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  • 01 Apr 2017 12:34 PM | Anonymous

    RSVP here:  Kansas City Retailers Conference and Legislative Luncheon 

    Kansas City Retailers Conference and Legislative Luncheon Hotel Room Block and Sunday Board Mtg - Best Western Premier, 10401 France Family Drive, KC, KS 66111 913-334-4440 SEE EACH EVENT FOR LOCATIONS
    Date: 21 Apr 2017 4:00 PM EDT

    Kansas City Retailers Conference and Legislative Luncheon

    Friday, Saturday and Sunday - April 21-22-23, 2017

     

    SCHEDULE 

     

    FRIDAY SOCIAL - AD ASTRA SELECTIONS 

    4:00 pm   - 7:00 pm      

     Ad Astra Selections, 9892 Pflumm Road, Lenexa, KS 66215

    SATURDAY LEGISLATORS LUNCHEON & ROUNDTABLE:

      

    12:00 - 1:30 pm   Legislators and Retailers Luncheon - Informal Roundtable with State Legislators.  

    Worldwide Wine and Spirits, LLC., 
    17501 W 98th Street #35 - 38, Lenexa, KS 66219

     

    Changes to Kansas beer laws are pending action at the Kansas Legislature.  Do not miss this important meeting!

     

    1:30 pm  - 3:00 pm   Retailers Strategy Session

    If you are a member of KABR, you should plan to attend.

     

    Saturday Dinner:   

     

    6:30 - 8:30 p.m.  Dinner - Join other retailers for dinner - separate checks.

     

    SUNDAY EVENTS - 

     

    9:30am - 12:00 pm KABR Official Business Meeting of the Board of Directors 

    1st Floor Conference Room, Best Western KC Speedway Inn at the Legends

    All Members are Encouraged to Attend the Official Business Meeting.

     

    MAKE YOUR HOTEL RESERVATIONS AT BEST WESTERN PREMIER KC SPEEDWAY BY APRIL 7!  913-334-4440

     

    Kansas Liquor Retailers have achieved impressive success at the Kansas Legislature over the past eight years, and we have done so by working together.  Our greatest challenges are yet to come - join us! 

     

    THANK YOU EVENT HOSTS:

    AD ASTRA SELECTIONS
    WORLDWIDE WINE AND SPIRITS
    KANSAS WINE AND SPIRITS WHOLESALERS ASSOCIATION



    More information and online registration: Kansas City Retailers Conference and Legislative Luncheon


  • 30 Mar 2017 3:50 PM | Anonymous


    Very Important:  KABR Members – Please Join the KABR Teleconference Friday, March 31 at 12:30 p.m.    Dial 1-877-278-8686 and enter code 809216. Please mute your phone until you need to speak.  

    Update on 3.2 Discussions

    Conversations with grocery and convenience stores regarding the 3.2 issue took a jump forward yesterday when Uncork representatives changed their position regarding a moratorium on future liquor expansion legislation. 

    The retailers groups have said that they are willing to explore a solution to the anticipated changes in the 3.2 cereal malt beverage market but would need assurance that the Uncork proponents would not be pushing further liquor deregulation in the near future.

    Spokesmen for Walmart and others initially insisted that such an agreement would be a violation of federal anti-trust laws – restriction of trade.  KABR asserted that retailers would need to anticipate a stable regulatory environment for a significant time period. 

    Now it appears that the proponents may be willing to state on the record (before the committee and in the committee records) that this 3.2 proposal satisfies their legislative agenda and they would agree that a ten year timeframe is reasonable to allow for the impact of the new law on all licensees to be evaluated and reported by the Division of ABC – before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale.

    KABR proposed language ordering the Division of ABC to submit a report to the 2027 Legislature (in ten years) in order to establish that timeframe.  That report would include numbers of licensees on an annual basis over ten years, tax revenue/sales numbers from CMB and liquor products, density issues – impact on rural markets, social impact – DUIs, theft, etc.

    Other issues in contention are:

    • 5.0 or 6.0 Alcohol by Volume beer sales allowed for cmb retailers. Uncork requested 8.99 ABV – the Oklahoma law.  The beer wholesalers indicate that the number should be 6.0 ABV.  The Committee Chairman’s recommendation was 7.5%, but he has indicated he had picked up that number from conversations and is not committed to it.  (Liquor retailers sell CMB.)
    • Allow liquor stores to sell other products, up to 20% of their sales could come from these other items.  Tobacco and lottery would be allowed, but not considered part of the 20% calculation. This was proposed by the Chair. Convenience stores oppose the tobacco portion, but will consider it for the implementation date.
    • Implementation date:   Retailers suggest implementing the law in 2020, but Uncork insists it needs to happen by or before January 1, 2019.  The Oklahoma law begins October 1, 2018 and the Colorado law begins January 1, 2019. CMB retailers have been told that the supply of 3.2 will be in doubt by 2019 because of these law changes.  Read more about this below.
    • Moratorium suggested language – “Do the members of Uncork believe this is a reasonable timeframe to allow for the impact of this law on all licensees to be measured before the Legislature considers additional, substantive changes to state law regarding where alcohol products are offered for sale?”
    • Rules and regulations amended to apply price nondiscrimination rules across licenses (i.e. for CMB and liquor retailers).
    • Division of ABC will have authority to implement rules and enforce them in CMB outlets.
    • No CMB retailer could sell for less than acquisition cost plus applicable tax except as otherwise provided by law and rules.
    • Distributors request provision to establish minimum order quantities by case or dollar value.
    • Distributors request provision to grandfather CMB and strong beer franchises as of January 1, 2017.
    • Wine is removed from the legislation.

    The discussions have been directed and facilitated by the Speaker of the House and the House Commerce Committee Chairman.  The Speaker would like to see a public committee hearing scheduled very soon.   Things are moving quickly and KABR will keep you informed.

    Is 3.2 Really Going Away?

    We have had the opportunity to speak with many KABR members over the past 2 weeks who ask this question. KABR has not adopted the belief that 3.2 is going away.  Utah and Minnesota have not changed their statutes, and brewers will be making products for those states and for the large sports venues that serve lower alcohol beers.  Read the article.

    We do know, however, that the Speaker of the House and other legislators have decided that the decreasing availability of 3.2 products, and the variety of packages, is an issue they want to resolve.  Read the Anheuser-Busch letter being passed around the Capitol.  Numerous legislators have told us that they will support our opposition to Uncork liquor expansion, but they expect the Legislature to address 3.2 supply concerns for CMB retailers.   

    Some legislators and others have suggested that craft brewers might be willing to fill any gaps that might show up on CMB outlet shelves, but of course, the major CMB retailers are interested in the volume products that have the advertising power of the big brewers behind them.  See note from Minhas and City Brewing.

    The discussions that have occurred between the retailers organizations and Uncork have focused only on this 3.2 question.   The primary motivation for this work is to be able to dictate the terms of the discussion rather than negotiating a surrender to a legislatively engineered proposal that would look like many of the broad facilitated “compromise” proposals we have seen in the past.     

    If the proposal at hand is approved, it would be a Kansas solution that maintains separate sale and licensing for limited alcohol content beer in CMB outlets and and higher alcohol content beer, wine and spirits in the state regulated, Kansas owned independent liquor stores for the near future.  Kansas would not take the route being taken by Oklahoma expanding beer and wine sales and the Colorado model expanding sales of all beer, wine and spirits.   

    It is a risk management question for retailers, and one that KABR takes very seriously.

    In Other News

    Today, the House passed HB 2362 on a vote of 96-28.  The bill establishes a $20 modernization fee on license applications and renewals for the Division of ABC to use for online technology maintenance and upgrades.

    Today, the House advanced Sub HB 2277 to final action Monday.  The bill creates common consumption areas designated by cities and counties.

    Yesterday, the House Committee on Taxation passed HB 2395 –establishing a flat income tax rate.

    Contact:   

    Brian Davis, President  316-990-1425  Email President

    Amy Campbell  785-969-1617   Email Lobbyist

                                          


  • 30 Mar 2017 3:49 PM | Anonymous

    In Other News

    Today, the House passed HB 2362 on a vote of 96-28.  The bill establishes a $20 modernization fee on license applications and renewals for the Division of ABC to use for online technology maintenance and upgrades.

    Today, the House advanced Sub HB 2277 to final action Monday.  The bill creates common consumption areas designated by cities and counties.

    Yesterday, the House Committee on Taxation passed HB 2395 –establishing a flat income tax rate.


  • 27 Mar 2017 8:40 AM | Anonymous

    HB 2282 - Uncork & the 3.2 issue

    HB 2366 - Keg Registration

    HB 2277 - Common Consumption Areas

    HB 2362 - Division of ABC Modernization Fees

    Meetings on Uncork and 3.2 Issue

    Today, there will be more meetings held to discuss the Uncork bill and whether or not there might be a negotiated solution for the 3.2  issue.  These meetings were requested by the Speaker of the House and House Commerce Committee Chair.

    These meetings are exploring the possibility that there could be a negotiated solution to the “crisis” expressed by the grocery and convenience stores – that changes in Oklahoma and Colorado are reducing the 3.2 products available for sale on their shelves and this will only get worse as these neighboring states implement strong beer sales in 2018 and 2019.

    Discussion Concepts:

    • Resolve 3.2 concerns by allowing grocery and convenience stores to sell beer products up to 5.0 or 6.0 ABV (alcohol by volume) – effective date delayed until 2019 or 2020
    • Wine sales removed from the bill – not included
    • Moratorium on liquor expansion legislation for ten years
    • Allow liquor retailers to sell other products, including tobacco and lottery – sales of other products would not exceed 20% of overall sales except that tobacco and lottery could exceed the limitation
    • Create a new definition of beer products between 3.2 ABW (same as 4.0 ABV) and 5.0 or 6.0 ABV that can be sold by both liquor retailers and cmb retailers – and include both types of retailers in the price nondiscrimination regulations for distributors   See list of products with ABV (limited)  See list 2 of products with ABV (some other than CoorsMiller and AB)

    Lobbyists have been asked to meet in the office of the Speaker of the House this afternoon.

    All KABR members are encouraged to participate in the KABR Teleconference at 4:30 p.m. TODAY for an update from these meetings  Call 1-877-278-8686 and enter code 809216.  Please mute your phone.  We will have an opportunity for questions and comments after the update.

    Many of you have emailed your input and that is much appreciated. 

    HB 2366 – Keg Registration   Read HB 2366.
    This bill has not passed the House Federal and State Affairs Committee, but we expect it may be amended onto one of the following bills on the floor of the House.

    Sub for HB 2277 – Common Consumption Areas    Read a description.  Read Sub for HB 2277

    The bill was introduced by the House Committee on Local Government at the request of a representative of the City of Lenexa. In the House Committee hearing, a representative of the City of Lenexa and a representative of the League of Kansas Municipalities (LKM) testified in support of the bill. Written-only proponent testimony was submitted by the Lenexa Chamber of Commerce and a Lenexa business owner. Proponents stated creating a place for citizens to enjoy others’ company and to participate in civic, cultural, and social life is part of Lenexa’s Vision 2030 plan and the City intends to accomplish these goals by constructing the Lenexa Public Market, a city building that would allow the sale of alcoholic beverages and the sellers would have booths or kiosks rather than enclosed shops.  The concept is that people could carry their beverage with them throughout the common consumption area. 

    The Committee established a subcommittee in order to create a bill that could allow this and also provide for liability for the holder of the common consumption area permit and the various licensed retailers or restaurants within the area.  The issue is somewhat controversial because there are other developers with an interest in allowing people to carry alcoholic beverages outside of licensed premises through areas of a city, including streets and sidewalks, and the licensed retailers would prefer to not be liable for the actions of customers once they leave their licensed premises.  The bill would allow this.

    This bill continues to make licensees responsible, while allowing for the common consumption areas when a city or county passes an ordinance to allow it.  There are other requirements in the bill, including that each licensee would have to request permission to participate.

    HB 2362 – ABC Modernization Fee   Read a description.  Read HB 2362.

    Creates a $20 per license “modernization fee” for the Division of Alcoholic Beverage Control to be paid for each license application or renewal.  The bill would reduce the initial application fee for a liquor license from $50 to $30 plus the $20 modernization fee. The $20 modernization fee also would be added to the renewal application fee, which would remain at $10.  Fee sunsets in 2022.  “All moneys credited to the alcoholic beverage control modernization fund shall be used by the department of revenue only for the purpose of funding the replacement of the work processes, computer hardware and software and related equipment associated with the division of alcoholic beverage control's functions related to licensing, permitting and case management and supporting administrative processes, including maintenance, operation, repair and upgrade of such computer hardware, software and related equipment.”  Passed by the Committee on Appropriations March 22.

    Contact:   

    Brian Davis, President  316-990-1425  Email President

    Amy Campbell  785-969-1617   Email Lobbyist

                                          


  • 20 Mar 2017 1:55 PM | Anonymous

    HB 2282 - Uncork & the 3.2 issue and

    HB 2366 - Keg Registration

    Retailers Meet to Discuss HB 2282 & 3.2 beer

    Meetings are being held to discuss the Uncork bill and whether or not there might be a negotiated solution for the "3.2 issue".  

    Where We Are Today:

    HB 2282 was referred to House Appropriations Committee instead of receiving a committee vote at the end of February.  The House Speaker asked Chair Les Mason to convene the retailers with Uncork supporters to develop a bill that could go to the full House.

    KABR members have seen this top-down pressure before.  In spite of the hours of discussion we have given the issue in the past, Uncork proponents complain that retailers never bring solutions and just say no.  

    At this point, no one knows what will happen with the bill next.  It seems that the Commerce Committee members are relatively solid in their view of the bill.  We do not know if leadership intends to move the bill through alternate channels, but we are aware that this issue is likely to pop up as a floor amendment to other bills. 

    Certainly, the overall landscape has changed.  With Oklahoma and Colorado adopting major liquor law changes since May of 2016, many legislators are telling us that the 3.2 issue will need to be solved.  We continue to dispute whether or not there is any crisis coming at all.  Legislators have received the message that 3.2 retailers are going to have problems putting 3.2 on their shelves - and will have fewer products to sell after Oklahoma and Colorado implement changes in their beer laws.

    Meetings:

    Last week, at the request of the committee chairman, Amy Campbell, KABR, and Whitney Damron, KARLL, met with representatives of the convenience stores and Uncork, as well as both the Wine and Spirits Wholesalers and the Beer Wholesalers, to go over a list of amendments or "starting points" suggested by the chairman.   Read the chairman's proposed amendments here.  The chairman's suggestions are only a starting point for discussion.  Key concerns were discussed, including the level of alcohol by volume (ABV) of beer products recommended for sale to replace the potential loss of 3.2 products, a delayed implementation date, and how trade practices and distribution laws would apply to retailers who currently sell CMB and do not operate under the same rules.  The group is scheduled to meet again.  

    Over the years, KABR has held numerous discussions about how these bills work or do not work.  Moving forward, Kansas retailers are facing the risks associated with the actions of our surrounding states with Beer and Wine sales given to grocery and convenience stores in Oklahoma, and Beer, Wine and Liquor Sales expanded to grocery in Colorado.  

    It is fortunate that most legislators appear to be indifferent to copying these states.  However, there is legislative pressure to address the concerns about 3.2.

    KABR will continue to participate in these meetings.  Members are encouraged to join our bimonthly teleconferences or to communicate with our lobbyist or President as we move forward.  

    +++++++++++++++++++++++++++++++++++++

    Amy Campbell, Lobbyist  785-969-1617 Email Lobbyist

    Brian Davis, President 316-990-1425  email Brian

    HB 2366 Beer and Keg Registration Act

    KABR provided neutral testimony on HB 2366 before the House Federal and State Affairs Committee on Wednesday, March 15.  The purpose of the legislation is to add “hard cider” to beer and cereal malt beverage, the products subject to the Beer and Cereal Malt Beverage Keg Registration Act.  Read the testimony.

    Although the objective is simple, KABR members are concerned about the potential for amendments.  The compromise that was crafted in 2002 between the retailers and the proponents of keg registration was a careful balance.  The compromise sought to balance the public safety objective of deterring adults from providing kegs to youth with the need to maintain reasonable privacy protections for individuals who purchase alcohol.  Retailers are accustomed to implementing the State’s public safety goals as an obligation of holding a liquor license, but keg registration act takes that one step further – requiring retailers to gather, hold and provide customer’s personal information to law enforcement without a warrant.  We believe that is a task that should be carefully regulated.

    The language of the bill adds “hard cider” to the products in the keg registration statute, and changes the name of the Act to the Keg Registration Act.  In order to change the name, the bill includes Liquor Control Act licensing statutes, where they refer to the keg registration act. 

    Committee Chair Judge Barker said that he was a part of a judicial group and substance use prevention organization that supported keg registration at the time of its passage.  Rep. Smith, a law enforcement officer, indicated that he, too, was a supporter.  Both said they believe that the statutes continue to have a deterrent effect.

    KABR will watch this bill closely for potential amendments.

                                          


  • 07 Mar 2017 8:57 PM | Anonymous

     

    Senators defeated SB 175 today by voting 37-1 to strike the enacting clause of the bill.  After a little more than 2 hours debate on the various sections of the bill, Senator Pyle offered the motion to strike the enacting clause - which has the effect of defeating the legislation.

    A motion by Senator Francisco was adopted to allow the deduction of losses from sources of passive income - such as rental properties or royalties.  Then, Senator Suellentrop made a motion to divide the bill -  which required senators to vote on each section of the bill.  After most of the sections had been voted down, the Pyle motion had the effect of ending the debate and killing the bill.

    Senator Masterson called it a "colossal waste of time".

    Senate leadership indicated that the Governor had requested a hearing for his bill and that was the point of the Senate debate.  

                                          


  • 07 Mar 2017 10:06 AM | Anonymous
     

     

    Today, the Senate will debate SB 175 - the Governors Tax Plan on General Orders.  The Senate session begins at 2:30 p.m.  You can listen to the debate at www.kslegislature.org by selecting "Listen to the live proceedings in the Senate".

    Click here to read the bill description.

    Passive income received from rents and royalties would be subject to income tax beginning with tax year 2017.  The bottom individual income tax bracket would remain at 2.7 percent - rather than the scheduled reduction from 2.7 percent to 2.6 percent. The community services contribution income tax credit also would be repealed beginning with tax year 2018. 

    The annual report fee paid to the Secretary of State for all for-profit business entities would be increased from $40 to $200 beginning in FY 2018.  The fee would apply to all shareholders and partners owning at least 5.0 percent of business entities.

    Liquor Enforcement Tax Provisions - The rate of the liquor enforcement tax would be increased from 8.0 percent to 16.0 percent on July 1, 2017. 

    Cigarette Tax Provisions - The cigarette tax rate would be increased from $1.29 to $2.29 per pack on July 1, 2017. An inventory tax (floor tax) of $1.00 per pack would be imposed on cigarettes on hand as of July 1 and would be payable as of October 31, 2017. 

    Tobacco Products Tax Provisions - The tobacco products tax rate would be increased from 10.0 percent to 20.0 percent of wholesale on July 1, 2017.  An inventory tax (floor tax) equivalent to 10.0 percent of wholesale relative to tobacco products on hand as of July 1 would be payable as of July 31, 2017.


  • 23 Feb 2017 4:42 PM | Anonymous

    With all legislators planning to go home later today and not return to Topeka until March 6, this presents a great opportunity to talk to your legislators away from the Capitol.  Plan to attend Legislative Forums in your area.  It is good for your legislators to see you in person.  They need to know that you are paying attention and supporting them.

    Hopefully you are already on your legislator's email list and receive their newsletters and information about local forums.  You can also reach out to them and ask if they have time to meet with you during this break.

    Saturday, February 25

    • Garden City - 10:00 am @ St. Catherine Hospital, Classroom B (301 E Spruce)
    • Lenexa - 10:00 am @ Lackman Library (15345 87th Pkwy)
    • Overland Park - 10:00 am @ Central Resource Library (9875 W 87th St)
    • WaKeeney - 8:00 am @ Jake & Chet's Cafe (233 S 1st St)
    • Hill City - 9:30 am @ Buck's Bar & Grill (222 N Pomeroy Ave)
    • Hoxie - 11:00 am @ Bowen Scout House (1041 Sheridan St)
    • Colby - 1:00 pm @ Colby Community College (1255 S Range)
    • Oakley - 2:30 pm @ Buffalo Bill Cultural Center (3083 US-83)
    • Quinter - 4:00 pm @ Jay Johnson Public Library (411 Main St)
    Sunday, February 26

    Wichita - SOUTH CENTRAL LEGISLATIVE DELEGATION PUBLIC FORUM -  2:00 - 4:00 p.m. - Wichita Public Library, Alford Branch, 3447 S Meridian Ave, Wichita, KS 67217

    If you know of other forums we can share with our members, please send to Amy at campbell525@sbcglobal.net


  • 23 Feb 2017 4:09 PM | Anonymous
     

     

    Today, the House Taxation Committee met at the rail during a break in order to pass HB 2315 - the Governor's Tax Plan including the liquor enforcement tax increase to 16% - out of committee "without recommendation".  That moves the bill to the full House.  Read the Chairman's statement here.  When a bill is referred "without recommendation", it means the committee does not recommend the bill, but there is a desire to have the full chamber vote on it.

    The Senate Assessment and Taxation Committee has also sent SB 175 - their version of the Governor's Tax Plan to the full Senate.

    The House committee also crafted a new income tax bill similar to HB 2178, except that it includes only two income tax brackets.  The new bill, HB 2370, was passed by the committee and recommended favorably for passage to the full House.

    We do not know if these bills will be rushed to action today.

    The Legislature plans to adjourn today for a week long break, to return March 6.


  • 22 Feb 2017 3:00 PM | Anonymous
     

     

    Today - the Senate failed to have enough votes to override the Governor's veto of Sub for HB 2178 amending income tax rates and categories.  This sends the House and Senate Tax Committees back to the drawing board and could bring forward some of the Governor's tax proposals, including motor fuels, tobacco and liquor enforcement tax increases.

    Last week, the House of Representatives passed Sub for HB 2178, a bill to raise state revenues by rolling back much of Governor Brownback's signature income tax legislation.  It increased rates, added a third higher income category, and reversed the LLC exemption, among other changes.  A bipartisan alliance of Democrats and moderate Republicans passed the bill last week with 83 votes.

    Last Friday, the Senate made a very unusual move to debate the bill on Senate General Orders rather than refer the bill to a committee, which is where newly passed House Bills typically are sent.  After a heated debate, the Senate passed the tax bill with 22 votes, sending it to the Governor.

    Last night, the Governor announced at the Kansas Chamber of Commerce Banquet that he would veto the bill.  A veto override requires 2/3 vote in each chamber - a high bar.

    Today, the House was able to override the veto with 79 votes, but the Senate mustered only 24 - 3 votes shy of the 27 votes needed.  The bill is dead.

    The House and Senate are scheduled to take a break after Thursday - Turnaround Day - and come back March 6 to resume their work.  Turnaround Day is the deadline for all non-exempt bills to pass their chamber of origin.  If bills do not meet that deadline, they will need to be blessed (referred to an exempt committee) or die.  

    While the House has already adopted a budget rescission bill - to amend current year funding for the fiscal year ending June 30 2017 - the Senate has not yet debated a rescission bill on the floor.



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

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