(a) Any person holding a license to sell or serve cereal malt beverages to be consumed on the premises shall open his books and records to the City, or its authorized agents, for the purpose of determining whether such establishment is, in fact, a restaurant as defined by K.S.A. 41-2601.

(b) Every business that falls under the provisions of TMC 5.55.080(a)(3) shall keep, and provide to the City upon request, gross receipts which reflect the amount and cost of cereal malt beverages purchased from any distributor and the amount and cost of foodstuffs bought from vendors. The business shall also keep records of the amount and cost of cereal malt beverages sold at retail and the amount and cost of food sold at retail by the business to consumers.

(c) To determine whether a business is a restaurant, such determination shall be based upon the most recent calendar year such business operated, except if such business has not been in operation for one calendar year, then the period the business has been operated shall be used for such determination. At no time should an examination of the records and receipts of a business be conducted under this section until three months have elapsed since such business received its cereal malt beverage license.

(d) Every business that is governed by the provisions of TMC 5.55.080(a)(3) is prohibited from conducting promotional activities wherein free cereal malt beverages would be furnished with food purchases.

(e) Any business under this section that knowingly or willfully fails to maintain receipts and records as set forth in subsection (b) of this section shall be subject to revocation of its license for failure to comply.

(f) Any business currently operating is required to comply with the provisions of this section regardless if it began operations prior to the effective date of the ordinance from which this section derives. (Code 1981 § 5-51.5. Code 1995 § 10-78.)