This week, the Senate Federal and State Affairs adopted amendments to SB 511 - the microbrewery bill - inserting compromise language that was forged between representatives of the microbreweries and wholesalers.  Senate leaders supervised the compromise to bridge a significant gap between the microbreweries' proposal and the wholesalers' offer.  The Director of the Division of Alcoholic Beverage Control also provided advice regarding regulatory parameters.  KABR was not present at this negotiation meeting.

The amendments:   Read the bill at this link

• Change the statutory definition of microbrewery to reduce the production limit to 30,000 (from 60,000)  Note: no Kansas microbrewery approaches these production numbers and only 4-5 make more than 1000 barrels,
• Allow a microbrewery to self-distribute to retailers, public venues, clubs, drinking establishments, caterers and temporary permit holders,
• Limit the total amount of beer and/or hard cider manufactured by the microbrewery to be self-distributed to 1000 barrels of beer and 3000 gallons of hard cider.
• Exempt from these limits product distributed to their own drinking establishments or catering businesses (at least 25% ownership) or between microbreweries/packaging facilities that are commonly owned,
• Require the microbrewery to file a written notice stating the geographic territory for such sales,
• Allow sales to the public off the licensed premises at special events regulated by the ABC,
• Add microbreweries to the statutes regulating trade practices, non-discrimination requirements, and allocations and prohibiting quantity discounts,
• Allows delivery charges to licensees under the club and drinking establishment act,

AND

• At the request of the wholesalers, amended Liquor Control Act to allow distributors or microbreweries to buy back or exchange, at the original sales price, any item of beer or cereal malt beverage that is within 30 days of its expiration date - replacing the 14 day limitation.

The amended language was inserted into Sub for HB 2124.  This action is called a "gut and go" - to remove the contents of another bill and insert new language.  Sub for HB 2124 is a bill that already passed the House in 2023.  If and when this bill passes the Senate, it will be eligible to go straight to a conference committee with the House of Representatives, rather than having to go through the committee process in the House.  

We expect the Microbrewery legislation to be debated in the full Senate next week.  We have reviewed this new language (published today) to be sure it includes the non-discrimination language that is so important for retailers.

The greatest worry for your lobbyist is how many unknown liquor amendments might pop up when the bill is debated by the full Senate next week.  There is nothing like a liquor bill on the floor of the House or Senate to bring out "great ideas".  Now is a good time to reach out to your Senator to share this concern.

Whatever is passed by the Senate is still subject to review by the House of Representatives.  Microbreweries have done a good job talking to lots of legislators in both chambers, so they are likely to be happy that the two sides crafted a compromise.  The members of the conference committee would include the Chair, Vice Chair and Ranking Minority Members of the House and Senate Federal and State Affairs Committees.

SB 253

SB 253 is still sitting in Senate Federal and State Affairs Committee - with no action planned.  The bill would allow Alcohol Home Delivery proposed by Walmart and a number of third party delivery platforms, including DoorDash, UberEats, Amazon/WholeFoods, etc.  It could be brought as an amendment on the floor when Sub for HB 2124 is debated next week - although we hope such an effort would be voted down.

Time for the 2024 Legislative Session is growing short.  First Adjournment is April 5 with legislators returning for the veto session April 27.