41-350. Direct shipment to consumers by winery; special order shipping license; collection of gallonage taxes; rules and regulations.
41-350
41-350. Direct shipment to consumers by winery;special order shipping license; collection of gallonage taxes; rules andregulations.(a) For the purposes of this act, the term "winery" meansany maker or producer of wine whether in this state or in any other state, whoholds a valid federal basic wine manufacturing permit. The terms "director" and"secretary" have the meaning ascribed to these terms in K.S.A. 2009 Supp.41-102, and amendments thereto.
(b) Any winery may be authorized to make direct shipments of wine toconsumers in this state upon obtaining a special order shipping license fromthe secretary pursuant to this act.
(1) A special order shipping license shall only be issued to a winery uponcompliance with all applicable provisions of this act and the regulationspromulgated pursuant to this act, and upon payment of a license fee in theamount of $50.
(2) A special order shipping license shall entitle the winery to ship wineupon order directly to consumers for personal or household use in this state.The purchaser shall pay the purchase price and all shipping costs directly tothe permit holder. Enforcement taxes collected herein shall be paid solely onthe purchase price and not on the shipping costs.
(c) No holder of a special order shipping license shall be permitted to shipin excess of 12 standard cases of wine of one brand or a combination of brandsinto this state to any one consumer or address per calendar year.
(d) (1) Before accepting an order from a consumer in this state, the holderof a special order shipping license shall require that the person placing theorder to state affirmatively that he or she is 21 years of age or older andshall verify the age of such person placing the order either by the physicalexamination of an approved government issued form of identification or byutilizing an internet based age and identification serviceapproved by the directorof alcoholic beverage control, or the director's designee.
(2) Every shipment of wine by the holder of a special order shipping licenseshall be clearly marked 'Alcoholic Beverages, Adult Signature Required' and thecarrier delivering such shipment shall be responsible for obtaining thesignature of an adult who is at least 21 years of age as a condition ofdelivery.
(e) A special order shipping license shall not authorize the shipment of anywine to any premises licensed to sell alcoholic beverages pursuant to this actor the club and drinking establishment act.
(f) The failure to comply strictly with the requirements of this act andrules and regulations promulgated pursuant to this act shall be grounds for therevocation of a special order shipping license or other disciplinary action bythe director. After notice and an opportunity for hearing in accordance withthe provisions of the Kansas administrative procedure act, the director mayrefuse to issue or renew or may revoke a shipping permit upon a finding thatthe permit holder has failed to comply with any provision of this section orK.S.A. 2009 Supp. 41-501 et seq., and amendments thereto, or any rules andregulations adopted pursuant to such statutes. Upon revocation of a specialorder shipping license for shipment of wine to a person not of legal age asrequired herein such winery shall not be issued any special order shippinglicense pursuant to this act for a period of one year from the date ofrevocation.
(g) The holder of a special order shipping license shall collect allgallonage taxes imposed by K.S.A. 2009 Supp. 41-501 et seq., and amendmentsthereto, shall remit such taxes annually in a manner prescribed by thesecretary and shall accompany such remittance with such reports, documentationand other information as may be required by the secretary. In addition, anapplicant for and a holder of a special order shipping license, as a conditionof receiving and holding a valid license, shall:
(1) Collect and pay the applicable Kansas enforcement tax on each saleshipped to a consumer in Kansas imposed by K.S.A. 79-4101 et seq., andamendments thereto;
(2) accompany each remittance with such sales tax reports, documentation andother information as may be required by the director of taxation; and
(3) if the holder of the license is an out-of-state shipper, the licenseeshall be deemed to have appointed the secretary of state as the resident agentand representative of the licensee to accept service of process from thesecretary of revenue, the director and the courts of this state concerningenforcement of this section, K.S.A. 2009 Supp. 41-501 et seq., and amendmentsthereto, and any related laws and rules and regulations and to accept serviceof any notice or order provided for in the liquor control act.
(h) The secretary of revenue may adopt rules and regulations to implement,administer and enforce the provisions of this section.
(i) This section shall be part of and supplemental to the Kansas liquorcontrol act.
History: L. 2009, ch. 114, § 1; July 1.