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The Associated Press July 16, 2010, 11:10AM ET

Kansas governor delays new policy on drink pricing

Kansas Gov. Mark Parkinson ordered a state agency Thursday to delay enforcement of a little-known law that some bar owners believe would hurt business by driving up the price of alcoholic beverages.

The law, largely ignored since its adoption in the mid-1980s, requires drinking establishments to price drinks according to the amount of alcohol they contain -- meaning they would have to charge twice as much for a 32-ounce draft beer as they would for a 16-ounce draft.

Bar owners and business groups began raising objections after the Department of Revenue's Alcoholic Beverage Control division said it would begin enforcing the law Aug. 1. A liquor industry group had said it would ask Attorney General Steve Six's office to review the statute.

Amy Jordan Wooden, a spokeswoman for the governor, said Six contacted Parkinson's office expressing concern about the ABC's plan.

Parkinson directed the agency to hold off enforcement until the Legislature can re-examine the statute after lawmakers convene in January. In the meantime, the ABC and the Department of Revenue are to meet with affected businesses to hear their concerns, Wooden said.

"The interpretation of the statute and regulations related to the pricing of drinks has the potential to significantly impact hundreds of small businesses and generate confusion for consumers," Wooden said in a statement.

The law was passed when the Kansas Constitution was amended to allow the sale of liquor by the drink.

Tom Groneman, the alcohol agency's director, has said the law hadn't been enforced to date because it was either interpreted differently in the past or it was lost among several changes in liquor laws at the time.

Besides beer, the law also applies to well, mixed and specialty drinks, with variations depending on the cost of mixers and sizes.

Enforcing the statute will remove an incentive for customers to buy larger drinks that are cheaper by the ounce.


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