As Amended by Senate Committee
          
Session of 1999
         
SENATE BILL No. 6
         
By Special Committee on Federal and State Affairs
          
12-16
          
10             AN  ACT concerning alcoholic beverages; relating to the regulation
11             thereof; relating to certain licensees; amending K.S.A. 41-330, 41-2610
12             and 41-2623 and K.S.A. 1998 Supp. 41-311 and 41-719 and repealing
13             the existing sections.
14      
15      
16       Be it enacted by the Legislature of the State of Kansas:
17             Section  1. K.S.A. 1998 Supp. 41-311 is hereby amended to read as
18       follows: 41-311. (a) No license of any kind shall be issued pursuant to the
19       liquor control act to a person:
20             (1) Who has not been a citizen of the United States for at least 10
21       years, except that the spouse of a deceased retail licensee may receive
22       and renew a retail license notwithstanding the provisions of this subsec-
23       tion (a)(1) if such spouse is otherwise qualified to hold a retail license and
24       is a United States citizen or becomes a United States citizen within one
25       year after the deceased licensee's death;
26             (2) who has been convicted of a felony under the laws of this state,
27       any other state or the United States;
28             (3) who has had a license revoked for cause under the provisions of
29       this act or who has had any license issued under the cereal malt beverage
30       laws of any state revoked for cause except that a license may be issued to
31       a person whose license was revoked for the conviction of a misdemeanor
32       at any time after the lapse of 10 years following the date of the revocation;
33             (4) who has been convicted of being the keeper of or is keeping a
34       house of prostitution or has forfeited bond to appear in court to answer
35       charges of being a keeper of a house of prostitution;
36             (5) who has been convicted of being a proprietor of a gambling house,
37       pandering or any other crime opposed to decency and morality or has
38       forfeited bond to appear in court to answer charges for any of those
39       crimes;
40             (6) who is not at least 21 years of age;
41             (7) who, other than as a member of the governing body of a city or
42       county, appoints or supervises any law enforcement officer, who is a law
43       enforcement official or who is an employee of the director;
44             (8) who intends to carry on the business authorized by the license as

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  1       agent of another;
  2             (9) who at the time of application for renewal of any license issued
  3       under this act would not be eligible for the license upon a first application,
  4       except as provided by subsection (a)(12);
  5             (10) who is the holder of a valid and existing license issued under
  6       article 27 of chapter 41 of the Kansas Statutes Annotated unless the per-
  7       son agrees to and does surrender the license to the officer issuing the
  8       same upon the issuance to the person of a license under this act, except
  9       that a retailer licensed pursuant to K.S.A. 41-2702, and amendments
10       thereto, shall be eligible to receive a retailer's license under the Kansas
11       liquor control act;
12             (11) who does not own the premises for which a license is sought, or
13       does not have a written lease thereon for at least 3/4 of the period for
14       which the license is to be issued; or
15             (12) whose spouse would be ineligible to receive a license under this
16       act for any reason other than citizenship, residence requirements or age,
17       except that this subsection (a)(12) shall not apply in determining eligibility
18       for a renewal license.; or
19             (13) who willfully has failed to file any tax return or willfully is not
20       current in filing all applicable tax returns and in payment of all taxes,
21       interest and penalties owed to the state of Kansas, excluding items under
22       formal appeal pursuant to applicable statutes or items under a formal
23       repayment schedule entered into with the secretary or the secretary's des-
24       ignee. Except as provided by federal or state law or any applicable gaming
25       compact, nothing in this paragraph shall be construed to enhance or di-
26       minish the state's authority to impose any tax, fee, charge or assessment
27       upon any native American tribe or any agent thereof.
28             (b) No retailer's license shall be issued to:
29             (1) A person who is not a resident of this state;
30             (2) a person who has not been a resident of this state for at least four
31       years immediately preceding the date of application;
32             (3) a person who has beneficial interest in the manufacture, prepa-
33       ration or wholesaling of alcoholic beverages;
34             (4) a person who has beneficial interest in any other retail establish-
35       ment licensed under this act, except that the spouse of a licensee may
36       own and hold a retailer's license for another retail establishment;
37             (5) a copartnership partnership, unless all of the copartners partners
38       are qualified to obtain a license;
39             (6) a corporation; or
40             (7) a trust, if any grantor, beneficiary or trustee would be ineligible
41       to receive a license under this act for any reason, except that the provi-
42       sions of subsection (a)(6) shall not apply in determining whether a ben-
43       eficiary would be eligible for a license.

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

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

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  1       (d)(4), (f)(1) and (f)(2) shall not apply in determining eligibility for the
  2       10th, or a subsequent, consecutive renewal of a license if the applicant
  3       has appointed a citizen of the United States who is a resident of Kansas
  4       as the applicant's agent and filed with the director a duly authenticated
  5       copy of a duly executed power of attorney, authorizing the agent to accept
  6       service of process from the director and the courts of this state and to
  7       exercise full authority, control and responsibility for the conduct of all
  8       business and transactions within the state relative to alcoholic liquor and
  9       the business licensed. The agent must be satisfactory to and approved by
10       the director, except that. The director shall not approve as an agent any
11       person who:
12             (1) Has been convicted of a felony under the laws of this state, any
13       other state or the United States;
14             (2) has had a license issued under the alcoholic liquor or cereal malt
15       beverage laws of this or any other state revoked for cause, except that a
16       person may be appointed as an agent if the person's license was revoked
17       for the conviction of a misdemeanor and 10 years have lapsed since the
18       date of the revocation;
19             (3) has been convicted of being the keeper or is keeping a house of
20       prostitution or has forfeited bond to appear in court to answer charges of
21       being a keeper of a house of prostitution;
22             (4) has been convicted of being a proprietor of a gambling house,
23       pandering or any other crime opposed to decency and morality or has
24       forfeited bond to appear in court to answer charges for any of those
25       crimes; or
26             (5) is less than 21 years of age.
27             Sec.  2. K.S.A. 41-330 is hereby amended to read as follows: 41-330.
28       After notice and an opportunity for hearing in accordance with the pro-
29       visions of the Kansas administrative procedure act, the director may re-
30       fuse to issue or renew or may revoke any license provided for by the
31       Kansas liquor control act if:
32             (a) The licensee or the licensee's spouse has been convicted of a vi-
33       olation of intoxicating liquor laws of any state or the alcoholic beverage
34       control laws of the United States or has forfeited of bond to appear in
35       court to answer charges for any such violation, within the 10 years im-
36       mediately preceding the date of application for issuance or renewal of the
37       license or the date of revocation; or
38             (b) the licensee or the licensee's spouse has been convicted of a vi-
39       olation of any of the laws of any state relating to cereal malt beverages,
40       within 10 years immediately preceding the date of application for issuance
41       or renewal of the license or the date of revocation.; or
42             (c) the licensee willfully has failed to file any tax return or willfully is
43       not current in filing all applicable tax returns and in payment of all taxes,

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  1       interest and penalties owed to the state of Kansas, excluding items under
  2       formal appeal pursuant to applicable statutes or items under a formal
  3       repayment schedule entered into with the secretary or the secretary's des-
  4       ignee. Except as provided by federal or state law or any applicable gaming
  5       compact, nothing in this subsection shall be construed to enhance or di-
  6       minish the state's authority to impose any tax, fee, charge or assessment
  7       upon any native American tribe or any agent thereof.
  8             Sec.  3. K.S.A. 41-2610 is hereby amended to read as follows: 41-
  9       2610. It shall be unlawful for any licensee or holder of a temporary permit
10       under this act to:
11             (a) Employ any person under the age of 18 years in connection with
12       the serving of alcoholic liquor.
13             (b) Employ knowingly or continue in employment any person in con-
14       nection with the dispensing or serving of alcoholic liquor or the mixing
15       of drinks containing alcoholic liquor who has been adjudged guilty of a
16       felony or of any crime involving a morals charge in this or any other state,
17       or of the United States.
18             (c) Employ knowingly or to continue in employment any person in
19       connection with the dispensing or serving of alcoholic liquor or mixing of
20       drinks containing alcoholic liquor who has been adjudged guilty of a vi-
21       olation of any intoxicating liquor law of this or any other state, or of the
22       United States, during the two-year period immediately following such
23       adjudging adjudication.
24             (d) In the case of a club, fail to maintain at the licensed premises a
25       current list of all members and their residence addresses or refuse to
26       allow the director, any of the director's or the director's authorized agents
27       or any law enforcement officer to inspect such list.
28             (e) Purchase alcoholic liquor from any person except from a person
29       authorized by law to sell such alcoholic liquor to such licensee or permit
30       holder.
31             (f) Permit any employee of the licensee or permit holder who is under
32       the age of 21 years to work on premises where alcoholic liquor is sold by
33       such licensee or permit holder at any time when not under the on-prem-
34       ises supervision of either the licensee or permit holder, or an employee
35       who is 21 years of age or over.
36             (g) Employ any person under 21 years of age in connection with the
37       mixing or dispensing of drinks containing alcoholic liquor.
38             (h) Willfully fail Fail to file any tax return or willfully is not not be
39       current in filing all applicable tax returns and in payment of all taxes,
40       interest and penalties owed to the state of Kansas, excluding items under
41       formal appeal pursuant to applicable statutes or items under a formal
42       repayment schedule entered into with the secretary or the secretary's des-
43       ignee. Except as provided by federal or state law or any applicable gaming

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  1       compact, nothing in this subsection shall be construed to enhance or di-
  2       minish the state's authority to impose any tax, fee, charge or assessment
  3       upon any native American tribe or any agent thereof.
  4             Sec.  4. K.S.A. 41-2623 is hereby amended to read as follows: 41-
  5       2623. (a) No license shall be issued under the provisions of this act to:
  6             (1) Any person described in subsection (a)(1), (2), (4), (5), (6), (7),
  7       (8), (9) or (12) of K.S.A. 41-311, and amendments thereto, except that
  8       the provisions of subsection (a)(7) of such section shall not apply to nor
  9       prohibit the issuance of a license for a class A club to an officer of a post
10       home of a congressionally chartered service or fraternal organization, or
11       a benevolent association or society thereof.
12             (2) A person who has had the person's license revoked for cause un-
13       der the provisions of this act.
14             (3) A person who has not been a resident of this state for a period of
15       at least one year immediately preceding the date of application.
16             (4) A person who has a beneficial interest in the manufacture, prep-
17       aration or wholesaling or the retail sale of alcoholic liquors or a beneficial
18       interest in any other club, drinking establishment or caterer licensed here-
19       under, except that:
20             (A) A license for premises located in a hotel may be granted to a
21       person who has a beneficial interest in one or more other clubs or drinking
22       establishments licensed hereunder if such other clubs or establishments
23       are located in hotels.
24             (B) A license for a club or drinking establishment which is a restau-
25       rant may be issued to a person who has a beneficial interest in other clubs
26       or drinking establishments which are restaurants.
27             (C) A caterer's license may be issued to a person who has a beneficial
28       interest in a club or drinking establishment and a license for a club or
29       drinking establishment may be issued to a person who has a beneficial
30       interest in a caterer.
31             (D) A license for a class A club may be granted to an organization of
32       which an officer, director or board member is a distributor or retailer
33       licensed under the liquor control act if such distributor or retailer sells
34       no alcoholic liquor to such club.
35             (E) On and after January 1, 1988, A license for a class B club or
36       drinking establishment may be granted to a person who has a beneficial
37       interest in a microbrewery or farm winery licensed pursuant to the Kansas
38       liquor control act.
39             (5) A copartnership partnership, unless all of the copartners partners
40       are qualified to obtain a license.
41             (6) A corporation, if any officer, manager or director thereof, or any
42       stockholder owning in the aggregate more than 5% of the common or
43       preferred stock of such corporation would be ineligible to receive a li-

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  1       cense hereunder for any reason other than citizenship and residence
  2       requirements.
  3             (7) A corporation, if any officer, manager or director thereof, or any
  4       stockholder owning in the aggregate more than 5% of the common or
  5       preferred stock of such corporation, has been an officer, manager or di-
  6       rector, or a stockholder owning in the aggregate more than 5% of the
  7       common or preferred stock, of a corporation which:
  8             (A) Has had a license revoked under the provisions of the club and
  9       drinking establishment act; or
10             (B) has been convicted of a violation of the club and drinking estab-
11       lishment act or the cereal malt beverage laws of this state.
12             (8) A corporation organized under the laws of any state other than
13       this state.
14             (9) A trust, if any grantor, beneficiary or trustee would be ineligible
15       to receive a license under this act for any reason, except that the provi-
16       sions of subsection (a)(6) of K.S.A. 41-311, and amendments thereto, shall
17       not apply in determining whether a beneficiary would be eligible for a
18       license.
19             (10) A person who willfully has failed to file any tax return or willfully
20       is not current in filing all applicable tax returns and in payment of all
21       taxes, interest and penalties owed to the state of Kansas, excluding items
22       under formal appeal pursuant to applicable statutes or items under a
23       formal repayment schedule entered into with the secretary or the secre-
24       tary's designee. Except as provided by federal or state law or any appli-
25       cable gaming compact, nothing in this paragraph shall be construed to
26       enhance or diminish the state's authority to impose any tax, fee, charge
27       or assessment upon any native American tribe or any agent thereof.
28             (b) No club or drinking establishment license shall be issued under
29       the provisions of the club and drinking establishment act to:
30             (1) A person described in subsection (a)(11) of K.S.A. 41-311, and
31       amendments thereto.
32             (2) A person who is not a resident of the county in which the premises
33       sought to be licensed are located. 
34       Sec.  5. 1998 Supp. K.S.A. 41-719 is hereby amended to read
35       as follows: 41-719. (a) No person shall drink or consume alcoholic
36       liquor on the public streets, alleys, roads or highways or inside
37       vehicles while on the public streets, alleys, roads or highways.
38             (b) No person shall drink or consume alcoholic liquor on pri-
39       vate property except:
40             (1) On premises where the sale of liquor by the individual drink
41       is authorized by the club and drinking establishment act;
42             (2) upon private property by a person occupying such property
43       as an owner or lessee of an owner and by the guests of such person,

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

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  1       as authorized by rules and regulations of the state historical
  2       society.
  3             (8) In a lake resort within the meaning of K.S.A. 32-867, and
  4       amendments thereto, on state-owned or leased property.
  5             (9) On the premises of the Kansas national guard regional training
  6       center located in Saline county, and any building on such premises, as
  7       authorized by rules and regulations of the adjutant general and upon
  8       approval of the Kansas military board.
  9             (9) (10) On property exempted from this subsection (c) pursu-
10       ant to subsection (d), (e), (f), (g) or (h).
11             (d) Any city may exempt, by ordinance, from the provisions of
12       subsection (c) specified property the title of which is vested in such
13       city.
14             (e) The board of county commissioners of any county may ex-
15       empt, by resolution, from the provisions of subsection (c) specified
16       property the title of which is vested in such county.
17             (f) The state board of regents may exempt from the provisions
18       of subsection (c) specified property which is under the control of
19       such board and which is not used for classroom instruction, where
20       alcoholic liquor may be consumed in accordance with policies
21       adopted by such board.
22             (g) The board of regents of Washburn university may exempt
23       from the provisions of subsection (c) the Mulvane art center and
24       the Bradbury Thompson alumni center on the campus of Wash-
25       burn university, and other specified property the title of which is
26       vested in such board and which is not used for classroom instruc-
27       tion, where alcoholic liquor may be consumed in accordance with
28       policies adopted by such board.
29             (h) Any city may exempt, by ordinance, from the provisions of
30       subsection (c) any national guard armory in which such city has a
31       leasehold interest, if the Kansas military board consents to the
32       exemption.
33             (i) The provisions of subsection (c) shall not apply to functions
34       or activities held in the Hiram Price Dillon house or on its sur-
35       rounding premises, except to the extent limitations are established
36       in policies adopted by the legislative coordinating council, as pro-
37       vided by K.S.A. 75-3682, and amendments thereto.
38             (j) Violation of any provision of this section is a misdemeanor
39       punishable by a fine of not less than $50 or more than $200 or by
40       imprisonment for not more than six months, or both.
41        Sec.  5. 6. K.S.A. 41-330, 41-2610 and 41-2623 and K.S.A. 1998 Supp.
42       41-311 and 41-719 are hereby repealed.

SB 6--Am.

11

  1        Sec.  6. 7. This act shall take effect and be in force from and after its
  2       publication in the statute book.