CITY COMMISSION AGENDA ITEM

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Department:

City Attorney’s Office

Commission Meeting Date:  March 5, 2019

Staff Contact:

Maria Garcia, Assistant City Attorney

Recommendations/Options/Action Requested:

Adopt on first reading, Ordinance No. 9655, pertaining to the sale of beer containing not more than six percent (6.0%) alcohol by volume by any person possessing a cereal malt beverage license, if appropriate.

Executive Summary:

In 2017, the Kansas Legislature passed House Sub. for SB 13, which amends the Kansas Liquor Control Act and the Kansas Cereal Malt Beverage Act. Under the new law, beginning April 1, 2019, any person licensed to sell Cereal Malt Beverages (CMB) will be allowed to sell beer containing not more than six percent (6.0%) alcohol by volume. Convenience stores and grocery stores are among the examples of entities that might have a CMB license. The new law does not create any changes from the City’s perspective; it merely allows someone licensed to sell CMB to now sell beer with a higher alcohol content.

Ordinance 9655 amends the City Code by adding a definition for “beer,” and states that a person who is licensed locally to sell CMB would be able to sell beer with an alcohol content not to exceed six percent (6.0%). An amendment is made to Article 2 to clarify that the license needed by someone to sell CMB is called a “cereal malt beverage license,” rather than a general “license.” Additionally, definitions are updated to match the statutory definitions. For example, state statute includes “alcoholic candy” in its definition of “alcoholic liquor,” so the proposed ordinance amends the City Code to reflect that. See K.S.A. 41-102. As with the state law, the effective date of the ordinance is April 1, 2019.

Note: The 2/19/19 City Manager’s Report advised the Commission of concern among some Lawrence liquor store owners that CMB licensees will be able to sell beer with higher alcohol content without any change to CMB licensees’ hours of operation. Those hours of operation are longer than retail liquor store hours, which are set by state law. CMB licensee hours can be adjusted by the City, but retail liquor hours can only be changed by the state. To address the discrepancy, the City  could reduce the hours of operation for CMB licensees. Staff awaits direction from the Commission on whether this is an item it desires to address.

Strategic Plan Critical Success Factor

Other 

Fiscal Impact (Amount/Source):

The proposed ordinance creates no new fiscal impact.

Attachments:

Ordinance No. 9655

House Substitute for Senate Bill No. 13

 

 

Reviewed By:

(for CMO use only)

TM

DS

CT

BM