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 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. 

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.

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.  

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 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.  

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.

By Bryan Thompson
Kansas Public Radio
June 20, 2014

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.

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.