Session of 2000
HOUSE BILL No. 2870
By Representative Sloan
2-7
9 AN ACT
concerning alcoholic beverages; concerning certain licensees;
10 relating to bond
requirements; amending K.S.A. 41-301, 41-316, 41-
11 317, 41-502, 79-4106
and 79-41a03 and repealing the existing sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. K.S.A. 41-301 is hereby amended to read as follows: 41-
15 301. The director shall issue to qualified
applicants, who have filed the
16 bond and paid the
registration and license fees required by this act and
17 who have filed the bond if required by
this act, licenses to sell alcoholic
18 liquor at retail in the original package
within the corporate limits of cities
19 and outside the corporate limits of cities
in certain townships as provided
20 in this act:
Provided, That. No such retailer's
license shall be issued for
21 any premises within any city of the first
or second class wherein a majority
22 of the qualified electors of such city who
voted on the proposition to
23 amend section 10 of article 15 of the
constitution of the state of Kansas
24 at the general election held in November,
1948, shall have voted against
25 the adoption of such proposition or in
cities any city of the third class
26 located in a township, or townships,
wherein a majority of the qualified
27 electors of such township, or townships,
who voted on said such propo-
28 sition to amend the constitution at
said such election shall have voted
29 against its adoption, until a majority of
the qualified electors of such city
30 voting at an election held as provided by
K.S.A. 41-302, and amendments
31 thereto, shall have declared by
their votes to be in favor of the licensing
32 of the sale of alcoholic liquor by the
package in such city.
33 Sec.
2. K.S.A. 41-316 is hereby amended to read as follows:
41-316.
34 Licenses to manufacturers, distributors,
microbreweries, farm wineries
35 and nonbeverage users of alcoholic liquors
shall be issued and renewed
36 by the director to qualified applicants
upon written application, receipt
37 of bond properly executed, if required
by the director, and payment in
38 advance of the state registration fee and
the license fee.
39 Sec.
3. K.S.A. 41-317 is hereby amended to read as follows:
41-317.
40 (a) Applications for all licenses under
this act shall be upon forms pre-
41 scribed and furnished by the director and
shall be filed with the director
42 in duplicate. Each application shall be
accompanied by a state registration
43 fee of $50 for each initial application and
$10 for each renewal application
2
1 to defray the cost of preparing and
furnishing standard forms incident to
2 the administration of this act and
the cost of processing the application.
3 Each application
shall also shall be accompanied by a
deposit of a certified
4 or cashier's check of a bank within
this state, United States post office
5 money order or cash in the full
amount of the license fee required to be
6 paid for the kind of license applied
for, which license fee shall be returned
7 to the applicant if the application
is denied. All registration fees shall be
8 paid into the state treasury by the
director and shall be credited to the
9 state general fund. All license fees
received by the director, including fees
10 received for licenses to manufacture beer,
regardless of its alcoholic con-
11 tent, shall be paid into the state treasury
by the director and shall be
12 credited to the state general fund.
13
(b) Every Except as provided by subsection
(d), an applicant for a
14 manufacturer's, distributor's, nonbeverage
user's, microbrewery, farm
15 winery or retailer's license shall file
with the application a joint and several
16 bond on a form prescribed by the director
and executed by good and
17 sufficient corporate sureties licensed to
do business within the state of
18 Kansas to the director, in the following
amounts:
19 (1) For a
manufacturer, $25,000;
20 (2) for a spirits
distributor, $15,000 or an amount equal to the highest
21 monthly liability of the distributor for
taxes imposed by the Kansas liquor
22 control act for any of the 12 months
immediately prior to renewal of the
23 distributor's license, whichever amount is
greater;
24 (3) for a beer or
wine distributor, $5,000 or an amount equal to the
25 highest monthly liability of the
distributor for taxes imposed by the Kansas
26 liquor control act for any of the 12 months
immediately prior to renewal
27 of the distributor's license, whichever
amount is greater;
28 (4) for a
retailer, $2,000;
29 (5) for
nonbeverage users, $200 for class 1, $500 for class 2, $1,000
30 for class 3, $5,000 for class 4 and $10,000
for class 5; and
31 (6) for a
microbrewery or a farm winery, $2,000.
32 If a distributor holds
or applies for more than one distributor's license,
33 only one bond for all such licenses shall
be required, which bond shall be
34 in an amount equal to the highest
applicable bond.
35 (c) All bonds
required by this section shall be conditioned on the
36 licensee's compliance with the provisions
of this act and payment of all
37 taxes, fines and forfeitures which may be
assessed against the licensee.
38 (d) The
director shall waive the bond required by this section for
any
39 licensee who during the 12 months
preceding the date of application has
40 complied with the provisions of the
Kansas liquor control act and has not
41 been delinquent in the payment of any
taxes or fees imposed under the
42 Kansas liquor control act during such
time period. When, in the judgment
43 of the director, it becomes necessary in
order to secure the collection of
3
1 any tax, penalty or interest due
thereon, the director may require such
2 licensee to file the bond required
by subsection (b). The director shall
3 adopt any rules and regulations
necessary to implement the provisions of
4 this subsection.
5 Sec.
4. K.S.A. 41-502 is hereby amended to read as follows:
41-502.
6 (a) The secretary of revenue
shall prescribe, by rules and regulations
7 adopted pursuant to K.S.A.
41-210, and amendments thereto, and de-
8 signed to protect the revenue of this
state, a method of reporting, paying
9 and collecting the tax imposed by
K.S.A. 41-501, and amendments
10 thereto, other than the affixture to
original packages of alcoholic liquor
11 of stamps or other visible evidence of the
payment of such tax. Such tax
12 shall be paid on or before the 15th day of
the calendar month next suc-
13 ceeding the month in which the distributor
acquires possession of alco-
14 holic liquors made taxable by the
provisions of K.S.A. 41-501, and amend-
15 ments thereto. The reporting and payment
thereof within the time
16 prescribed by this section and in the
manner prescribed by the rules and
17 regulations shall constitute a compliance
with the provisions of K.S.A. 41-
18 501, and amendments thereto.
19 (b) Whenever,
in the judgment of the secretary of revenue, it is nec-
20 essary, in order to secure the
collection of any tax, penalties or interest
21 due, or to become due, under the
provisions of K.S.A. 41-501 through 41-
22 510, and amendments thereto, the
secretary may require any person sub-
23 ject to such tax to file a bond with the
director of taxation under conditions
24 established by and in such form and
amount as prescribed by rules and
25 regulations adopted by the secretary.
The secretary shall not require a
26 bond to be filed under this section by a
person subject to the tax who
27 during the preceding twelve-month period
has complied with the provi-
28 sions of the Kansas liquor control act
and has not been delinquent in the
29 payment of any taxes or fees imposed
under the club and drinking estab-
30 lishment act or the provisions of K.S.A.
41-501 through 41-510, and
31 amendments thereto.
32 Sec.
5. K.S.A. 79-4106 is hereby amended to read as follows:
79-
33 4106. The director of taxation shall
administer the provisions of article 41
34 of chapter 79 of the Kansas Statutes
Annotated. The secretary of revenue
35 shall adopt rules and regulations necessary
to carry out the provisions and
36 intent of K.S.A. 79-4101 to
79-4105, inclusive through 79-4108, and
37 amendments thereto. The director of
taxation shall appoint such agents
38 and employees as he or she may
deem deemed necessary for the proper
39 enforcement and administration of
said sections K.S.A. 79-4101 through
40 79-4108, and amendments thereto.
When, in the judgment of said the
41 director of taxation, it is necessary in
order to secure the collection of any
42 such tax, penalties or interest due
thereon, or to become due under said
43 sections, he or she the
provisions of K.S.A. 79-4101 through 79-4108, and
4
1 amendments thereto, the
director may require any person subject to such
2 tax to file a bond with him
or her the director in such form and amount
3 as he or she the
director may prescribe. The director shall not require
a
4 bond to be filed under this
section by any licensee who, during the pre-
5 ceding twelve-month period, has
complied with the provisions of the Kan-
6 sas liquor control act and the
club and drinking establishment act and
7 has not been delinquent in the
payment of any taxes or fees imposed under
8 the Kansas liquor control act, the
club and drinking establishment act or
9 K.S.A. 79-4101 through 79-4108,
and amendments thereto, during such
10 time period.
11 Sec.
6. K.S.A. 79-41a03 is hereby amended to read as follows:
79-
12 41a03. (a) The tax levied and collected
pursuant to K.S.A. 79-41a02, and
13 amendments thereto, shall become due
and payable by the club, caterer,
14 drinking establishment or temporary permit
holder monthly, or on or
15 before the 25th day of the month
immediately succeeding the month in
16 which it is collected,
but. Any club, caterer, drinking establishment
or
17 temporary permit holder filing an annual or
quarterly return under the
18 Kansas retailers' sales tax act, as
prescribed in K.S.A. 79-3607, and amend-
19 ments thereto, shall, upon
such conditions as the secretary of revenue
20 may prescribe, shall pay the tax
required by this act on the same basis
21 and at the same time the club, caterer,
drinking establishment or tem-
22 porary permit holder pays such retailers'
sales tax. Each club, caterer,
23 drinking establishment or temporary permit
holder shall make a true re-
24 port to the department of revenue, on a
form prescribed by the secretary
25 of revenue, providing such information as
may be necessary to determine
26 the amounts to which any such tax shall
apply for all gross receipts derived
27 from the sale of alcoholic liquor by the
club, caterer, drinking establish-
28 ment or temporary permit holder for the
applicable month or months,
29 which report shall be accompanied by the
tax disclosed thereby. Records
30 of gross receipts derived from the sale of
alcoholic liquor shall be kept
31 separate and apart from the records of
other retail sales made by a club,
32 caterer, drinking establishment or
temporary permit holder in order to
33 facilitate the examination of books and
records as provided herein.
34 (b) The secretary
of revenue or the secretary's authorized represen-
35 tative shall have the right at all
reasonable times during business hours
36 to make such examination and inspection of
the books and records of a
37 club, caterer, drinking establishment or
temporary permit holder as may
38 be necessary to determine the accuracy of
such reports required
39 hereunder.
40 (c) The secretary
of revenue is hereby authorized to administer and
41 collect the tax imposed hereunder and to
adopt such rules and regulations
42 as may be necessary for the efficient and
effective administration and
43 enforcement of the collection thereof.
Whenever any club, caterer, drink-
5
1 ing establishment or temporary permit
holder liable to pay the tax im-
2 posed hereunder refuses or neglects
to pay the same, the amount, in-
3 cluding any penalty, shall be
collected in the manner prescribed for the
4 collection of the retailers' sales
tax by K.S.A. 79-3617, and amendments
5 thereto.
6 (d) The
secretary of revenue shall remit daily to the state treasurer
7 all revenue collected under the
provisions of this act. The state treasurer
8 shall deposit the entire amount of
each remittance in the state treasury.
9 Subject to the maintenance
requirements of the local alcoholic liquor
10 refund fund created under K.S.A.
79-41a09, and amendments thereto,
11 25% of the remittance shall be credited to
the state general fund, 5%
12 shall be credited to the community
alcoholism and intoxication programs
13 fund created by K.S.A. 41-1126, and
amendments thereto, and the bal-
14 ance shall be credited to the local
alcoholic liquor fund created by K.S.A.
15 79-41a04, and amendments
thereto.
16 (e) Whenever, in
the judgment of the secretary of revenue, it is nec-
17 essary, in order to secure the collection
of any tax, penalties or interest
18 due, or to become due, under the provisions
of this act, the secretary may
19 require any person subject to such tax to
file a bond with the director of
20 taxation under conditions established by
and in such form and amount as
21 prescribed by rules and regulations adopted
by the secretary. The secre-
22 tary shall not require a bond to be
filed under this section by a person
23 subject to the tax who during the
preceding twelve-month period has
24 complied with the provisions of the club
and drinking establishment act
25 and has not been delinquent in the
payment of any taxes or fees imposed
26 under the club and drinking
establishment act or the provisions of K.S.A.
27 79-41a01 through 79-41a09, and
amendments thereto.
28 Sec. 7. K.S.A. 41-301, 41-316,
41-317, 41-502, 79-4106 and 79-41a03
29 are hereby repealed.
30 Sec. 8. This act shall
take effect and be in force from and after its
31 publication in the statute book.