HOUSE BILL REPORT

HB 1289

BYRepresentatives Cole, Patrick, Vekich, Leonard, Walker, Jones, Wolfe, Prentice and Smith

Modifying business entertainment practices of liquor importers, wholesalers, or manufacturers.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, Prentice, Smith, Walker and Wolfe.

House Staff:Joan Elgee (786-7166)

AS PASSED HOUSE FEBRUARY 3, 1989

BACKGROUND:

Under the "tied-house" law, liquor manufacturers, importers, and wholesalers are prohibited from advancing moneys or moneys' worth to licensed retailers.  The Liquor Control Board has interpreted this provision (based on an Attorney General opinion) to be an unqualified prohibition on gifts, such as food and sports tickets.

In 1988, the Senate considered a bill (SB 6612) which would have allowed entertainment of retailers.  Following the legislature's failure to enact SB 6612, the board proposed rules requiring licensees to submit affidavits of compliance with the prohibition on entertaining retailers.  The board then postponed action on the rules until March 15, 1989, to give the legislature an opportunity to address the issue.

SUMMARY:

Liquor manufacturers, importers, and wholesalers may provide to licensed retailers and their employees 1) food and beverages for consumption at a meeting at which the primary purpose is the discussion of business, 2) tickets or admission fees for athletic events or other forms of entertainment in the state, and food and beverages for consumption at such events, if the manufacturer, importer, or wholesaler accompanies the retailer to the event, and 3) transportation to and from allowed activities in the private vehicle of the manufacturer, importer, or wholesaler.

Fiscal Note:      Requested January 23, 1989.

House Committee ‑ Testified For:    Carter Mitchell, Liquor Control Board; and Bill Fritz, Anheuser- Busch.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill realistically addresses the entertainment issue and will be enforceable.

House Committee - Testimony Against:      None Presented.