Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 24, 2021


The Honorable Larry Alley, Chairperson
Senate Committee on Federal and State Affairs
Statehouse, Room 136-E
Topeka, Kansas 66612
Dear Senator Alley:
SUBJECT: Fiscal Note for SB 254 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 254 is
respectfully submitted to your committee.
SB 254 would allow retailers to sell and deliver for resale cereal malt beverages (CMB)
and beer containing not more than 6.0 percent alcohol by volume (ABV) to the premises of a CMB
retailer who is licensed for on-premises consumption, if such CMB premises are located in the
same county or a county adjacent to the retailer’s premises. The bill would also amend the Liquor
Control Act and the Club and Drinking Establishment Act to include the sale of CMB. The bill
would also amend several provisions regarding the issuance of temporary CMB permits for various
entities. A retail liquor store would also be allowed to sell CMB at wholesale to an on-premise
liquor licensee or a CMB retailer. Caterers would be prohibited from allowing the serving, mixing,
or consumption CMB between the hours of 2:00 a.m. and 6:00 a.m. on any day. The bill also
makes several technical corrections and would repeal several sections of statute regarding
intoxicating liquors and beverages.
The Department of Revenue indicates that enactment of the bill would have no fiscal effect
on the agency. However, the Department notes that the bill would allow retail liquor stores to
wholesale and deliver 6.0 percent or less ABV beer to licensed CMB retailers. It also authorizes
on-premise liquor licensees or temporary permit holders to purchase and sell CMB without
obtaining a separate license from local government. Because of this, there would be a slight
reduction in the number of on-premises CMB licenses issued and revenues from CMB state stamp
fees ($25 each license). The number of on-premise licensees affected is unknown but is expected
to be minimal. The Department states that this provision would have a minor impact on local
government budgets because they would not collect the CMB license fees. However, a precise
The Honorable Larry Alley, Chairperson
Page 2—SB 254

fiscal effect cannot be estimated. Any fiscal effect associated with SB 254 is not reflected in The
FY 2022 Governor’s Budget Report.
The Kansas Association of Counties indicates that enactment of the bill could result in
increased tax revenue for the county as a result of certain licensees being able to sell CMB.
However, it is unclear if such increased revenue would be offset by enforcement costs and a fiscal
effect cannot be estimated.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Jay Hall, Association of Counties


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