Kansas Now Requires Licensure & Reporting for All Fulfillment Houses

On May 19, 2021, Kansas Governor Kelly signed legislation (HB 2137) to create new licensing and reporting requirements for fulfillment houses that handle storage, packaging and shipping services on behalf of a winery that holds a Special Order Shipping license.  The new law became effective upon publication in the Kansas Register on May 27, 2021

A separate Fulfillment House license is required for each location and licenses expire two-years after the date of issue. In addition, the law states that “a fulfillment house licensee shall make reasonable efforts to confirm that any winery that they ship alcoholic liquor for holds a special order shipping license and may rely on the representations of each such winery for such assurance.”

More details on the new rules for fulfillment houses that ship to Kansas consumers on behalf of licensed wineries are provided below:

 How to Apply for a Fulfillment House License

“Fulfillment house” means any location or facility for any in-state or out-of-state entity that handles logistics, including warehousing, packaging, order fulfillment or shipping services on behalf of the holder of a special order shipping license issued pursuant to K.S.A. 41-350.

Step 1: File an Irrevocable Consent to Jurisdiction (ABC-160) with the Kansas Secretary of State and pay the $35 filing fee. This is a one-time requirement.

Step 2: While waiting for the Secretary of State to process the Irrevocable Consent to Jurisdiction, apply to the ABC for a Fulfillment House License through the online portal:  https://ksabconline.org/Login.aspx

  • Pay $100 license fee ($50 – license fee, $20 – modernization fee, $30 – new license application fee) online.
  • Submit a copy of the Irrevocable Consent to Jurisdiction Form (ABC-160) that has been stamped “filed” by the Kansas Secretary of State. The license application won’t be complete until the ABC has received the fulfilment house’s filed Irrevocable Consent to Jurisdiction.  The Secretary of State’s approval period is typically longer than the Kansas ABC’s so it’s best to file the Irrevocable Consent to Jurisdiction soon as possible.
  • After approval, the business name, license type and liquor license number will posted to the public ABC Active Liquor Licensee database.

Shipment Container Label Requirement:

  • A fulfillment house licensee shall ensure all containers of alcoholic liquors shipped directly to an individual in this state are labeled with the name, address and license number of the fulfillment house licensee. All such containers shall contain a conspicuously printed statement of “SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”.

 Reporting Requirement:

  • The holder of a fulfillment license must file a monthly report of their shipments electronically by the 15th of the month following shipments. 

The following information must be listed on the report:

  1. Name, address and license number of the special order shipping licensee;
  2. name and license number of the express company or common carrier;
  3. date of each shipment;
  4. carrier tracking number;
  5. name and address of the consignee of such alcoholic liquors; and
  6. weight of the package and product type of alcoholic liquors shipped.

Recordkeeping Requirement:

  • Maintain records of all shipments for a minimum of three years after the shipment date.