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.” Read more here: http://www.kansas.com/news/politics-government/article85793822.html#storylink=cpy

(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.

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

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

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/

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.

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

Read more here: http://www.kansas.com/news/politics-government/article63332282.html#storylink=cpy

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.  

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.

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.