Effective Date of Rule: Thirty-one days after filing.

     Purpose: The proposed rules will create consistency in standard penalties for commonly violated laws that are not represented in the current penalty matrix, and provide clarity to liquor licensees of the progression of penalties for subsequent violations in various categories.

     Citation of Existing Rules Affected by this Order: Amending WAC 314-29-015, 314-29-020, 314-29-025, 314-29-030, and 314-29-035.

     Statutory Authority for Adoption: RCW 66.08.030.

      Adopted under notice filed as WSR 09-15-112 on July 16, 2009.

     Changes Other than Editing from Proposed to Adopted Version: Revisions to clarify WAC 314-29-015 and 314-29-020 were made regarding monetary penalties in lieu of suspension.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 5, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 5, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: October 14, 2009.

Sharon Foster

Board Chairman

OTS-2506.5

AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)

WAC 314-29-015   What are the penalties if a liquor license holder violates a liquor law or rule?   (1) The purpose of WAC 314-29-015 through 314-29-040 is to outline what penalty a liquor licensee can expect if a licensee or employee violates a liquor control board law or rule (the penalty guidelines for mandatory alcohol server training permit holders are in WAC 314-17-100 through 314-17-110). WAC rules listed in the categories provide reference areas, and may not be all inclusive.

     (2) Penalties for violations by liquor licensees or employees are broken down into four categories:

     (a) Group One -- Public safety violations, WAC 314-29-020.

     (b) Group Two -- ((Conduct)) Regulatory violations, WAC 314-29-025.

     (c) Group Three -- ((Regulatory)) License violations, WAC 314-29-030.

     (d) Group Four -- Nonretail violations involving the manufacture, supply, and/or distribution of liquor by nonretail licensees and prohibited practices between nonretail licensees and retail licensees, WAC 314-29-035.

     (3) For the purposes of chapter 314-29 WAC, a two year window for violations is measured from the date one violation occurred to the date a subsequent violation occurred.

     (4) The following schedules are meant to serve as guidelines. Based on mitigating or aggravating circumstances, the liquor control board may impose a different penalty than the standard penalties outlined in these schedules. Based on mitigating circumstances, the board may offer a monetary option in lieu of suspension during a settlement conference as outlined in WAC 314-29-010(3).

(a) Mitigating circumstances	(b) Aggravating circumstances
((Examples of)) Mitigating circumstances that may result in ((a)) fewer ((number of)) days of suspension and/or a lower monetary option may include((, but are not limited to, having in place)) demonstrated business policies and/or practices ((such as: •     Using licensee certification cards that are correctly filled out and filed; •     Having direct on-site supervision of employees; •     Having a signed acknowledgment of the business' alcohol policy on file for each employee; •     Having an employee training plan that includes annual training on liquor laws; •     Showing cooperation with local law enforcement; etc.)) that reduce the risk of future violations. Examples include: •     Having a signed acknowledgment of the business' alcohol policy on file for each employee; •     Having an employee training plan that includes annual training on liquor laws.	((Examples of)) Aggravating circumstances that may result in ((a higher number of)) increased days of suspension, ((a higher)) and/or increased monetary option, and/or cancellation of a liquor license may include((, but are not limited to: •     Failing to cooperate with local law enforcement or liquor control board employees; •     Not calling for local law enforcement when requested by a customer or liquor control board agent; •     Not checking to ensure employees are of legal age or have appropriate work permits; •     Committing the violation willfully; etc.)) business operations or behaviors that create an increased risk for a violation and/or intentional commission of a violation. Examples include: •     Failing to call 911 for local law enforcement or medical assistance when requested by a customer, a liquor control board officer, or when people have sustained injuries; •     Not checking to ensure employees are of legal age or have appropriate work permits.
(c) In addition to the examples in (a) and (b) of this subsection, the liquor control board will provide and maintain a list of business practices for reference as examples where business policies and/or practices may influence mitigating and/or aggravating circumstances. The established list will not be all inclusive for determining mitigating and/or aggravating circumstances, and may be modified by the liquor control board. The list shall be accessible to all stakeholders and the general public via the internet.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-015, filed 4/4/03, effective 5/5/03.]

Violation Type	1st Violation	2nd Violation in a two-year window	3rd Violation in a two-year window	4th Violation in a two-year window
Violations involving minors: Sale or service to minor: Sale or service of alcohol to a person under 21 years of age. Minor frequenting a tavern, lounge, or other restricted area. RCW 66.44.270 RCW 66.44.310 WAC 314-11-020 WAC 314-16-150	5 day suspension or $500 monetary option	7 day suspension ((with no monetary option))	30 day suspension ((with no monetary option))	Cancellation of license
((Minor frequenting a tavern, lounge, or other age restricted area.	5 day suspension or $500 monetary option	7 day suspension with no monetary option	30 day suspension with no monetary option	Cancellation of license))
Sale or service to apparently intoxicated person: Sale or service of alcohol to, or permitting consumption or possession by, an apparently intoxicated person. RCW 66.44.200 WAC 314-16-150	5 day suspension or $500 monetary option	((5)) 7 day suspension ((or $2,500 monetary option))	((10)) 30 day suspension ((or $5,000 monetary option))	Cancellation of license
Conduct violations: Disorderly conduct by licensee or employee, or permitting on premises. Licensee and/or employee intoxicated on the licensed premises and/or drinking on duty. Criminal conduct: Permitting or engaging in criminal conduct. WAC 314-11-015	5 day suspension or $500 monetary option	((5)) 7 day suspension ((or $2,500 monetary option))	((10)) 30 day suspension ((or $5,000 monetary option))	Cancellation of license
((Criminal conduct: Permitting or engaging in criminal conduct.	5 day suspension or $500 monetary option	7 day suspension with no monetary option	30 day suspension with no monetary option	Cancellation of license))
Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.	5 day suspension or $500 monetary option	7 day suspension	30 day suspension	Cancellation of license
Refusal to allow an inspection and/or obstructing a law enforcement officer from performing their official duties. RCW 66.28.090 RCW 66.44.370 WAC 314-11-090	5 day suspension or $500 monetary option	7 day suspension	30 day suspension	Cancellation of license
Condition of suspension violation: Failure to follow any suspension restriction while liquor license is suspended. WAC 314-29-040	Original penalty plus 10 day suspension with no monetary option	Cancellation of license

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-020, filed 4/4/03, effective 5/5/03.]

Violation Type	1st Violation	2nd Violation in a two-year window	3rd Violation in a two-year window	4th Violation in a two-year window
((Misuse or unauthorized use of liquor license.	5 day suspension or $1,500 monetary option	Cancellation of license	Cancellation of license	Cancellation of license
Sale of alcohol in violation of a board-approved alcohol impact area restriction.	5 day suspension or $500 monetary option	7 day suspension or $1,500 monetary option	10 day suspension with no monetary option	Cancellation of license))
Club liquor to the public. WAC 314-40-010	5 day suspension or $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Employee under legal age or without required mandatory alcohol server training permit. RCW 66.44.316 RCW 66.44.318 RCW 66.44.340 RCW 66.44.350 WAC 314-11-040 WAC 314-11-045 Chapter 314-17 WAC	5 day suspension or (($250)) $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Failure to follow 11:00 p.m. entertainment rules. WAC 314-02-025(2)	5 day suspension or $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Hours of service: Sales, service, removal, or consumption of alcohol between 2:00 a.m. and 6:00 a.m. WAC 314-11-070	5 day suspension or (($250)) $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Keg registration: Failure to properly register kegs. RCW 66.28.200 RCW 66.28.210 WAC 314-02-115	5 day suspension or $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Spirituous liquor not sold by the individual drink. RCW 66.24.400 WAC 314-02-015 (1)(a)	5 day suspension or $500 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Food service: Required food service not available. WAC 314-02-035 WAC 314-02-0411 WAC 314-02-065 WAC 314-02-075	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Hours of operation: Failure to meet required hours of operation. WAC 314-02-015(2)	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
NSF check: Payment by a retail licensee for alcohol purchases. WAC 314-13-020	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Premises not open to the general public while liquor is sold, served, or consumed. WAC 314-11-072	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Sampling and/or cooking class violations. WAC 314-02-105	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Substituting, tampering, improper labeling, unlawful removal, possession, or unauthorized sale of liquor. WAC 314-11-065 WAC 314-11-080 WAC 314-16-020	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
((Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license
Inspections: Refusing to allow inspection(s) by law enforcement.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option ))
Advertising: Advertising violations other than those involving prohibited practices between a nonretail and a retail licensee. Chapter 314-52 WAC.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Hotel/motel honor bar violation. WAC 314-02-080	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Inventory: Inventory below required amount. WAC 314-02-100 WAC 314-02-105	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Lighting: Inadequate lighting. WAC 314-11-055	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Liquor purchased from unauthorized source or sale below cost in violation of liquor law or rule. WAC 314-11-085 WAC 314-13-010 WAC 314-13-040	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Private club violations: Club regulations other than club liquor to the public. Chapter 314-40 WAC	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Records: Improper recordkeeping. WAC 314-11-090 WAC 314-11-095 WAC 314-12-135	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Retailer/nonretailer violation: Violation on the part of a retail licensee that involves a nonretail licensee, other than group four violations.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension ((with no monetary option))
Signs: Failure to post required signs. WAC 314-11-060	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension
Unauthorized alterations, change of trade name, or added activity. WAC 314-02-025 WAC 314-02-125 WAC 314-02-130	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-025, filed 4/4/03, effective 5/5/03.]

Violation Type	1st Violation	2nd Violation in a two-year window	3rd Violation in a two-year window	4th Violation in a two-year window
((Keg registration: Failure to properly register kegs.	5 day suspension or $500 monetary option	5 day suspension or $1,000 monetary option	10 day suspension or $1,500 monetary option	20 day suspension with no monetary option
Signs: Failure to post required signs.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Records: Improper record keeping.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Advertising: Advertising violations other than those involving prohibited practices between a nonretail and a retail licensee.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Inventory: Inventory below required amount.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Unauthorized alterations, change of trade name, or added activity.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Lighting: Inadequate lighting.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option
Liquor purchased from unauthorized source or sale below cost in violation of liquor law or rule.	5 day suspension or $100 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension with no monetary option))
True party of interest violation. RCW 66.24.010(1) WAC 314-12-030	Cancellation of license
Failure to furnish required documents. WAC 314-12-035	Cancellation of license
Misrepresentation of fact. WAC 314-12-010	Cancellation of license
Misuse or unauthorized use of liquor license (operating outside of license class, lending or contracting license to another person/entity). Chapter 66.24 RCW WAC 314-02-015 WAC 314-02-041 WAC 314-02-045 WAC 314-02-065 WAC 314-02-070 WAC 314-02-075 WAC 314-02-090 WAC 314-02-095 WAC 314-02-100 WAC 314-02-105 WAC 314-02-110 WAC 314-12-030	5 day suspension or $1,500 monetary option	Cancellation of license
Operating plan: Violations of a board-approved operating plan. WAC 314-16-270 WAC 314-16-275	5 day suspension or $500 monetary option	7 day suspension or $1,500 monetary option	10 day suspension with no monetary option	Cancellation of license
Sale of alcohol in violation of a board-approved local authority restriction. Chapter 66.24 RCW	5 day suspension or $500 monetary option	7 day suspension or $1,500 monetary option	10 day suspension with no monetary option	Cancellation of license
Sale of alcohol in violation of a board-approved alcohol impact area restriction. WAC 314-12-215	5 day suspension or $500 monetary option	7 day suspension or $1,500 monetary option	10 day suspension with no monetary option	Cancellation of license
Catering endorsement violation. WAC 314-02-060 WAC 314-02-061	5 day suspension or $250 monetary option	5 day suspension or $1,500 monetary option	10 day suspension or $3,000 monetary option	Cancellation of license

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-030, filed 4/4/03, effective 5/5/03.]

Violation type	1st Violation	2nd Violation in a two-year window	3rd Violation in a two-year window	4th Violation in a two-year window
Providing credit to a retail licensee. RCW 66.28.010 WAC 314-12-140 WAC 314-12-145 WAC 314-13-015 WAC 314-13-020	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Quantity discount. RCW 66.28.170 RCW 66.28.180	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Giving away liquor in violation of liquor law or rule. RCW 66.28.040 WAC 314-64-080 WAC 314-64-08001	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Consignment sales/return of product in violation of liquor law or rule. RCW 66.28.010 WAC 314-12-140 WAC 314-13-015 WAC 314-20-070 WAC 314-20-090 WAC 314-24-210	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Advertising violations involving prohibited practices between a nonretail and a retail licensee. RCW 66.28.010 RCW 66.24.570 WAC 314-05-030 WAC 314-52-040 WAC 314-52-070 WAC 314-52-080 WAC 314-52-090 WAC 314-52-113	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Price ((posting)) lists/labeling/ packaging violations. RCW 66.24.145 RCW 66.28.100 RCW 66.28.110 RCW 66.28.120 RCW 66.28.180 WAC 314-20-020 WAC 314-20-030 WAC 314-20-100 WAC 314-20-130 WAC 314-24-003 WAC 314-24-006 WAC 314-24-040 WAC 314-24-080 WAC 314-24-090 WAC 314-24-190 WAC 314-28-090	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Agents violations: Nonretail licensee employing an unlicensed agent. RCW 66.24.310 RCW 66.28.050 WAC 314-44-005	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Unauthorized product/unapproved storage or delivery. RCW 66.24.140 RCW 66.24.160 RCW 66.24.170 RCW 66.24.185 RCW 66.24.200 RCW 66.24.203 RCW 66.24.206 RCW 66.24.240 RCW 66.24.244 RCW 66.24.250 RCW 66.24.261 RCW 66.24.395 RCW 66.28.010 RCW 66.44.140 RCW 66.44.150 RCW 66.44.160 RCW 66.44.170 WAC 314-20-015 WAC 314-20-017 WAC 314-20-055 WAC 314-20-095 WAC 314-20-120 WAC 314-20-160 WAC 314-20-170 WAC 314-24-070 WAC 314-24-115 WAC 314-24-120 WAC 314-24-140 WAC 314-24-160 WAC 312-24-161 WAC 314-24-220 WAC 314-25-020 WAC 314-25-030 WAC 314-25-040 WAC 314-28-050	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Sampling/tasting violations. RCW 66.20.010 RCW 66.24.145 RCW 66.24.170 RCW 66.28.040 RCW 66.28.150 WAC 314-20-015 WAC 314-24-160 WAC 314-45-010 Chapter 314-64 WAC	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Entertainment/ instruction/meeting/ trade show violations. RCW 66.20.010 RCW 66.28.010 RCW 66.28.042 RCW 66.28.043 RCW 66.28.150 RCW 66.28.155 WAC 314-45-010	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
((Providing money or money's worth less than $100.	3 day suspension or $250 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension or $2,000 monetary option))
Providing/accepting money or money's worth: Goods or services worth (($100 to $1,000)) up to $1,500. RCW 66.28.010 WAC 314-12-140 WAC 314-44-005	3 day suspension or $500 monetary option	5 day suspension or $2,500 monetary option	10 day suspension or $5,000 monetary option	20 day suspension or $10,000 monetary option
Providing/accepting money or money's worth: Goods or services worth over (($1,000)) $1,500. RCW 66.28.010 WAC 314-12-140 WAC 314-44-005	Cost of item or service provided plus: 3 day suspension or $1,000 monetary option	Cost of item or service provided plus: 5 day suspension or $2,500 monetary option	Cost of item or service provided plus: 10 day suspension or $5,000 monetary option	Cost of item or service provided plus: 20 day suspension or $10,000 monetary option
Providing/accepting exclusive or contingency agreements. RCW 66.28.010 RCW 66.24.570 WAC 314-12-140 WAC 314-05-030	3 day suspension or $1,000 monetary option	10 day suspension or $6,000 monetary option	20 day suspension or $12,000 monetary option	30 day suspension or $20,000 monetary option
Unauthorized interest or ownership in retail license. RCW 66.28.010 WAC 314-12-030	3 day suspension or $1,000 monetary option	30 day suspension or $20,000 monetary option	Cancellation of license
Failure to obtain surety bond/savings account, if required by the board. RCW 66.24.210 RCW 66.24.290 WAC 314-19-020	Immediate suspension of license until surety bond has been obtained and all missing reports are filed and late taxes are paid.
Failure to file tax/shipment report. RCW 66.24.210 RCW 66.24.290 WAC 314-19-005 WAC 314-19-010 WAC 314-19-020	3 day suspension or $250 monetary option	5 day suspension or $500 monetary option	10 day suspension or $1,000 monetary option	20 day suspension or $2,000 monetary option
Certificate of approval (COA) and/or authorized representative violations. RCW 66.24.206 WAC 314-19-005 WAC 314-19-010 WAC 314-19-020	15 day suspension or $100 monetary option	30 day suspension or $500 monetary option	180 day suspension or $1,000 monetary option	Cancellation of license

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-035, filed 4/4/03, effective 5/5/03.]

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