Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Commerce & Labor Committee

SB 6601

Brief Description:  Allowing a licensed distiller, domestic brewery, microbrewery, or domestic winery to sell liquor at a spirits, beer, and wine restaurant located on contiguous property that is leased by that licensed distiller, domestic brewery, microbrewery, or domestic winery.

Sponsors:  Senators Prentice, Rasmussen, Kohl‑Welles, McAuliffe and Hale.

Brief Summary of Bill

$Allows a distiller, brewery, or winery to be licensed to operate a spirits, beer, and wine restaurant on property contiguous to and leased by the distiller, brewery, or winery.

Hearing Date:  2/21/02

Staff:  Sydney Forrester (786‑7120).

Background:

Tied-house laws prohibit certain ?ties@ or business relationships between liquor manufacturers or distributors and liquor retailers.  The underlying purpose of Washington=s tied-house law is to prevent manufacturers or distributors from attempting to induce retailers to exclude one liquor product over another, or to induce retailers to inappropriately increase consumption.

Since its enactment as part of the Steele Act in 1933, the state=s tied-house law has been amended to create certain limited exceptions to the general prohibition.  One such exception allows a licensed distiller, domestic winery, or domestic brewery to also be licensed to operate a spirits, beer, and wine restaurant on property contiguous to and owned by the distiller, brewery, or winery.  A spirits, beer, and wine restaurant license permits the sale of liquor by the drink for on-premises consumption.

Summary of Bill:

A licensed distiller, domestic winery, or domestic brewery may be licensed to operate a spirits, beer, and wine restaurant on property contiguous to and leased by the distiller, brewery, or winery.

Rules Authority:  This bill does not contain provisions addressing the rule-making powers of an agency.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.