CHAPTER 189 HOUSE BILL No. 2084 (Amends Chapter 55) An  Act concerning alcoholic beverages; relating to the regulation thereof; amending K.S.A.
21-3610, 41-204, 41-311, as amended by Section 1 of 2001 Senate Bill No. 178, 41-2623
and 41-2703 and repealing the existing sections; also repealing K.S.A. 21-3610a.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 21-3610 is hereby amended to read as follows: 21-
3610. (a) Furnishing alcoholic liquor or cereal malt beverage to a minor
is directly or indirectly, selling to, buying for, giving or furnishing any
alcoholic liquor or cereal malt beverage to any minor.

      (b) Except as provided by subsections (d) and (e), furnishing alcoholic
liquor or cereal malt beverage to a minor is a class B person misdemeanor
for which the minimum fine is $200.

      (c)  (1) Except as provided by paragraph (2) of this subsection, as
used in this section, terms have the meanings provided by K.S.A. 41-102,
and amendments thereto.

      (2) As used in this section, ``cereal malt beverage,'' ``retailer'' and ``le-
gal age for consumption of cereal malt beverage'' have the meanings pro-
vided by K.S.A. 41-2701, and amendments thereto.

      (d) It shall be a defense to a prosecution under this section if: (1) The
defendant is a licensed retailer, club, drinking establishment or caterer
or holds a temporary permit, or an employee thereof; (2) the defendant
sold the alcoholic liquor or cereal malt beverage to the minor with rea-
sonable cause to believe that the minor was 21 or more years of age or
of legal age for the consumption of alcoholic liquor or cereal malt bever-
age; and (3) to purchase the alcoholic liquor, the minor or cereal malt
beverage, the person exhibited to the defendant a driver's license, Kansas
nondriver's identification card or other official or apparently official doc-
ument, containing a photograph of the minor and purporting to establish
that such minor was 21 or more years of age or of legal age for the con-
sumption of alcoholic liquor or cereal malt beverage.

      (e) This section shall not apply to the furnishing of cereal malt bev-
erage by a parent or legal guardian to such parent's child or such guard-
ian's ward.

      Sec.  2. K.S.A. 41-204 is hereby amended to read as follows: 41-204.
(a) No person shall be appointed director who is not a citizen of the
United States and who has not resided in the state of Kansas successively
for five years immediately preceding the date of appointment.

      (b) No person shall be appointed deputy director who is not a citizen
of the United States and who has not resided in the state of Kansas suc-
cessively for two years immediately preceding the date of appointment.
(a) Any person appointed as director and all employees of the division
shall be citizens of the United States and residents of the state of Kansas.

      (c) (b) No person shall be appointed director or deputy director if
such person has been convicted of a felony or of any violation of any
federal or state law concerning the manufacture or sale of alcoholic liquor
or cereal malt beverages, has paid a fine or penalty in settlement in any
prosecution against such person in any violation of such laws or has for-
feited bond to appear in court to answer charges for any such violation.

      (d) (c) No person appointed director, deputy director or agent or
employee of the director may or any employee of the division may have,
directly or indirectly, individually or as a member of a partnership, or as
a shareholder of a corporation, have any interest whatsoever in the man-
ufacture, sale or distribution of alcoholic liquor, nor receive any compen-
sation or profit therefrom, nor have any interest whatsoever in the pur-
chases or sales made by the persons authorized by this act, or to purchase
or to sell alcoholic liquor. None of the provisions of Nothing in this sub-
section shall prevent a person subject to this subsection from purchasing
and keeping in the person's possession for the use of the person or the
person's family or guests any alcoholic liquor which may be purchased or
kept by any person by virtue of this act.

      Sec.  3. K.S.A. 41-311, as amended by section 1 of 2001 Senate Bill
No. 178 is hereby amended to read as follows: 41-311.

      (a) No license of any kind shall be issued pursuant to the liquor control
act to a person:

      (1) Who has not been a citizen of the United States for at least 10
years, except that the spouse of a deceased retail licensee may receive
and renew a retail license notwithstanding the provisions of this subsec-
tion (a)(1) if such spouse is otherwise qualified to hold a retail license and
is a United States citizen or becomes a United States citizen within one
year after the deceased licensee's death;

      (2) who has been convicted of a felony under the laws of this state,
any other state or the United States;

      (3) who has had a license revoked for cause under the provisions of
this act or who has had any license issued under the cereal malt beverage
laws of any state revoked for cause except that a license may be issued to
a person whose license was revoked for the conviction of a misdemeanor
at any time after the lapse of 10 years following the date of the revocation;

      (4) who has been convicted of being the keeper or is keeping a house
of prostitution or has forfeited bond to appear in court to answer charges
of being a keeper of a house of prostitution;

      (5) who has been convicted of being a proprietor of a gambling house,
pandering or any other crime opposed to decency and morality or has
forfeited bond to appear in court to answer charges for any of those
crimes;

      (6) who is not at least 21 years of age;

      (7) who, other than as a member of the governing body of a city or
county, appoints or supervises any law enforcement officer, who is a law
enforcement official or who is an employee of the director;

      (8) who intends to carry on the business authorized by the license as
agent of another;

      (9) who at the time of application for renewal of any license issued
under this act would not be eligible for the license upon a first application,
except as provided by subsection (a)(12);

      (10) who is the holder of a valid and existing license issued under
article 27 of chapter 41 of the Kansas Statutes Annotated unless the per-
son agrees to and does surrender the license to the officer issuing the
same upon the issuance to the person of a license under this act, except
that a retailer licensed pursuant to K.S.A. 41-2702, and amendments
thereto, shall be eligible to receive a retailer's license under the Kansas
liquor control act;

      (11) who does not own the premises for which a license is sought, or
does not have a written lease thereon for at least 3/4 of the period for
which the license is to be issued; or

      (12) whose spouse would be ineligible to receive a license under this
act for any reason other than citizenship, residence requirements or age,
except that this subsection (a)(12) shall not apply in determining eligibility
for a renewal license; or

      (13) whose spouse has been convicted of a felony or other crime which
would disqualify a person from licensure under this section and such
felony or other crime was committed during the time that the spouse held
a license under this act; or

      (13) (14) who does not provide any data or information required by
section 2 of 2001 Senate Bill No. 178, and amendments thereto.

      (b) No retailer's license shall be issued to:

      (1) A person who is not a resident of this state;

      (2) a person who has not been a resident of this state for at least four
years immediately preceding the date of application;

      (3) a person who has beneficial interest in the manufacture, prepa-
ration or wholesaling of alcoholic beverages;

      (4) a person who has beneficial interest in any other retail establish-
ment licensed under this act, except that the spouse of a licensee may
own and hold a retailer's license for another retail establishment;

      (5) a copartnership, unless all of the copartners are qualified to obtain
a license;

      (6) a corporation; or

      (7) a trust, if any grantor, beneficiary or trustee would be ineligible
to receive a license under this act for any reason, except that the provi-
sions of subsection (a)(6) shall not apply in determining whether a ben-
eficiary would be eligible for a license.

      (c) No manufacturer's license shall be issued to:

      (1) A corporation, if any officer or director thereof, or any stockholder
owning in the aggregate more than 25% of the stock of the corporation
would be ineligible to receive a manufacturer's license for any reason
other than citizenship and residence requirements;

      (2) a copartnership, unless all of the copartners shall have been res-
idents of this state for at least five years immediately preceding the date
of application and unless all the members of the copartnership would be
eligible to receive a manufacturer's license under this act;

      (3) a trust, if any grantor, beneficiary or trustee would be ineligible
to receive a license under this act for any reason, except that the provi-
sions of subsection (a)(6) shall not apply in determining whether a ben-
eficiary would be eligible for a license;

      (4) an individual who is not a resident of this state; or

      (5) an individual who has not been a resident of this state for at least
five years immediately preceding the date of application.

      (d) No distributor's license shall be issued to:

      (1) A corporation, if any officer, director or stockholder of the cor-
poration would be ineligible to receive a distributor's license for any rea-
son. It shall be unlawful for any stockholder of a corporation licensed as
a distributor to transfer any stock in the corporation to any person who
would be ineligible to receive a distributor's license for any reason, and
any such transfer shall be null and void, except that: (A) If any stockholder
owning stock in the corporation dies and an heir or devisee to whom stock
of the corporation descends by descent and distribution or by will is in-
eligible to receive a distributor's license, the legal representatives of the
deceased stockholder's estate and the ineligible heir or devisee shall have
14 months from the date of the death of the stockholder within which to
sell the stock to a person eligible to receive a distributor's license, any
such sale by a legal representative to be made in accordance with the
provisions of the probate code; or (B) if the stock in any such corporation
is the subject of any trust and any trustee or beneficiary of the trust who
is 21 years of age or older is ineligible to receive a distributor's license,
the trustee, within 14 months after the effective date of the trust, shall
sell the stock to a person eligible to receive a distributor's license and
hold and disburse the proceeds in accordance with the terms of the trust.
If any legal representatives, heirs, devisees or trustees fail, refuse or ne-
glect to sell any stock as required by this subsection, the stock shall revert
to and become the property of the corporation, and the corporation shall
pay to the legal representatives, heirs, devisees or trustees the book value
of the stock. During the period of 14 months prescribed by this subsec-
tion, the corporation shall not be denied a distributor's license or have its
distributor's license revoked if the corporation meets all of the other
requirements necessary to have a distributor's license;

      (2) a copartnership, unless all of the copartners are eligible to receive
a distributor's license; or

      (3) a trust, if any grantor, beneficiary or trustee would be ineligible
to receive a license under this act for any reason, except that the provi-
sions of subsection (a)(6) shall not apply in determining whether a ben-
eficiary would be eligible for a license.

      (e) No nonbeverage user's license shall be issued to a corporation, if
any officer, manager or director of the corporation or any stockholder
owning in the aggregate more than 25% of the stock of the corporation
would be ineligible to receive a nonbeverage user's license for any reason
other than citizenship and residence requirements.

      (f) No microbrewery license or farm winery license shall be issued to
a:

      (1) Person who is not a resident of this state;

      (2) person who has not been a resident of this state for at least four
years immediately preceding the date of application;

      (3) person who has beneficial interest in the manufacture, prepara-
tion or wholesaling of alcoholic beverages other than that produced by
such brewery or winery;

      (4) person, copartnership or association which has beneficial interest
in any retailer licensed under this act or under K.S.A. 41-2702, and
amendments thereto;

      (5) copartnership, unless all of the copartners are qualified to obtain
a license;

      (6) corporation, unless stockholders owning in the aggregate 50% or
more of the stock of the corporation would be eligible to receive such
license and all other stockholders would be eligible to receive such license
except for reason of citizenship or residency; or

      (7) a trust, if any grantor, beneficiary or trustee would be ineligible
to receive a license under this act for any reason, except that the provi-
sions of subsection (a)(6) shall not apply in determining whether a ben-
eficiary would be eligible for a license.

      (g) The provisions of subsections (b)(1), (b)(2), (c)(3), (c)(4), (d)(3),
(d)(4), (f)(1) and (f)(2), (f)(2) and section 2 of 2001 Senate Bill No. 178,
and amendments thereto, shall not apply in determining eligibility for the
10th, or a subsequent, consecutive renewal of a license if the applicant
has appointed a citizen of the United States who is a resident of Kansas
as the applicant's agent and filed with the director a duly authenticated
copy of a duly executed power of attorney, authorizing the agent to accept
service of process from the director and the courts of this state and to
exercise full authority, control and responsibility for the conduct of all
business and transactions within the state relative to alcoholic liquor and
the business licensed. The agent must be satisfactory to and approved by
the director, except that the director shall not approve as an agent any
person who:

      (1) Has been convicted of a felony under the laws of this state, any
other state or the United States;

      (2) has had a license issued under the alcoholic liquor or cereal malt
beverage laws of this or any other state revoked for cause, except that a
person may be appointed as an agent if the person's license was revoked
for the conviction of a misdemeanor and 10 years have lapsed since the
date of the revocation;

      (3) has been convicted of being the keeper or is keeping a house of
prostitution or has forfeited bond to appear in court to answer charges of
being a keeper of a house of prostitution;

      (4) has been convicted of being a proprietor of a gambling house,
pandering or any other crime opposed to decency and morality or has
forfeited bond to appear in court to answer charges for any of those
crimes; or

      (5) is less than 21 years of age.

      Sec.  4. K.S.A. 41-2623 is hereby amended to read as follows: 41-
2623. (a) No license shall be issued under the provisions of this act to:

      (1) Any person described in subsection (a)(1), (2), (4), (5), (6), (7),
(8), (9) or (12), (12) or (13) of K.S.A. 41-311, and amendments thereto,
except that the provisions of subsection (a)(7) of such section shall not
apply to nor prohibit the issuance of a license for a class A club to an
officer of a post home of a congressionally chartered service or fraternal
organization, or a benevolent association or society thereof.

      (2) A person who has had the person's license revoked for cause un-
der the provisions of this act.

      (3) A person who has not been a resident of this state for a period of
at least one year immediately preceding the date of application.

      (4) A person who has a beneficial interest in the manufacture, prep-
aration or wholesaling or the retail sale of alcoholic liquors or a beneficial
interest in any other club, drinking establishment or caterer licensed here-
under, except that:

      (A) A license for premises located in a hotel may be granted to a
person who has a beneficial interest in one or more other clubs or drinking
establishments licensed hereunder if such other clubs or establishments
are located in hotels.

      (B) A license for a club or drinking establishment which is a restau-
rant may be issued to a person who has a beneficial interest in other clubs
or drinking establishments which are restaurants.

      (C) A caterer's license may be issued to a person who has a beneficial
interest in a club or drinking establishment and a license for a club or
drinking establishment may be issued to a person who has a beneficial
interest in a caterer.

      (D) A license for a class A club may be granted to an organization of
which an officer, director or board member is a distributor or retailer
licensed under the liquor control act if such distributor or retailer sells
no alcoholic liquor to such club.

      (E) On and after January 1, 1988, a license for a class B club or
drinking establishment may be granted to a person who has a beneficial
interest in a microbrewery or farm winery licensed pursuant to the Kansas
liquor control act.

      (5) A copartnership, unless all of the copartners are qualified to ob-
tain a license.

      (6) A corporation, if any officer, manager or director thereof, or any
stockholder owning in the aggregate more than 5% of the common or
preferred stock of such corporation would be ineligible to receive a li-
cense hereunder for any reason other than citizenship and residence
requirements.

      (7) A corporation, if any officer, manager or director thereof, or any
stockholder owning in the aggregate more than 5% of the common or
preferred stock of such corporation, has been an officer, manager or di-
rector, or a stockholder owning in the aggregate more than 5% of the
common or preferred stock, of a corporation which:

      (A) Has had a license revoked under the provisions of the club and
drinking establishment act; or

      (B) has been convicted of a violation of the club and drinking estab-
lishment act or the cereal malt beverage laws of this state.

      (8) A corporation organized under the laws of any state other than
this state.

      (9) A trust, if any grantor, beneficiary or trustee would be ineligible
to receive a license under this act for any reason, except that the provi-
sions of subsection (a)(6) of K.S.A. 41-311, and amendments thereto shall
not apply in determining whether a beneficiary would be eligible for a
license.

      (b) No club or drinking establishment license shall be issued under
the provisions of the club and drinking establishment act to:

      (1) A person described in subsection (a)(11) of K.S.A. 41-311, and
amendments thereto.

      (2) A person who is not a resident of the county in which the premises
sought to be licensed are located.

      Sec.  5. K.S.A. 41-2703 is hereby amended to read as follows: 41-
2703. (a) After examination of an application for a retailer's license, the
board of county commissioners or the director shall, if they approve the
same, issue a license to the applicant. The governing body of the city
shall, if the applicant is qualified as provided by law, issue a license to
such applicant.

      (b) No retailer's license shall be issued to:

      (1) A person who is not a resident of the county in which the place
of business covered by the license is located, has not been a resident of
such county for at least six months or has not been a resident in good
faith of the state of Kansas.

      (2) A person who has not been a resident of this state for at least one
year immediately preceding application for a retailer's license.

      (3) A person who is not of good character and reputation in the com-
munity in which the person resides.

      (4) A person who is not a citizen of the United States.

      (5) A person who, within two years immediately preceding the date
of application, has been convicted of a felony or any crime involving moral
turpitude, drunkenness, driving a motor vehicle while under the influence
of intoxicating liquor or violation of any other intoxicating liquor law of
any state or of the United States.

      (6) A partnership, unless all the members of the partnership are oth-
erwise qualified to obtain a license.

      (7) A corporation, if any manager, officer or director thereof, or any
stockholder owning in the aggregate more than 25% of the stock of such
corporation, would be ineligible to receive a license hereunder for any
reason other than the citizenship and residency requirements.

      (8) A corporation, if any manager, officer or director thereof, or any
stockholder owning in the aggregate more than 25% of the stock of such
corporation, has been an officer, manager or director, or a stockholder
owning in the aggregate more than 25% of the stock, of a corporation
which: (A) Has had a retailer's license revoked under K.S.A. 41-2708, and
amendments thereto; or (B) has been convicted of a violation of the drink-
ing establishment act or the cereal malt beverage laws of this state.

      (9) A person whose place of business is conducted by a manager or
agent unless the manager or agent possesses all the qualifications of a
licensee.

      (10) A person whose spouse would be ineligible to receive a retailer's
license for any reason other than citizenship, residence requirements or
age, except that this subsection (b)(10) shall not apply in determining
eligibility for a renewal license.

      (11) A person whose spouse has been convicted of a felony or other
crime which would disqualify a person from licensure under this section
and such felony or other crime was committed during the time that the
spouse held a license under this act.

      (c) Retailers' licenses shall be issued either on an annual basis or for
the calendar year. If such licenses are issued on an annual basis, the board
of county commissioners or the governing body of the city shall notify the
distributors supplying the county or city on or before April 1 of the year
if a retailer's license is not renewed.

      Sec.  6. K.S.A. 21-3610, 21-3610a, 41-204, 41-311, as amended by
Section 1 of 2001 Senate Bill No. 178, 41-2623 and 41-2703 are hereby
repealed.

      Sec.  7. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 21, 2001.
 Published in the Kansas Register May 24, 2001.
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