Handbook for Producers

Division of Alcoholic Beverage Control
Kansas Department of Revenue 109 SW 9th Street
Mills Building, 5th Floor Topeka, Kansas 66612

Phone: 785-296-7015 / Fax: 785-296-7185
Website: www.ksrevenue.org/abcindex.html
Email: Kdor_abc.email@ks.gov

Please report errors, omissions or suggestions for improvement to this handbook to the Division of Alcoholic Beverage Control by telephone at 785-296-7015, by fax at 785-296-7185 or by email to Kdor_abc.email@ks.gov.

Changes made to this handbook since the previous revision(s) have been highlighted with a yellow background.


Table of Contents

Definitions

"Alcoholic candy"

Means any candy or other confectionary product with an alcohol content greater than 0.5% alcohol by volume (for purposes of manufacturing), or 1% alcohol by volume (for purposes of sale at retail). [Subsection (b) of K.S.A. 41-102]

“Alcoholic liquor”

Means alcohol, alcoholic candy, spirits, wine, beer and every liquid or solid, patented or not, containing alcohol, spirits, wine or beer and capable of being consumed as a beverage by a human being, but shall not include cereal malt beverage. [Subsection (c) of K.S.A. 41-102]

“Domestic fortified wine”

Means wine which contains more than 14%, but not more than 20% alcohol by volume and which is manufactured in this state. [Subsection (k) of K.S.A. 41-102]

“Domestic table wine"

Means wine which contains not more than 14% alcohol by volume and which is manufactured without rectification or fortification in this state. [Subsection (l) of K.S.A. 41-102].
NOTE: "Rectification" is not defined in the Liquor Control Act but is defined in Webster's Dictionary as adjusting the proof of alcoholic beverages by adding water or other liquids.

"Farm winery"

a winery licensed under the Liquor Control Act by the director to manufacture, store and sell domestic table wine and domestic fortified wine. [Subsection (n) of K.S.A. 41-102] A farm winery is limited to producing no more than 100,000 gallons of wine per year. [Subsection (a)(1) of K.S.A. 41-308a]

“Original package”

Means any bottle, flask, jug, can, cask, barrel, keg, hogshead or other receptacle or container whatsoever, used, corked or capped, sealed and labeled by the manufacturer of the alcoholic liquor, to contain and to convey any alcoholic liquor. Original container does not include a sleeve. [Subsection (v) of K.S.A. 41-102]

“Sample”

Means a serving of alcoholic liquor which contains not more than: (1) One-half ounce of distilled spirits; (2) one ounce of wine; or (3) two ounces of beer or cereal malt beverage. A sample of a mixed alcoholic beverage shall contain not more than one-half ounce of distilled spirits. [Subsection (cc) of K.S.A. 41-102]

“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. The term ‘‘wine’’ shall include hard cider and any other product that is commonly known as a subset of wine. [Subsection (kk) of K.S.A. 41-102]

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License Eligibility

A Producer license type can be obtained by any person engaged in business as:

  • A vineyard with at least 100 vines of sound, ripe grapes; or
  • An agricultural producer with an annual harvest of at least 1,000 pounds of other sound, ripe fruits or berries; or
  • An agricultural producer with an annual harvest of at least 100 pounds of honey.

[Subsection (a) of K.S.A. 41-355]

Any person eligible for licensure may apply for and receive up to two Producer licenses. [Subsection (a) of K.S.A. 41-355]

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Application for Licensure; License and Application Fees

Effective January 1, 2021, all applications must be submitted to ABC online at https://ksabconline.org.

The biennial fee for the license is $200. [Subsection (m) of K.S.A. 41-310]

The applicant may pay either the full amount of the license fee or may pay half of the license fee at the time of application. The remaining half of the license fee, plus 10 percent of the remaining balance, is due one year from the date on which the license was issued. Failure to pay the remaining license fee and 10 percent fee timely will result in the license being canceled. [Subsections (b) and (c) of K.S.A. 41-317]

There is an additional application fee of $30 for new applicants and $10 for renewals. There will also be an additional $20 modernization fee assessed to each application type (initial or renewal). [K.S.A. 41-213] The application and modernization fees are not refundable. [Subsection (a) of K.S.A. 41-317]

At time of application, applicants must submit and maintain a licensing bond. See “Licensing Bond” section for details.

The Federal TTB Alcoholic Dealer Registration (TTB F 5630.5d) form will need to be submitted to ABC Licensing with your application for a Producer license. A link to the TTB form is available on ABC’s Producer license webpage.

To sell or sample wine pursuant to the Producer type, the licensed premises must be located in a county that allows liquor by the drink. Information concerning the status of each county may be found on the ABC website at www.ksrevenue.org/pdf/abcwetdrymap.pdf. [Applying the same restriction which applies to Kansas farm wineries as provided by subsection (a)(4) of K.S.A. 41-308a]

Once all of the required documents and forms have been received, required fees have been paid, and required bonds have been posted, the director has 30 days to either issue the license or issue an order denying the license. If no license is issued or no denial order is issued within that time, then the license is deemed to be denied. The applicant may agree in writing to give the director an additional 30 days to either issue or deny the license. [Subsection (a) of K.S.A. 41-319]

An order by the director denying a license shall state the reason(s) therefore. The order denying a license is appealable to the Secretary of Revenue by filing a form available from the Office of the Secretary. The form must be either mailed to the Secretary by certified mail or personally served upon the Office of the Secretary within 15 days from the date of service of the director’s order upon the licensee. The review of the director’s order will be conducted in accordance with the provisions of the Kansas Administrative Procedures Act. [K.S.A. 41-321]

The decision of the secretary or secretary's designee on an applicant's appeal of a denial of licensure may be appealed to District Court pursuant to the Kansas Act for Judicial Review and Civil Enforcement of Agency Actions, K.S.A. 77-601 et seq. [K.S.A. 41-323]

The license is valid for two years from the date specified on the license. [Subsection (n) of K.S.A. 41-310] At the end of the two-year license term, the license is renewable for another two-year term unless sooner suspended or revoked, as long as the licensee and premises continue to meet the requirements of all relevant laws and regulations. [K.S.A. 41-327]

A producer license is a personal privilege and is not assignable. [K.S.A. 41-326]

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Qualifications for Licensure - Ownership

The officers, directors, shareholders or managers of a Producer license must meet the licensure qualifications provided in K.S.A. 41-311(a). [Subsection (f) of K.S.A. 41-311] This is interpreted to mean that any business entity may apply for a Producer license. The same requirements must be met for renewal of an existing license except as specifically indicated. [Subsection (a)(9) of K.S.A. 41-311]

The requirements for licensure pursuant to K.S.A. 41-311(a) are as follows:

  • U.S. Citizenship.
    The person must be a U.S. citizen. [Subsection (a)(1) of K.S.A. 41-311]
  • Felony conviction.
    The person cannot have been convicted of a felony in Kansas or any other state or the United States. [Subsection (a)(2) of K.S.A. 41-311]

    For an initial license, this requirement also applies to the person's spouse regardless of when the conviction occurred. [Subsection (a)(12) of K.S.A. 41-311]

    For a renewal license, this requirement also applies to the person's spouse, but only if the conviction occurred during the time that the person's spouse was licensed under the Liquor Control Act. [Subsection (a)(13) of K.S.A. 41-311]
  • Previous liquor license revocation.
    The person cannot have had a license revoked for cause under the Kansas Liquor Control Act or the Kansas Beer and Cereal Malt Beverage Keg Registration Act or the cereal malt beverage laws of Kansas or any other state. However, a revocation will be disregarded if it occurred more than 10 years ago and was the result of a conviction of a misdemeanor. [Subsection (a)(3) of K.S.A. 41-311]

    For an initial license, this requirement applies to the person's spouse. For a renewal license, this requirement does not apply to the person's spouse. [Subsection (a)(12) of K.S.A. 41-311]
  • Previous finding of hidden beneficial interest.
    The person cannot, after a hearing before the director, be found to have held an undisclosed beneficial interest in any liquor license which was obtained by means of fraud or any false statement made on the application for such license. [Subsection (15) of K.S.A. 41-311]
  • Conviction for keeping a house of prostitution.
    The person cannot have been convicted of being a keeper of a house of prostitution or is keeping a house of prostitution, or has forfeited bond to appear in court to answer charges of being a keeper of a house of prostitution. [Subsection (a)(4) of K.S.A. 41-311]

    For an initial license, this requirement also applies to the person's spouse regardless of when the conviction occurred. [Subsection (a)(12) of K.S.A. 41-311]

    For a renewal license, this requirement also applies to the person's spouse, but only if the conviction occurred during the time that the person's spouse was licensed under the Liquor Control Act. [Subsection (a)(13) of K.S.A. 41-311]
  • Conviction for owning a gambling house, pandering or crime opposed to decency or morality.
    The person cannot have been convicted of being a proprietor of a gambling house, pandering or any other crime opposed to decency and morality and cannot have forfeited bond to appear in court to answer charges for any of these crimes. This includes both felonies and misdemeanors. [Subsection (a)(5) of K.S.A. 41-311] "Pandering" is not currently used in the Kansas criminal law. Black's Law Dictionary defines a "panderer" as one who solicits for prostitution. The definition of "pander" includes being a "pimp" or procurer of persons to be prostitutes. Most of these acts are currently prohibited by K.S.A. 21-6419 (selling sexual relations) and K.S.A. 21-6420 (Promoting the sale of sexual relations).

    Crimes involving morality are defined as including:
    • prostitution
    • procuring any person
    • solicitation of a child under 18 years of age for any immoral act involving sex
    • possession or sale of narcotics, marijuana, amphetamines or barbiturates
    • rape
    • incest
    • gambling
    • adultery
    • bigamy
    For an initial license, this requirement also applies to the person's spouse regardless of when the conviction occurred. [Subsection (a)(12) of K.S.A. 41-311]

    For a renewal license, this requirement also applies to the person's spouse, but only if the conviction occurred during the time that the person's spouse was licensed under the Liquor Control Act. [Subsection (a)(13) of K.S.A. 41-311]
  • Age requirement.
    The person must be at least 21 years of age. [Subsection (a)(6) of K.S.A. 41-311]

    For either an initial or renewal license, this requirement does not apply to the person's spouse. [Subsection (a)(12) of K.S.A. 41-311]
  • Employee of ABC.
    The person cannot be an employee of the Division of Alcoholic Beverage Control. [Subsection (a)(7) of K.S.A. 41-311]

    For an initial license, this requirement applies to the person's spouse. For a renewal license, this requirement does not apply to the person's spouse. [Subsection (a)(12) of K.S.A. 41-311]
  • Law enforcement officer.
    The person cannot be a commissioned law enforcement official. [Subsection (a)(7) of K.S.A. 41-311] "Official" is not defined in the statute but is interpreted as being any law enforcement officer or head of a law enforcement agency. Since this subsection does not mention jurisdiction, it is assumed that this restriction applies regardless of whether the law enforcement official is located in the same county, city, etc. as the premise to be licensed. [Ruling approved by the director on Jan. 19, 2005.]

    Persons not commissioned as law enforcement officers, including non-commissioned correctional facility employees, are not included as “law enforcement officers” for purposes of acquiring a license. [Ruling by the director on July 24, 2012]

    For an initial license, this requirement applies to the person's spouse. For a renewal license, this requirement does not apply to the person's spouse. [Subsection (a)(12) of K.S.A. 41-311]
  • Supervisor of law enforcement officers.
    The person cannot hold a position that appoints or supervises any law enforcement officer. However, members of the governing body of a city or county (assume this means city council members and county commissioners) are exempt from this restriction. [Subsection (a)(7) of K.S.A. 41-311] Since this subsection does not mention jurisdiction, it is assumed that this restriction applies regardless of whether the person is located in the same county, city, etc. as the premise to be licensed. [Ruling approved by the director on Jan. 19, 2005.]

    For an initial license, this requirement applies to the person's spouse. For a renewal license, this requirement does not apply to the person's spouse. [Subsection (a)(12) of K.S.A. 41-311]
  • Acting as agent of another.
    The person cannot intend to act as an agent for another in operating the licensed business. [Subsection (a)(8) of K.S.A. 41-311]
  • Conviction of violating the intoxicating liquor laws.
    The director may deny an initial license or renewal of an existing license if the person or the person's spouse has been convicted of violating the intoxicating liquor laws of any state or the United States or has forfeited bond to appear in court on charges of any such violation, within 10 years immediately preceding the date of application for an initial license or for renewal of an existing license. [Subsection (a) of K.S.A. 41-330]
  • Conviction of violating the Cereal Malt Beverage Act.
    The director may deny an initial license or renewal for an existing license if the person or the person's spouse has been convicted of violating the laws of any state relating to cereal malt beverages, within 10 years immediately preceding the date of application for an initial license or for renewal of an existing license. [Subsection (b) of K.S.A. 41-330]

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Licensing Bond

Producer licensees must post and maintain a licensing bond in the amount of $500. [Subsection (g)(7) of K.S.A. 41-317] Bond shall be posted on form ABC-803 (escrow bond) or form ABC-804 (surety bond.)

Bonds shall be made payable to the Kansas Director of Alcoholic Beverage Control for and on behalf of the State of Kansas. Surety bonds shall be countersigned by an agent whose authority to sign the bond on behalf of the bonding company shall be evidenced by a duly executed power of attorney, a copy of which shall be attached to the bond at the time it is filed with the director. [K.A.R. 14-17-1]

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Recordkeeping Requirements

Each Producer licensee shall maintain records of all sales made under the license. This includes sales of agricultural products to farm wineries and sales of wine to consumers. Licensees shall also maintain records of all purchases of wine manufactured by a farm winery. [Subsection (g)(1) of K.S.A. 41-355]

Records shall be maintained on the licensed premises for at least 90 days after a sale or purchase, but may be removed and stored electronically after 90 days have passed. All records shall be available for inspection by the director, any agent or employee of the director, the Secretary of Revenue, or any law enforcement officer. [Subsections (g)(2) through (g)(4) of K.S.A. 41-355]

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Authorized Activities

Sales of wine to consumers

Producer licensees are authorized to conduct sales of wine, containing their own agricultural products as described above and purchased from a farm winery, either in the original unopened container for consumption off of the licensed premises, or by the drink for consumption on the licensed premises. [Subsection (c) of K.S.A. 41-355]

Any wine sold but not consumed on the premises shall be disposed of by the licensee, or, prior to its removal from the licensed premises, securely resealed and placed in a tamper-proof, transparent bag which is sealed in a manner that makes it visibly apparent if the bag is subsequently opened. [Subsection (d) of K.S.A. 41-355]

Sampling

Producer licensees may conduct wine tastings, using wine containing their own agricultural products as described above, on the licensed premises, in accordance with K.S.A. 41-308d. [Subsection (c) of K.S.A. 41-355]

The following provisions of K.S.A. 41-308d apply to wine tastings conducted by Producer licensees:

  • No charge may be made for the wine sample served. [Subsection (a)(3) of K.S.A. 41-308d]
  • A person may be served more than one sample. [Subsection (a)(4) of K.S.A. 41-308d]
  • Samples may not be served to a minor. [Subsection (a)(4) of K.S.A. 41-308d, and interpreting minor as any person under the age of 21 as provided by K.S.A. 41-308a for Kansas farm wineries]
  • No samples may be removed from the licensed premises. [Subsection (a)(4) of K.S.A. 41-308d]

Allowing the possession of alcoholic liquor or CMB not purchased by the licensee

A Producer licensee may allow individuals to possess alcoholic liquor or cereal malt beverage not purchased from the licensee while on the licensed premises. However, they may also prohibit this practice if they so choose. [Subsection (i) of K.S.A. 41-355]

Licensure as a club, drinking establishment, or on-premise CMB retailer

A Producer licensee may also be licensed as a club, drinking establishment, or on-premise CMB retailer, if located in a county where liquor by the drink has been authorized. If licensed as a club or drinking establishment, the licensee shall allow the sale of domestic wine, domestic fortified wine and other alcoholic liquor on the licensed premises, pursuant to the Club and Drinking Establishment Act. If licensed as a CMB retailer, the licensee shall allow the sale of CMB and beer not exceeding 6% alcohol by volume for consumption on the licensed premises. [Subsection (e) of K.S.A. 41-355]

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Prohibited Activities

No activities involving the sale or consumption of alcoholic liquor are permitted on the licensed premise other than those specifically authorized by statute as described above. If the licensee is also licensed as a club, drinking establishment or on-premise CMB retailer, please consult the handbooks for those specific license types for further information on prohibited conduct for those licensees.

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Reporting and Payment of Liquor Taxes

Bottles of wine sold to the public are subject to the Kansas Liquor Enforcement Tax. This tax is paid by the customer at the time of purchase of the bottle of wine from the licensee. The licensee files a liquor enforcement tax return (Form LE-3) or files online with the Kansas Department of Revenue and remits the taxes collected.

Wine sold by the glass to customers by the licensee is subject to the Kansas Liquor Drink Tax. This tax is paid by the customer at the time of purchase of the glass of wine from the licensee. The licensee files a liquor drink tax return (Form LD-1) or files online with the Kansas Department of Revenue and remits the taxes collected.

Registration for these two taxes is available online as part of the Business Tax Application Booklet (Form KS-1216).

Revised 12/2020