HB 2282 - Uncork & the 3.2 issue and

HB 2366 - Keg Registration

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.

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.  

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:

Contacts: 

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

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