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.

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/

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. 

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.

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. 

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. 

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

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.

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

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 

Email

785-969-1617

Brian Davis, President

Email

316-990-1425