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Minutes for HB2611 - Committee on Federal and State Affairs
Short Title
Authorizing home delivery of alcoholic liquor and cereal malt beverage by a licensed retailer, including delivery through a third-party delivery service.
Minutes Content for Wed, Feb 16, 2022
Chairperson Barker opened the hearing on HB2611. The revisor provided an overview of the bill. Representative Resman had a question.
The Chair recognized Mike O'Neal as a proponent of HB2611 (Attachment 1). He stated that Walmart is in support of modernizing the regulated beverages laws to allow for delivery of store products containing alcohol to its customers.
Chairperson Barker recognized Tom Palace who testified in favor of HB2611 (Attachment 2). He stated that HB2611 allows grocery stores to include cereal malt beverages (CMB) that are less than six percent ABV in their home deliveries. The Alcoholic Beverage Control Division (ABC) would like some changes to the bill, and his association would support those changes.
Becky Schwartz was recognized by the Chairperson as a proponent on the bill (Attachment 3). She stated that the convenience stores would like to offer home delivery of CMB products to their customers. They would support any changes recommended by ABC as well.
Clay Byrd testified as a proponent on HB2611 (Attachment 4). He stated that Amazon owns Whole Foods Market, which are full-service grocery stores and hold licenses as CMB retailers. They are in support of this bill.
Chairperson Barker recognized Alexi Madon who testified as a proponent on the bill (Attachment 5) (Attachment 5A) (Attachment 5B). She stated that the data they have obtained from other states where alcohol is available for delivery shows that orders from grocers that include alcohol may increase order values by 30 percent and convenience stores by 50 percent.
Chairperson Barker recognized Kelley Foxx who testified in favor of the bill (Attachment 6). He stated that unlocking alcohol delivery in Kansas provides a significant benefit for state, county and local government.
Mark Smith testified as a proponent of HB2611 (Attachment 7). He stated that his company is a same-day delivery company. It currently makes same-day deliveries of alcohol in 22 states. It supports this bill and would request that the Committee pass it.
Chairperson Barker recognized Jacqueline Flug as a proponent (Attachment 8). She stated that although her company, Drizly, supports this bill, they would request an amendment that would state that technology services companies would not be required to obtain a delivery permit if they do not employ or contract with delivery drivers.
Chairperson Barker then allowed questioning of all the proponents by the Committee members. Questions were asked by Vice-Chairperson Arnberger and Representatives Highberger, Howe, Ruiz, and Miller.
Chairperson Barker directed the Committee's attention to the written proponent testimony of Kristi Brown on behalf of Discus (Attachment 9) and Eric Stafford (Attachment 10) on behalf of the Kansas Chamber.
Chairperson Barker recognized Amy Campbell as an opponent to HB2611 (Attachment 11). She stated that Kansas has 39 fewer licensed liquor stores than it did in 2017. HB2611 is a significant step in alcohol deregulation. Kansas has rapidly expanded the number of entities selling and serving alcohol in a variety of settings. This expansion has caused challenges to the ABC in enforcing the state's laws. Her written testimony sets out the issues that will need to be addressed if this bill is passed.
Chairperson Barker recognized Scott Schneider as an opponent on the bill (Attachment 12). He stated that his organization thinks this bill will create confusion for the consumer. Drinking establishments should be allowed to have the same right to access third party delivery platforms to delivery alcohol and, therefore, should be included in this bill.
Whitney Damron was recognized as an opponent on HB2611 (Attachment 13). He stated that the companies he represents do not support home delivery as it is embodied in this bill. There are liability concerns, as well as the costs of delivery, and the biggest concern relates to who owns the data related to delivery and how it would be used.
The Chair recognized Phil Bradley as an opponent to HB2611 (Attachment 14). He stated that the small businesses he represents are in favor of home delivery by Kansas businesses to Kansas consumers. HB2611 excludes farm wineries, craft brewers, and microdistilleries, which would create an unfair market.
Aaron Rosenow was recognized by the Chairperson as an opponent to the bill (Attachment 15). He stated that he owns a liquor store. The 2019 beer law shifted a significant portion of strong beer sales from Kansas-owned retail liquor stores to grocery and convenience stores. He asked that consideration be given to the impact this bill will have on small business owners.
Phil Cosby was recognized by the Chair as an opponent to the bill (Attachment 16) (Attachment16A) (Attachment 16B). He stated that he opposes HB2611. Ineffective regulation of online alcohol sales and deliveries has led to easier access for people under the age of 18.
Chairperson Barker noted that there was written opponent testimony from Jeff Breault, R&J Discount Liquor (Attachment 17) and Matt Easley, On the Rocks (Attachment 18).
Chairperson Barker recognized Debbi Beavers as a neutral on HB2611 (Attachment 19). She stated that the ABC has some concerns with HB2611. As it is written, it is unclear who would need a delivery permit. The ABC would request that the delivery radius be reduced to 25 miles with the specification that such deliveries must occur within the state of Kansas.
R.E. "Tuck" Duncan testified as a neutral on HB2611 (Attachment 20). He stated that several amendments should be made to HB2611, and he went over those. They are set out in his written testimony.
Chairperson Barker then allowed questioning from both the opponents and the neutrals. Questions were asked by Chairperson Barker and Representatives Houser, Miller, Smith, and Waggoner.
Chairperson Barker closed the hearing on HB2611.
Chairperson Barker stated that the Revisor brought to his attention that there is a technical amendment needed on HB2528, relating to the inflatables in the amusement ride act. If there is no objection, he will allow that technical amendment to be made. Seeing no objection, the Chair stated that the Revisor has the authority to make that technical amendment.
The meeting was adjourned at 10:23 a.m.
