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Motor Carriers will Report Liquor Shipments with Passage of Reporting Legislation - Governor Signed CMB Tax Change for Retailers


HB 2133 was added to the Conference Committee Report on SB 70 and passed by the 2019 Legislature.  The legislation, as amended, creates law related to delivery of alcoholic liquors within the state and required reporting of such deliveries. The bill would require every express company or other common carrier (carrier) that delivers alcoholic liquors from outside the state to consumers within the state to prepare a monthly report of known alcoholic liquors shipped by the carrier to be filed with the Director of Alcoholic Beverage Control (Director).  Link to Summary of SB 70.

Upon request by the Director, any additional records supporting the report would be required to be made available to the Director by any carrier. The bill would require such records be kept and preserved for a period of two years unless destruction of the records is authorized in writing by the Director. The bill would impose a penalty of not more than $500 upon any carrier that willingly fails, neglects, or refuses to file any report required by the bill. The bill would further provide each report would be an open record available for public inspection in accordance with the Kansas Open Records Act. The bill would prohibit the inclusion of the name and business address of the consignor of such alcoholic liquors in reports made available to the public. Under the bill, the provisions concerning the exclusion of certain information in reports made available to the public would expire on July 1, 2024, unless the Legislature reenacts such provisions.

SB 70 began as legislation designed to streamline the rules and various processes for different types of temporary permits.  The Conference Committee Report on SB 70 also amends law concerning common consumption areas; amends law related to the issuance of licenses by the Division of Alcoholic Beverage Control (ABC), Department of Revenue; creates law related to delivery of alcoholic liquors within the state and required reporting of such deliveries; amends the Liquor Control Act to allow for producers of certain fermentative products to sell wine made at a farm winery; and designates the official Kansas red and white wine grapes.  See SB 70 here (easy to read summary linked above).

Sampling Changes -  SB 70 amends the rules for sampling to the public by making rules uniform for different types of licensees.  Temporary permit holders will also be allowed to provide samples.  The bill defines “sample” in both the Liquor Control Act and the Club and Drinking Establishment Act as a serving of alcoholic liquor that contains not more than one-half ounce of distilled spirits, one ounce of wine, or two ounces of beer or cereal malt beverage. The bill specifies a sample of a mixed alcoholic beverage shall contain no more than one-half ounce of distilled spirits.  These limits also apply to retailer sampling to the public.

HB 2035 specifies notice and procedural requirements for violations of the Cereal Malt Beverage (CMB) Act and places violations of the Act under the authority of the Division of Alcoholic Beverage Control (ABC), Department of Revenue.  Link to summary of HB 2035.  See HB 2035 here.

The bill also makes changes to clarify all retail sales of liquor, CMB, and non-alcoholic malt beverage are subject to the liquor enforcement tax when sold by a liquor retailer described in KSA 79-4101. The bill specifies for provisions related to the liquor enforcement tax, “retailer” has the same meaning as in continuing law.  Governor Kelly expedited signing the bill to be sure that liquor store owners would not have to collect sales tax on CMB sales. This was an issue because the bill had not passed the Legislature in time to be effective before April 1.  See the Governor's Press Release.

The bill makes notice and procedural requirements for violations of the Act the same as for violations of the Liquor Control Act and the Club and Drinking Establishment Act.  This was requested by local law enforcement officials.

Background:  Law enacted during the 2017-2018 biennium that became effective on April 1, 2019 (2017 House Sub. for SB 13 and 2018 HB 2502), allows CMB retailers to sell beer containing no more than 6.0 percent alcohol by volume, and provides ABC with enforcement authority for violations involving the sale of such beer by those retailers. The bill makes this authority uniform across state liquor laws.



Kansas Association of Beverage Retailers       P.O. Box 3842, Topeka, KS  66604      Email KABR  

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