Session Law

Identifying Information:L. 2001 ch. 055
Other Identifying Information:2001 Senate Bill 178
Tax Type:Alcoholic Beverage Control
Brief Description:An Act concerning intoxicating liquors; relating to licensees under the liquor control act; amending K.S.A. 41-311, 41-313, 41-319 and repealing the existing sections.
Keywords:


Body:

CHAPTER 55

SENATE BILL No. 178


An Act concerning intoxicating liquors; relating to licensees under the liquor control act;

amending K.S.A. 41-311, 41-313, 41-319 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 41-311 is hereby amended to read as follows: 41-

311. (a) No license of any kind shall be issued pursuant to the liquor

control act to a person:

(1) Who has not been a citizen of the United States for at least 10

years, except that the spouse of a deceased retail licensee may receive

and renew a retail license notwithstanding the provisions of this subsec-

tion (a)(1) if such spouse is otherwise qualified to hold a retail license and

is a United States citizen or becomes a United States citizen within one

year after the deceased licensee's death;

(2) who has been convicted of a felony under the laws of this state,

any other state or the United States;

(3) who has had a license revoked for cause under the provisions of

this act or who has had any license issued under the cereal malt beverage

laws of any state revoked for cause except that a license may be issued to

a person whose license was revoked for the conviction of a misdemeanor

at any time after the lapse of 10 years following the date of the revocation;

(4) who has been convicted of being the keeper or is keeping a house

of prostitution or has forfeited bond to appear in court to answer charges

of being a keeper of a house of prostitution;

(5) who has been convicted of being a proprietor of a gambling house,

pandering or any other crime opposed to decency and morality or has

forfeited bond to appear in court to answer charges for any of those

crimes;

(6) who is not at least 21 years of age;

(7) who, other than as a member of the governing body of a city or

county, appoints or supervises any law enforcement officer, who is a law

enforcement official or who is an employee of the director;

(8) who intends to carry on the business authorized by the license as

agent of another;

(9) who at the time of application for renewal of any license issued

under this act would not be eligible for the license upon a first application,

except as provided by subsection (a)(12);

(10) who is the holder of a valid and existing license issued under

article 27 of chapter 41 of the Kansas Statutes Annotated unless the per-

son agrees to and does surrender the license to the officer issuing the

same upon the issuance to the person of a license under this act, except

that a retailer licensed pursuant to K.S.A. 41-2702, and amendments

thereto, shall be eligible to receive a retailer's license under the Kansas

liquor control act;

(11) who does not own the premises for which a license is sought, or

does not have a written lease thereon for at least 3/4 of the period for

which the license is to be issued; or

(12) whose spouse would be ineligible to receive a license under this

act for any reason other than citizenship, residence requirements or age,

except that this subsection (a)(12) shall not apply in determining eligibility

for a renewal license.; or

(13) who does not provide any data or information required by sec-

tion 2, and amendments thereto.

(b) No retailer's license shall be issued to:

(1) A person who is not a resident of this state;

(2) a person who has not been a resident of this state for at least four

years immediately preceding the date of application;

(3) a person who has beneficial interest in the manufacture, prepa-

ration or wholesaling of alcoholic beverages;

(4) a person who has beneficial interest in any other retail establish-

ment licensed under this act, except that the spouse of a licensee may

own and hold a retailer's license for another retail establishment;

(5) a copartnership, unless all of the copartners are qualified to obtain

a license;

(6) a corporation; or

(7) a trust, if any grantor, beneficiary or trustee would be ineligible

to receive a license under this act for any reason, except that the provi-

sions of subsection (a)(6) shall not apply in determining whether a ben-

eficiary would be eligible for a license.

(c) No manufacturer's license shall be issued to:

(1) A corporation, if any officer or director thereof, or any stockholder

owning in the aggregate more than 25% of the stock of the corporation

would be ineligible to receive a manufacturer's license for any reason

other than citizenship and residence requirements;

(2) a copartnership, unless all of the copartners shall have been res-

idents of this state for at least five years immediately preceding the date

of application and unless all the members of the copartnership would be

eligible to receive a manufacturer's license under this act;

(3) a trust, if any grantor, beneficiary or trustee would be ineligible

to receive a license under this act for any reason, except that the provi-

sions of subsection (a)(6) shall not apply in determining whether a ben-

eficiary would be eligible for a license;

(4) an individual who is not a resident of this state; or

(5) an individual who has not been a resident of this state for at least

five years immediately preceding the date of application.

(d) No distributor's license shall be issued to:

(1) A corporation, if any officer, director or stockholder of the cor-

poration would be ineligible to receive a distributor's license for any rea-

son. It shall be unlawful for any stockholder of a corporation licensed as

a distributor to transfer any stock in the corporation to any person who

would be ineligible to receive a distributor's license for any reason, and

any such transfer shall be null and void, except that: (A) If any stockholder

owning stock in the corporation dies and an heir or devisee to whom stock

of the corporation descends by descent and distribution or by will is in-

eligible to receive a distributor's license, the legal representatives of the

deceased stockholder's estate and the ineligible heir or devisee shall have

14 months from the date of the death of the stockholder within which to

sell the stock to a person eligible to receive a distributor's license, any

such sale by a legal representative to be made in accordance with the

provisions of the probate code; or (B) if the stock in any such corporation

is the subject of any trust and any trustee or beneficiary of the trust who

is 21 years of age or older is ineligible to receive a distributor's license,

the trustee, within 14 months after the effective date of the trust, shall

sell the stock to a person eligible to receive a distributor's license and

hold and disburse the proceeds in accordance with the terms of the trust.

If any legal representatives, heirs, devisees or trustees fail, refuse or ne-

glect to sell any stock as required by this subsection, the stock shall revert

to and become the property of the corporation, and the corporation shall

pay to the legal representatives, heirs, devisees or trustees the book value

of the stock. During the period of 14 months prescribed by this subsec-

tion, the corporation shall not be denied a distributor's license or have its

distributor's license revoked if the corporation meets all of the other

requirements necessary to have a distributor's license;

(2) a copartnership, unless all of the copartners are eligible to receive

a distributor's license; or

(3) a trust, if any grantor, beneficiary or trustee would be ineligible

to receive a license under this act for any reason, except that the provi-

sions of subsection (a)(6) shall not apply in determining whether a ben-

eficiary would be eligible for a license;

(4) an individual who is not a resident of this state; or

(5) an individual who has not been a resident of this state for at least

10 years immediately preceding the date of application, except that:

(A) A wholesaler of cereal malt beverages properly licensed on Sep-

tember 1, 1948, shall be eligible for a beer distributor's license; and

(B) a person who has been a resident of the state for at least one year

immediately preceding the date of application shall be eligible for a beer

distributor's license.

(e) No nonbeverage user's license shall be issued to a corporation, if

any officer, manager or director of the corporation or any stockholder

owning in the aggregate more than 25% of the stock of the corporation

would be ineligible to receive a nonbeverage user's license for any reason

other than citizenship and residence requirements.

(f) No microbrewery license or farm winery license shall be issued to

a:

(1) Person who is not a resident of this state;

(2) person who has not been a resident of this state for at least four

years immediately preceding the date of application;

(3) person who has beneficial interest in the manufacture, prepara-

tion or wholesaling of alcoholic beverages other than that produced by

such brewery or winery;

(4) person, copartnership or association which has beneficial interest

in any retailer licensed under this act or under K.S.A. 41-2702, and

amendments thereto;

(5) copartnership, unless all of the copartners are qualified to obtain

a license;

(6) corporation, unless stockholders owning in the aggregate 50% or

more of the stock of the corporation would be eligible to receive such

license and all other stockholders would be eligible to receive such license

except for reason of citizenship or residency; or

(7) a trust, if any grantor, beneficiary or trustee would be ineligible

to receive a license under this act for any reason, except that the provi-

sions of subsection (a)(6) shall not apply in determining whether a ben-

eficiary would be eligible for a license.

(g) The provisions of subsections (b)(1), (b)(2), (c)(3), (c)(4), (d)(3),

(d)(4), (f)(1) and (f)(2) shall not apply in determining eligibility for the

10th, or a subsequent, consecutive renewal of a license if the applicant

has appointed a citizen of the United States who is a resident of Kansas

as the applicant's agent and filed with the director a duly authenticated

copy of a duly executed power of attorney, authorizing the agent to accept

service of process from the director and the courts of this state and to

exercise full authority, control and responsibility for the conduct of all

business and transactions within the state relative to alcoholic liquor and

the business licensed. The agent must be satisfactory to and approved by

the director, except that the director shall not approve as an agent any

person who:

(1) Has been convicted of a felony under the laws of this state, any

other state or the United States;

(2) has had a license issued under the alcoholic liquor or cereal malt

beverage laws of this or any other state revoked for cause, except that a

person may be appointed as an agent if the person's license was revoked

for the conviction of a misdemeanor and 10 years have lapsed since the

date of the revocation;

(3) has been convicted of being the keeper or is keeping a house of

prostitution or has forfeited bond to appear in court to answer charges of

being a keeper of a house of prostitution;

(4) has been convicted of being a proprietor of a gambling house,

pandering or any other crime opposed to decency and morality or has

forfeited bond to appear in court to answer charges for any of those

crimes; or

(5) is less than 21 years of age.

New Sec. 2. (a) If an applicant for licensure is not a resident of the

state of Kansas on the date of submission of such application or has not

been a resident for at least one year immediately preceding the date of

submission of such application, the director shall require the individual

applicant, or if the applicant is a corporation, partnership or trust, each

individual officer, director, stockholder, copartner or trustee to:

(1) Submit to a national criminal history record check and provide

the director with a legible set of fingerprints;

(2) disclose to the director any substantial financial interest the ap-

plicant owns in any entity that receives proceeds from the sale of alcoholic

beverages; and

(3) submit a release allowing the director to have access to and review

of the applicant's financial records to verify ownership and to ensure ap-

plicant is not an agent of another person. This release shall remain in

effect after the license has been issued until the license is canceled or

revoked.

(b) The director shall submit the fingerprints provided under sub-

section (a) to the Kansas bureau of investigation and to the federal bureau

of investigation and receive a reply to enable the director to verify the

identity of such applicant or such individuals specified in subsection (a)

and whether such applicant or such individuals have been convicted of

any crimes that would disqualify the applicant or such individuals from

holding a license under the liquor control act. The director is authorized

to use the information obtained from the national criminal history record

check to determine such applicant's or individuals' eligibility to hold a

license under the liquor control act.

(c) All costs incurred pursuant to this section to ensure that the ap-

plicant is qualified for licensure shall be paid by the applicant.

Sec. 3. K.S.A. 41-313 is hereby amended to read as follows: 41-313.

(a) No corporation, either organized under the laws of this state, any other

state or a foreign country, shall be issued a manufacturer's, distributor's,

microbrewery or farm winery license unless the corporation has first pro-

cured a certificate of authority from the secretary of state to do business

in this state as provided by law, appointed a citizen of the United States,

and resident of Kansas, as its agent and filed with the director a duly

authenticated copy of a duly executed power of attorney, authorizing the

agent to accept service of process from the director and the courts of this

state and to exercise full authority of the corporation and full authority,

control and responsibility for the conduct of all business and transactions

of the corporation within the state relative to alcoholic liquor and the

business licensed. The agent must be satisfactory to and approved by the

director with respect to the agent's character. The agent shall at all times

be maintained by the corporation.

In addition, any corporation organized under the laws of any other state

or foreign country, as a condition precedent to the issuance to it of any

license, shall file with the secretary of state of the state of Kansas, a duly

authorized and executed power of attorney, authorizing the secretary of

state to accept service of process from the director and the courts of this

state and to accept service of any notice or order provided for in this act,

and all such acts by the secretary of state shall be fully binding upon the

corporation.

(b) Every nonresident applicant on applying for a license or permit

under this act, and as a condition precedent to obtaining such license or

permit, shall file with the secretary of state of this state its written consent,

irrevocable, that any action or garnishment proceeding may be com-

menced against such applicant in the proper court of any county in this

state in which the cause of action shall arise or in which the plaintiff may

reside by the service of process on the resident agent specified in subsec-

tion (a), and stipulating and agreeing that such service shall be taken and

held in all courts to be as valid and binding as if due service had been

made upon the applicant. The written consent shall state that the courts

of this state have jurisdiction over the person of such applicant and are

the proper and convenient forum for such action and shall waive the right

to request a change of jurisdiction or venue to a court outside this state

and that all actions arising under this act and commenced by the applicant

shall be brought in this state's courts as the proper and convenient forum.

Such consent shall be executed by the applicant and if a corporation, by

the president and secretary of the corporate applicant, and shall be ac-

companied by a duly certified copy of the order or resolution of the board

of directors, trustees or managers authorizing the president and secretary

to execute the same.

Sec. 4. K.S.A. 41-319 is hereby amended to read as follows: 41-319.

(a) Except as provided by subsection (b), within 30 days after an appli-

cation is filed for a retailer's, microbrewery or farm winery license and

within 20 days after an application is filed for a manufacturer's, distrib-

utor's or nonbeverage user's license, the director shall enter an order

either refusing or granting the license. If the director does not enter an

order within the time prescribed, the license applied for shall be deemed

to have been refused. The director, with the written consent of the ap-

plicant for a license, may delay entering an order on an application for

an additional period of not to exceed 30 days.

(b) In order to complete any national criminal history record check

of an applicant who submitted any application after January 31, 2001,

and if the applicant is not a resident of the state of Kansas on the date of

submission of such application or has not been a resident for at least one

year immediately preceding the date of submission of such application

the director shall enter an order either refusing or granting the license

within 90 days after such application is filed. If the director does not enter

an order within the time prescribed, the license applied for shall be

deemed to have been refused. The director, with the written consent of

the applicant for a license, may delay entering an order on an application

for an additional period of not to exceed 30 days.

Sec. 5. K.S.A. 41-311, 41-313 and 41-319 are hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved March 30, 2000.

Published in the Kansas Register April 5, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001