ORDINANCE NO. 190545

Amending Chapter 10, Code of Ordinances, by repealing Sections 10-102, 10-122, 10-123, and 10-185, and enacting in lieu thereof new sections of like number and subject matter for the purpose of updating ordinances and in conformity with statutory changes.

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That Chapter 10, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Sections 10-102, Eligibility and requirements for sales by drink license, 10-122, Manufacturer's license for manufacture of alcoholic beverages of all kinds, 10-123, Manufacturer's license for manufacture of alcoholic beverages containing alcohol not in excess of 22 percent by weight, and 10-185, Prohibited interest in license, and replacing them with new sections of like number and subject matter to read as follows:

Sec. 10-102. Eligibility and requirements for sales-by-drink license.

(a) A full sales-by-drink license authorizes the licensee to sell all kinds of alcoholic beverages by the drink for consumption on the licensed premises and to sell alcoholic beverages in the original package on the licensed premises. Each license shall be further classified into one of the sales-by-drink classifications set forth in this chapter.

(b) Unless otherwise stated in this section, a sales-by-drink license may only be issued to a licensee or applicant when liquor-by-drink sales or projected sales are over 60 percent of all liquor sales. No sales-by-drink license authorized under sections 10-102, 10-103, 10-104, 10-105, 10-106, 10-107, 10-108 and 10-110 of this chapter shall be issued to any of the following businesses:

(1) Drugstore which as used in this section is defined as a retail store centrally featuring a pharmacy that dispenses prescription medication and sells over-the-counter medications as well as other miscellaneous items which includes but is not limited to products such as candy, cosmetics, cleaning supplies, light refreshments, magazines and paperback books.

(2) Cigar and tobacco store which as used in this section is defined as a retail store of tobacco products which primarily specializes in selling various forms of tobacco and tobacco accessory products which includes but is not limited to pipes, lighters, matches, pipe cleaners, and pipe tampers.

(3) Grocery store where the building is less than 15,000 square feet. Any grocery store that has a sales-by-drink license is not required to have liquor-by-drink sales or projected sales over 60 percent of all liquor sales. A grocery store which as used in this section is defined as a retail store that primarily sells food.

(4) Convenience-grocery store which as used in this section is defined as a small retail business that primarily stocks a range of everyday items which includes but is not limited to groceries, snack foods, confectionery, toiletries, soft drinks, tobacco products, magazines and newspapers.

(5) General merchandising store which as used in this section is defined as a retail business that sells a number of lines of merchandise which may include but is not limited to dry goods, apparel and accessories, furniture and home furnishings, small wares, hardware, toys, automotive products and food.

(6) Confectionery store which as used in this section is defined as a retail business that primarily sells bakers and sugar confections which includes but is not limited to sweets, candies, candied nuts, chocolates, chewing gum, pastillage, sweet pastries, cakes and other baked goods.

(7) Liquor store which as used in this section is defined as a retail business that primarily sells pre-packaged alcoholic beverages.

(8) Any convenience grocery store that sells gasoline, a gasoline service station or motor vehicle repair garage.

(c) A caterer with a full sales-by-drink license authorizes the caterer to sell all kinds of alcoholic beverages by the drink for consumption away from the licensed premises at other premises approved by the director. Each license shall be further classified into one of the sales-by-drink classifications set forth in this chapter.

(d) A wine manufacturer may apply for a full sales-by-drink license which authorizes the licensee to sell all kinds of alcoholic beverages by the drink for consumption on the premises where sold, if the premises so licensed is in close proximity to the winery. The licensed premises pursuant to this subsection shall also be exempt from the provisions of section 10-211 provided that the licensed premises are located in or upon the premises of a manufacturing facility and the manufacturing facility produces no less than 10,000 barrels of any kind of alcohol per annum. Each license shall be further classified into one of the sales-by-drink classifications set forth in this chapter.

(e) A licensee holding a current full original package sales license or an applicant who is eligible under section 10-211(2) of this chapter to receive a full original package sales license may apply for a sales-by-drink specialty license which will authorize the licensee to sell alcoholic beverages in the original package and light wine by the drink for consumption on the premises as long as the following criteria are met:

(1) The licensee must follow all sections of the ordinance that apply to a sales-by-drink licensed premises as outlined in this chapter; and

(2) The licensee must meet the consent requirement as outlined in section 10-214 of this chapter; and

(3) The only type of alcoholic beverages the licensee is permitted to sell or serve is light wine by the drink in a serving size not to exceed five ounces; and

(4) The licensee will not allow any form of entertainment on the premises as outlined in section 10-332 of this chapter; and

(5) The licensee will be prohibited from licensing any exterior part of the premises; and

(6) A licensee that holds a sales-by-drink specialty license will be treated as a retail sales-by-package license holder under section 10-211(2), for density purposes, of this chapter.

(f) A manufacturer or microbrewery, as defined in this chapter, may apply for a sales-by-drink license which authorizes the licensee to sell only those alcoholic beverages by the drink or by the package that are manufactured on the licensed premises and will not be required to meet a minimum percentage of liquor-by-drink sales or projected sales as required in subsection (b) of this section. Each license shall be further classified into one of the sales-by-drink classifications set forth in this chapter.

Sec. 10-122. Manufacturer's license for manufacture of alcoholic beverages of all

kinds.

A manufacturer's license for manufacture of alcoholic beverages of all kinds authorizes the licensee to manufacture, distill or blend alcoholic beverages of all kinds. A distiller or wine manufacturer may apply for and the director may issue a license to sell intoxicating liquor, as defined in this chapter, by the drink at retail for consumption on the premises where sold; and provided further that the premises so licensed shall be in close proximity to the distillery or wine manufacturing premise and may remain open between the hours of 6:00 a.m. and 1:30 a.m. Monday through Saturday and between the hours of 9:00 a.m. and midnight on Sunday.

Sec. 10-123. Manufacturer's license for manufacture of alcoholic beverages

containing alcohol not in excess of 22 percent by weight.

A manufacturer's license for manufacture of alcoholic beverages containing alcohol not in excess of 22 percent by weight authorizes the licensee to manufacture, distill or blend alcoholic beverages containing alcohol not in excess of 22 percent by weight. A distiller or wine manufacturer may apply for and the director may issue a license to sell intoxicating liquor, as defined in this chapter, by the drink at retail for consumption on the premises where sold; and provided further that the premises so licensed shall be in close proximity to the distillery or wine manufacturing premise and may remain open between the hours of 6:00 a.m. and 1:30 a.m. Monday through Saturday and between the hours of 9:00 a.m. and midnight on Sunday.

Sec. 10-185. Prohibited interest in license.

(a) No individual, partnership, limited liability company or corporation shall be issued a license for the sale of alcoholic beverages at retail or C.O.L. license unless all persons who have a financial interest in the individual, partnership, limited liability company or corporation are of good moral character.

(b) Any:

(1) distiller, wholesaler, winemaker or brewer; or

(2) supplier of coin-operated commercial, manual or mechanical amusement devices; or

(3) employees, officers or agents thereof;

shall not have a financial interest in any individual, partnership, limited liability company or corporation which has a license for the sale of alcoholic beverages at retail or C.O.L. license unless permitted in section 10-102 of this chapter.

(c) Any:

(1) distiller, wholesaler, winemaker or brewer; or

(2) supplier of coin-operated commercial, manual or mechanical amusement devices; or

(3) employees, officers or agents thereof;

shall not furnish either directly or indirectly equipment, other than portable refrigeration units as allowed by RSMo 311.198, money, credit other than ordinary commercial credit for alcoholic beverages, or property of any kind to any individual, partnership, limited liability company or corporation which has a license for the sale of alcoholic beverages at retail or C.O.L. license.

(d) The term financial interest as used in this section is defined to mean all interest, legal or beneficial, direct or indirect, in the capital devoted to the licensed enterprise and all such interest in the net profits of the enterprise, after the payment of reasonable and necessary operating business expenses and taxes, including interest in dividends, preferred dividends, interest and profits, directly or indirectly paid as compensation for, or in consideration of interest in, or for use of, the capital devoted to the enterprise, or for property or money advanced, loaned or otherwise made available to the enterprise, except by way of ordinary commercial credit or bona fide bank credit not in excess of credit customarily granted by banking institutions, whether paid as dividends, interest or profits, or in the guise of royalties, commissions, salaries, or any other form whatsoever. Service as a member of the board of directors of a corporation, the stock of which is traded on the New York or American Stock Exchange or NASDAQ, or ownership of less than ten percent of the outstanding shares in such corporation, shall not constitute a financial interest in such corporation or a subsidiary thereof.

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Approved as to form and legality:

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Martha Means

Assistant City Attorney