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HB 2376

Transferring the licensure of on-premise cereal malt beverage retailers and off-premise cereal malt beverage retailers from cities and counties to the alcoholic beverage control division of the department of revenue; allowing continued local licensure by cities or counties.

2025-2026 Regular Session

Centralizes CMB retailer licensing and enforcement under the Kansas ABC, moving them from cities/counties to the state level.

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Bill Summary · HB 2376

Summary — HB 2376 (As Amended by House Committee on Federal and State Affairs)

Status: Committee report recommending passage as amended. Introduced: February 3, 2025. Requesting agency: Kansas Department of Revenue.

Purpose / Intent

To centralize licensing and regulatory authority for cereal malt beverage (CMB) retailers—who sell beer/CMB up to 6.0% ABV—by moving issuance, enforcement, and related regulatory duties from cities/counties to the Alcoholic Beverage Control (ABC) division of the Kansas Department of Revenue, while preserving the ability of local governments to require an additional local occupational license.

Key provisions

  • Creates two state-issued CMB retailer license classes:
    • Off‑premise CMB retailer license (sales for off‑site consumption).
    • On‑premise CMB retailer license (sales for consumption on the licensed premises; resale prohibited).
  • Replaces the current CMB “stamp” system with state CMB licenses issued by the ABC Director; applicants apply to the ABC Director (including railway licenses).
  • License fees:
    • $50 — on‑premise or off‑premise CMB retailer license.
    • $100 — railway CMB retailer license.
    • Local governments may still require an additional local license and may set a local fee up to $200 (up from prior local max $50).
  • Licenses: valid one year from the effective date.
  • Application & notice changes:
    • ABC Director develops the application form (removes prior residency question).
    • ABC Director must notify county township officials of applications and consider township recommendations.
  • Enforcement, inspections, and discipline:
    • ABC agents and law enforcement have an immediate right of entry/inspection of licensed premises (consent not revocable).
    • ABC Director (or agents) may issue citations for violations of the Kansas Liquor Control Act (KLCA), Club & Drinking Establishment Act (CDEA), and Cereal Malt Beverage Act (CMBA).
    • Suspension/revocation proceedings conducted by ABC under the Kansas Administrative Procedure Act (KAPA); city/county governing bodies may request hearings (must state reasonable cause).
  • Definitions amended across the KLCA, CDEA, and CMBA to include CMB licensees and align enforcement authority.

Who is affected

  • CMB retailers (on‑ and off‑premise, railway sellers).
  • Cities and counties (lose primary licensing role but can require local occupational licenses).
  • Department of Revenue / ABC division (increased licensing/enforcement duties).
  • Township officials (receive notice and may make recommendations).
  • Law enforcement and administrative hearing bodies.

Fiscal & administrative impact

  • Estimated additional licensing revenue: $80,250 annually beginning FY2026 (based on 3,210 licenses and a $25 per-license fee increase).
  • Estimated State General Fund cost: $497,688 beginning FY2027 for 4.00 FTE (1 attorney, 1 legal assistant, 2 enforcement agents) and system/form updates.
  • Counties and municipalities may see reduced licensing workload; they may offset by charging a new or higher local license fee (up to $200).

Procedural notes / background

  • Bill amends the Kansas Liquor Control Act, Kansas Cereal Malt Beverage Act, and Kansas Club & Drinking Establishment Act (multiple K.S.A. sections).
  • Introduced at the Department of Revenue’s request; proponents cited need for centralized oversight and consistent enforcement and data.

Compiled from official sources — confirm details with the bill’s official record.

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