6/5/2013 - Ordinance 13-10697 Microbreweries
ORDINANCE NUMBER 13-10697
AN ORDINANCE AMENDING CHAPTER 5 ARTICLES II AND IV OF THE SALINA CODE BY PERMITTING MICROBREWERIES TO ENGAGE IN ACTIVITIES AUTHORIZED BY KANSAS LAW.
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:
Section 1. That Chapter 5, Article II, Section 5-16 of the Salina Code, is hereby amended to read as follows:
Sec. 5-16. Definitions.
As used in this article, unless the context clearly requires otherwise, the following words and phrases shall have the meanings ascribed to them in this section:
(1) Alcohol means the product of distillation of any fermented liquor, whether rectified or diluted, whatever the origin thereof, and includes synthetic ethyl alcohol, but does not include denatured alcohol or wood alcohol.
(2) Alcoholic liquor means alcohol, 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 any cereal malt beverage.
(3) Beer, when its meaning is not enlarged, modified or limited by other words, means a beverage, containing more than three and two-tenths (3.2) percent alcohol by weight, obtained by alcoholic fermentation of an infusion or concoction of barley, or other grain, malt and hops in water and includes beer, ale, stout, lager beer, porter and similar beverages having such alcoholic content.
(4) Distributor means the person importing or causing to be imported into the state., or purchasing or causing to be purchased within the state., alcoholic liquor for sale or resale to retailers under the provisions of the Kansas Liquor Control Act, being K.S.A. Chapter 41, Articles 1 through 11.
(5) Lee District means that area associated with Salina Business Improvement District No. 1 designated by the governing body from time to time as “the Lee District.”
(6) Manufacture means to distill, rectify, ferment, brew, make, mix, concoct, process, blend, bottle or fill an original package with any alcoholic liquor, or with beer regardless of its alcoholic content and includes blending.
(7) Manufacturer means every brewer, fermenter, distiller, rectifier, wine maker, blender, processor, bottler or person who fills or refills an original package and others engaged in brewing, fermenting, distilling, rectifying or bottling alcoholic liquors as above defined or beer regardless of its alcoholic content.
(8) Microbrewery means a brewery licensed by the director of alcoholic beverage control of the department of revenue to manufacture, store and sell domestic beer.
(9) Microbrewery packaging and warehousing facility means a microbrewery licensed to perform those functions authorized under K.S.A. 41-308b(b).
(10) Minor means any person under twenty-one (21) years of age.
(11) Nonbeverage user means every manufacturer of any of the products set forth and described in K.S.A. 41-501, when the same contains alcohol or wine, and all laboratories using alcohol for nonbeverage purposes.
(12) 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 alcoholic liquor, to contain and to convey any alcoholic liquor.
(13) Retailer means a person who sells at retail, or offers for sale at retail, alcoholic liquors. Retailer does not include a microbrewery, microdistillery or a farm winery.
(14) Sale means any transfer, exchange or barter in any manner or by any means whatsoever for a consideration and includes all sales made by any person, whether principal, proprietor, agent, servant or employee.
(15) Sell at retail and sale at retail refer to and mean sales for use or consumption and not for resale in any form and sales to clubs, licensed drinking establishment, a licensed caterers or a holders of a temporary permit. "Sell at retail" and "sale at retail" do not refer to or mean sales by a distributor, a microbrewery, a farm winery, a licensed club, a licensed drinking establishment, a licensed caterer or a holder of a temporary permit.
(16) Special event means a picnic, bazaar, festival or other similar community gathering, which has been approved by the governing body.
(17) Special event temporary permit is a permit issued pursuant to K.S.A. 41-2645(e) that allows the permit holder to offer for sale, sell and serve alcoholic liquor for consumption on public streets, alleys, roads, sidewalks or highways for a special event approved by the governing body by ordinance.
(18) Spirits means any beverage which contains alcohol obtained by distillation, mixed with water or other substance in solution, and includes brandy, rum, whiskey, gin or other spirituous liquors, and such liquors when rectified, blended or otherwise mixed with alcohol or other substances.
(19) To sell includes to solicit or receive an order for, to keep or expose for sale and to keep with intent to sell.
(20) Wine means any alcoholic beverage obtained by the normal alcoholic fermentation of the juice of sound, ripe grapes, fruits or berries, or other agricultural products, including such beverages containing added alcohol or spirits or containing sugar added for the purpose of correcting natural deficiencies.
Section 2. That Chapter 5, Article II, Section 5-17 of the Salina Code, is hereby amended to read as follows:
Sec. 5-17. General prohibition; exceptions.
(a) No person shall manufacture, bottle, blend, sell, barter, transport, deliver, furnish or possess any alcoholic liquor for beverage purposes, except as specifically provided in this article and the Kansas Liquor Control Act, except that nothing contained therein shall prevent:
(1) The possession and transportation of alcoholic liquor for the personal use of the possessor, his or her family and guests except that the provisions of K.S.A. 41-110 relating to transportation and the provisions of K.S.A. 41-407 shall be applicable to all persons;
(2) The making of wine, cider, or beer by a person from fruits, vegetables or grains, or the product thereof, by simple fermentation and without distillation, if it is made solely for the use of the maker and his or her family;
(3) Any duly licensed practicing physician or dentist from possessing or using alcoholic liquor in the strict practice of his or her profession;
(4) Any hospital or other institution caring for the sick and diseased persons, from possessing and using alcoholic liquor for the treatment of bona fide patients of such hospital or institution;
(5) Any drugstore employing a licensed pharmacist from possessing and using alcoholic liquor in the compounding of prescriptions of duly licensed physicians;
(6) The possession and dispension of wine by an authorized representative of any church for the purpose of conducting any bona fide rite or religious ceremony conducted by such church;
(7) The purchase, possession or sale of alcoholic liquor by a club licensed pursuant to K.S.A. article 26 of chapter 41; or
(8) Any microbrewery or microbrewery packaging and warehousing facility from engaging in any activities permitted under a microbrewery license or a microbrewery packaging and warehousing facility license issued pursuant to K.S.A. 41-308b or amendments thereto; except that the provisions of Section 5-18 shall be applicable to microbreweries and microbrewery packaging and warehousing facilities.
(b) None of the provisions of this article shall apply:
(1) To flavoring extracts, syrups, or medicinal, mechanical, scientific, culinary or toilet preparations, or food products unfit for beverage purposes, but the provisions of this article shall not be construed to exclude or not apply to alcoholic liquor used in the manufacture, preparation or compounding of such preparations and products;
(2) The wine intended for use and used by any church or religious organization for sacramental purposes;
(3) To the manufacture of denatured alcohol produced in accordance with acts of congress and regulations promulgated thereunder.
Section 3. That Chapter 5, Article IV, Section 5-139 of the Salina Code, is hereby amended to read as follows:
Sec. 5-139. License tax levied.
(a) Club License Tax. There is hereby levied a biennial occupation or license tax on each operator of a club in the amount of five hundred dollars ($500.00), who has a club license issued by the state director of alcoholic beverage control, which tax shall be paid before business is begun under an original state license and within ten (10) days after any renewal of the state license.
(b) Drinking Establishment License Tax. There is hereby levied an annual occupation or license tax in the amount of two hundred fifty dollars ($250.00) on each drinking establishment located in the city which has a drinking establishment license issued by the state director of alcoholic beverage control, before business is begun under an original state license and within ten (10) days after any renewal of a state license. Effective July 1, 2011, the occupation or license fee shall be bienniel in the amount of five hundred dollars ($500.00) on each drinking establishment located in the city which has a drinking establishment license issued by the state director of alcoholic beverage control, before the business is begun under an original state license and within ten (10) days after any renewal of a state license.
(c) Microbreweries. Microbreweries shall not be subject to an annual occupation or license tax in accordance with Kansas law.
(d) Microbreweries Also Operating as Drinking Establishments. All microbreweries also operating as a drinking establishment shall be taxed as a drinking establishment pursuant to subparagraph (b) above.
(e) Installment Payments. The applicant may elect to pay the biennial occupation or license tax in two installments in accordance with K.S.A. 41-2606 as amended. Refunds for the second year of the tax due to an un-used portion of the second year of the state license may be provided in accordance with K.S.A. 41-2607 and K.S.A. 41-2629 as amended.
Section 4. Summary of Ordinance for Publication. This ordinance shall be published by the following summary:
Ordinance No. 13-10697 Summary
On June 3, 2013, the City of Salina, Kansas, passed Ordinance No. 13-10697. The ordinance amends Chapter 5, Article II, of the Salina Code by amending Sections 5-16, 5-17, 5-18, and 5-139 permitting microbreweries to engage in activities authorized by Kansas law. A complete copy of the ordinance is available at www.salina-ks.gov or in the office of the city clerk, 300 W. Ash Street, free of charge. This summary is certified by the city attorney.
Section 5. Effective Date. This ordinance shall be in full force and effect from and after its adoption and publication by summary once in the official city newspaper.
Introduced: May 20, 2013
Adopted: June 3, 2013
Barbara V. Shirley, Mayor
Lieu Ann Elsey, CMC, City Clerk