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8.6 AlcoholCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 9/27/2010 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: 8 AGENDA: CITY ATTORNEY’S OFFICE ITEM NO. 6 BY: BY: Jared B. Johnson Page 1 ITEM: Ordinance No. 10-574 An ordinance amending Chapter 5, Article I, of t he Salina Code to incorporate state law changes regarding consumption of alcohol by minors and prohibiting hosting of minors; amending Chapter 5, Division 2, Article II, of the Salina Code by amending section 5-38 regarding retailer’s license duration and occupation tax, and by amending Ch apter 5, Article IV in its ent irety to incorporate state law changes to club and drinking establishment definitions, licensing procedures, and to reorganize Article IV to combine club and drinking establishment provisions; and repealing sections, 25-81, 25-82, 5-51 through 5-53, 5-71, and Chapter 5, Division 3, Article IV, “Drinking Establishments,” and repealing the previous sections in conflict herewith. BACKGROUND: Consumption by Minors. 1. Section 5-1 is amended to re flect state law regarding the progressive suspension of driver’s license privileges and the ability of law enforcement officers to use preliminary breath tests to detect consumption by minors. Furnishing to minors. 2. Sections 5-2 and 5-3 have been added to Article I for enforcement and organizational purposes. Previously, Salina Code prohibiting the furnishing of alcohol and cereal malt beverages (CMB) distinguished between alcoholic beverages and CMB requiring law enforcement officers to distinguish between the two during investigation and prosecution. Sections 25-81, 25-82, 5-71 an d 5-124 of the current Salina Code prohibits furnishing to minors. These sections have been repealed and incorporated in Sections 5-2 and 5-3. Unlawful Hosting. 3. Section 5-4 incorporates state la w prohibiting the unlawful hosting of minors consuming alcoholic liquor or cereal malt beverage. Licensing and Occupation Tax Changes. 4. During the 2010 legislative session, state law makers amended the license procedures and the occupation tax for alcohol related licenses. Specifically, alcoholic beverage retailer’s licenses, and club licenses became two-year licenses effective July 1, 2010. Drinking establishment licenses will become two-year licenses on July 1, 2011. The license fees and occupation taxes have been adjusted accordingly. Applicants now have the option of making two installment payments for the biennial license and occupation tax and can obtain a refund for the second year of the unused portion of the license pursuant to state regulations. Sections 5-38 and 5-139 of the proposed ordinance reflect these changes. Distributor’s license. 5. Alcohol and CMB distri butor’s licenses are regulated by the Kansas Department of Revenue. Cities can impose an occupation tax. Historically, the City of Salina has not imposed a distributor’s license tax. These sections have been deleted in the proposed ordinance accordingly. Chapter 5, Article IV and V 6.. Current Salina Code disti nguishes between licensing and regulation for Clubs and Drinking Establishments. State law provides for similar license and regulation requirements for Clubs and Drinking Establishments. For organizational and licensing efficiency purposes, Article V has been deleted and incorporated into Article IV. In addition, Article IV has been updated to reflect changes in state law regarding definitions, qualifications for a license and enforcement. The purpose of these changes is to simplify the Code structure for the licensing process and to reduce the need for future updates when the legislature changes state law. For example, the current Sa lina Code regarding restrictions CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 9/27/2010 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: 8 AGENDA: CITY ATTORNEY’S OFFICE ITEM NO. 6 BY: BY: Jared B. Johnson Page 2 barring issuance of a license applies to Clubs only and lists each item that would bar issuance of the license. The revised section 5-140 incorporates drinking establishments and refers to the State of Kansas qualification requirements for club and drinking establishments. Paragraph (2) lists county residence as a requirement which is not found in state law. The purpose of referring to state law is to potentially reduce the need for amending that section in the future. Similarly, the term “drinking establishment” has been incorporated into the regulation and license provisions of the current code applying to clubs thereby reflecting state law regulations that apply equally to both. Article IV has been amended in its entirety to incorporate drinking establishment license and regulation provisions. Article V has been deleted. FISCAL NOTE: The ordinance has no fiscal impact. RECOMMENDATION: Adopt Ordinance No. 10-10574 on first reading.