This act repeals the current provisions regulating nonintoxicating beer and requires such beer to be regulated in the same manner as other intoxicating liquors.

Currently, a liquor license may not be denied, suspended, or revoked based solely on the fact that an employee has a felony conviction unrelated to the manufacture or sale of alcohol if the employee does not directly participate in retail sales. Under this act, the employee would no longer be prohibited from directly participating in retail sales.

This act defines a "wine manufacturer" as a person, partnership, association, or corporation, who has properly procured a license, and who manufactures in excess of two hundred gallons of wine per calendar year.

Currently, it is a violation for a person with a license to sell liquor to sell liquor, or offer to sell liquor, brewed, manufactured or distilled by one manufacturer in substitution for, or with the representation that any such liquor is the product of another brewer, manufacturer, or distiller. Under this act, it shall not be a violation if such licensee sells, or offers to sell, wine or brandy, as long as the manufacturer of the wine or brandy has provided the Supervisor of Alcohol and Tobacco Control with a copy of the certificate of label approval issued by the Alcohol and Tobacco Tax and Trade Bureau, and if necessary, has properly registered such label or name with the appropriate state agency.

This act allows certain charitable, fraternal, religious, service, or veterans' organizations that are exempt from federal taxes and have a license to sell intoxicating liquor by the drink on their premises to open on Sundays at 9:00 a.m. instead of 11:00 a.m.

This act allows a restaurant bar without an onsite brewery that serves 45 or more different types of draft beer to sell 32 fluid ounces or more of beer to customers for consumption off the premises.

Under this act, no person or business shall have more than five liquor licenses, rather than three.

This act repeals certain liquor control provisions pertaining to wholesalers, including exceptions to the wholesaler price regulations and provisions requiring wholesalers to file a schedule with the Supervisor of Alcohol and Tobacco Control in order to operate. Instead, wholesalers are required to make product information, including price, available to retailers no later than five days prior to the first day of the month in which the pricing will be effective. The price provided shall become effective on the first date of the next month and remain in effect until the last day of that month. Supplemental pricing information may be provided to retailers for items that were unintentionally left off the regular information listing after approval by the Division of Alcohol and Tobacco Control.

This act changes the procedure allowing wholesalers to take delivery orders for upcoming months and also changes the requirements for "delayed shipments" under the division's rules and regulations.

This act allows wholesalers to offer retailers merchandise at prices which are below the wholesaler's cost only if such merchandise is specifically designated as "close-out merchandise" when providing the monthly pricing information. The act forbids wholesalers from buying more of such "close-out merchandise". Such "close-out merchandise" shall be designated as such for not less than six consecutive months. After such time, a wholesaler may remove items from its "close-out" designation by no longer identifying them as such on its monthly pricing information.

A Kansas City festival district's promotional association shall obtain a permit from the division of alcohol and tobacco control to sell alcohol and to conduct festival events at the businesses and common areas within the district upon approval by the city. The festival district must be within a community improvement district in the city. The association must provide certain information in their plan to the city, including a legal description of the district and its common areas, information about participating businesses, the specific calendar of events, and description of the festival activities, proof of adequate insurance, and a detailed security plan. There shall be no more than 25 events per year and two events per month. The events shall last no more than forty-eight hours.

Prior to approving the plan, the city shall notify all property owners in the proposed district and within 500 feet of such district's boundaries. The city shall also hold a public hearing at least 30 days after providing the notice to obtain public comment. The city shall not approve any plan unless the promotional association has obtained written approval from at least 50% of the property owners within the district and within 185 feet of its borders.

For no more than ten twenty-four hour periods in a year, such promotional association may permit customers to leave an establishment within the district after purchasing alcohol and consume the beverage in the district common areas or another establishment, but no person shall be allowed to take a alcoholic beverage outside the festival district boundaries.

Minors shall not be allowed to enter the district during a festival event that serves liquor. The permit holder is solely responsible for any alcohol violations occurring within the common areas. The promotional association may be assessed a civil fine of not more than $5,000 for a violation. If the association is found to be responsible for violations at three separate events, its permit shall be revoked and not reissued.

This act is similar to SB 426 (2009), SB 396 (2009), HB 159 (2009), HB 943 (2009), SCS/SB 188 (2009), a provision of SS/SCS/HB 376, and HCS/SB 171 (2009).

SUSAN HENDERSON MOORE