SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2138
As Amended by Senate Committee of the Whole

Brief*
Senate 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; days and times of sale of
liquor and cereal malt beverage (CMB); and refillable and
sealable containers of liquor and CMB.

Suspending, Canceling, or Revoking Certain Liquor
Licenses
The bill would allow the Director of Alcoholic Beverage
Control (ABC) to suspend, cancel, or revoke a license under
the Kansas Liquor Control Act (KLCA) or the Club and
Drinking Establishment Act (CDEA) for violation of a lawful
order issued by the Director.
Under current law, the Director of ABC is authorized to
suspend, cancel, or revoke a license for certain unlawful acts
by a licensee. The bill would amend current law to expand the
lists of unlawful conduct to include violations of lawful orders
issued by the Director of ABC.


____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Days and Times of Sale of Liquor and CMB
The bill would amend statutes in the KLCA and the
Cereal Malt Beverage Act (CMBA) to expand the time when
retail sales of alcoholic liquor and CMB are allowed.
Under current law, a city or county may choose to allow
sales of alcoholic liquor and CMB on Sundays, except on
certain holidays, between noon and 8 p.m. The bill would
allow sales on Sundays, except on those certain holidays
listed in continuing law, between 10 a.m. and 8 p.m.

Producer’s Licenses
The bill would require an application for a retailer’s
license be approved if the applicant has already been issued
a producer’s license for a vineyard pursuant to KSA 41-355,
provided the applicant is not otherwise disqualified from
holding the retailer’s license under continuing law.

Refillable and Sealable Containers
The bill would amend statutes in the KLCA and CDEA to
authorize alcoholic liquor retailers, class A and B clubs, and
drinking establishments to sell refillable and sealable
containers of beer and CMB for consumption off the licensed
premises.
Under current law, alcoholic liquor retailers are restricted
to selling alcoholic liquor only in the original unopened
container, and class A and B clubs are not able to sell
refillable and sealable containers of beer and CMB; only
microbreweries are allowed to make such sales.
The bill would allow alcoholic liquor retailers and clubs to
sell beer and CMB under the same conditions as
microbreweries. The bill would require such refillable and
sealable containers to hold between 32 and 64 fluid ounces

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and have a label that clearly indicates the licensee’s name
and the type of alcoholic beverage in the container. Club and
drinking establishment sales of beer and CMB in refillable
and sealable containers would be prohibited after 11 p.m.,
and the bill would specify that such sales would be subject to
the liquor drink tax.

Mixed Alcoholic Beverages in Pitchers
The bill would authorize a public venue, club, drinking
establishment, caterer, or holder of a temporary permit to sell
or serve mixed alcoholic beverages in a pitcher. Current law
allows the sale or serving of only certain mixed drinks listed in
statute or others specifically approved by the Director of ABC.
The bill would also define the following terms:
● “Mixed alcoholic beverage” to mean a beverage,
such as a margarita or sangria, made of at least 25
percent non-alcoholic liquid or other edible
substance and combined with alcoholic liquor; and
● “Pitcher” to mean any container capable of
containing more than 32 fluid ounces but not more
than 64 fluid ounces that is used to serve alcoholic
liquor or CMB.
Background
The Senate Committee on Federal and State Affairs
recommended adoption of a substitute bill, created by
removing the contents of HB 2138, as introduced, and
inserting the provisions of SB 255, as introduced; SB 256, as
introduced; and SB 257. The Senate Committee also
amended the provisions previously found in SB 257 to allow
sales of refillable and sealable containers for off-premise
consumption.

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 HB 2138, as introduced, would have amended the KLCA
to allow a person whose spouse is employed as a law
enforcement official to be eligible to receive a liquor license.
[Note: The contents of HB 2138, as introduced, were
amended by the Senate Committee and included in HB 2137,
as amended by the Senate Committee.]

Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
authorize the sale of all mixed drinks in pitchers and add
definitions for “mixed alcoholic beverage” and “pitcher.”
The Senate Committee of the Whole also amended the
bill to restore the discretion of boards of county
commissioners and governing bodies of cities to allow retail
sales of alcoholic liquor and CMB on Memorial Day,
Independence Day, and Labor Day, as in current law.

SB 255 (Authorizing Actions by the Director of ABC)
SB 255 was introduced by the Senate Committee on
Federal and State Affairs at the request of Senator Alley on
behalf of the Director of ABC.
[Note: Provisions of SB 255 are the same as those of
2020 SB 433, as introduced.]
Senate Committee on Federal and State Affairs
In the Senate Committee hearing on SB 255, the
Director of ABC provided proponent testimony, indicating the
intent of the bill is to clarify and improve the method of
enforcing ABC administrative orders. The conferee stated the
bill does not add a new violation, but clarifies existing law to
the benefit of licensees and staff. A representative of the
Kansas Association of Beverage Retailers provided written-
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only proponent testimony, indicating the bill is important to
licensees under ABC jurisdiction, and enforcement of the
rules provides an even playing field for everyone.
No other testimony was provided.
Fiscal Information
According to the fiscal note provided by the Division of
the Budget on SB 255, as introduced, the Kansas
Department of Revenue (KDOR) indicates enactment of the
bill would have no fiscal effect on the agency.

SB 256 (Expanding Sunday and Holiday Sales of
Alcoholic Liquor)
SB 256 was introduced by the Senate Committee on
Federal and State Affairs at the request of Senator Alley on
behalf of the Kansas Association of Beverage Retailers.
Senate Committee on Federal and State Affairs
In the Senate Committee hearing on SB 256,
representatives of Blackjack’s Retail Liquor, Fuel True, the
Kansas Association of Beverage Retailers, and the Kansas
Association for Responsible Liquor Laws, Inc., provided
proponent testimony. The conferees generally indicated the
bill could have a positive economic impact. A representative
of the League of Kansas Municipalities (LKM) provided
written-only proponent testimony, stating the bill preserves
options for local governments.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on SB 256, as introduced, KDOR indicates
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enactment of the bill would require it to revise its retailers’
handbook, which would have a negligible fiscal effect that
could be absorbed within existing resources.
The Kansas Association of Counties indicates
enactment of the bill could result in increased tax revenue for
counties, but it is unclear if such increased revenue would be
offset by enforcement costs. A fiscal effect cannot be
estimated.
The LKM indicates the increased hours for sales on
Sundays and during summer holidays could increase sales
tax revenue for cities. However, the LKM notes that if a
petition is submitted requiring an election to expand the hours
of Sunday sales, cities would bear the cost of holding such an
election. A fiscal effect cannot be determined, because the
number of additional sales and potential elections cannot be
estimated.

SB 257 (Authorizing Retailers, Clubs, and Drinking
Establishments to Sell Certain Beer and CMB)
SB 257 was introduced by the Senate Committee on
Federal and State Affairs at the request of Senator Alley on
behalf of the Kansas Association of Beverage Retailers.
Senate Committee on Federal and State Affairs
In the Senate Committee hearing on SB 257,
representatives of Davis Retail Liquor, the Kansas
Association of Beverage Retailers, and the Kansas
Restaurant and Hospitality Association provided proponent
testimony. The conferees generally indicated the bill would be
a benefit to retail liquor stores, customers, craft brewers, and
small businesses.
The Director of ABC provided neutral testimony,
recommending the bill be amended to address contradictory
language in state statute.
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 No other testimony was provided.
[Note: The language of Senate Sub. for HB 2138
incorporates technical changes to SB 257 regarding statutory
references.]
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on SB 257, as introduced, KDOR indicates
enactment of the bill would require it to revise its handbooks
for class A and B clubs, drinking establishments, and retailers
at a total cost of $4,575 from the State General Fund for FY
2022. Of this amount, $1,800 would be used to update
publications and $2,775 would be used to print and mail
notices to approximately 2,500 taxpayers. KDOR notes
enactment of the bill could result in a decrease in beer and
CMB sales made by retailers. Any fiscal effect associated
with SB 257 is not reflected in The FY 2022 Governor’s
Budget Report.
Kansas Liquor Control Act; Club and Drinking Establishment Act; Cereal Malt
Beverage Act; cereal malt beverage; administrative orders; Sunday liquor sales;
holiday liquor sales; alcoholic liquor; retail; liquor licensing; Kansas Liquor Control
Act; Club and Drinking Establishment Act; Cereal Malt Beverage Act; cereal malt
beverage; administrative orders; Sunday liquor sales; holiday liquor sales; alcoholic
liquor; retail; liquor licensing


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Statutes affected:
As introduced: 41-311
Version 2: 41-308, 79-4101, 41-320a, 41-311b, 41-712, 41-718, 41-2611, 41-2653, 41-2703, 41-2901, 41-2704, 41-2911
{As Amended by Senate Committee of the Whole}: 41-308, 79-4101, 41-320a, 41-311b, 41-712, 41-718, 41-2611, 21-6204, 41-2640, 41-2653, 79-41a02, 41-2703, 41-2901, 41-2704, 41-2911
Enrolled: 25-1124, 25-2316c, 25-2437, 25-2430, 25-3009, 25-3206, 25-4401, 25-4402, 25-4403, 25-4404, 25-4405, 25-4406, 25-4407, 25-4408, 25-4409, 25-4411, 25-4414, 25-4415, 25-4610, 25-4613