence at the time such services were performed, was lawfully
25       present for purposes of performing such services, or was permanently
26       residing in the United States under color of law at the time such services
27       were performed, including an alien who was lawfully present in the
28       United States as a result of the application of the provisions of section
29       212(d)(5) of the federal immigration and nationality act. Any data or in-
30       formation required of individuals applying for benefits to determine
31       whether benefits are not payable to them because of their alien status
32       shall be uniformly required from all applicants for benefits. In the case
33       of an individual whose application for benefits would otherwise be ap-
34       proved, no determination that benefits to such individual are not payable
35       because of such individual's alien status shall be made except upon a
36       preponderance of the evidence.
37             (n) For any week in which an individual is receiving a governmental
38       or other pension, retirement or retired pay, annuity or other similar pe-
39       riodic payment under a plan maintained by a base period employer and
40       to which the entire contributions were provided by such employer, except
41       that: (1) If the entire contributions to such plan were provided by the
42       base period employer but such individual's weekly benefit amount ex-
43       ceeds such governmental or other pension, retirement or retired pay,

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  1       annuity or other similar periodic payment attributable to such week, the
  2       weekly benefit amount payable to the individual shall be reduced (but
  3       not below zero) by an amount equal to the amount of such pension,
  4       retirement or retired pay, annuity or other similar periodic payment
  5       which is attributable to such week; or (2) if only a portion of contributions
  6       to such plan were provided by the base period employer, the weekly
  7       benefit amount payable to such individual for such week shall be reduced
  8       (but not below zero) by the prorated weekly amount of the pension, re-
  9       tirement or retired pay, annuity or other similar periodic payment after
10       deduction of that portion of the pension, retirement or retired pay, an-
11       nuity or other similar periodic payment that is directly attributable to the
12       percentage of the contributions made to the plan by such individual; or
13       (3) if the entire contributions to the plan were provided by such individ-
14       ual, or by the individual and an employer (or any person or organization)
15       who is not a base period employer, no reduction in the weekly benefit
16       amount payable to the individual for such week shall be made under this
17       subsection (n); or (4) whatever portion of contributions to such plan were
18       provided by the base period employer, if the services performed for the
19       employer by such individual during the base period, or remuneration
20       received for the services, did not affect the individual's eligibility for, or
21       increased the amount of, such pension, retirement or retired pay, annuity
22       or other similar periodic payment, no reduction in the weekly benefit
23       amount payable to the individual for such week shall be made under this
24       subsection (n). The conditions specified in clause (4) of this subsection
25       (n) shall not apply to payments made under the social security act or the
26       railroad retirement act of 1974, or the corresponding provisions of prior
27       law. Payments made under these acts shall be treated as otherwise pro-
28       vided in this subsection (n). If the reduced weekly benefit amount is not
29       a multiple of $1, it shall be reduced to the next lower multiple of $1.
30             (o) For any week of unemployment on the basis of services per-
31       formed in any capacity and under any of the circumstances described in
32       subsection (i), (j) or (k) which an individual performed in an educational
33       institution while in the employ of an educational service agency. For the
34       purposes of this subsection (o), the term "educational service agency"
35       means a governmental agency or entity which is established and operated
36       exclusively for the purpose of providing such services to one or more
37       educational institutions.
38             (p) For any week of unemployment on the basis of service as a school
39       bus or other motor vehicle driver employed by a private contractor to
40       transport pupils, students and school personnel to or from school-related
41       functions or activities for an educational institution, as defined in subsec-
42       tion (v) of K.S.A. 44-703, and amendments thereto, if such week begins
43       during the period between two successive academic years or during a

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  1       similar period between two regular terms, whether or not successive, if
  2       the individual has a contract or contracts, or a reasonable assurance
  3       thereof, to perform services in any such capacity with a private contractor
  4       for any educational institution for both such academic years or both such
  5       terms. An individual shall not be disqualified for benefits as provided in
  6       this subsection (p) for any week of unemployment on the basis of service
  7       as a bus or other motor vehicle driver employed by a private contractor
  8       to transport persons to or from nonschool-related functions or activities.
  9             (q) For any week of unemployment on the basis of services per-
10       formed by the individual in any capacity and under any of the circum-
11       stances described in subsection (i), (j), (k) or (o) which are provided to
12       or on behalf of an educational institution, as defined in subsection (v) of
13       K.S.A. 44-703, and amendments thereto, while the individual is in the
14       employ of an employer which is a governmental entity or any employer
15       described in section 501(c)(3) of the federal internal revenue code of 1986
16       which is exempt from income under section 501(a) of the code.
17             (r) For any week in which an individual is registered at and attending
18       an established school, training facility or other educational institution, or
19       is on vacation during or between two successive academic years or terms.
20       An individual shall not be disqualified for benefits as provided in this
21       subsection (r) provided:
22             (1) The individual was engaged in full-time employment concurrent
23       with the individual's school attendance; or
24             (2) the individual is attending approved training as defined in sub-
25       section (s) of K.S.A. 44-703, and amendments thereto; or
26             (3) the individual is attending evening, weekend or limited day time
27       classes, which would not affect availability for work, and is otherwise
28       eligible under subsection (c) of K.S.A. 44-705, and amendments thereto.
29             (s) For any week with respect to which an individual is receiving or
30       has received remuneration in the form of a back pay award or settlement.
31       The remuneration shall be allocated to the week or weeks in the manner
32       as specified in the award or agreement, or in the absence of such speci-
33       ficity in the award or agreement, such remuneration shall be allocated to
34       the week or weeks in which such remuneration, in the judgment of the
35       secretary, would have been paid.
36             (1) For any such weeks that an individual receives renumeration in
37       the form of a back pay award or settlement, an overpayment will be
38       established in the amount of unemployment benefits paid and shall be
39       collected from the claimant.
40             (2) If an employer chooses to withhold from a back pay award or
41       settlement, amounts paid to a claimant while they claimed unemployment
42       benefits, such employer shall pay the department the amount withheld.
43       With respect to such amount, the secretary shall have available all of the

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  1       collection remedies authorized or provided in section K.S.A. 44-717, and
  2       amendments thereto.
  3             Sec.  136. K.S.A. 1998 Supp. 60-2313 is hereby amended to read as
  4       follows: 60-2313. (a) Except to the extent otherwise provided by law,
  5       every person residing in this state shall have exempt from seizure and
  6       sale upon any attachment, execution or other process issued from any
  7       court in this state:
  8             (1) Any pension, annuity, retirement, disability, death or other ben-
  9       efit exempt from process pursuant to K.S.A. 12-111a, 12-5005, 13-1246a,
10       13-14,102, 13-14a10, 14-10a10, 20-2618, 72-1768, 72-5526, 74-4923, 74-
11       4978g, 74-49,105 or 74-49,106, and amendments thereto.
12             (2) Any public assistance benefits exempt pursuant to K.S.A. 39-
13       717,and amendments thereto.
14             (3) Any workers' compensation exempt from process pursuant to
15       K.S.A. 44-514, and amendments thereto.
16             (4) Any unemployment benefits exempt from process pursuant to
17       K.S.A. 44-718, and amendments thereto.
18             (5)  Any crime victims compensation award exempt from process
19       pursuant to K.S.A. 74-7313, and amendments thereto.
20             (6) Any liquor license, club license or cereal malt beverage whole-
21       saler's or distributor's license exempt from process pursuant to K.S.A. 41-
22       326, 41-2629 or 41-2714 section 40, and amendments thereto.
23             (7) Any interest in any policy of insurance or beneficiary certificates
24       upon a person's life exempt from process pursuant to K.S.A. 40-414, and
25       amendments thereto.
26             (8) Any fraternal benefit society benefit, charity, relief or aid exempt
27       from process pursuant to K.S.A. 40-711, and amendments thereto.
28             (9) Any trust funds held in a cemetery merchandise trust and exempt
29       from process pursuant to K.S.A. 16-328, and amendments thereto.
30             (10) Any funds held in an account or trust established pursuant to a
31       prearranged funeral agreement, plan or contract and exempt from pro-
32       cess pursuant to K.S.A. 16-310, and amendments thereto.
33             (b) This section shall be part of and supplemental to article 23 of
34       chapter 60 of the Kansas Statutes Annotated.
35             Sec.  137. K.S.A. 75-5118 is hereby amended to read as follows: 75-
36       5118. (a) All of the powers, duties and functions of the existing office of
37       the state director of alcoholic beverage control and the existing state di-
38       rector of alcoholic beverage control are hereby transferred to and con-
39       ferred and imposed, respectively, upon the division of alcoholic beverage
40       control and the director of alcoholic beverage control created by this act,
41       except as is hereby otherwise provided.
42             (b) The division of alcoholic beverage control and the director of
43       alcoholic beverage control created by this act shall be the successors in

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  1       every way, respectively, to the powers, duties and functions of the office
  2       of state director of alcoholic beverage control and the state director of
  3       alcoholic beverage control in which they were vested prior to the effective
  4       date of this act, except as herein otherwise provided. Every act performed
  5       under the authority of the division of alcoholic beverage control or the
  6       director of alcoholic beverage control created by this act, respectively,
  7       shall be deemed to have the same force and effect as if performed by the
  8       office of state director of alcoholic beverage control or the state director
  9       of alcoholic beverage control, respectively, in which such functions were
10       vested prior to the effective date of this act.
11             (c) Whenever the office of state director of alcoholic beverage control
12       is referred to or designated by a statute, contract or other document, such
13       reference or designation shall be deemed to apply to the division of al-
14       coholic beverage control created by this act.
15             (d) Whenever the state director of alcoholic beverage control is re-
16       ferred to or designated by law, contract or other document, such refer-
17       ence shall be deemed to apply to the director of alcoholic beverage con-
18       trol created by this act.
19             (e) All orders and directives of the state director of alcoholic beverage
20       control or the office of the state director of alcoholic beverage control in
21       existence on the effective date of this act, shall continue to be effective
22       and shall be deemed to be orders and directives of the director of alco-
23       holic beverage control or the division of alcoholic beverage control cre-
24       ated by this act, respectively, until revised, amended or nullified pursuant
25       to law.
26             (f) The division of alcoholic beverage control and the director of al-
27       coholic beverage control created by this act, respectively shall be contin-
28       uations of the office of state director of alcoholic beverage control and
29       the state director of alcoholic beverage control created by K.S.A. 41-201
30       section 7, and amendments thereto.
31             Sec.  138. K.S.A. 1998 Supp. 79-41a01 is hereby amended to read as
32       follows: 79-41a01. As used in K.S.A. 79-41a01 through 79-41a09, and
33       amendments thereto:
34             (a) "Alcoholic liquor" means alcoholic liquor, as defined by K.S.A.
35       41-102 and amendments thereto, and cereal malt beverage, as defined
36       by K.S.A. 41-2701 and amendments thereto.
37             (b) "Caterer," "club," "drinking establishment" and "temporary per-
38       mit" have the meanings provided by K.S.A. 41-2601 and amendments
39       thereto.
40             (a) "Alcoholic liquor", "caterer," "cereal malt beverage," "club" and
41       "drinking establishment" have the meanings provided by section 3, and
42       amendments thereto.
43             (b) "Temporary permit" means a temporary liquor-by-the-drink per-

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  1       mit as defined by section 3, and amendments thereto.
  2             (c) "Gross receipts derived from the sale of alcoholic liquor" means
  3       the amount charged the consumer for a drink containing alcoholic liquor,
  4       including any portion of that amount attributable to the cost of any in-
  5       gredient mixed with or added to the alcoholic liquor contained in such
  6       drink.
  7             Sec.  139. K.S.A. 1998 Supp. 79-41a03 is hereby amended to read as
  8       follows: 79-41a03. (a) The tax levied and collected pursuant to K.S.A. 79-
  9       41a02, and amendments thereto shall become due and payable by the
10       club, caterer, drinking establishment or temporary permit holder
11       monthly, or on or before the 25th day of the month immediately suc-
12       ceeding the month in which it is collected, but any club, caterer, drinking
13       establishment or temporary permit holder filing an annual or quarterly
14       return under the Kansas retailers' sales tax act, as prescribed in K.S.A.
15       79-3607, and amendments thereto, shall, upon such conditions as the
16       secretary of revenue may prescribe, shall pay the tax required by this act
17       on the same basis and at the same time the club, caterer, drinking estab-
18       lishment or temporary permit holder pays such retailers' sales tax. Each
19       club, caterer, drinking establishment or temporary permit holder shall
20       make a true report to the department of revenue, on a form prescribed
21       by the secretary of revenue, providing such information as may be nec-
22       essary to determine the amounts to which any such tax shall apply for all
23       gross receipts derived from the sale of alcoholic liquor by the club, ca-
24       terer, drinking establishment or temporary permit holder for the appli-
25       cable month or months, which report shall be accompanied by the tax
26       disclosed thereby. Records of gross receipts derived from the sale of al-
27       coholic liquor shall be kept separate and apart from the records of other
28       retail sales made by a club, caterer, drinking establishment or temporary
29       permit holder in order to facilitate the examination of books and records
30       as provided herein.
31             (b) The secretary of revenue or the secretary's authorized represen-
32       tative shall have the right at all reasonable times during business hours
33       to make such examination and inspection of the books and records of a
34       club, caterer, drinking establishment or temporary permit holder as may
35       be necessary to determine the accuracy of such reports required here-
36       under.
37             (c) The secretary of revenue is hereby authorized to administer and
38       collect the tax imposed hereunder and to adopt such rules and regulations
39       as may be necessary for the efficient and effective administration and
40       enforcement of the collection thereof. Whenever any club, caterer, drink-
41       ing establishment or temporary permit holder liable to pay the tax im-
42       posed hereunder refuses or neglects to pay the same, the amount, in-
43       cluding any penalty, shall be collected in the manner prescribed for the

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  1       collection of the retailers' sales tax by K.S.A. 79-3617, and amendments
  2       thereto.
  3             (d) The secretary of revenue shall remit daily to the state treasurer
  4       all revenue collected under the provisions of this act. The state treasurer
  5       shall deposit the entire amount of each remittance in the state treasury.
  6       Subject to the maintenance requirements of the local alcoholic liquor
  7       refund fund created under K.S.A. 79-41a09, and amendments thereto,
  8       25% of the remittance shall be credited to the state general fund, 5%
  9       shall be credited to the community alcoholism and intoxication programs
10       fund created by K.S.A. 41-1126 section 107, and amendments thereto,
11       and the balance shall be credited to the local alcoholic liquor fund created
12       by K.S.A. 79-41a04, and amendments thereto.
13             (e) Whenever, in the judgment of the secretary of revenue, it is nec-
14       essary, in order to secure the collection of any tax, penalties or interest
15       due, or to become due, under the provisions of this act, the secretary may
16       require any person subject to such tax to file a bond with the director of
17       taxation under conditions established by and in such form and amount as
18       prescribed by rules and regulations adopted by the secretary.
19             Sec.  140. K.S.A. 1998 Supp. 79-41a07 is hereby amended to read as
20       follows: 79-41a07. (a) The director of taxation or the director of alcoholic
21       beverage control may enjoin any person from engaging in business as a
22       club, drinking establishment, caterer or temporary permit holder when
23       the club, drinking establishment, caterer or temporary permit holder is
24       in violation of any of the provisions of K.S.A. 79-41a01 et seq., and amend-
25       ments thereto, or any of the terms of this act and shall be entitled in any
26       proceeding brought for that purpose to have an order restraining the
27       person from engaging in business as a club, drinking establishment, ca-
28       terer or temporary permit holder. No bond shall be required for any such
29       restraining order or for any temporary or permanent injunction issued in
30       that proceeding.
31             (b) If a club, drinking establishment or caterer licensed by the direc-
32       tor of alcoholic beverage control or a temporary permit holder violates
33       any of the provisions of K.S.A. 79-41a01 et seq., and amendments thereto,
34       or any of the terms of this act, the director of alcoholic beverage control
35       may suspend or revoke the license of such club, establishment or caterer
36       in accordance with K.S.A. 41-2609 sections 7, 8, 9, 10 and 11, and amend-
37       ments thereto or may impose a civil fine on the licensee or permit holder
38       in the manner provided by K.S.A. 41-2633a section 41, and amendments
39       thereto. 
40       Sec.  141. K.S.A. 21-3610, 41,101, 41-103, 41-104, 41-105, 41-202,
41       41-203, 41-204, 41-205, 41-206, 41-207, 41-208, 41-209, 41-210, 41-211,
42       41-301, 41-303, 41-304, 41-305, 41-308, 41-309, 41-310, 41-312, 41-313,
43       41-314, 41-315, 41-316, 41-317, 41-318, 41-319, 41-320, 41-321, 41-322,

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  1       41-323, 41-324, 41-325, 41-326, 41-327, 41-328, 41-329, 41-330, 41-331,
  2       41-332, 41-333, 41-334, 41-335, 41-336, 41-337, 41-338, 41-339, 41-340,
  3       41-341, 41-342, 41-343, 41-344, 41-345, 41-401, 41-402, 41-403, 41-405,
  4       41-406, 41-407, 41-408, 41-409, 41-410, 41-412, 41-501, 41-501a, 41-
  5       501c, 41-502, 41-507, 41-508, 41-510, 41-601, 41-602, 41-701, 41-702,
  6       41-703, 41-704, 41-705, 41-706, 41-707, 41-710, 41-711, 41-713, 41-714,
  7       41-715, 41-718, 41-720, 41-721, 41-722, 41-723, 41-724, 41-725, 41-726,
  8       41-728, 41-729, 41-801, 41-803, 41-805, 41-806, 41-901, 41-902, 41-903,
  9       41-904, 41-905, 41-1001, 41-1002, 41-1003, 41-1004, 41-1102, 41-1105,
10       41-1107, 41-1111, 41-1112, 41-1114, 41-1115, 41-1116, 41-1117, 41-
11       1118, 41-1119, 41-1120, 41-1121, 41-1122, 41-1123, 41-1124, 41-1125,
12       41-1127, 41-2604, 41-2605, 41-2606, 41-2607, 41-2608, 41-2609, 41-
13       2610, 41-2611, 41-2612, 41-2613, 41-2619, 41-2620, 41-2621, 41-2623,
14       41-2625, 41-2626, 41-2627, 41-2628, 41-2629, 41-2630, 41-2631, 41-
15       2632, 41-2633, 41-2633a, 41-2634, 41-2635, 41-2636, 41-2639, 41-2640,
16       41-2643, 41-2644, 41-2645, 41-2646, 41-2647, 41-2648, 41-2649, 41-
17       2650, 41-2651, 41-2701, 41-2702, 41-2705, 41-2722 and 75-5118 and
18       K.S.A. 1998 Supp. 8-241, 8-1599, 8-2110, 19-101a, 19-101i, 41-102, 41-
19       201, 41-302, 41-306, 41-306a, 41-307, 41-308a, 41-308b, 41-311, 41-346,
20       41-347, 41-708, 41-709, 41-712, 41-717, 41-719, 41-727, 41-1101, 41-
21       1126, 41-2601, 41-2614, 41-2615, 41-2622, 41-2637, 41-2641, 41-2642,
22       44-706, 60-2313, 79-41a01, 79-41a03 and 79-41a07 are hereby repealed.
23        Sec.  142. This act shall take effect and be in force from and after its
24       publication in the statute book.