Session of 1999
         
HOUSE BILL No. 2509
         
By Committee on Federal and State Affairs
          
2-16
          
  9             AN  ACT concerning alcoholic beverages; relating to the regulation
10             thereof; relating to certain licensees; amending K.S.A. 41-330, 41-2610
11             and 41-2623 and K.S.A. 1998 Supp. 41-311 and repealing the existing
12             sections.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1998 Supp. 41-311 is hereby amended to read as
16       follows: 41-311. (a) No license of any kind shall be issued pursuant to the
17       liquor control act to a person:
18             (1) Who has not been a citizen of the United States for at least 10
19       years, except that the spouse of a deceased retail licensee may receive
20       and renew a retail license notwithstanding the provisions of this subsec-
21       tion (a)(1) if such spouse is otherwise qualified to hold a retail license and
22       is a United States citizen or becomes a United States citizen within one
23       year after the deceased licensee's death;
24             (2) who has been convicted of a felony under the laws of this state,
25       any other state or the United States;
26             (3) who has had a license revoked for cause under the provisions of
27       this act or who has had any license issued under the cereal malt beverage
28       laws of any state revoked for cause except that a license may be issued to
29       a person whose license was revoked for the conviction of a misdemeanor
30       at any time after the lapse of 10 years following the date of the revocation;
31             (4) who has been convicted of being the keeper of or is keeping a
32       house of prostitution or has forfeited bond to appear in court to answer
33       charges of being a keeper of a house of prostitution;
34             (5) who has been convicted of being a proprietor of a gambling house,
35       pandering or any other crime opposed to decency and morality or has
36       forfeited bond to appear in court to answer charges for any of those
37       crimes;
38             (6) who is not at least 21 years of age;
39             (7) who, other than as a member of the governing body of a city or
40       county, appoints or supervises any law enforcement officer, who is a law
41       enforcement official or who is an employee of the director;
42             (8) who intends to carry on the business authorized by the license as
43       agent of another;
44             (9) who at the time of application for renewal of any license issued

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  1       under this act would not be eligible for the license upon a first application,
  2       except as provided by subsection (a)(12);
  3             (10) who is the holder of a valid and existing license issued under
  4       article 27 of chapter 41 of the Kansas Statutes Annotated unless the per-
  5       son agrees to and does surrender the license to the officer issuing the
  6       same upon the issuance to the person of a license under this act, except
  7       that a retailer licensed pursuant to K.S.A. 41-2702, and amendments
  8       thereto, shall be eligible to receive a retailer's license under the Kansas
  9       liquor control act;
10             (11) who does not own the premises for which a license is sought, or
11       does not have a written lease thereon for at least 34 of the period for
12       which the license is to be issued; or
13             (12) whose spouse would be ineligible to receive a license under this
14       act for any reason other than citizenship, residence requirements or age,
15       except that this subsection (a)(12) shall not apply in determining eligibility
16       for a renewal license.; or
17             (13) who has failed to file any tax return or is not current in filing all
18       applicable tax returns and in payment of all taxes, interest and penalties
19       owed to the state of Kansas, excluding items under formal appeal pursuant
20       to applicable statutes or items under a formal repayment schedule entered
21       into with the secretary or the secretary's designee. Except as provided by
22       federal or state law or any applicable gaming compact, nothing in this
23       paragraph shall be construed to enhance or diminish the state's authority
24       to impose any tax, fee, charge or assessment upon any native American
25       tribe or any agent thereof.
26             (b) No retailer's license shall be issued to:
27             (1) A person who is not a resident of this state;
28             (2) a person who has not been a resident of this state for at least four
29       years immediately preceding the date of application;
30             (3) a person who has beneficial interest in the manufacture, prepa-
31       ration or wholesaling of alcoholic beverages;
32             (4) a person who has beneficial interest in any other retail establish-
33       ment licensed under this act, except that the spouse of a licensee may
34       own and hold a retailer's license for another retail establishment;
35             (5) a copartnership partnership, unless all of the copartners partners
36       are qualified to obtain a license;
37             (6) a corporation; or
38             (7) a trust, if any grantor, beneficiary or trustee would be ineligible
39       to receive a license under this act for any reason, except that the provi-
40       sions of subsection (a)(6) shall not apply in determining whether a ben-
41       eficiary would be eligible for a license.
42             (c) No manufacturer's license shall be issued to:
43             (1) A corporation, if any officer or director thereof, or any stockholder

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  1       owning in the aggregate more than 25% of the stock of the corporation
  2       would be ineligible to receive a manufacturer's license for any reason
  3       other than citizenship and residence requirements;
  4             (2) a copartnership partnership, unless all of the copartners partners
  5       shall have been residents of this state for at least five years immediately
  6       preceding the date of application and unless all the members of the co-
  7       partnership partnership would be eligible to receive a manufacturer's
  8       license under this act;
  9             (3) a trust, if any grantor, beneficiary or trustee would be ineligible
10       to receive a license under this act for any reason, except that the provi-
11       sions of subsection (a)(6) shall not apply in determining whether a ben-
12       eficiary would be eligible for a license;
13             (4) an individual who is not a resident of this state; or
14             (5) an individual who has not been a resident of this state for at least
15       five years immediately preceding the date of application.
16             (d) No distributor's license shall be issued to:
17             (1) A corporation, if any officer, director or stockholder of the cor-
18       poration would be ineligible to receive a distributor's license for any rea-
19       son. It shall be unlawful for any stockholder of a corporation licensed as
20       a distributor to transfer any stock in the corporation to any person who
21       would be ineligible to receive a distributor's license for any reason, and
22       any such transfer shall be null and void, except that: (A) If any stockholder
23       owning stock in the corporation dies and an heir or devisee to whom stock
24       of the corporation descends by descent and distribution or by will is in-
25       eligible to receive a distributor's license, the legal representatives of the
26       deceased stockholder's estate and the ineligible heir or devisee shall have
27       14 months from the date of the death of the stockholder within which to
28       sell the stock to a person eligible to receive a distributor's license, any
29       such sale by a legal representative to be made in accordance with the
30       provisions of the probate code; or (B) if the stock in any such corporation
31       is the subject of any trust and any trustee or beneficiary of the trust who
32       is 21 years of age or older is ineligible to receive a distributor's license,
33       the trustee, within 14 months after the effective date of the trust, shall
34       sell the stock to a person eligible to receive a distributor's license and
35       hold and disburse the proceeds in accordance with the terms of the trust.
36       If any legal representatives, heirs, devisees or trustees fail, refuse or ne-
37       glect to sell any stock as required by this subsection, the stock shall revert
38       to and become the property of the corporation, and the corporation shall
39       pay to the legal representatives, heirs, devisees or trustees the book value
40       of the stock. During the period of 14 months prescribed by this subsec-
41       tion, the corporation shall not be denied a distributor's license or have its
42       distributor's license revoked if the corporation meets all of the other
43       requirements necessary to have a distributor's license;

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  1             (2) a copartnership partnership, unless all of the copartners partners
  2       are eligible to receive a distributor's license;
  3             (3) a trust, if any grantor, beneficiary or trustee would be ineligible
  4       to receive a license under this act for any reason, except that the provi-
  5       sions of subsection (a)(6) shall not apply in determining whether a ben-
  6       eficiary would be eligible for a license;
  7             (4) an individual who is not a resident of this state; or
  8             (5) an individual who has not been a resident of this state for at least
  9       10 years immediately preceding the date of application, except that:
10             (A) A wholesaler of cereal malt beverages properly licensed on Sep-
11       tember 1, 1948, shall be eligible for a beer distributor's license; and
12             (B) a person who has been a resident of the state for at least one year
13       immediately preceding the date of application shall be eligible for a beer
14       distributor's license.
15             (e) No nonbeverage user's license shall be issued to a corporation, if
16       any officer, manager or director of the corporation or any stockholder
17       owning in the aggregate more than 25% of the stock of the corporation
18       would be ineligible to receive a nonbeverage user's license for any reason
19       other than citizenship and residence requirements.
20             (f) No microbrewery license or farm winery license shall be issued to
21       a:
22             (1) Person who is not a resident of this state;
23             (2) person who has not been a resident of this state for at least four
24       years immediately preceding the date of application;
25             (3) person who has beneficial interest in the manufacture, prepara-
26       tion or wholesaling of alcoholic beverages other than that produced by
27       such brewery or winery;
28             (4) person, copartnership partnership or association which has ben-
29       eficial interest in any retailer licensed under this act or under K.S.A. 41-
30       2702, and amendments thereto;
31             (5) copartnership partnership, unless all of the copartners partners
32       are qualified to obtain a license;
33             (6) corporation, unless stockholders owning in the aggregate 50% or
34       more of the stock of the corporation would be eligible to receive such
35       license and all other stockholders would be eligible to receive such license
36       except for reason of citizenship or residency; or
37             (7) a trust, if any grantor, beneficiary or trustee would be ineligible
38       to receive a license under this act for any reason, except that the provi-
39       sions of subsection (a)(6) shall not apply in determining whether a ben-
40       eficiary would be eligible for a license.
41             (g) The provisions of subsections (b)(1), (b)(2), (c)(3), (c)(4), (d)(3),
42       (d)(4), (f)(1) and (f)(2) shall not apply in determining eligibility for the
43       10th, or a subsequent, consecutive renewal of a license if the applicant

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  1       has appointed a citizen of the United States who is a resident of Kansas
  2       as the applicant's agent and filed with the director a duly authenticated
  3       copy of a duly executed power of attorney, authorizing the agent to accept
  4       service of process from the director and the courts of this state and to
  5       exercise full authority, control and responsibility for the conduct of all
  6       business and transactions within the state relative to alcoholic liquor and
  7       the business licensed. The agent must be satisfactory to and approved by
  8       the director, except that. The director shall not approve as an agent any
  9       person who:
10             (1) Has been convicted of a felony under the laws of this state, any
11       other state or the United States;
12             (2) has had a license issued under the alcoholic liquor or cereal malt
13       beverage laws of this or any other state revoked for cause, except that a
14       person may be appointed as an agent if the person's license was revoked
15       for the conviction of a misdemeanor and 10 years have lapsed since the
16       date of the revocation;
17             (3) has been convicted of being the keeper or is keeping a house of
18       prostitution or has forfeited bond to appear in court to answer charges of
19       being a keeper of a house of prostitution;
20             (4) has been convicted of being a proprietor of a gambling house,
21       pandering or any other crime opposed to decency and morality or has
22       forfeited bond to appear in court to answer charges for any of those
23       crimes; or
24             (5) is less than 21 years of age.
25             Sec.  2. K.S.A. 41-330 is hereby amended to read as follows: 41-330.
26       After notice and an opportunity for hearing in accordance with the pro-
27       visions of the Kansas administrative procedure act, the director may re-
28       fuse to issue or renew or may revoke any license provided for by the
29       Kansas liquor control act if:
30             (a) The licensee or the licensee's spouse has been convicted of a vi-
31       olation of intoxicating liquor laws of any state or the alcoholic beverage
32       control laws of the United States or has forfeited of bond to appear in
33       court to answer charges for any such violation, within the 10 years im-
34       mediately preceding the date of application for issuance or renewal of the
35       license or the date of revocation; or
36             (b) the licensee or the licensee's spouse has been convicted of a vi-
37       olation of any of the laws of any state relating to cereal malt beverages,
38       within 10 years immediately preceding the date of application for issuance
39       or renewal of the license or the date of revocation.; or
40             (c) the licensee has failed to file any tax return or is not current in
41       filing all applicable tax returns and in payment of all taxes, interest and
42       penalties owed to the state of Kansas, excluding items under formal appeal
43       pursuant to applicable statutes or items under a formal repayment sched-

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  1       ule entered into with the secretary or the secretary's designee. Except as
  2       provided by federal or state law or any applicable gaming compact, noth-
  3       ing in this subsection shall be construed to enhance or diminish the state's
  4       authority to impose any tax, fee, charge or assessment upon any native
  5       American tribe or any agent thereof.
  6             Sec.  3. K.S.A. 41-2610 is hereby amended to read as follows: 41-
  7       2610. It shall be unlawful for any licensee or holder of a temporary permit
  8       under this act to:
  9             (a) Employ any person under the age of 18 years in connection with
10       the serving of alcoholic liquor.
11             (b) Employ knowingly or continue in employment any person in con-
12       nection with the dispensing or serving of alcoholic liquor or the mixing
13       of drinks containing alcoholic liquor who has been adjudged guilty of a
14       felony or of any crime involving a morals charge in this or any other state,
15       or of the United States.
16             (c) Employ knowingly or to continue in employment any person in
17       connection with the dispensing or serving of alcoholic liquor or mixing of
18       drinks containing alcoholic liquor who has been adjudged guilty of a vi-
19       olation of any intoxicating liquor law of this or any other state, or of the
20       United States, during the two-year period immediately following such
21       adjudging adjudication.
22             (d) In the case of a club, fail to maintain at the licensed premises a
23       current list of all members and their residence addresses or refuse to
24       allow the director, any of the director's or the director's authorized agents
25       or any law enforcement officer to inspect such list.
26             (e) Purchase alcoholic liquor from any person except from a person
27       authorized by law to sell such alcoholic liquor to such licensee or permit
28       holder.
29             (f) Permit any employee of the licensee or permit holder who is under
30       the age of 21 years to work on premises where alcoholic liquor is sold by
31       such licensee or permit holder at any time when not under the on-prem-
32       ises supervision of either the licensee or permit holder, or an employee
33       who is 21 years of age or over.
34             (g) Employ any person under 21 years of age in connection with the
35       mixing or dispensing of drinks containing alcoholic liquor.
36             (h) Fail to file any tax return or is not current in filing all applicable
37       tax returns and in payment of all taxes, interest and penalties owed to the
38       state of Kansas, excluding items under formal appeal pursuant to appli-
39       cable statutes or items under a formal repayment schedule entered into
40       with the secretary or the secretary's designee. Except as provided by fed-
41       eral or state law or any applicable gaming compact, nothing in this sub-
42       section shall be construed to enhance or diminish the state's authority to
43       impose any tax, fee, charge or assessment upon any native American tribe

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  1       or any agent thereof.
  2             Sec.  4. K.S.A. 41-2623 is hereby amended to read as follows: 41-
  3       2623. (a) No license shall be issued under the provisions of this act to:
  4             (1) Any person described in subsection (a)(1), (2), (4), (5), (6), (7),
  5       (8), (9) or (12) of K.S.A. 41-311, and amendments thereto, except that
  6       the provisions of subsection (a)(7) of such section shall not apply to nor
  7       prohibit the issuance of a license for a class A club to an officer of a post
  8       home of a congressionally chartered service or fraternal organization, or
  9       a benevolent association or society thereof.
10             (2) A person who has had the person's license revoked for cause un-
11       der the provisions of this act.
12             (3) A person who has not been a resident of this state for a period of
13       at least one year immediately preceding the date of application.
14             (4) A person who has a beneficial interest in the manufacture, prep-
15       aration or wholesaling or the retail sale of alcoholic liquors or a beneficial
16       interest in any other club, drinking establishment or caterer licensed here-
17       under, except that:
18             (A) A license for premises located in a hotel may be granted to a
19       person who has a beneficial interest in one or more other clubs or drinking
20       establishments licensed hereunder if such other clubs or establishments
21       are located in hotels.
22             (B) A license for a club or drinking establishment which is a restau-
23       rant may be issued to a person who has a beneficial interest in other clubs
24       or drinking establishments which are restaurants.
25             (C) A caterer's license may be issued to a person who has a beneficial
26       interest in a club or drinking establishment and a license for a club or
27       drinking establishment may be issued to a person who has a beneficial
28       interest in a caterer.
29             (D) A license for a class A club may be granted to an organization of
30       which an officer, director or board member is a distributor or retailer
31       licensed under the liquor control act if such distributor or retailer sells
32       no alcoholic liquor to such club.
33             (E) On and after January 1, 1988, A license for a class B club or
34       drinking establishment may be granted to a person who has a beneficial
35       interest in a microbrewery or farm winery licensed pursuant to the Kansas
36       liquor control act.
37             (5) A copartnership partnership, unless all of the copartners partners
38       are qualified to obtain a license.
39             (6) A corporation, if any officer, manager or director thereof, or any
40       stockholder owning in the aggregate more than 5% of the common or
41       preferred stock of such corporation would be ineligible to receive a li-
42       cense hereunder for any reason other than citizenship and residence
43       requirements.

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  1             (7) A corporation, if any officer, manager or director thereof, or any
  2       stockholder owning in the aggregate more than 5% of the common or
  3       preferred stock of such corporation, has been an officer, manager or di-
  4       rector, or a stockholder owning in the aggregate more than 5% of the
  5       common or preferred stock, of a corporation which:
  6             (A) Has had a license revoked under the provisions of the club and
  7       drinking establishment act; or
  8             (B) has been convicted of a violation of the club and drinking estab-
  9       lishment act or the cereal malt beverage laws of this state.
10             (8) A corporation organized under the laws of any state other than
11       this state.
12             (9) A trust, if any grantor, beneficiary or trustee would be ineligible
13       to receive a license under this act for any reason, except that the provi-
14       sions of subsection (a)(6) of K.S.A. 41-311, and amendments thereto, shall
15       not apply in determining whether a beneficiary would be eligible for a
16       license.
17             (10) A person who has failed to file any tax return or is not current
18       in filing all applicable tax returns and in payment of all taxes, interest and
19       penalties owed to the state of Kansas, excluding items under formal appeal
20       pursuant to applicable statutes or items under a formal repayment sched-
21       ule entered into with the secretary or the secretary's designee. Except as
22       provided by federal or state law or any applicable gaming compact, noth-
23       ing in this paragraph shall be construed to enhance or diminish the state's
24       authority to impose any tax, fee, charge or assessment upon any native
25       American tribe or any agent thereof.
26             (b) No club or drinking establishment license shall be issued under
27       the provisions of the club and drinking establishment act to:
28             (1) A person described in subsection (a)(11) of K.S.A. 41-311, and
29       amendments thereto.
30             (2) A person who is not a resident of the county in which the premises
31       sought to be licensed are located. 
32       Sec.  5. K.S.A. 41-330, 41-2610 and 41-2623 and K.S.A. 1998 Supp.
33       41-311 are hereby repealed.
34        Sec.  6. This act shall take effect and be in force from and after its
35       publication in the statute book.