41-703. Gifts, loans and interest in customer's business by manufacturer or distributor prohibited, exceptions.
41-703
41-703. Gifts, loans and interest in customer's business bymanufacturer or distributor prohibited, exceptions.(a) Except as provided by subsection (d), no manufacturer or distributor shalldirectly or indirectly: (1) Sell, supply, furnish, give, pay for, loan or leaseany furnishing, fixture or equipment on the premises of a place of business ofa licensee under the club and drinking establishment act or a retailer licensedunder the Kansas liquor control act or under K.S.A. 41-2702 and amendmentsthereto; (2) pay for any such licensee's or retailer's license, or advance,furnish, lend or give money for payment of such license; (3) purchase or becomethe owner of any note, mortgage or other evidence of indebtedness of any suchlicensee or retailer or any form of security therefor; (4) be interested in theownership, conduct or operation of the business of any such licensee orretailer; or (5) be interested, directly or indirectly, or as owner, partowner, lessee or lessor thereof, in the licensed premises of any such licenseeor retailer.
(b) Except as provided by subsection (d), no manufacturer or distributorshall, directly or indirectly, or through a subsidiary or affiliate or by anyofficer, director or firm of such manufacturer or distributor, furnish, give,lend or rent any interior decorations or any signs, for inside or outside use,for use in or about or in connection with the licensed premises of a licenseeunder the club and drinking establishment act, or a retailer licensed under theKansas liquor control act or under K.S.A. 41-2702 and amendments theretoproducts of the manufacturer or distributor are sold.
(c) No manufacturer or distributor shall directly or indirectly pay for oradvance, furnish or lend money for the payment of any license of another underthe club and drinking establishment act, the Kansas liquor control act orK.S.A. 41-2702 and amendments thereto.
(d) (1) A manufacturer or distributor may furnish things of value to alicensee under the club and drinking establishment act or to a retailerlicensed under the Kansas liquor control act or under K.S.A. 41-2702 andamendments thereto to the extent permitted by rules and regulations adoptedby the secretary pursuant to subsection (e).
(2) Notwithstanding any other provision of law to the contrary, an owner,officer, stockholder or director of a distributor may have an interest in thelicensed premises of a club, a drinking establishment or a retailer licensedunder the Kansas liquor control act or under K.S.A. 41-2702 and amendmentsthereto, if such premises are located outside the geographic territory of thedistributor's franchise.
(e) The secretary shall adopt rules and regulations permittingmanufacturers and distributors to furnish equipment, signs, supplies orsimilar things of value to licensees under the club and drinkingestablishment act or to a retailer licensed under the Kansas liquor controlact or under K.S.A. 41-2702 and amendments thereto. Such rules andregulations shall limit the furnishing of such things of value so that theyare not conditioned on or an inducement to the purchase of any alcoholicliquor or cereal malt beverage. In adopting such rules and regulations, thesecretary shall consider and, to the extent the secretary determinessuitable, base such rules and regulations on the standards of the bureauof alcohol, tobacco and firearms of the United States treasury.
History: L. 1949, ch. 242, § 66; L. 1987, ch. 182, § 48; L. 1991,ch. 141, § 2; July 1.