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Minutes for SB221 - Committee on Federal and State Affairs
Short Title
Allowing clubs and drinking establishments to sell beer and cereal malt beverage for consumption off the licensed premises.
Minutes Content for Mon, Mar 16, 2020
Chairperson Barker opened the hearing on SB221. The Revisor provided an overview on the bill (Attachment 2). Questions were asked by Representatives Ruiz and Frownfelter.
Chairperson Barker recognized Scott Schneider who testified in support of SB221 on behalf of the Kansas Restaurant & Hospitality Association (Attachment 3). He stated that this bill was introduced last year and it was passed out of the Senate committee. An amendment was added this year by the retailers which they have no objection to. He stated what they are trying to do is capture the interest in their customers' desire to have more craft beer by extending a right and privilege that the microbreweries have to drinking establishments.
Chairperson Barker recognized Amy Campbell who testified as a proponent on behalf of the Kansas Association of Beverage Retailers (Attachment 4). She stated they represent Kansas licensed retail liquor stores. SB221 would allow the retail liquor stores that are owned by Kansas citizens the ability to sell growlers and crowlers. This is an opportunity to serve the craft beer public. Craft beers are often made in smaller quantities by entities who do not have a bottling or canning line so they have limited ability to get their product out to the public. In many states this opportunity is provided through the growlers and crowlers. Growlers are refillable containers for beer, are usually made of glass and are 64 ounces and resemble a bottle or jug. The 32-ounce versions are called howlers and are sold in microbreweries today. They have logos and screw lids and keep the beer fresh for a limited period of time. Crowlers are cans that can be sealed on sight and can be taken off premises. She stated they believe selling these products in liquor stores could benefit their customers, craft brewers, and small businesses. They do not support expanded sales in the big box or convenience stores
The Chairman stated that there was written proponent testimony from Philip Bradley on behalf of the Kansas Craft Brewers Association; Kansas Viticulture and Farm Winery Association (Attachment 5); and the Kansas Licensed Beverage Association (Attachment 6).
Questions were asked by Representatives Ruiz and Highberger to Ms. Campbell.
Chairperson Barker closed the proponent portion of the hearing on SB221 and stated there were no opponents listed. He asked if there were any opponents. Seeing none, he opened the floor for neutral testimony.
Chairperson Barker recognized Bob Alderson who testified as a neutral on behalf of Casey's General Stores (Attachment 7). He stated that they are neutral because convenience and grocery stores are not included in the bill at this point, but they would like to be included. He would support the bill if there were an amendment to bring them in.
Chairperson Barker recognized Mike O'Neal, who testified on behalf of Walmart (Attachment 8). He stated that they concur with the comments and requests of Casey's. They believe these individual stores that sell cereal malt beverages should be added to the bill. If there were an amendment to include them, they would support the bill.
Tom Palace testified as a neutral on behalf of PMCA (Attachment 9). PMCA represents the independent fuel distributors and independent retailers throughout the state. They also would request that there be an amendment allowing them to be added to the bill. If there were such an amendment, they would support the bill.
Chairperson Barker recognized Debbi Beavers who testified as a neutral on behalf of the Alcoholic Beverage Control (ABC) (Attachment 10). She stated that the concerns the ABC had were resolved when the bill was heard in the Senate. Those concerns were clarifying the taxation of these products and also limiting the on-premise sales to 11:00 p.m.
Questions were asked by Representative Lusk to Ms. Campbell; Representative Clayton to Ms. Campbell and Mr. Palace; Representative Woodard to Mr. Palace; Representative Highberger to Ms. Beavers; and Representative Eplee to Mr. Schneider. With the permission of Chairperson Barker, Tuck Duncan, Kansas Wine and Spirit Wholesalers Association, stated that there is no distribution directly from a microbrewery to a retail account. It goes from the microbrewery to the distributor, and the distributor sells to the retailer, the convenience store, and the on-premises establishment. There is no change in how it is distributed.
There being no further conferees, Chairperson Barker closed the hearing on SB221.
