Today, there will be more meetings held to discuss the Uncork bill and whether or not there might be a negotiated solution for the 3.2  issue.  These meetings were requested by the Speaker of the House and House Commerce Committee Chair.

These meetings are exploring the possibility that there could be a negotiated solution to the “crisis” expressed by the grocery and convenience stores – that changes in Oklahoma and Colorado are reducing the 3.2 products available for sale on their shelves and this will only get worse as these neighboring states implement strong beer sales in 2018 and 2019.

Discussion Concepts:

• Resolve 3.2 concerns by allowing grocery and convenience stores to sell beer products up to 5.0 or 6.0 ABV (alcohol by volume) – effective date delayed until 2019 or 2020
• Wine sales removed from the bill – not included
• Moratorium on liquor expansion legislation for ten years
• Allow liquor retailers to sell other products, including tobacco and lottery – sales of other products would not exceed 20% of overall sales except that tobacco and lottery could exceed the limitation
• Create a new definition of beer products between 3.2 ABW (same as 4.0 ABV) and 5.0 or 6.0 ABV that can be sold by both liquor retailers and cmb retailers – and include both types of retailers in the price nondiscrimination regulations for distributors   See list of products with ABV (limited)  See list 2 of products with ABV (some other than CoorsMiller and AB)

Lobbyists have been asked to meet in the office of the Speaker of the House this afternoon.

All KABR members are encouraged to participate in the KABR Teleconference at 4:30 p.m. TODAY for an update from these meetings  Call 1-877-278-8686 and enter code 809216.  Please mute your phone.  We will have an opportunity for questions and comments after the update.

Many of you have emailed your input and that is much appreciated. 

HB 2366 – Keg Registration   Read HB 2366.
This bill has not passed the House Federal and State Affairs Committee, but we expect it may be amended onto one of the following bills on the floor of the House.

Sub for HB 2277 – Common Consumption Areas    Read a description.  Read Sub for HB 2277

The bill was introduced by the House Committee on Local Government at the request of a representative of the City of Lenexa. In the House Committee hearing, a representative of the City of Lenexa and a representative of the League of Kansas Municipalities (LKM) testified in support of the bill. Written-only proponent testimony was submitted by the Lenexa Chamber of Commerce and a Lenexa business owner. Proponents stated creating a place for citizens to enjoy others’ company and to participate in civic, cultural, and social life is part of Lenexa’s Vision 2030 plan and the City intends to accomplish these goals by constructing the Lenexa Public Market, a city building that would allow the sale of alcoholic beverages and the sellers would have booths or kiosks rather than enclosed shops.  The concept is that people could carry their beverage with them throughout the common consumption area. 

The Committee established a subcommittee in order to create a bill that could allow this and also provide for liability for the holder of the common consumption area permit and the various licensed retailers or restaurants within the area.  The issue is somewhat controversial because there are other developers with an interest in allowing people to carry alcoholic beverages outside of licensed premises through areas of a city, including streets and sidewalks, and the licensed retailers would prefer to not be liable for the actions of customers once they leave their licensed premises.  The bill would allow this.

This bill continues to make licensees responsible, while allowing for the common consumption areas when a city or county passes an ordinance to allow it.  There are other requirements in the bill, including that each licensee would have to request permission to participate.

HB 2362 – ABC Modernization Fee   Read a description.  Read HB 2362.

Creates a $20 per license “modernization fee” for the Division of Alcoholic Beverage Control to be paid for each license application or renewal.  The bill would reduce the initial application fee for a liquor license from $50 to $30 plus the $20 modernization fee. The $20 modernization fee also would be added to the renewal application fee, which would remain at $10.  Fee sunsets in 2022.  “All moneys credited to the alcoholic beverage control modernization fund shall be used by the department of revenue only for the purpose of funding the replacement of the work processes, computer hardware and software and related equipment associated with the division of alcoholic beverage control's functions related to licensing, permitting and case management and supporting administrative processes, including maintenance, operation, repair and upgrade of such computer hardware, software and related equipment.”  Passed by the Committee on Appropriations March 22.