Kansas

The Division of Alcoholic Beverage Control headed by the Director of Alcoholic Beverage Control. The Director is appointed by the Secretary of Revenue and serves at the pleasure of the Secretary of Revenue. The Secretary of Revenue is given general power to adopt rules and regulations necessary under the Liquor Control Act. The grant of regulatory powers is intended to clothe the Secretary of Revenue with broad discretionary powers to govern the traffic in alcoholic liquors and to enforce strictly all the provisions of the Liquor Control Act

Definition of Wine in Kansas: “Wine” means any alcoholic beverage obtained by the normal alcoholic fermentation of the juice of sound, ripe grapes, fruits, berries or other agricultural products, including such beverages containing added alcohol or spirits or containing sugar added for the purpose of correcting natural deficiencies. Effective Jan. 1, 2017, the term ‘‘wine’’ shall include hard cider and any other product that is commonly known as a subset of wine. [Subsection (ll) of K.S.A. 41-102]

Laws & Rules:

• Liquor Laws & Regulations
• KSA 41-501 (Excise Tax Rates)
  • $0.30 per gallon on wine containing 16% or less alcohol by volume
  • $0.75 per gallon on wine containing more than 16% alcohol by volume
• 2021 Amendments to Kansas Liquor Laws 
• 2022 Amendments to Kansas Liquor Laws

Required: Yes

Name: Supplier Permit

Fee: $25

Expiration: June 30th of each year

Every supplier desiring to sell alcoholic liquor or cereal malt beverage to distributors in Kansas must first obtain an annual Suppliers Permit from the Director of ABC, unless the supplier is already licensed in Kansas as a manufacturer.

There is a $35 fee to file the Irrevocable Consent to Jurisdiction (Form ABC-160 ) and a $1 fee for each additional file stamped copy of the form. Wineries that hold a Special Order Shipping License for direct-to-consumer sales consumers in Kansas should have already filed form ABC-160 and will not need to file the form a second time. Wineries that have already filed ABC-160 can obtain a copy of their Irrevocable Consent to Jurisdiction letter on the KS Department of Revenue website.

Renewal applications must be completed online no more than 60 days in advance of expiration. Effective January 1, 2021, the Alcoholic Beverage Division will require online applications for all new or renewal license or permit applications. 

Resources:

• Supplier Permit Requirements
• Supplier Permit Application & Instructions (Paper)
• Irrevocable Consent to Jurisdiction
• ABC Online License Portal
• Licensee Processing Goes Completely Digital on January 1, 2021

Required: Yes

Fee: $25

Approval: 7-14 days

Expiration: June 30th of each year

Revision Required: Vintage, Size, Pack, Tax Class, COLA change

Each brand must be registered and each label must be approved prior to making shipments to Kansas distributors. Once a brand has been registered with a franchise agreement, it will be valid until the supplier notifies ABC to cancel the brand and all approved labels.  A new label registration and fee is required for each vintage and container size.

Brand and label registrations may be submitted via the Kansas ABC online system, POSSE ABC. Kansas will no longer support brand label registration submissions via Product Registration Online (PRO) effective Sept. 24, 2018.

Resources:

• Brand Registration Overview
• Brand Registration Instructions
• Online Brand & Label Registration
• Brand and Label Registration User Guide & Helpful Tips

Franchise Law: Yes

Exclusive Territories: Required

Please review the law in its entirety and consult legal counsel prior to taking any action.

K.S.A. 41-410 requires that all distributors licensed in Kansas provide to ABC a signed copy of the franchise agreement between the distributor and their supplier, manufacturer, farm winery, microbrewery or microdistillery. Termination of a franchise agreement does not require ABC approval, however, the supplier, manufacturer, farm winery, microbrewery or microdistillery must provide the ABC with 30 days advance notice. Additionally, a supplier must submit Form ABC-1007 stating that the termination, modification or alteration is not caused by the failure of the distributor to comply with any provision of the Liquor Control Act or any rules and regulations adopted pursuant thereto. The ABC will then mail a letter by certified mail to all affected parties notifying them of the pending termination.

Termination of a franchise agreement, other than by mutual agreement of the parties, must be for “reasonable cause.” In any situation where termination is disputed, the aggrieved party may file an action in state district court to determine whether there is “reasonable cause.”

No manufacturer, importer or other supplier shall grant a franchise for the distribution of a brand to more than one distributor for all or part of any designated territory.

Resources:

• K.S. Stat. 41-410. Exclusive territorial franchises, liquor and cereal malt beverage; filing of notice; termination or modification of franchise.
• Terminating My Franchise Agreement With My Kansas Distributor
• Sample Supplier Franchise Agreement for Brand Distribution in Kansas
• Kansas Map
• Affidavit of Kansas Supplier of Alcoholic Liquor or Cereal Malt Beverage Regarding Termination, Modification or Alteration of Franchise Agreement

Required: Yes

Name: Kansas Suppliers’ Monthly Report Of Shipment

Due Date: Monthly, by the 15th

Each Supplier is required to file a monthly report of shipments to Kansas distributors by filing Form ABC-1003. The report is due on or before the 15th day of the following month, even if there are no shipments to report.

Resources:

• KS Supplier’s Monthly Report of Shipments to KS Distributors

Available: No

All statutes relating to salesperson permits were repealed in 2012. See ABC Industry Notice 6-14-12.

License: Not Allowed

Interstate self-distribution is not permitted.

• ABC FAQs
• ABC Handbook for Suppliers
• Policy Memorandums
• Industry Handbooks and Notices
• Policy Memo on Product Displays, Point of Sale Items and Equipment
• Licensee Processing Goes Completely Digital on January 1, 2021