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Session of 2025
SENATE BILL No. 261
By Committee on Federal and State Affairs
2-11
AN ACT concerning alcoholic beverages; relating to eligibility for certain
licenses under the Kansas liquor control act and the club and drinking
establishment act; authorizing the director of alcoholic beverage control
to issue certain licenses to persons with certain felony convictions
when such conviction occurred more than 10 years prior to application
for a license and a determination of sufficient rehabilitation is made;
amending K.S.A. 41-2623 and K.S.A. 2024 Supp. 41-311 and repealing
the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 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 is not a citizen of the United States;
(2) who has been convicted of a felony under the laws of this state,
any other state or the United States, except as provided in subsection (h);
(3) who has had a license revoked for cause under the provisions of
the liquor control act, the beer and cereal malt beverage keg registration
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person whose license was revoked for the conviction of a misdemeanor at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 any
property, whether real or personal, where sexual relations are being sold or
offered for sale by a person who is 18 years of age or older or has forfeited
bond to appear in court to answer charges of being a keeper of any
property, whether real or personal, where sexual relations are being sold or
offered for sale by a person who is 18 years of age or older;
(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;
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(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, and amendments
thereto, unless the person 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 such person may be issued a farm winery license pursuant
to K.S.A. 41-316, and amendments thereto, or a producer license pursuant
to K.S.A. 41-355, and amendments thereto, and 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, at the time of application, have a written lease thereon;
(12) whose spouse would be ineligible to receive a license under this
act for any reason other than citizenship requirements or age, except that
this paragraph shall not apply in determining eligibility for a renewal
license or to a person whose spouse is a law enforcement officer;
(13) whose spouse has been convicted of a felony or other crime that
would disqualify a person from licensure under this section and such
felony or other crime was committed during the time that the spouse held a
license under this act;
(14) who does not provide any data or information required by
K.S.A. 41-311b, and amendments thereto; or
(15) who, after a hearing before the director, has been found to have
held an undisclosed beneficial interest in any license issued pursuant to the
liquor control act that was obtained by means of fraud or any false
statement made on the application for such license.
(b) No retailer's license shall be issued to:
(1) A person who has a beneficial interest in a manufacturer,
distributor, farm winery or microbrewery licensed under this act, except
that the spouse of an applicant for a retailer's license may own and hold a
farm winery license, microbrewery license, or both, if the spouse does not
hold a retailer's license issued under this act;
(2) a person who has a beneficial interest in any other retail
establishment licensed under this act, except that the spouse of a licensee
may own and hold a retailer's license for another retail establishment;
(3) a copartnership, unless all of the copartners are qualified to obtain
a license;
(4) a corporation; or
(5) a trust, if any grantor, beneficiary or trustee would be ineligible to
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receive a license under this act for any reason, except that the provisions of
subsection (a)(6) shall not apply in determining whether a beneficiary
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 requirements;
(2) a copartnership, unless all of the copartners would be individually
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 provisions of
subsection (a)(6) shall not apply in determining whether a beneficiary
would be eligible for a license; or
(4) a person who has a beneficial interest in a distributor, retailer,
farm winery or microbrewery licensed under this act, except as provided in
K.S.A. 41-305, and amendments thereto.
(d) No distributor's license shall be issued to:
(1) A corporation, if any officer, director or stockholder of the
corporation would be ineligible to receive a distributor's license for any
reason. 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
ineligible 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 neglect 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 subsection, the
corporation shall not be denied a distributor's license or have its
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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;
(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 provisions of
subsection (a)(6) shall not apply in determining whether a beneficiary
would be eligible for a license; or
(4) a person who has a beneficial interest in a manufacturer, retailer,
farm winery or microbrewery licensed under this act.
(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, microdistillery license or farm winery
license shall be issued to a:
(1) Person who has a beneficial interest in a manufacturer or
distributor licensed under this act, except as provided in K.S.A. 41-305,
and amendments thereto;
(2) person, copartnership or association that has a beneficial interest
in any retailer licensed under this act or under K.S.A. 41-2702, and
amendments thereto, except that the spouse of an applicant for a
microbrewery or farm winery license may own and hold a retailer's license
if the spouse does not hold a microbrewery or farm winery license issued
under this act;
(3) copartnership, unless all of the copartners are qualified to obtain a
license;
(4) 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
(5) a trust, if any grantor, beneficiary or trustee would be ineligible to
receive a license under this act for any reason, except that the provisions of
subsection (a)(6) shall not apply in determining whether a beneficiary
would be eligible for a license.
(g) If the applicant is not a Kansas resident, no license shall be issued
until 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
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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 any property,
whether real or personal, where sexual relations are being sold or offered
for sale by a person who is 18 years of age or older or has forfeited bond to
appear in court to answer charges of being a keeper of any property,
whether real or personal, where sexual relations are being sold or offered
for sale by a person who is 18 years of age or older;
(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.
(h) (1) The director may issue a retailer's license to a person who has
been convicted of a felony under the laws of the United States if:
(A) Such conviction was for a felony offense that was not a violent
felony;
(B) prior to the date the application for a license is submitted, 10
years or more have elapsed since the person satisfied the sentence
imposed or the terms of a diversion agreement or was discharged from
probation, a community correctional services program, parole, postrelease
supervision, conditional release or a suspended sentence; and
(C) the director determines that the applicant has demonstrated that
such person has been sufficiently rehabilitated to warrant the public trust.
(2) For purposes of this subsection, "violent felony" means any felony
under the laws of the United States that is substantially the same as any
violent felony as defined in K.S.A. 21-6804(z), and amendments thereto, or
any sexually violent crime as defined in K.S.A. 22-3717, and amendments
thereto.
Sec. 2. K.S.A. 41-2623 is hereby amended to read as follows: 41-
2623. (a) No license shall be issued under the provisions of this act to:
(1) Any person described in K.S.A. 41-311(a)(1), (2), (4), (5), (6),
(7), (8), (9), (12), (13) or (15), and amendments thereto, except that:
(A) The provisions of K.S.A. 41-311(a)(2), and amendments thereto,
shall not apply to the issuance of a drinking establishment license or a
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caterer's license if the director determines that the applicant for such
license satisfies the conditions for the issuance of a retailer's licensed
under the provisions of K.S.A. 41-311(h), and amendments thereto; and
(B) the provisions of K.S.A. 41-311(a)(7), and amendments thereto,
shall not apply to nor prohibit the issuance of a license for a class A club to
an officer of a post home of a congressionally chartered service or fraternal
organization, or a benevolent association or society thereof.
(2) A person who has had the person's license revoked for cause
under the provisions of this act.
(3) A person who has a beneficial interest in the manufacture,
preparation or wholesaling or the retail sale of alcoholic liquor or cereal
malt beverage or a beneficial interest in any other club, drinking
establishment or caterer licensed hereunder, except that:
(A) A license for premises located in a hotel may be granted to a
person who has a beneficial interest in one or more other clubs or drinking
establishments licensed hereunder if such other clubs or establishments are
located in hotels.
(B) A license for a club or drinking establishment that is a restaurant
may be issued to a person who has a beneficial interest in other clubs or
drinking establishments that are restaurants.
(C) A caterer's license may be issued to a person who has a beneficial
interest in a club or drinking establishment and a license for a club or
drinking establishment may be issued to a person who has a beneficial
interest in a caterer.
(D) A license for a class A club may be granted to an organization of
which an officer, director or board member is a distributor or retailer
licensed under the liquor control act if such distributor or retailer sells no
alcoholic liquor to such club.
(E) Any person who has a beneficial interest in a microbrewery,
microdistillery or farm winery licensed pursuant to the Kansas liquor
control act may be issued any or all of the following:
(1)(i) Class B club license;
(2)(ii) drinking establishment license; and
(3)(iii) caterer's license.
(F) Any person who has a beneficial interest in a manufacturer
licensed pursuant to the Kansas liquor control act may be issued one
drinking establishment license.
(4) A copartnership, unless all of the copartners are qualified to
obtain a license.
(5) A corporation, if any officer, manager or director thereof, or any
stockholder owning in the aggregate more than 5% of the common or
preferred stock of such corporation would be ineligible to receive a license
hereunder for any reason other than citizenship requirements.
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(6) A corporation, if any officer, manager or director thereof, or any
stockholder owning in the aggregate more than 5% of the common or
preferred stock of such corporation, has been an officer, manager or
director, or a stockholder owning in the aggregate more than 5% of the
common or preferred stock, of a corporation that:
(A) Has had a license revoked under the provisions of the club and
drinking establishment act; or
(B) has been convicted of a violation of the club and drinking
establishment act or the cereal malt beverage laws of this state.
(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 provisions of
K.S.A. 41-311(a)(6), and amendments thereto, shall not apply in
determining whether a beneficiary would be eligible for a license.
(b) No club or drinking establishment license shall be issued under
the provisions of the club and drinking establishment act to a person who
does not own the premises for which a license is sought, or does not, at the
time the application is submitted, have a written lease thereon, except that
an applicant seeking a license for a premises that is owned by a city or
county, or is a stadium, arena, convention center, theater, museum,
amphitheater or other similar premises may submit an executed agreement
to provide alcoholic beverage services at the premises listed in the
application in lieu of a lease.
Sec. 3. K.S.A. 41-2623 and K.S.A. 2024 Supp. 41-311 are hereby
repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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