REVISED
SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2137
As Amended by Senate Committee on Federal
and State Affairs
Brief*
HB 2137, as amended, 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, provided that the spouse is not a LEO in the same
county as the potentially permitted premises, and the
applicant meets the requirements in continuing law.
The bill would be in effect upon publication in the
Kansas Register.
Sale and Delivery of CMB by Liquor Retail Licensees
Under current law, retail liquor store licensees may sell
CMB along with alcoholic liquor, and CMB retailers are
allowed to sell beer with an alcohol content of up to six
percent alcohol by volume. Liquor retail licensees are also
allowed to sell and deliver alcoholic liquor and CMB to a
____________________
*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
temporary permit holder for resale by such permit holder, and
to sell and deliver alcoholic liquor to a caterer, licensed
premises of a public venue, club, or drinking establishment, if
such premises are either in the same county or in a county
adjacent to that of the liquor retailer.
The bill would allow liquor retail licensees to sell, and
deliver for resale, CMB and beer containing not more than six
percent alcohol by volume to the licensed premises of a CMB
retailer who is licensed for on-premises consumption,
provided such premises are located either in the same county
as the retailer or in an adjacent county.
The bill would also allow the retailer to charge a delivery
fee for delivery of the CMB and beer containing not more than
six percent alcohol by volume to a receiving CMB retailer.
Sale of CMB By the Drink
The bill would allow liquor-by-the-drink licensees (clubs,
restaurants, bars, caterers, and public venues) to also sell
CMB for consumption on the licensed premises pursuant to
the same restrictions as for sales of liquor-by-the-drink.
Removal of Unconsumed CMB from a Club or Drinking
Establishment
The bill would allow for the removal of unconsumed
CMB from the premises of a club or drinking establishment,
both in the original unopened container and no longer in the
original unopened container, under the following conditions:
● If the licensee can legally sell the liquor in its
original container;
● The liquor is in its original container;
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● Each container of liquor was purchased and
partially consumed by the patron on the licensed
premises;
● The licensee provides a date receipt for the
unfinished container;
● If each container is resealed in a tamper-proof,
transparent bag that makes subsequent opening or
tampering obvious before it is removed from the
licensed premises (if not in the original, unopened
container); and
● If no original unopened containers of spirits are
removed from the licensed premises.
Current law allows for the removal of unconsumed
alcoholic liquor, in the original package, from the premises of
clubs and drinking establishments under these same
conditions.
The bill would also specify that no licensee shall allow
any alcoholic liquor or CMB to be removed from the licensed
premises after 11:00 p.m., unless such alcoholic liquor is wine
that was purchased and partially consumed on the licensed
premises.
The bill would further specify that beer, CMB, and wine
in the original unopened container and mixed drinks not in the
original container shall not be subject to any drink size
requirements of the Club and Drinking Establishment Act. The
bill would require any other alcoholic liquor or CMB that is not
in the original unopened container to comply with all drink
size requirements, and be sold in a durable, sealed container.
The bill would also remove the sunset date of March 31,
2021, for the provisions related to removal of alcoholic liquor
from licensed premises found in current law.
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[Note: The provisions in current law for removal of
alcoholic drinks from licensed premises originally had a
sunset date of January 26, 2021, pursuant to 2020 Special
Session HB 2016. 2021 SB 14, which was signed by the
Governor on January 25, 2021, extended those provisions
through March 31, 2021.]
Temporary Permits
Current law allows the Division of Alcoholic Beverage
Control (ABC) of the Kansas Department of Revenue (KDOR)
to issue temporary permits which allow the holder to sell
alcoholic liquor at a location specified on the permit for a
certain period of time. The bill would allow holders of
temporary permits to sell CMB in addition to alcoholic liquor,
subject to the same permit application requirements,
limitations, and restrictions in continuing law.
Common Consumption Areas
Current law allows municipalities to establish common
consumption areas in which alcoholic liquor may be
consumed without being subject to enforcement of open
container laws. The bill would allow the consumption of CMB
within such common consumption areas.
Liquor Licensure of LEO Spouses
Current law prohibits liquor licensure for an applicant
whose spouse is employed as a law enforcement officer
(LEO) and such applicant is ineligible to hold a license. The
bill would amend law to allow a person whose spouse is
employed as a LEO to be eligible to receive a liquor license,
provided that the spouse is not a LEO in the same county as
the potentially permitted premises, and the applicant meets
the requirements in continuing law.
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[Note: KSA 2020 Supp. 41-2623(a)(1), which establishes
eligibility for licensure under the Club and Drinking
Establishment Act, specifically references the eligibility
provisions being amended in this bill.]
Technical and Conforming Amendments
The bill would make technical amendments to ensure
consistency in statutory phrasing and conforming changes to
existing statutory sections.
Background
The Senate Committee on Federal and State Affairs
amended the bill by amending the provisions of HB 2137
related to liquor licenses for spouses of LEOs. The bill would
include provisions of HB 2137, as amended, and HB 2138, as
amended. The backgrounds of both bills are described below.
HB 2137 (Expanding Sale and Delivery of CMB by Liquor
Retail Licensees)
The bill was introduced by the House Committee on
Federal and State Affairs at the request of Representative
Blake Carpenter.
House Committee on Federal and State Affairs
In the House Committee hearing, proponent testimony
was provided by representatives of the Kansas Association of
Beverage Retailers, the Kansas Beer Wholesalers
Association, and the Kansas Wine & Spirits Wholesalers
Association, stating the bill would allow the sale of CMB
products at licensed club and drinking establishments that do
not have a separate CMB license. Written-only proponent
testimony was provided by the Kansas Restaurant and
Hospitality Association.
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Written-only neutral testimony was provided by the
Director of the ABC. No other testimony was provided.
House Committee of the Whole
The bill was amended by the House Committee of the
Whole to add unconsumed CMB to provisions in current law
that allow for the removal of unconsumed alcoholic liquor
from the premises of a club and drinking establishment.
Senate Committee on Federal and State Affairs
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Kansas Association of
Beverage Retailers, the Kansas Beer Wholesalers
Association, and the Kansas Restaurant and Hospitality
Association.
Written-only neutral testimony was provided by the
Director of the ABC. No other testimony was provided.
The Senate Committee amended the bill to consolidate
the changes made by the House Committee of the Whole into
a single section. The Senate Committee also amended the
bill to prohibit class A, class B, or drinking establishment
licensees from allowing legal patrons to remove unopened
containers of spirits from the licensed premises and to
prohibit alcoholic liquor or CMB from being removed from the
licensed premises after 11:00 p.m., except for wine that was
purchased and partially consumed on the licensed premises.
The Senate Committee further amended the bill to insert
the contents of HB 2138, and amended the provisions of HB
2138 related to liquor licensure of law enforcement officer
spouses.
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Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, KDOR indicates
enactment of the bill would have no fiscal effect on CMB or
liquor tax revenue. The bill would have no fiscal effect on the
operations of KDOR, but there would be a small reduction in
the number of on-premises CMB retailer licenses issued by a
city or county that could have an impact on their budgets due
to reduced license fee collections; however, the reduction in
licensee fee revenue is estimated to be negligible.
Any fiscal effect associated with the bill is not reflected
in The FY 2022 Governor’s Budget Report.
HB 2138 (Liquor Licensure of LEO Spouses)
The bill was introduced by the House Committee on
Federal and State Affairs at the request of Representative
Eplee.
[Note: The bill contains provisions similar to 2020 HB
2571, as amended by the House Committee on Federal and
State Affairs.]
House Committee on Federal and State Affairs
In the House Committee hearing, a representative of
Dirty Girl Adventures, LLC, testified as a proponent, stating a
business owned by the spouse of a law enforcement officer,
who does not have jurisdiction over the location of the
applying business, should be eligible to receive a liquor
license upon meeting all other application criteria.
Written-only neutral testimony was submitted by a
representative of the ABC. No other testimony was provided.
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Senate Committee on Federal and State Affairs
In the Senate Committee hearing, a representative of
Dirty Girl Adventures, LLC, provided proponent testimony.
No other testimony was provided.
The Senate Committee amended the bill to prohibit a
person whose spouse is employed as a LEO from receiving a
liquor license if the spouse is a LEO in the same county as
the potentially permitted premises. The bill prior to
amendment would have granted eligibility for licensure to a
person whose spouse is employed as a LEO without the
location restriction.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, KDOR estimates enactment of the bill
would have no fiscal effect.
["Liquor Control Act","Club and Drinking Estalishment Act","law enforcement
officer","licenses","alcoholic liquor","cereal malt beverage","common consumption
area","liquor-by-the-drink license","off-premises","retail liquor licensee"]
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Statutes affected: As introduced: 41-308, 79-4101, 41-1201, 41-1202, 41-2608, 41-1203, 41-1204, 41-2601, 41-2604, 41-805, 41-2610, 41-2611, 21-6204, 41-2613, 41-2614, 41-2619, 41-2623, 41-2637, 41-2641, 41-2642, 41-2643, 41-2653, 41-2655, 41-2658, 41-2659
{As Amended by House Committee of the Whole}: 41-308, 79-4101, 41-1201, 41-1202, 41-2608, 41-1203, 41-1204, 41-2601, 41-2604, 41-805, 41-2610, 41-2611, 21-6204, 41-2613, 41-2614, 41-2619, 41-2623, 41-2637, 41-2641, 41-2642, 41-2643, 41-2653, 41-2655, 41-2658, 41-2659
As Amended by Senate Committee: 41-308, 79-4101, 41-311, 41-1201, 41-1202, 41-2608, 41-1203, 41-1204, 41-2601, 41-2604, 41-805, 41-2610, 41-2611, 21-6204, 41-2613, 41-2614, 41-2619, 41-2623, 41-2637, 41-2641, 41-2642, 41-2643, 41-2653, 41-2655, 41-2658, 41-2659
Enrolled: 41-102, 41-308, 79-4101, 41-308a, 41-308b, 41-311, 41-311b, 41-320a, 41-350, 41-352, 41-712, 41-718, 41-1201, 41-1202, 41-2608, 41-1203, 41-1204, 41-2601, 41-2604, 41-805, 41-2610, 41-2611, 21-6204, 41-2613, 41-2614, 41-2619, 41-2623, 41-2632, 41-2637, 41-2640, 41-2641, 41-2642, 41-2643, 41-2653, 79-41a02, 41-2655, 41-2658, 41-2659, 41-2703, 41-2901, 41-2704, 41-2911