Kansas Association of Beverage Retailers News

2024 Election Season is Underway

Mon, 08 Jul 2024 18:59:43 GMT

Legislative seats in the Kansas State Senate and House of Representatives are up for election this year. You've probably noticed the campaigners in your local Independence Day parades and knocking doors in your neighborhood.

Kansas retailers must support legislators who support our small businesses and appreciate the important role you play in your community. Start NOW by reaching out to your local candidates, showing up to forums and asking questions. Show your support through contributions, posting signs and talking to friends, family and neighbors.

For more information, reach out to KABR and we will help to connect you and answer your questions!

Key Election Dates

Last Day to Register to Vote for Primary Election - JULY 16
Advance Primary Voting by Mail Begins - JULY 17
Advance Primary Voting in Person (CHECK WITH YOUR LOCAL COUNTY)
LAST DAY to Request an Advance Mail Ballot - JULY 30
Advance Primary Voting Ends - NOON AUGUST 5
Last Day to Register to Vote for General Election - OCTOBER 15
Advance Voting by Mail Begins - OCTOBER 16

Kansas Legislative Special Session

Tue, 18 Jun 2024 19:09:30 GMT

The Kansas Legislature reconvened for a one day special session after Governor Laura Kelly called for new tax legislation. Three major tax packages and a couple of smaller bills were vetoed by the Governor during the 2024 Legislative Session, to the frustration of Republican leaders.

The legislation passed today included compromise provisions to assure the Governor will sign this package.

Specifically, Senate Bill 1 will:

Restructure individual income tax brackets and rates to provide for a two-bracket system;
Exempt Social Security income from the individual income tax;
Increase the standard deduction and personal exemption amounts;
Reduce privilege tax rates;
Abolish the Local Ad Valorem Tax Reduction Fund and County and City Revenue Sharing Fund;
Increase the amount of the appraised value of residential property exempt from the statewide uniform school finance levy;
Increase the child and dependent care income tax credit; and
Exclude Section 1031 exchange sales from being considered valid sales for property valuation purposes.

For details link to Legislative Brief - https://klrd.org/2024/06/18/summary-of-special-session-sb-1/

Conference Committee Approves Microbrewery Compromise

Tue, 02 Apr 2024 19:01:10 GMT

Today, representatives of the House and Senate Federal and State Affairs Committees met to discuss Senate Substitute for HB 2124 - formerly SB 511 the microbrewery self-distribution legislation. The House of Representatives hasn't held any hearings on the microbrewery proposal this session, but will vote whether or not to accept the bill through conference committee agreement. The House members asked questions about the compromise language, including the background information to support numbers in the new bill.

There was specific discussion whether or not 30,000 barrels is an appropriate upper limit for microbrewery production - in other words - is it still too high to be considered "micro"? The numbers in the bill are supposed to prevent any legal challenges to the state's three-tier distribution system related to Granholm v. Heald.

Conferees accepted a proposal by Rep. Kessler to add to the legislation a required report to the Legislature from the Division of Alcoholic Beverage Control regarding microbreweries production, compliance and tax payment and reporting due January 2025.

The House representatives accepted the rest of the bill as passed by the full Senate. Many legislators have expressed relief to see the microbrewery/distributor compromise move forward. The microbrewery bill garnered a lot of attention by legislators in both chambers, as the microbrewery owners met with many legislators from across the state to promote their proposal over the past few months.

Sub for HB 2124 will:

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.

Senate Committee Advances Microbrewery Compromise - Home Delivery Not Advancing

Fri, 22 Mar 2024 17:02:55 GMT

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.

KABR Members Legislative Lunch and Meeting

Thu, 01 Feb 2024 20:07:18 GMT

When: Wednesday, February 21, 2024 11:00 AM, CST
Where: The Pennant, 915 S Kansas Ave, Topeka, KS 66612

EVENT DETAILS:

Kansas Association of Beverage Retailers: Legislative Lunch and Retailer Meeting

Wednesday, February 21 - Topeka

The Pennant, 2nd floor private room, 915 S Kansas Ave, Topeka, KS 66612

11:00 a.m. KABR Business and Policy meeting - Board Members and KABR Members

12:00 - 1:15 p.m. Legislators Luncheon - State Legislators and Retailers

Since the Beer Law, retailers have not been as active with the Kansas Legislature, but it is time to get back into action. There are many new legislators in the House of Representatives who need to see and learn from their retailers. Come to Topeka for a short business meeting and lunch with legislators.

The Senate Federal and State Affairs Committee appears likely to take action on SB 253 - the Walmart Home Delivery legislation. A House Bill was introduced to allow wine in grocery stores. Retailers must communicate with policymakers to represent our small businesses for these issues and those that will be coming up in the future.

Stick around to attend the Kansas Wine and Spirits Wholesalers Reception from 5:00 to 7:00 p.m. at the Beacon Building.

1. If you haven't already, please RSVP. We will invite your legislator(s) to the lunch if we know you are attending.

2. Contact your legislator in advance to be sure they will join you for the lunch or for a meeting in their office before or after our event.

3. Communicate with Amy to let her know that you have made contact.

Dress is business casual.

Do not wait until February 21 to reach out to your legislators! Let us know if you need help to make contact.

Contact: Amy Campbell - 785-969-1617

Information from the Senate Committee Hearing on Walmart/Third Party Delivery Legislation Friday March 10

Mon, 13 Mar 2023 14:27:58 GMT

The Senate Federal and State Affairs Committee held a public hearing on SB 253 Friday, March 10. The Committee spent most of its meeting on a different bill, leaving only 30 minutes for the hearing on Alcohol Home Delivery. Committee Chair Mike Thompson allowed ten minutes for proponents and 10 minutes for the opponents, with time also allowed for ABC Director Debbi Beavers to provide neutral testimony. Link to committee information.

KABR opposes this bill as proposed by Walmart and a number of third-party delivery platforms, including DoorDash, UberEats, Amazon/WholeFoods, etc. Our opposition rests primarily on the delivery system envisioning a large role for online/apps owned by technology companies who arrange alcohol delivery with non-employees. The platforms own and control the data and how many eyes will see the product information posted on behalf of retailers/establishments. Retailers do not control where the customers are directed by the platform. Delivery companies are not held to a comparable regulatory standard or penalties. Pushing alcohol transactions online will also increase the online traffic of illegal/unlicensed alcohol marketing - a format that has already shown a poor public safety performance and increasing illegal/counterfeit activity across the country. Further, the legislation appears to hold the retailer/drinking establishment partially responsible for the product up to the point of delivery and payment - causing serious concern.

See the recorded hearing at this link - fast forward to 11:14 to skip the first bill hearing. Link to Revisor's bill description.

See a list of conferees and their testimony below:

Proponents: Only O’Neal and Madon spoke in the time allotted.

Mike O’Neal, Walmart

Scott Schneider JD, Kansas Restaurant and Hospitality Association

Alexi Madon, Doordash

Proponents Written Only:

Ryan Bissett, Whole Foods Market

Elizabeth Patton, Americans for Prosperity

Eric Stafford, Kansas Chamber

Neutral:

Debbi Beavers, Director, Alcoholic Beverage Control Division

The Director requested amendments in her testimony.

Neutral Written Only:

Philip Bradley, Kansas Licensed Beverage Association

Tuck Duncan, Kansas Wine and Spirits Wholesalers Association

Opponents:

Amy Campbell, Kansas Association of Beverage Retailers (gave her time to the retailers to speak)

Whitney Damron, Kansas Association of Responsible Liquor Laws

Aaron Rosenow, Vern’s Retail Liquor, Topeka

Brian Davis, Davis Retail Liquor, Wichita

Phillip Cosby, State Director, American Family Action of Kansas and Missouri DUI Data

Opponents Written Only:

Philip Bradley, KS Craft Brewers Assn, KS Viticulture Farm Winery Assn, Artisan Distillers of KS

Jeff Breault, R & J Discount Liquor, Wichita

Monica Tieben, Blackjack’s Liquor, Dodge City

SB 253 would authorize the delivery of alcoholic liquor and cereal malt beverages to patrons by licensed retailers, licensed clubs, drinking establishments and restaurants, and third party delivery services. The bill would provide for the issuance of permits authorizing third-party delivery services to make deliveries of alcoholic liquor and cereal malt beverages on behalf of a licensed retailer, club, establishment, or restaurant. Such permits would cost $1,500 and be valid for one year. The bill would require that all individuals making such deliveries for a third-party delivery service permit holder be 21 years of age and have proper insurance coverage. The bill specifies that each delivery permit holder would be liable for any violation involving the sale and consumption of alcoholic liquor or cereal malt beverage that is committed by any individual conducting deliveries on behalf of the permit holder. SB 253 would authorize the Alcohol and Beverage Control Director to impose civil fines of no more than $1,000 for violations involving deliveries.

Home Delivery Bill Proposed by Walmart and Third Party Delivery Companies

Wed, 08 Mar 2023 20:50:41 GMT

The Senate Federal and State Affairs Committee will have a public hearing on SB 253 Friday, March 10. The Committee meets at 10:30 a.m. in Statehouse Room 144-S and there is another bill scheduled that day, with SB 253 second on the agenda. Read the bill.

KABR opposes this bill – proposed by Walmart and a number of third party delivery platforms, including DoorDash, UberEats, Amazon/WholeFoods, etc.

A similar bill was tabled by the House Federal and State Affairs Committee last year. The new bill does include restaurants, so there will be fewer opponents.

The bill would require that all individuals making such deliveries for a third-party delivery service permit holder be 21 years of age and have proper insurance coverage. The bill specifies that each delivery permit holder would be liable for any violation involving the sale and consumption of alcoholic liquor or cereal malt beverage that is committed by any individual conducting deliveries on behalf of the permit holder. SB 253 would authorize the Alcohol and Beverage Control Director to impose civil fines of no more than $1,000 for violations involving deliveries.

Testimony for SB 104 - Credit Surcharge Legislation

Tue, 07 Feb 2023 21:07:46 GMT

2023 SB 104 KABR Testimony for Credit Surcharge Senate FII.pdf

Testimony for HB 2170 - Distributor Sampling Change

Wed, 01 Feb 2023 21:09:20 GMT

HB 2170 KABR Testimony for HFSA Campbell Support.pdf

Retailers Lunch with Legislators - Topeka

Fri, 27 Jan 2023 20:39:36 GMT

Members of KABR are encouraged to attend a luncheon with legislators in Topeka February 15 - get to know some of the legislators who make decisions about Kansas statutes regulating the liquor industry. We know that developing relationships with our elected officials creates a better understanding of the needs of our Kansas owned small businesses.

RSVP HERE

A few bills under consideration this session would allow retailers to charge surcharges for credit processing and discounts for cash customers, change the quantity of product a distributor may sample to a retailer, and a new version of the Walmart home delivery legislation that includes third party delivery platforms.

Senate Federal and State Affairs Committee Has New Chair

Mon, 16 Jan 2023 21:15:38 GMT

It was a surprise to many when the Senate switched chairmen around just before the Legislative Session. Senate Federal and State Affairs Committee will be chaired by Senator Mike Thompson. The Vice Chair will be Senator Rick Kloos, R-Topeka.

Senator Oletha Faust-Goudeau, D-Wichita, continues to serve as the Ranking Minority Member of the committee.

Former Chair Senator Rob Olson, R-Olathe, was appointed to head up the Senate Utilities Committee instead of Federal and State Affairs.

House Appoints New Federal and State Affairs Committee Chair and Vice Chair

Mon, 16 Jan 2023 19:11:05 GMT

The Legislature kicked off today with many new faces. The House Federal and State Affairs Committee has new leadership, with Representative Will Carpenter, R-El Dorado, appointed Chair. The new Vice Chair is our own Representative Tom Kessler, R-Wichita. The new Ranking Minority Members is Representative Jo Ella Hoye, D-Lenexa. We look forward to working with the new committee. For a list of all committee members, click this link:

http://www.kslegislature.org/li/b2023_24/committees/ctte_h_fed_st_1/

Liquor Mega-Bill Headed to Final Vote

Fri, 07 May 2021 05:54:05 GMT

May 6, the Federal and State Affairs Conference Committee wrapped up negotiations and compiled three liquor bills into one, now titled the CONFERENCE COMMITTEE REPORT ON HB 2137.

The three liquor bills in conference included 11 original bills and 3 policy amendments that passed the Senate and/or House. On Friday, the combined report will go back to the full Senate and House for approval. Friday is likely to be the last day of the veto session – although it will probably be another very late night.

Here are the topics as agreed by the conference committee: HB 2137, Senate Sub for HB 2138, and Senate Sub for HB 2252

HB 2137, as amended, includes CMB cleanup language, would expand the categories of alcoholic liquor licensees who can sell cereal malt beverage (CMB), would allow temporary permit holders to sell CMB along with alcoholic liquor, would provide for the removal of CMB from the licensed premises of clubs and drinking establishments in opened and unopened containers, and would allow CMB to be consumed in common consumption areas.

The bill would also amend the Liquor Control Act to allow a person whose spouse is employed as a law enforcement officer (LEO) to be eligible to receive a liquor license. The bill would be in effect upon publication in the Kansas Register.

Sub. for HB 2138 would make changes to the Kansas Liquor Control Act and Club and Drinking Establishment Act concerning suspending, canceling, or revoking certain liquor licenses; Sundays 9 am and summer holidays separate from Sunday sales ordinances – changing days and times of sale of liquor and cereal malt beverage (CMB); and growlers / refillable and sealable containers of liquor and CMB to be sold by liquor retailers and on premise establishments with same rules as microbreweries.

Sub. for HB 2252 would amend and create law related to fulfillment house licenses, farm winery licenses, electronic submission of records by special order shipping license holders, removes residency requirements for certain liquor licenses, and allows an alcoholic liquor manufacturer to hold one drinking establishment license under certain conditions.

Added SB 126, which passed the Senate and passed the House Committee with the “pitchers amendment” added. SB 126, as amended, would modify the Club and Drinking Establishment Act by authorizing the sale of alcoholic liquor by specific organizations for special events for non-members and making clarifications concerning the sale of mixed alcoholic beverage pitchers by a public venue, club, drinking establishment, caterer, or holder of a temporary permit.

Did not add SB 2, which only passed the Senate. SB 2 would have allowed consumption of beer and wine on the Kansas state fairgrounds in expanded designated areas and credit a portion of moneys collected from the liquor enforcement tax to the state fair capital improvements fund. The House will hold a hearing next session.

Senate Adds Unfriendly Amendment to HB 2138

Thu, 08 Apr 2021 18:29:00 GMT

The Kansas Legislature is grinding its way toward spring break with First Adjournment on Friday, April 9. This week has been mostly reserved for conference committees on the bills that have passed both chambers, or were lucky enough to be dropped into a different bill that has passed both chambers. KABR still had one significant piece of legislation that still needed to clear the Senate, and that was accomplished today with Senate Sub for HB 2138 passing the Senate 33-6. Members have received an update on 2138, and the unfriendly amendment added yesterday to reverse the changes to summer holidays. KABR supports separating summer holidays from Sunday sales ordinances in order to allow liquor stores to choose to open on Labor Day, Independence Day and Memorial Day whether or not the local government has adopted Sunday sales. The grocery and convenience stores are already open and selling strong beer on those holidays. KABR will work to have the unfriendly amendment changed by the conference committee. 2138 also allows earlier hours on Sundays in areas where the local government adopts an ordinance to do so - the House version is 9:00 a.m. and the Senate version is 10:00 a.m. This will also be negotiated by the conference committee.

See more info in the powerpoint from the most recent Update for Retailers March 31.

2021 Legislative Update for Retailers

Sat, 16 Jan 2021 16:32:07 GMT

The Kansas Legislature left a number of liquor issues stranded last spring when they shut down due to COVID-19. They passed HB 2054 adopting a budget and placing restrictions on the Governor’s emergency powers. That bill was vetoed by the Governor. Through subsequent negotiations, the Legislature returned in June for a special session and passed HB 2016 – a bill providing for special allowances for restaurants and drinking establishments to sell alcohol for takeout, along with the key rules for emergency declarations and allowing local jurisdictions to override the Governor’s public safety orders. That legislation expires January 26.

SB 14 was rushed through Senate Judiciary and the full Senate last week in order to extend the emergency law through March 31 2021. We expect the House to work to take quick action as well.

Both chambers are expected to work on permanent changes to the Kansas Emergency Management Act to extend beyond the legislative session.

Statehouse access is limited this year due to the pandemic, and now, this week, due to the potential safety threats associated with protests against the Presidential Inauguration in Washington, D.C. Currently, members of the public are not allowed into the Capitol unless they have official business associated with officials inside the building.

Committees are streamed through an audio feed and on YouTube – which does provide additional access to legislative activities. However, our ability to interact with legislators and officials in the halls of the Capitol and at social events is severely curtailed.

Bills Passed by the House in 2020

- Allow a retail liquor store license to be issued to the spouse of a law enforcement officer.
- Allow a supplier (in this case, MGP of Atchison) to hold a drinking establishment license.

Bills Passed by the Senate in 2020

- Allow liquor stores to sell their products on summer holidays whether or not the jurisdiction has passed a Sunday sales ordinance.
- Growlers sold by drinking establishments and liquor stores.
- Expand Sunday sales hours to 10:00 a.m.
- Liquor stores allowed to sell and deliver cereal malt beverage products wholesale.
- Allow drinking establishments and caterers to sell cereal malt beverages without an additional license.
- Require quarterly reporting to the state by out of state wine shippers.
- Allow producers to receive a CMB retail license although in a non-zoned rural location.
- Allow a retail liquor store license to be issued to the spouse of a law enforcement officer.

New Legislation expected:

Residency Requirements – The Kansas Attorney General Derek Schmidt issued an opinion in December stating that the Kansas residency requirements for retailer and drinking establishment licenses are unenforceable as a result of the United States Supreme Court Tennessee Wine decision. Therefore, we are working with the Division of ABC to recommend reasonable revisions to the Kansas statutes.

Liquor Delivery for Restaurants – The Kansas Restaurant and Hospitality Association is seeking to pass legislation to allow them to deliver alcohol directly to customers. The legislation would allow direct delivery through their own employees or through third party online platforms such as Doordash or UberEats.

Liquor Takeout / Drive Through for Restaurants – The Kansas Restaurant and Hospitality Association is seeking to make permanent the special provisions allowing for liquor takeout and drive through that are temporarily in effect through the pandemic emergency statute.

Fulfillment Houses – Legislation has been requested by the Kansas Wine and Spirits Wholesalers Association to require fulfillment houses (entities that fill orders for online wine orders) to be licensed, in the same way that out of state wine shippers are required to be licensed and pay taxes to Kansas.

List of Legislation – select underlined items for link to more information

SB 14 - The bill would amend statutory provisions regarding the following to extend their expiration from January 26, 2021, until March 31, 2021: ● Removal of alcohol from premises of a licensed club or drinking establishment (Section 1); ● In the section of the Kansas Emergency Management Act (KEMA) governing declaration of a state of disaster emergency, provisions regarding extension of the COVID-19 state of disaster emergency when the Legislature is not in session by application of the Governor to the State Finance Council (Section 2). ● In the section of KEMA governing powers of the Governor during a state of disaster emergency (Section 4), extending provisions regarding the powers of the Governor and boards of county commissioners enacted in 2020 Special Session HB 2016. [Note: This section appears to make substantive amendments to the statute. However, these apparent substantive amendments reflect current statutory language and appear as amendments only to continue the current language beyond the original January 26, 2021, expiration date.] Effective March 31, 2021, the bill (in Section 5) would return this section to the version effective before enactment of 2020 Special Session HB 2016, removing the amendments made by 2020 Special Session HB 2016 and this bill; ● Telemedicine (Section 7); 2- 14 ● Temporary emergency licensure by the State Board of Healing Arts (Section 8); ● Temporary licensure measures for additional health care providers (Section 9); and ● Business immunity from liability for a COVID-19 claim (Section 10).

HB 2057 – Reintroduced from 2020 – Legislation to allow a supplier (in this case, MGP of Atchison) to hold a drinking establishment license.

2021 Legislative Session - Meetings Provide Online Access - Some Issues Get a Quick Start

Tue, 12 Jan 2021 15:36:30 GMT

The 2021 Legislative Session will be very unusual, with efforts to spread out in committee rooms and into the public galleries of the House chamber and limit physical access to members of the public and the press. Masks are encouraged – seemingly more in the House than the Senate – and temperatures are checked as people enter the building.

The first calendars indicate a quick start to legislative action, with the Judiciary and Tax committees already scheduled to hear bills addressing government actions relating to COVID-19 and tax legislation left hanging from the 2020 session. Some are saying that regardless of the safety efforts, leaders are anxious to get several pieces of legislation passed quickly – before illness and quarantines may keep legislators out of the building and getting the right number of votes could become a challenge. A constitutional amendment regarding abortion is expected along with possible liability protections for nursing homes.

Calendars are posted each day at https://kslegislature.org – select the third tab from the right on the blue banner. Committee meeting audio can be streamed live by selecting Audio/Video from the top edge of the home screen, click on Statehouse Live and Archive from the dropdown list. There are larger audio/video links for streaming the full House or Senate sessions mid-page on the right margin.

Full House and Senate sessions with action are to be limited this session – requiring fewer gatherings of the legislators within the House and Senate chambers. There is a plan to bring representatives into the chamber in groups when votes are required. The calendars will indicate when House or Senate deliberations are to occur. Action on bills by the full House or Senate is indicated in the calendars by a line showing up under a list of bills to be debated under General Orders.

Many interim meetings have streamed live on YouTube – subscribe to the Kansas Legislature channel. So far, it does not appear all the legislative committees will be appearing there, although the House and Senate sessions were available. However, individuals who sign up to testify in committees will be provided a link to participate with audio and video.

The first day has been a little rocky – not all the links have worked well. This means that those of us who are tracking the activities of the Legislature closely will have extra work to do.

2021 Legislative Session Begins - Elects Leadership

Mon, 11 Jan 2021 22:02:00 GMT

Monday, February 11, Kansas legislators gathered in the State Capitol to begin the work of the 2021 Kansas Legislative Session. Leadership elections were formalized – making history, as Representative Ron Ryckman, R-Olathe, is the first representative to win a third term as Speaker of the House and Dinah Sykes, D-Lenexa, is the first female elected to be the Senate Minority Leader. There were speeches and welcomes all around.

The leaders are as follows:

SENATE:

President - Ty Masterson, R-Andover

Vice President - Richard Wilborn, R-McPherson

Majority Leader - Gene Suellentrop, R-Wichita

Assistant Majority Leader – Larry Alley, R-Winfield

Majority Whip – Richard Hilderbrand, R-Galena

Minority Leader - Dinah Sykes, D-Lenexa

Assistant Minority Leader - Oletha Faust-Goudeau, D-Wichita

Minority Whip – Pat Pettey, D-Kansas City

Minority Agenda Chair - Marci Francisco, D-Lawrence

Minority Caucus Chair – Jeff Pittman, D-Leavenworth

HOUSE

Speaker – Ron Ryckman, R-Olathe

Speaker Pro Tem – Blaine Finch, R-Ottawa

Majority Leader – Dan Hawkins, R-Wichita

Assistant Majority Leader – Les Mason, R-McPherson

Majority Whip – Blake Carpenter, R-Derby

Majority Caucus Chair – Ken Rahjes, R-Agra

Minority Leader – Tom Sawyer, D-Wichita

Assistant Minority Leader – Jason Probst, D-Hutchinson

Minority Whip – Stephanie Clayton, R-Overland Park

Minority Caucus Chair – Barbara Ballard, D-Lawrence

Minority Agenda Chair – Brandon Woodard, D-Lenexa

Minority Policy Chair – Rui Xu, D-Westwood

Residency Requirements for Liquor Licenses Unenforceable According to A.G.

Fri, 11 Dec 2020 17:03:01 GMT

The Kansas Attorney General issued an opinion today declaring Kansas residency requirements for retail liquor store and drinking establishments’ licenses unconstitutional based on the ruling of the United States Supreme Court in the Tennessee Wine decision. The opinion was issued as a response to a request from outgoing state senator Julia Lynn, R-Olathe.

From his letter dated December 10, 2020, Attorney General Derek Schmidt states:

As State Senator for the Ninth District, you request our opinion on the constitutionality of residency requirements in two Kansas liquor licensing statutes in light of the decision of the United States Supreme Court in Tennessee Wine and Spirits Retailers Association v. Thomas (588 U.S. 139 S. Ct. 2449 (2019)). Specifically, you ask the following:

· Are the residency requirements for applicants for a liquor retailer license in K.S.A. 41-311(b)(1) and (2) unconstitutional under the dormant Commerce Clause?
· Is the durational residency requirement for applicants for a license to sell liquor by the drink in K.S.A. 41-2623(a)(3) unconstitutional under the dormant Commerce Clause?

Applying the reasoning of the United States Supreme Court in Tennessee Wine, we conclude that the answer to both of your questions is yes a challenge to the constitutionality of the residency requirements in these statutes would likely be successful.

We expect the Kansas Legislature will need to amend K.S.A. 41-311 and K.S.A. 41-2623 in the upcoming session. Read the full letter here.

Curbside - How? Follow-up message.

Thu, 19 Mar 2020 20:07:41 GMT

Our earlier email claimed the Governor granted the waiver. Although her office certainly gets credit for approving the measure, Director Beavers is responsible for the waiver itself. If you attended our Annual Conference last October, you know that KABR honored Director Beavers as 2019 Industry Leader of the Year for her leadership and collaborative work on behalf of the State. She has been a fair regulator and responsive to our questions and concerns.

Curbside - How?

In addition to setting up a sign for your designated "to go" pickup lane(s) or parking spot(s) within 50 feet of the store, you need a payment solution. Remember - this is a temporary option under the waiver and you will need to license this area to continue curbside service in the future.

The Kansas Association of Beverage Retailers partners with Heartland Payment Systems & Patrick Schreiner to offer you a full suite of business solutions - they can help you provide curbside service. The transaction must be completed at the store through signature or transaction.

Heartland Mobile Solutions

On-boarding Process - reach out to Patrick Schreiner at 913-748-1414 or patrick.schreiner@e-hps.com

§ Net new merchants will need to be enrolled via Atlas

§ Existing Accounts via this https://go.heartlandpaymentsystems.com/mobilepay

Also offer product for Microsoft Surface Pro with mag stripe reader.

Heartland Funding Solutions

Heartland Capital funding can happen in as quick as 24-48 hours

Qualifications

-In business for 6 months

-$100,000 or more in annual revenue

-Provide 3 months of bank statements

-Credit score of 550 or higher

Retailers do not need to be a current Heartland client to receive funding.

Contacts: Amy Campbell Email 785-969-1617

Brian Davis, President Email 316-990-1425

State Grants KABR Curbside Request

Wed, 18 Mar 2020 17:09:41 GMT

See the full memo below and be sure to read BOTH pages. There are requirements for compliance and the waiver is temporary. Curbside pickup does not allow current laws to be ignored.

Please do not hesitate to contact us for questions. Remember, liquor stores can also set up a retail model where your employees take an order at the front of the store and go pick out the products, bringing them to the front of the store for purchase. Please be careful to avoid crowding situations and limit personal contact as much as possible.

Read both pages of the ABC memo below.

Contacts: Amy Campbell

785-969-1617

Brian Davis, President

316-990-1425

Governor's Executive Order Limits Groups to Prevent Spread of COVID-19

Tue, 17 Mar 2020 23:21:10 GMT

Governor Kelly announced Executive Order #20-04 and Executive Order #20-05 to keep Kansans safe and healthy, ensuring all families are protected during the COVID-19 pandemic.

In light of the Centers for Disease Control and Prevention’s guidance released on Sunday, March 15, 2020, Governor Kelly’s latest Executive Order follows the CDC’s recommendation to limit group gatherings to no more than 50 individuals in a single area. [Kansas liquor stores are not affected as long as there are no more than 50 people within the store. Please read #20-04 linked above for all of the exceptions.]

“This is a difficult but essential step to further encourage social distancing and stem the spread of COVID-19,” Kelly said. “We must flatten the curve and hinder the spread of this disease. I urge all businesses, restaurants, bars, entertainment and recreational facilities to exercise responsible judgment and follow these guidelines.”

Kelly remains in close consultation with the Kansas Chamber of Commerce, the Kansas Restaurant and Hospitality Association, the National Federation of Independent Business Owners and the Kansas Department of Wildlife, Parks and Tourism as events unfold.

“While public health and safety must always come first, COVID-19 will undoubtedly have a devastating economic impact on Kansas small business owners and workers,” Kelly said. “I am actively engaged with the business community to identify how the state can best support Kansas businesses and their employees as we navigate this unprecedented challenge together.”

In addition, Governor Kelly asked the Kansas Corporation Commission (KCC) to suspend utility disconnects until April 15. This directive covers all electrical, natural gas, water and telecommunications utilities under the KCC’s jurisdiction. Kelly announced a second Executive Order, (E.O. #20-05) regarding utility disconnects advising the same directive for the utility companies not under the jurisdiction of the KCC.

“It’s imperative we provide relief to our most vulnerable Kansans during these unprecedented times,” Kelly said.

Kelly emphasized that certain populations are more vulnerable to COVID-19 than others, and it is imperative that all Kansans play a part in keeping communities safe.

“While all of these measures represent a dramatic change from what we're accustomed to, I know Kansans will rise to the challenge,” Kelly said.

Hospitality Industry Requests Unemployment Accommodations

Tue, 17 Mar 2020 14:18:06 GMT

The House Commerce and Labor Committee is meeting early this morning to consider legislation to expedite and expand unemployment benefits for employees affected by the abrupt changes in the economy. HB 2642 was introduced earlier this session to aid employees of Spirit aircraft manufacturing in Wichita. The legislation will be expanded to assist employees of the restaurant and hospitality industry as communities across the country are requiring those businesses to either close entirely or limit to offering takeout food. The idea is to waive the two-week waiting period for unemployment benefits and to extend eligibility to 26 weeks or more (currently 16 weeks).

The Kansas Chamber of Commerce urged the committee to be cautious and sunset the new provisions next spring in an attempt to avoid draining the unemployment fund. They called attention to the years required to rebuild the trust fund after the last recession.

KABR Asks Governor to Keep Retail Liquor Stores Open

Tue, 17 Mar 2020 13:19:29 GMT

Monday, March 17, 2020 - The President and Executive Director of KABR sent a letter to the Office of the Governor urging the State to carefully consider the impacts of shutting down retail activity unless absolutely necessary. (Read the letter.)

"We ask that potential actions relating to retail sales allow our businesses to continue to operate, recognizing that we can provide pickup services under current law – either curbside or in the store. For a store to offer curbside pickup, they must license an area of the parking lot for the transaction. (Liquor delivery is not legal in Kansas.)'

"It is possible there could be a need to waive the requirement that curbside pickup services must include licensing an area of the parking lot – perhaps allowing the Division of Alcoholic Beverage Control extra time to approve those diagrams."

Kansas Senate Takes Action on ABC Bills, Summer Holidays and Other Issues Monday Evening

Tue, 17 Mar 2020 02:50:23 GMT

Greetings from the Kansas State Capitol, where the generally snail-like pace has suddenly gained some urgency. The Kansas Senate and House of Representatives are debating some bills today and perhaps the next couple of days, with a goal of taking their spring break early. First Adjournment is supposed to occur on April 3, but last Friday House leaders were suggesting the Legislature should negotiate a stripped-down budget over the weekend and leave town. The Senate did not agree, so legislators went home for the weekend and returned to action today.

KABR supports several bills and we are working to have these items amended into other legislation that is moving in order to have a better chance of passage. The following reports may seem confusing, but it is a matter of jumping onto any train that is moving.

The Senate passed three bills with amendments that now must go to the House of Representatives or be adopted in a conference committee:

SB 417 – Requested by VFWs, would allow a Class A club licensee to offer for sale, sell, and serve alcoholic liquor for consumption on the licensed club premises by persons who are not members, their families, or guests during an event. Today, a Class A club can only host events with alcohol for members. SB 417 passed 38-0 on Emergency Final Action.

Adopted an amendment offered by Senator Suellentrop to add HB 2672, a bill to allow Clubs and Drinking Establishments to sell CMB (cereal malt beverages) without obtaining a local CMB license. Bill was requested by the Kansas Beer Wholesalers Association. The same privilege is already extended to liquor stores under the 2017 Beer Law.

This included the KABR amendment to include the Liquor Store CMB Wholesale language. This amendment was negotiated with the KBWA and approved by the House Federal and State Affairs Committee just this morning.

WHAT IS THE LIQUOR STORE CMB WHOLESALE AMENDMENT? This is an amendment to add cereal malt beverage on-premise licensees to the list of licensees that can purchase product from a retail liquor store with a federal wholesale permit. SAME AS Clubs and Drinking Establishments do today.

Currently, retail liquor stores may obtain a federal wholesale permit for purposes of selling and delivering product to on-premise liquor licensees.
The current statute does not include permission for the retail liquor store with a federal wholesale permit to sell and deliver product to the CMB on-premise retailers.
The product would be limited to cereal malt beverage and beer containing not more than 6% alcohol by volume – the products that can be sold by CMB on-premise retailers to the public.

Since the implementation of the Beer Law in April 2019, our members have reported requests from CMB on-premise establishments – these have been small taverns / restaurants – asking to purchase small amounts of beer for resale. The liquor store must turn away this purchase because it would be illegal to sell the product to a restaurant for re-sale when the Liquor Control Act does not specifically allow that sale by the liquor store. We do not anticipate that liquor stores will be pursuing a large number of these accounts, as most are served by beer distributors who also offer services for their taps and keg lines. However, when taverns need small amounts of product, they should be able to turn to their local liquor store with a federal wholesale permit to fill that need, just as other on-premise clubs and restaurants do today.

SB 432 – ABC Legislation to require quarterly online reporting by out of state wineries in order to be sure that the information provided by shippers (UPS/Fedex) can be crosschecked with the out of state winery information. This will help to collect the taxes due and to reveal illegal operations. SB 432 passed 39-0 on Emergency Final Action.

Senator Rob Olson offered an amendment to add contents of SB 456, that passed the Senate Federal and State Affairs Committee last Thursday. Part of SB 456 is time sensitive because retailers do not want to be closed on a summer Saturday for Independence Day. KABR is recommending this change.

What is SB 456? SB 456 extends earlier Sunday sales hours to liquor stores and CMB retailers (grocery or Sunday sales ordinances altogether. It also has a piece to allow a producer to hold a CMB permit.

Sunday Hours

Optional earlier Sunday hours were requested by liquor stores and CMB retailers – the issue mostly comes up to be able to serve customers before noon football games and those who are heading to lunch gatherings, family picnics, etc. It is a particular issue for those stores within driving distance to the Missouri border. (Missouri passed earlier hours immediately when Kansas passed Sunday sales.)
Continues to provide for local option ordinances or elections to enact Sunday sales.
Continues to provide for a uniform Liquor Control Act by allowing the same process for all cities/counties.
The ABC had suggested doing away with the local ordinances and making all days the same – 9 a.m. to 11 p.m. with the option for shorter hours, but the parties agreed not to go that far

Summer Holidays

Fixes a problem for liquor store owners who are supposed to close on Saturday, July 4 2020 while their competition - grocery stores and convenience stores - are selling beer. Expecting a store to be closed on July 4th this year will cost that owner significant business.

Why Does This Happen?

Current law requires cities to choose to pass an ordinance FOR Sunday sales and summer holiday sales for liquor store retailers and CMB retailers (grocery stores and convenience stores).

If they choose to NOT allow Sunday sales, they are supposed to pass an ordinance to prohibit CMB retailers from selling on those summer holidays. This was part of the original Sunday sales law but it does not seem to be happening. This is not fair.

Passing this amendment will assure that these summer holidays are equally available to liquor store retailers and CMB retailers.

No Change for Most Cities for Days of Sale: Most cities have passed the Sunday sales ordinance and allow summer holiday sales plus Sunday sales for both liquor store retailers and CMB retailers and are not affected by the holidays portion of the bill.

Yes to Local Option for Sunday Sales: Cities will continue to choose whether or not to allow Sunday sales by local option (with the new optional no earlier than 10:00 a.m. time). The summer holidays are removed from that process.

More Equality for Days of Sale: Grocery and convenience stores will continue to operate with longer daily hours and liquor stores will continue to be closed on Thanksgiving and Christmas. BOTH are required to be closed on Easter and any time one of these holidays (Independence Day) falls on a Sunday in an area where Sundays are prohibited.

CMB Permit Section – added by the committee to allow any licensed producer (of grapes, honey, fruit for wine making) to get a local CMB permit to sell cmb and beer less than 6% alcohol by volume at their premises/events. Legislature already allowed producers to sell their own product at their place of business in previous session.

SB 433 – ABC Bill amends the Kansas Liquor Control Act and Club and Drinking Establishment Act by providing that violation of any lawful order issued by the Director (Director) of Alcoholic Beverage Control (ABC) would be a reason the Director could suspend, involuntarily cancel, or revoke any license issued under those Acts.

Expecting an amendment to add a provision allowing a caterer’s/on-premise license to be issued to a person whose spouse is a law enforcement officer under certain conditions.

SB 433 passed 30-9 during Emergency Final Action.

House Committee Advances Growler Bill - Rejects Walmart / Convenience Stores Amendment

Mon, 16 Mar 2020 15:45:21 GMT

House Committee Advances Growler Bill

Monday morning, the House Federal and State Affairs Committee voted to pass SB 221 – the Growler and Crowler Bill – to expand sales of these products to restaurants and drinking establishments and liquor stores. SB 221 was passed with amendments to allow liquor stores with a federal wholesale permit to sell to CMB on-premise licensees and allow clubs and drinking establishments to sell CMB without requiring a CMB license (HB 2672). An amendment to allow Walmart, convenience stores and all CMB retailers to sell growlers and crowlers was rejected by the committee.

The hearing on SB 221 included proponent testimony from Scott Schneider of the Kansas Restaurant and Hospitality Association, Amy Campbell for the Kansas Association of Beverage Retailers, and Philip Bradley for the Craft Brewers and KS Licensed Beverage Association.

See KABR Testimony here.

Representatives of Walmart, Casey’s General Stores and the Petroleum Marketers and Convenience Stores Association then testified as neutral parties, but asked to be added to the legislation in order to allow big box, grocery and convenience stores to be able to sell growlers. They said they would change from neutral to supporting if added to the bill.

Debbi Beavers, Director of Alcoholic Beverage Control, testified neutral on the bill and called attention to Senate amendments that were made to address what tax would be paid by the restaurants/drinking establishments (10% drink tax) and to limit sales to 11 p.m. under the bill.

With the Legislature planning to shut down this week for an early spring break, there are not many bills that have been passed by both the House and Senate during the 2020 session. SB 221 has passed the Senate and could be on its way to passing the House. That is important because legislation must have passed both chambers to go to conference committee. Legislation that has passed just one chamber can be added into a conference committee, but you need a main bill. This means there is a shortage of “vehicle” legislation that can be used to craft the “mega-liquor bill” we have become accustomed to seeing at the end of each session.

Senate Committee Amends SB 456

Thu, 12 Mar 2020 18:33:18 GMT

The Senate Federal and State Affairs adopted amendments to SB 456, changing the adjusted sales time for beer wine and spirits on Sundays to "no earlier than 10 a.m.", amending the language in current law regarding local ordinances and elections, and removing summer holidays from the local ordinance process.

Parties who testified on the bill including KABR, KARLL, the Kansas League of Municipalities, Division of ABC, and the convenience stores group negotiated amendments since the public hearing a week ago.

The first amendment allows local option to extend earlier Sunday sales hours to liquor stores and CMB retailers (grocery and convenience stores) to begin no earlier than 10:00 a.m. The initial bill allowed for 9 a.m. and had elicited concerns about uniformity.

Earlier Sunday hours were requested by liquor stores and CMB retailers – the issue mostly comes up to be able to serve customers before noon football games and those who are heading to lunch gatherings, family picnics, etc. It is a particular issue for those stores within driving distance to the Missouri border. (Missouri passed earlier hours immediately when Kansas passed Sunday sales.)
Continues to provide for local option ordinances or elections to enact Sunday sales.
Revisor believes the amendment continues to provide for a uniform Liquor Control Act by allowing the same process for all cities/counties.
The ABC had suggested doing away with the local ordinances and making all days the same – 9 a.m. to 11 p.m. with the option for shorter hours, but the parties agreed not to go that far. Several legislators were not supportive.

Another amendment deletes references to summer holidays - Memorial Day, Independence Day and Labor Day.

The KABR requested this amendment to fix a problem for liquor store owners who are supposed to close on Saturday, July 4th 2020 while their competition - grocery stores and convenience stores - are selling beer. Expecting a store to be closed on July 4^th this year will cost that owner significant business.

WHY?

Current law requires cities to choose to pass an ordinance FOR Sunday sales and summer holiday sales for liquor store retailers and CMB retailers (grocery stores and convenience stores).

Passing this amendment assures that these summer holidays are equally available to liquor store retailers and CMB retailers.

NO CHANGE FOR MOST CITIES: Most cities have passed the Sunday sales ordinance and allow summer holiday sales plus Sunday sales for both liquor store retailers and CMB retailers and are not affected by this amendment.

YES TO LOCAL OPTION FOR SUNDAY SALES: Cities will continue to choose whether or not to allow Sunday sales by local option (with the new optional 10:00 am time). The summer holidays are removed from that process.

EQUAL DAYS OF SALE FOR BOTH LIQUOR STORES AND CMB RETAILERS (Grocery and Convenience Stores) although the grocery and convenience stores will continue to operate with longer daily hours.

COMPLY WITH THE BEER COMPROMISE? Participants have assured that hours of sale are not an issue of concern - especially as the amendment does not add days or hours for liquor stores that would be more than what the CMB retailers are already allowed.

SB 456 Would Allow Earlier Hours on Sundays for Liquor Stores

Tue, 03 Mar 2020 19:25:47 GMT

SB 456 as introduced would allow earlier operating hours on Sundays for the sale of liquor, wine and beer in liquor stores. The bill was requested by the Kansas Association for Responsible Liquor Laws. The bill changes current law to allow for sales beginning at 9 a.m. on Sundays in those areas where Sunday sales have been approved by local ordinance or election.

KABR is interacting with a number of other organizations to talk about amending the bill.

KABR Members Discounted Registration at BARC 2020

Fri, 28 Feb 2020 17:40:57 GMT

LINK TO BARC 2020 AUSTIN, TEXAS -- June 8-10, 2020

NOW IN ITS FOURTH YEAR, the Beverage Alcohol Retailers Conference is the only national event that provides off-premise retailers the opportunity to gather together, network with colleagues and share best practices to improve their businesses. KABR members can register at a $200 discount using promo code BARCPARTNER. If you intend to take advantage of this deal, please be sure your KABR membership is current.

Join the Beverage Dynamics team and retailers from across the country in Austin, Texas, June 8-10 for another education-first BARC. The track sessions, panel discussions and keynote presentations provide valuable educational material, which will make leaving your store for a few days worthwhile.

Top 100 Retailers

In 2020, Beverage Dynamics will once again recognize retailers from throughout the country who demonstrate innovation, excellent customer service and superior beverage alcohol industry knowledge. Will your store make the list?

Nominations for the 2020 Top 100 Retailers awards are now open!

Retailer Entry Forms (for retailer use).

Nominate Someone Else (industry member use).

Winners will be honored at the Beverage Alcohol Retailers Conference in Austin, and featured in the July/August 2020 issue of Beverage Dynamics.

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Senate Committee Passes SB 221 to Allow Liquor Stores and Restaurants to Sell Growlers

Mon, 24 Feb 2020 19:56:39 GMT

SB 221 was introduced last year at the request of the Kansas Restaurant and Hospitality Association to expand growler sales to restaurants (clubs and drinking establishment licensees). The Kansas Senate has passed the bill, and it now goes to the House of Representatives for consideration.

KABR requested an amendment to include retail liquor stores, and the bill was passed as amended by the Senate Federal and State Affairs Committee.

See the Legislation AT THIS LINK.

If passed by the Senate, the bill must go to the House of Representatives for further action.

Kansas liquor stores are eager to find options to attract and retain customers following the implementation of the Beer Law last April, that shifted a large portion of beer sales to grocery and convenience stores. There are 26 fewer liquor stores licensed today than in 2017 – the year the Beer Law was passed by the Legislature.

What are we talking about? Growlers are refillable containers used for beer. Most often, these are made from dark brown glass and are 64oz. They resemble a larger bottle or jug. The smaller 32oz versions are called howlers. Sold only at Kansas microbreweries today, you’ll find these at breweries with their logo on them. They have metal screw lids and are quite simple in appearance and function. In addition to glass, there are growlers made from stainless steel and other materials that keep the beer cold and fresh longer. Crowlers are quite a bit different but accomplish the same goal. They are 32oz cans that can be filled and sealed onsite. Just like a normal sized can; once opened, it can’t be resealed so it should be consumed immediately.

We believe that selling these products in retail liquor stores could be a benefit to our customers and craft brewers, as well as our small businesses.

Another amendment added by the Committee will help to avoid unintended consequences. Our members expressed concerns about legislation that might provide late night drinkers with a “to go” option just before closing time at the local watering hole. We do not want to see this become a literal option for “one more for the road”. The amendment will limit sales to 11 p.m. – as recommended by the Director of Alcoholic Beverage Control.

2019 Industry Leader of the Year

Sun, 06 Oct 2019 12:52:54 GMT

The Kansas Association of Beverage Retailers presented the 2019 Industry Leader of the Year Award to Debbi Beavers, Director, Division of Alcoholic Beverage Control at the KABR Annual Conference. Kansas retailers appreciate the Director's responsiveness and collaborative service and leadership in 2019 and prior years. (Pictured Director Debbi Beavers, right, and Amy Campbell, KABR Executive Director, left,)

Meet KABR Partner 3x3 Insights - Members Sign Up Free

Thu, 03 Oct 2019 10:05:28 GMT

3x3 is committed to making your liquor store smarter; And, as a KABR member, you can sign up for free!

To claim your free membership and learn more about how 3x3 can help you grow your bottom line, please attend our special CEO presentation at the annual KABR meeting Saturday, October 5, 2019.

We deliver critical insights to independent retailers through DataBar™, our easy-to-use dashboard, which goes beyond the capabilities of any POS system to help you:

Run more successful promotions
Drive bigger baskets and higher sales
Better understand trends in your local market
Earn new and loyal customers

Interested in speaking with a 3x3 team member at the event? Make sure to click the link to schedule a time to chat with our Director of Retail Partnerships, Emily Newton.

Schedule A Time To Chat

See you all this weekend!

Sincerely,

The 3x3 Insights Team

Emily Newton

Director of Retail Partnerships

c - (401) 862-8424

o - (646) 442-5829

Meet KABR Partner Heartland Payment Systems

Mon, 30 Sep 2019 10:31:57 GMT

The Kansas Association of Beverage Retailers has partnered with Heartland & Patrick Schreiner to offer you a full suite of business solutions to help your business provide impressive service and establish strong connections with customers. This decision was based on Patrick’s long history with the industry – more than 18 years in Kansas - and strong reputation for personal service. Heartland & Patrick support locally owned businesses, and understand your needs and concerns.

Convenient, fast, cost effective & customized to your needs payment processing
Payroll and HR
Valuable customer engagement tools
Gift & loyalty card programs
POS integration - Cheers, EZSpirits, Cloud Retailer, Liquor POS, PC America and many more
Helpful analytics
Lending
Local partners

To learn how Heartland Payment Systems & Patrick can help your business grow and thrive, call 913-748-1414 or e-mail patrick.schreiner@e-hps.com today. In addition to working for your Kansas business, the Heartland partnership will provide support to the Association and its member programs and advocacy.

Fewer Liquor Stores but Mixed Report on Tax Receipts

Thu, 19 Sep 2019 13:35:56 GMT

Since the Beer Law became effective April 1, we have been watching the numbers to see what they can tell us. The Division of ABC reports the number of liquor store licenses have gone down from 748 in January 2019 to 727 in September 2019. This is a downward trend that started two years ago when the law was passed. There were 761 licensed liquor stores in 2017. Tax data is not as straightforward. A report of enforcement tax receipts by county seems to show that liquor store sales are down when comparing June and July 2019 to June and July 2018. However, different numbers were reported at the Legislative Budget Committee meeting. We are pursuing answers from the Department of Revenue and will continue to monitor this data. KABR members will be updated as new information becomes available.

Violations of the Liquor Control Act and the Cereal Malt Beverage Act can be reported directly to the Division of Alcoholic Beverage Control through the website https://www.ksrevenue.org/abcindex.html. We are aware of numerous instances of pricing violations addressed by the agency.

Elevate Your Retail Game: Join Retailers in Wichita for Education and Decision-making

Wed, 04 Sep 2019 01:38:59 GMT

By now, you have already received information about the annual conference in your inbox – but if you are a little behind with your email, you should check out the enclosed flyer! You won’t find a more convenient and affordable opportunity for off-premise retailers to gather together, network with colleagues and share best practices to improve their businesses. In one day, you can get employee training, business education, and get your questions answered by the Division of Alcoholic Beverage Control (ABC). This is also your opportunity to hear from state legislators about what is happening at the State Legislature and add your voice to decisions being made about future law changes.

See more at www.kansasretailer.org or register now at https://kaobr.wildapricot.org/event-3546881

Supreme Court Strikes Tennessee Residency Law

Mon, 01 Jul 2019 12:42:06 GMT

The Supreme Court struck down the Tennessee 2-Year residency requirement applicable to retail liquor store license applicants. They held that it violates the Commerce Clause and is not saved by the 21^st Amendment. The ruling states that “protectionism” is not a legitimate state interest to allow skirting the nondiscrimination requirement of the Commerce Clause. And so – we now know that this court does not consider the 21^st Amendment enough to protect all state liquor laws. This means that the Kansas residency law is at risk and we will have to be prepared for action during the 2020 Legislative Session. Additionally, it could open the door to challenges by out of state retailers who want to be able to ship into states that allow in state retailers to ship product.

The good news is that the decision cites examples of other kinds of state laws that can be used for the purposes of meaningful liquor regulation without discrimination, such as limiting both the number of retail licenses and the amount of alcohol that may be sold to an individual, mandating more extensive training for managers and employees, or monitoring retailer practices and taking action against those who violate the law.

BARC 2019 - Learning from Retailers Across the Country

Mon, 01 Jul 2019 10:44:03 GMT

The 2019 Beverage Alcohol Retailers Conference was full of interesting information – we will be sharing some of the highlights over the next few weeks.

The opening keynote was provided by David Jabour, owner of Twin Liquors. They have 80 stores in Texas. It is always fascinating to see that the bigger stores face many of the same operational challenges as smaller stores.

Twin Liquors began as a single neighborhood store. Jabour’s father was in the business and had a twin brother. The chain was actually started after his father retired from his original store, and missed the business. David and his sister now run the company – keeping it a family business. Jabour shared his ideas in response to a number of one-on-one questions.

On pricing - value doesn’t mean price alone. Liquor stores can sell below cost in Texas, but Twin Liquors tries not to do that. It is important to add value to the product. Value equation is different in every market. Need to be competitive, but what does the store offer? How excited is the customer to shop with you? If they are just shopping with you for low prices, the consumer will easily go to the next guy. Shoppers want to be connected to “their” store.

Changes in Texas – certainty that we all have is that all of the laws under the 21^st amendment will continue to be challenged. As retail focuses on the beverage alcohol category, pressure will increase. Historically, the laws have focused on safe regulated sale of the product, which has created some very good laws for our industry. Walmart is challenging a number of our laws in Texas – and moved in federal district court. In late April, became an Appellate Fifth Circuit case. Very interesting. Will get a decision from that in the next few months. We will see what that brings, but it could be an overnight change in our state. We have to be prepared for that. What does that mean? Always try to be the best that you can be.

Courts are changing the rules. Tennessee – first spotlight in Tennessee – more and more is going on in the courts more than the statehouses. That is going to continue. (Tennessee is the residency case.)

You have to be involved in your state trade associations. ABL provides an amazing conduit for all of us to dialogue in a format that exchanges issues and best practices among the states. If it is going on in another state, it is likely to come to your state. We are all here because of those state trade associations that have put good laws in place for our industry throughout the years. Jabour is an ABL board member. Stay involved. Stay engaged in trade associations.

BARC is also a great venue to exchange best practices. Not necessarily just state laws, but other challenges and opportunities that we have. Things that we are doing here today make us better. The more that we can communicate, the more we share best practices, and we can pick up valuable lessons from others.

"We know that beverage alcohol is at its best with independent retail. We do not want to be a dying breed, we want to be a thriving breed."

Will Twin Liquors expand to other states? Texas is a big state. Not really looking to invest outside of that. The moment you quit investing in growth is the moment you are slipping behind. We continue to look to invest in growth / acquisitions as they come to us. We have never acquired a company where we were looking to grow. Maybe it was a family business that didn’t have a succession in place or didn’t want to continue to run the business. We’ve never gone out and aggressively pursue those acquisitions, they have come to us.

Choices to add services or locations come down to answering consumer demands. If the consumer wants it, then we are going to look at it – part of our business plan is to respond to the consumer demand.

Some of the new technologies and strategies in the business are disruptive to our current business model, how do you address those challenges? We want to be prepared to respond to change, but the challenges are the disruptions. The current regulated model works today and we need to continue to convince politicians and judges that it works well and why it is important. At the same time, we have to recognize what our customers want and will support. Be prepared for change.

Today, every consumer wants everything now. That mentality gets going and the confluence of that with the three tier system looks like tectonic plates merging. It creates tremors and we have to try not to build on a fault line. That’s what disruption is. We have to be prepared to have those conversations with our elected officials. Most of them want to help – we are the face of the communities we serve and they want us to be there and to provide jobs. They have conflicting pressures on them, so you have to be there to educate them.

Ultimately, it has been fun to build from one little 700 foot store into the current company. But it is about more than that. We have built brands and other things. We’ve been part of this industry going back to Prohibition. It is all about how to make this industry better. Take a brand like Tito’s. I can think back to the infancy of Tito’s and how we helped to grow that brand. That is one of the fun things. Told story about encouraging Tito to resist the urge of getting into flavors. And he did - think that was a good decision. Deep Eddy is a growing brand. Remember when it had base flavor and sweet tea. Was thinking about their flavors, habanero and lime were considered – he urged them to do the Texas Ruby Red Grapefruit – loved sharing the ideas, knew it could grow and be popular. That was a fun thing to do – to share those ideas and see them succeed. Takes all of us to make it better and do that ten fold over. One conversation at a time.

The Q & A with David Jabour was very interesting. Hope you find something of interest to take from these notes! We will share more from the conference in upcoming communications.

Governor Kelly Signs Bill Supporting Licensed Retail Liquor Stores

Fri, 05 Apr 2019 23:21:34 GMT

Apr 5, 2019 https://governor.kansas.gov/governor-kelly-signs-bill-supporting-licensed-retail-liquor-stores/

Encourages Kansans to continue to shop local, signs five additional bills yesterday

Kansas Governor Laura Kelly signed several bills yesterday, including one that provides support to local licensed retail liquor stores and the Kansas citizens who own them.

“Throughout my years of serving in the Legislature, I have supported our licensed retail liquor stores and the Kansas citizens who own them,” Kelly said. “I know that April 1 has brought new challenges as well as new opportunities for these small Kansas-owned businesses.”

House Bill 2035 simplifies the tax duties of licensed retail liquor stores, as it relates to the sale of cereal malt beverages and strong beer products. It also provides for uniform law enforcement under the New Beer Law that became effective on April 1, 2019. This legislation will become effective upon its publication in the Kansas Register.

“I encourage Kansas shoppers to continue to choose to shop at local businesses where the profits and tax dollars support the local economy,” Kelly said.

Division of Taxation's Notice to Retail Liquor Stores regarding Taxation of Cereal Malt Beverage Products

Wed, 03 Apr 2019 22:46:22 GMT

KABR is asking Governor Kelly to expedite signing HB 2035 which was passed by the Legislature late last week so it can be published in the Kansas Register - triggering its effective date. HB 2035 establishes the tax rate for cereal malt beverages by a retail liquor store at the 8% enforcement tax rate - equal to the tax paid on other alcoholic beverage products. This bill also provides for uniform law enforcement under the new Beer Law that become effective April 1. This bill is basically another trailer bill for 2017 Sub for SB 13 - the Beer Law. KABR, KWSWA, Division of ABC, Kansas Association of Chiefs of Police, the Kansas Sheriff's Association and the Kansas Peace Officers Association had lobbied for the bill to be final prior to April 1, but there was a delay for House concurrence.

The Division of Taxation sent a notice Tuesday night telling retail liquor stores to charge sales tax on cereal malt beverage products until this legislation is implemented (on publication in the register). Currently, liquor stores pay enforcement tax on all beer, wine and spirits products. This is an issue for programming point of sale systems and recordkeeping. This is, of course, evidence that cereal malt beverages have not "gone away" as advertised by the Uncork proponents.

Additionally, any charges filed by a local law enforcement officer and submitted to the Division of Alcoholic Beverage Control since April 1 could be challenged because HB 2035 was not final prior to the April 1 rollout of the Beer Law.

We will let you know as soon as the bill is signed, but in the meantime, liquor stores must collect sales tax on the sale of any 3.2 products (cereal malt beverages). It may be worthwhile to keep these products off the sales floor until the bill is published in the Kansas Register.

From: KDOR_ABC Email [mailto:KDOR_ABC.Email@KS.GOV]
Sent: Tuesday, April 02, 2019 4:47 PM
Subject: Division of Taxation's Notice to Retail Liquor Stores regarding Taxation of Cereal Malt Beverage Products

NOTICE TO RETAIL LIQUOR STORES

2019 H.B. 2035 amends K.S.A. 2018 Supp. 41-308 to provide that all alcoholic liquor, cereal malt beverage and nonalcoholic malt beverage sold by a holder of a retail license shall be subject to the liquor enforcement tax imposed by K.S.A. 79-4101. This change is effective April 1, 2019 and upon publication of the act in the Kansas register. Until such time as such publication occurs, holders of a retail license shall continue to collect retailers’ sales tax on the sale of cereal malt beverage. On the day of publication of the act, liquor enforcement tax shall be collected on such sales.

Kansas Department of Revenue - Alcoholic Beverage Control

Mailing Address: Mills Building , PO Box 3506 , Topeka , KS 66601 -3506

Physical Address: 109 SW 9th Street , 5th Floor, Topeka , KS 66612

Phone: 785-296-7015

Fax: 785-296-7185

Email: KDOR_abc.email@ks.gov

Website: www.ksrevenue.org/abc.html

Facebook: www.facebook.com/KansasAlcoholicBeverageControl

Members Register for BARC 2019 - Get 50% Off

Sun, 10 Feb 2019 22:19:49 GMT

NOW IN ITS THIRD YEAR, the Beverage Alcohol Retailers Conference is the only national event that provides off-premise retailers the opportunity to gather together, network with colleagues and share best practices to improve their businesses and KABR members are eligible for a 50% discount registration using the promo code PARTNER. https://bevretailersconference.com/

Join us in Louisville on June 10-12 for another education-first BARC, where you’ll meet our contributors, editors and our most avid readers. Our track sessions, panel discussions and keynote presentations will all provide valuable educational material, which will make leaving your store for a few days worthwhile. Over the past two years, the event has grown by 20% in attendance. If you have attended in past years, we hope to see you in Kentucky next year, as we have some unique opportunities you will only find at BARC. If you’re new to BARC, please consider joining us in 2019!

Top 100 Retailers

In 2019, Beverage Dynamics will once again recognize retailers from throughout the country who demonstrate innovation, excellent customer service and superior beverage alcohol industry knowledge. Will your store make the list?

Nominations for the 2019 Top 100 Retailers are now open through the end of February.

Winners will be honored at the Beverage Alcohol Retailers Conference in Louisville on June 12, and featured in the July/August 2019 issue of Beverage Dynamics.

ABC Resources for Retailers Preparing for Beer Sales Change April 1

Mon, 21 Jan 2019 21:39:15 GMT

Retailers are preparing for change on April 1 2019, when the laws regulating the sale of strong beer in Kansas will change. CMB retailers will be able to sell beer up to 6.0% ABV and liquor retailers will be able to offer other products besides alcoholic liquor. Depending on your perspective, this change may be welcome, or you may be dreading the experience. Many retailers are making changes to ease the transition and hope to carve out a new space in the retail market.

KABR hosted its annual conference in October, featuring education regarding the upcoming changes to Kansas beer sales and strategies for retailers. Since then, AB Inbev and Coors/Miller have hosted retailer gatherings to share information about the transition and what to expect. Debbi Beavers, Director of the Division of Alcoholic Beverage Control, participated in these events and shared the presentation linked below to help retailers navigate the changing rules. The information has been updated as new questions have come forward.

Remember, KABR is in regular contact with the Director and others in the industry. If you have questions or concerns, please do not hesitate to contact us and we will do our best to get what you need.

CHANGING BEER SALES IN KANSAS - ABC Presentation

ABC RETAILERS HANDBOOK - Updated 2018

INDUSTRY NOTICE January 2019

Primary Election Results Final

Fri, 31 Aug 2018 21:14:15 GMT

The State Canvass Board met on the 31st to approve primary election results. Secretary of State Kris Kobach won the Republican primary for the Governor's race by 343 votes, as the final canvass expanded his lead over current Governor Jeff Colyer. This sets up a three way contest between Kobach, Democrat Senator Laura Kelly, and Independent Greg Orman. Current polls put Kobach and Kelly very close.

Seven House incumbents lost their seats in the primary: Patty Markley (R-Overland Park), Joy Koesten (R-Leawood), Don Schroeder (R-Hesston), Mary Martha Good (R-El-Dorado), Anita Judd-Jenkins (R-Arkansas City), John Whitmer (R-Wichita) and Steven Becker (R-Buhler) lost their seats. See Primary Election Results Here.

Primary Election Results Delayed Overnight by Johnson County, Many Close Races

Wed, 08 Aug 2018 17:35:34 GMT

Delays in tabulating the votes in Johnson County forced election watchers to wait until 8 a.m. today to get the unofficial results of the Republican primary race for Governor. Results are still unofficial, with recent mail-in ballots, provisional ballots, and some hand counted ballots not yet included.

Does your vote count? Take note of incumbent State Representative Steve Becker of Buhler who appears to have lost his seat by one vote.

The posted results show Secretary of State Kris Kobach winning the primary by a very narrow margin of 191 votes out of 311,009 recorded votes. Although the election has been called, Governor Colyer is not yet conceding the race, releasing a statement this morning saying that with, "the presence of thousands of as yet uncounted provisional ballots and the extraordinary problems with the count, particularly in Johnson County, this election remains too close to call."

Senator Laura Kelly won the Democrat primary with more than twice the votes of the closest challenger.

Republican Primary - Governor

R-Jim Barnett

27,449

R-Jeff Colyer

126,066

41%

R-Kris Kobach

126,257

41%

R-Patrick "PK" Kucera

3,123

R-Tyler Ruzich

2,217

R-Ken Selzer

24,356

R-Joseph Tutera Jr.

1,541

Democrat Primary - Governor

D-Arden Andersen

12,845

D-Jack Bergeson

3,850

D-Carl Brewer

30,693

20%

D-Laura Kelly

78,746

52%

D-Joshua Svaty

26,722

18%

Watkins wins Republican Primary for 2nd District US House of Representatives. Steve Watkins, a former Army Ranger and a newcomer to Kansas politics, has defeated three state senators, a state representative, and a former Speaker of the House to be the Republican candidate for the 2nd District Congressional seat retired by Rep. Lynn Jenkins. Watkins beat Senator Caryn Tyson with a hefty campaign account primarily funded by his father. Read the KC Star article here. Watkins will now face former Rep. Paul Davis (D-Lawrence) who ran for Governor in 2014.

R-Vernon J. Fields

1,950

R-Steve Fitzgerald

9,098

12%

R-Kevin Jones

12,033

16%

R-Doug Mays

6,135

R-Dennis Pyle

8,997

12%

R-Caryn Tyson

17,499

23%

R-Steve Watkins

19,753

26%

The incumbents won the other congressional primary races (Marshall, Yoder, Estes). There was a close Democrat primary to select the candidate to challenge Kevin Yoder in the general election, with Sharice Davids emerging as the winner. Davids is Native American, a mixed martial arts fighter and openly LGBT. Read article here. Democrats believe Yoder's seat could be vulnerable in the November election.

Democrat Primary for 2nd District Congress

D-Sharice Davids

22,891

37%

D-Mike McCamon

4,243

D-Tom Niermann

8,740

14%

D-Jay Sidie

1,748

D-Brent Welder

20,803

34%

D-Sylvia D. Williams

2,896

Insurance Commissioner:

R-Vicki Schmidt

148,936

52%

R-Clark Shultz

137,636

48%

Schmidt will run against Nathaniel MacLaughlin (D-Kansas City) in the general election.

Secretary of State:

R-Randy Duncan

56,214

20%

R-Keith Esau

27,810

10%

R-Craig McCullah

31,854

12%

R-Scott Schwab

106,569

38%

R-Dennis Taylor

55,672

20%

Schwab will face Brian "BAM" McClendon, a software designer, developer and engineer with connections to Google Earth and Uber, for the general election in November.

No More Campaigning: There are 16 statehouse races that had only a primary race – in other words, the winning candidate has no general election opposition filed for the seat. 12 of these are Republican races and 4 are Democrat.

District 6 – Incumbent Rep. Jene Vickrey (R-Louisburg) defeated challenger Clifford Blackmore (R-Paola). He won the vote 62% to 38%.

District 11 – Incumbent Rep. Jim Kelly (R-Independence) defeated challenger John Lowrance (R-Independence). He won the vote 76%-24%.

District 12 – Incumbent Rep. Doug Blex (R-Independence) defeated challenger Brad Hall (R-Independence). He won the vote 69%-31%.

District 13 – Incumbent Rep. Larry Hibbard (R-Toronto) defeated challenger Londa Tindle (R-Fredonia). He won the vote 55%-45%.

District 22 – Incumbent Rep. Nancy Lusk (D-Overland Park) defeated challenger Michael L. Coleman III (D-Overland Park) with 89% of the vote.

District 46 – Incumbent Rep. Boog Highberger (D-Lawrence) defeated challenger Benjamin Ferlo (D-Lawrence). He won the vote 88%-12%.

District 55 – Incumbent Rep. Annie Kuether (D-Topeka) defeated challenger Joseph Stringer (D-Topeka) 88%-12%..

District 64 – Rep. Susan “Suzi” Carlson (R-Clay Center) beat Kathy Martin (R-Clay Center) 53%-47% to win the seat retired by Rep. Susie Swanson.

District 74 – Stephen Owens (R-Hesston) defeated six term incumbent Rep. Don Schroeder (R-Hesston) 55%-45%. Owens is considered more conservative with endorsements from the NRA and Kansas Chamber.

District 75 – Former Rep. Will Carpenter (R-El Dorado) will return to Topeka after winning the primary 60%-40% against one term incumbent Rep. Mary Martha Good. This was a rematch - Good beat Carpenter in the 2016 election by only 40 votes as a more moderate leaning candidate.

District 80 – Wellington businessman Bill Rhiley beat one term incumbent Rep. Anita Judd-Jenkins (R-Arkansas City) 58% to 42%. Rhiley had conservative endorsements.

District 87 – This seat is retired by Roger Elliot. Renee Erickson (R-Wichita) beat Jeff Kennedy (R-Wichita) 56%-44%.

District 89 – Rep. KC Ohaebosim (D-Wichita) held onto his seat against two Democrat challengers from Wichita – LeSean Tarkington and Marty Keenan.

District 104 – Rep. Steven Becker (R-Buhler) appears to have lost his seat by one vote to challenger Paul Waggoner (R-Hutchinson) 2,014-2,013. There will be a recount.

District 107 – Incumbent Rep. Susan Concannon (R-Beloit) beat challenger Sam Sacco (R-Concordia) 56%-44%.

District 124 – Martin “Marty” Long (R-Ulysses) won 64% of the vote over Jeffrey G. Locke (R-Sublette) to fill the seat retired by Rep. Steve Alford.

The Kansas House of Representatives may see a slight shift to the right. There are several House races where conservative Republican candidates unseated more moderate Republicans that won in 2016. In addition to the losses of Reps Schroeder, Good, Judd-Jenkins, and Becker -

District 8 – Rep. Patty Markley (R-Overland Park) lost to Chris Croft (R-Overland Park) 58%-42%. Croft will face Michele Lobitz (D-Olathe) in November.

District 28 – Rep. Joy Koesten (R-Leawood) lost to Kellie Warren (R-Leawood) 42%-58%, who received conservative endorsements. Warren will take on Brian Clausen (D-Leawood) in the general election.

On the other hand - conservative Republican John Whitmer was also unseated:

District 93 - Republican incumbent John Whitmer (R-Wichita) lost to challenger J.C. Moore (R-Clearwater) by 52 votes (1136-1084). Moore will run against Clifton Beck (D-Clearwater) in the general election. Moore is a retired educator with a doctorate in chemistry - he cites four priorities: fiscal responsibility, excellent schools, great roads and expansion of KanCare.

Other House Primary Results:

District 5 - Mark Samsel (R-Wellsville) beat Renee Slinkard (R-Parker) and will run against Lassey Murphy (D-Lane) in November to fill the House seat left behind by Kevin Jones, who ran for 2nd District Congress.

District 14 – Charlotte Esau (R-Olathe) won the House seat held by her husband Keith Esau as he seeks the Secretary of State’s office. She beat Aaron Young and Tom Stanion with 46% of the vote and will face Democrat Angela Schweller in the general election.

District 17 – Rep. Tom Cox (R-Shawnee) won his primary with 75% of the vote against Jim Eschrich. He will now face Democrat Laura Smith-Everett of Shawnee

District 18 - Incumbent Rep. Cindy Neighbor (D-Shawnee) beat challenger Andrew Hurla with 82% of the vote, and now faces Republican primary winner Eric Jenkins, who beat Cathy Gordon.

District 27 – Rep. Sean Tarwater (R-Stilwell) won his primary with 46% of the vote against Karen Snyder and Rochelle Bird. Tarwater will face Democrat Nicole Rome of Overland Park in the general election.

District 29 - Former Rep. James Todd (R-Overland Park) beat Peggy Galvin to set up a rematch against current Rep. Brett Parker (D-Overland Park).

District 30 – Wendy Bingesser (R-Olathe) beat Colleen Webster by less than 200 votes. Bingesser is considered more conservative than Webster. She will face the winner of the Democrat primary for this seat, Brandon Woodard(D-Lenexa) who beat Matthew Calcara. This seat is left open by Rep. Randy Powell, who did not file for election.

District 38 - Incumbent Rep. Willie Dove (R-Bonner Springs) won over Noel Hull with 64% of the vote. He will face Democrat Stuart Sweeney of Linwood in November.

District 39 – Former Rep. Owen Donohoe (R-Shawnee) won by 203 votes (54%) over Kristy Acree with Rep. Shelee Brim is not running for reelection. Brim had endorsed Acree. Donohoe will now face Democrat Michael Bolton.

District 40 - Incumbent Debbie Deere (D-Lansing) beat Donald Terrien in the primary and will face Republican David French in the general election.

District 42 - Incumbent Jim Karleskint won his primary over Lance Neelly with 53% of the vote (less than 200 votes).

District 45 - Former lobbyist Cynthia Smith (R-Lawrence) won the primary against Ronald Thacker for the seat held for many years by retiring Rep. Tom Sloan. The Democrat primary was won by Mike Amyx over Steven Davis and Aidan Loveland Koster.

District 49 – House Speaker Pro Tem Scott Schwab is running for Secretary of State. Megan Lynn won 89% of the vote over Fsehazion Desalegn. Lynn has been endorsed by Schwab. Lynn will now face Democrat Darnell Hunt.

District 59 - Incumbent Rep. Blaine Finch (R-Ottawa) beat former Rep. Shari Weber with 71% of the vote. He faces Democrat John Hall of Quenemo in the general election.

District 86 - Incumbent Rep. Jim Ward (D-Wichita) beat Alexander Vulgamore with 86% of the vote. He now faces Republican Jim Price of Wichita for the general election.

District 93 - Republican incumbent John Whitmer (R-Wichita) lost to challenger J.C. Moore (R-Clearwater. Moore will not run against Clifton Beck (D-Clearwater) in the general election.

District 97 - Nick Hoheisel (R-Wichita) beat Michael Waller by 108 votes to fill the seat left by retiring Rep. Les Osterman (R-Wichita). Hoheisel will face Rebecca Jenek (D-Wichita) in November.

District 99 - Kristi Kirk (D-Wichita) beat Gerald Winget in order to challenge incumbent Rep. Susan Humphries (R-Wichita) in November.

District 100 - Incumbent Rep. Daniel Hawkins (R-Wichita) beat challenger James Francis Breitenbach with 76% of the vote. Hawkins will face Democrat Jennifer Winn in the general election.

District 113 - Incumbent Rep. Greg Lewis won his primary over Brett Fairchild with 66% of the vote. The Democrat primary was won by David Curtis over David Serrault.

Vote Tomorrow - Primary Election Information

Mon, 06 Aug 2018 15:32:05 GMT

Vote Tomorrow

This is a VERY IMPORTANT election - with many positions determined by the primary election. Check out your ballot today at myvoteinfo.voteks.org .

Select the Registration Information tab, then enter your county, first and last name, and birthdate. It will pull up two ballots, one for the Democrat primary and one for the Republican primary. They are indicated by a three digit number.

Follow your local candidates on Facebook and check out their websites to see what they stand for. Most local newspapers have published articles about local candidates that you can read. If you need help or want to know more about the candidates in your area, feel free to contact KABR. We are happy to share information. Do you have information about a candidate that we should know about? Tell us!

One more thing - did you know that candidates can tell if you vote in your elections, and even more important - if you vote in primary elections? We want every elected official to know that their local liquor retailers are engaged in our elections, supporting the candidates who support us, and voting. Reach out to the candidate of your choice and let them know that you are supporting them.

The Governor’s Race: The hotly contended primaries for the Governor’s office have attracted most of the attention and campaign funds for the 2018 Election thus far. Governor Jeff Colyer has touted the positive fiscal condition of the State government and his conservative principles, while Kobach claims he is the true conservative in the race, with the just announced backing of President Trump. These two seem to be the poll leaders and a recent commercial from the Colyer campaign urges voters to avoid casting their votes for any of the other candidates in this large field, claiming it would tilt the race to Kobach, who wants to return to the Brownback tax cuts. Republican primary voters do tend toward the conservative – which leaves an interesting quandary for more moderate Republicans. Do they vote for Barnett, who vows to support reasonable education funding and Medicaid expansion, or stick with Colyer, who has consistently supported most of Brownback’s policies? If they reject Colyer, are they assuring a Kobach primary win as the commercial claims?

The leaders in the Democrat primary are likely Senator Laura Kelly, former Ag Secretary Josh Svaty, and former Wichita mayor Carl Brewer. The candidates have mostly similar views. Kelly has strong name recognition as a long time legislator experienced with state budget issues and health care. Svaty attracts many younger more progressive Democrats and has strong rural ties. Brewer is well known and liked in south central Kansas, primarily Wichita.

The winners of these primaries will face off in November in a three way race with an Independent candidate – expected to be Greg Orman.

The Republican contenders are as follows:

Current Governor and former Lt. Governor Jeff Colyer, M.D. (R-Overland Park) with Lt. Governor candidate Tracy Mann

Current Secretary of State Kris Kobach (R-Lecompton) with Lt. Governor candidate Wink Hartman

Current Insurance Commissioner Ken Selzer (R-Leawood) with Lt. Governor candidate Jenifer Sanderson

Former Senator Jim Barnett, M.D. (R-Topeka) with Lt. Governor candidate Rosie Hansen (his wife)

Patrick “PK” Kucera (R-Overland Park) and Lt. Governor candidate Patricia Reitz

Tyler Ruzich (R-Prairie Village) with Lt. Governor candidate Dominic Scavuzzo

Joseph Tutera (R- Mission Hills) with Lt. Governor candidate Phillip Clemente

The Democrat candidates are as follows:

Senator Laura Kelly (D-Topeka) and Lt. Governor candidate Lynn Rogers (also a current senator)

Former State Secretary of Agriculture Josh Svaty (D-Ellsworth) and Lt. Governor candidate Katrina Gier Lewison

Former Wichita mayor Carl Brewer (D-Wichita) and Lt. Governor candidate Chris Morrow

Jack Bergeson (D-Wichita) and Lt. Governor candidate Alexander Cline

Arden Anderson (D-Olathe) and Lt. Governor candidate Dale Cowsert

Congressional Races: The races for the US House of Representatives have multiple candidates as well, with the District 2 race to fill the seat retired by Rep. Lynn Jenkins attracting the most attention. Candidates include three current state senators: Caryn Tyson (R-Parker), Steve Fitzgerald (R-Leavenworth) and Dennis Pyle (R-Hiawatha). Current state representative Kevin Jones (R-Wellsville) and former House Speaker Doug Mays (R-Topeka) are also in the race. Controversy has been raised by a relatively unknown candidate Steve Watkins (R-Topeka) who has become very visible with signs all over Topeka and plenty of purchased television commercials. Watkins appears to be very well funded by his father and his campaign attracted a lot of criticism when it accused Tyson of voting for tax increases. Tyson is the current Senate Taxation Committee Chair and is well known for her anti-tax position – her campaign has called for a retraction from Watkins. This field also include Vernon Fields (R-Basehor). The winner will face former Rep. Paul Davis (D-Lawrence) who ran for Governor in 2014.

The incumbents are expected to win the other congressional races, although some think Kevin Yoder (District 3) could have a tough general election. District 1 Roger Marshall (R-Great Bend) faces Nick Reinecker (R-Inman). District 4 Rep. Ron Estes (R-Wichita) faces Ron M. Estes (R-Wichita). Rep. Estes had to receive special permission to use his title as the incumbent Representative on the ballot to differentiate himself from the challenger.

This Is It: There are 16 statehouse races that have only a primary race – in other words, the candidate who wins on August 7 will be the winning Representative. There is no general election opposition filed for the seat. 12 of these are Republican races and 3 are Democrat.

District 6 – Rep. Jene Vickrey (R-Louisburg) faces challenger Clifford Blackmore (R-Paola). Vickrey is a former House Majority Leader with very conservative credentials.

District 11 – Rep. Jim Kelly (R-Independence) faces challenger John Lowrance (R-Independence).

District 12 – Rep. Doug Blex (R-Independence) faces challenger Brad Hall (R-Independence)

District 13 – Rep. Larry Hibbard (R-Toronto) faces challenger Londa Tindle (R-Fredonia).

District 22 – Rep. Nancy Lusk (D-Overland Park) faces challenger Michael L. Coleman III (D-Overland Park).

District 46 – Rep. Boog Highberger (D-Lawrence) faces challenger Benjamin Ferlo (D-Lawrence). Highberger is a former Lawrence mayor

District 55 – Rep. Annie Kuether (D-Topeka) faces challenger Joseph Stringer (D-Topeka). Stringer has taken on Kuether a couple of times in years past, but as a Republican.

District 64 – Rep. Susan “Suzi” Swanson (R-Clay Center) faces challenger Kathy Martin (R-Clay Center).

District 74 – Rep. Don Schroeder (R-Hesston) faces challenger Stephen Owens (R-Hesston).

District 75 – Current Rep. Mary Martha Good (R-El Dorado) faces a challenger from former Rep. Will Carpenter (R-El Dorado). Good beat Carpenter in the 2016 election as a more moderate leaning candidate.

District 80 – Rep. Anita Judd-Jenkins (R-Arkansas City) faces challenger Bill Rhiley (R-Welllington)

District 87 – This seat is retired by Roger Elliot. Renee Erickson (R-Wichita) takes on Jeff Kennedy (R-Wichita).

District 89 – Rep. KC Ohaebosim (D-Wichita) faces two challengers from Wichita – LeSean Tarkington and Marty Keenan. Keenan has run for the Legislature several times in the past without success.

District 104 – Rep. Steven Becker (R-Buhler) faces challenger Paul Waggoner (R-Hutchinson).

District 107 – Rep. Susan Concannon (R-Beloit) faces challenger Sam Sacco (R-Concordia).

District 124 – Position was retired by Rep. Steve Alford. Jeffrey G. Locke (R-Sublette) faces Martin “Marty” Long (R-Ulysses).

There are several House races with conservative candidates attempting to unseat more moderate Republicans that won in 2016, there are also a number of open seats available. Here are some of those from Johnson County:

District 8 – Rep. Patty Markley faces Chris Croft

District 14 – Charlotte Esau is running for the House seat held by her husband Keith Esau as he seeks the Secretary of State’s office. Aaron Young and Tom Stanion are also seeking the position. Stanion seems to be the more moderate candidate, with Esau holding conservative endorsements.

District 17 – Rep. Tom Cox faces Jim Eschrich

District 27 – Rep. Sean Tarwater is a one term legislator who replaced House Speaker Merrick when he retired. His challengers include Karen Snyder, an education proponent, and Rochelle Bird, who calls herself an “authentic conservative”.

District 28 – Rep. Joy Koesten faces Kellie Warren, who has received conservative endorsements. Koesten supported increased education funding and behavioral health programs.

District 30 – Rep. Randy Powell is retiring this position. Colleen Webster, with moderate credentials, is facing Wendy Bingesser, who is endorsed by conservative groups. There is also a Democrat primary for this seat with Matthew Calcara and Brandon Woodard running.

District 39 – Rep. Shelee Brim is not running for reelection. She endorsed Kristy Acree who must face former conservative representative Owen Donohue.

District 49 – House Speaker Pro Tem Scott Schwab is running for Secretary of State. Megan Lynn is running for his seat against Fsehazion Desalegn. Lynn has been endorsed by Schwab.

If you have questions about the races on your ballot, do not hesitate to reach out to us. Contact Amy at 785-969-1617 or campbell525@sbcglobal.net.

Statewide Primary Election Next Tuesday

Fri, 03 Aug 2018 15:42:52 GMT

2018 Primary Election is Tuesday! This is a VERY IMPORTANT election - with many positions determined by the primary election. Check out your ballot today at myvoteinfo.voteks.org .

(By the way, did you forget to contribute to your local Representative? It's not too late - many candidates have websites with an online giving option.)

Late Night as the Senate Debates Tax Policy

Sat, 05 May 2018 03:45:18 GMT

The Senate passed tax cut legislation just after midnight and will return tomorrow. The House adjourned around 11 p.m. and will come back at 10 a.m.

Tomorrow, May 4, is the scheduled Sine Die – last official day of the 2018 Legislative Session. Many had hoped that tonight would wrap up their work.

The tax compromise conference committee report on HB 2228 decouples Kansas income tax policies from the Trump Tax Plan, in order to allow taxpayers to itemize on their state tax return even if they are not allowed to itemize their federal return. It also includes a number of other tax policy items. Read a summary of the bill here. Supporters tout the bill as returning money to the taxpayers that would have increased Kansas revenues as a result of the federal tax plan. Opponents argue that the impact of the federal tax changes cannot yet be predicted, so the legislation is premature.

Meanwhile, we have another storm rolling through Topeka, so it isn’t a bad idea to be spending the evening in the State Capitol made of solid stone.

Legislature Passes Budget

The 2018 Legislature is taking a step toward reversing some of the years of cuts to higher education, K-12 education, mental health and disability programs, nursing home and hospital rates, and adopted a small state employee pay raise.

It took 12 rounds of negotiations over three days, but the House/Senate conference committee wrapped up budget negotiations around 7:30 p.m. Wednesday night. All in all, it was the most courteous and respectful budget negotiations we have seen in a longtime The bill was ready for floor debate by 5 p.m. on Thursday (today).

The final budget compromise spends less than the House had proposed but more than the Senate version. The spending projections estimate the State will have over $400 million on hand at the end of this fiscal year - the healthiest balance in years. You can see the specific budget bill details at this link .

The bill also includes a section that is a “sign of the times”- restricting any agency from expending funds to create, enter into, or enforce any non-disclosure agreement in regards to claims from sexual harassment for FY 19, and restricting any agency from expending funds to settle sexual harassment claims against a state officer for FY 19.

HB 2470 Contains Multiple Liquor Policies - Adopted by Legislature - Effective May 24 2018

Wed, 02 May 2018 01:52:11 GMT

Microbreweries Production; Alcoholic Candy; Domestic Beer in Refillable Containers; Hours of Sale for Alcohol; Self-service Beer from Automated Devices; HB 2470 allows microbreweries in Kansas to contract with other microbreweries for production and packaging of beer and hard cider, creates and amends law related to the sale of alcoholic candy and to the sale of domestic beer in refillable containers, allows licensed microbrewers in the state to produce beer containing up to 15.0 percent alcohol by weight, increases the length of time that certain businesses may serve or sell alcohol, and allows self service beer from automated machines.

Microbreweries Production and Packaging The bill allows microbreweries in Kansas to contract with other microbreweries for production and packaging of beer and hard cider. The contracting Kansas microbrewery will be held to all applicable state and federal laws concerning manufacturing, packaging, and labeling and will be responsible for payment of all state and federal taxes on the beer or hard cider. Production of beer or hard cider will count toward production limits in continuing law for both of the microbreweries involved in such a contract. The bill allows the beer or hard cider to be transferred to the microbrewery on whose behalf the beer or hard cider was produced, after production and packaging.

Sale of Alcoholic Candy; Adulterated Foods The bill defines “alcoholic candy” as follows: ● For purposes of manufacturing, “alcoholic candy” means any candy or other confectionery product with an alcohol content greater than 0.5 percent alcohol by volume; and ● For purposes of sale at retail locations, “alcoholic candy” means any candy or other confectionery product with an alcohol content greater than 1.0 percent alcohol by volume. The term is included in the definition of “alcoholic liquor.” Alcoholic candy is subject to regulation by the Alcoholic Beverage Control Division (ABC) of the Kansas Department of Revenue, and a retailer ise required to have a liquor license to sell such products. In addition, the bill amends law regarding adulterated food. The bill exempts confectionery containing not more than 1.0 percent alcohol by volume from the definition of adulterated food, change from 0.5 percent.

Sale of Domestic Beer in Refillable Containers The bill amends the definition of “domestic beer” to allow licensed microbrewers in the state to produce beer containing up to 15.0 percent alcohol by weight, changed from 10.0 percent alcohol by weight.

The bill allows a microbrewery licensee to sell beer manufactured by the licensee in refillable and sealable containers to consumers for off-premises consumption. Such containers may not contain less than 32 fluid ounces or more than 64 fluid ounces of beer. Licensees will be required to affix labels to all containers sold, which will include the licensee’s name and the name and type of beer in such container.

[Note: Enacted 2017 House Sub. for SB 13 amended provisions of the Liquor Control Act and Cereal Malt Beverage Act. Certain provisions of the 2017 bill were delayed in implementation until April 1, 2019. References to such date are to reconcile the provisions of the 2017 and 2018 legislation.]

Hours of Sale and Service for Alcohol The bill increases the length of time that certain businesses may serve or sell alcohol. Establishments licensed to serve alcohol will be allowed to sell drinks starting at 6:00 a.m. Under previous law, establishments were not allowed to sell drinks between the hours of 2:00 a.m. and 9:00 a.m.

Farm wineries, microbreweries, and microdistilleries are allowed to sell their respective alcoholic products in their original containers between 6:00 a.m. and 12:00 a.m. on any day. Former law limited the hours these establishments could sell alcohol on Sundays, between 12:00 p.m. and 6 p.m. for farm wineries and between 11:00 a.m. and 7:00 p.m. for microbreweries and microdistilleries.

“Day” means 6:00 a.m. until 2:00 a.m. the following calendar day.

Self-service Beer from Automated Devices The bill allows licensed public venues, clubs, and drinking establishments to provide self-service beer to customers from automated devices in the same manner as is permitted for wine under continuing law, so long as the licensee monitors the dispensing of beer and can control such dispensing.

Definitions The bill defines an “automated device” as any mechanized device capable of dispensing wine or beer directly to a customer in exchange for compensation that a licensee has received directly from a customer. “Day” means 6:00 a.m. until 2:00 a.m the following calendar day.

Notice A licensee will be required to provide written or electronic notice to the Director of ABC of a licensee’s intent to use an automated device at least 48 hours before the automated device is used on the licensed premises.

Video Monitoring The bill requires any licensee offering self-service beer or wine from any automated device to provide constant video monitoring of the automated devices at all times the licensee is open to the pubic. The licensee will be required to maintain the recorded footage for at least 60 days and, if requested, provide the footage to any agent of the Director of ABC or other authorized law enforcement agent.

Access Card Under the bill, compensation will be in the form of a prepaid access card containing a fixed monetary amount that can be directly exchanged for beer or wine from an automated device. The access cards may be sold, used, or reactivated only during the business day. The cards will be purchased from the licensee by a customer and a licensee could issue only one active card to a customer. An access card will be considered active if the access card contains monetary credit or has not yet been used to dispense 15 ounces of wine or 32 ounces of beer. The purchase of an access card is subject to the liquor drink tax.

A customer will be required to show a valid driver’s license, identification card, or other government-issued document that contains a photograph of the customer and indicates the customer is at least 21 years of age. The bill requires each access card to be programmed to require the customer show identification before the access card could be used for the first time during any business day or for any subsequent reactivation.

The bill requires that access cards become inactive at the end of each business day. The access card will become inactive if it is used to dispense 15 ounces of wine or 32 ounces of beer. A customer will be able to reactivate the access card to allow an additional 15 ounces of wine or 32 ounces of beer by showing identification to the licensee or licensee’s employee.

Service Hours The bill amends the prohibited service period to last from 2:00 a.m. to 6:00 a.m. Former law prohibited public venues, clubs, or drinking establishments from allowing the serving, mixing, or consumption of alcohol on its premises between 2:00 a.m. and 9:00 a.m.

Other Provisions The bill requires the Secretary of Revenue to adopt rules and regulations to implement the provisions of the bill relating to sales via automated devices by January 1, 2019. The bill also states that all laws and rules and regulations concerning the sale of alcohol to individuals under 21 years of age applies to the sales transaction of the access card.

ABC Announces Public Hearing on New Administrative Regulations

Tue, 01 May 2018 18:39:45 GMT

A public hearing will be conducted on Friday, May 11, 2018, from 1:00 p.m. to 2:00 p.m. in the ABC Conference Room, 5th Floor of the Mills Building, 109 SW 9th Street, Topeka, Kansas to consider the adoption of the proposed rules and regulations of the Alcoholic Beverage Control Division, Department of Revenue, on a permanent basis. Learn more here.

State Revenue Estimates Up - Sets Stage for Veto Session Battle

Fri, 20 Apr 2018 22:49:06 GMT

On Friday, April 20, the Consensus Revenue Estimating (CRE) Group predicted that state revenues will be $217 million more than predicted in November for FY 18 and $316 million above estimates for FY 19. This means that Kansas tax revenues will see a 10% increase over last fiscal year, with the 2017 income tax hike in effect.

It appears that there are sufficient ending balance predictions to fund the recently passed K-12 funding legislation at the $525 million intended level – allowing restoration of the $80 million “error” that was somehow not part of the final language. No one knows yet if the Kansas Supreme Court will accept the proposed funding plan. This sets up a battle for the veto session over a long list of general budget items that have not yet been negotiated, repaying internal borrowing from the highway and retirement funds, additional school funding and the Senate’s new tax bill. The Senate tax legislation is designed to decouple Kansas income tax rules from the Trump tax changes that are predicted to raise state tax bills for those who could no longer itemize. The Senate tax legislation increases the individual standard deduction.

Senate President Susan Wagle, R-Wichita, is quoted as follows: "As a result of the strong (President Donald) Trump economy, these numbers include an unexpected federal windfall to the state due to federal tax reform. The surplus from this unanticipated windfall should be returned to the Kansas taxpayers. If any funds remain, we should exemplify fiscal responsibility and make the payments to KPERS that have been delayed and repay the loan that the Legislature took out last year to pay the bills. We owe it to future generations to pay back our current debts and obligations. "When we return next week, I will urge my colleagues to pass legislation to allow Kansans who currently itemize under state tax law to continue to do so in the future."

Kansas City Retailers Roundtable and Legislative Luncheon - April 21-22 2018

Tue, 10 Apr 2018 11:47:40 GMT

Kansas City Retailers Conference and Legislative Luncheon

Saturday and Sunday - April 21-22, 2018

SCHEDULE

SATURDAY LEGISLATORS LUNCHEON & ROUNDTABLE:

12:00 - 1:30 pm Legislators and Retailers Luncheon - Informal Roundtable with State Legislators.

Worldwide Wine and Spirits, LLC.,
17501 W 98th Street #35 - 38, Lenexa, KS 66219

News from the Kansas Legislature - liquor law changes and tax legislation updates. Visit with area legislators.

1:30 pm - 3:00 pm Retailers Strategy Session - GOLD Meeting

If you are a member of KABR, you should plan to attend. Please send recommended agenda items to davisliquor2@cox.net if you have discussion items or proposed action items. Proposals will be forwarded to the Board for approval. (GOLD = Goals of Liquor Dealers).

Saturday Dinner:

6:30 - 8:30 p.m. Dinner - Join other retailers for dinner - separate checks.

SUNDAY EVENTS -

9:30am - 12:00 pm KABR Official Business Meeting of the Board of Directors

1st Floor Conference Room, Best Western KC Speedway Inn at the Legends

All Members are Encouraged to Attend the Official Business Meeting.

Kansas Liquor Retailers have achieved impressive success at the Kansas Legislature over the past eight years, and we have done so by working together. Our greatest challenges are yet to come - join us!

Questions: contact Amy Campbell at 785-969-1617 or Brian Davis at 316-990-1425

Contact the Best Western Premier KC Speedway Inn and Suites for KABR overnight rooms

10401 France Family Dr, Kansas City, KS 66111

(913) 334-4440

Liquor Conference Committee Report Awaits Action - Includes Multiple Bills

Mon, 09 Apr 2018 03:47:08 GMT

HB 2470 – Federal and State Affairs has added several liquor bills to this legislation which is now the Liquor Conference Committee report. Initially, HB 2470 was a bill to allow microbreweries within the state of Kansas to contract with other microbreweries for production and packaging of beer and hard cider. both barrels of beer and hard cider produced pursuant to such contracts would be included as part of the production limits for both contracting licensees. Calendar-year production limits in continuing law are 60,000 barrels of beer and 100,000 gallons of hard cider. An amendment to allow members of the public to be judges at beer competitions was added on the Senate floor. That amendment was dropped by the conference committee.

Bills added in conference include:

HB 2766 and SB 433 – Self-serve beer dispensers – Introduced and supported by Topeka downtown developers and winner of a business startup contest. Requires video surveillance, moves the wine dispenser oversight rules and regs into statute, and limits the volume sold on each purchaser card.

HB 2475 – Microbrewery rules changes – Selling refillable and sealable containers (growlers) to consumers for off-premises consumption: such containers could not contain less than 32 fluid ounces or more than 64 fluid ounces of beer. Licensees would be required to affix labels to all containers sold with the name of the product and the microbrewery. The bill changes the alcohol content limit for beer from 10% ABW to 16% ABW. Combined with HB 2476 in committee, then added to 2470 in conference.

HB 2476 – Defines alcoholic candy as alcoholic liquor, thus allowing the sale of candy and food products containing alcohol above .05 ABW. Controversy emerged on the Senate floor in a debate over the percentage, with Senator Denning amending to 1.0 ABW. Concerns have come from Senator Bollier regarding Andres Chocolates and other producers. The Conference Committee returned the threshold to .05 ABW based on federal TTB definitions, but the House rejected the report, returning it to conference. Currently, the report sets the threshold at .05% ABW for manufacturers and 1.0% ABW for retail sales.

HB 2482 – Day Drinking Bill – allows drinking establishments to begin selling alcohol at 6 a.m. instead of current restriction at 9 a.m. Legislation was requested by a restaurant that features breakfast and moved through local government committees rather than traditional route through federal and state affairs. The Senate Commerce Committee amended the bill to: ● Increase the number of hours in which farm wineries, microbreweries, and microdistilleries would be allowed to sell their respective alcoholic products; and ● Allow farm winery outlets to sell individual drinks. The latter amendment attracted debate due to concerns about the “level playing field” for restaurants. A farm winery outlet would be allowed to serve wine by the glass manufactured by the farm winery licensee, provided the outlet is in a county where the sale of alcoholic liquor is permitted. Wine sold pursuant to the bill would not be subject to the Club and Drinking Establishment Act, and a drinking establishment license would not be required to sell the drink. Under current law, a farm winery may have up to three licensed outlets, but the outlets are not permitted to sell individual drinks. The conference committee did not retain the “wine by the glass” amendment. (Hours - Farm wineries, microbreweries, and microdistilleries would be allowed to sell their respective alcoholic products in their original containers between 6:00 a.m. and 12:00 a.m. on any day. Current law limits the hours these establishments may sell alcohol on Sundays, between 12:00 p.m. and 6 p.m. for farm wineries and between 11:00 a.m. and 7:00 p.m. for microbreweries and microdistilleries.)

New Fee for Liquor Licensees

Wed, 21 Mar 2018 15:55:37 GMT

The Governor has signed a bill to create an annual $20 fee for the Division of Alcoholic Beverage Control to fund the online licensing system and maintenance.

HB 2362 – ABC Modernization Fee – Creates a $20 annual fee on license renewals to fund maintenance and updates to the online licensing system. Fee will be paid on both initial and renewal liquor license applications. The bill maintains the current $50 application fee, but dedicates $20 of that fee to the modernization fund. The $20 modernization fee is added to the renewal application fee, which will remain at $10. Introduced Feb 13 2017, House passed 96-28 March 6 2017. Senate FSA hearing Jan 30 2018. Senate passed 37-3 Feb 21. House concurred March 9 111-10. Governor signed March 20. Begins July 1 2018.

Governor Signs Trailer Bill - Sets Tax Rules for Beer Law

Sat, 17 Mar 2018 03:52:05 GMT

HB 2502 – Trailer Bill for 2017 Beer Law – Regulation and taxation of the sale of beer up to 6.0 ABV by cereal malt beverage retailers, allowed after April 1 2019. Sales of the stronger beer by grocery and convenience stores will be subject to state and local sales taxes instead of the state liquor enforcement tax.

Pursuant to legislation enacted in 2017 (SB 13), starting on April 1, 2019, CMB licensees will be allowed to sell beer containing no more than 6.0 percent alcohol by volume. HB 2502 clarifies that CMB licensees are under the oversight of the Director of Alcoholic Beverage Control (Director) [the Division of Alcoholic Beverage Control is within the Department of Revenue]. The Director is permitted to issue citations and impose a fine, not exceeding $1,000, for each violation of the Kansas Cereal Malt Beverage Act. Moneys collected from fines will be deposited in the State General Fund. The bill clarifies the Director will conduct the market impact study, required by continuing law to be submitted to the Legislature following the tenth anniversary of the effective date of the 2017 legislation, using information available to the Director. Introduced Jan 17. Hearing Jan 29. House passed 117-6 Feb 8. Senate hearing Feb 28. Senate passed 39-0 March 7. Governor signed March 15.

The 2017 Beer Law and 2018 Trailer Legislation: ABC Authority and New Tax Policy on Beer

Mon, 29 Jan 2018 15:46:15 GMT

In April 2017, the Kansas Legislature passed House Substitute for SB 13, now known as the Beer Compromise. There were many reasons for the compromise proposal, but the strongest was to retain the clear State priority for the safe and efficient regulation of the sale of alcoholic liquor and the role of the independent liquor store as the retailer of higher alcohol beer and wine and spirits.

HB 2502 – Trailer Bill

At that time, industry members believed that some details of the plan might require follow-up legislation. During the interim, representatives of KABR participated in meetings facilitated by the Division of Alcoholic Beverage Control to develop rules and regulations and possible cleanup language. The product of those conversations includes HB 2502 and new rules and regulations.

Support State Authority and Scope of Ten-Year Report

The Kansas Association of Beverage Retailers (KABR) respectfully supports language to further clarify the authority of the Division of Alcoholic Beverage Control to enforce the legislation and the language defining information to be included in the ten-year impact report to the Legislature.

Neutral on Sales Tax

KABR is neutral on the tax policy established in HB 2502. As many of you will recall, cereal malt beverage is currently subject to sales tax while strong beer is subject to the 8% enforcement tax. How the tax will be levied has a fiscal impact on the State, cities and counties. It also has an impact on the competitive price of the product at retail. Liquor sales were $846.5 million in 2016, generating $67.8 million in revenue.

100% of the enforcement tax is deposited in the State General Fund, while sales taxes are split with local governments. The State collects the base rate of 6.5%, but the amount due to the local authorities varies. Not only do rates differ between cities and counties, but special taxing districts may levy different rates for businesses in the same neighborhood.

As a result, the retailers across the state have differing opinions on the question of how the product should be taxed. Therefore, KABR is neutral on the tax policy established in HB 2502, but reserves the option to change that position if there are amendments. Our small businesses should not be penalized by new tax policies that disadvantage current licensees.

Background: Tax Question

If economic studies are correct, a significant percentage of the beer sold in Kansas after April 2019 will be sold by the CMB retailers – the grocery stores, convenience stores and others.

Former versions of Uncork Legislation had proposed sharing 3% of all enforcement taxes with cities and counties. This concept was problematic because it would redistribute revenue in a manner that may or may not reflect the actual cereal malt beverage sales taxes lost by communities.

As proposed in HB 2502, the CMB retailers will pay sales taxes on strong beer sales in the same way they currently pay sales taxes on cereal malt beverage (CMB) sales. Cities and counties have requested this language because they receive a portion of sales taxes and are concerned the new law will reduce local tax revenues.

The State of Kansas has interpreted the new law to require CMB retailers to pay the 8% liquor enforcement tax on strong beer (Enforcement taxes go to the State General Fund.) We do not know how much revenue the State or the cities may lose or gain under either scenario - the revenue change may be very small since the State sales tax rate is 6.5% and the cities and counties vary in what they charge above the state rate. A review of the sales tax rates by taxing jurisdiction show that many Kansas communities pay a higher sales tax rate than 8%. See rates here https://www.ksrevenue.org/pdf/5digitzip0118.pdf.

Background: Contents of the 2017 Beer Legislation

As the states around us have changed their liquor laws, the wisdom of the 2017 Beer Compromise has come into focus. In Oklahoma, the 2016 public referendum opened the sale of strong beer and wine to the corporate chain retailers without corresponding equalization of the regulatory framework for liquor retailers. Colorado’s 2016 legislation expanded the number of outlets for retail liquor stores and for corporate pharmacy liquor licensees, but less attention was paid to the one-strength beer policy in the legislation. Both of these states will trade cereal malt beverage sales for strong beer, but without the important considerations for regulation and long-term economic viability included in Kansas law.

Beginning April 1, 2019 –

· CMB retailers will sell beer up to 6 percent alcohol by volume,

· Liquor retailers may sell all current beer, wine, and spirits products plus cereal malt beverage,

· Liquor retailers may sell other products up to 20% of gross sales,

· Liquor retailers may sell tobacco products and lottery tickets, except that the sale of tobacco products and lottery shall not be included in the 20% limitation,

· The Division of Alcoholic Beverage Control will enforce the law in both retail environments

· The Division of Alcoholic Beverage Control will issue an impact study ten years after implementation to report the market impact of the law change.

· The Uncork proponents agree that ten years will be a reasonable time to measure the impact on the industry without further legislation to expand the locations where liquor products are sold,

· Statutes and regulations are modified to include application of trade practice, nondiscrimination and price rules to CMB and liquor licensees,

· CMB retailers will continue to be licensed by cities and counties, liquor stores will continue to be licensed by the state,

· Distributors may require minimum orders for delivery, as well as retaining current definitions for CMB and beer for purposes of their franchise agreements,

· Kansas will retain the separate retail licenses for the sale of stronger alcohol products v. limited alcohol beer.

Today and after April 2019, the Kansas independently owned retail liquor stores are the state regulated off premise retailer of higher alcohol beer and all wine and spirits products. It is imperative that Kansas retain this important role for our independently owned Kansas retail liquor stores for the sake of public safety and for our small businesses.

It is unfortunate that so many other states, including Oklahoma and Colorado, are moving away from this efficient and effective regulatory model.

We hope that legislators will fully understand the significance of this proposal and the tenuous agreement it represents.

Respectfully submitted by Amy Campbell, Executive Director

785-969-1617 campbell525@sbcglobal.net

How Will the state Tax Beer up to 6.0% sold by CMB Off-Premise Retailers after April 2019?

Mon, 02 Oct 2017 21:11:48 GMT

How will the State Tax Beer up to 6.0% sold by CMB Off-Premise Retailers after April 2019?

When the Kansas Legislature passed the “Beer Law” during the 2017 Session, the question of how to tax the strong beer sales at CMB outlets was left open. Income Tax Legislation was occupying most of the Legislature’s time in May and June, so the question of how SB 13 would impact taxes on strong beer was left to 2018. "Beer up to 6.0%" does not include 3.2% CMB.

Currently, the State collects 8% liquor enforcement tax on all strong beer, wine and spirits sold by retail liquor stores to the public or sold by wholesalers to on-premise retailers. Sales tax is paid on all cereal malt beverage products sold by CMB retailers to the public.

This was a topic of discussion at a recent meeting for liquor industry organizations hosted by ABC Director Debbi Beavers. The meeting covered possible trailer legislation and proposed changes to rules and regulations. New rules and regulations will be drafted in the next two months for approval.

The Tax Issue will be part of a trailer bill during the 2018 Legislative Session. There are two ideas being discussed and they are described below. Hopefully, the description will help members decide how and if KABR should have a position on this question. KABR members will debate this and other questions at the annual meeting this weekend in Wichita.

1. Situs of Taxation – This literally means “place of taxation”. In other words, where the sale takes place determines the tax that applies.

Positives:

Cities and Counties would continue to receive the local portion of sales tax revenue, and could see increased revenues if the sales of strong beer in the convenience and grocery stores exceed the sales of cereal malt beverages. (Cities and Counties are still primarily responsible for licensing and regulating CMB Retailers.
The Kansas League of Municipalities supports this option and will ask that legislators allow the funds to continue to go into their general revenue fund, not require that money to be spent for designated purposes.
Many see this as the simplest solution – it would avoid requiring CMB Retailers to remit a new tax to the State and the administrative costs to the State and the retailers for setting up the new remittance.
Could also apply to CMB sales by Retail Liquor Licensees.
Retains the separate nature of CMB Retailers v.Retail Liquor Licensees.

Concerns:

CMB Retailers would pay a different tax rate on the same product. This would benefit CMB Retailers in areas where the sales tax is less than 8% and benefit Retail Liquor Licensees where the sales tax is higher than 8%.
State would lose revenue. Currently, the State retains 6.5% of sales tax revenues but retains the full 8% enforcement tax.
Need to address the tax to be paid on beer purchases by CMB On-Premise licensees (taverns) for re-sale. NOTE: CMB On-Premise licensees can currently sell CMB by the package.
Currently, Kansas does not track sales tax revenue on the sale of cereal malt beverages. If strong beer sales are not reported separately, the Division of Alcoholic Beverage Control will only be able to track strong beer sales in CMB outlets through gallonage reports from wholesalers. (NOTE: Alternatively, the Department of Revenue could require a separate line item for strong beer sales tax OR audit strong beer sales through CMB outlets over a period of time in order to create an algorithm that would provide this data.)

2. Licensees Pay 8% Liquor Enforcement Tax – This would require CMB Retailers to begin paying the 8% Liquor Enforcement Tax when selling strong beer.

Positives:

CMB Retailers and Retail Liquor Licensees would pay the same taxes on the same products.
The State would retain the revenues from sales of strong beer and possibly see increased revenues, depending whether or not the legislation creates a sharing formula with local cities and counties.
The State has an important interest in tracking the sales volumes to know where stronger products are being sold. (NOTE: Alternatively, the Department of Revenue could require a separate line item for strong beer sales tax OR audit strong beer sales through CMB outlets over a period of time in order to create an algorithm that would provide this data.)

Concerns:

Cities and Counties would lose revenue. The Legislature could choose to implement the3% sharing formula that has been a part of previous versions of Uncork bills,but many believe that the new distribution formula could not accurately replacelost sales taxes from the areas who sell the most CMB products. Winners would be based on population and notactual sales data. The new state tolocal revenue transfers would be subject to state sweeps.
Retail Liquor Stores support their cities and countiesand full funding of the important services these local communitiesprovide.

This is just one of the important issues to be discussedthis weekend at the KABR Annual Conference: Planning for a New Market. RSVP to Attend Here!

Other issues:

1. Proposal to pass legislation to allow retailers to charge customers for tastings.

2. Proposal to pass legislation to allow third party delivery "apps" - such as DRIZLY.

3. Proposed changes to rules and regulations to assure State regulation of price non-discrimination and trade practice rules.

4. New rules for inside entrances and vestibules as it relates to liquor stores being allowed to sell other products.

5. Tobacco sales, taxation and licensing.

And more!

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

Impact of Kansas Tax Changes

Fri, 30 Jun 2017 20:15:05 GMT

Impact of Changes to Kansas Income Tax

The Kansas Department of Revenue has issued new notices regarding changes in tax rates and policies in effect July 1, 2017, as a result of the passage of Sub for SB 30 by the 2017 Kansas Legislature. The 2017 session was all about filling a budget hole and Kansas businesses and individuals are affected immediately.

The rate increases are retroactive to January 1, 2017, which means that businesses and individuals should begin as soon as possible to withhold or set aside the necessary funds for Kansas income taxes.

Sub for SB 30 reinstates taxes on non-wage income for small businesses and raises rates for individual income taxes for 2017 and again in 2018. It also divides taxpayers into three brackets, instead of two. The income tax rates were not raised to pre-2012 rates, but will result in smaller paychecks for Kansas employees.

Department of Revenue Notices: https://www.ksrevenue.org/prnewtaxnotices.html

The Kansas Department of Revenue has released new tables for employers to increase withholdings beginning on July 1 to match 2018 rates.

In a statement, the agency said it is using the 2018 rates in its tables for 2017 to “ensure that enough income is withheld from paychecks to catch up for the increased and backdated tax liability in the second half of the year, and also to provide certainty for Kansas employers.” Read more at Kansas.com here: http://www.kansas.com/news/politics-government/article158628974.html

Employers are asked to begin withholding at the higher rate as of July 1. Read the notice: https://www.ksrevenue.org/taxnotices/notice17-02.pdf. Find the new withholding tables here: https://ksrevenue.org/forms-btwh.html

Non-wage income filers, such as sole proprietors or LLC owners, are asked to begin making estimated payments immediately- https://ksrevenue.org/pdf/k-40es17.pdf - although penalties will not be assessed now.

Additionally, the 2018 due dates for remitting withholding tax to the state and for notifying employees of taxes withheld have changed from the last day of February to January 31.

Legislature Adjourns Sine Die

Fri, 30 Jun 2017 19:12:28 GMT

Legislature Adjourns Sine Die

On Monday, the Legislature returned to Topeka for Sine Die, the ceremonial last day of the 2017 Legislative Session. The Senate met for less than 15 minutes and the House for less than one hour, both adjourning before noon.

There were no veto override efforts. House Minority Leader Jim Ward, D-Wichita, hoped to override Governor Brownback's line item veto of a budget proviso relating to disability waivers, but the Senate met and adjourned quickly. There did not appear to be enough House members present to be successful.

Jason Probst (D-Hutchinson) was sworn in to replace Patsy Terrell, who passed away suddenly during the veto session.

John Wilson (D-Lawrence) announced his retirement from the House - saying that his young family and career needed his attention. Said Wilson, "Now is actually a really great time to be in the Legislature. It's just not a really great time for me."

Some believe that the Legislature will need to return for a special session after the Supreme Court reviews the new school finance plan, but others believe it will satisfy the court's concerns.

Governor Brownback vetoed Sub for HB 2313 – the lottery vending machine bill that included funding for mental health programs. Read the Governor’s Veto message. It is interesting that the Governor vetoed a bill that his appointed Lottery Director had worked very hard to pass.

Governor Brownback also vetoed two provisions of the budget bill – both relating to social services under the Kansas Department for Aging and Disability Services.

2017 Legislative Session Budget, K-12 Funding and Taxes

Mon, 12 Jun 2017 23:00:31 GMT

This extended session was all about filling a budget hole, creating a new K-12 Education Finance Plan and changing tax policy. The Governor's proposal to double liquor enforcement taxes was not approved, but legislators caution that if they are ordered to revisit the 2017 K-12 Education Plan - tobacco, liquor and motor fuel taxes will be likely targets.

There are some interesting changes in the budget bill. In addition to the Governor’s proposed budget, HB 2002 includes State Employee Wage Increases of 2.5 percent for all except elected officials and those who have had recent wage increases and 5.0 percent for employees who have not had a wage increase in five years. Kansas will also open an on-site state employee health care clinic in Topeka at a cost of $2.7 million.

The Legislature rejected the Governor’s plan to securitize the Children’s Initiatives Fund / KEY fund. It also rejected the plan to consolidate the Board of Barbering with the Board of Cosmetology, but did agree to merge the Office of the Securities Commissioner with the Insurance Department.

A number of programs received small funding boosts, including behavioral health, services for persons with disabilities and the senior care act.

The Legislature also extended the exemption for state mental health hospitals and other public health facilities to continue to ban concealed carry on those premises. Other public buildings must allow concealed carry or provide armed guards and metal detectors at all entrances in order to assure that no one is carrying guns. The Governor asked for the exemption for state hospitals, but some think he might veto the bill because it extends to KU medical center and county or city owned health facilities. (A Governor’s Budget Amendment provided late in the session estimated it would cost over $12.5 million to hire 180 full time employees and buy equipment for the state hospitals in fiscal year 2018.)

SB 30 is the income tax bill that became certain after the Senate and then the House overrode the Governor’s veto last Tuesday. The new tax policy does not fully roll back the tax cuts from 2012, but it does remove the LLC exemption and raises income tax rates. The bill is projected to bring in an additional $582 million in FY 18 and $624 million in FY 19. However, the budget still requires sweeps from the Kansas Highway Fund, transfers from the Pooled Money Investments Board, and delayed KPERs payments. There may also be healthy internal borrowing in FY 18 to bolster the reinstatement of the 4% Medicaid cuts that were part of the Governor’s allotments in May 2016. That funding is to be covered by increased HMO privilege fees, but those fees won’t come in until March 2018.

On another note, projected receipts from expanded gaming (casinos) are dropping – forecasts were reduced $2.8 m in FY 17, $6.5 m in FY 18, and $7.8 m in FY 19. The Legislature adopted HB 2313 which will allow for Lottery vending machines, which is expected to increase lottery receipts. That bill also includes a conference committee amendment permitting fraternal organizations to install pull tab vending machines, also facilitated by the Kansas Lottery.

Finally, there is a group of legislators – including many Democrats, who believe the new education finance plan passed in SB 19 last Tuesday will not pass Supreme Court scrutiny, and they could be back in Topeka in July for a special session. That bill spends an additional $186.6 million in FY 18 and $283.8 million in FY 19 to satisfy the Supreme Court decision that K-12 funding is inadequate.

If you have questions about the budget or any other legislation, feel free to contact Amy.

Legislature Wraps Up June 10

Mon, 12 Jun 2017 18:58:37 GMT

The Kansas Legislature went home Saturday evening after approving Senate Sub for HB 2002 – the conference committee report containing the mega-budget and omnibus budget provisions. The session lasted 113 days, just one day short of the record session in 2015.

The House/Senate budget negotiations were rushed this year, with the six members of the Appropriations/Ways and Means budget conference committee meeting every few hours beginning Thursday evening, after the House had adopted its budget bill, and wrapping up around midnight Friday night.

Legislators return to Topeka June 26 for Sine Die – the ceremonial last day of the session. They may or may not have any real work to do, depending whether or not Governor Brownback pulls out his veto pen again. He can line item veto items in the budget bill and some are predicting he will veto HB 2278, "the guns bill", which allows state hospitals and other public health facilities to continue to ban guns on their premises. It is true that the administration requested the exemption for the state hospitals, but some believe he will oppose extending that privilege to KU Medical Center and other facilities

Flags Fly at Half-Staff to Honor Rep. Patsy Terrell

Mon, 12 Jun 2017 17:07:28 GMT

Flags at state government buildings are flying at half-staff in honor of Representative Patsy Terrell (D-Hutchinson). Rep. Terrell died unexpectedly June 7 in her hotel room in Topeka. She was found when fellow legislators became concerned that she had not come to the Statehouse for session on Wednesday.

Rep. Terrell was new to the Legislature this session. I and many retailers were very impressed when she was one of the few legislators on the House Commerce Committee to return emails to everyone who communicated with her. I am grateful to have had the opportunity to get to know her better during the veto session. Rep. Terrell was enthusiastic and smart, with a bright smile and a quick wit. She was passionate about representing her constituents.

Memorial services have not been set.

Legislature Gets Moving - Passes Education Funding and Overrides Governors Veto of Tax Plan

Wed, 07 Jun 2017 02:16:39 GMT

This week has already seen more action than any other 48 hours of this veto session. There is now a new tax plan and an education finance plan for Kansas.

Tonight at 8:05 p.m. the Senate voted to override the Governor’s veto of Sub for SB 30 – the tax legislation that the Legislature came together to pass on Monday. A veto override requires a 2/3 vote, and the Senate vote was 27-13. The House voted to override the veto at 9:45 p.m. with a vote of 88-31. Read a summary of the tax package here – CCR for Sub for SB 30. It is not a full repeal of the 2012 tax cuts, but does repeal the LLC tax exemption, increase income tax rates, and add a third income tax bracket. It is similar but not exactly the same as the tax plan the Governor vetoed in February.

Monday was a very busy day. First, the House shot down SB 19 the joint tax/education bill that had tied up the Legislature on Sunday. That proposal only got 32 votes.

The conference committee then pulled out the tax portion of SB 19 and re-ran it with only the school finance language. The House adopted the school finance formula 67-55 at 7:00 p.m.

The Senate later approved the school finance package 23-17.

The Tax Conference Committee also crafted an alternative tax plan in the afternoon for consideration Monday evening. The House adopted that broader tax proposal in the form of Conference Committee Report for Sub for SB 30 and passed it 69-52.

The Senate adopted the tax package around midnight 26-14 and the Governor’s office wasted no time in putting out the word that he intended to veto it. Senators immediately worked to find another vote in order to be able to override, and there were several moments on Tuesday when that seemed unlikely.

On Tuesday, the House and Senate waited until 2:00 p.m. to convene and approved a few conference committee reports approved while everyone waited for the veto message from the Governor – which came down late in the afternoon.

It was the third late night in a row in the Statehouse and many are encouraged to see the Legislature end their tax stalemate and move forward to develop the FY18-FY19 Budget.

Senate Omnibus Budget Bill

The Senate passed it’s omnibus budget bill around 10 p.m. Sunday night on a vote of 27-13.

Senate Ways and Means Chairman Carolyn McGinn offered a series of unusual amendments in an effort to – as she described it – allow members of the Senate to have meaningful input into the budget. She stated that pay-go rules have led to dissatisfaction by many legislators, as most of the budget amendments are created by only committee members. So, she offered amendments to delete multiple funding provisions including dollars for crisis stabilization centers, mental health centers, wage increases for state employees and waiver direct services rates. With each proposed amendment, she stated her support for these budget enhancements and said she would vote against the amendments. As a result, the Senate has verified its support of these enhancements. (These amendments were also unusual because they were mostly amending items that had been approved in SB 189 – the mega budget bill, not HB 2002.)

There were a few amendments adopted, but the omnibus bill remained essentially the same.

House Appropriations Committee passed their omnibus bill / mega budget bill after midnight Tuesday night. The House isn’t expected to run that budget bill until Thursday. Typically, the conference committee can’t start meeting until that has occurred.

Meeting Set to Discuss Wine Tasting Rules

Fri, 02 Jun 2017 20:11:36 GMT

KABR has been contacted by a number of retailers who are interested in seeing changes to the rules for wine tastings. Several stores have asked for the ability to charge for hosting educational tasting events, others would like to be able to charge for wine clubs.

If you are interested in exploring possible changes to current rules for conducting wine tastings, please RSVP below to participate in a meeting at 2:00 p.m. Wednesday, June 7, with Debbi Beavers, Director of the Division of Alcoholic Beverage Control and members of the industry.

This meeting is open to retailers and industry members, please RSVP here.

Directions for participation are posted at the link above.

Contact Amy Campbell if you have questions.

Legislature Takes Holiday Weekend / Tax Proposal Set Aside For Now

Fri, 26 May 2017 18:23:49 GMT

After debating a K-12 school finance bill Wednesday evening and passing it on final action vote Thursday - the House and Senate packed up for a four day holiday weekend. The Statehouse was quiet by 1:00 p.m. Thursday afternoon.

We expect to see action next Tuesday on a new tax proposal, but can't predict what it may hold. If you are in contact with your legislators outside of the Statehouse, you can reach out to them before they return on Tuesday.

Apparently, the Governor has indicated he doesn't want to sign an income tax bill repealing the 2012 tax cuts, but would sign tax increases that include consumption taxes (i.e. sales tax, liquor tax, tobacco tax, motor fuels tax, or repealing sales tax exemptions). So, the House's last attempt at crafting a new Sub for SB 30 included the income tax increases, repealed some sales tax exemptions, and increased the liquor enforcement tax from 8% to 10%

That plan was derailed when the industry protested and a number of the groups whose services were affected spoke out. In particular, a proposal to remove the sales tax exemption for "companion animal veterinary services" created concerns for Bayer, who makes veterinary pharmaceutical products and whose world headquarters are in Shawnee Mission. An effort to quickly switch from veterinary services to custom computer software raised opposition from businesses who rely heavily on custom software services, particularly the banks and other financial institutions.

The services that were included in the Tuesday/Wednesday proposal were: towing, detective services, security guards and patrol services, security system services including locksmiths, non-residential cleaning services, pet care, companion animal veterinary services, mini-self storage, expanded lawn services, personal care services and custom computer software.

This proposal would also have reduced the food sales tax from 6.5% to 55% in July 2020.

Common Consumption Areas Bill Passed - Minimum Orders Rule Clarified

Thu, 25 May 2017 23:20:27 GMT

House Bill 2277 will allow cities and counties to create year-round entertainment areas where alcoholic beverages can be consumed outside of drinking establishments, in common consumption areas.

Read a summary of the bill here.

The bill was passed by the House on Tuesday, May 24, on a vote of 97-22. The bill was passed and amended by the Senate May 16 35-5 - where it gained a couple of amendments.

An amendment by Senator Rob Olson removes the current ten-day waiting period for private club memberships.

An amendment by Senator Jeff Longbine clarifies that distributors may require minimum order quantities for beer - as passed in the beer bill Sub for SB 13 earlier this session. The former language allowed minimum orders for alcoholic liquor, which technically include wine and spirits. This clarifies that ordering rules will not change for wine and spirits.

The bill now goes to the Governor for his signature or veto.

Wine Tasting Rules Discussion Scheduled

There are many retailers who are interested in seeing changes to the rules for wine tastings. Several stores have asked for the ability to charge for hosting educational tasting events.

If you are interested in exploring possible changes to current rules for conducting wine tastings, please contact Amy Campbell here. We hope to host a meeting to exchange ideas on June 7 in Topeka - so please contact us by June 2.

Tax Debate Set Aside - Sub for SB 30 Includes Increase for Liquor Enforcement Tax

Wed, 24 May 2017 19:28:14 GMT

Tax Debate Set Aside

The House will not debate the latest version of Sub for SB 30 today, and many say it won't be debated at all.

We heard this morning that there were problems with the bill and ultimately, the plan to debate taxes today was set aside. The House went ahead with its debate on K-12 Education, with rumors of 90 amendments in the wings. Legislative staff have suggested that today's education debate could set a record for amendments drafted.

At this point, we do not know if it was the liquor enforcement tax that derailed the Tax conference committee report - but hopefully our arguments were persuasive enough to keep enforcement tax increases out of the next tax proposal.

Rumors have been swirling that House leadership may have told legislators that the liquor industry was in favor of increasing the enforcement tax up to 10%. It is difficult to imagine this. Some legislators said they were told it would only affect customers purchasing drinks, i.e. the drink tax. Also inaccurate.

Perhaps the details of liquor taxes have been forgotten since the hearings were held in February, but that is the risk of throwing new items into conference committees that have not passed either chamber.

Liquor taxes may or may not be a part of future packages - we will just have to see. Regardless, we hope that retailers have made certain that their legislators know where they stand - especially those who must compete with Missouri retailers.

The increased income taxes that have been a part of virtually every tax proposal this session will already add to the costs of our small businesses - a targeted tax on the products we sell would be piling on.

Just to be certain, a joint industry letter was circulated to legislators. Read the contents of that letter below:

Please Oppose CC Report on SB 30

The Tax Conference Committee Report on SB 30, adopted last night includes a 25% increase in the liquor enforcement tax – from 8 to 10 percent. We would urge you to vote NO !!

1. After extensive hearings, there was no support in House Tax Committee for an increase in liquor taxes.

2. Its inclusion clearly violates Joint Rule 3(f) prohibiting a CC report from including subject matters that have not passed either house.

3. This 25% increase in the enforcement tax would most heavily impact retail liquor stores and particularly those near our borders – stores already heavily impacted by the recent enactment of SB 13.

Please vote NO!!!!!

Amy Campbell - Kansas Assn of Beverage Retailers

Scott Schneider/Jason Watkins - Kansas Beer Wholesalers Assn, Kansas Restaurant & Hospitality Assn

Whitney Damron - Kansas Assn for Responsible Liquor Laws

Brad Smoot - Distilled Spirits Council

Aaron Mays - Standard Beverage

Philip Bradley - Kansas License Beverage Assn, Kansas Craft Brewers Guild, Kansas Viticulture and Farm Winery Assn, Artisan Distillers of Kansas

Larrie Ann Brown - Wine Institute

John Bottenberg - MillerCoors

Jim Dorsey - Southern Glazer’s Wine and Spirits

John Peterson - Anheuser-Busch Companies

**********************************************************
Contact: Amy Campbell 785-969-1617

Please Ask Your Legislators to Oppose Liquor Enforcement Tax Increase

Wed, 24 May 2017 12:33:08 GMT

TODAY: Please Oppose Conference Committee Report on SB 30

The Tax Conference Committee Report on SB 30, adopted at the 7:30 p.m. meeting last night,, includes a 25% increase in the liquor enforcement tax – from 8 to 10 percent. This tax increase has not passed either chamber and should not be part of this conference committee report. The House plans to vote TODAY.

After extensive hearings, there was no support in House Tax Committee for an increase in liquor taxes.
Its inclusion clearly violates Joint Rule 3(f) prohibiting a CC report from including subject matters that have not passed either house.
This 25% increase in the enforcement tax would most heavily impact retail liquor stores and particularly those near our borders – stores already heavily impacted by the recent enactment of SB 13.
The new description of Sub for SB 30 is not yet posted, as it was just adopted last night. It includes increasing enforcement tax rate from 8% to 10%, increased income tax rates, revoking LLC exemptiion, revoking the sales tax exemption on some services.

Please Act Immediately -

Reach out to the members of the House of Representatives. Emails and phone calls are helpful. See article below about the tax bill that failed on Monday.

Link to List of Representatives

Find your State Representative at https://votesmart.org/ - enter your zip code and street address to find your State Representative and State Senator

NOTE: Secretaries for rank and file legislators were not funded past the 90th Day - so, some office answering machines are not being monitored. In those cases, you may need to send an email or call the mobile phone, if yoou have that number.

Affordable Care Act Repeal Passes U.S. House of Representatives

Thu, 04 May 2017 20:55:53 GMT

Today, Congress passed the AHCA repealing the Affordable Care Act (Obamacare) with a partisan vote of 217-213. The bill will go to the Senate. It is expected to be amended in the Senate.

The legislation would offer tax credits instead of subsidies to pay for health coverage. It allows states to opt out of basic requirements established by the ACA, including essential health benefits, coverage for preexisting conditions, etc. It requires states to provide high risk pools to cover those with preexisting conditions, if the state chooses to opt out and offers some funding that could be used to help pay for that and health services not covered.

The legislation changes the current cost equalization formula, allowing premiums to be lower for young people and higher for older adults. Medicaid would no longer be funded according to beneficiaries’ needs – it would be paid on a per member basis or states could accept a limited block grant for their program. Kansas state officials have been talking about a Medicaid block grant for over a year, hoping that would help them to eliminate the annual cost increases to the program. (It is not clear how annual health care cost increases would be managed if the funding does not grow at a comparable rate.)

The legislation attempts to encourage policyholders to avoid lapses in coverage by requiring a 30% surcharge when policies lapse. (This, of course, assumes that people have some choice in whether or not their policies lapse.)

The bill will repeal the payroll tax and investment tax increases on higher income payors that were designed to help pay for the ACA.

Kansas delegation in U.S. House unanimously votes for partial Obamacare repeal, http://cjonline.com/news/local/2017-05-04/kansas-delegation-us-house-unanimously-votes-partial-obamacare-repeal

Read an article about what is in the AHCA legislation https://www.nytimes.com/2017/05/04/us/politics/major-provisions-republican-health-care-bill.html?_r=0

Taxes Dominate 1st Week of Veto Session

Thu, 04 May 2017 20:51:19 GMT

Senate Federal and State Affairs Committee will hear HB 2277 establishing common consumption areas tomorrow morning at 9 a.m.

Taxes Dominate 1st Week of Veto Session

This afternoon, the House Tax Committee hosted an overview of the budget bills as they are currently proposed by the House Appropriations Committee in order to compare how the multiple tax proposals that have been considered measure up against the spending priorities set up to this point. Those numbers did not include a House Education funding proposal to address the recent Supreme Court decision citing inadequate state funding for K-12 education, but the committee estimated it could cost an additional $170 million in FY 18 and $350 m in FY 19. It also did not include a proposal to reduce the planned fund transfers from the Department of Transportation – the Governor’s Budget Amendments recommend transferring all of the available funds from KDOT to balance the budget for the next two years. Once those numbers were rolled in with the work of the House Appropriations Committee, the target seemed to be around $600 million or more. There was further discussion of income tax rates, motor fuels tax, tobacco taxes, removing sales tax exemptions from various services, and other strategies.

This is the first time we have seen a tax committee meeting in which those targets are set out before the committee. It was designed to show committee members what they can – and can’t – accomplish with their current income tax bill. So far, the House Tax Committee has preferred proposals that focus on multiple income tax tiers and rolling back the LLC exemption, like the bill passed in February that was vetoed by Governor Brownback – but do not appear to raise enough revenue to cover everything discussed today.

Rep. Ken Corbet argued that increasing motor fuels tax and tobacco taxes would simply disadvantage current business owners – especially those who compete along the Missouri border – “it is a double smack against all of those who try to have a business on the border. If we keep this up, it looks like Kansas making Missouri great again and I think we need to think about that.”

Rep. Tom Burroughs agreed, pointing out that simply rolling back all of the pieces of the 2012 tax changes would resolve the budget hole - rather than piecing together a bunch of new tax increases. “I think this is the wrong route to take. If this budget crisis was caused by previous legislatures, then we need to go back and right the ship. If the 2012 tax plan is a failure, let’s go back and look at the 2012 tax numbers and see where that puts us.” Corbet is not a fan of revoking the 2012 tax plan.

On another floor of the Capitol, the Senate Taxation Committee was compiling another tax proposal, including a form of flat tax with the lowest income Kansans (under $6300 for single filers and $12600 for married) paying 0% and everyone else paying 4.4%. The plan would eliminate the current exemptions for LLCs and non-wage income January 1, 2018. Many of the plans rejected to date have tried to make the tax increases retroactive to January 1, 2017. The plan would also reduce the sales tax on food from 6.5% to 5.5% This plan was proposed by first term Senator Larry Alley.

So far this week, the Tax conference committee has rolled out two income tax increase proposals with multiple tax tiers, also revoking the LLC and non-wage income exemptions, along with reinstating a number of the income tax deductions that have been eliminated. Each time, the scheduled floor debate (Tuesday in the Senate and Wednesday in the House) was cancelled for lack of votes.

At this point, neither chamber has taken the steps that would be needed to consolidate support for a tax proposal either through a coalition of moderate and conservative Republicans or through a coalition of moderate Republicans and Democrats. One stumbling block is that many want to see an education funding plan passed before agreeing on a revenue package. There are those who feel the proposals so far have not raised enough money and those who feel they raise too much. And there are those who will not vote for any increase, believing that not enough has been done to cut state spending. Neither the Senate nor the House can claim they have the votes organized for any given plan – and meanwhile, the Governor has already vetoed the tax proposal that was adopted in February that looked similar to this week’s bills.

On Tuesday, legislators were told to plan to work through the weekend. That remains to be seen. The veto session appears likely to last beyond the two week target.

-top:0in;marginsV] D 8

Senate Passes Limited Beer Compromise - Sub for SB 13

Fri, 07 Apr 2017 16:04:12 GMT

Senate Passes Limited Beer Compromise

The Senate concurred on House Substitute for SB 13 this morning with a vote of 27-11. The bill will go to the Governor.

There were supportive comments from senators who said they were glad to see a compromise to the beer issue that has been around the Legislature for 30 years. According to Senate President Susan Wagle, the corporate grocery and convenience stores have been putting a lot of pressure on the Senate to deal with liquor expansion, particularly in the past six years or so, but she has always insisted the Senate wouldn’t deal with it until the corporate big guys sat down with the liquor stores to form some kind of agreement.

Senator Anthony Hensley, leader of the minority party, stated his strong opposition to the process. Hensley protested that the bill did not have any hearings in the Senate and now – as a motion to concur – did not allow any opportunities for amendments. He stated that the impact of beer sales in the grocery and convenience stores will be a hardship for liquor stores and he is concerned about the survival of some of the small businesses in his district.

Several senators emphasized that the ten year moratorium on further liquor expansion legislation was very important to them, including Senator Oletha Faust-Goudeau, who asked the carrier of the bill, Senator Julia Lynn, to verify the ten years.

Senator Lynn Rogers entered the following explanation of vote into the record:

“I am voting yes on SB 13 today because small businesses in my District have asked me to. These small businesses provide the livelihood to over 150 individuals or families who live in my district. Many of those owners were part of the discussion and deliberation process for SB 13 and reluctantly become proponents of compromise.

The 3 big box stores and multiple convenience stores in my district have told me they would simply add shelf space for product and not hire additional staff if major changes were made to our liquor laws. While access to liquor & wine in these kind of stores would be convenient, it would have meant fewer jobs and businesses for District 25.

I'm glad these small businesses were part of the process on this bill because this body was not. With no hearing in our Chamber & only finding out about the compromise in the last couple days. I would have liked more time to hear from constituents.

I hope the 10 year compromise evidenced by this legislation will be honored. I for one, will remember it clearly.”

Today is Drop Dead Day at the Kansas Legislature. It is the First Adjournment deadline for wrapping up work on most bills before the Legislature takes a few weeks off. Legislators will return to begin the Veto Session on May 1.

*****************************************************
PLEASE RSVP FOR KABR Meetings in Kansas City April 21-22-23 at THIS LINK.

Kansas Senate Defeats Flat Tax

Thu, 06 Apr 2017 19:12:09 GMT

The Kansas Senate defeated SB 214 decisively today after debating the bill all morning and another hour or so after lunch.

A motion by Senator Alley to send the bill back to committee failed. That would have kept the bill alive for further committee amendments, but senators preferred to kill the bill.

The bill would have changed Kansas income taxes to a 4.6% flat tax. Current law provides for a two bracket system at 2.6% and 4.6%. The bill also eliminates the LLC income tax exemption and reduces the sales tax on food by 1% in the first year. Governor Brownback has indicated support for this plan, but there opposition cited the insufficient revenue raised by the bill. Senator Hensley quoted the Kansas Center for Economic Growth, which said the bill would raise taxes on a majority of lower income Kansans.

House Passes Beer Compromise Bill

Thu, 06 Apr 2017 19:07:39 GMT

The House of Representatives passed House Sub for SB 13 today after debating for about an hour. The bill now goes to the Senate for action - probably tomorrow.

Rep. Erin Davis carried the bill and characterized it as a good compromise between retailer organizations and proponents of Uncork. Opponents argued that the bill would harm small liquor stores (KABR included this statement in communications to legislators) and the compromise was not worth it. Surprisingly, there wasn't any talk about "convenience" or "free markets". Most of the supporters talked about the merits of the compromise, the impending CMB "crisis" and the potential benefits for liquor stores selling other products. More than one legislator said that this was a true compromise in the sense that none of the parties were happy with everything in the bill. Many legislators are pleased that the bill delays implementation for two years and sets an expectation that further liquor expansion will be delayed beyond that time.

Read the KABR message to House members here.

There were a few comments about the retailers associations and whether or not small liquor stores were members. Two legislators cited messages from retailers who criticized the association. That is hard to hear for the liquor store owners who commit their time and energies to the association meetings and teleconferences while others do not - but it is important to understand that this is significant change, and it is moving quickly because of First Adjournment. People who are not in the Statehouse all session and seeing the shifting positions firsthand should not be expected to be suddenly pleased with compromise. The effects of this change will be felt by all liquor stores. We have encouraged legislators to stand by their local liquor stores - positive or negative - on the vote.

Just before lunch, the House voted to send the bill to final action on a vote of 70 - 50, with five not voting. A motion to "emergency" the bill to final action failed before lunch, but was successful when they returned to session at 2:00 p.m. The Final Action vote was 80-45.

YES: Alcala, Aurand, Awerkamp, Ballard, Barker, Becker, Bishop, Brim, Burroughs, Campbell, Carpenter, Claeys, Clark, Clayton, Cox, Davis, Deere, Delperdang, Dierks, Deitrich, Dove, Elliott, Eplee, Esau, Finney, Frownfelter, Gallagher, Gartner, Good, Hawkins, Hineman, Holscher, Humphries, Jennings, Johnson, Karleskint, Kelly, Kessinger, Koesten, Lakin, Landwehr, Lusk, Lusker, Markley, Mason, Murnan, Neighbor, Ohaebosim, Osterman, Ousley, Parker, Phelps, Phillips, Pittman, Proehl, Rafie, Resman, Rooker, Ruiz, Ryckman, Sawyer, Schreiber, Schwab, Seiwert, Sloan, Smith, Stogsdill, Sutton, Swanson, Tarwater, Terrell, Trimmer, Ward, Weigel, Whipple, Whitmer, Williams, Wilson, Winn, Wolfe-Moore

NO: Alford, Arnberger, Baker, Blex, Carlin, Carmichael, Concannon, Corbet, Crum, Curtis, DeGraaf, Ellis, Finch, Francis, Garber, Helgerson, Henderson, Hibbard, Highberger, Highland, Hodge, Hoffman, Houser, Huebert, Jacobs, Jones, Judd-Jenkins, Kuether, Lewis, Mastroni, Miller, Orr, Patton, Powell, Rahjes, Ralph, Schroeder, Smith, Thimesch, Thompson, Vickrey, Victors, Waymaster, Weber, Wheeler

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

ast-V] {

House to Debate Limited Beer Bill Today

Thu, 06 Apr 2017 12:34:12 GMT

The House of Representatives is scheduled to debate House Sub for SB 13 today - that is the bill passed by the Commerce Committee on Tuesday. The House convenes at 10:00 a.m. You can listen at www.kslegislature.org House audio.

KABR supports the compromise bill but has warned legislators that the compromise is harmful to many small businesses when CMB retailers begin selling beer up to 6% alcohol by volume April 1 2019 as prescribed in the legislation. The compromise sets out multiple new rules regarding price nondiscrimination, changes the products that licensees are able to sell and is designed to establish a predictable regulatory marketplace for the near future.

It is a controversial issue for retailers. The negotiated bill puts an end to the concerns about 3.2 products and the decreasing availability of these products without making corporate cmb retailers into liquor licensees. Most agree that the options will not get better in the near future. But there is an impact on retailers.

The bill has generated a lot of interest and many legislators have commended the compromise. At the same time, retailers are fortunate to have a strong number of legislators who are very concerned about the impact of the change on current retailers.

Kansas Senate to Debate Flat Tax Today

The Kansas Senate will try again to pass a tax plan this session before it goes on spring break Friday. SB 214 would change Kansas income taxes to a 4.6% flat tax. Current law provides for a two bracket system at 2.6% and 4.6%. The bill also eliminates the LLC income tax exemption and reduces the sales tax on food by 1% in the first year. Governor Brownback has indicated support for this plan, but there is opposition. Many legislators say the plan doesn't raise enough money to cover the state's revenue needs, other oppose the measure because it will raise taxes for lower income Kansans.

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

RSVP Today: Kansas City Retailers Conference and Legislative Luncheon

Wed, 05 Apr 2017 11:59:28 GMT

Join retailers and legislators in Kansas City April 21-22-23 - Learn about the 2017 Legislative Session liquor and tax legislation. Be there to show that the decisions made in Topeka matter to all of us! (There will not be a Kansas City meeting in August this year.)

RSVP here: Kansas City Retailers Conference and Legislative Luncheon

Please make your hotel reservations ASAP at Best Western Premier KC Speedway, 10401 France Family Drive, KC, KS 66111 913-334-4440. Rooms are limited.

Kansas City Retailers Conference and Legislative Luncheon Hotel Room Block and Sunday Board Mtg - Best Western Premier, 10401 France Family Drive, KC, KS 66111 913-334-4440 SEE EACH EVENT FOR LOCATIONS
Date: 21 Apr 2017 4:00 PM EDT

Kansas City Retailers Conference and Legislative Luncheon

Friday, Saturday and Sunday - April 21-22-23, 2017

SCHEDULE

FRIDAY SOCIAL with Legislators and Liquor Industry Members - AD ASTRA SELECTIONS

4:00 pm - 7:00 pm

Ad Astra Selections, 9898 Pflumm Road, Lenexa, KS 66215

SATURDAY LEGISLATORS LUNCHEON & ROUNDTABLE:

12:00 - 1:30 pm Legislators and Retailers Luncheon - Informal Roundtable with State Legislators.

Worldwide Wine and Spirits, LLC.,
17501 W 98th Street #35 - 38, Lenexa, KS 66219

News from the Kansas Legislature - liquor law changes and tax legislation updates. Visit with area legislators.

1:30 pm - 3:00 pm Retailers Strategy Session

If you are a member of KABR, you should plan to attend. Please send recommended agenda items to davisliquor2@cox.net

Saturday Dinner:

6:30 - 8:30 p.m. Dinner - Join other retailers for dinner - separate checks.

SUNDAY EVENTS -

9:30am - 12:00 pm KABR Official Business Meeting of the Board of Directors

1st Floor Conference Room, Best Western KC Speedway Inn at the Legends

All Members are Encouraged to Attend the Official Business Meeting.

MAKE YOUR HOTEL RESERVATIONS AT BEST WESTERN PREMIER KC SPEEDWAY BY APRIL 7! 913-334-4440

THANK YOU EVENT HOSTS:

AD ASTRA SELECTIONS
WORLDWIDE WINE AND SPIRITS
KANSAS WINE AND SPIRITS WHOLESALERS ASSOCIATION

More information and online registration: Kansas City Retailers Conference and Legislative Luncheon
Special thanks to our sponsors: Ad Astra Selections, Worldwide Wine and Spirits, and the Kansas Wine and Spirits Wholesalers Association.

House Committee Passes Limited Beer Proposal

Wed, 05 Apr 2017 02:44:36 GMT

House Commerce Committee Passes Limited Beer Proposal

Today, the House Commerce Labor and Industry Committee met and passed the limited beer content compromise language that has been negotiated by KABR, KARLL and Uncork proponents.

The Committee approved the new language as a substitute bill for HB 2282, then inserted the new bill into SB 13 - a move called a “gut and go”. The full House of Representatives could debate the bill as soon as Thursday.

Read Substitute for SB 13 Read the Supplemental Note for SB 13

Before taking action, the Committee had a full discussion of the proposal and questioned representatives of these organizations, as well as the Kansas Beer Wholesalers and Kansas Wine and Spirits Wholesalers Association.

Read the KABR statement here. Read the KARLL comments here.

In the meeting, Whitney Damron, KARLL; Amy Campbell, KABR; Tom Palace, Uncork Kansas; and Dick Stoffer, HyVee were each individually asked these questions by the Chairman and all responded yes to both questions.

1. “Are you and the members of your organization in support of the Substitute Bill for HB 2282?”
2. “This legislation is a major, fundamental change in more than 60 years of state policy for the sale of intoxicating liquor products and is likely to have a marked impact on Kansas retailers as well as new licensees that will be allowed to sell CMB and a stronger beer product. The substitute bill contains a requirement for ABC to conduct a market study and present its findings to the Legislature ten years following this bill’s enactment. Do you and your clients believe this is a reasonable timeframe to allow for the impact of this law on all licensees to be measured before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale?”

Lobbyist Tom Palace verified that Uncork was representing the Petroleum Marketers and Convenience Stores Association, Casey’s General Stores, QuikTrip, Walmart, Dillons and HyVee and all support the agreement as stated above.

Read the notes here.

As word of this proposal has gotten around the Legislature, many have contacted us to learn about the legislation. We are sharing information and helping them to connect with the retailers in their districts. There has been appreciation from many legislators for the hard work that went into this effort. It is obvious where our retailers have been actively involved and their legislators are very interested in how the proposal will work and how it will affect their communities and retailers in the future.

In addition to the moratorium, a key piece of this proposal is that it will keep the CMB outlets separate from our state regulated retail liquor stores – requiring the more regulated liquor stores to handle stronger beer, wine and spirits – rather than following the pattern of Oklahoma, Colorado, Tennessee and Arkansas, where grocery stores are becoming liquor/wine retailers.

Click here for the list of House members.

The Legislature is scheduled to reach First Adjournment on Friday, April 7 – but there were rumors today that they might wind up this week a little early. At this point, there is still no budget, no tax plan, no new school finance formula. The Senate adopted a Rescission Budget today and the House is supposed to act tomorrow – that is the budget for the current fiscal year ending June 30, 2017. With all of these issues still pending, the veto session is unlikely to be short.

*************************************************************************

REMEMBER TO RSVP FOR THE KANSAS CITY RETAILERS MEETING APRIL 21-22-23 HERE. MAKE YOUR HOTEL RESERVATIONS NOW AT THE BEST WESTERN PREMIER KC SPEEDWAY INN AT 913-334-4440.

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

KABR Endorses Limited Beer Proposal - with caution

Mon, 03 Apr 2017 22:39:07 GMT

KABR will endorse the compromise proposal to maintain separate licensing structures for retailers of alcoholic liquor and CMB retailers to be implemented April 1, 2019. The proposal will keep Kansas retail licenses separate for the sale of stronger alcohol products v. limited alcohol beer. The compromise was negotiated between Uncork proponents, the Kansas Association of Beverage Retailers (KABR) and the Kansas Association for Responsible Liquor Laws (KARLL).

The proposal states CMB retailers would not sell beer over 6 percent alcohol by volume and liquor retailers may sell all current products plus cereal malt beverage. Liquor retailers may sell other products up to 20% of gross sales, except that the sale of tobacco products and lottery shall not be included in the 20% limitation.

The Division of Alcoholic Beverage Control will issue an impact study in ten years to report the market impact of the law change. The ten years will be a reasonable time to measure the impact of law on the liquor industry without further legislation to expand where liquor products are sold. Uncork proponents will publicly support the ten year period.

Other changes include application of nondiscrimination and price rules to CMB and liquor licensees and provisions for distributors to require minimum orders for delivery, as well as retaining current definitions for CMB and beer. KABR supports the Kansas independently owned retail liquor stores as the exclusive off premise retailer of higher alcohol beer and all wine and spirits products.

While KABR is cautiously supportive, it is only because the reality of changes in the states around Kansas lead us to believe that postponement would only result in legislation that is less targeted at CMB and even more harmful to our small businesses and our communities.

The impact of changes to Kansas beer laws is likely to be harmful to many Kansas small businesses - and that impact should not be diminished. The 2019 strong beer implementation date in Colorado legislation and 2018 in Oklahoma has created a desire for "3.2 solution" in the Legislature and the parties have worked to draft a solution that maintains the public safety priority for regulating the sale of alcoholic beverages, while attempting to minimize the advantages of corporate retailers where possible.

KABR's support is conditional on the provisions above - any significant changes in this proposal or efforts by Uncork proponents to avoid the public statements supporting the moratorium could void that support.

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

Important: Update on Uncork and 3.2 Issue - Teleconference

Mon, 03 Apr 2017 17:59:23 GMT

Updated information: Uncork has signed off on the committee questions, will speak for the committee record and agree to the ten year moratorium. Bill would include a market impact report from the Division of ABC in ten years and the Uncork members would respond to the following question - or something similar:

“Do the members of Uncork believe this is a reasonable time frame to allow for the impact of this law on all licensees to be measured before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale?”

Implementation date would be April 1, 2019 - instead of January 1.

Proposal would allow CMB retailers to sell up to beer that is 6.0 alcohol by volume and allow liquor stores to sell cereal malt beverages.

Liquor stores could sell other products up to 20% of gross sales. Could sell lottery and tobacco, but lottery and tobacco sales would not be part of the 20% limitation.

Rules and regulations amended to apply price nondiscrimination rules across licenses (i.e. for CMB and liquor retailers).
Division of ABC will have authority to implement rules and enforce them in CMB outlets.
No CMB retailer could sell for less than acquisition cost plus applicable tax except as otherwise provided by law and rules.
Distributors request provision to establish minimum order quantities by case or dollar value.
Distributors request provision to grandfather CMB and strong beer franchises as of January 1, 2017.
Wine is removed from the legislation.

The discussions have been directed and facilitated by the Speaker of the House and the House Commerce Committee Chairman.

The House Committee on Commerce Labor and Industry is likely to meet in the next couple of days to discuss the proposal.

******************************************************
The Board of Directors will vote on the issue this afternoon.

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

Update on 3.2 Beer Meetings

Sat, 01 Apr 2017 21:56:05 GMT

Conversations with grocery and convenience stores regarding the 3.2 issue took a jump forward March 30 when Uncork representatives changed their position regarding a moratorium on future liquor expansion legislation.

The retailers groups have said that they are willing to explore a solution to the anticipated changes in the 3.2 cereal malt beverage market but would need assurance that the Uncork proponents would not be pushing further liquor deregulation in the near future.

Spokesmen for Walmart and others initially insisted that such an agreement would be a violation of federal anti-trust laws – restriction of trade KABR asserted that retailers would need to anticipate a stable regulatory environment for a significant time period.

Now it appears that the proponents may be willing to state on the record (before the committee and in the committee records) that this 3.2 proposal satisfies their legislative agenda and they would agree that a ten year timeframe is reasonable to allow for the impact of the new law on all licensees to be evaluated and reported by the Division of ABC – before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale.

KABR proposed language ordering the Division of ABC to submit a report after ten years to the Legislature in order to establish that timeframe. That report would include numbers of licensees on an annual basis over ten years, tax revenue/sales numbers from CMB and liquor products, density issues – impact on rural markets, social impact – DUIs, theft, etc.

Other issues are:

6.0 Alcohol by Volume beer sales allowed for cmb retailers. Uncork requested 8.99 ABV – the Oklahoma law. The beer wholesalers indicate that the number should be 6.0 ABV. The Committee Chairman’s recommendation was 7.5%, but he has indicated he had picked up that number from conversations and is not committed to it. (Liquor retailers sell CMB.)
Allow liquor stores to sell other products, up to 20% of their sales could come from these other items. Tobacco and lottery would be allowed, but not considered part of the 20% calculation. This was proposed by the Chairman. Convenience stores oppose the tobacco portion, but will accept it for a 2019 implementation date.
Implementation date: April 1, 2019. Retailers suggested implementing the law in 2020, but Uncork insisted it happen by or before January 1, 2019. The parties debated this issue back and forth. January is a difficult month for retailers and pushing it back should allow for transition activities during slower months of the year. The Oklahoma law begins October 1, 2018 and the Colorado law begins January 1, 2019. CMB retailers have been told that the supply of 3.2 will be in doubt by 2019 because of these law changes. Read more about this below.
Moratorium suggested language – “Do the members of Uncork believe this is a reasonable timeframe to allow for the impact of this law on all licensees to be measured before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale?”
Rules and regulations amended to apply price nondiscrimination rules across licenses (i.e. for CMB and liquor retailers).
Division of ABC will have authority to implement rules and enforce them in CMB outlets.
No CMB retailer could sell for less than acquisition cost plus applicable tax except as otherwise provided by law and rules. (Same as liquor retailer.)
Distributors request provision to establish minimum order quantities by case or dollar value.
Distributors request provision to grandfather CMB and strong beer franchises/definitions as of January 1, 2017.
Wine is removed from the legislation.

The discussions have been directed and facilitated by the Speaker of the House and the House Commerce Committee Chairman. The Speaker would like to see a public committee hearing scheduled before the Legislature goes home for First Adjournment April 7. Things are moving quickly and KABR will keep you informed.

The Board of Directors will vote on this issue during the Monday teleconference at 4:30. All members are encouraged to participate in the bimonthly KABR teleconferences.

+++++++++++++++++++++++++++++++++++++

Amy Campbell, Lobbyist 785-969-1617 Email Lobbyist

Brian Davis, President 316-990-1425 email Brian

RSVP Today: Kansas City Retailers Conference and Legislative Luncheon

Sat, 01 Apr 2017 17:34:49 GMT

RSVP here: Kansas City Retailers Conference and Legislative Luncheon

Kansas City Retailers Conference and Legislative Luncheon

Friday, Saturday and Sunday - April 21-22-23, 2017

SCHEDULE

FRIDAY SOCIAL - AD ASTRA SELECTIONS

4:00 pm - 7:00 pm

Ad Astra Selections, 9892 Pflumm Road, Lenexa, KS 66215

SATURDAY LEGISLATORS LUNCHEON & ROUNDTABLE:

12:00 - 1:30 pm Legislators and Retailers Luncheon - Informal Roundtable with State Legislators.

Worldwide Wine and Spirits, LLC.,
17501 W 98th Street #35 - 38, Lenexa, KS 66219

Changes to Kansas beer laws are pending action at the Kansas Legislature. Do not miss this important meeting!

1:30 pm - 3:00 pm Retailers Strategy Session

If you are a member of KABR, you should plan to attend.

Saturday Dinner:

6:30 - 8:30 p.m. Dinner - Join other retailers for dinner - separate checks.

SUNDAY EVENTS -

9:30am - 12:00 pm KABR Official Business Meeting of the Board of Directors

1st Floor Conference Room, Best Western KC Speedway Inn at the Legends

All Members are Encouraged to Attend the Official Business Meeting.

MAKE YOUR HOTEL RESERVATIONS AT BEST WESTERN PREMIER KC SPEEDWAY BY APRIL 7! 913-334-4440

THANK YOU EVENT HOSTS:

AD ASTRA SELECTIONS
WORLDWIDE WINE AND SPIRITS
KANSAS WINE AND SPIRITS WHOLESALERS ASSOCIATION

More information and online registration: Kansas City Retailers Conference and Legislative Luncheon

Meetings on Uncork and 3.2 Issue - Teleconferences

Thu, 30 Mar 2017 20:50:16 GMT

Very Important: KABR Members – Please Join the KABR Teleconference Friday, March 31 at 12:30 p.m. Dial 1-877-278-8686 and enter code 809216. Please mute your phone until you need to speak.

Update on 3.2 Discussions

Conversations with grocery and convenience stores regarding the 3.2 issue took a jump forward yesterday when Uncork representatives changed their position regarding a moratorium on future liquor expansion legislation.

Spokesmen for Walmart and others initially insisted that such an agreement would be a violation of federal anti-trust laws – restriction of trade. KABR asserted that retailers would need to anticipate a stable regulatory environment for a significant time period.

KABR proposed language ordering the Division of ABC to submit a report to the 2027 Legislature (in ten years) in order to establish that timeframe. That report would include numbers of licensees on an annual basis over ten years, tax revenue/sales numbers from CMB and liquor products, density issues – impact on rural markets, social impact – DUIs, theft, etc.

Bills Advance

Thu, 30 Mar 2017 20:49:32 GMT

In Other News

Today, the House advanced Sub HB 2277 to final action Monday. The bill creates common consumption areas designated by cities and counties.

Yesterday, the House Committee on Taxation passed HB 2395 –establishing a flat income tax rate.

HB 2282 - Uncork & the 3.2 Issue, HB 2366 - Keg Registration, HB 2277 - Common Consumption Areas, HB 2362 - ABC Modernization Fee

Mon, 27 Mar 2017 13:40:50 GMT

HB 2282 - Uncork & the 3.2 issue

HB 2366 - Keg Registration

HB 2277 - Common Consumption Areas

HB 2362 - Division of ABC Modernization Fees

Meetings on Uncork and 3.2 Issue

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.

Contact:

Brian Davis, President 316-990-1425 Email President

Amy Campbell 785-969-1617 Email Lobbyist

Retailers Meet to Discuss HB 2282 & 3.2 Beer; KABR Testifies on HB 2366

Mon, 20 Mar 2017 18:55:52 GMT

HB 2282 - Uncork & the 3.2 issue and

HB 2366 - Keg Registration

Retailers Meet to Discuss HB 2282 & 3.2 beer

Meetings are being held to discuss the Uncork bill and whether or not there might be a negotiated solution for the "3.2 issue".

Where We Are Today:

HB 2282 was referred to House Appropriations Committee instead of receiving a committee vote at the end of February. The House Speaker asked Chair Les Mason to convene the retailers with Uncork supporters to develop a bill that could go to the full House.

KABR members have seen this top-down pressure before. In spite of the hours of discussion we have given the issue in the past, Uncork proponents complain that retailers never bring solutions and just say no.

At this point, no one knows what will happen with the bill next. It seems that the Commerce Committee members are relatively solid in their view of the bill. We do not know if leadership intends to move the bill through alternate channels, but we are aware that this issue is likely to pop up as a floor amendment to other bills.

Certainly, the overall landscape has changed. With Oklahoma and Colorado adopting major liquor law changes since May of 2016, many legislators are telling us that the 3.2 issue will need to be solved. We continue to dispute whether or not there is any crisis coming at all. Legislators have received the message that 3.2 retailers are going to have problems putting 3.2 on their shelves - and will have fewer products to sell after Oklahoma and Colorado implement changes in their beer laws.

Meetings:

Last week, at the request of the committee chairman, Amy Campbell, KABR, and Whitney Damron, KARLL, met with representatives of the convenience stores and Uncork, as well as both the Wine and Spirits Wholesalers and the Beer Wholesalers, to go over a list of amendments or "starting points" suggested by the chairman. Read the chairman's proposed amendments here. The chairman's suggestions are only a starting point for discussion. Key concerns were discussed, including the level of alcohol by volume (ABV) of beer products recommended for sale to replace the potential loss of 3.2 products, a delayed implementation date, and how trade practices and distribution laws would apply to retailers who currently sell CMB and do not operate under the same rules. The group is scheduled to meet again.

Over the years, KABR has held numerous discussions about how these bills work or do not work. Moving forward, Kansas retailers are facing the risks associated with the actions of our surrounding states with Beer and Wine sales given to grocery and convenience stores in Oklahoma, and Beer, Wine and Liquor Sales expanded to grocery in Colorado.

It is fortunate that most legislators appear to be indifferent to copying these states. However, there is legislative pressure to address the concerns about 3.2.

KABR will continue to participate in these meetings. Members are encouraged to join our bimonthly teleconferences or to communicate with our lobbyist or President as we move forward.

+++++++++++++++++++++++++++++++++++++

Amy Campbell, Lobbyist 785-969-1617 Email Lobbyist

Brian Davis, President 316-990-1425 email Brian

HB 2366 Beer and Keg Registration Act

KABR provided neutral testimony on HB 2366 before the House Federal and State Affairs Committee on Wednesday, March 15. The purpose of the legislation is to add “hard cider” to beer and cereal malt beverage, the products subject to the Beer and Cereal Malt Beverage Keg Registration Act. Read the testimony.

Although the objective is simple, KABR members are concerned about the potential for amendments. The compromise that was crafted in 2002 between the retailers and the proponents of keg registration was a careful balance. The compromise sought to balance the public safety objective of deterring adults from providing kegs to youth with the need to maintain reasonable privacy protections for individuals who purchase alcohol. Retailers are accustomed to implementing the State’s public safety goals as an obligation of holding a liquor license, but keg registration act takes that one step further – requiring retailers to gather, hold and provide customer’s personal information to law enforcement without a warrant. We believe that is a task that should be carefully regulated.

The language of the bill adds “hard cider” to the products in the keg registration statute, and changes the name of the Act to the Keg Registration Act. In order to change the name, the bill includes Liquor Control Act licensing statutes, where they refer to the keg registration act.

Committee Chair Judge Barker said that he was a part of a judicial group and substance use prevention organization that supported keg registration at the time of its passage. Rep. Smith, a law enforcement officer, indicated that he, too, was a supporter. Both said they believe that the statutes continue to have a deterrent effect.

KABR will watch this bill closely for potential amendments.

Senate Kills SB 175 Governors Tax Plan

Wed, 08 Mar 2017 02:57:45 GMT

Senators defeated SB 175 today by voting 37-1 to strike the enacting clause of the bill. After a little more than 2 hours debate on the various sections of the bill, Senator Pyle offered the motion to strike the enacting clause - which has the effect of defeating the legislation.

A motion by Senator Francisco was adopted to allow the deduction of losses from sources of passive income - such as rental properties or royalties. Then, Senator Suellentrop made a motion to divide the bill - which required senators to vote on each section of the bill. After most of the sections had been voted down, the Pyle motion had the effect of ending the debate and killing the bill.

Senator Masterson called it a "colossal waste of time".

Senate leadership indicated that the Governor had requested a hearing for his bill and that was the point of the Senate debate.

Senate to Debate SB 175 Governors Tax Plan - Enforcement Tax Increase

Tue, 07 Mar 2017 16:06:05 GMT

Today, the Senate will debate SB 175 - the Governors Tax Plan on General Orders. The Senate session begins at 2:30 p.m. You can listen to the debate at www.kslegislature.org by selecting "Listen to the live proceedings in the Senate".

Click here to read the bill description.

Passive income received from rents and royalties would be subject to income tax beginning with tax year 2017. The bottom individual income tax bracket would remain at 2.7 percent - rather than the scheduled reduction from 2.7 percent to 2.6 percent. The community services contribution income tax credit also would be repealed beginning with tax year 2018.

The annual report fee paid to the Secretary of State for all for-profit business entities would be increased from $40 to $200 beginning in FY 2018. The fee would apply to all shareholders and partners owning at least 5.0 percent of business entities.

Liquor Enforcement Tax Provisions - The rate of the liquor enforcement tax would be increased from 8.0 percent to 16.0 percent on July 1, 2017.

Cigarette Tax Provisions - The cigarette tax rate would be increased from $1.29 to $2.29 per pack on July 1, 2017. An inventory tax (floor tax) of $1.00 per pack would be imposed on cigarettes on hand as of July 1 and would be payable as of October 31, 2017.

Tobacco Products Tax Provisions - The tobacco products tax rate would be increased from 10.0 percent to 20.0 percent of wholesale on July 1, 2017. An inventory tax (floor tax) equivalent to 10.0 percent of wholesale relative to tobacco products on hand as of July 1 would be payable as of July 31, 2017.

Attend Public Forums over the Break

Thu, 23 Feb 2017 22:42:47 GMT

With all legislators planning to go home later today and not return to Topeka until March 6, this presents a great opportunity to talk to your legislators away from the Capitol. Plan to attend Legislative Forums in your area. It is good for your legislators to see you in person. They need to know that you are paying attention and supporting them.

Hopefully you are already on your legislator's email list and receive their newsletters and information about local forums. You can also reach out to them and ask if they have time to meet with you during this break.

Saturday, February 25

Garden City - 10:00 am @ St. Catherine Hospital, Classroom B (301 E Spruce)
Lenexa - 10:00 am @ Lackman Library (15345 87th Pkwy)
Overland Park - 10:00 am @ Central Resource Library (9875 W 87th St)
WaKeeney - 8:00 am @ Jake & Chet's Cafe (233 S 1st St)
Hill City - 9:30 am @ Buck's Bar & Grill (222 N Pomeroy Ave)
Hoxie - 11:00 am @ Bowen Scout House (1041 Sheridan St)
Colby - 1:00 pm @ Colby Community College (1255 S Range)
Oakley - 2:30 pm @ Buffalo Bill Cultural Center (3083 US-83)
Quinter - 4:00 pm @ Jay Johnson Public Library (411 Main St)

Sunday, February 26

Wichita - SOUTH CENTRAL LEGISLATIVE DELEGATION PUBLIC FORUM - 2:00 - 4:00 p.m. - Wichita Public Library, Alford Branch, 3447 S Meridian Ave, Wichita, KS 67217

If you know of other forums we can share with our members, please send to Amy at campbell525@sbcglobal.net.

Governors Tax Plan will get Senate Vote

Thu, 23 Feb 2017 22:09:35 GMT

Today, the House Taxation Committee met at the rail during a break in order to pass HB 2315 - the Governor's Tax Plan including the liquor enforcement tax increase to 16% - out of committee "without recommendation". That moves the bill to the full House. Read the Chairman's statement here. When a bill is referred "without recommendation", it means the committee does not recommend the bill, but there is a desire to have the full chamber vote on it.

The Senate Assessment and Taxation Committee has also sent SB 175 - their version of the Governor's Tax Plan to the full Senate.

The House committee also crafted a new income tax bill similar to HB 2178, except that it includes only two income tax brackets. The new bill, HB 2370, was passed by the committee and recommended favorably for passage to the full House.

We do not know if these bills will be rushed to action today.

The Legislature plans to adjourn today for a week long break, to return March 6.

Tax Override Passes House, Fails Senate

Wed, 22 Feb 2017 21:00:17 GMT

Today - the Senate failed to have enough votes to override the Governor's veto of Sub for HB 2178 amending income tax rates and categories. This sends the House and Senate Tax Committees back to the drawing board and could bring forward some of the Governor's tax proposals, including motor fuels, tobacco and liquor enforcement tax increases.

Last week, the House of Representatives passed Sub for HB 2178, a bill to raise state revenues by rolling back much of Governor Brownback's signature income tax legislation. It increased rates, added a third higher income category, and reversed the LLC exemption, among other changes. A bipartisan alliance of Democrats and moderate Republicans passed the bill last week with 83 votes.

Last Friday, the Senate made a very unusual move to debate the bill on Senate General Orders rather than refer the bill to a committee, which is where newly passed House Bills typically are sent. After a heated debate, the Senate passed the tax bill with 22 votes, sending it to the Governor.

Last night, the Governor announced at the Kansas Chamber of Commerce Banquet that he would veto the bill. A veto override requires 2/3 vote in each chamber - a high bar.

Today, the House was able to override the veto with 79 votes, but the Senate mustered only 24 - 3 votes shy of the 27 votes needed. The bill is dead.

The House and Senate are scheduled to take a break after Thursday - Turnaround Day - and come back March 6 to resume their work. Turnaround Day is the deadline for all non-exempt bills to pass their chamber of origin. If bills do not meet that deadline, they will need to be blessed (referred to an exempt committee) or die.

While the House has already adopted a budget rescission bill - to amend current year funding for the fiscal year ending June 30 2017 - the Senate has not yet debated a rescission bill on the floor.

Action on Uncork Cancelled - Leadership Intervenes

Thu, 16 Feb 2017 18:45:41 GMT

Today's action on HB 2282 was cancelled.

It appeared the bill could be tabled by Commerce Committee members at its 1:30 p.m. meeting. However, House Leadership intervened, taking action to have the bill "blessed"* in order to keep it alive beyond the House deadline for committee action on Friday. The committee meeting was cancelled.

We have heard that the Speaker asked Committee Chair Les Mason to get the proponents and opponents together to work something out. It appears the Uncork lobby could see that the bill was in trouble and sought the intervention.

Committee members were as surprised as we were to hear this news.

It is ironic that the bill might have been voted on Tuesday, but the committee extended the vote to Thursday in order to "honor the committee process" and allow all members to be there - and now, the process has been diverted.

The legislative process has many twists and turns, but it looks like this issue could reach a debate on the floor this session. Even if the committee bill is set aside, we fully expect to see attempts to amend Uncork onto other bills in the full House.

Retailers and other opponents to HB 2282 have done a good job sharing their message with the House Commerce Committee, but we must turn our attention to the full House of Representatives and Senate. As we unravel what this means for the committee bill, you should work with your Representative and Senator now, so they are informed.

Those legislators who were looking forward to moving on to more important issues will now have to deal with it all session.

While this development is frustrating to them and to you, know that KABR will continue to fight and to keep you informed.

*Blessing a bill means to pull it from a non-exempt committee and refer it to an exempt committee. Exempt committees are exempt from deadlines, such as Friday's Deadline called Turnaround Day - the last day to consider non-exempt bills in house of origin. A bill simply needs to touch one of the exempt committees in order to survive beyond the deadlines, and possibly into the next session.

Although HB 2282 has been referred to Appropriations today, we expect it to be referred back to House Commerce for further action.

House Committee Hears Opposition to Uncork Bill

Wed, 15 Feb 2017 17:00:37 GMT

Today, the House Commerce, Labor and Economic Development Committee heard from opponents of HB 2282 – the 2017 liquor bill that would create Wine and Beer licenses for grocery and convenience stores.

Click here to read the CJ Online article: Critics Challenge Spirit of Retail Liquor Store Reform Bill.

It was standing room only in the hearing room, where retailers from across the state had gathered to hear the testimony.

Speakers included R.E. Tuck Duncan for the KS Wine and Spirits Wholesalers Association, Ross Schimmels - Standard Beverage Corporation, Aaron Rosenow - Vern’s Retail Liquor, Brandon Plaschka – Plaschka & Kramer Liquor, Amy Campbell – KS Association of Beverage Retailers, Frances Wood – Women’s Temperance, Jeff Breault – R & J Discount Liquor, Larry Baer – KS League of Municipalities, Whitney Damron – KS Association for Responsible Liquor Laws, Tim Liesmann – attorney, Seth Fox – High Plains Distillery, and Luke Lawlor – Ad Astra Distributor.

Debbi Beavers, Director of Alcoholic Beverage Control presented neutral comments on the bill, recommending changes. The agency was particularly concerned with bill language to allow corporations to hold liquor licenses and requiring only those holding 15% or more ownership to meet licensing requirements. The testimony states “In theory, seven or more convicted felons or previously revoked persons could team up and own a corporation and none would have to meet the qualification.” The cost of implementation to ABC (not including other agencies) would be staggered over time: FY 18 $58,056; FY 19 $650,739; FY $810,586. These estimates were based on 90% of the 1476 current CMB license holders choosing to get the new Wine and Beer license. She pointed out, however, that the Dept. of Revenue lists 4000 entities filing tax returns that fit within the NAICS codes (business definitions) listed in the bill. When questioned, she said that if the 4000 sought Wine and Beer licenses, the size and cost of the ABC would double from what it is today, but thought the number might not exceed 2500.

When questioning had ended, Chairman Les Mason announced the committee would work the bill on Thursday or he would entertain a motion to suspend the rules and work it today. Rep. John Carmichael made a motion to suspend the rules. That motion was passed with 9 votes. It appeared the committee would consider a motion to table the bill. Then, Rep. Erin Davis, who had returned to the committee just in time for the vote, requested the committee reconsider the motion and wait to work the bill. She pointed out that a couple of committee members had left the meeting early. The motion was reconsidered – and the bill will be debated and voted on at the Thursday 1:30 p.m. meeting of the committee. Committee members will receive a lot of pressure from Uncork supporters between now and Thursday.

KABR will post more copies of testimony at the website in the next few days. Click on underlined links - Read KABR Testimony here * Rosenow Testimony * Plaschka Testimony (includes comments from rural grocer) * Breault Testimony

Written testimony was distributed from another dozen or so opponents to HB 2282.

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Republlican	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Democrat	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Democrat	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Republican	512-N	785 296-7501	Brad.Ralph@house.ks.gov	Dodge City
Representative	Louis Ruiz	Democrat	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Republican	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Republican	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Democrat	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

House Will Work Tax Bill Tomorrow, Senate Tax Committee Passes Bills

Wed, 15 Feb 2017 04:35:29 GMT

House will work Tax Bill Tomorrow

The House of Representatives will work Sub for HB 2718 tomorrow. The bill includes amendments to Kansas income tax statutes to increase state revenues to close the FY 17 (current year) $350 million deficit and the $1.1 billion deficit for FY 18. Fiscal year 17 ends June 30. The full House meets at 11:00 a.m. and you can stream audio from http://kslegislature.org to hear the debate. Read the bill description here.

Senate Tax Committee Passes Bills

Today, the Senate Taxation Committee passed two bills "without recommendation" - meaning the bills go to the full Senate for debate without a committee endorsement. SB 188 addresses income tax, rate changes, adjusted gross income, sunsets certain modifications and itemized and standard deductions. SB 147 - income tax, rate changes, adjusted gross income, and sunsetting certain modifications.

The Committee did not pass the Governor's Tax Proposal - SB 175 - which includes the increases to liquor enforcement tax, tobacco taxes and motor fuels tax, among other fee increases. Aaron Rosenow, KABR Board Member, presented testimony at the Monday Senate Taxation meeting against SB 175. Read here.

Last week, the Senate had planned to debate taxes and budget all day on Thursday, but cancelled the debate when it was clear they didn't have enough votes to pass the bills. At that time, Senate leadership announced they will not work any other bills until a plan to address the current year budget and revenues is approved.

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

House Committee Hears Opposition to Uncork Bill

Wed, 15 Feb 2017 04:06:23 GMT

Click here to read the CJ Online article: Critics Challenge Spirit of Retail Liquor Store Reform Bill.

It was standing room only in the hearing room, where retailers from across the state had gathered to hear the testimony.

Written testimony was distributed from another dozen or so opponents to HB 2282.

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Republlican	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Democrat	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Democrat	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Republican	512-N	785 296-7501	Brad.Ralph@house.ks.gov	Dodge City
Representative	Louis Ruiz	Democrat	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Republican	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Republican	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Democrat	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Big Box Liquor Bill Hearing Today

Tue, 14 Feb 2017 13:10:03 GMT

PUBLIC HEARING ON HB 2282 – House Commerce Committee

Tuesday, February 14, Luncheon and Hearing (for opponents)

Hearings will be in Room 112-N from 1:30 p.m. to 3:00 p.m. at the State Capitol

Retailer and Legislators Luncheon at 11:45 a.m. 1st Floor, North Wing

Let’s have a great turnout to show legislators that Kansas small businesses do care about this issue! Bring your families, employees, vendors, and friends. The Committee has new members this year, who are not familiar with this legislation and the amount of public interest. A big turnout sends a strong message.

BE THERE! More information at this link RSVP for the Legislative Lunch and Hearing.

***********************************************

Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators. It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners. As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation. As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature. If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork. If they are local, request a meeting.

Reach out to the members of the House Commerce Committee and your legislators now (see information below if you need help). Face to face meetings are extremely valuable – either at the Statehouse in Topeka or while they are home on the weekends. Emails and phone calls are also effective. It is very important that our members get active now on this issue, or we will find ourselves behind the ball once a public hearing is finally scheduled.

Find your state senator and state representative at https://openstates.org/find_your_legislator/ by entering your address information. Contact information for all legislators is available at www.kslegislature.org.

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Republlican	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Democrat	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Democrat	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Republican	512-N	785 296-7501	Brad.Ralph@house.ks.gov	Dodge City
Representative	Louis Ruiz	Democrat	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Republican	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Republican	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Democrat	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Big Box Liquor Hearings Next Monday and Tuesday

Sat, 11 Feb 2017 19:15:43 GMT

HB 2282 will have a public hearing in the House Commerce, Labor and Economic Development Committee next Monday and Tuesday. Proponents will testify Monday, February 13 and Opponents will testify Tuesday, February 14. The hearings will be in room 112-N at 1:30 p.m. The legislation would allow Big Box and Convenience Stores to sell strong beer and wine under a newly created Wine and Beer Retailers License. Read the bill here.

Please plan to come to Topeka to show your opposition to Big Box Liquor! RSVP for lunch in the Capitol on Tuesday prior to the hearing.

RSVP for the Hearings on HB 2282 and Luncheon by clicking here.

Click Here for HB 2282 Talking Points

***********************************************

Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators. Talk to your senator and representative now. It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners. As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation. As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature. If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork. If they are local, request a meeting.

Information for the House Commerce Committee is below:

Office	Fullname	Officenum	Offph	Email	Hmphyscity	Party	County	District
Chair	Les Mason	521-E	785-296-7640	les.mason@house.ks.gov	McPherson	Republican	McPherson	73
Vice Chair	Ken Corbet	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka	Republican	Shawnee	54
Ranking Minority Mbr	Brandon Whipple	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita	Democrat	Sedgwick	96
Representative	Dave Baker	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove	Republican	Morris	68
Representative	John Carmichael	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita	Democrat	Sedgwick	92
Representative	J. R. Claeys	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina	Republican	Saline	69
Representative	Stephanie Clayton	512-N	785 296-7548	stephanieclayton@house.ks.gov	Overland Park	Republican	Johnson	19
Representative	Erin Davis	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe	Republican	Johnson	15
Representative	Roger Elliott	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita	Republican	Sedgwick	87
Representative	Jan Kessinger	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park	Republican	Johnson	20
Representative	Tom Phillips	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan	Republican	Riley	67
Representative	Bradley Ralph	512-N	785 296-7501	Brad.Ralph@house.ks.gov	Dodge City	Republican	Ford	119
Representative	Louis Ruiz	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City	Democrat	Wyandotte	31
Representative	Joe Seiwert	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie	Republican	Reno	101
Representative	Jerry Stogsdill	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village	Democrat	Johnson	21
Representative	Sean Tarwater	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell	Republican	Johnson	27
Representative	Patsy Terrell	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson	Democrat	Reno	102

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

News from Retail Liquor Association of Oklahoma

Fri, 10 Feb 2017 21:57:27 GMT

Lawsuit Calls New Oklahoma Liquor Amendment Unconstitutional

In the weeks between Thanksgiving and New Year's, liquor stores like Byron's Liquor Warehouse, are packed. It's a marathon holiday season. "A lot of sweat, a lot of elbow grease but we make it through every year," Byron's General Manager Blake Cody said on Wednesday. "It's quite a bit, we do several, probably about a million dollars if not more. We have a lot of product coming in and out in the month of December," he continued.

Today, Senate Delays Tax and Budget Debate

Thu, 09 Feb 2017 14:44:18 GMT

Today, the Kansas Senate had cleared the committees calendar in order to debate the FY 17 Rescission Budget Bill, Taxes, and the Pooled Money Investment Board (PMIB). However, that debate was delayed after Republicans held a caucus this morning and apparently decided there was not consensus to move forward today.

Senators were scheduled to work all day on the Senate Floor and now have a free day on their hands. Many will go home for the weekend with Friday a pro-forma day. We expected to see many amendments proposed and debated to hash out a Senate position for closing out the current fiscal year which ends June 30 and faces a deficit of around $350 million.

The bills to be debated are below along with links to the bill descriptions.

SB 155 - State finances; requiring the KPERS board to liquidate the pooled money investment portfolio investment pursuant to K.SA. 2016 Supp. 75-2263; transferring money to the state general fund ... The Governor recommended liquidating $317 million of the fund's investments to borrow for current year funding shortfalls. The Senate committee recommended borrowing $100 million.

SB 147 - Kansas income tax act;providing rate changes and determination of Kansas adjusted gross income andsunsetting certain modifications. This bill eliminates the LLC exemption and increases income tax rates. We expect to see many amendments proposing any imaginable combination of tax policies. See bill explanation.

SB 27 - Budget Rescission Legislation for adjustments to FY 17; reduces K-12 by 5% or $128 million, Regents by $23 million, and varying agency budgets by $3 million.

See bill explanation document.

The Senate will reconvene Friday at 8:00 a.m. pro-forma - meaning there will won't be any general orders or votes.

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Event Announcement: Public Hearing on HB 2282 & Legislative Luncheon

Wed, 08 Feb 2017 21:22:05 GMT

Upcoming event information:
Public Hearing on HB 2282 & Legislative Luncheon Kansas Statehouse - 11:30 am Feb 14 Lunch / 1:30 pm Hearings Feb 13-14 Room 112-N
Date: 13 Feb 2017 1:30 PM EST

PUBLIC HEARING ON HB 2282 – House Commerce Committee

Monday, February 13, (for proponents)

Tuesday, February 14, Luncheon and Hearing (for opponents)

Hearings will be in Room 112-N from 1:30 p.m. to 3:00 p.m. at the State Capitol

Tuesday Luncheon at 11:30 a.m. 1st Floor, North Wing

BE THERE! RSVP for the Legislative Lunch and Hearing.

KABR will host a luncheon Tuesday, February 14 beginning at 11:30 a.m. at the Statehouse on the 1st floor north wing outside the committee room. Lunch will be followed by the hearing at 1:30 p.m. in Room 112-N. Luncheon sponsored by KABR and Kansas Association for Responsible Liquor Laws.

All attendees should schedule an appointment to meet with their legislators to make the most of their trip. You need to call them now to get on their appointment schedule - do not wait. Let us know what you learn. See instructions below.

Contact Amy to submit written testimony and if you know law enforcement or other community members who will provide supportive testimony - Email Amy. Testimony is due on Monday, so we will need to receive it by Sunday afternoon to make copies.

Find the name of your State Senator and State Representative at www.openstates.org by entering your home address and then your store address. You may have different legislators for each location. The Statehouse Legislative Hotline can help to connect you by phone - 1-800-432-3924.

Click here for contact information for members of the House Commerce Committee. Please send them an email to OPPOSE HB 2282.

KABR is working with our partners, including Keep Kansans in Business, the Kansas Wine and Spirits Wholesalers Association and the Kansas Association for Responsible Liquor Laws to effectively present our case within the time limitations. To submit written testimony – email it to KABR at campbell525@sbcglobal.net by Sunday, February 11. Your written statement should include your name, store or business name, address and phone/email contact information. Round up your small business partners – banker, insurance rep, attorney, accountant, etc., to submit written testimony as well. We will make sure that the copies are made and delivered to the committee secretary 24 hours in advance of the hearing

Amy Campbell, lobbyist – 785-969-1617

HB 2282 Big Box Liquor Hearing Next Monday and Tuesday

Tue, 07 Feb 2017 14:28:45 GMT

HB 2282 will have a public hearing in the House Commerce, Labor and Economic Development Committee next Monday and Tuesday. Proponents will testify Monday, February 13 and Opponents will testify Tuesday, February 14. The legislation would allow Big Box and Convenience Stores to sell strong beer and wine under a newly created Wine and Beer Retailers License. Read the bill here.

Please plan to come to Topeka to show your opposition! Hearings will most likely start at 1:30 p.m. and end around 3:00 p.m. We are hoping to provide lunch in the Capitol on Tuesday if we can secure the space.

KABR will send more detailed information and an RSVP email very soon.

***********************************************

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Democrat	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Republican	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Republican	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Democrat	512-N	785 296-7501	Brad.Ralph@houseks.gov	Dodge City
Representative	Louis Ruiz	Republican	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Democrat	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Party	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Republican	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Uncork Bill Released Today

Mon, 06 Feb 2017 22:30:24 GMT

HB 2282 Would Allow Beer and Wine in Big Box and Convenience Stores

The beer and wine legislation introduced on January 12 in the House Commerce Committee has finally been published. The bill would allow Big Box and Convenience Stores to sell strong beer and wine under a newly created Wine and Beer Retailers License Read the bill here.

A Wine and Beer Retailer could sell any other goods and services on the licensed premises. A Liquor Retailer could sell other goods or services on the licensed premises, exceptthat the gross sales of other goods and services shall not exceed 20% of theretailer's total gross sales.

The bill includes provisions to transfer 3% of enforcement taxes to a local cereal malt beverage sales tax fund. Those funds would be distributed to cities and counties based on a population weighting formula to theoretically make up for sales tax revenues that cities and counties would lose when there are fewer sales of cereal malt beverage products.

There are no provisions for an extended transition period or purchasing existing retailer licenses. There are no limitations on the number or location of new licenses.

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Democrat	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Republican	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Republican	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Democrat	512-N	785 296-7501	BradRalph@house.ks.gov	Dodge City
Representative	Louis Ruiz	Republican	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Democrat	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Party	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Republican	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Uncork Bill Introduced; Hearings on Enforcement Tax

Sat, 04 Feb 2017 01:34:38 GMT

Uncork Introduces Bill in Senate Commerce Committee

While the beer and wine legislation introduced on January 12 in the House Commerce Committee has still not been published, an Uncork bill was introduced in the Senate Commerce Committee Thursday, February 2nd. Perhaps we should not be surprised that the Senate Bill has not yet been published either.

Interestingly, there were two "no" votes to the request for introduction. While bill introductions are typically unanimously adopted, Senator Rob Olson and Senator Molly Baumgardner were heard to say "no" to the introduction in the Senate Commerce meeting.

We still don't know anything about the bill's contents, although media reports seem to indicate that these are strong beer and wine bills - with none of the license purchasing provisions or limitations on numbers or locations of licenses. With the Senate introduction, we will be facing both a Senate Uncork Bill and a House Uncork Bill.

Legislators are asking about CMB, and whether or not the product will be going away. Manufacturers, including Anheuser-Busch and Coors-Miller have stated that CMB is not going away, but grocery and convenience stores are complaining that they will lose their variety once Oklahoma and Colorado implement planned changes in 2018. See members of the Senate Commerce Committee at the bottom of this message.

********************************************

House Taxation Committee Holds Informational Hearings on Liquor Tax, Tobacco Tax and Motor Fuels Tax Increases

After two days of informational hearings on the Governor's proposals to raise tobacco taxes, liquor enforcement tax, and motor fuels tax, it seems the House Taxation Committee will be moving forward with a different plan. The hearing was very well attended and committee members seemed interested in the multiple layers of taxation paid on liquor products. They were receptive to the concerns about competition across the Missouri border, where liquor taxes only include a gallonage and a sales tax. Rep. Ken Corbet (R-Topeka) commented, We seem to forget that money has legs, and that business can just walk across the border to avoid these taxes - and that kills our small businesses.

Next week, the House Taxation Committee will hold a public hearing on a proposal to expand the income tax categories to 3 - adding a higher income category with a higher rate to the state income tax, close some exemptions, add a small increase to motor fuels tax, and reduce the state sales tax on food to 5%. The bill has a lot of moving parts. There is also a proposal to eliminate the LLC income tax exemption, reinstate tax on passive income (such as rents) and increase the income tax rate on the two current income tax categories. It will take many more weeks of hearings for these options to be narrowed down. Meanwhile, tax receipts for January did come in slightly above projections, which is whittling away at the projected deficit a bit. There is no doubt that liquor taxes are very likely to be tossed into the mix - perhaps more than once before the session is over.

Read KABR Testimony Here

Read notes here: Notes from Jan 31 Tobacco and Liquor Tax Increases

Notes from Feb 1 Liquor and Motor Fuels

HAVE YOU PAID YOUR DUES FOR 2017? PRINT DUES FORM HERE.

Office	Fullname	Officenum	Offph	Email	Party	District	Hmphyscity
Chair	Julia Lynn	445-S	785-296-7382	Julia.Lynn@senate.ks.gov	Republican	9	Olathe
Vice Chair	Gene Suellentrop	224-E	785-296-7385	Gene.Suellentrop@senate.ks.gov	Republican	27	Wichita
Ranking Minority	Tom Holland	134-E	785-296-7372	Tom.Holland@senate.ks.gov	Democrat	3	Baldwin City
Senator	Larry Alley	541-E	785-296-7381	Larry.Alley@senate.ks.gov	Republican	32	Winfield
Senator	Molly Baumgardner	224-E	785-296-7368	Molly.Baumgardner@senate.ks.gov	Republican	37	Louisburg
Senator	Barbara Bollier	237-E	785-296-7390	Barbara.Bollier@senate.ks.gov	Republican	7	Mission Hills
Senator	Oletha Faust-Goudeau	135-E	785-296-7387	Oletha.Faust-Goudeau@senate.ks.gov	Democrat	29	Wichita
Senator	Bruce Givens	225-E	785-296-7678	Bruce.Givens@senate.ks.gov	Republican	14	El Dorado
Senator	Robert Olson	236-E	785-296-7358	Rob.Olson@senate.ks.gov	Republican	23	Olathe
Senator	Mary Pilcher-Cook	234-E	785-296-7362	Mary.PilcherCook@senate.ks.gov	Republican	10	Shawnee
Senator	Dinah Sykes	237-E	785-296-7367	Dinah.Sykes@senate.ks.gov	Republican	21	Lenexa

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Retailers Must Communicate with Legislators to Prevent Strong Beer and Wine in Big Box Stores

Wed, 01 Feb 2017 21:00:12 GMT

The beer and wine legislation introduced on January 12 in the House Commerce Committee has not yet been published. It is very unusual for a bill to be introduced in committee and not be available for review weeks later. However, the Commerce Committee Chair is planning to hold a hearing once the bill is published – assuming there is still time within the legislative deadlines.

Yesterday, Dillon’s/Kroger employees came to the State Capitol and met with legislators throughout the building. Without a bill, we can only rely on the various newspaper and television stories from the past week. Within those stories, Jessica Lucas, Uncork lobbyist, says the bill will allow big box and convenience stores to sell beer and wine.

"With only three states selling 3.2 beer, you limit the ability to have products to put on the shelf," said Jessica Lucas, a lobbyist with Uncork Kansas. "We need the government to allow us to sell beer without the definition that it must be 3.2 beer."

Lucas says the bill would also benefit liquor stores by allowing them to sell things like chips, corkscrews, mixers, and other non-alcoholic products.” From the KFDI Wichita story.

From this description – the bill likely does NOT include any requirements that corporate chains buy out current liquor store licensees nor a significant transition period as proposed in some of the previous Uncork bills. The “buy out’ concept has only been included in bills that would put strong beer, wine and spirits into the big box stores.

Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners. As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation. As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature. If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork. If they are local, request a meeting.

Information for the House Commerce Committee is below:

Office	Fullname	Party	Office#	OfficePhone	Email	HomeCity
Chair	Les Mason	Republican	521-E	785-296-7640	les.mason@house.ks.gov	McPherson
Vice Chair	Ken Corbet	Democrat	179-N	785 296-7679	ken.corbet@house.ks.gov	Topeka
Ranking Minority	Brandon Whipple	Republican	452-S	785 296-7366	brandon.whipple@house.ks.gov	Wichita
Representative	Dave Baker	Republican	167-W	785 296-6997	dave.baker@house.ks.gov	Council Grove
Representative	John Carmichael	Republican	451-S	785-296-7650	john.carmichael@house.ks.gov	Wichita
Representative	J. R. Claeys	Republican	274-W	785 296-7670	jrclaeys@house.ks.gov	Salina
Representative	Stephanie Clayton	Republican	512-N	785 296-7548	stephanie.clayton@house.ks.gov	Overland Park
Representative	Erin Davis	Republican	151-S	785-296-7658	erin.davis@house.ks.gov	Olathe
Representative	Roger Elliott	Republican	168-W	785 296-7476	Roger.Elliott@house.ks.gov	Wichita
Representative	Jan Kessinger	Republican	268-W	785 296-7436	Jan.Kessinger@house.ks.gov	Overland Park
Representative	Tom Phillips	Republican	512-N	785 296-7402	tom.phillips@house.ks.gov	Manhattan
Representative	Bradley Ralph	Democrat	512-N	785 296-7501	Brad.Ralph@house.ks.gov	Dodge City
Representative	Louis Ruiz	Republican	47-S	785 296-7885	louis.ruiz@house.ks.gov	Kansas City
Representative	Joe Seiwert	Democrat	481-W	785 296-7647	joe.seiwert@house.ks.gov	Pretty Prairie
Representative	Jerry Stogsdill	Democrat	452-S	785 296-7692	Jerry.Stogsdill@house.ks.gov	Prairie Village
Representative	Sean Tarwater	Party	268-W	785 296-7685	Sean.Tarwater@house.ks.gov	Stilwell
Representative	Patsy Terrell	Republican	174-W	785 296-7645	Patsy.Terrell@house.ks.gov	Hutchinson

Contacts:

Brian Davis, President - 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

Impact of 16% Liquor Enforcement Tax

Fri, 27 Jan 2017 21:13:28 GMT

According to the Department of Revenue budget proposal, raising the enforcement tax from 8% to 16% would generate an additional $52.3M in 2018. Current enforcement tax at 8% generated $67.8M in 2016.

It appears the Department of Revenue expects some slowing of sales due to the tax increase as revenue is not doubled from current collections. Instead of forecasting $67.8M in revenue doubles to $135.6M, they have forecast increased revenues of $120.1M ($67.8M current plus $52.3M forecast). To get $120.1M of revenue from a 16% tax would require gross sales of $750.6M.

	Sales	Tax Rate	SGF
2016	$847.5M	8%	67.8
2018	750.6M	16%	120.1 (67.8+52.3 additional)
	-94.9		+52.3

This forecast indicates a $94.9M reduction or (11.2%) in total alcohol sales. To get that extra $52.3M, Kansas retailers are being asked to absorb an 11.1% loss. Those retailers near the Missouri border the loss will be much greater. This is not a responsible fiscal policy.

This is a terrible proposal. Here are some of the key arguments to oppose it.

1. The Department of Revenue’s own numbers indicate Kansas would lose $95M in alcohol sales. This will hurt retailers, especially those near the Missouri border.

2. This will also have a negative impact on wholesalers of spirits, wine and beer who sell to those retailers.

3. It effectively raises the cost of goods sold to bars and restaurants by 8%. Raising drink prices will drive business to Missouri. This will also cause a reduction in the 10% drink tax.

4. It is a regressive tax hitting lower and middle class consumers particularly hard. A $6.99 six pack will have a tax of $1.12 or a tax of $4.48 for a case.

House Taxation Committee – Contact Amy at 785-969-1617 to submit testimony. We will help facilitate. Individuals who intend to testify must contact Lea Gerard, Committee Assistant–785-296-4830 and provide copies of testimony 24 hours in advance.

Meeting each day at 3:30 p.m. in room 346-S of the Kansas Statehouse (Click here for list of committee members.) Chair is Steven Johnson, Vice Chair Tom Phillips, and Ranking Minority Member Tom Sawyer.

Monday, January 30: Informational hearing: Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i) (Includes Lottery tickets and advertising)

Tuesday, January 31: Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1: Informational briefing: Taxation on Retirement Benefits

Thursday, February 2: Discussion on: Changes to Income Tax Rates and Glide Path to Zero

Uncork Proposal and Liquor Tax Increase Under Consideration - Informational Tax Hearing Tuesday January 31

Fri, 27 Jan 2017 09:00:00 GMT

KABR is closely tracking two major legislative issues at the Kansas Legislature: The Governor’s Revenue Proposal to double the liquor enforcement tax from 8% to 16%, and the Uncork Legislation to put Strong Beer and Wine Sales in Big Box and Convenience Stores. At this point, neither bill has been published. We do expect the House Commerce Committee to hold hearings on the Uncork bill (maybe in February), assuming that bill is referred to the Commerce Committee.

PUBLIC INFORMATIONAL HEARING ON LIQUOR TAX AND TOBACCO TAX NEXT TUESDAY

The House Taxation Committee will host an informational hearing on Tuesday, January 31 at 3:30 p.m. on the Liquor Tax and Tobacco Tax Increases. See Tax Committee information at the bottom of this message. If you are interested in providing testimony, please contact Amy at 785-969-1617 as soon as possible. If you are from Johnson or Wyandotte County, this tax increase will significantly impact your business. Groups that support the increase cite the fact that cereal malt beverages at the convenience store pay sales tax as high as 9.5% in some cities, while liquor store beer is charged 8%. This position ignores the multiple levels of taxation that apply to liquor store products: manufacturer, gallonage, enforcement and drink tax. Our customers pay a tax on a tax on a tax. Retailers will soon see anti-tax public information materials delivered by the distributors.

The tobacco tax increase is also substantial, adding $1.00 to every pack of cigarettes and doubling the tobacco products tax from 10% to 20%.

Monday, January 30: Informational hearing: Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i) (Includes Lottery tickets and advertising)

Tuesday, January 31: Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1: Informational briefing: Taxation on Retirement Benefits

Thursday, February 2: Discussion on: Changes to Income Tax Rates and Glide Path to Zero

Event Announcement: KABR Board Meeting and GOLD Meeting Feb 11-12

Mon, 23 Jan 2017 21:24:37 GMT

RSVP at KABR Board Meeting and GOLD Meeting

Upcoming event information:
KABR Board Meeting and GOLD Meeting Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS 66615
Date: 11 Feb 2017 3:00 PM EST

KABR BOARD MEETING AND GOLD MEETING

ALL MEMBERS ARE ENCOURAGED TO ATTEND.

Please make your reservations at Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS 785-273-8888 Ask for the KABR rate of $91.00 plus tax.

Saturday GOLD Committee - 3:00 p.m. - 5:30 p.m. - Goals of Liquor Dealers committee is open to all members and develops action proposals regarding legislative advocacy, policy development, and member services for consideration by the Board of Directors. Please contact Brian Davis, President (davisliquor2@cox.net) regarding agenda items.

Saturday evening dinner - Meet in the hotel lobby at 6:30 to go to dinner at the Blue Moose. We will invite local legislators to join us. Please RSVP so we can reserve tables.

Sunday Board of Directors Meeting - 9:30 a.m. - 12 noon

9:30 a.m. Meeting Call to Order Brian Davis, President

Roll Call

Introductions

Minutes of the Previous Meeting

Financial Statement

9:50 a.m. Regional Vice Presidents Reports

Janet Wise, Dave Dvorak, Monica Tieben

10:15 a.m. Reports

Membership Report – Nomination of New Members

Member Credit Processing Program update

Retailer Education Program

GOLD Committee –

10:45 a.m. Legislative Report Amy Campbell

HB 2282 - Uncork House Bill - House Commerce, Labor and Economic Development Committee

Public Hearings February 13-14

SB 163 - Uncork Senate Bill - Senate Federal and State Affairs Committee

Wine Clubs Request

SB 164 - Drinking Establishments - Entertainment District Ordinances - Senate Federal and State Affairs Committee

HB 2277- Alcoholic Liquor, Consumption Areas, Cities and Counties - House Committee on Local Government - Hearing Thursday February 9

Governor's Proposal to double liquor enforcement tax from 8% to 16%

Various proposals to change income tax policy and increase tobacco tax rates

www.kslegislature.org Legislative information, bills and calendars.

www.votesmart.org Non-profit website where you can look up your legislative districts if you do not already know them. Can also call your local election office.

11:30 a.m. Old Business

11:45 a.m. New Business

12:00 noon Adjourn

More information and online registration: KABR Board Meeting and GOLD Meeting

Governor Proposes Doubling Liquor Enforcement Tax

Thu, 12 Jan 2017 21:42:23 GMT

Tuesday evening, Governor Brownback presented the State of the State address, and promised that his proposed budget would be balanced, including a combination of revenues and spending cuts. The Governor’s proposal to raise revenues includes doubling the liquor enforcement tax rate from 8% to 16%. This is the tax paid at the liquor store register.

The revenue proposal recommends adding another $1.00 tax per pack of cigarettes and increases the tobacco products tax from 10% to 20%.

The revenue proposal would also increase the annual business filing fee for for-profit entities from $40 to $200. That annual fee is paid to the Secretary of State’s office. Most liquor stores pay this fee for their LLC filing.

Additionally, the Governor’s plan will freeze the bottom category income tax rate at 2.7%. The rate is supposed to step down to 2.6% this year. The tax changes will also impose income tax on passive income such as rents and royalties.

The entire package raises $179 million for fiscal year 2018. That is far short of the projected deficit, and the budget plan includes multiple proposals for shifting funds, borrowing from State investments and selling other assets. It also combines a couple of agencies and regulatory boards.

Meanwhile the House Taxation committee has already introduced several income tax bills designed to roll back the LLC income tax exemption and otherwise rewrite our income tax statutes. The Governor says the LLC Exemption is growing Kansas small business and should be preserved.

Some rumors suggest there is another revenue plan circulating behind the scenes that the Governor might prefer or at least wouldn’t mind signing if the Legislature passes it. We have also heard that a Senate GOP plan will be announced soon.

Uncork Bill Introduced Today - Includes Strong Beer and Wine for Big Box and Convenience Stores

Thu, 12 Jan 2017 21:38:50 GMT

UNCORK BILL INCLUDES STRONG BEER AND WINE FOR BIG BOX AND CONVENIENCE STORES

On Thursday, January 12, Rep. J.R. Claeys, R-Salina, requested introduction of a “bill expanding consumer options for beer and wine purchases” in the House Commerce, Labor and Industry Committee. The introduction was seconded by Rep. Stephanie Clayton, R-Overland Park.

We will forward the language to our members as soon as it becomes available.

This is very early compared to Uncork introductions in the past.

2017 Legislative Session Begins

Mon, 09 Jan 2017 19:37:12 GMT

The Kansas Legislature convened for the 2017 Legislative Session today, January 9, in Topeka.

The Governor’s State of the State speech will be 5:00 p.m. Tuesday, January 10, and the House and Senate budget committees will receive the Governor’s Budget Proposal Wednesday morning. We have been told that the Governor will be proposing revenues from the liquor industry. We do not know if it will be in the form of increased gallonage and/or liquor enforcement taxes, or if it will include the Uncork proposal to raise state general funds by allowing grocery and big box stores to buy into the retail liquor system with large up-front licensing fees. Shawn Sullivan, Budget Director, will present the report to the House Appropriations and Taxation Committees at 9:00 a.m. and Senate Ways and Means Committee at 10:30 a.m. Wednesday. That report will be posted at the Governor's Budget website at 9:00 a.m. Wednesday - http://budget.ks.gov .

We do expect to see hearings this session on Uncork proposals. It is also possible that the convenience stores will be pursuing a separate bill for Strong Beer. Beer and wine are likely to be the focus of the Big Box Stores' efforts this year. They are touting the Oklahoma constitutional change adopted by a public vote in November.

Click to see the 2017 Session Planner here. This calendar shows the days the Legislature will be in session and the deadlines for bill introductions and passage. It is subject to change. Legislative leaders expect to have a longer legislative session this year, and will face issues such as major tax changes, Medicaid expansion, and a new school finance formula. The task will be challenging, with revenues $340 million short for the fiscal year ending in June. Most of the newly elected legislators ran on the promise to reform the income tax reductions for business owners that were passed in 2012 and 2013 – but the Governor is opposed.

KABR will be tracking public hearings of interest and will share committee schedules with members regularly. If you are interested, you can check yourself each Friday by looking at the House and Senate calendars posted for the following week at www.kslegislature.org to see what public hearings and meetings are scheduled for the following week. This is especially important if you are watching specific issues of interest. A better way to be prepared to act is to contact the committee secretary (listed below each committee name in the calendar) and ask IF and WHEN a bill or issue is to be discussed. Typically, if you wish to testify or submit written comments for a public hearing on a bill, you will need to sign up with the secretary and turn in your testimony or comments at least 24 hours in advance. Each committee’s rules are different and secretaries may have different requirements. Unfortunately, there will also be hearings that pop up in the middle of the week with very little advance notice. Committee schedules are also posted on the walls outside the House and Senate chambers and updated when changes occur.

Unofficial Election Results for Kansas Statewide Races

Wed, 09 Nov 2016 09:08:44 GMT

Unofficial Election Results for Kansas statewide races:

(At this time, there are still precincts that are not recorded, so these are unofficial results.)

The changes that began in the primary elections have carried over to the general election, although Democrats did not experience as many wins in the Senate as some had predicted. As of the results around 2:30 a.m., Democrats picked up one seat in the Senate – Lynn Rogers has won the district held by retiring Senator Michael O’Donnell (R-Wichita). Two others appear very close with some precincts not final – Denning and Pilcher-Cook.

Democrats appear to have gained 14 seats in the House of Representatives – better than predicted. If the numbers hold, there will be additional Democrats on each House committee.

KANSAS SENATE

Senator Dennis Pyle (R) retains his seat, winning over Rep.Jerry Henry

Senator Marci Francisco (D) retains her seat, winning over Meredith Richey

Senator Tom Holland (D) retains his seat, winning over Echo Van Meteren by only 2%

Senator Steve Fitzgerald (D) retains his seat, winning overBill Hutton by only 2%

Senator Pat Pettey (D) retains her seat, winning over Libertarian Jason Conley

Senator Barbara Bollier (R) wins over Megan England. Bollier is currently a Representative

Senator Jim Denning (R) leading vs. Don McGuire to keep his seat in a close challenge

Senator Julia Lynn (R) retains her seat, winning over Chris Morrow

Senator Mary Pilcher Cook (R) leading to retain her seat vs. Vicki Hiatt in a close race

John Skubal (R) defeats Skip Fannen

Senator Caryn Tyson (R) retains her seat, defeating Christopher Johnston

Senator Jake LaTurner (R) retains his seat, defeating Lynn Grant

Bruce Givens (R) defeats Mark Pringle

Dan Goddard (R) defeats Chuck Schmidt

Senator Ty Masterson (R) retains his seat, defeating Gabriel Costilla

Senator Jeff Longbine (R) retains his seat, defeating Susan Fowler

Senator Laura Kelly (D) retains her seat, defeating a close challenge by former senator Dave Jackson (4%)

Senator Anthony Hensley (D) retains his seat, defeating Zach Haney

Senator Vicki Schmidt (R) retains her seat, winning over Candace Ayars

Dinah Sykes (R) hangs on to win over Heley and Kerner. She defeated Senator Smith in the primary.

Senator Rob Olson (R) retains his seat, winning over Spencer Kerfoot

Randall R. Hardy (R) defeats Donald R. Merriman

Lynn W. Rogers (D) defeats Jim Price

Senator Dan Kerschen (R) retains his seat, winning over Benjamin Poteete

Rep. Gene Suellentrop (R) wins his race over Tony Hunter and will move from the House to the Senate.

Senator Mike Petersen (R) retains his seat in a race that looked very close early in the evening, defeating Keith Humphrey by 4%

Senator Susan Wagle (R) retains her seat, winning over Anabel Larumbe

Senator Carolyn McGinn (R) retains her seat, defeating J.Michelle Vann

Larry W. Alley (R) retains her seat, defeating Don Shimkus

Mary Jo Taylor (R) defeats Matt Bristow

Edward E. Berger (R) defeats Homer L. Gilson

Senator Richard Wilborn (R) retains his seat, defeating Levi Morris

Senator Elaine Bowers (R) retains his seat, defeating Brian Angevine

Senator Molly Baumgardner (R) retains her seat, defeating Kevin King

Rep. Bud Estes (R) defeats Miguel Angel Rodriguez. Estes is currently in the House of Representatives.

Rep. John Doll (R) defeats A. Zacheriah Worf. Doll is currently in the House of Representatives.

Rep. Rick Billinger (R) defeats Alex Herman. Billinger is currently in the House of Representatives.

HOUSE OF REPRESENTATIVES

Dist. 3 Monica Murnan (D) defeats Rep. Chuck Smith (R)

Dist. 5 Rep. Kevin Jones (R) beats Doug Walker

Dist. 6 Rep. Jene Vickrey (R) defeats Christy Levings

Dist. 8 Patty Markley (R) defeats Ben Chociej

Dist. 9 Rep. Kent Thompson (R) defeats Patrick McMurray (L)

Dist. 12 Doug Blex (R)defeats Jean Kurtis Schodorf

Dist. 14 Rep. Keith Esau (R) defeats Merlin Ring ??

Dist. 15 Erin Davis (R) defeats R. Paul McCorkle

Dist. 16 Cindy Holscher (D) defeats current Rep. Amanda Grosserode (R)

Dist. 17 Tom Cox (R) defeats Helen Stoll

Dist. 18 Cindy Neighbor(D) defeats Eric Jenkins. Neighbor is a former Representative.

Dist. 19 Rep. Stephanie Clayton (R) defeats Elizabeth Meitl and John Taube

Dist. 20 Jan Kessinger (R)defeats Chirstopher McQueeny

Dist. 21 Jerry Stogsdill (D) defeats Dorothy Hughes

Dist. 23 Rep. Linda Gallagher (R) defeats Amber Versola

Dist. 24 Rep. Jarrod Ousley (R) defeats Rob Johnson

Dist. 25 Rep. Melissa Rooker (R) defeats Matt McCann

Dist. 26 Rep. Larry Campbell (R) defeats Cheron Tiffany

Dist. 27 Sean Tarwater Sr. (R) defeats Larry Miller

Dist. 29 Brett Parker (D) defeats Rep. James Eric Todd

Dist. 30 Rep. Randy Powell (R) defeats Darla Graham

Dist. 36 Rep. Kathy Wolfe-Moore (D) defeats Kevin Braun

Dist. 38 Rep. Willie Dove (R) defeats Mike Fonkert and Frederick Caleb Cristopher

Dist. 39 Shelee Brim (R) defeats Angeliina Lawson

Dist. 40 Debbie Deere (D) defeats Rep. John Bradford(R)

Dist. 41 Jeff Pittman (D)defeats Rep. Tony Barton(R)

Dist. 42 Jim Karleskint (R) defeats Kara Reed

Dist. 44 Rep. Barbara Ballard (D) defeats Michael Lindsey

Dist. 45 Rep. Tom Sloan (R) defeats Terry Manies

Dist. 47 Ronald Ellis (R)defeats Michael Caddell

Dist. 48 Rep. Marvin Kleeb (R) defeats Sandy Ackerson

Dist. 49 Rep. Scott Schwab (R) defeats Darnell Hunt

Dist. 50 Rep. Fred Patton (R) defeats Chris Huntsman

Dist. 51 Rep. Ron Highland (R) defeats Adrienne Olejnik

Dist. 53 Jim Gartner (D)defeats Richard Kress

Dist. 54 Rep. Ken Corbet (R) wins over Renae Hansen

Dist. 56 Virgil Weigel (D)takes back his former House seat from Rep. Lane Hemsley

Dist. 60 Mark Schreiber(R) defeats William Ballard

Dist. 61 Francis Awerkamp (R) defeats Lauren Van Wagoner

Dist. 63 John Eplee (R)defeats W. Brett Neibling

Dist. 66 Rep. Sydney Carlin (R) defeats Stanley Hoerman

Dist. 68 Dave Baker (R)defeats Laura Blevins

Dist. 69 Rep. J.R. Claeys (R) defeats Gerrett Morris by a narrow margin – 163 votes

Dist. 70 Rep. John Barker (R) defeats Jo Schwartz

Dist. 71 Rep. Diana Dierks (R) defeats Jeffrey Zamrzla and Joey Frazier

Dist. 72 Tim Hodge (D) defeats Rep. Marc Rhoades by 2% - 220 votes

Dist. 73 Rep. Les Mason (R) defeats Terrance Krier

Dist. 76 Eric Smith (R) defeats Teresa Briggs

Dist. 78 Rep. Ron Ryckman (R) defeats Jason Darby

Dist. 80 Anita Judd-Jenkins (R) defeats Michelle Schiltz

Dist. 81 Rep. Blake Carpenter (R) defeats James McCluer

Dist. 82 Rep. Pete DeGraaf (R) defeats Danette Harris

Dist. 83 Rep. Henry Helgerson (D) defeats M. Lewis Ackerman

Dist. 85 Rep. Chuck Weber (R) defeats Patty Beamer

Dist. 86 Rep. Jim Ward (D)defeats Christopher Drake and James Pruden

Dist. 87 Roger Elliott (R)defeats Tonya Howard and Marco Giorgi

Dist. 88 Elizabeth Bishop (D) beats Rep. Joseph Scapa (R)

Dist. 90 Rep. Steve Huebert (R) defeats Lou Cicirello

Dist. 93 Rep. John Whitmer (R) defeats Deb Shepard

Dist. 94 Leo Delperdang (R) defeats Susan K. Osborne

Dist. 95 Rep. Tom Sawyer (D) wins a close race over Michael Capps

Dist. 97 Rep. Les Osterman (R) defeats Stan Reeser

Dist. 98 Steven Crum (D) defeats Rep. Steven Anthimedes.

Dist. 100 Rep. Dan Hawkins (R) defeats Glen Shafer

Dist. 101 Rep. Joe Seiwert (R) defeats Clifton Beck

Dist. 102 Patsy Terrell (D) defeats Rep. Jan Pauls (R)

Dist. 104 Rep. Steven Becker (R) defeats Betty Taylor

Dist. 105 Brenda Landwehr (R) defeats Cammie Funston. Landwehr is a former legislator.

Dist. 106 Clay Aurand (R) defeats Todd Frye. Aurand is a former legislator.

Dist. 108 Rep. Steven Johnson (R) defeats Kelley Menke

Dist. 111 Eber Phelps (D) former Representative – defeats Rep.Sue Boldra to take back the seat.

Dist. 116 Rep. Kyle Hoffman (R) defeats Jolene Roitman

Dist. 119 Bradley Ralph defeats Daniel Love

Dist. 120 Adam Smith (R) defeats Bonita Peterson

Dist. 121 Rep. Mike Kiegerl (R) defeats Jason Graff

FEDERAL RACES

The 45th President is Donald J. Trump (R)

Senator Jerry Moran (R) retains his U.S. Senate seat over Wiesner and Garrard.

Roger Marshall (R) wins U.S. House District 1 over LaPolice and Burt. Defeated Huelskamp in primary.

Representative Lynn Jenkins (R) retains her U.S. House District 2 position over Potter and Bales.

Representative Kevin Yoder (R) retains U.S. House District 3, over Sidie and Hohe in the closest U.S. House race in KS.

Representative Michael Pompeo (R) retains U.S. House District 4, over Giroux, Allen and Bakken.

It appears that all of the Supreme Court Justices have retained their judicial positions in spite of an aggressive campaign to kick out at least four of them.

And finally – the constitutional amendment to protect hunting and fishing rights passed handily.

Act Now! Support Candidates Who Support You and Your Business

Mon, 24 Oct 2016 20:52:18 GMT

KABR is giving you the tools to Stand Up for Small Business. The key is to support the candidates who support you. MAKE IT COUNT! With the polls running very close in a number of races, your vote matters. And this is the time of year when elected officials and candidates are most eager to hear from you.

Click here for a list of candidates on the ballot and where they stand on our issues (if we know). Many of our friends are facing fierce challengers and they need your help! For step by step instructions - read more at this link.

Retailers and Legislators will meet in Wichita in October - Stand Up for Small Business

Sun, 25 Sep 2016 16:02:38 GMT

KABR expects to face our toughest battle against Uncork during the next legislative session. This means that what retailers do between now and the General Election in November will be key to our success or failure next year. Many of our loyal friends in the Legislature are retiring - so, we can't sit back to "see what happens"! Legislators (especially new ones) are not likely to ignore the Big Box offer to add $40 million to the state budget - in spite of its falsehood - unless they have been educated by their local businesses.

The KABR Annual Conference and Legislative Events has been organized to support our fight for small businesses - we will meet with legislators at the Friday Reception and the Saturday Legislative Luncheon. Please RSVP today!

Get more out of these events by bringing your checkbook, and it will be an informal fundraiser for those who attend the Reception from 5:00 to 7:00 pm Friday at Blarney Stone Pub. We must support the legislators who support us, so please plan to participate by attending or sending a contribution through KABR. Senate contributions are limited to $1000. House of Representatives contributions are limited to $500. Any level is appreciated by the candidates.

The KABR Conference and Legislative Luncheon is an effective opportunity to educate legislators and show them the importance of their locally owned retail businesses. You will also learn which legislators have supported our Kansas owned liquor stores. Our annual luncheons have created wonderful partnerships with many legislators. In order for these efforts to continue to be successful, retailers must show up. (This is also a good opportunity to give a contribution to key legislators.)

We will also present first hand information about the efforts in neighboring states Oklahoma and Colorado to expand liquor sales to the grocery and convenience stores and how that may impact the issue in Kansas.

Other important weekend events include the Retailers/Employees Training, Awards Dinner, and Annual Business Meeting.

Please register now to attend: Register Online

Act Today - Support the Candidates Who Support You and Your Business

Fri, 16 Sep 2016 21:24:35 GMT

Click here to read the chart for a list of candidates on the ballot and where they stand on our issues (if we know). Many of our friends are facing fierce challengers and they need your help!

KABR is providing the step-by-step formula for a winning future – and we know it works! KABR is doing the research to help you make informed choices for the elections. The strategy is simple – we must support legislators and candidates who support us – please act now. Legislative candidates cannot win without financial contributions, campaign signs, and volunteers to help with fundraisers and campaigning. What to do:

Pay your dues to KABR and attend the October 7-9, 2016 Wichita Conference. Info at http://kansasretailer.org
Establish your budget for campaign contributions for the 2016 Kansas Elections. How much can you afford to give each week or every two weeks through the General Election November 8? Can you host a fundraiser? Post a message in support for your preferred candidate on Facebook? Put up a campaign sign at your store and your home?
Begin with your local House of Representatives race and Senate race. If you have a supportive Representative and/or Senator who is running, contact them now. Confirm their support. Please make the maximum contribution you can afford and offer to post a campaign sign in your yard and/or at your store. Your store and your home may be in different election districts and we encourage you to be involved in all of these races. You can and should contribute up to the maximum limit in both the primary election and the general election. Find your legislators at http://openstates.org/find_your_legislator/ or you can easily find your district by looking up your voter registration - see instructions at the bottom of this message.
Contribute to and support legislative leaders and committee chairs who support us. Contribute to and support other candidates across the state. A list is available from the KABR Office 785-969-1617.
Share information with KABR about the candidates you know. Verify that current supporters still stand with us and talk to new candidates to gain their support.
Remember to always have a conversation with the candidate(s) and be sure to include your name, address, phone number and email when sending contributions. Reach out to them through telephone, email or show up at events. Ask to be included on their mailing list.

AND DON'T FORGET - THE GENERAL ELECTION IS NOVEMBER 8, so it is very important to reach out to those candidates before November. You will receive more information about those candidates in the near future.

*****************************************************************

ELECTION INFO

Check your voter registration: Click this link or copy and paste into your browser for important information about your ballot https://myvoteinfo.voteks.org/VoterView/RegistrantSearch.do – you can view your ballot!

Simply enter your county, name and birthdate to see the address of your polling place, the districts you live in, and your voting history. Under Sample Ballots, click on the underlined color letters of your precinct ballot. You can see all of the choices you will make in the voting booth.

Contacts: Brian Davis, KABR President – 316-990-1425 Email President

Amy Campbell, lobbyist – 785-969-1617 Email Lobbyist

The Kansas Legislature Ended the Special Session in Just Two Days with a Bipartisan School Funding Fix

Sat, 25 Jun 2016 01:16:17 GMT

Legislators adjourned the Special Session this evening around 8:25 p.m. after the Senate approved a bipartisan bill on a vote of 38-1 to solve the K-12 equity funding issue. The House of Representatives approved the bill - Sub. for HB 2001 - 116-6 around 7:06 p.m.

The substitute bill was crafted on Friday with the collaboration of House moderate Republicans when it became clear that the original versions of SB 1 and HB 2001 would not have enough votes to pass.

Leaders had initially crafted a plan that would redistribute existing school funds in order to meet the equity demands of the Supreme Court. The original plan would have taken .5% of schools' general state aid to achieve a balance between rich and poor districts in addition to taking from the extraordinary needs fund and shifting Children's Initiatives Funds / tobacco settlement funding and holding Pre-K programs harmless by inserting federal TANF (temporary assistance to needy families) funds.

The plan that was adopted will use different sources to come up with a similar equity formula and avoid cutting schools' base budgets. This doesn't mean that all schools will be net winners at the end of the day, but attorneys for four school districts that were plaintiffs in the Supreme Court case have agreed that this will resolve the equity issue.

Sub. for HB 2001 distributes $38 million to school districts from the following sources:

$2.8 million cut to virtual school aid
$7.3 million sweep from the K-12 extraordinary needs fund
$4.1 million sweep from Temporary Assistance to Needy Families (to replace Pre- funding that would have come from the tobacco settlement)
$10.5 million from state’s tobacco settlement
$13 million from the sale of the Kansas Bioscience Authority*

*If the KBA sale comes up short, an addition $8 million will come from the extraordinary needs fund and another $5 million will come from KDOT’s motor vehicle fee fund.

Below is an article from Kansas.com by Bryan Lowry with more information:

Brownback says he will sign school finance plan passed by lawmakers

http://www.kansas.com/news/politics-government/article85793822.html

Bill would send $10.3 million in additional aid to Wichita school district

Plaintiff districts think bill meets equity standard

Plan would use sale of Kansas Bioscience Authority for school finance fix

BY BRYAN LOWRY blowry@wichitaeagle.com

Gov. Sam Brownback says he will sign a school finance bill that passed both chambers of the Kansas Legislature on Friday night with overwhelming bipartisan support.

Brownback, lawmakers and school officials all hope the measure will eliminate any possibility of a school shutdown next month and satisfy a Kansas Supreme Court order for more equitable school funding.

The bill will steer more than $10 million in additional aid to the Wichita school district, and the district’s attorneys submitted a signed letter to lawmakers saying they won’t contest the bill in court.

Lawmakers and school districts both declared victory, suggesting that the issue of whether Kansas schools are equitably funded is settled for now.

“Even plaintiffs’ attorneys agreeing for the first time in the known history of school finance litigation that the Legislature has fully complied, that’s pretty good,” said Senate Vice President Jeff King, R-Independence, who served as the state’s attorney in a previous school finance case.

The plan was crafted after a coalition of Republicans balked at leadership’s original plan, which would have imposed a 0.5 percent cut to all school districts’ general state aid in order to pay for a financial fix to inequities identified by the Kansas Supreme Court. The new plan does not include the cut.

HB 2001 passed the House by a vote of 116-6. An hour later, it passed the Senate by a vote of 38-1.

“I will sign it, and this will be finished,” Brownback said, noting that Wichita school district and other plaintiff districts that have sued the state over school funding since 2010 supported the bill.

Their attorney, Alan Rupe, confirmed in an e-mail that the plaintiff districts have agreed to file a joint stipulation with the court saying the bill meets the equity standard.

The court still needs to rule on whether Kansas schools are adequately funded in the future.

“While plaintiffs view this as a victory, we are also mindful that this is just one aspect of the overall case,” Rupe said. “One down, one to go.”

The plan will steer proceeds from the sale of the Kansas Bioscience Authority to the school finance fix, an idea that attracted support from moderate Republicans and Democrats who objected to House leaders’ initial plan.

“Everybody ought to be just warm and fuzzy about it,” House Speaker Ray Merrick, R-Stilwell, joked about the compromise plan.

Lawmakers enabled Brownback to sell off the assets of the Bioscience Authority, which oversaw investment in the biotech sector, earlier this year.

The pending sale is estimated to bring in $25 million, but if the sale surpasses that mark, up to $13 million could be used to give extra aid to poor school districts, allowing lawmakers to avoid a cut to all districts’ general fund budgets.

However, Brownback said he does not expect the Bioscience Authority sale to beat its estimates. That means alternative sources of funding will likely have to be used.

“I wouldn’t be particular confident of that at all. But there’s another piece in if it doesn’t click in,” Brownback said. “That’s not the sort of estimates I’ve been seeing as far as the price tag on KBA, but who knows. I just wouldn’t be confident it’s going to come in higher than $25 (million).”

If the sale comes up short, the bill would allow the state to empty the K-12 extraordinary needs fund, a pool of money meant to help districts cope with unforeseen costs. Another $5 million can be taken out of the Kansas Department of Transportation’s motor vehicle fee fund, which otherwise goes to highway projects, if the Bioscience Authority sale misses the mark.

Despite the uncertainty around the Bioscience Authority sale, the plan attracted a broad base of support.

“Yes, I can live with this,” said Rep. Melissa Rooker, R-Fairway, one of the main lawmakers who pushed for alternatives to the original bill.

“The main thing is we protected the classroom, which was the key,” she said. “The sources of funding are never easy, whichever direction we’re going at this point, but I do like the fact that I think we have a compromise that I think will have plenty of support.”

The Senate waited until it received a signed letter from the districts’ attorneys stating that fact until it began debate on the bill.

“We want the signature of their attorney. … Not that I don’t trust them, but I don’t trust them,” said Sen. Jeff Melcher, R-Leawood.

The bill would bring in nearly $10.3 million to the Wichita school district. A little more than half of that would go toward property tax relief for Wichita residents.

“We lost over $17 million in state aid the last two years. Our property taxpayers have paid higher taxes. They deserve having a tax reduction,” said Diane Gjerstad, a spokeswoman for the Wichita school district.

In addition to the tax relief, the bill gives the district $4.5 million in capital outlay aid that Gjerstad said would give it “a little breathing room” to “fund the brick and mortar of schools.”

A total of 169 school districts will see net gains in their state funding through the plan. Another 77 districts will see net losses, but they will lose less than they would have under the leadership’s original plan. And 40 districts will see no change in their funding.

Todd White, the superintendent of the Blue Valley school district, said the bill was much better than the one lawmakers entered Topeka with the previous day and credited that collaboration between school officials and lawmakers.

“There were a lot of people who participated at various levels to make sure we were going to have the best opportunity to have schools open on July 1,” he said.

Conservatives, moderates and Democrats all embraced the plan, a rare occurrence in Topeka.

“I think this is a fabulous spirit of collaboration, bipartisan agreement,” said Rep. Kathy Wolfe Moore, D-Kansas City.

“Nobody wants to close schools,” Rep. Dan Hawkins, R-Wichita, said before the House debate. “I think this is a good compromise. … There’s things that people don’t like in there, but everybody can get behind it. And I think that’s what’s happening right now. Everybody’s getting behind it and saying, ‘Hey, we can do this.’ ”

Some Republican lawmakers had initially bristled at the prospect of the special session and even suggested a few weeks ago that the Legislature defy the court.

A handful of members still felt that way Friday evening. Rep. John Rubin, R-Shawnee, opined that lawmakers had sent a message that the Legislature is subservient to the court.

For the most part, however, lawmakers embraced the need to craft a solution and do it quickly.

“I believe the legislators realized the seriousness of the situation,” said Senate President Susan Wagle, R-Wichita. “They didn’t want schools closed, and it was a relatively small amount of money. And we clearly wanted to resolve the problem.”

Kansas Legislature Returns to Topeka Thursday for Special Session - Uncork hopes for action

Mon, 20 Jun 2016 20:21:51 GMT

(6-20-16) The Kansas Legislature returns to Topeka for a Special Session Thursday, June 23. Legislators will attempt to resolve the recent Kansas Supreme Court decision ordering changes to the funding plan for K-12 schools. While some legislators prefer to move funds around to meet the Court’s order to provide more equitable funding distribution between wealthy and poor school districts, others suggest that $38 million should be added to the formula. This is no small challenge in a year that State revenues continue to come in below agency forecasts.

UnCork Kansas hopes to gain new traction for their proposal to generate extra funds by paying enhanced liquor license fees in order to sell strong beer, wine and spirits. They claim their proposal would raise $40 million.

This is a significant threat to Kansas small businesses and all retailers should be in contact with their legislators. Keep us informed of your communications.

KABR will be attending the legislative meetings of the Special Session and will keep you informed through our e-newsletters.

Colorado Lawmakers Strike Deal on Booze Bill as Session Ends - Denver Post Article

Sun, 15 May 2016 07:16:43 GMT

Dozens of measures rushed to Gov. John Hickenlooper's desk in final hours

By John Frank and Joey Bunch
The Denver Post

May 11, 2016 - On the final day of the legislative session, Colorado lawmakers forged what they believe is a grand compromise to modernize the state's Prohibition-era liquor laws.

"We're changing 83 years of law in the last hours of the session, hoping for the best," said House Speaker Pro Tem Dan Pabon, a Denver Democrat.

The legislation — approved by the House and Senate in overwhelming votes Wednesday — would allow a limited expansion of liquor, wine and full-strength beer sales at more grocery and convenience stores.

Rep. Don Coram, left, who had dressed up for a skit, gives a parting hug to Rep. Lois Court during the annual end-of-session skits called Hummers on the last day of the legislature at the State Capitol on Wednesday. Court is term-limited and will be running for the Senate. Nine senators and 15 representatives said their goodbyes as the 70th General Assembly came to a close. (Helen H. Richardson, The Denver Post)

The last-minute push is intended to blunt a potential ballot question in November to allow broader beer and wine sales. But even as lawmakers began popping bottles in celebration, its future remained unclear.

Gov. John Hickenlooper, a Democrat and former brewpub owner, has expressed reservations about the legislation, recently suggesting he would "tend to favor the status quo."

And the organization behind the ballot question, Your Choice Colorado, responded to the bill's passage with indignation, threatening to continue its efforts or file a lawsuit.

The organization objects to the limits in the legislation, such as the delay of full-strength beer sales to 2019 and restrictions on grocery sales within 1,500 feet of a current liquor store.

"Instead of fixing an antiquated law, the legislature failed Colorado consumers, jamming together a last-minute bill that masquerades as a compromise," said Georgie Aguirre-Sacasa, the organization's campaign manager.

Sen. Pat Steadman, a Denver Democrat who helped craft the deal, suggested the opposition is bluffing. "Their appetite for going ahead with their ballot initiatives is greatly exaggerated at the moment," he said.

The heavy lift on the 120th day contrasted a session that saw little movement on most top priorities, such as more money for road construction and deeper budget reforms.

Still, lawmakers spent the last hours rushing dozens of bills to the finish line.

Among the legislation to win approval: a measure to allow out-of-state investors to own marijuana shops, another to significantly cut the license fees for distillers and liquor wholesalers, a bill that removes outdated criminal penalties on people with HIV, another to permit the state to invest public school money in higher-yield but riskier investments.

A last-minute dispute on a pair of bills to allow more leniency for juveniles serving life sentences in prison complicated the picture. But lawmakers managed to pass legislation to reduce the sentence mandates and permit a select group to participate in a program aimed at making the case for clemency.

Despite the ticking clock, the House and Senate found time to honor the Super Bowl championDenver Broncos.

The session's end regressed to a school's-out-for-summer mood, as lawmakers packed boxes and pulled pranks and the House Republicans roasted the chamber's Democratic leaders.

In the Senate, Lakewood Democrat Andy Kerr prefaced his presentation of Senate Bill 183 with this request: "Please do not shoot any more rubber bands at me," he said, as colleagues fired a torrent of colorful loops from their bill folders.

Nine senators and 15 representatives said their goodbyes.

The session adjourned just hours before the midnight deadline, marked by the drop of a rubber-band ball in the Capitol rotunda.

See article online at http://www.denverpost.com/news/ci_29880916/colorado-lawmakers-strike-deal-booze-bill-session-ends

John Frank: 303-954-2409, jfrank@denverpost.com or @ByJohnFrank

Group makes offer to Kansas lawmakers for liquor sales in grocery stores - from the Kansas City Star

Fri, 29 Apr 2016 19:27:25 GMT

Big retailers would pay $200,000 to the state for an initial liquor license

Uncork Kansas says its plan would generate $40 million for the state

BY EDWARD M. EVELD eeveld@kcstar.com TOPEKA

A group that backs bringing liquor sales to Kansas grocery and convenience stores is offering lawmakers a plan to raise $40 million at a time when the state needs to close a $290 million budget shortfall.

Uncork Kansas says the stores would be willing to pay as much as $200,000 each for an initial state license to sell beer, wine and spirits. For smaller stores, the initial license would be $10,000.

“Our customers are ready for this change, and we’re pleased to bring this free market solution to the governor and Legislature knowing it will infuse the Kansas budget with much needed cash,” said Jessica Lucas, spokesperson for Uncork Kansas, said in a statement.

Under current law, only liquor stores in Kansas are allowed to sell full-strength beer, wine and spirits.

Grocery and convenience stores are limited to selling 3.2 percent beer.

Tuck Duncan, a lobbyist for the Kansas Wine and Spirits Wholesalers Association, an organization that opposes wine and liquor in grocery stores, called the proposal “a blatant bribe” and that enacting it would be detrimental to small retailers.

The Uncork group is calling the offer the “Uncork Kansas Free Market Budget Bailout.” After the initial license buy-in, annual licensing fees would generate about $6.5 million a year to the state, Lucas said.

Read more here: http://www.kansascity.com/news/politics-government/article74640347.html#storylink=cpy

Group of Retailers offers new plan for Kansas Liquor sales - Article from LJ World

Fri, 29 Apr 2016 19:00:04 GMT

A man carries a case of beer as products from Coors, Miller and Anheuser-Busch are stacked in a grocery store Tuesday, Oct. 23, 2007, in St. Louis. (AP Photo/Jeff Roberson) Enlarge photo

Associated Press

April 29, 2016

TOPEKA — A group of grocery and convenience stores in Kansas has proposed a new plan for expanding liquor sales, saying it would generate a $41 million cash infusion toward the state's budget deficit.

The Wichita Eagle reports that the Uncork Kansas coalition is proposing that large retailers would be able to buy full liquor licenses directly from the state. That would eliminate current laws that limit them to selling beer with an alcohol percentage less than 3.2 percent.

The new plan abandons earlier efforts that would've required big-box stores to buy liquor licenses of small businesses. Those businesses are currently the only stores in the state allowed to sell full-strength beer, wine and spirits.

Uncork Kansas represents major retailers, including Wal-Mart, Dillons and Hy-Vee, and convenience stores, such as QuikTrip.

Originally published at: http://www2.ljworld.com/news/2016/apr/29/group-retailers-offers-new-plan-kansas-liquor-sale/

Uncork Proposed Big Box Buy-in to Kansas Liquor System

Thu, 28 Apr 2016 18:47:48 GMT

Friday, April 29 2016 - Uncork is proposing to buy into the Kansas liquor system and destroy hundreds of businesses and jobs currently occupied by Kansas taxpayers who are already paying property taxes, payroll taxes, income taxes and liquor taxes.

Their inflated numbers pretend that there is no cost to their proposal and that liquor deregulation will sell more alcohol in Kansas. They claim it could bring back liquor sales from Missouri, although the sales tax on groceries is lower in Missouri, the tax on alcoholic liquor is lower in Missouri, and the tax on fuel is lower in Missouri.

Meanwhile, putting strong beer, wine and spirits into the big box stores will put liquor at the hands of underage workers and customers.

The Legislature would need to create and adopt legislation in order for this to happen. Currently, legislative leaders are pushing to end the 2016 Session as quickly as possible - with conference committees meeting multiple times a day to wrap up legislation that has already passed one chamber or another and leaders attempting to craft a palatable budget fix.

One time money for liquor deregulation is a cynical response to a serious State budget issue.

City of Wichita make changes to local liquor laws - Wichita Eagle article

Tue, 01 Mar 2016 20:56:51 GMT

Wichita City Council approved changes Tuesday to the city’s alcoholic beverages ordinance. Most of the changes are to align local laws with state laws. Jaime Green File photo

BY KELSEY RYAN

kryan@wichitaeagle.com

If you buy, sell or consume alcohol in Wichita, you’ll want to understand the new changes to the city’s alcoholic beverages ordinance.

Most of the changes are to align local laws with state laws. The Wichita City Council unanimously approved the changes at its meeting Tuesday.

Here are some of the key points:

▪ Samples can be offered at most venues selling liquor. This was allowed under state law, but not addressed in local law.

▪ You can provide free liquor and cereal malt beverages at charitable events, political events and events supporting the arts.

▪ Businesses will have two-year licensing for liquor sales, which aligns with state licensing requirements.

▪ Rules about alcohol consumption at parks won’t change. Events held there will still be required to get licenses.

▪ Possession and not just consumption of liquor in public is now a violation. This is to help with enforcement so police don’t have to wait until someone in public actually takes a drink of alcohol, said city attorney Jennifer Magana.

▪ Guests at private events are defined by law as people who receive personal invitations. Someone paying is not a “guest.”

Defining who is a guest at a private event can help police with enforcement of “after hours” parties, Magana said. For example, that could include a house party where people are charged a cover for alcohol, which is illegal.

City staff in the law, police, finance, zoning and fire departments have reviewed the ordinance changes for the past two years.

Kelsey Ryan: 316-269-6752, @kelsey_ryan

Kansas Beer Wholesalers issue letter to retailers

Fri, 26 Feb 2016 20:59:00 GMT

The Kansas Beer Wholesalers Association sent a letter to all Kansas liquor store owners this week describing their Strong Beer Trigger Bill - Senate Bill 458.

Read the letter here.

Apparently, KBWA was responding to a message that was sent by Standard Beverage Corporation to retailers earlier in the week criticizing the Strong Beer Bill. Read the Standard Beverage message here.

Today, Standard Beverage reached out to retailers again - sharing a list of their talking points opposing the KBWA strong beer trigger bill. Read the Standard Beverage talking points.

The Kansas Association of Beverage Retailers opposes SB 458 and encourages retailers to contact their legislators to oppose Strong Beer legislation.

Strong Beer Trigger Bill Proposed by Beer Wholesalers

Wed, 17 Feb 2016 17:33:01 GMT

Trigger Bill would take effect if cereal malt beverage market changes.

This week, the Kansas Beer Wholesalers Association requested introduction of a strong beer bill. The bill - called a "Trigger Bill" by the proponents - was introduced by the Senate Federal and State Affairs Bill.

Read the legislation here

The concept of the bill is to allow the sale of strong beer in the grocery and convenience stores if the Kansas market for cereal malt beverage should change. The legislation is supposed to "protect" beer wholesalers from potential loss of sales that might occur if public ballots in Oklahoma or Colorado do away with 3.2 sales in those states.

KABR learned that this legislation was being drafted in late January and board members have been reaching out to their beer wholesalers to learn more about it. We encourage all retailers to visit with their beer wholesalers about this proposal. The Board is concerned about the bill and opposes expanding the sale of Strong Beer to thousands of corporate chain retailers.

The Kansas Wine and Spirits Wholesalers Association and Kansas Association for Responsible Liquor Laws have also indicated they will not support this legislation.

We do not know when or if the Senate Federal and State Affairs Committee will hold a public hearing.

There has been talk that changes in Oklahoma or Colorado might result in the beer manufacturers stopping the production of 3.2 beer in the future. This seems unlikely, with a state like Utah selling more than 25% of the 3.2 beer in the country - and very unlikely to change. It is also true that California now requires 3.2 beer to be sold in large stadiums. We will keep you informed as the debate evolves.

Will the 2016 Legislature Consider Uncork Legislation?

Tue, 19 Jan 2016 01:42:49 GMT

As liquor store owners, we know that our businesses require hard work. This is true for day to day sales in our stores and it is true for maintaining a market structure where Kansas owned small businesses can continue to succeed. Kansas liquor retailers have proven they have what it takes to stand up to Uncork Kansas in the Statehouse in Topeka. Uncork Kansas has more lobbyists and more money, but their legislation – House Bill 2200 – was not successful in 2015. Why? KABR is working with small and large retailers to promote truth and fairness for Kansas small businesses against intimidating odds. We work with our partners – Keep Kansans in Business, KS Wine and Spirits Wholesalers Association and the Kansas Association for Responsible Liquor Laws to keep legislators informed.

While the 2016 Session has had a slow start - Uncork says they will push their agenda again this year. HB 2200 remains on House general orders and could be pulled up for floor debate any time.

In 2015, there were three proposals by the grocery stores and convenience stores Uncork coalition to sell strong beer, wine and spirits. A Single Strength Beer amendment was defeated by the Senate on a vote of 11 to 26 on May 14^th. In the House of Representatives, HB 2200 passed committee but was left “below the line”, never seeing floor action. It is still alive in 2016.

KABR has been very successful in recent years, but we need your participation! We need your action to continue to win. We need your input in order to speak accurately on behalf of Kansas retailers and we need your membership dues to sustain these efforts.

Longtime KABR Board Member Joan Kempf Passes Away

Sat, 03 Oct 2015 17:49:30 GMT

We are very sorry to report that Joan Kempf, owner of JD Liquor in Arkansas City, passed away in September. Joan was a very active KABR member and served on the Board of Directors. We will miss Joan. Our thoughts and prayers go out to her husband John and her family.

Joan Richardson Kempf

Obituary Posted: Wednesday, September 9, 2015 12:00 am Arkansas City Traveler

Joan Richardson Kempf, 81, of Arkansas City, passed away Sunday, Sept. 6, 2015, at her residence.

She was the beloved wife of John D. Kempf.

Cremation has been effected.

Services will Sept. 29, 2015, at the First United Methodist Church in Arkansas City.

The Reverend Stephanie Wall Brown will officiate.

Joan was born Jan. 4, 1934, to Rutherford Matthew Richardson and Doris (Jones) Richardson in Camden, Ark.

She attended Fairview High school in Camden, graduating in 1952.

Joan first worked as a secretary for the Arkansas Press Association in Little Rock, Ark.

She then earned her wings as a stewardess for American Airlines and was stationed in Dallas, Texas.

While living in Dallas, she met and married 1st Lieutenant Francis Plonowski, a US Air Force pilot.

Together, they lived in various locations throughout the United States and overseas including England, Morocco, France and Japan.

During this time she worked as a keypunch operator for the Frigidaire Corporation and as a homemaker raising two children.

The family moved to Horseheads, N.Y., where Joan worked as a secretary for the General Electric Company.

It was at GE that Joan met John.

The couple married on Aug. 1, 1981, and moved to Grove City, Pa.

They settled in Arkansas City in 1984.

Joan has been the owner-operator of Kempf Liquor and JD Liquor stores in Arkansas City since 1989.

She was an active member of Soroptomist International where she served as Governor of the South Central Region from 2004-2006.

Joan enjoyed cooking, crossword puzzles, crafts, golf and entertaining.

She is survived by her husband, John D. Kempf, of the home; daughter, Cynthia Peverall, and husband, David, of Alexandria, Va.; son, Michael Plonowski, of Denver, Colo.; sister, Dona Davenport, of Tucson, Ariz.; grandchildren, Ian, Cole and Adam Peverall; stepchildren, Jennifer Kempf, of Hyattsville, M.D., Jay Kempf, and wife, Leslie, of Warren ,Vt., Andrew Kempf, and wife, Beth Ann, of Woodstck, N.Y., Leslie Trembly, and husband, Dennis, of Watkins, Glen, N.Y.; stepgrandchildren, Katie, David and Janie Kempf, and JP and Robbie Trembly.

Joan was preceded in death by her parents, and sister, Joyce Richardson.

Memorials have been established with the Soroptomists in Arkansas City and Shriners Hospital for Children in Philadelphia, Pa.

Contributions may be made through the funeral home.

Arrangements are under the direction of Rindt-Erdman Funeral Home, Arkansas City.

Online condolences may be made at www.rindt-erdman.com.

KANSAS' LONGEST LEGISLATIVE SESSION ENDS JUNE 12

Tue, 16 Jun 2015 17:59:42 GMT

June 12 2015 – Friday – marked the end of the 2015 Legislative Session. It was the longest legislative session in Kansas history at 113 days. The Legislature will return on Friday, June 26 for sine die – the procedural “last day”. Legislators will have to take a vote on Friday, to correct an inconsistency in the final tax legislation.

Most of those who live and work daily with the Legislature would mark this session as a painful one. The choices that were left on the table at the end were not what anyone would have wanted – passing the largest tax increase in Kansas history, when measured in terms of overall revenue at $385 million. And, although Governor Brownback is painting the final tax legislation as consistent with the objectives of the “path to zero” income tax experiment, the Republicans who dominate the Kansas Legislature’s majority are hoping mightily that their efforts will have been enough to balance the budget for at least two years. Some advisors have indicated that a least two elements of the revenue package are not reliable, and if the taxation of LLC guaranteed payments does not raise $23.7 m and the tax amnesty plan does not raise $30 m, legislators may have to raise taxes again next year. That is something they will need to avoid, and hope that the voters won’t remember this session when they cast their votes in November 2016.

THE BUDGET

SB 112 is the mega-budget bill that had been agreed – for the most part – early in May by the conference committee and was ultimately adopted. Read the conference committee report description here. It was further amended by the budget conference committee to include most of the Governor’s Budget Amendments and a few omnibus adjustments.

The budget bill includes cuts to most state agencies and flat funding for many others, while covering the increasing costs of Medicaid. It provides for the next two fiscal years' funding and is on top of the FY 15 rescission bill passed early in the session (which cut nearly $100 million from FY 15), and separate funding bills for K-12 schools (the block grant bill) and the Judiciary. The K-12 Block Grant Bill eliminates Kansas' school finance formula, replacing it with block grants. The Judiciary Bill funds the Supreme Court and Judicial System at levels below their request, and includes a clause that will drop all funding for the Judiciary if the Supreme Court should rule against a 2014 law taking away the authority of the Supreme Court to appoint lower court judges.

It was a risky plan – to hold over the mega-budget agreement until the veto session and attempt to push it through without further major adjustments. The Governor and administration officials wanted to keep the budget as agreed during the regular session and avoid deeper cuts into the agencies. The Governor had promised K-12 and Regents Universities that no further reductions would be made. But for many legislators, the 4% state general fund cuts, the transfers of fee fund balances and reductions to existing programs already contained in the budget were forgotten in the months since the regular session. Many were pushing for deeper reductions to state spending rather than voting for any kind of tax increases. Estimates varied, but an additional 6.2% across the board state general fund cut was promoted as a way to close the $406 million gap and avoid tax increases altogether. “Kansas doesn’t have a revenue problem, we have a spending problem,” was the quote often heard as the House and Senate each debated and rejected multiple variations of HB 2109 and SB 270 – the tax bills.

The threat level was increased in the first week of June, as Shawn Sullivan, Budget Director, warned legislators that the state might have to lay off thousands of state employees if the budget bill was not adopted soon. The House moved forward and adopted H Sub for SB 112 with no debate on June 3. The Senate, however, would not debate the budget bill until it had approved a revenue package. Saturday, June 6, the House and Senate quickly adopted a brief change to Kansas statute to prevent state employee furloughs. The temporary fix in SB 11 classifies all state employees as “essential” for the balance of the month of June. This prevents the furlough of 24,000 state employees deemed “nonessential” who received notices on Friday. Read KHI article.

Sunday, June 7, after passing the conference committee report on S Sub for HB 2109, the revenue package – raising $406 million revenue in this version – the Senate adopted H Sub for SB 112, the major budget bill of the 2015 legislative session. Although many hoped the Senate action would lead to House approval the next day – and adjournment, it would be five more days (and two more very late nights) before the veto session would end.

To form the state budget for FY 15, FY 16 and FY 17, in addition to H Sub for SB 112, the Legislature passed a rescission bill (further reducing the FY 15 budget early in the session), a Judiciary budget bill, and the K-12 block grant funding bill.

THE REVENUE PACKAGE

Read an outline of the tax legislation HERE. It took 113 days for the Kansas Legislature to pass tax legislation to pay for the FY 16- FY 17 State Budget and close a $406 million shortfall. Ultimately, the Legislature chose to compel the Governor to take responsibility for $50 million of that total. (Many have forgotten that the earlier proposals from the administration had filled in another $400 million through FY 15 allotments and internal transfers beginning in December 2014.

The final tax package is a combination of S Sub for HB 2109 as adopted by the Senate on June 7 and the tax trailer bill H Sub for SB 270 – written to amend HB 2109 in order to gain passage in the House. A third piece of the puzzle is the modified fee plan for managed care organizations proposed by the Governor’s original budget, which brings in $47.8 million by drawing federal funds into the Medicaid program.

Multiple combinations of revenue ideas were put forward, debated and ultimately voted up or down in the last 23 days of the session. In some ways, the development of the revenue package was one of the most democratic processes we have seen in the Legislature for some time. The Senate debated its tax bill for several days, with multiple amendments considered, before putting HB 2109 into conference committee. Once in conference, it took five conference committee reports to find a plan that was not rejected by one chamber or the other. This meant multiple floor debates in each chamber discussing the options.

The final tax package includes:

- State Sales Tax Increase from 6.15% to 6.5% ($164 m) (H 2109 as passed by the Senate increased to 6.55%)
- Increases cigarette taxes 50 cents per pack ($40 m)
- Amends the 2012 tax exemption for LLCs to tax “guaranteed payments” ($23.7 m)
- Reduces itemized income tax deductions ($97 m)
- Creates tax amnesty program for delinquent tax payments ($30 m)
- Freezes income tax rates that are scheduled to decrease ($26.4 m)
- Raises $384.7 million for FY 16 (H 2109 as passed by the Senate would have raised $406 m)
- Requires the Governor to cut an additional $50 million to reach an ending balance of $86 million for FY 16 (We do not know where these cuts will occur, although a significant portion is likely to come from IT.)
- Eliminates income taxes for the state’s 388,000 lowest income tax paying citizens in FY 17
- Sets a 2.5% limit for revenue growth – triggering income tax rate reductions whenever revenue exceeds the limit (H 2109 as passed by the Senate included 3% limit)
- Maintains the current food sales tax rebate (H 2109 as passed by the Senate repealed the rebate, but reduced the sales tax rate on food to 4.95%. Legislators hope that reducing food sales tax rates can be achieved in a future session.)

When the Senate approved S Sub for HB 2109 on June 7, it included two very controversial sections. First, the sunset of numerous sales tax exemption statutes by 2018 – with a committee created to review and recommend whether or not those exemptions should remain in law. This provision caused great concern for hospitals, non-profits and others. The section was dropped from the final package, but the Legislature plans to spend time next session reviewing sales tax exemptions for possible repeal. This exercise has been done in the past, without successfully reforming the exemption statutes in the way that proponents would like to see.

Second, a property tax lid provision that would require a public vote whenever local governments raised property taxes beyond a certain rate. The final package loosens the restrictions, allowing for increases based on rate of inflation, infrastructure, road construction, bonds and interest, state and federal mandates, etc.

At the end, there was a joint meeting of House and Senate Republicans where the Governor’s staff threatened terrible budget cuts within 3 days. Legislative leaders urged the caucus to make the very difficult votes needed to end the session. Democrats and moderate Republicans held firm, unwilling to go on the record voting for any tax increases – most stating that they would not help to solve the budget problems they believe were caused by the income tax cuts of 2012 and 2013. This meant that the Republican conservatives were then fragmented into smaller contingents, mostly including what could be called the center right and the ultra-conservatives. It was these groups that had to forge a compromise to adopt a revenue plan in order to balance the budget. But for some to move away from their anti-taxation principles was extremely difficult, and there were rifts created and relationships marred. The lessons of the 2010 and 2012 elections were quite clear – with groups such as the Kansas Chamber, Americans for Prosperity, and the Kansas Policy Institute raining postcards into legislative races against those deemed as “tax and spend” politicians. It will be interesting to see how many conservative Republicans will have to pay a similar price in 2016 for voting for the 2015 tax increases – being touted as the largest tax increase in Kansas history.

Read KHI Article: Why the Legislature is Struggling to Pass a Tax Plan.

Grocers, child advocates await Legislature's next move on food sales tax: Only one state, Mississippi, taxes food purchases at a higher rate

Tue, 02 Jun 2015 19:30:03 GMT

http://cjonline.com/news/2015-06-02/grocers-child-advocates-await-legislatures-next-move-food-sales-tax

Posted: June 2, 2015 - 11:51am

Kansas already has the nation's second-highest sales tax for food, leaving grocers and child advocates wary of a potential increase as lawmakers wrangle with a $400 million budget gap.

ByJustin Wingerter

justin.wingerter@cjonline.com

As the Kansas Legislature continues its prolonged search for a solution to the state's $400 million budget gap, grocers and child nutrition advocates are watching what happens to the state’s sales tax rate for unprepared food.

Most states and the District of Columbia don’t collect sales tax on food and many states that do offer a lower tax rate for food compared to other items. Kansas, however, currently taxes food at the same rate – 6.15 percent – as other consumer goods. Only Mississippi, with its 7 percent sales tax rate, places a higher state sales tax on food purchases than Kansas.

In a plan that didn’t pass the Kansas Senate on Monday, the sales tax rate on food would fall to 6 percent but not until six months after the overall sales tax rate was increased to 6.5 percent. On Saturday morning, Gov. Sam Brownback put forth a plan that would not create a separate sales tax rate for food, meaning the rate for food would increase to 6.5 percent.

Half of Kansas’ four neighboring states, Oklahoma and Missouri, tax unprepared food sales. Oklahoma’s tax rate is 4 percent while Missouri’s is 1.225 percent.

John McCormick, president and CEO of the Retail Grocers Association of Greater Kansas City, represents grocery stores in both Kansas and Missouri. McCormick says residents on Kansas’ northern and eastern borders often cross into Nebraska and Missouri for cheaper groceries.

“It’s just one more thing that could, and does, push people across the line,” McCormick said. “Gas is fairly cheap right now so they may drive across for cigarettes and liquor and while they’re there, they’re going to buy their groceries over there.”

McCormick said minor changes to the sales tax on food would create a lot of work for grocery store employees, who must electronically reset the rates each item is taxed at, while providing very few savings for consumers.

Shannon Cotsoradis, CEO of the Topeka-based nonprofit child advocacy group Kansas Action for Children, agrees.

“That’s not the kind of modification that’s really going to make a difference for struggling families,” Cotsoradis said.

Cotsoradis said the state’s comparatively high tax rate on food forces the state’s poorest families to decide between buying quality food and paying bills, such as rent and electricity. It also curbs the ability of low-income parents to buy nutritious food for their children, prompting them to purchase low-quality food in bulk instead, according to Cotsoradis.

Kansas City-based nonprofit group KC Healthy Kids points to a survey conducted last year by Fort Hays State University researchers which found 73.5 percent of the 2,203 Kansas adults surveyed supported eliminating the sales tax on food while 13.1 percent somewhat supported it.

“In addition to making healthy food more affordable for Kansans, cutting the food tax could help smaller and rural grocery businesses in the state by encouraging customers to shop in Kansas rather than in neighboring states with lower food taxes,” the group argues.

McCormick said he also supports eliminating the sales tax on food.

“I’m a proponent of zero taxes on unprepared food,” McCormick said. “That would help the lower-income wage earners.”

While Kansas Action for Children has supported eliminating the sales tax for food in the past, Cotsoradis said the group isn’t lobbying for it in the current political climate. Instead, she’s hoping lawmakers “hold the line” and ensure the rate isn’t increased.

A report released Monday by KC Healthy Kids and Wichita State University researchers found Kansas’ sales tax on food is regressive, hitting the budgets of low-income families and individuals significantly harder than middle- and upper-class consumers.

“For the case of a family of three living in a metropolitan area, we find that the incidence of taxing groceries is under 0.2 percent of household income for those with income greater than $150,000 per year, while it is over 5 percent of household income for those households with income less than $10,000 per year,” the researchers wrote.

Justin Wingerter can be reached at (785) 295-1100 orjustin.wingerter@cjonline.com.
Follow Justin on Twitter@JustinWingerter.

Liquor Omnibus Bill passed by Legislature - Senate Sub for HB 2223 includes 17 Distinct Liquor Policies

Sat, 30 May 2015 21:41:37 GMT

The Conference Committee Report on HB 2223 includes 17 distinct liquor policies

In a pattern that has become commonplace in recent years, the House and Senate Federal and State Affairs combined HB 2223 and HB 2331 into a large conference committee report covering issues ranging from distributors sampling to retailers through farm winery farmer's market permits. Click HERE to see a chart of the issues that were passed in the conference committee report.

Most of the issues, including enforcement procedures requested by ABC, had been combined into two House bills during the regular session in order to facilitate their passing even while leadership was trying to decide what to do with Uncork legislation. Two controversial measures were amended into the bills by the Senate in May - allowing self-service wine dispensers (requested by the Kansas Star Casino) and allowing the Legislative Coordinating Council to permit liquor to be served in the Capitol at official state functions.

The report has yet to be signed by the Governor. KABR will discuss the issues in detail at our Monday teleconference - see above.

With the major liquor policies of the session now resolved - it is unlikely any other liquor issues will be considered. This leaves HB 2200 - the county option Big Box Liquor bill - "below the line" in the House of Representatives, and while it certainly could receive a vote - it probably won't.

Legislature at 100th Day - will work the weekend

Sat, 30 May 2015 17:45:30 GMT

Legislature at 100th Day - will work the weekend

The Kansas Legislature has gone into overtime (beyond their allotted 90 day session). House and Senate Tax Committee have struggled to create a revenue plan that can attract support from 63 House members and 21 Senators.

The Legislature will work through the last weekend of May as they attempt to pass legislation to fill a budget hole of approximately $385 to $400 million that will be needed to pay for FY 16 and FY 17 budget as it currently stands in the conference committee report. So far, neither the House nor the Senate has been able to pass anything except a limited bill to provide for a tax amnesty policy (allowing past due taxpayers to pay what they owe without penalties in 2015) that raises only $30 million. The House and Senate will continue to attempt various combinations of tax policy – including increases to sales tax, tobacco tax, eliminating various deductions and amending or delaying the 2012-13 income tax reductions. Liquor taxes have been on and off the table - but haven't passed committees in either chamber. Floor debates are scheduled today and tomorrow - but the final plan may have to be crafted in conference committee, using a loose interpretation of rules to insert various concepts into the report. If the deadlock continues for much longer, further budget cuts are likely to be tested as well.

At this point, the mega-budget bill remains in conference committee. That bill includes the 4% across the board cuts to all agencies – cuts that will reduce budgets for several mental health advocacy organizations and CROs. The agreements thus far also includes late session additions that were passed by the Appropriations Committee and the Ways and Means Committee and simply inserted into the conference committee report.

House of Representatives to Vote on Big Box / County Option Bill Thursday - Sub. for HB 2200 - This is the up or down vote many have waited for...

Tue, 05 May 2015 19:21:49 GMT

After failing to adopt a proper motion on Monday to adopt Substitute for HB 2200, the Chairman Hutton opened a quick meeting Tuesday. After apologizing for not having the correct motion yesterday to pass the bill out of committee, he requested motion.

Rep. JR Claeys made the motion to adopt HB 2200 as a substitute bill. Second by Rep. Schwab.

Sub. for HB 2200 passed 9 to 8. See bill info below.

YES: Hutton, Claeys, Couture-Lovelady, Davis, Hemsley, Kleeb, Mason, Suellentrop, Schwab (sitting in for Carpenter)

NO: Billinger, Brunk, Corbet, Curtis (sitting in for Whipple), Frownfelter, Patton, Ruiz, Ward (sitting in for Tietze),

All members voted Tuesday, but the Chair did have to vote to break another tie - this time it was 8-8.

This action sets up the House floor debate that many have been waiting for. The Speaker of the House had asserted that he wanted to have an up or down vote on Uncork this year, because the issue has been around long enough.

We have heard from many of our supporters that they want to see the bill voted down on the floor. Some are counting on the committee chairman's statement that he would not hold hearings next year if the bill is defeated.

______________________________________________

It is very important to know if your representative and senator will support Uncork with either of these amendments. If legislators maintain their opposition to Big Box Liquor, SB 298 and HB 2200 could remain in committee.

Please speak to your senator and representative and ask if they are planning for vote for or against Uncork with these amendments.

Please generate as many calls and emails to representatives and senators as you can over the next week from employees, family, vendors, peers, and neighbors! The hotline is open and operates during business hours:

Hotline: 1-866-519-2200 Email Site for Employees/Customers/Friends: http://keepksjobs.org

Information about Sub for HB 2200

The Monday Commerce Committee vote to create Sub for HB 2200 was tied at 7 to 7 and the Chair voted to break the tie. The vote was as follows:

YES: Rep. Mark Hutton, Rep. J.R. Claeys, Rep. Travis Couture-Lovelady, Rep. Erin Davis, Rep. Lane Hemsley, Rep. Marvin Kleeb, Rep. Scott Schwab (replacing Carpenter), Rep. Gene Suellentrop

NO: Rep. Rick Billinger, Rep. Steve Brunk, Rep. Ken Corbet, Rep. Stan Frownfelter, Rep. Fred Patton, Rep. Louis Ruiz, Rep. Jim Ward (replacing Whipple).

Did not vote: Rep. Mason, Rep. Tietze (Both of these legislators voted yes to get the bill to the floor for a vote of the full House before, but did not assist with adopting the substitute bill today.)

Read the Proposal to Amend HB 2200 from Uncork HERE

See Chart for County Option Retailer Act License Descriptions

Read the Notes from the Committee HERE

Amy Campbell KABR Testimony Opposed to HB 2200 with County Option

Tuck Duncan KWSWA Testimony Opposed to HB 2200 with County Option

Whitney Damron KARLL Testimony Opposed to HB 2200 with County Option

David Dillon, Dillon Food Stores, Testimony Supporting HB 2200 with County Option

Mike O'Neal, Kansas Chamber, Testimony Supporting HB 2200 with County Option

House Commerce Committee Narrowly Approves Inserting County Option into Sub for HB 2200 but Must Re-Vote to Pass Bill Out

Tue, 05 May 2015 01:13:50 GMT

House Commerce Committee Narrowly Approves Inserting County Option into Sub for HB 2200 but Must Re-Vote to Pass Bill Out - Don't forget to thank our supporters!

The House Commerce Committee held a limited public hearing on adding county option to HB 2200 - the Big Box Liquor bill. Many were surprised to learn that the new language did more than just create a county option. It changes several elements of the bill, including creating a third class of license for the liquor stores - which has different requirements than the class A and class B licenses.

The motion to create a substitute bill including the new language narrowly passed - the vote was 7 to 7, with the Chairman voting aye to pass the motion. There was confusion after the meeting as to whether or not the bill was actually passed out of the committee or simply amended. We learned this evening that the Committee will have to vote again in order to pass the bill to the full House - because the language of the motion was not phrased properly to include passing the bill. A changed vote by one person could halt the bill's progress and shut down Uncork for the year.

The vote was as follows:

YES: Rep. Mark Hutton, Rep. J.R. Claeys, Rep. Travis Couture-Lovelady, Rep. Erin Davis, Rep. Lane Hemsley, Rep. Marvin Kleeb, Rep. Scott Schwab (replacing Carpenter), Rep. Gene Suellentrop

NO: Rep. Rick Billinger, Rep. Steve Brunk, Rep. Ken Corbet, Rep. Stan Frownfelter, Rep. Fred Patton, Rep. Louis Ruiz, Rep. Jim Ward (replacing Whipple).

Read the Proposal to Amend HB 2200 from Uncork HERE

See Chart for County Option Retailer Act License Descriptions

Read the Notes from the Committee HERE

Amy Campbell KABR Testimony Opposed to HB 2200 with County Option

Tuck Duncan KWSWA Testimony Opposed to HB 2200 with County Option

Whitney Damron KARLL Testimony Opposed to HB 2200 with County Option

David Dillon, Dillon Food Stores, Testimony Supporting HB 2200 with County Option

Mike O'Neal, Kansas Chamber, Testimony Supporting HB 2200 with County Option

The House Could Debate Sub for HB 2200 As Early As Thursday - Senate Delays Liquor Bill Debate

URGENT: It is very important to know if your representative and senator will support Uncork with either of these amendments. If legislators maintain their opposition to Big Box Liquor, SB 298 and HB 2200 could remain in committee.

Please speak to your senator and representative and ask if they are planning for vote for or against Uncork with these amendments.

Hotline: 1-866-519-2200 Email Site for Employees/Customers/Friends: http://keepksjobs.org

House Commerce Committee:

Members

House Commerce Committee Public Hearing on County Option for HB 2200 Monday 1:30 pm Monday

Thu, 30 Apr 2015 20:12:24 GMT

House Commerce Committee Public Hearing: County Option HB 2200

1:30 pm - Kansas Statehouse Room 346-S - BE THERE!

The House Commerce Committee plans to meet on Monday and hold a limited public hearing on adding county option to HB 2200 - the Big Box Liquor bill. The structured hearing will allow 10 minutes testimony from proponents and opponents, then the House Commerce Committee will have the option of adding county option language to HB 2200.

More than one House member has told us that they are disappointed at the lack of phone calls and emails they are receiving from opponents to Uncork. These are legislators who support us, but they want to hear from the public! Some are rural legislators who know their retailers personally, but tell me they haven't heard from them since shopping in December. Let's get busy!

Please speak to your senator and representative and ask if they are planning for vote for or against Uncork with these amendments.

Hotline: 1-866-519-2200 Email Site for Employees/Customers/Friends: http://keepksjobs.org

House Commerce Committee:

Chair

Rep. Mark Hutton

Vice Chair

Rep. Les Mason

Ranking Minority Member

Rep. Stan Frownfelter

Members

HB 2200 and SB 298 - Joint Letter Sent to Legislators

Sat, 25 Apr 2015 19:10:01 GMT

KABR partnered with KS Association for Responsible Liquor Laws, KS Wine and Spirits Wholesalers, and Keep Kansans in Business to send a joint letter to legislators during their spring break. Read the letter. The county option concept does nothing to make HB 2200 a better bill.

SB 298 is similar to HB 2200 as it came out of the House Commerce Committee. However, the bill includes a county option for corporate chain liquor sales – either by county commission resolution or by petition and election. It also seems to forego the three year delay for big box and grocery stores where a local election adopts corporate chain sales. Read SB 298 here.

The Senate Federal and State Affairs Committee is not likely to vote on SB 298, which means that Uncork may make a move to be amended into other liquor bills that will be debated on the Senate floor.

HB 2200 awaits action after being sent back to the House Commerce Committee for more work. Uncork proponents are working to gain votes for the bill with the addition of a local option requirement or strong beer amendment.

It is very important to know if your legislators will support Uncork with either of these amendments. If legislators maintain their opposition to Big Box Liquor, HB 2200 could remain in committee.

KANSAS LEGISLATURE RETURNS TO TOPEKA APRIL 29

Fri, 24 Apr 2015 17:04:30 GMT

Kansas legislators are at home for spring break until April 29 when they will return to Topeka to attempt to reconcile the proposed state budget with revenue reductions. Today, the Consensus Revenue Estimating Group forecast additional reductions for state revenues - deepening the fiscal hole. This could mean an extended Veto Session - leaving plenty of time for additional action on legislation that failed to advance during the regular session...including Big Box Liquor.

KABR has teamed with KS Association for Responsible Liquor Laws, KS Wine and Spirits Wholesalers, and Keep Kansans in Business to send a joint letter to legislators prior to their return. Read the letter. Retailers should also reach out to legislators at home during this time - see tips at http://kansasretailer.org.

The Senate Federal and State Affairs Committee is not likely to vote on SB 298, which means that Uncork may make a move to be amended into other liquor bills that will be debated on the Senate floor.

It is very important to know if your legislators will support Uncork with either of these amendments. If legislators maintain their opposition to Big Box Liquor, HB 2200 could remain in committee.

Legislature Poised to Address Budget and Revenues

Tue, 21 Apr 2015 01:29:09 GMT

The Consensus Revenue Estimating Group met April 20 and the report contained more bad news – forecasting $98.2 million reduced revenues for FY 16 and $100.8 million reduced revenues for FY 17. The current fiscal year estimates reduced revenues of $87.5 million – and increased adjustments of $244.5 million, mostly from the passage of the rescission bill in February. It is not clear where the $157 million difference will leave the overall budget for FY 15 – ending June 30. But the mega-budget bill will require further adjustments unless significant tax policy bills are moved forward.

Even with the Governor’sAllotments last Fall, the rescission bill H Sub for SB 4) addressed a $300 million budget shortfall for fiscal year 2015 (ending in June) to prevent the state from defaulting on its financial obligations. The legislation included several transfers, cuts and delays in funding, including $158 million from the State Highway Trust Fund, $7.9 million in delayed payment to the Kansas Employment Retirement System and $7.1 million from the Job Creation Program Fund. The House of Representatives passed the bill by a vote of 88-34. The Senate passed the bill by a vote of 24-13 sending it to the Governor to sign into law on February 16.

Currently, Senate Sub for HB 2135 remains in conference committee – this is the 2015 Legislative Session’s Mega-Budget Bill. Only the Senate has passed a mega-budget bill this session, which puts the House of Representatives in the uncomfortable position of having to either concur with the version as it emerges from conference, or send it back for more work. There is no opportunity for floor amendments unless they move forward their own House bill. The House and Senate Conference Committee ended its negotiations with a tentative agreement, but did not move it to the floor for concurrence – choosing instead to hold it over to the Veto Session. It is likely that the late session budget adjustments that typically are passed in an Omnibus bill will simply be rolled into Senate Sub for HB 2135. As it stands, the bill spent about $16 million more than the Governor’s proposed budget – ending up around $141 million below revenue estimates.

The Appropriations Committee will meet this week and Senate Ways and Means will meet next week to cover the discussion of omnibus items. State Budget Director Shawn Sullivan indicated today that the Governor will be meeting with his staff this week to make recommendations for revenue enhancements. His policies for increasing tobacco and liquor taxes, as well as some income tax adjustments, have seen no action to date. Both bills had public hearings during the regular session.

House Appropriations Committee - Thursday April 23 beginning at 10:00 am and Friday April 24 beginning at 9 am in Room 112-N

Senate Ways and Means Committee -Tuesday April 28 beginning at 3 pm in Room 548-S

Legislature Poised to Address Budget and Revenues in Veto Session

Tue, 21 Apr 2015 01:24:43 GMT

House Appropriations Committee - Thursday April 23 beginning at 10:00 am and Friday April 24 beginning at 9 am in Room 112-N

Senate Ways and Means Committee -Tuesday April 28 beginning at 3 pm in Room 548-S

County Option, Strong Beer, Outlet Density - What are the Facts?

Sat, 28 Mar 2015 17:46:25 GMT

County Option and Strong Beer

HB 2200 is hung up in the House for lack of votes. But the Uncork lobbying corps is working to generate support for county option and/or strong beer.

Now is the time to talk to Senators AND Representatives about the county option. The Legislature is approaching its First Adjournment deadline April 3, and action could happen any day. A county option changes nothing about the Big Box Liquor issue. While some legislators may feel relief that the issue could be determined on a local basis – liquor retailers need to be able to rely on a predictable and stable statewide regulatory system. Statewide liquor regulation is complicated can be complicated today – and few local law enforcement officers truly know and understand the liquor laws regulating licensees.

Allowing Sunday sales or different hours of sales locally is manageable. But this proposal will result in counties where no consumer or law enforcement officer can tell from the outside of a business whether or not it sells wine, beer and spirits; or strong beer; or cereal malt beverages. The rules for the ages of the employees, legal hours of sale, and even the display of products will be different. There is no reason to assume that all grocery and convenience stores will choose to sell strong beer instead of cereal malt beverage in a county that adopts the change. We know that some stores have already encountered difficulty convincing the local police that the convenience store across the street is not supposed to sell CMB on Easter or before noon on Sunday. Does your local sheriff know about this new proposal?

Every retailer in the state WILL be affected by a checkerboard market system that allows corporate chain liquor sales and strong beer sales on a county by county basis. Product availability, pricing and delivery is currently affected by statewide demand – and that will continue regardless of what each county decides to do.

Ultimately, this is just another way to transfer the current retail liquor marketplace – an industry that encourages Kansas family owned small business success – to the corporate chains. Local retailers and churches will have no way to combat the expensive Uncork PR machine when it comes to their county. While the Uncork PR program is now focused on 165 state legislators, imagine the effect when it is pointed to three county commissioners. Uncork will pay for dozens of petitioners to walk door to door and speak the same over-simplified and often untrue “monopoly” message to your neighbors. Postcards and advertising will carry that message.

Read the articles about petitioners and problems with liquor laws made by local ordinance:

Four Indicted in Petition Fraudhttp://www.topix.net/com/kr/2015/03/1503236B5CNF
3 Indicted over Kroger Liquor Petition Signatures http://www.dispatch.com/content/stories/local/2015/01/24/3-indicted-over-petition-signatures.html
Union - Delaware Counties Sheriff Investigating Kroger Petition Signatures http://www.thisweeknews.com/content/stories/marysville/news/2014/10/10/union-delaware-counties-sheriff-investigating-kroger-petition-signatures.html

While Uncork wants to paint their proposal as limited and beneficial to liquor store owners, it is simply the same old market takeover. The provision to “add value” to current licenses by requiring that Big Box Stores would have to purchase a current liquor license will not work as advertised.

First, the current market supports 749 liquor licenses because it includes the sale of strong beer, wine and spirits. Strong beer sales make up the majority of most store sales (some even as high as 80%), provide customer traffic for sales of other products, and represent growing craft beer demand.

This is proven by the fact that the number of liquor stores in Kansas has remained very stable over the past decade.

SB 298 and HB 2200 allow strong beer to be sold by grocery and convenience stores with no limitations. The Division of ABC estimates there are 1775 eligible businesses that might begin selling strong beer if the bill is passed. At this point, the Kansas customer base will no longer support the existence of 749 liquor stores. A significant number of stores will fail and their licenses return to the State – there will be no bidding war to inflate the value of surviving licenses.

Second, there are two economic studies – Colorado and DISCUS - indicating that strong beer sales alone (without the big box liquor sales) will result in closure of locally owned retail liquor stores. I was very surprised to hear one House member state in committee debate that he had never seen anything that showed that strong beer sales would change liquor store sales. He argued that most beer buyers don’t want to stand in a grocery store line. It is a surprising assertion, when one considers that virtually every consumer spends some time in a grocery store or gas station during each week. Why wouldn’t they buy their beer while they are there?

Review the studies:

Of course, there is also the Dr. Art Hall study commissioned by the Big Box Stores that predicted around 50% of stores would close once beer, wine and spirits were sold by grocery and convenience stores.

Other evidence supporting fewer alcohol outlets per population density:

Potential Health Effects of Expanding Liquor Sales to Grocery and Convenience Stores – Kansas Health Institute
Regulating Alcohol Outlet Density: An Action Guide
Robert Wood Johnson Study 2003: A Case for Regulation: Less Access to Alcohol, Fewer Traffic Deaths

When we talk about limiting the density of alcohol outlets, that discussion needs to include liquor stores, grocery and convenience stores, bars, restaurants, microbreweries and any other retail liquor business, because that is what the studies have measured.

Senate Introduces Big Box Bill with Local Option - Hearing March 31

Fri, 27 Mar 2015 01:42:48 GMT

Senate Hearing next Tuesday, March 31 Provides New Opportunity for Retailers

Show Up to Topeka Tuesday, March 31!

The public hearing on SB 298 will begin at 10:30 a.m. in Room 346-S (the old supreme court room) with proponents speaking first. The Committee will break for lunch, then return to hear the balance of the testimony. It could extend up to 2:00 p.m. Coffee and donuts will be provided outside the hearing room beginning at 8:00 a.m. Tuesday.

The Senate Hearing next Tuesday on new Big Box Liquor Bill SB 298 provides a late session opportunity for retailers to make a big impression on Kansas senators. There has been no action in the Senate on any Uncork bills since 2011, when SB 54 was passed out of committee and then sat on general orders for the rest of the session – unable to garner enough support from the full Senate for a vote.

While KABR has urged members to talk to Representative and Senators each year about the Big Box Liquor issue, many retailers have put most of their focus on the House of Representatives – where the action was. Meanwhile, Uncork has hired even more lobbyists to spread their message in the Capitol.

Read SB 298 here.

Contact Information for Senators Linked Here.

Action Items: (scroll to bottom of this message for more tools)

1. RSVP – Show Up on Tuesday for the Senate Hearing on SB 298 -

We must make an impression! RSVP Here.

2. Send your written testimony to Amy at KABR email by midnight Sunday night. We need updated testimony from you, your accountant, lawyer, friends, pastor, mayor, sheriff.

3. Contact your Senator and Representative – Set up a meeting on Tuesday for before or after the hearing. The hearing is expected to run 10:30 to 12 noon (but you could leave a few minutes early to meet your legislator for lunch) then resume at 1:00 p.m. or so. Meet in their office, meet for lunch, meet for dinner or a drink. You must let your senator and representative know that you will be in Topeka and set up a time to talk to them while you are there. Either or both of them may end up voting on Big Box Liquor before this session ends. Could be next week, could be during veto session when they come back to Topeka April 29.

4. Generate phone calls and emails to Senators and Representatives to oppose Big Box legislation. While there are some legislators who are hearing from a lot of opponents. There are several who have told me they are discouraged at the lack of communication. Even if you know your legislator supports you – he or she needs to hear from your employees, customers, vendors, church members, community leaders, local law enforcement in order to support his or her position. You must provide that support.

Senate Tax Hearing Notes

Tue, 24 Mar 2015 21:52:12 GMT

Senate Assessment and Taxation Committee Hearing on SB 233

Link to SB 233 – Bill Language

Link to SB 233 – Fiscal Note Explanation

Link to KABR Testimony by Jeff Jones, Grand Slam Liquor

Link to written testimony by Brown Bag Liquor

Neither the Senate nor the House is expected to take action on any of their tax proposals until after the April spring break which begins after Drop Dead Day - April 3. Once the March and April revenues are reported, leaders will have a better idea how much is needed to fill the budget deficit. At this point, the Senate is supposed to work on their budget bills tomorrow, while the House has postponed work on its budget proposal. The House may elect to simply work with the Senate plan.

Veto session is scheduled to begin April 29, when legislators will come back to Topeka to wrap up the session. Most years, the veto session lasts only a week or two. This year, some are predicting much longer.

Hearing: Proponents

Richard Carlson, Dept. of Revenue

Governor’s budget includes proposals for revenues – encompassed in two pieces of legislation: SB 234 and SB 233. Tomorrow, will hear SB 234 = 207.11 million revenue. Today, SB 233 is the other half of the revenue package as proposed by the Governor.

SB 233 increases tobacco tax and enforcement tax. Testimony, history. While tax increases are unpopular, will become necessary to be able to put revenue on the table as the session comes to a close and the Legislature must balance expenditures with revenues.

Regan Cussimanio – Kansas Cancer Center/Cancer Action Network – pro-tobacco tax. Good for public health, encourages people to quit. Saves public health expenditures.

Dr. Roy Jensen – University of Kansas Cancer Center – no public policy action we can take that would make a bigger impact on my job, treating cancer. Impacting the price at the counter has been shown over and over again to effectively reduce rates of smoking. Will save 15,000 Kansans from premature death. Five times the number of people who died 9-11 or at Pearl Harbor. Do something that is visionary in nature and not solely focused on present concern of the budget.

Jeff Willett – Kansas Health Foundation – smoking is leading preventable cause of disease and death in Kansas.

Jody Radcam – Tobacco Free Kids – sustainability – have over 100 tobacco tax increases over the nation in the past 23 years. The revenues are predictable, reliable and sustainable. Every state has recovered more revenue. Only one state opted to lower the tax to entice cross-border sales. Subsequently, they lost revenues and ultimately reversed the policy.

Cross-border sales – another myth – evidence does not support this. Look at the previous tobacco tax increases. Most relevant is probably state of Minnesota – adopted $1.60. Saw 56% increase in revenue in one year. Even though border proximities were within one mile. Also saw reductions in youth smoking.

Smuggling – exists in measurable and predictable ways. Accounts for 3-5%. Cross-border is about 1%.

Despite relentless opposition from the industry protesting impact on low income populations, the industry increases their own prices year after year.

2 things happen when a state increases the tax – 1-the retailer increases the price as well (overshifting)… ran out of time…

More written proponents.

Opponents

Jason Watkins, Kansas Beer Wholesalers Association – oppose. Dunham Economic Impact Study showing loss of jobs and income. We will lose additional sales to Missouri by making our tax even higher. Craft beer industry is growing in Kansas. Raising the liquor enforcement tax will stifle that growth.

Tuck Duncan, KS Wine and Spirits Wholesalers Association – jelly bean bowl – the more jelly beans are in the bowl, the more my niece will eat. Taxes are the same. The more revenue we collect, the more we spend.

Filled a bottle with liquid to represent the percentage of the overall volume that is committed to taxes.

Manufacturer / Wholesaler (gallonage) / Liquor Retailer (enforcement) / Restaurant (drink tax) / other payroll, property taxes. Over half of the consumer cost of alcohol products is taxes / fees.

One of the few taxes that has consistently brought increased tax revenues to the state annually.

James Franco – don’t have a tax problem, we have a spending problem. Alcohol and tobacco taxes are terribly regressive. Mr. Carlson’s testimony points out that Missouri has the lowest taxes on tobacco and very low taxes on alcohol. Mackinaw Center – Tax Foundation = 15% of cigarettes in Kansas are already smuggled in with current tax rates.

William Kipe (?) – former Ohio budget director – Tobacco tax increase harmful to consumers and businesses. It is a declining revenue source. Some people will quit or cut back. Some will look to the internet for smuggling. Would be 13 times the tobacco tax rate in Missouri. Some people will move to vapor products / e-cig products. Smokers do have options.

Bill Nigro – Overland Park homeowner – opened Torrie’s pizza in Missouri 1998. Since then, have opened a number of businesses in Missouri and Kansas. Sued KC, MO over smoking ban. Consider myself something of an expert on impact of smoking bans on entertainment businesses. Drives customers to one side of the state line or another based on policies. Will drive customers to Missouri.

Cheaper tax on gas, cheaper tax on alcohol, cheaper tax on food, all in Missouri. Want to see the people employed in my industry keep their jobs.

Curt Diebel – premium cigar products retailer – all handmade – my customers are not addicted. My customers are no underage. I pay OTP tax – the proponents of this bill do not. Increase would equal 1.19 per cigar (up 71 cents). My customers have options 1. Might decide to pay their share to help Gov. Brownback balance the budget – unrealistic. 2. Go to Missouri. 3. Go to the internet. 4. Quit altogether.

Tobacco taxes appear to be the fifth highest tax source now. Adding $80 million would make it #3. Quoted article by Gov. Brownback re: Kansas pro-business environment and tax policy.

Whitney Damron – tobacco testimony – list of revenues Kansas received over six years. Percentage increase in annual cost results in annual increase in revenues. OTP tax increase will have a negative impact.

Doug Mays – cigar / tobacco industry – if you do nothing, the OTP receipts will continue to increase annually. Very aggressive marketing of cigar and tobacco products online. I don’t think anyone believes this bill is before this committee due to health reasons. I think it is unconscionable to punish through taxation the people who make personal choices to use legal products. If you can do it with tobacco and liquor, you can do it with all kinds of things.

Philip Bradley, KS Licensed Beverage Association – skipped – he is at SFSA liquor bills hearing

Tom Palace, Petroleum Marketers and Convenience Stores Association of Kansas – independent fuel distributors and convenience stores. $547 increase annually to a one pack a day smoker. Last tax increase ultimately led to a 26% drop in tax paid to the state. 1300 convenience stores – tobacco is the number one product we sell inside the store. Most people are a single pack buyer daily. When they come in, they buy a sandwich or a beverage. By sending buyers to Missouri, we lose those ancillary sales and the sales tax paid on those products. Also – a big impact to our stores is the inventory tax – that is where your big bump comes in right away. The convenience store industry is not protected by any laws, we compete against smoke shops

At one time, we had bad compliance – but we have improved to 90% statewide. We do a good job. This is a regressive tax we are going to put on 20% of the population, and then we know from history that those sales are going to go down.

Brad Smoot – Distilled Spirits Council of the U.S. – raising the cost of any product changes consumption habits. The higher the tax rate, the less will be spent on those particular products within the state of Kansas, thereby impacting the jobs and other products sold by those businesses. That then affects the revenues that come from payroll and sales taxes from the other products.

This industry is already highly taxes. For every dollar that businesses make from the sale of alcohol products, the state collects two dollars.

Jeff Jones, Bonner Springs, KABR – see testimony above.

Tom Jacobs – cigar stores and liquor store – have served on the board of the International Premium Cigar and Piper Retailers Association – about fifteen of these premium shops in Kansas. Have tracked when states increase the targeted tax on these products – and they don’t pay off. At federal level, looking at pulling premium handmade cigars from the

Also in opposition to the increased liquor tax. It will affect everywhere – not just near Missouri. People who buy wine, beer and spirits are for the most part creatures of habit. When you take the typical $10 product and increase it to an $11 product, they will begin to look at other products. Budweiser likes to raise their prices every year, so they now have to market 20 packs and smaller packaging because the consumer looks for similar pricing.

Spencer Duncan – Kansas Vapers Association – written opponent

Multiple written opponents – Read Brown Bag Liquor Testimony at top of notes.

Public Hearing on HB 2200 - House Commerce Committee

Sat, 14 Feb 2015 02:50:09 GMT

Kansas retailers showed up to hear the testimony from Proponents and Opponents for the Big Box Bill February 11, 12, and 13. Read First Day notes here. Read Second Day notes here. Read Third Day notes here. Read HB 2200 here.

The hearings this year featured testimony from more than the Kansas retailers who will be impacted by transforming the current private retail system to a private corporate retail system. HB 2200 puts strong beer in 1775 retail convenience, grocery and big box stores in 2018. It also allows grocery and big box stores to purchase liquor licenses to sell strong beer, wine and spirits.

There was testimony opposing the bill from former legislative Rep. Jim Howell, Frances Wood - Women's Christian Temperance Union, Seth Fox - High Plains Distillery, customer Ron McDowell, Culture Shield Network, Kansas Association for Responsible Liquor Laws, Kansas Wine and Spirits Wholesalers Association, Kansas Association of Beverage Retailers. Written testimony was submitted expressing the opposition of sheriffs from Harvey and Montgomery counties, Lyons Bank, EZ Spirits, KS Winery and Viticulture Association, as well as accountants, attorneys and other small businesses.

Uncork Chair David Dillon testified that a 2011 economic study by Dr. Art Hall showed that Kansas would gain jobs and tax income if HB 2200 were passed - even though liquor stores would close. He said these gains would come from expansion of grocery and convenience store businesses. Several consumers testified that Kansas should pass the bill for customer convenience. Lobbyists for the convenience stores and Dillons stated that they were interested in possible amendments.

Whitney Damron, KARLL, shared a more recent study that shows the loss of jobs and businesses that will occur.

Legislators asked questions - attempting to understand if the bill's provision for grocery stores selling strong beer, wine and spirits would be limited to grocery stores or would include big box stores, drugstores and dollar discount stores. The expansion of strong beer sales to all convenience stores also raised questions - the strong beer license created by the bill appears to be for convenience stores and big box/grocery stores only, meaning that other retailers who currently sell cereal malt beverages would be unable to get the new strong beer license. Taverns are not addressed.

Rep. Brunk asserted that the predicted jobs and tax gains seemed unlikely and the current liquor licensing system appears to be more of a free market, since anyone who qualifies can open a liquor store now - rather than the proposed bill which includes caps and restrictions for licenses.

The operator of a small grocery store was asked if he could open a liquor store in his current location, and he could. The opponents brought forward a letter from the small grocer in Grain Valley who has added his own liquor store and now opposes Uncork legislation. A Manhattan liquor store owner testified in support of the buyout portion of HB 2200 and felt this was the best deal that liquor stores were going to get. When questioned, he stated that it would be better for liquor store small businesses if the legislation never passed in Kansas, but stated he didn't think Uncork would ever go away.

Chair Mark Hutton has said that if HB 2200 is defeated this year, he is not likely to hold any hearings next session.

Proposed Liquor Bill to get 3 Days of Hearings in Topeka

Sun, 08 Feb 2015 16:44:57 GMT

BY DION LEFLER, THE WICHITA EAGLE 02/07/2015 3:08 PM 02/07/2015 3:19 PM

http://www.kansas.com/news/politics-government/article9521867.html

Read more here: http://www.kansas.com/news/politics-government/article9521867.html#storylink=cpy

After years of political stalemate and trench warfare in Topeka, a pivotal next two weeks at the Kansas Legislature could lead to a breakthrough in the battle of the booze.

At issue: Will chain grocery stores be allowed to sell full-strength beer, wine and spirits, and convenience stores allowed to sell stronger brews? Or will the state continue to restrict sales of full-strength alcoholic beverages to independent stand-alone liquor stores?

The state’s largest grocery chains and convenience stores have spent the past five years trying to get a bill passed that would let them sell stronger stuff than the 3.2 percent beer and wine coolers that are all they can currently stock.

So far, they’ve been held off by a determined resistance movement of liquor store owners, who say they’ve poured their lives into their businesses. They fear that allowing out-of-state big-box retailers to sell booze would mean extinction for locally owned mom-and-pop liquor shops.

House Speaker Ray Merrick intervened last week, summoning lobbyists from both sides and telling them to try to work toward a compromise.

Different sides had different takeaways from the House speaker’s meeting.

Uncork Kansas, the coalition of grocers and convenience store owners, interpreted it as Merrick endorsing their effort and trying to get a bill through the House.

Keeping Kansans in Business, the coalition of liquor store owners, said their impression was that Merrick just wants to bring it to a floor vote to settle the question one way or the other.

Rep. Mark Hutton, R-Wichita and chairman of the committee that will hear the bill, said he hasn’t been pressured by the speaker to get the bill through his committee, nor is he pressuring his committee members to approve it.

“He (Merrick) encouraged both sides to have discussions and see if they could come closer to agreement,” Hutton said. “He didn’t ask me to get it out of committee and I’m not talking to members” about how to vote.

Hutton’s Commerce, Labor and Economic Development Committee is slated next week to hold three days of hearings on Uncork Kansas’ bill,House Bill 2200. Proponents will testify Wednesday, opponents Thursday, and neutral parties, such as police and state agencies, Friday.

Committee debate, possible amendments and a vote on the bill will likely come the following week, Hutton said.

The hearings were originally scheduled to begin Monday but were postponed to allow members time to attend the funeral for Annette Hedke, the wife of Rep. Dennis Hedke, R-Wichita. She was killed in an auto accident Thursday.

House Bill 2200 would cap the number of liquor licenses in the state at about 760. Grocery stores that wanted to put high-octane beverages on their shelves would have to buy out an existing liquor store to get the license.

The theory is that would escalate the value of the license high enough to allow the independent liquor store owners to sell theirs to a Dillons or Wal-Mart and make enough money to recoup the investment in their business.

“If anything is moving this bill, it is the support of Kansans who are growing increasingly impatient with the lack of action by the Legislature and liquor store lobbyists reluctant to negotiate reasonable outcomes,” said Uncork Kansas spokeswoman Jessica Lucas.

The liquor store owners argue that major store chains would be able to use their market dominance in groceries to leverage small-time liquor store owners to sell out at cut rates.

“We have never seen an offer,” said David Dvorak, owner of Flint Hills Wine and Spirits in Andover, whose store sits across the street from a Dillons market. “Is it $2,000, is it $10,000? My inventory is $150,000 and I’ve got blue sky (business value beyond the value of hard assets) attached to that as well.”

Dvorak plans to testify at the hearing and scoffed at Uncork Kansas’ argument that its bill upholds free market principles. He said he thinks it is carefully written to let big grocery stores sell alcohol but cut out middle-sized retailers.

“They’re trying to eliminate Walgreens, they’re trying to eliminate CVS, they’re trying to eliminate Dollar General … whoever’s not a grocer is who they’re going to try and eliminate in any bill,” he said. “Well, wait a minute, guys, what’s this free market you’re talking about? If you want to open it up, open it up.”

Despite Merrick’s directive to compromise, the odds seem slim. The liquor store owners don’t want to and the grocery stores think they already have.

“Uncork Kansas has always been willing and ready to compromise,” Lucas said. “The liquor lobbyists never came to the table. So what happened this week is that the speaker said grocery stores have come up with solutions, and you guys haven’t, and I want to see solutions, not excuses.”

Liquor store owners see their opposition as a matter of survival and a last stand for their small businesses.

“We know for a fact that some local liquor stores will go out of business” if the bill passes, said Spencer Duncan of Keep Kansas Jobs. “We also know no Hy-Vee or Wal-Mart or Dillons is going out of business if it doesn’t pass.”

A version of the Uncork bill made it through a Senate committee about four years ago. But it never got to the floor because Senate leaders wouldn’t schedule a vote unless the bill’s backers could line up commitments from a majority of senators.

If it gets through the House committee this time, Merrick will almost certainly put it up for a floor vote. If it passes, then it goes to the Senate. If it doesn’t, it will probably be back next year.

“Kansans want the opportunity to be able to buy their beer, wine and spirits in grocery stores,” Lucas said. “Until legislation is passed that affords them that opportunity, this issue doesn’t go away.”

Reach Dion Lefler at 316-268-6527 or dlefler@wichitaeagle.com.

Read more here: http://www.kansas.com/news/politics-government/article9521867.html#storylink=cpy

Uncork Bill Introduced

Wed, 28 Jan 2015 22:35:37 GMT

Uncork introduced their bill in the House Federal and State Affairs Committee on Wednesday. UnCork Chairman David Dillon requested the introduction of a bill that would allow grocery stores to sell full-strength beer, wine and spirits; capping liquor licenses in the state. The bill allows convenience stores to sell full-strength beer. Uncork Kansas has refocused their campaign to convince legislators that this is a consumer movement, that they are working on behalf of their (Dillons) customers and voters of Kansas.

We have obtained a copy of the bill – see attached document. The bill has not yet been published or numbered. Hearings are expected the second week of February.

David Dillon has been meeting with numerous legislators in groups and individually. On Kansas Day, Dillons managers were in the building meeting with legislators, as well. We are hearing rumors that some House leaders are very interested in pushing this bill forward. Terry Bruce, Senate Majority Leader, is quoted in the UnCork press release about the bill introduction (read here). And a liquor store owner from Manhattan has accompanied UnCork representatives meeting with legislators to share his interest in seeing the bill passed in order to provide a market in which he could sell his store. The first three weeks of the session have revealed an aggressive public relations and lobbying effort by the UnCork Coalition.

It is imperative that Kansas retailers carry the message of Kansas independent businesses to their legislators immediately. Ask what they are hearing and where they stand on the bill this year. Create an open conversation where your legislator can keep you informed what is happening in Topeka and you can be a resource on this issue and the many liquor bills that are rolling out this year.

Ohio: 3 indicted over Kroger liquor petition signatures

Sun, 25 Jan 2015 16:43:41 GMT

Source: The Columbus Dispatch

By Dean Narciso

Saturday January 24, 2015

A Delaware County grand jury has indicted three petition circulators accused of falsifying signatures on a Kroger liquor option last year.

The six-count indictment, returned yesterday, includes two felony charges each of election falsification and forgery against Felicia Dawson, 49; Shampayne Thompson, 26; and Tiffany Gaston, 38. The fifth-degree felonies are punishable by up to one year in prison and a $2,500 fine.

The women live in Columbus and were employed last fall by Strategy Network to go door to door and solicit signatures in support of a petition for the Polaris Kroger store to obtain a Sunday liquor license. As many as 34 of the required 113 signatures did not match signatures on file, said Josh Pedaline, director of the Delaware County Board of Elections. The women were paid $3 a signature.

The investigation included similar allegations against other Strategy Network workers in Union County, where only 181 of 432 signatures on two petitions were deemed valid for a Kroger Co. liquor option. Many of the signatures appeared similar in style, and some signers misspelled the names, elections officials said at the time.

Gary Wallace, Union County elections board director, said he was told by an investigator that that case is moving forward. No criminal charges have been filed.

Neither Kroger issue made it to the November ballot.

Ian James, Strategy Network's CEO, said he's been working with law enforcement in other counties but has no information about other criminal charges.

"When someone breaks the law, we work with law enforcement to fully prosecute them," James said. "They are not only breaking the law, but also ripping us off and ripping off our clients.

"We're not talking about a lot of money," he added. "If you're collecting 50 signatures and making $4 or even $5 a signature, why would you put yourself in legal jeopardy and a felony for $250? It's stunning to me that people think that they can break the law and not get caught."

James said he'll use the prosecutions as examples when hiring new petitioners. By state law, petitioners can't be felons.

Currently, the company has contracts with about 1,500 petitioners. It has obtained more than 5 million valid signatures in nearly 10 years, James said.

Governor Proposes Tax Increases on Liquor and Tobacco

Fri, 16 Jan 2015 17:22:49 GMT

The new budget plan released today by Governor Sam Brownback proposes consumption tax increases for cigarettes, tobacco products and liquor enforcement. Liquor enforcement tax is the 8 percent tax that is paid on all purchases at the retail liquor store. The proposal increases that tax to 12 percent. According to the Governor’s Budget Report, the last increase in the liquor enforcement tax was 1983, when it was increased from 4 percent to 8 percent.

The last increase on cigarette taxes was in 2003 when it was increased to 79 cents per pack. The tobacco products tax has remained at 10 percent of wholesale price since 1972. The new rates would be $2.29 per pack and 25 percent of wholesale price.

Thursday evening, Governor Sam Brownback delivered his State of the State address, declaring that Kansas recent tax policies have been successful and that he would stay the course toward achieving zero income tax in Kansas. Briefly addressing the State’s revenue deficit (projected to exceed $700 million in FY 15 and FY 16), the Governor laid the blame directly on increased expenditures for education. He recommended rewriting the school funding formula entirely and assured legislators that his proposed two year budget would balance, with revenues exceeding expenditures.

Friday morning, the Governor’s Budget Director Shawn Sullivan and former legislator, now Department of Revenue representative Richard Carlson delivered the budget proposal to a joint meeting of the Senate Ways and Means and House Appropriations Committees. Some legislators are not sure that the proposed tax plan actually lines up with the promises of the Governor’s speech, because it would revise the statutory scheduled income tax reductions. (Calling off these further reductions was a primary recommendation of the Paul Davis campaign for Governor.)

The current tax statutes are scheduled to decrease income tax rates progressively, then establish a cap on revenue growth of 2%, so that any additional revenues must be committed to tax reduction. Under the Governor’s proposal, there would be only one more scheduled rate reduction, reducing the lower income tax rate from 2.7% to 2.66% (paid by those who earn less than $15,000 a year if single or $30,000 a year if married). The 4.6% rate paid by higher earners would not change. It would also implement immediately the reduced value of home mortgage interest and property tax deductions to individual income taxes. (This “haircut” was part of last year’s tax bill, but was not scheduled to begin.) Revenue growth exceeding 102% would go into a budget stabilization fund (replacing the need for 7.5% ending balance) and growth exceeding 103% would go into a tax reduction fund. This is similar to the current policy designed to limit growth of government expenditure to 2%, but provides for a reserve budgetary fund before pursuing further tax reduction.

The session has only just begun, and legislators return next Tuesday after the Martin Luther King Jr. holiday to get started on real committee work. This week, most committees only held informational meetings or agency reports.

Uncork Kansas Pushing for Liquor Expansion - David Dillon to Lead the Effort

Mon, 12 Jan 2015 20:56:09 GMT

Another new year brings a new round of news coverage for the Uncork Kansas message. David Dillon, newly retired CEO of the Kroger grocery chain, has been named the new chair of Uncork Kansas and has been meeting with the press and legislators to promote changing Kansas laws to put strong beer wine and spirits into corporate retailers such as grocery and convenience stores. Read the article.

The 2015 version of the legislation has not yet been released, but Uncork representatives say that it will include expanding the sale of strong beer to any retailer who could currently qualify to sell cereal malt beverages and grant licenses to sell strong beer, wine and spirits to grocery stores. The proponents say that this proposal should gain more support because it will limit the number of liquor licenses in the state and those licenses would have to be purchased by the grocery store from a liquor store holding a current license thus giving some “value” to current license holders.

Liquor store owners point to studies that indicate expanding strong beer sales to 2000 to 3000 additional outlets would be devastating to current liquor stores as proof that this proposal will not provide any “value” for existing licenses. If current stores fail at the predicted rate of 40% or more, their licenses will likely become available for purchase for very little, or the Division of ABC will have to manage their allotment.

Uncork says their bill should be printed - or available to read - perhaps next week. It is anticipated that Mr. Dillon will come to Topeka to request its introduction.

There are many open questions: Will the bill be a true "one-strength beer" bill - eliminating 3.2 beer in Kansas altogether? Or will it allow current CMB retailers to choose whether or not to sell stronger beer? Will the bill attempt to raise more revenue for the State by increasing fees or taxes? The current State budget deficit is clearly the biggest issue facing the Legislature this session. So far, the proponents aren't saying.

Kansas Primary Election Results

Wed, 06 Aug 2014 21:37:00 GMT

Kansas primary elections were held on Tuesday, August 5. The primaries determine who will represent Democrat and Republican parties in the General Election November 4 – if there are candidates from more than one party on the ballot.

Most current legislators were able to retain their positions Tuesday, except for three legislators from the House of Representatives. In District 50, Rep. Josh Powell (R-Topeka) may have lost his position as the Republican nominee to Fred Patton. At this time, the difference is less than 50 votes and the race won’t be final until the provisional ballots are counted. The winner will face Chris Huntsman (D) in the general election.

In District 65, Rep. Allan Rothlisberg (R-Junction City) lost the nomination to Lonnie Clark, who will run against Tom Brungardt (D) in the general election. In District 93, Rep. Joe Edwards (R-Wichita) lost the nomination to John Whitmer, who will run against Sammy Flaharty (D) in the general election.

There were two State Senate races determined on Tuesday. Richard Wilborn (R-McPherson) will serve District 35 after winning a five-person primary race to replace Senator Clark Shultz, who ran for Insurance Commissioner. Former Rep. Marshall Christmann, R-Lyons, placed third in that race.

Molly Baumgardner, R-Louisburg, defeated Charlotte O’Hara (former Representative) to retain the senate seat for District 37. Baumgardner had been appointed to replace Senator Pat Apple, who was appointed to the Kansas Corporation Commission.

The top statewide office-holders were able to hold onto their Republican nominations, but many news outlets are suggesting that the vote counts were close enough to indicate some voter dissatisfaction with these incumbents. Governor Brownback / Lt. Gov. Jeff Colyer defeated Jennifer Winn with 63% of the vote. Congressman Mike Pompeo beat Todd Tiahrt with 63%. Senator Pat Roberts beat challenger Milton Wolf in a three-way race with only 48%. Congressman Tim Huelskamp beat his challenger with 55% of the vote.

For more information about the candidates, see the attached report which has several spreadsheets detailing the races – including primary results and general election information. It is color-coded, with the explanation in the first row.

Now is a great time to reach out and congratulate your local winners. If there is a general election pending, be sure to offer your support to friendly candidates through financial contributions, hosting fundraisers or meet-and-greet events, and posting campaign signs on your property.

For more information or to share information from your area, contact KABR by clicking here.

For more information, contact Amy by clicking here.

The Kansas Legislature Rejected Uncork in 2014 Help Us Say Thank You

Mon, 21 Jul 2014 20:57:25 GMT

It is officially election season in Kansas again, with the House of Representatives up for election, and all statewide offices as well as congressional representation. State Senators get to wait until 2016, unless the seat has opened up for one reason or another. As much as we would all like to sit back and watch politics from a distance, we will have to be active over the next few months.

How? Support those who support you. Plan now to be involved! Find out who is running and where they stand. Talk to the candidates directly. Make a decision today how much money you can contribute, where you can post signs, and watch for public forums to attend.

The Uncork / Big Box Liquor Bill was stalled in House committee again this year, showing no new progress. But the committee was closely divided. Some statehouse observers think this could be the election that will tilt the balance in the House of Representatives (or just the committee) to be more favorable to liquor deregulation. The Uncork group continues to repeat their mantra that “it is going to happen eventually”, and some people believe that. Kansas retailers must decide today to be active supporters of the policymakers who support our Kansas owned small businesses. Certainly, the Big Box group will be working to influence candidates in their favor.

When it comes to contributing to candidates, we encourage you to support your local candidates first. We will also pass on information to you regarding key state legislators who have chosen to stand up against the heavy pressure to expand liquor sales put forward from the corporate interests in the Capitol.

Please let us know when you participate by emailing campbell525@sbcglobal.net That way we can know if we are getting a response.

Expanded Liquor Sales Could Have Health Consequences

Fri, 20 Jun 2014 20:21:29 GMT

By Bryan Thompson
Kansas Public Radio
June 20, 2014

TOPEKA undefined Expanding liquor sales to grocery and convenience stores in Kansas could lead to more underage drinking, according to a new report from the Kansas Health Institute.

Document

Full Report: Potential Health Effects of Expanding Liquor Licenses to Grocery and Convenience Stores

Download .PDF

View Document

The report, called a health impact assessment, is designed to give policymakers information about the potential health consequences of expanded liquor sales.

KHI’s second statewide health impact assessment says allowing more outlets to sell alcohol may lead to increased consumption by underage drinkers. Tatiana Lin, who leads the institute’s health impact assessment work, said expanding liquor sales to grocery and convenience stores could make alcohol more available to teens wanting to try it.

“In convenience and grocery stores, there’s just not the same level of surveillance and enforcement that is in liquor stores,” Lin said.

Studies in other states indicate it’s easier for young people to steal alcohol when sales are expanded beyond liquor stores, she said.

Document

Executive Summary: Potential Health Effects of Expanding Liquor Licenses to Grocery and Convenience Stores

Download .PDF

View Document

Tom Palace, executive director of the Petroleum Marketers and Convenience Store Association of Kansas, said enforcing laws already on the books is the way to prevent underage drinking. He said consumers want to be able to buy liquor at grocery and convenience stores, which already sell beer, lottery tickets and tobacco products.

“The consumer wants to buy these products because it’s more convenient,” Palace said. “You have competition in the market, and when you have competition the consumer wins.”

Health concerns aside, most of the opposition to expanded liquor sales is coming from people who want to protect liquor retailers from competition, Palace said.

A bill that would have allowed liquor sales in grocery and convenience stores was introduced during the 2014 session but died in committee.

The health impact assessment analyzed eight health issues related to the bill: alcohol consumption, youth alcohol consumption, driving under the influence (DUI) arrests, alcohol-related traffic accidents, alcohol-related traffic deaths, alcohol-related traffic deaths among youth, crime and sexually transmitted diseases.

According to the report, expanded liquor sales may cause a slight increase in overall consumer consumption, but that is not likely to result in a higher number of DUI arrests or alcohol-related traffic accidents. However, there may be a slight increase in some types of crime - such as domestic child abuse and violence - and in STDs.

The report includes recommendations to counter these effects, including limits on days and hours of alcohol sales, increased sobriety checkpoints and stronger enforcement of laws prohibiting alcohol sales to underage customers.

The Kansas Health Institute is the parent organization of the editorially independent KHI News Service.

The KHI News Service is an editorially independent initiative of the Kansas Health Institute. It is supported in part by a variety of underwriters. The News Service is committed to timely, objective and in-depth coverage of health issues and the policy-making environment. All News Service stories and photos may be republished at no cost with proper attribution, including a link back to KHI.org when a story is reposted online. An automatically updated feed of headlines and more from KHI can be included on your website using the KHI widget. More about the News Service at khi.org/newsservice or contact us at (785) 233-5443.

Kansas Legislature Grinding Toward Adjournment

Sat, 03 May 2014 01:52:30 GMT

Although the Senate passed the necessary budget bill this morning, the House just began its budget bill at 9:10 p.m. They are expected to wrap it up tonight. The Senate has basically wrapped up its heavy lifting, although they must wait for the House to act on the tax conference bills before they can finish.

The House is grinding at a tortuous pace. They meet to vote on a few items, then break for up to an hour to caucus to discuss two or three conference committee reports at a time.

Perhaps the most lively action of the day was when Rep. Dan Hawkins made a motion to concur on HB 2463 - a major tax bill that is being crafted by the Tax Conference Committee. He did so because the Conference Committee was planning to drop the Senate's proposed measure to give private non-profit health clubs the same tax exemptions as are enjoyed by the non-profit health clubs, such as the YMCA/YWCA. (They are exempt from property taxes and from sales taxes.)

For their part, the YMCA/YWCA clubs argue that they provide much more than just health club services to the public, and the for-profit clubs would not be required to provide any reduced fees to low income citizens or other services. House Tax Chairman Richard Carlson, R-St. Marys, argued that it was a slippery slope, since many for-profit businesses compete against non-profits, such as golf courses, hospitals,

But journalists really sat up when Rep. John Edmonds, R-Great Bend, called out the campaign contributions made by the owner of Genesis health clubs to key senators, listing the amount of the contributions - without mentioning any names. He said he was ashamed that most were from his own party and called the process "highly suspect". Ultimately, the motion failed by a huge margin. The Conference Committee Report on HB 2463 will return later tonight to the House as a Tax mega-bill including changes to machinery & equipment property tax valuations, the Ashgrove cement company M & E tax change, a phase-out version of the repeal of the Mortgage Application Fee, and a motor vehicle fee exemption for the military. The Tax Conference Committee has been firm about not adopting any measures that would reduce receipts to the state general fund, but these are all items that affect local government revenues. Read the notes.

Rep. Paul Davis, D-Lawrence, gave a touching good-by speech this evening, thanking his family and his peers for their support over the past 12 years in the Legislature (6 years as House minority leader) and indicated he hoped to be back with a role on second floor. (He is running for Governor.)

Other extremely important issues being resolved today? CCR on SB 357 = right of first refusal on deer antlers. CCR on HB 2051 - exempting Kansas from Federal conservation efforts for the Lesser Prairie Chicken.

Kansas Legislature will Adjourn - Big Box Liquor is Out of Time

Fri, 02 May 2014 18:35:20 GMT

When the Legislature convened for Veto Session on Wednesday, April 30, the Appropriations Committee wasted no time in creating a budget bill. The committee adopted the consensus caseloads, adopted the Governor's Budget Amendments (GBAs), adopted some of the omnibus funding items associated with legislation that has already passed the Legislature, dumped the contents into a Senate bill and the race was on.

The normal legislative process would have led to staff cranking out multiple pages of statistics, combined costs, and ending balances. Then, perhaps by Friday, the full House would consider the budget bill. But this is certainly not a year for normal legislative process. There has been no further action to create a House budget bill - instead, House conferees moved directly into negotiating with the Senate over the Senate's budget bill.

Senate Ways and Means had already adopted the consensus caseloads over the legislative break. Also, the Senate had already passed a "mega-budget bill" during the regular session under a House bill number, so it was ready for conference committee. Typically, SWM would meet again to create an omnibus budget bill. Not this year.

Since the House was willing to bypass developing its own budget bill - the Legislature was in the amazing position of being able to create a budget bill in conference and possibly adjourn by late Friday. Tax, Health, and other conference committees got to work quickly with a new shorter deadline in mind.

When the news broke that Kansas April revenues came in short $92 million, many thought that would throw a big wrench in the proceedings - but there was no delay. Read about April revenue shortfall here.

There are other issues pending before the Legislature, but none are absolutely necessary to accomplish before adjourning. Even though the Legislature has ten days set aside for its veto session this year, it is apparent that the leadership planned to wrap this up as soon as possible. So, the major tax proposals, anti-common core bills, or anti-renewable portfolio standards bills had to be ready by today.

There were no further meetings of the Commerce Committee to consider the Big Box Liquor bill.

Other issues that ran out of time? The anti-common core proposal and anti-green energy standards bill failed their attempts at passage today - again.

HB 2223 Amends Liquor Control Act

Mon, 21 Apr 2014 16:25:15 GMT

The Governor signed HB 2223 April 18.

HB 2223 began in the House of Representatives as the Homebrewer’s Bill, and was amended by the Senate Federal and State Affairs Committee on March 20 to become the 2014 “micro-mega liquor bill”. This bill includes the few Liquor Control Act items that have been headed for passage this session. The bill legalizes sharing homemade beer with personal guests and judges at a competition - as long as there are no sales of the home brewed product.

The bill includes the contents of SB 346, a bill requested by Kansas Microbreweries to raise their annual production cap from 15,000 barrels to 30,000 barrels.

Additionally, a clause to amend the citizenship requirement for liquor licenses was added. The House Federal and State Affairs Committee held hearings on this issue and adopted the change in HB 2196 and added it to SB 346 as well. Current law requires applicants for all forms of liquor licenses to be a U.S. citizen for ten years. Applicants may now qualify if they are currently a U.S. citizen.

Finally, the Senate Federal and State Affairs added a section to clarify that Kansas farm wineries are permitted to participate in consumer tastings at liquor stores as a supplier.

Because HB 2223 has passed the House and the Senate, it is now eligible for conference committee between representatives of the House and Senate Federal and State Affairs committees. The House could also choose to simply concur with the Senate amendment to HB 2223 and the bill would be adopted.

With its passage, it is no longer necessary for the full House of Representatives to debate SB 346 or HB 2196. Members may remember that House Federal and State Affairs adopted a bill February 14 (HB 2196) that reduces the current 10 year citizenship rule for licensing to simply being a U.S. citizen. 2196 also includes the amendment to open up retailer licenses to unlimited numbers.

Powdered Alcohol is Coming Your Way Liquor.com

Mon, 21 Apr 2014 14:26:05 GMT

Yeah, yeah, we know what you're thinking: This can't possibly be real, right?

Wrong.

This week, the U.S. Alcohol and Tobacco Tax and Trade Bureau approved Palcohol, an alcoholic powder that comes in four highly questionable flavors: Cosmopolitan, Powderita (it "tastes just like a Margarita") Lemon Drop and Mojito (in case you really hate muddling mint that much).

Why, you ask? Well, as Palcohol's website states, this super-handy new product is "a great convenience for the person on the go. One package weighs about an ounce and is small enough to fit into any pocket."

So if your bottle of single malt Scotch or fancy gin proves to be too much of an inconvenience to you, all you have to do is add a packet of Powderita to your water bottle, shake and you've got a cocktailundefinedno bulky bottle of tequila necessary.

And our personal favorite use of Palcohol isn't the easy drink on-the-go philosophy; it's the possibility of adding a kick to our favorite foods. The company suggests "adding Powderita powder to guacamole, Cosmopolitan powder on a salad, V in a vodka sauce, etc." The possibilities are endless.

Of course, many concerns have been raised about the snort-ability of alcohol in powdered form, which is a disturbing thought indeedundefinedespecially considering most of Palcohol's products are about 55 to 65 percent ABV. But the company claims to have added enough volume to the powder that it would "take more than a half of a cup of powder to get the equivalent of one drink up your nose."

So there you have it. Read more about the powdered drink, which is expected to hit liquor store shelves later this year, at Palcohol.com.

- See more at: http://drinkwire.liquor.com/post/powdered-alcohol-is-coming-your-way-just-add-water#sthash.hxqRztzU.dpuf

The House will Concur with the Senate Sub for HB 2223

Wed, 02 Apr 2014 19:13:33 GMT

2014 may claim the shortest conference committee on a liquor bill. Today, the Federal and State Affairs conference committee met and discussed the Senate's additions to HB 2223 - originally the House bill to assist Kansas home brewers.

After going over the contents of the bill, House Chairman Steve Brunk asked two questions - When a farm winery hosts a tasting in a liquor store, does the product have to be sold by the liquor store? Yes. When the Senate amended the citizenship provision of the Liquor Control Act, did you make any changes to residency? No. The House committee members - Brunk, Couture-Lovelady, and Ruiz - conferred for a few seconds and then agreed to the changes.

The House will vote on a motion to concur on Sub for HB 2223 to accept the bill as amended by the Senate Committee of the Whole.

The bill is described at http://kansasretailer.org. Don't hesitate to contact us if you have any questions.

Chairman indicates Big Box Bill is Out of Time for Now

Tue, 01 Apr 2014 22:08:17 GMT

The House Commerce Committee Chair, Rep. Marvin Kleeb, has indicated that the committee is unlikely to be able to find time to meet again this session to finish its debate on HB 2556. This means the Big Box Bill is out of time.

We will continue to watch the Legislature closely and report if there is any effort to resurrect the bill. Legislative Committees were supposed to wrap up their work on bills last week. This week, the Legislature is focused on the development and passage of House and Senate K-12 bills in response to the education funding inequity decision by the Kansas Supreme Court on March 7. Conference committees are also meeting throughout each day to resolve differences between House and Senate bills and have them approved by each chamber once again. The conference committee on HB 2223 meets Wednesday - see article.

"Drop Dead Day" is April 4 - the deadline for bills to be passed in the regular session. The Legislature will adjourn for their spring break - when the Governor reviews and signs bills - and will return for the veto session on April 30. The 2014 Legislative Session is scheduled to wrap up May 15.

The work on the education bill has made it difficult for the Commerce Committee to find time to meet. The Chair and Vice Chair of Commerce are now leading the House Appropriations Committee effort. Yesterday, Rep. Marc Rhoades quit as Chair of the House Appropriations Committee over disagreement with the Speaker re: education funding proposal. Appropriations is considered the most powerful committee in the House of Representatives.

As a result, Rep. Gene Suellentrop moved into the Chair position and Rep. Marvin Kleeb was appointed vice-chair. The Appropriations Committee met most of the morning and part of the afternoon hearing public testimony on the new House proposal to resolve the K-12 education funding inequity cited by the Kansas Supreme Court in their decision March 7.

Meanwhile, Chairman Kleeb is also knee-deep in conference committees with the Senate on – among other things – a judiciary bill to increase the maximum cap on non-economic damages for medical malpractice suits.

The Chairman has said that he is under a great deal of pressure to work the Big Box Liquor bill this session. It is unclear if that pressure stems from the proponents’ lobbying corps, legislators or public grassroots communication.

We have spent hours tracking down one rumor after another, but can find no evidence that there are enough “yes” votes on the Commerce Committee to pass HB 2556, even in its substitute form.

We will continue to monitor the committee and halltalk in case there is a last minute effort to move forward.

Kansas Senate Passes HB 2223 on March 24

Tue, 25 Mar 2014 03:41:02 GMT

The bill includes the contents of SB 346, a bill requested by Kansas Microbreweries to raise their annual production cap from 15,000 barrels to 30,000 barrels.

Finally, the Senate Federal and State Affairs added a section to clarify that Kansas farm wineries are permitted to participate in consumer tastings at liquor stores as a supplier.

Debate on Substitute Big Box Liquor Bill to continue March 25

Tue, 25 Mar 2014 03:38:16 GMT

The House Commerce Committee Chair, Rep. Marvin Kleeb, has indicated that his committee is likely to finish its debate on HB 2556 on Tuesday, March 25. The Committee typically meets at 1:30 p.m. The Legislature has now passed the deadline for committees to work bills - but HB 2556 is an exempt bill.

Read the substitute proposal for HB 2556 here.

(March 19) The Commerce Committee received copies of the new substitute bill as proposed by Chairman Marvin Kleeb - March 6. The Committee debated the substitute proposal on Wednesday, March 19, then ran out of time before considering other amendments. Click here for the notes of the full discussion.

It is a very different bill, with some interesting new elements - including wine licenses, strong beer licenses, a temporary cap on full liquor sales licenses and license perimeter restrictions. Amy Campbell, KABR lobbyist, was asked to speak briefly to the committee - commending the new proposal for attempting to create a ten year transition and a true effort to create some value for the current Kansas retailers' investments. None of the original Uncork bills have included these measures as advertised. She also expressed concern about where the proposal comes up short. The committee discussion highlighted a great deal of confusion.

Tom Palace, Petroleum Marketers and Convenience Stores Association, spoke for the Uncork Coalition.

The debate was nearly sidetracked when the Vice Chair made a motion to adopt the proposed substitute language. It nearly failed, with a tie vote at 7-7. The Chairman had to break the tie, voting yes.

(NOTE: This is typically just a procedural vote to allow for debate, but committee members seemed to see this as a chance to avoid further work on this bill and attempted to deny the motion. One committee member had left the room at that point.)

The Committee skipped its announced hearing on SB 203 from 2013. (Link to SB 203) That bill includes provisions that were passed in 2013, and also has a citizenship section. As a senate bill, it is an attractive vehicle for anything the House might like to pass and potentially bypass Senate committee consideration.

Public Hearing on HB 2556 was Standing Room Only

Wed, 19 Feb 2014 17:19:48 GMT

H2556 – Big Box Liquor Bill Hearing Notes – February 19, 2014

Good turnout today from retailers. Much smaller turnout for the Big Box / grocery / convenience store group. Thanks to all who came. As we know from experience, the next week or so will be key - the Committee could vote on the bill as early as next Monday. But the Committee appears to have a full schedule that day.

On the other hand, some legislators suggest that there may not be an appetite to work this bill – it is an election year after all. But there are a couple of legislators on this committee who genuinely favor the concept and may push it forward.

Communicate with your legislators immediately – you can share some of the information put forward today. For instance – the2013 Public Survey indicating that Kansans do not support the deregulation of liquor/sale in grocery and convenience stores. Communicate with the Commerce Committee. Remember – always be professional and courteous. And let us know if you need assistance. Take advantage of the hotline – 1-866-519-2200 during office hours.

We know from experience that one-on-one conversations of citizens and their legislators are the most effective way to continue to defeat these bad bills. Read More...

House Committee amends Citizenship Bill to Change Retail License Rules - Multiple Licenses

Fri, 14 Feb 2014 23:27:18 GMT

Today, the House Federal and State Affairs committee radically altered HB 2196 and passed it. The intention of the underlying bill was to reduce citizenship requirements for distributors. This morning, committee members adopted an amendment to allow retailers to own an unlimited number of retail liquor stores.

Rep. J.R. Claeys (R-Salina) called his amendment pro-America and pro-jobs. The amendment was not made public prior to the committee meeting this morning, and there was no public hearing on the issue.

Since this was a new issue and had not been a part of the public hearing on HB 2196, the Chairman Steve Brunk (R-Wichita) said he was interested in hearing from people in the audience who wanted to comment. Amy Campbell, lobbyist for the Kansas Association of Beverage Retailers, was present and offered comments.

The issue of single licenses for retailers is not about commercial enterprise, it is about regulation. One of the strongest lessons from prohibition was that control of the marketplace for alcoholic liquor by one or a few interests results in regulatory problems. It is detrimental to public health and safety. So, an effective and efficient method of regulating alcoholic liquor is to require single ownership – single outlets. There are many states besides Kansas who use this system. In fact, many of the states that actually allow corporate / grocery sales of alcohol only allow a single license. Colorado is an example of that.

This amendment is a major restructuring / major policy change for the liquor control act. It is significant and should have its own bill and its own public hearing. There a many policy questions that should be reviewed – would it allow mingling inventory? Joint warehousing? Single point of delivery and payment? Could the locations share employees? What does it mean for volume discounting?

It has been said that we are using an artificial method of multiple licensing by allowing individuals’ spouses or adult children to own liquor stores. I want to point out that it would be illegal to just put someone’s name on the license. The individual must be engaged in the business, pay for the product, etc. Kansas has cited cases in the past where the ownership was artificial. This assures that the State has someone who is directly responsible for the license, for the sale of alcoholic liquor.

This requires a different level of enforcement and regulation. Investigators have to be able to review invoices and trace transactions, etc.

Said that a letter had been sent to all of the retailers in the state last week saying that the retail liquor lobbyists in Topeka didn’t care about small stores and only cared about the biggest liquor stores. Wanted to state clearly that this bill will have a definite impact on the smallest stores, and they should have an opportunity to weigh in on this bill through a public hearing and testimony.

Stated that KABR does not have a position on this issue – it was just dropped in this meeting with no opportunity for review or input. Stated that there would be some retailer who would appreciate owning multiple stores and some who would definitely oppose the change because of the changes it would make in the marketplace.

There were a lot of questions. Mostly about whether or not the inventory questions could be resolved in rule and regulation.

Rep. Claeys stated that he had no intention of affecting any other rules of how the stores were operated and would not suggest changing the inventory or other rules.

ABC Director Dean Reynoldson also took questions. When asked if they knew this amendment was coming, he said they had heard about it. When asked if they could handle the details through rules and regs, he said that the more direction they could receive from the Legislature, the better it would be. Trying to develop rules and regulations when intent isn’t clear creates debates within the industry about how the rules were supposed to be written. He said that he didn’t expect the change to cost the state any additional money and didn’t expect it would gain any additional money although there might be some additional licenses.

Tom Palace, lobbyist for the Petroleum Marketers and Convenience Stores Association, stood up and asked to comment. He said that he is a liquor store owner himself and he would support the change to bring Kansas into the 21^st century. Also said that he would support allowing corporations to own the licenses as well.

Rep. Houser (R-Columbus) stated that he wanted to support the underlying bill, because it was simple and addressed citizenship, but could not support the amendment when it was such a major change and no one had the chance to testify on it.

Rep. Ruiz (D-Kansas City) agreed and said he would also vote against it.

The amendment passed 14-8 – Campbell, Claeys, Concannon, Couture-Lovelady, Erin Davis, Dove, Estes, Ghandi, Hildebrand, Perry, Petty, Read, Rothlisberg, Waymaster.

No votes – Esau, Ewy, Henderson, Houser, Ruiz, Tietze, Victors, Winn

After the amendment was adopted, Rep. Couture-Lovelady made the motion to pass the bill as amended favorably – it passed 15-7.

There are many unintended consequences from this proposal that we haven’t had time to research, although there are some opportunities as well. Obviously, it would increase the buying power and market presence of some retailers. It could attract chain liquor stores from other states who would simply need to create a Kansas LLC to jump into the market here – along with jumping through a few other hoops.

Please thank the following Representatives for not voting to pass major legislation without public input. Simply click on their names to link with their contact information.

Rep. Keith Esau
Rep. John Ewy
Rep. Broderick Henderson
Rep. Michael Houser
Rep. Louis Ruiz (ranking minority member)
Rep. Annie Tietze
Rep. Ponka-We Victors
Rep. Troy Waymaster
Rep. Valdenia Winn

You could also thank Chairman Steve Brunk who gave us a chance to at least comment. As Chairman, he does not vote unless there is a tie.

Steve.Brunk@house.ks.gov

Uncork Kansas is sending misleading letters to Kansas Retailers

Fri, 14 Feb 2014 20:15:34 GMT

Uncork Kansas is advertising their new bill as one that accommodates the needs of liquor store owners by stretching expansion of strong beer, wine and spirits into the grocery stores and convenience store shelves over a ten year period of time. The bill caps class C licenses, but that is a FAKE CAP. There is no limit on the number of new STRONG BEER licenses and BEER AND WINE licenses in the bill. Retailers have received two misleading letters.

Uncork Kansas tells liquor store owners they are doing a better job of trying to help small liquor stores than the liquor lobbyists in Topeka – and they ask store owners to join their effort. We know that the bill written by the big box stores does not create fair competition for Kansas owned liquor stores. But their letter sounds like a good deal. Don’t buy it.

Are they serious?

Uncork Kansas says their effort to change liquor laws in Kansas has “created for some the faulty perception that we don’t care about you, the liquor store owner.” According to their letter, they care so much that they are advocating a license freeze. Their “freeze” only affects beer, wine and spirits licenses, allowing hundreds or thousands of new strong beer licenses in three years and the same number of strong beer/wine licenses in six years. Plus, it allows corporate big box stores – and everyone else – to sell strong beer, wine and spirits by purchasing a license in one year. You, however, won’t be allowed to put other products in your store until much later (2020).

They argue that the liquor lobbyists are “actually more vested in the best interests of only a select few, not the entire body of Kansas liquor store owners.” What is their evidence? They attach a list of members of the Kansas Association for Responsible Liquor laws – and print in bold across the top: Who does the liquor lobby represent? Only the most profitable liquor stores in the most populated areas of KS. They got one thing right - KARLL IS a small association recently created to link some of the larger stores in Kansas.

They conveniently ignore – or completely dismiss - the KANSAS ASSOCIATION OF BEVERAGE RETAILERS – the statewide association created BY liquor store owners FOR liquor store owners 65 years ago. That is odd, since our lobbyist met with the Kroger/Dillons president and lobbyist a couple of days before this letter appeared in retailers mailboxes. KABR has been successfully fighting this kind of le gislation for decades.

Even more insulting – the letter claims that “Liquor store owners are ready to sell their business. Yet they’re stuck because no one is interested in buying a liquor store when question loom over how the Kansas legislature will respond to continued efforts to modernize liquor laws.” It is the looming threat of Uncork legislation that discourages some people from buying a liquor store…. So, their answer is to pass the very legislation that threatens the profitability of an independent liquor store? Are we really supposed to believe that a grocery store will offer us more money to get out of the business than an entrepreneur who wants to buy a healthy retail store now? They talk about expansion - are we supposed to believe that a bank is more likely to loan money to a small store for expansion AFTER the Big Box Liquor Bill is passed?

KABR represents approximately 200 - 225 liquor stores from across the state. This number goes up and down year by year, but it always includes some of the smallest liquor stores from some of the smallest towns in Kansas, as well as many of the largest stores. KABR is not giving up on the current Kansas retail liquor marketplace. It is already privatized, already competitive, and provides a good balance of free enterprise and regulation of an adult-only product. This is what is best for Kansas and for Kansans.

We will continue to represent the best interests of our members – the Kansas owned liquor stores.

Wichita Legislative Forum January 8

Tue, 07 Jan 2014 18:05:52 GMT

Wichita area legislators will be participating in a public forum Wednesday evening. Please attend if you can. KABR has two issues of concern – (1) our continuing concern about the Big Box Liquor bills, we hear there will be new proposals introduced this session and we hope legislators will consult with their local licensed retailers about the impact on the community and loss of jobs before they vote on them. And (2) we are concerned about the reduced manpower and budget at the Division of ABC. It has affected their ability to effectively enforce the liquor laws and respond to licensee needs and concerns. Short and sweet! Retailers who attend should be sure to hang around and say hello to their legislators – or get there early enough to catch them in the halls ahead of time. Every time your legislators see that you are engaged, it makes an impression.

Town Hall Legislative Event
Wednesday, January 8, 2014
7:30 PM***, generally last 1 hour
at the Sedgwick County Courthouse, corner of Main and Central.

*** Arrive early to sign in to speak and get a seat. If you want to speak-- sign up early as they only allow so many and the list fills quickly.

Legislation adopted by Wisconsin seeks to deter Underage Purchasers

Mon, 30 Dec 2013 17:41:39 GMT

One of the frustrating parts of being a licensed retailer of alcoholic beverages can be the unequal enforcement of state laws designed to prevent illegal sales. In many jurisdictions, prosecutors penalize licensed retailers, but are less likely to follow through with charges against those who break the law by trying to illegally purchase beer, wine and spirits. This leaves somes business owners feeling that they don't have the support they need when trying to deter young people who are motivated and sometimes very creative in their efforts to get alcohol.

A new law adopted by Wisconsin is attempting to alter that equation - according to a LaCrosse Tribune news article:

Getting busted for underage drinking in Wisconsin just got a bit more expensive.

A measure known as the Brown Jug Bill was signed into law Thursday by Gov. Scott Walker, giving bar owners and other establishments that sell alcoholic beverages the ability to report underage drinkers to the police and then take them to court.

The underage drinker would then be required to pay the business owner $1,000 if found guilty. The fine would be in addition to the $250 to $1,000 underage drinking fine an individual would receive from law enforcement. Read the article from the LaCrosse Tribune.

Holiday safety…the retailers role

Fri, 13 Dec 2013 22:21:54 GMT

During this holiday season we ask all of our alcohol retailers to remember the important role they have in keeping us safe. We ask them to actively comply with all alcohol regulations with renewed efforts at staff training to ensure compliance. We rely on them to refuse sales to minors and intoxicated patrons. Read more from Healthy Alcohol Marketplace…

Kansas Legislature will have two new members for the Special Session and two more in January 2014

Sun, 18 Aug 2013 19:35:00 GMT

Governor Brownback issued a proclamation August 6 to formally order a Special Session of the Legislature to begin at 8 a.m. September 3rd and end at 5 p.m. September 5th. The Governor's goal is to have a quick session to deal with a specific issue plus confirmation of some gubernatorial appointees, including a new member of the Kansas Court of Appeals.

The Special Session was requested by Attorney General Derek Schmidt to address the recent U.S. Supreme Court ruling that holds some parts of Kansas Hard 50 Sentencing statutes unconstitutional.

The House will have two new members: Bud Estes, R-Dodge City, who replaces Rep. Brian Weber who resigned to spend more time with his family and business; and Mike Kiegerl, R-Olathe, a former legislator who was elected to replace Rep. Arlen Siegfreid who resigned when he was appointed by Governor Brownback to serve as the Chief Hearing Officer for the Kansas Board of Tax Appeals.

Two additional new members will join the House in January 2014, replacing Rep. Bob Grant, D-Frontenac, and Rep. Nile Dillmore, D-Wichita, both are retiring.

Grocers Launch Public Campaign for Wine Legislation (Tennessee)

Fri, 09 Aug 2013 19:44:32 GMT

Aug 6, 2013 By Samantha Hearn | The Tennessean

Tennesseans can tell their legislators they want wine in grocery stores through the Red White and Food campaign, a coalition established by Kroger and the Tennessee Grocer's Association that's setting up postcard stands in stores all over the state.

"The legislators say that they hear from their constituents on this issue consistently," said Emily Ogden of Red White and Food. "There's broad support for this."

During the 2013 legislative session, Sen. Bill Ketron and Rep. John Lundberg called for a referendum that would allow Tennesseans to vote on the issue. The bill did not pass, but Red White and Food pushed the legislation further.

Two committees in the Senate did vote to pass the bill, taking it further than it has ever gone -- and leaving proponents optimistic about the 2014 legislative session.

"This is an issue that people actually pay attention to," said Melissa Eads, Community Affairs Manager for Kroger's mid-south division. "The difference with it being a local referendum is that people would be able to vote on it, so if you have communities that don't want to have it then they can vote not to have it."

Wish Wine Were Here, the kickoff event for the campaign, happened Tuesday at Green Hills Kroger, giving customers the opportunity to fill out postcards as they shopped.

"All the research that's been done shows that close to 70 percent of Tennesseans want this," said Eads.

Those in the local liquor store industry see the referendum differently, as a threat to small businesses. Read more..

Wal-Mart Stacking Beer in the Aisles to Double Alcohol Sales

Thu, 08 Aug 2013 19:32:40 GMT

By Renee Dudley - 2013-08-08

Last September, 500 representatives from the alcohol industry gathered at the Sam’s Club auditorium in Bentonville, for an “adult beverage summit.” Wal-Mart Stores Inc. has focused as never before on beer - a U.S. category worth about $45 billion - and has moved aggressively to grab market share.

Attendees, some of whom had never been to Wal-Mart Stores Inc.’s headquarters, learned how serious the retailer was about selling more alcohol. Executives, who included Chief Merchandising Officer Duncan Mac Naughton, told the gathering they wanted to double sales by 2016.

In the year since, the world’s largest retailer has focused as never before on beer -- a U.S. category worth about $45 billion -- and has moved aggressively to grab market share. The company has doubled the number of alcohol buyers to 12 and offered discounts on a range of brands, from mainstream Coors to such craft beers as Deschutes. It ditched slow-selling products to make way for beer and is even selling it in garden centers. New stores are designed to put the suds front and center. Read more..

Wal-Mart's New Goal: Sell All the Beer

Thu, 08 Aug 2013 19:29:12 GMT

By Susan Berfield

August 08, 2013

When Wal-Mart (WMT) began buying a greater number of locally grown fruits and vegetables in 2010, it made sure its efforts got plenty of publicity. But when Walmart decided it wanted to double its alcohol sales by 2016, it didn’t exactly issue a press release.

Customers noticed, and those in the alcohol industry—or, as Walmart prefers, the adult beverage business—certainly took note of the change. “They’ve said they want to be the No. 1 beer seller in the world,” Cameron Smith, the president of an executive search firm that works closely with Walmart’s supplier network, told Bloomberg News. Read more..

Kansas City Retailers Conference and Legislative Luncheon

Thu, 01 Aug 2013 15:40:39 GMT

Kansas Retailers will meet at the Legends August 24 and 25 for the KABR Conference and Legislative Luncheon. This is a key opportunity for retailers to meet with one another and Kansas legislators to discuss the latest news relating to Kansas liquor laws. While many members like to attend for the information - the legislative luncheon is an opportunity to share information with Kansas legislators and show our appreciation for their support of Kansas owned retail liquor stores. View details. Register today.

Arlen Siegfreid - Former Legislator begins as Chief Hearing Officer for Tax Court

Tue, 02 Jul 2013 19:24:22 GMT

Posted: July 2, 2013 - 12:18pm

By Andy Marso and The Associated Press

A veteran Kansas House member has given up his seat to take a top staff position at the state court that reviews tax disputes.

Former Rep. Arlen Siegfreid began work Tuesday as the chief hearing officer for the Kansas Court of Tax Appeals, the same day the Olathe Republican’s resignation from the Legislature was effective.

“It’s with more than a twinge of sadness that I leave the Legislature," Siegfreid said during a confirmation hearing Monday.

He was appointed to the job by Gov. Sam Brownback, and a Senate committee approved his appointment Monday. Siegfreid still must be confirmed by the full Senate next year.

The 66-year-old Siegfreid was first elected to the House in 2002, and he was majority leader in 2011 and 2012. He served on the House Taxation Committee for nine years. Read more..

Legislators Gavel Out with Bipartisan Tones - Rep. Brian Weber resigns

Mon, 03 Jun 2013 11:13:14 GMT

Rep. Brian Weber, R-Dodge City, with his wife and child by his side, announced to those gathered in the Kansas House Thursday, that he had decided to resign after three sessions to focus on his business and family.

By Andy Marso

andy.marso@cjonline.com

Rep. Brian Weber, R-Dodge City, held his infant daughter in one arm while he placed his other hand over his heart and led the House in the pledge of allegiance one last time in 2013.

Then he stepped down from the podium and accepted a hearty handshake from House Minority Leader Paul Davis, D-Lawrence.

Minutes later House Speaker Ray Merrick, R-Stilwell, adjourned the House sine die, but not before a session marked by conservative majorities passing bills over the objections of Democrats ended with tones of bipartisan goodwill in the House.

Much of that centered on Weber, who decided to resign after three sessions to focus on his business and family. Read more.

Kansas Legislature Wraps Up on 99th Day

Sun, 02 Jun 2013 07:22:58 GMT

After adopting the one and only budget bill of the 2013 Legislative Session, the Kansas Senate adjourned around 2:00 a.m. - a few minutes ago. Although June 2nd would technically be the 100th day, it counts as 99 since they worked straight through from Saturday, June 1st.

Both the House and Senate had to have a Call to adopt the one and only budget bill of the 2013 session, where the doors are locked and everyone is supposed to report to the chamber to vote, while hesitant legislators are cajoled and/or more forcefully convinced to vote for the bill at hand. Each chamber was then able to manage to get just the majority needed to pass the bill - House Substitute for SB 171. In the House, the vote was 63-51. In the Senate, 21-15. No Democrats supported the bill.

It is an ugly budget - every legislator could easily name at least one objectionable facet of the bill. The items that garnered the most attention were cuts to higher education - the Regents Institutions, cuts to the Department of Corrections that one senator suggested would create a "catch and release" policy, large sweeps of funds from Transportation and other agencies - including $9.5 million from tobacco dollars that are supposed to be earmarked for children's programs, and the fact that the budget bill did not include a carveout for the long term services and supports for intellectually and developmentally disabled populations from KanCare. $202 million in additional bonding debt was included over the protests of many legislators, to fund a larger than expected state share of the NBAF project in Manhattan.

The policy that may end up having the most impact is a House created salaries and wages cap based on funding spent up to March of this fiscal year. That policy is certain to prevent agencies - such as Division of ABC - from being able to fill important staff positions that have been held open to hold down expenses. Some of these positions have been unfilled for months or years now.

See budget bill description here.

The final Tax Bill, HB 2059, which passed the House 69-45, did not seem much different than the three proposals shot down by the House in the preceding weeks. The House ultimately gave in to the Senate and Governor's preference to extend most of the sales tax hike that was instituted as a temporary measure in 2009. That 1 cent sales tax hike was put in place to address the dramatic loss of state revenues during the economic downturn of that time and was scheduled to have .6 cents drop off this year (retaining .4 cents for the state highway fund).

The House had put up a fight - arguing that most, if not all of the sales tax should be allowed to expire and that failing to do that would be going back opn a promise to the Kansas voters. Governor Brownback and Senate President Susan Wagle argued that the sales tax extension is necessary to pay for the major tax policy that was passed last session in HB 2117 - eliminating income taxes for most small businesses, and crucial to furthering the administration's objective to move Kansas toward a no-income tax state policy. It also includes other "pay-fors" such as reducing certain tax exemptions. The bill passed the Senate 24-13. Again, no Democrats supported the bill - and warned their Republican colleagues that it was a $769 million tax increase. Supporters claim that, if you include the costs of the 2012 Tax legislation HB 2117, it is an overall tax decrease.

The final bill brings the state sales tax rate down a bit, from 6.3% to 6.15%. It did not include the further reduction of sales tax on food - an idea that was part of a couple of earlier options that failed to pass the House. Perhaps the most noticeable impact on tax filers is the setting the Kansas standard deduction levels for married taxpayers filing jointly and for single heads-of-household at $7,500 and $5,500 respectively, beginning in tax year 2013. Legislation enacted in 2012 had raised both standard deduction levels (from $6,000 for married joint and $4,500 for heads of household) to $9,000. The battles over itemized deductions, such as the property tax deduction and others, had mixed results. Charitable deductions are preserved. But most other itemized deductions are reduced by 30% in 2013; 35% in 2014, 40% in 2015, 45 % in 2016, and 50% in 2017 and thereafter. The bill includes a section to repeal deductions for gambling losses.

A new series of individual income tax rate cuts would be provided beginning in tax year 2014, when the current bottom bracket of 3 % is reduced to 2.7 %, and the current top bracket of 4.9 % is reduced to 4.8 %. In tax year 2015, the top bracket drops to 4.6 %. The two rate brackets would be set at 2.4 and 4.6 %, in 2016; 2.3 and 4.6 % in 2017; and 2.3 and 3.9 % in tax year 2018.

Further reductions to state income tax rates would be provided as early as 2019 if certain tax revenues increase over the prior fiscal year. That trigger would occur if certain taxes (named in the bill) exceed the previous year by 2% or more. This mechanism was very important to the House conferees.

The bill also partially restores the food sales tax rebate program, which had been repealed in 2012 HB 2117. The income tax credits would now be nonrefundable, but the rebate is partially restored.

The bill includes other tax provisions as well, including a benefit for storm damaged property.

See the tax bill description here.

The evening had a few surprises, when the House rejected the bill to delay education Common Core standards - a bill the House had demanded before they would debate the budget bill. The House also rejected a Judiciary measure that included prosecutorial powers much desired by Secretary of State Kris Kobach.

The Legislature will return for its official - and mostly procedural - adjournment Sine Die on June 20th - typically lasting only an hour or two.

2013 Legislature Passes Liquor Mega-Bill

Fri, 24 May 2013 19:28:37 GMT

It was a rocky road to adoption for the Conference Committee Report on HB 2199. The bill was passed on May 22, 2013 by the House of Representatives (89-23). The Senate approved the amended report May 15 (39-0). The bill was sent back to conference committee twice to remove sections that legislators in the House and the Senate ultimately opposed. Read more...

Other Legislation -

HB 2206 - the Uncork Kansas retail liquor deregulation bill was tabled by the House Commerce Committee and is not expected to see any further action this session. However, the Uncork Kansas proponents have been running paid newspaper advertisements and have been featured on radio in recent weeks. KABR members must continue to stand up to these tactics.

Read more here: By Uncork Kansas Coalition

Kansas Legislature Passes 2013 Liquor Mega-Bill

Thu, 23 May 2013 16:45:40 GMT

The bill now awaits the Governor's signature. It was a rocky road to adoption for the Conference Committee Report on HB 2199. The bill was passed on May 22, 2013 by the House of Representatives (89-23). The Senate approved the amended report May 15 (39-0). The bill was sent back to conference committee twice to remove sections that legislators in the House and the Senate ultimately opposed.

See the Bill Brief and full printout of the Conference Committee Report.

Contents of Sub for HB 2199: (The sections that did not survive are marked "CC Deleted" and were NOT passed.)

SB 7 -

ABC Citations must be processed within 90 days - with some allowance for extensions.
Clarifies that liquor store product tastings may include spirits mixed with ice or other beverages.
Inserts the language necessary to make liquor store tastings and microdistillery language supplemental to the Liquor Control Act, and clarifying that the rules and regulations that have been established will be legally binding.
CC Deleted - Provision to allow liquor to be served at events in the State Capitol as authorized by the Legislative Coordinating Council (House Commerce Committee amendment)

House Sub for SB 36 –

Allows sampling in the clubs and drinking establishments – no charge allowed, limited to five samples, sizes limited. The House committee inserted two parts of SB 7 into the bill. Includes taxation of product used for sampling. Requires the samples to be drawn from the inventory with the licensee paying the drink tax on that inventory, based on the acquisition cost.
Contains amendments to the restrictions placed on the employees of drinking establishments / on-premise licensees, formerly part of SB 35. Will allow the employee of an on-premise licensee to have up to three liquor-related violations before being disqualified from employment. The House Committee reinstated the prohibition against anyone who had a felony from working for a liquor licensee.

SB 203 –

Free Wine/Liquor for the general public at Arts Events - New exception for serving complimentary liquor on unlicensed premises for an event benefitting the arts if approved by a local ordinance. (Senate floor amendment)
Allows pitchers of margaritas, mojitos, sangria (In response to ABC interpretation of the 64 oz. beer pitcher limitation passed by 2012 Legislature. (Original bill)
Hotels serving complimentary liquor at guest receptions, drink coupons. (Original bill)
The bill also deletes the requirement for price lists in on-premise establishments. (original bill)
CC Deleted -Self-service liquor machines where licensee has control of consumption and access, has video surveillance and smart card operations for on-premise licensees. (Senate Committee amendment). It had not been introduced as a bill, but was amended into SB 203. This provision had been amended to be limited to casinos and allow wine only by the conference committee. This issue created a great deal of heartburn for legislators - some opposed allowing self-service, some opposed giving casinos a privilege not allowed for other on-premise licensees.
CC Deleted -Citizenship provision – stating any U.S. citizen can get a liquor license, removing the 10 year requirement. (House Committee amendment) This issue is repeatedly brought up by legislators as a late amendment on behalf of someone in Johnson County, but never introduced as a bill on its own merit. We expect to see the issue next session.

HB 2223 – CC Deleted

Homebrewer's bill - the conference committee was forced to delete this section, that would have allowed homebrewers to serve their product to people outside of their families and to hold public competitions. This bill had been delayed when the original bill was opposed by the ABC. Ultimately, the proponents accepted the compromise language put forward by the ABC, but the bill did not move through the legislative process to be passed by either Chamber prior to the end of the regular session. We expect to see this bill next session.

HISTORY:

April 3, 2013 - The combined conference committee report on HB 2199 became the new liquor mega-bill at the end of the regular session, and initially included House Sub for SB 7, SB 35, SB 36, SB 203, and HB 2223.

April 5, 2013 - The conference committee report was adopted by the Senate after extensive debate, with most of the controversy focused on a provision to allow liquor in the Capitol for certain occasions. The report was sent back to conference by the House of Representatives when a rules challenge determined that including HB 2223 - the Homebrewers' legislation - in the report was a violation of the Joint Rules of the House and Senate because it included the language of an entire bill that had not passed either Chamber. The liquor in the Capitol provision was also heavily debated in the House - and also had not been passed by the full Senate or House.

May 8, 2013 - The conference committee met and agreed to remove the sections of the bill that had not passed either chamber: homebrewer's provision, reduced U.S. citizenship requirement, and liquor in the Capitol.

May 10, 2013 - The Senate rejected the conference committee report and sent it back to conference on a motion by Senator Masterson (24-14) based on objections to the casinos self-service machines provision.

May 14, 2013 - The conference committee met and agreed to remove the casino self-service machine language.

May 15, 2013 - The Senate passed CCR for Sub H 2199 on a vote of 39-0.

May 22, 2013 - The House passed CCR for Sub H 2199 on a vote of 89-23.

Other Legislation -

Read more here: By Uncork Kansas Coalition

Salina commission discusses liquor sales on Sunday

Tue, 21 May 2013 21:31:00 GMT

Salina Commissioner: Current law restrains trade 5.21.13

Article by The Associated Press

SALINA - Salina's city commission will consider allowing liquor sales in the city on Sunday.

The possibility arose during discussion of an ordinance to allow microbreweries. Current Salina law prohibits Sunday sales of packaged liquor and cmb. Read the article.

KABR Legislative Luncheons

Thu, 02 May 2013 17:25:43 GMT

KABR is hosting several legislative luncheons to provide a forum for retailers to interact with their local legislators. Saturday, August 24, legislators will take time out from their campaigns to have lunch with area retailers from Johnson and Wyandotte Counties.

We will also be hosting legislators in Wichita at our Annual Meeting October 12. Future events will be scheduled in Topeka, Manhattan, Lawrence and other locations to be announced. If you are a retailer in one of these regions, it is imperative that you plan to participate in this very important opportunity. Your legislators do not know or understand your issues unless you make the effort to keep them informed.

For assistance in scheduling legislative meetings in your area, contact me..

What Uncork Kansas has to say about the House Commerce Committee tabling HB 2206

Thu, 21 Mar 2013 00:48:55 GMT

The following release by Uncork Kansas inaccurately states that some committee members voted "yes" in favor of HB 2206 and some committee members voted "no" - when, in fact, there was no vote to approve the bill. There were motions to amend and a motion to table - but no vote was taken to pass or to not pass the bill. Even more incredibly, Uncork Kansas states that Rep. Marvin Kleeb voted "yes", when he actually did not vote at all during the meeting, because he is the Chairman and presided over the debate. KABR takes accurate reporting seriously, and our reports aim to give you accurate and specific information.

House Commerce Committee Votes to Table HB 2206

Mar20, 2013 In the Headlines

Dear Uncork Kansas Supporters:

We’re disappointed to report that Monday, March 18, 2013, the House Commerce Committee voted to table HB 2206. As you’re familiar, this was the bill that would have made it legal for Kansas consumers to buy full strength beer and wine from a grocery or convenience store.

However, we are not giving up. You and thousands more have expressed your desire to see this legislation passed. We’re committed to continuing our work at the legislative level to enact a law that would finally let consumers decide where they purchase legal alcohol products.

We need your help to do it. Legislators need to hear from you in the form of personal emails, calls, letters, visits to local legislative forums, and social media posts. Please share your voice.

Below is the list of legislators in the House committee and how they voted on Monday’s legislation. Please take a minute to call or email the legislators in the House committee who voted “yes” and thank them for looking out for Kansas consumers.

Voted “YES” in support of HB2206 and consumer choice:

Rep. Marvin Kleeb
Phone: 785 296-7680
Email: marvin.kleeb@house.ks.gov

Rep. Gene Suellentrop
Phone: 785 296-7681
Email: gene.suellentrop@house.ks.gov

Rep. J. R. Claeys
Phone: 785 296-7670
Email: jrclaeys@house.ks.gov

Rep. Travis Couture-Lovelady
Phone: 785 296-4683
Email: travis.couture-lovelady@house.ks.gov

Rep. Mark Hutton
Phone: 785 296-7673
Email: mark.hutton@house.ks.gov

Rep. Josh Powell
Phone: 785 296-7674
Email: joshua.powell@house.ks.gov

Rep. Allan Rothlisberg
Phone: 785 296-7653
Email: allan.rothlisberg@house.ks.gov

Rep. Ron Ryckman Jr.
Phone: 785 296-6287
Email: ron.ryckman@house.ks.gov

Voted “NO” to letting you decide where to purchase beer and wine:

- Rep. Stan Frownfelter

- Rep. Steve Brunk

- Rep. Richard Carlson

- Rep. Will Carpenter

- Rep. Ken Corbet

- Rep. Michael Houser

- Rep. Louis Ruiz

- Rep. Annie Tietze

- Rep. Brandon Whipple

Thank you for your continued support.

Cheers,

The Uncork Kansas Coalition

House Commerce Committee Tables HB 2206

Mon, 18 Mar 2013 22:16:08 GMT

Today, the House Commerce Committee tabled HB 2206 - the Big Box Liquor bill - by a narrow margin.

The Committee adopted an extensive amendment by Rep. Hutton (R-Wichita) to allow only wine and beer at grocery/convenience stores, create a longer transition period and minimize the overall number of liquor licenses. It is a complicated amendment and the description was emailed to you this weekend.

A local option amendment offered by Rep. Rothlisberg (R-Junction City) failed – would have required cities and counties to opt out if they did not want to have big box, grocery or convenience store sales. Another amendment was adopted to try to make it difficult for the tax transfer to cities and counties to be swept by the State. A new balloon is supposed to be drafted that would show these changes to the underlying bill.

We do not know if the Committee will pull the bill from the table to work it this session, or perhaps choose to revisit the amended version during the 2014 Legislative Session.

Please shower the Representatives who voted to table the bill with thanks. Send your appreciation to all of the Committee members for spending a great deal of time considering the serious implications of restructuring the retail liquor industry in Kansas.

This is not over. It would take only one or two committee members to change their votes and resurrect the bill.

The Chairman, at this point, does not seem interested in spending any more time with this debate as the regular session days wind down.

House Committee will hear HB 2206 March 7

Wed, 27 Feb 2013 22:57:14 GMT

The public hearing for HB 2206 has been changed from March 6 to Thursday, March 7, 2013. The Hearing on the Big Box Liquor bill will be in the House Commerce Committee (click to see committee information).

The Chair hopes to start the Committee by 1:00 p.m. and offer 1 hour for proponents and 1 hour for opponents to testify. The bill may be voted on within a few days of the hearing. We hear the proponents are advertising their willingness to change the bill to Strong Beer and Wine, or perhaps even just Strong Beer, if that will gain them the votes needed to pass the bill out of committee.

KABR will host a lunch in the Statehouse to begin at 11:00 a.m. in the 3rd floor south wing of the State Capitol. Every retailer should plan to attend, and bring employees, family and others who care about preserving local small business. Invite your legislator to meet you at the lunch.

The key to this issue continues to be one-on-one meetings with your legislators. The days of "phoning it in" are over. The delayed hearing provides more opportunities for retailers to meet with their legislators. Please schedule those meetings as soon as you can get on the legislator's schedule to visit with them in person, whether in Topeka or when they are in their hometowns.

This hearing was initially planned for February 19-20, but was rescheduled due to large number of issues this Committee is handling prior to Turnaround Day - March 1. It is being set back again to avoid being on the first day back from their Turnaround break. The Legislature will not meet March 4 or 5, so legislators should be available in their hometowns on those days.

Since HB 2206 is exempt from deadlines, it can be postponed beyond the Turnaround deadline for bills to be considered in their House of Origin. That exempt status comes from its introduction in the House Taxation Committee, an "exempt" committee.

Register to attend HERE. Skip the login option.

Read the Big Box Liquor bill here.

And this is what it will cost the State - NOT including the loss in payroll taxes, property taxes, and income to communities and related small businesses!

Regardless of how many times the Uncork Kansas Coalition inaccurately calls the 761 independently owned liquor stores of Kansas a "monopoly" - Kansas licensed liquor stores are NOT a monopoly. Check out this handout. The Coalition representatives don't know the difference between a monopoly-controlled marketplace and regulation with licensure. Why would we give faceless, out-of-state corporations that don't comprehend the need for regulation and licensure - and mistake it as some type of market manipulation - the serious responsibility of selling alcoholic liquor for the state?

2013 Comments in Opposition to HB 2206 - CLICK HERE.

Uncork Kansas Bill introduced in House Taxation Committee

Fri, 01 Feb 2013 02:04:51 GMT

Jan. 31, 2013. Today, Rep. J.R. Claeys, R-Salina, requested the House Taxation Committee introduce the Expansion of Free Markets and Public Sector Deregulation Act - the 2013 version of the Big Box Liquor bill promoted by grocery and convenience stores. Introducing the bill in the Taxation Committee makes the bill exempt from deadlines, although the bill is expected to be assigned to the House Commerce Committee.

The day began with a crowd of Dillons managers and employees gathered in the Statehouse rotunda, then dispersing to meet with individual legislators. On Tuesday, it was the Hy-Vee luncheon for all legislators as well as a briefing. See notes here.

The legislation is not yet available to the public. Once it is drafted and released, we will make copies available here. The House Commerce Committee is expected to schedule public hearings in two weeks or so. This allows a short period of time for you to have a meaningful conversation with your legislators before the bill could start moving through the House. Find contact information for legislators at www.kslegislature.org.

It is imperative that retailers plan to come to Topeka to meet with legislators in person as soon as possible. Plan now to come to Topeka for the public hearings later this month, as well. Uncork Kansas is putting on a show of force in the Statehouse with dozens of lobbyists declaring that consumers are demanding convenience.

Legislators must hear from the hundreds of people who will be negatively affected by corporate liquor deregulation - including the many other businesses who count on local small businesses, your insurance agent, your banker, your POS vendor, and your landlord. Read about it.

At this point, there is no bill in the Senate. It appears the Senate is not interested in entertaining a Big Box Liquor bill unless it passes the House of Representatives.

Come to Topeka to Meet with Legislators - schedule appointments with your legislators for Monday or any day you can make it to Topeka. If you need help, contact Amy by email or phone 785-969-1617.

Monday, February 4, KABR will present comments to the KLEAR organization during their luncheon meeting at the Statehouse. Retailers are encourage to attend - see below.

KABR will host Legislative Breakfast at the Capitol

Mon, 21 Jan 2013 12:51:19 GMT

Join your fellow Kansas retailers January 28 at the State Capitol in Topeka to enjoy breakfast with legislators and industry friends. Each and every one of us must plan to go to Topeka in person to stand up for our businesses this session and there is no time to waste.

The 2013 Kansas Legislative Session is off to a quick start, and the UnCork Kansas group has a large team of paid lobbyists who have been pushing the Big Box Liquor agenda since the 2012 session ended. Kansas retailers must stand up to be counted now.

A new bill has not yet been introduced, but the proponents say they hope to move the bill quickly. KABR will keep you informed when the bill is released and hearings are scheduled. Please make time to talk to your Kansas Senator and Representative today.

GOLD Strategy Dinner - Sunday, Jan. 27, 6:00 p.m. Blue Moose, 3030 SW Wanamaker, Topeka, KS 66614

Legislative Breakfast Reception - Monday, Jan. 28, 7:30 a.m. to approximately 9:30 a.m. Kansas Statehouse, 3rd floor south wing

KABR Board Meeting - Monday, Jan. 28, 10:00 a.m. - 12 noon, Clubhouse Inn and Suites, 924 Henderson Road, Topeka, KS 66615, 785-273-8888

Meet with Legislators - schedule appointments with your legislators for Monday or any day you can make it to Topeka. If you need help, contact Amy by email or phone 785-969-1617.

All members are welcome to attend all events.

Kansas Chamber of Commerce backs UnCork Kansas

Sat, 05 Jan 2013 04:18:22 GMT

Even longtime political watchers were surprised to see the Kansas Chamber jump out front on the Big Box Liquor issue in 2013. No sooner had Kansas retailers finally gone home for a well-deserved rest after the holiday season and recording their inventories, when the Kansas Chamber announced in newspapers across the state that it would be urging legislators to pass legislation to allow alcoholic liquor to be sold in grocery stores and convenience stores.

The Kansas Chamber flexed considerable muscle during the 2012 elections to elect conservative Republican legislators. Only time will tell if the Chamber actually intends to make deregulation of retail liquor a true priority on its policy wish list this year... and more importantly, whether or not our independent Kansas retailers went out and supported candidates during the elections themselves.

http://cjonline.com/news/business/2013-01-07/kansas-legislative-business-delving-liquor-taxes-unions#.UOxpeb-NUlA.email

ABC Enacts New Policy re: Retailer Tastings

Sun, 01 Aug 2010 05:19:18 GMT

As of August 1, 2010, the Division of ABC has reversed earlier interpretations of State statute that formerly allowed liquor retailers to host tastings in adjacent party shops or tasting rooms. See new policy. The new policy cites current Kansas law - K.A.R. 14-13-13(j) provides: "A retailer shall not permit the drinking of alcoholic liquors or cereal malt beverage in, on, or about the licensed premises."

Colorado: Grocery liquor bill iced

Thu, 06 May 2010 05:38:59 GMT

The House kills a measure that would widen alcohol sales to let supermarkets expand offerings.

Source: The Denver Post

By Jessica Fender

Posted: 05/06/2010 01:00:00 AM MDT

Colorado shoppers are much less likely to find beer, wine and liquor on supermarket shelves after a House committee on Wednesday killed a bill to expand alcohol sales and the prospects dimmed for two similarly aimed ballot initiatives.

It was the third time in as many years that a coalition of convenience stores, supermarkets and consumer advocates has been thwarted in the legislature.

House Bill 1279 would have allowed a supermarket to buy the license of a neighboring liquor store from its owners in the industry's most creative attempt yet to secure the beverages for their stores.

Calling herself "a realistic person," bill sponsor Rep. Buffie McFadyen, D-Pueblo West, said she didn't have the votes to pass HB 1279 and asked the House Finance Committee to kill it. The vote was quick and unanimous.

Almost as quickly, the threat of two sales-expanding ballot initiatives that for months loomed large over the legislative debate seemed to fade, with powerhouse backers saying they've not yet decided to throw their full weight behind them.

Members of the Colorado Retail Council, one of the main backers of initiatives 48 and 65, are pausing to consider their options in the wake of the bill's death, president Chris Howes said.

There's a lot at stake.

"We're going to wait for the session to be over. We've got a little bit of time to understand the options we have before us," Howes said. "There's no doubt about it. If you lose in the fall, I don't think you'll have many legislators interested in running the bill next year."

Initiative 48 would end 3.2 percent low-alcohol beer; allow grocery stores to sell all forms of alcohol; allow convenience stores to sell stronger beer; and allow liquor-store proprietors to own more than one location.

Initiative 65 would only allow grocery stores to sell all forms of alcohol.

Under current rules, most grocery stores can sell only low-alcohol beer, with the full panoply of adult beverages allowed in just one store per chain. HB 1279 would have changed that.

A second bill to allow full-strength suds in convenience stores - now also limited to only low-alcohol beer - died in the same committee earlier this year.

But both proposals progressed further than previous bills aimed at expanding alcohol sales.

Liquor-store advocates Wednesday celebrated the death of HB 1279 in the hall outside the committee room.

The stores have waged war against changes to Colorado's liquor law by arguing that expanding sales would provide easier access to minors and put mom-and-pop liquor stores out of business.

Their advocates said they'd welcome a ballot initiative to put the question to rest.

"We're tan, rested and ready," said Jeanne McEvoy, president of the Colorado Licensed Beverage Association. "I don't get the feeling they're going (with the initiative). There's no public support for it."

Too much of the legislative debate focused on the effects on businesses, when the real winners or losers are consumers who want greater convenience, said Blake Harrison, who filed initiatives 48 and 65.

Still, with the statutory July 12 deadline looming, Harrison said he won't be able to gather the 76,047 signatures required to make the ballot without the help of the still-undecided grocers and the business community.

"It really has become a fight between the grocery stores and the liquor stores. Meanwhile, the people aren't getting what they want and haven't been for a long time," Harrison said. "It's perfect for a ballot initiative. That's what the process is there for."

House Commerce Committee will not vote on Grocery Store Liquor License Bill

Sat, 20 Mar 2010 05:45:57 GMT

The chairman of the House Commerce and Labor Committee called me to say that the Grocery Store Liquor License bill – HB 2697 – will not be worked by the Committee. I know that many of you have heard from your legislators, who have also called to give you the good news.

This means that the bill will sit in committee and die when the Legislature ends business in May. There is still a chance that someone might attempt to amend this issue or the strong beer issue into a different bill on the floor of the House when they are working bills next week. However, I am hopeful that even the legislators who would like to support the grocery stores and the convenience stores understand that these bills would need significant amendments.

This was the last week for regular committee meetings. Next week, the House and Senate will be working on the floor most of each day to try to work through all of the bills that have been passed by committees. Then, conference committees will meet to hash out the differences between Senate and House bills and they will again be voted on by each chamber. The Legislature will break around April 2 or 3 and come back at the end of April for the veto session.

PLEASE THANK THESE LEGISLATORS!!!

It is very important to thank the legislators on the House Commerce and Labor Committee for not passing HB 2697. Those committee members are: Steve Brunk, John Grange, Elaine Bowers, Phil Hermanson, Aaron Jack, Dan Kerschen, Joann Pottorff, Willie Prescott, Jill Quigley, Scott Schwab, Gene Suellentrop, Bill Wolf, Ron Worley, Louis Ruiz, Delia Garcia, Sean Gatewood, Bob Grant, Broderick, Henderson, Pat Maloney, Dale Swenson, Annie Tietze. Although Scott Schwab has said that he does support the grocery stores – even he was cooperative in not bringing the bill to a vote. He has said to me personally that he does not want to pass anything that will put his local stores – particularly Brian Flanery and Judy Ensminger – out of business.

This is also a good time to contact your own legislators to say that these bills have not come out of the House committees and that you would appreciate if they will keep their ears open for any rumors that these or other liquor issues will pop up on the floor.

Please take a moment to send these messages right now. If you have been corresponding with your legislators by e-mail – send them an e-mail. Or send them a personal note to: Representative ______________________, Kansas Statehouse, 300 SW 10^th Street, Topeka, KS 66612.

It is so important for your legislators to know that you appreciate the good things that happen, and that you won’t only be calling them when things are looking bad.

Thank you all for your very hard work on these issues.

House Committee rejects 2010 Strong Beer bill

Wed, 17 Mar 2010 05:35:03 GMT

House Committee rejects Strong Beer bill 3-17-10.doc

Strong Beer Hearings

Mon, 25 Jan 2010 05:31:29 GMT

House Committee will hold hearing on Strong Beer Bill 1-31-10.docx