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. 

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.

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."

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

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. 

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).

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 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 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.  

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

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.

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,)