Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


March 21, 2019


The Honorable Bud Estes, Chairperson
Senate Committee on Federal and State Affairs
Statehouse, Room 136-E
Topeka, Kansas 66612
Dear Senator Estes:
SUBJECT: Fiscal Note for SB 226 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 226 is
respectfully submitted to your committee.
SB 226 would change the basic and expanded hours of sale for cereal malt beverage (CMB)
retailers. Under current law, basic CMB retailers are allowed to sell CMB between the hours of
6:00 a.m. and midnight on Monday through Saturday with no sales permitted on Sunday. The bill
would only allow sales of CMB between the hours of 9:00 a.m. and 11:00 p.m. on any day when
the sale is permitted. In addition to Sunday, the sale of CMB would also be prohibited on Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Under current law, expanded CMB retailers are allowed to sell CMB between the hours of
6:00 a.m. and midnight on Monday through Saturday and between the hours of noon and 8:00 p.m.
on all Sundays, except Easter Sunday, when sales are prohibited. The bill would only allow sales
of CMB between the hours of 9:00 a.m. and 11:00 p.m. on Monday through Saturday and between
the hours of noon and 8:00 p.m. on Sundays. In addition to Easter Sunday, the bill would also
prohibit the sale of CMB on Thanksgiving Day and Christmas Day. The governing body of a city
with expanded CMB retailers would be allowed to pass an ordinance to require a CMB retailers to
close prior to 11:00 p.m., but not prior to 8:00 p.m. The bill would take effect upon on April 1,
2019, after its publication in the Kansas Register.
The Department of Revenue indicates that SB 226 has the potential to decrease retail sales
and liquor tax collections by reducing the hours that CMB retailers can operate. However, the
potential decrease in tax collections is estimated to be negligible. The Department does not have
data to determine how many sales occur in the hours that are currently allowed by law or if
consumer behavior would change as a result of this proposed change to provide a precise estimate
of the decrease in tax collections. The Department indicates that the administrative costs
associated with implementing the provisions of SB 226 would be negligible and could be absorbed
within existing resources.
The Honorable Bud Estes, Chairperson
Page 2—SB 226

The Kansas Department of Transportation (KDOT) indicates that if the state receives lower
sales tax revenues, then the bill has the potential to reduce state revenues to the State Highway
Fund. KDOT indicates that when the state receives lower State Highway Fund dollars it may be
required to make corresponding reductions to planned expenditures for projects funded under the
comprehensive transportation plan, known as T-WORKS. The Kansas Association of Counties
and the League Kansas Municipalities indicate that the bill has the potential to provide a net
reduction to local sales tax collections that are used in part to finance local governments. Any
fiscal effect associated with SB 226 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Lynn Robinson, Department of Revenue
Ben Cleeves, Transportation
Chardae Caine, League of Municipalities
Jay Hall, Association of Counties


Statutes affected:
As introduced: 41-2704