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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 Wed, Jan 31, 2024
Jason Long, Office of the Revisor of Statutes, gave an overview of the bill. SB253 would allow for the delivery of alcoholic beverages to private residences by the licensee or third-party delivery services, such as DoorDash and Walmart to consumer's homes. The bill creates a third-party delivery service permit to be issued by the Director of Alcoholic Beverage Control. Each driver must complete the training and certification program for such deliveries as approved by the Director. (Attachment 1)
Jason Long stood for a period of questions and answers.
A balloon amendment was distributed and discussed. The amendment requires the third party service permit holder, as well as the delivery person, be liable for violations under the bill. It also provides for the protection of the personal data collected from consumer. Under the amendment, the individual doing the actual delivery would have to carry with them, a certificate of completion of the delivery course. Further, the retailer cannot be held responsible for the actions of the delivery individual. (Attachment 2)
Jason Long stood for a period of questions and answers.
The Chairman called for proponent testimony.
Proponent Oral Testimony
Mike O'Neal testified as a proponent of the bill on behalf of Walmart. He stated the bill only authorizes delivery, but does not require it. It provides a regulatory structure and oversight from Alcoholic Beverage Control for such deliveries. He said 44 other states allow delivery of alcohol by third parties, and explained the individuals doing the deliveries will be known entities, because of completing the training and certification, and won't be "rouge" drivers. (Attachment 3)
Scott Schneider, Kansas Restaurant and Hospitality Association, spoke as a proponent of the bill. He stated there is consumer protection in this bill that has worked well nationally. He said Kansas is unique in that the consumer of alcohol is solely liable for any acts they commit while intoxicated. He said the amendment makes sure the driver is also complying with the laws. (Attachment 4) (Attachment 5)
Michael Ruemmler, DoorDash, spoke as a proponent of the bill. He said they are committed to the safety aspect of delivering alcoholic beverages. They see themselves as an extension of the retail establishment, under the three tier system. He stated their scanning technology validates the authenticity of pieces of identification, and customers must upload their ID before completing their purchase. He said the the economic benefits are many, especially for restaurants, whose order value is 50% higher when alcohol is provided. (Attachment 6)
Clayton Bryrd, Public Policy Senior Manager, Amazon, spoke as a proponent of the bill. He stated Amazon only delivers groceries for Whole Foods stores, and their customers would benefit from safe cereal malt beverage and beer delivery. He said the bill provides a robust framework for safe and responsible delivery. (Attachment 7)
Written Only Proponent Testimony
Brian Posler, Fuel True Independent Energy and Convenience (Attachment 8)
Eric Stafford, Kansas Chamber (Attachment 9)
Steve Crumb, Executive Director, Adult Beverage Alliance (Attachment 10)
Ruthie Barko, Executive Director, TechNet (Attachment 11)
Elizabeth Patton, State Director, Americans for Prosperity, Kansas (Attachment 12)
The proponents stood for a period of questions and answers.
Neutral Written Only Testimony
Debbie Beavers, Director, Alcoholic Beverage Control Division (ABC) (Attachment 13)
R.E. "Tuck" Duncan, Kansas Wine and Spirits Wholesaler Association (Attachment 14)
Philip Bradley, Kansas Licensed Beverage Association (Attachment 15)
There was a period of questions and answers wherein R.E. "Tuck" Duncan and Debbie Beavers stood for questions, although they were not scheduled for in-person testimony.
Following the questions and answers, the Chairman called for opponent testimony.
Opponent Oral Testimony
Whitney Damron, Kansas Association for Responsible Liquor Laws, spoke as an opponent of the bill. He stated the association is a retail organization with 25 members. Their biggest concern with the bill is over the collection of data from retailers. He said a company like Uber can target-market the customer from data they collect in their order process, and that data may also not be protected from release. He expressed concern that drivers are not licensed by ABC and can move around from company to company, and no one will know if they have committed violations. He said there is also a negative impact on prices for consumers because of fees charged by third party delivery companies. (Attachment 16)
Aaron Rosenow, Vern's Retail Liquor, spoke as an opponent of the bill. He stated no liquor store local owners were present wanting this bill, and it's all out-of-state big companies wanting it. He asked who would stick up for the stores, and their owners, such as himself, and make sure they don't lose their profit margin to the delivery apps. (Attachment 17)
Stacey Harlow, Twisted H Liquor, spoke as an opponent of the bill. She stated she owns a liquor store in Hugoton, KS and the 2019 beer law put her in direct competition with Walmart. This bill would negatively further impact her business, and many rural liquor stores have already closed. She stated her business is already highly regulated, and would need to be equal for delivery services. (Attachment 18)
Amy Campbell, Kansas Association of Beverage Retailers, spoke as an opponent of the bill. She stated the sale of products at liquor stores has always been a face to face transaction, which they have built their businesses on. She said they have obligations under the law that they cannot see being fulfilled by third party delivery services. The highest cost they now have is going to an entity that is not the licensee, and independent retailers will be at a significant disadvantage with this bill. She stated there is no limitation on quantities of alcohol that can be delivered in this bill. (Attachment 19)
Written Only Opponent Testimony
Jeff Breault, owner, R&J Discount Liquor (Attachment 20)
Following a period of questions and answers, the Chairman closed the hearing on SB253.
The Chairman adjourned the meeting at 11:37 am.
