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Minutes for SB253 - Committee on Federal and State Affairs
Short Title
Authorizing home delivery by licensed retailers, licensed clubs and drinking establishments and restaurants and third-party delivery services.
Minutes Content for Fri, Mar 10, 2023
Mike Heim, Office of Revisor of Statutes, gave an overview of the bill. SB253 would provide for delivery of alcoholic and cereal malt beverages by licensees and third party liquor delivery services to private addresses. It also would create a third party permit to be issued by Alcoholic Beverage Control, and allow delivery of alcohol by clubs and drinking establishments. (Attachment 5)
The Chairman called for proponent testimony.
Oral Proponent Testimony
Mike O'Neal, on behalf of Walmart, spoke as a proponent of the bill. He stated the COVID lockdowns revealed the appetite for home delivery of beer and spirits. He stated it's a logical extension of home delivery for food. He explained the bill does not expand the types of alcohol the establishment is currently licensed to sell in their stores, nor does it require a third party delivery service be used. Delivery has to be completed before the end of the legal hours to sell alcohol, and must be within a 25 mile radius of the licensee. (Attachment 6)
Alexi Madon, representing DoorDash, spoke as a proponent of the bill. She stated the bill provides great opportunities for merchants, and other states where alcohol delivery is allowed with food, show an increase in total orders if alcohol is included, and driver base pay increases by 30%. (Attachment 7)
Written Only Proponent Testimony
Scott Schneider JD, Kansas Restaurant & Hospitality Association (Attachment 8)
Ryan Bissett, Senior Team Leader, Licensing, Whole Foods Market (Attachment 9)
Kevin Gregg, Associate Executive Director, Fuel True Independent Energy and Convenience (Attachment 10)
Elizabeth Patton, State Director, Americans for Prosperity (Attachment 11)
Eric Stafford, Vice President of Government Affairs, Kansas Chamber (Attachment 12)
The Chairman called for neutral oral testimony.
Neutral Oral Testimony
Debbi Beavers, Director, Kansas Department of Revenue, Alcoholic Beverage Control Division, spoke as neutral on the bill. She stated they want to make sure, in new section 1, that it's very clear they can fine, revoke or suspend licenses. She mentioned several other concerns that were mainly technical in nature. (Attachment 13)
Neutral Written Only Testimony
Philip Bradley, Kansas Licensed Beverage Association (Attachment 14)
Tuck Duncan, Kansas Wine and Spirits Wholesalers Association (Attachment 15)
The Chairman called for oral opponent testimony.
Oral Opponent Testimony
Aaron Rosenow, Owner, Vern's Retail Liquor, spoke as an opponent of the bill. He stated, "Walmart wants it, but doesn't need it. Big corporations want it, but don't need it. Small stores don't want it, or need it." He said he cannot afford to pay the fees that third party delivery services charge, and pushing online alcohol sales creates weak public safety and pushes further consumer traffic to Amazon and big box stores. (Attachment 16
Whitney Damron, Kansas Association for Responsible Liquor Laws, Inc., spoke as an opponent of the bill. He represents 25 liquor stores in Kansas, and stated the permit costs in the bill of $1,500 each, would benefit large delivery services like DoorDash, because they only need one permit for thousands of delivery drivers. He also questioned what happens to the information that is generated about the customer base. He said the technology companies get information from the delivery apps, and sell and resell that information, leaving small businesses behind. (Attachment 17)
Brian Davis, Owner, John Davis Liquor Outlet, spoke as an opponent of the bill. He stated there are risks of his items being delivered incorrectly, and the drivers won't meet the standards of the owners and employees, with respect to their knowledge and education on their products. He said there is no reliable way to hold the delivery companies responsible, and the bill would only benefit big companies. (Attachment 18)
Philip Cosby, State Director, American Family Action of Kansas and Missouri, spoke as on opponent of the bill. He stated alcohol leads to serious health problems, violence, and auto accidents, etc, and there are too many things that could go terribly wrong will alcohol delivery. He said DoorDash shouldn't decide who is intoxicated or not, and it could put the delivery driver at risk if he refuses to deliver the items. (Attachment 19)
Opponent Written Only Testimony
Amy Campbell, Executive Director, Kansas Association of Beverage Retailers (Attachment 20)
Philip Bradley, representing KS Craft Brewers Association, KS Viticulture, Farm Winery Association, and Artisan Distillers of KS (Attachment 21)
Jeff Breault, Owner, R&J Discount Liquor (Attachment 22)
Monica Tieben, Owner, Blackjacks Liquor (Attachment 23)
The Chairman opened for period of questions and answers.
Seeing no more questions, the Chairman closed the hearing on SB253.
The Chairman adjourned the meeting at 11:52 am.
