SENATE BILL REPORT
SB 6572


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported By Senate Committee On:
Labor, Commerce, Research & Development, February 05, 2008

Title: An act relating to off-premises microbrewery warehouses.

Brief Description: Allowing microbreweries to maintain off-premises warehouses for distribution.

Sponsors: Senators Spanel, Jacobsen, Kohl-Welles and McDermott.

Brief History:

Committee Activity: Labor, Commerce, Research & Development: 1/24/08, 2/05/08 [DPS].


SENATE COMMITTEE ON LABOR, COMMERCE, RESEARCH & DEVELOPMENT

Majority Report: That Substitute Senate Bill No. 6572 be substituted therefor, and the substitute bill do pass.Signed by Senators Kohl-Welles, Chair; Keiser, Vice Chair; Holmquist, Ranking Minority Member; Franklin, Hewitt, King, Murray and Prentice.

Staff: Mac Nicholson (786-7445)

Background: Microbreweries are authorized to distribute their product directly to licensed retailers.

Summary of Bill (Recommended Substitute): Subject to approval by the Liquor Control Board (LCB), microbreweries operating as self-distributors are authorized to maintain one off premise warehouse for the distribution of beer.

EFFECT OF CHANGES MADE BY LABOR, COMMERCE, RESEARCH & DEVELOPMENT COMMITTEE (Recommended Substitute): The requirement that the LCB approve the off premise warehouse is added.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: The bill contains several effective dates. Please refer to the bill.

Staff Summary of Public Testimony on Original Bill: PRO: Current law allows brewers to have off-site warehouses, but the brewers can't deliver beer from them. Rather, the beer must go back to the brewery and be distributed from there. Brewers outside the Seattle area spend lots of time driving back and forth on I-5, and with increased fuel costs, brewers are looking to reduce costs. The bill would allow breweries to take trucks off the road.

Persons Testifying: PRO: Charlie Sullivan, Skagit River Brewery; Arlen Harris, Washington Brewers Guild; Ron Main, Washington Beer and Wine Wholesalers.