State Ex Rel. Schneider v. Kennedy

587 P.2d 844, 225 Kan. 13, 1978 Kan. LEXIS 405
Supreme Court of Kansas·Decided December 5, 1978·No. 50,263·Published·Cited by 37 cases

Opinions

The opinion of the court was delivered by

Schroeder, C.J.:

This is an original action in quo warranto brought by the attorney general challenging the authority of the Director of the Alcoholic Beverage Control Board to issue licenses to class B clubs where liquor may be sold and served in conjunction with the sale and consumption of food.

The issue in this case is whether the 1978 legislative amendments to K.S.A. 41-2601 et seq., and K.S.A. 41-803, authorize the maintenance of an “open saloon” in violation of article 15, section 10 of the Kansas constitution.

The 1978 Kansas legislature amended the Private Club Act, K.S.A. 41-2601 etseq., to authorize the issuance of liquor licenses for class B clubs which are licensed food service establishments as defined in K.S.A. 1977Supp. 36-501. New section 11 of chapter 186, laws of 1978, provides:

“(a) A club license for a class B club specified in subsection (b)(3)(B) of K.S.A. [15]*151977 Supp. 41-2601 and amendments thereto shall allow the licensee to sell and offer for sale alcoholic liquor for consumption on the licensed premises, but only in the same room where food is sold and served with the sale and consumption of such alcoholic liquor.
“(b) This section shall be part of and supplemental to K.S.A. 41-2601 to 41-2635, inclusive, and amendments thereto.”

The legislature, by amending K.S.A. 41-2601, authorized a new type of class B restaurant-club and defined it as follows:

“(B) A premises which is a licensed food service establishment, as defined by K.S.A. 1977 Supp. 36-501 and amendments thereto, of which not less than fifty percent (50%) of the gross receipts in each calendar year are from the sale of food for consumption on the premises.” L. 1978, ch. 186, § 3.

Furthermore, under the new law, class B restaurant-clubs are licensed without membership cards, membership lists, dues, waiting periods, carry-in bottle or liquor pool requirements.

The 1978 legislature also amended the statutory definition of “open saloon.” K.S.A. 41-803 of the Liquor Control Act as amended now provides in pertinent part:

“(a) It shall be unlawful for any person to own, maintain, operate or conduct either directly or indirectly, an open saloon.
“(b) As used in section 10 of article 15 of the constitution of the state of Kansas and this section, ‘open saloon’ means any place, public or private, where alcoholic liquor is sold or offered or kept for sale by the drink or in any quantity of less than two hundred (200) milliliters (6.8 fluid ounces) or sold or offered or kept for sale for consumption on the premises where sold, but does not include any class B club licensed in accordance with K.S.A. 41-2601 to 41-2634, inclusive, and amendments thereto. ” L. 1978, ch. 189, § 13.

Preliminary to our discussion of the merits of this action, the background of liquor regulation in Kansas should be studied. From the very outset of our state’s history, the legality of alcoholic liquor has been a subject of debate, and the state constitution has been the forum for that debate.

At the Wyandotte Constitutional Convention in 1859, a prohibitory provision stating that “the Legislature shall have the power to regulate or prohibit the sale of alcoholic liquor except for mechanical and medicinal purposes” was proposed and subsequently withdrawn. The constitution was adopted without any reference to alcoholic liquor.

In 1880, however, the voters approved the original version of article 15, section 10 of the constitution which provided:

“The manufacture and sale of intoxicating liquors shall be forever prohibited in this state, except for medical, scientific and mechanical purposes.”

[16]*16Thereafter the legislature defined those acts which constituted a manufacture and sale as well as described the substance which could be regarded as intoxicating liquor. It also defined what substances could not be sold for medical, scientific and mechanical purposes. See L. 1881, ch. 128, §§ 2, 10.

Suffice it to say under these laws so-called patent medicines enjoyed a steady increase in popularity. The problems which arose prompted the legislature to respond in 1909 and 1911 by amendments which removed the “medical, scientific and mechanical exception” and substituted a provision which allowed certain wholesale druggists to sell alcohol to registered pharmacists for medicinal purposes. See L. 1909, ch. 164, § 1; L. 1911, ch. 178, § 1. Our court upheld these new laws in numerous cases. Thus, the passage of the 18th amendment to the Constitution of the United States in 1919 prompted little change in an already “dry” Kansas.

In 1933, the 21st amendment to the Constitution, which repealed the 18th amendment, was passed. That same year a special session of the Kansas legislature agreed to submit to the voters of 1934 a proposed amendment to the Kansas constitution which provided:

“The legislature may license and regulate the manufacture, sale, possession and transportation of all liquor having any alcoholic content, and may impose special taxes on all malt, vinous and spirituous liquors, and may provide for the prohibition of such liquors in certain areas.” L. 1933, special session, ch. 128, § 1.

The provision contained no open saloon prohibition and was defeated.

Soon after, the Kansas legislature in 1937 directed that 3.2% beer was not an intoxicating liquor and authorized its sale by licensees throughout the state. This law is now codified as K.S.A. 41-2701 et seq., and has been consistently upheld by our court. See e.g. Johnson v. Reno County Comm’rs, 147 Kan. 211, 212, 75 P.2d 849 (1938); Linquist v. City of Lindsborg, 165 Kan. 212, 214-16, 193 P.2d 180 (1948).

In 1947, the legislature proposed the amendment of article 15, section 10 of the constitution to provide:

“The legislature may provide for the prohibition of intoxicating liquors in certain areas. Subject to the foregoing, the legislature may regulate, license and tax the manufacture and sale of intoxicating liquors, and may regulate the possession [17]*17and transportation of intoxicating liquors.

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State Ex Rel. Schneider v. Kennedy, 587 P.2d 844, 225 Kan. 13, 1978 Kan. LEXIS 405 (kan 1978).

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