The Kansas Department of Revenue, Alcohol Beverage Control Division (the Division) is responsible for the issuing and renewal of licenses, and ensuring the compliance of state laws, and public awareness information. Liquor retailers, beer distributors, spirits distributors, wine distributors, farm wineries, microbreweries, micro distilleries, alcohol manufacturers, non-beverage users, and alcohol and winery special order shippers are required to apply for a license and obtain a surety bond in order to operate a business.
The obligee is the entity that requires the bond. The Kansas Department of Revenue, Alcohol Beverage Control Division requires a surety bond for any liquor retailer, beer distributor, spirits distributor, wine distributor, farm winery, microbrewer, micro distiller, alcohol manufacturer, non-beverage user, and alcohol and liquor special order shipper. The applicant has the option of either a surety bond or an escrow bond. The surety bond is issued by a surety and an escrow bond is signed by a bank or financial institution approved by the state. The escrow bond requires a letter of credit from an approved bank or financial institution for the required bond amount.
A surety bond ensures compliance of state regulations and laws and payment of liquor drink taxes. Failure to comply or perform as required by state laws and regulations may result in a claim filed against the bond by the Division. If the Division files a claim against the surety bond, the owner (named as the principal on the bond form) will be responsible for repayment of the claimed amount if the claim is paid out by the surety.
The surety bond must be in place along with the license application and during all business operations. The premium will renew on the bond on an annual basis. If the applicant business changes ownership, a replacement bond is required to fulfill the surety bond conditions. Failure to maintain the bond will result in penalties by the Division.
The original surety bond and power of attorney (provided by the issuing surety) will need to be submitted along with the license application to the Kansas Alcohol Beverage Control Division, 915 SW Harrison Street, Topeka, KS 66612-1588.
The Kansas Liquor License Surety Bond amount is based on the type of license the applicant is applying for and in some cases, to the monthly tax liability. If the applicant is a distributor who needs more than license type, only one surety bond will be required. The surety bond amount will be based on the highest bond amount required. The bond form will be completed by the surety and will be signed, have a corporate seal and will include a notarized signature by the surety. The applicant will also need to sign the bond in the presence of a notary before sending the surety bond to the state.
The premium that you pay for a Kansas Liquor License surety bond is dependent on credit and the bond amount required. Rates for bond amounts under $10,000 start at $100 with good credit. Premiums for bond amounts over $10,000 start at 1% with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Kansas liquor licenses renew every two years from the date of issuance.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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