HOUSE BILL REPORT

SB 6578

BYSenators Lee, Vognild and Warnke

Permitting certain sales of nonliquor food products by licensed wine and beer wholesalers.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (10)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, C. Smith and Walker.

House Staff:Joan Elgee (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 25, 1988

BACKGROUND:

Prior to 1987, the "tied-house" law prohibited licensed beer and wine wholesalers from extending credit to licensed retailers.  This limitation on extension of credit applied to both the sale of liquor and nonliquor products.  During 1987 legislation was enacted that permitted the Liquor Control Board to establish, by rule, procedures for the sale of nonliquor products by licensed persons in accordance with normal commercial practices.  Nonliquor products did not include bottled water and carbonated beverages.  The Board subsequently adopted a rule allowing beer and wine wholesalers to sell nonliquor food products (other than bottled water and carbonated beverages) on thirty days credit.

SUMMARY:

Licensed beer and wine wholesalers are permitted to sell nonliquor food products, including bottled water and carbonated beverages, on thirty-day credit terms to licensed retailers. Complete and separate accounting records on sales of nonliquor food products must be maintained.

Existing provisions relating to normal commercial practices are repealed.

Fiscal Note:      Requested February 22, 1988.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Jan Gee, Washington Retail Association; Mark Tobin, Safeway; Bill Fritz, Anheuser-Busch; Carter Mitchell, Liquor Control Board; Dick Ducharme, Washington Beer and Wine Wholesalers Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This is a compromise proposal which will help the wholesalers and correct a restriction on the flow of goods to the public.

House Committee - Testimony Against:      None Presented.