Current through Register Vol. 43, No. 39, September 26, 2024
(a) A class B club
license shall not be issued to any corporation, partnership, trust or
individual if any owner, partner, grantor, trustee, beneficiary, officer,
manager, director, stockholder owning a beneficial interest in a corporation or
spouse of these individuals:
(1) Has been
convicted of a felony under the laws of this state, any other state or the
United States;
(2) has been
convicted of being the keeper or is keeping a house of prostitution or has
forfeited bond to appear in court to answer charges of being a keeper of a
house of prostitution;
(3) has
been convicted of being a proprietor of a gambling house, pandering or any
other crime opposed to decency and morality or has forfeited bond to appear in
court to answer charges for any of those crimes;
(4) is not at least 21 years of age. This
shall not apply to the spouse of the individual or to the beneficiary of a
trust;
(5)
(A) appoints or supervises any law
enforcement officer, other than as a member of the governing body of a city or
county;
(B) is a law enforcement
official; or
(C) is an employee of
the director;
(6)
intends to act as the agent of another in exercising control of the license;
(7) at the time of application for
renewal of the license issued by the director would be ineligible for the
license upon a first application. This provision shall not apply to the spouse
of the individual;
(8) has had any
license or permit issued by the director under the club and drinking
establishment act revoked; or
(9)
has a beneficial interest in the manufacture, preparation or wholesale or
retail sale of alcoholic liquors or a beneficial interest in any other club or
drinking establishment licensed by the director. This shall not apply to any
owner, partner, grantor, trustee, beneficiary, officer, manager, director,
stockholder or spouse who owns a beneficial interest in another club or
drinking establishment if:
(A) the
application is for licensed premises located in a hotel and all of the
individual's beneficial interests are in clubs or drinking establishments
located in hotels; or
(B) the
application is for licensed premises that is a restaurant and all of the
individual's beneficial interests are in clubs or drinking establishments that
are restaurants.
(b) A corporation shall not be issued a class
B club license if any officer, manager, director or stockholder owning a
beneficial interest in the corporation has been an officer, manager, director
or stockholder owning a beneficial interest in a corporation which:
(1) has had a license revoked under the
provisions of the club and drinking establishment act; or
(2) has been convicted of a violation of the
club and drinking establishment act or the cereal malt beverage laws of this
state.
(c) A
partnership, trust or individual shall not be issued a class B club license if
any owner, manager, grantor, trustee, beneficiary or partner:
(1) has been a citizen of the United States
for less than 10 years;
(2) has
been a resident of the state of Kansas for less than one year immediately
preceding the date of application; or
(3) is not a resident of the county in which
the club is to be located.
(d) Each corporate applicant shall be a
Kansas domestic for-profit corporation.
(e) For the purpose of determining
qualifications under subsections (a), (b) and (c) of this regulation, any
person who provides financing to or leases premises to a class B club upon
terms which result in that person having a beneficial interest in the club's
business shall be deemed to be a partner in the club's business. A person who
provides financing to a class B club shall be deemed to have a beneficial
interest in the club's business if the terms for repayment are conditioned on
the amount of the club's receipts or profits from the sale of alcoholic liquor,
other items to be mixed with alcoholic liquor or club membership fees. A lessor
shall be deemed to have a beneficial interest in a club's business if the
lessor receives as rent, in whole or in part, a percentage of the licensee's
receipts or profits from the sale of alcoholic liquor, other items to be mixed
with alcoholic liquor or club membership fees. Financing or percentage rent
provisions that exclude these items shall be subject to review and approval by
the director.
