Original Notice.

     Preproposal statement of inquiry was filed as WSR 08-02-090.

     Title of Rule and Other Identifying Information: WAC 314-02-005 What is the purpose of this chapter?, 314-02-010 Definitions, 314-02-041 What is a hotel license?, 314-02-0411 What are the food service requirements for a hotel license?, 314-02-0412 Are minors restricted from any areas of the hotel premises?, 314-02-0413 What are the requirements if the hotel licensee does not operate the business serving alcohol or food within the hotel premises?, 314-02-0414 Can a hotel licensee use its alcohol inventory for sales and service at events outside of the hotel premises?, 314-02-0415 What are the requirements for instructing employees on spirits, beer, or wine? and 314-02-080 What are the requirements for a motel licensee or a hotel with a spirits, beer, and wine restaurant license to sell liquor in honor bars?; and repealing WAC 314-02-040 Can a hotel with a spirits, beer, and wine restaurant license sell liquor by the bottle to guests?

     Hearing Location(s): Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA, on July 9, 2008, at 10:00 a.m.

     Date of Intended Adoption: July 23, 2008.

     Submit Written Comments to: Pam Madson, P.O. Box 43080, Olympia, WA 98504-3080, e-mail rules@liq.wa.gov, fax (360) 704-4921, by July 16, 2008.

     Assistance for Persons with Disabilities: Contact Pam Madson by July 16, 2008, TTY (800) 885-2880 or (360) 664-1648.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule proposal implements a new liquor license for qualifying hotel premises. It clarifies food service requirements under this license and clarifies designation of areas of the hotel premises restricted to access by minors.

     Reasons Supporting Proposal: The legislature established a new liquor license for qualifying hotel premises that takes effect July 1, 2008. Members of the hotel industry have identified issues that need clarification as licensees begin operation under this new license.

     Statutory Authority for Adoption: RCW 66.08.030 and 66.24.590.

     Statute Being Implemented: RCW 66.24.590.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Washington state liquor control board, governmental.

     Name of Agency Personnel Responsible for Drafting: Brian Thomas, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1651; Implementation: Alan Rathbun, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1615; and Enforcement: Pat Parmer, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1726.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. No small business economic impact statement was prepared. This proposal imposes only minor impact on businesses in the industry.

     A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required.

June 4, 2008

Lorraine Lee

Chairman

OTS-1607.2

AMENDATORY SECTION(Amending WSR 00-07-091, filed 3/15/00, effective 4/15/00)

WAC 314-02-005   What is the purpose of chapter 314-02 WAC?   Chapter 314-02 WAC outlines the qualifications for the following liquor licenses and permits:

     (1) Spirits, beer, and wine restaurants;

     (2) Hotels;

     (3) Beer and/or wine restaurants;

     (((3))) (4) Snack bars;

     (((4))) (5) Taverns;

     (((5))) (6) Motels;

     (((6))) (7) Bed and breakfasts;

     (((7))) (8) Nonprofit arts organizations;

     (((8))) (9) Public houses;

     (((9))) (10) Grocery stores;

     (((10))) (11) Beer/wine specialty shops; and

     (((11))) (12) Beer/wine gift delivery business.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-005, filed 3/15/00, effective 4/15/00.]

     (1) "Adjacent" means having a common endpoint or border where the extension of the property lines of the licensed premises contacts that common border.

     (2) "Banquet room" means any room used primarily for the sale and service of food and liquor to private groups.

     (((2))) (3) "Customer service area" means areas where food and/or liquor are normally sold and served to the public, i.e., lounges and dining areas. A banquet room is not considered a customer service area.

     (((3))) (4) "Dedicated dining area." In order for an area to qualify as a dedicated dining area, it must be a distinct portion of a restaurant that is used primarily for the sale, service, and consumption of food, and have accommodations for eating, e.g., tables, chairs, booths, etc. See WAC 314-02-025 for more information.

     (((4))) (5) "Designated area" means a space where alcohol may be sold, served, or consumed.

     (6) "Food counter" means a table or counter set up for the primary purpose of food service to customers who sit or stand at the counter. Any alcohol served is incidental to food service.

     (((5))) (7) "Game room" means an area of a business set up for the primary purpose of patrons using games or gaming devices.

     (((6) "Liquor" means beer, wine, or spirits (per RCW 66.04.010(19) - Definitions).

     (7))) (8) "Liquor bar" means a table or counter where alcohol is stored or prepared and served to customers who sit or stand at the bar. Liquor bars can only be in lounges or in premises where minors are not allowed at any time.

     (((8))) (9) "Lounge" means the portion of a restaurant used primarily for the preparation, sale, and service of beer, wine, or spirits. Minors are not allowed in a lounge (see RCW 66.44.316 for information on employees and professional musicians under twenty-one years of age).

     (((9))) (10) "Minor" means a person under twenty-one years of age.

     (((10))) (11) "Service bar" means a fixed or portable table, counter, cart, or similar work station primarily used to prepare, mix, serve, and sell alcohol that is picked up by employees or customers. Customers may not be seated or allowed to consume food or alcohol at a service bar.

[Statutory Authority: RCW 66.04.010, 66.08.030, 66.24.410, 66.44.310, and 66.44.420. 05-22-022, § 314-02-010, filed 10/24/05, effective 11/24/05. Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-010, filed 3/15/00, effective 4/15/00.]

     (a) Serve spirits by the individual serving at retail for consumption on the licensed premises;

     (b) Serve beer, including strong beer, and wine for consumption on the licensed premises;

     (c) Sell at retail, from locked honor bars, in individual units, spirits not to exceed fifty milliliters, beer in individual units not to exceed twelve ounces, and wine in individual bottles not to exceed three hundred eighty-five milliliters, to registered guests of the hotel for consumption in guest rooms;

     (d) Provide, without additional charge, to overnight guests, spirits, beer, and wine by the individual serving for consumption on the licensed premises at a specified regular date, time, and place. Self-service by guests is prohibited;

     (e) Sell beer, including strong beer, wine, or spirits, in the manufacturer's sealed container or by the individual drink to guests through room service, or through service to occupants of private residential units which are part of the buildings or complex of buildings, that include the hotel;

     (f) Sell beer, including strong beer, and wine, in the manufacturer's sealed container at retail sales locations within the hotel premises; and

     (g) Place in guest rooms at check-in, complimentary beer, including strong beer, or wine in a manufacturer's sealed container.

     (2) The annual fee for a hotel license is two thousand dollars.

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     (2) Complete meals must be prepared on the hotel premises.

     (3) A menu must be available to hotel guests and patrons offered alcohol service that lists, at a minimum, the required complete meals.

     (4) The food items required to maintain the menu must be located on the licensed premises. These items must be edible.

     (5)(a) Licensees must maintain complete meal service for a minimum of five hours a day between the hours of 11:00 a.m. and 2:00 a.m. on any day that liquor is served. The board may consider written requests for exceptions to this requirement due to a demonstrated hardship and may allow exceptions under terms and conditions the board determines are in the best interests of the public.

     (b) Minimum food service must be available during hours of alcohol service when complete meal service is not offered. Minimum food service includes items such as hamburgers or fry orders. Snacks such as peanuts, popcorn, and chips do not qualify as minimum food service.

     (6) Hours of complete meal service must be listed on the menu. If applicable, a statement must be posted or listed on the menu that minimum food service is available when alcohol is served and complete meal service is unavailable.

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     (2) The board may restrict alcohol service in areas of the hotel premises where:

     (a) The designated area is designed as an attraction for minors; or

     (b) Consumption of alcohol in a designated area presents an increased risk to public safety.

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     (b) Food and beverage inventory used in separately licensed operations on the hotel premises may not be shared and shall be separately owned and stored by the separate licensees.

     (c) The board may require a hotel licensee to submit a copy of the contract or joint venture agreement when a party other than the hotel operator provides food and alcoholic beverage service. Such contract or agreement must require the provider of food and alcoholic beverage services to meet the food service requirements of WAC 314-02-0411.

     (d) The hotel licensee is responsible for the conduct of alcohol sales and service by a separately licensed business and violation incurred by the separately licensed business may result in an administrative violation for the hotel licensee.

     (2)(a) If alcohol is consumed in an area of the hotel premises operated by a business separate from the hotel business but under a contract or joint venture agreement with the hotel licensee to conduct activities other than food service, the hotel licensee is responsible for violations of alcohol laws and regulations resulting from conduct of the separate business.

     (b) The board may require a hotel licensee to submit a copy of the contract or joint venture agreement between the licensee and the separate business.

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     (1) Remove from the hotel licensee's liquor stocks at the licensed premises, liquor to be sold and served at an event on a specified date at a specified location not currently licensed by the board. If the event is open to the public, it must be sponsored by a society or organization defined under RCW 66.24.375.

     (2) If requested by the board, the licensee must notify the board or its designee of the date, time, and location of these events.

     (3) Licensees may sell and serve liquor under this section on the premises of a domestic winery.

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     (2) The licensee must use spirits, beer, and wine he or she obtains under the license for purposes of instruction.

     (3) The instruction must be given at the hotel premises.

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     (1) The licensee must require proof of age before providing a guest access to an honor bar. The guest must sign a declaration, under penalty of perjury, verifying that:

     (a) The guest is twenty-one years of age or older; and

     (b) No one under twenty-one years of age will have access to the liquor in the honor bar.

     (2) The honor bars must remain locked whenever the room is rented to a guest under twenty-one years of age.

     (3) All liquor stored on the licensed premises must be either locked in an honor bar or locked in a secured liquor storage room.

     (4) No person under twenty-one years of age may have access to the honor bars, liquor storage rooms, or keys, combinations, etc., to the locked honor bars or storage rooms.

     (5) A honor bar or storage room may only be replenished during those hours when liquor may legally be sold (not between 2:00 a.m. and 6:00 a.m.), and only by employees who are twenty-one years of age or older. Beer and wine wholesalers may deliver, price, and stock product only in storage rooms.

     (6) Liquor in honor bars may only be sold in individual containers in the following sizes:

     (a) Spirits - not to exceed fifty milliliters;

     (b) Beer - not to exceed twelve ounces; and

     (c) Wine - not to exceed one hundred eighty-seven milliliters.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-080, filed 3/15/00, effective 4/15/00.]

     The following section of the Washington Administrative Code is repealed:

WAC 314-02-040

Can a hotel with a spirits, beer, and wine restaurant license sell liquor by the bottle to guests?

© Washington State Code Reviser's Office