WSR 13-22-092 PROPOSED RULES LIQUOR CONTROL BOARD [Filed November 6, 2013, 10:47 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 13-13-023.
Title of Rule and Other Identifying Information: WAC 314-02-102 What are the requirements for a grocery store licensee to conduct beer and wine tastings? and 314-02-106 What is a spirits retailer license?
Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on December 11, 2013, at 10:00 a.m.
Date of Intended Adoption: December 18, 2013.
Submit Written Comments to: Karen McCall, P.O. Box 43080, Olympia, WA 98504-3080, e-mail kjm@liq.wa.gov, fax (360) 664-9689, by December 11, 2013.
Assistance for Persons with Disabilities: Contact Karen McCall by December 11, 2013, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: SSB 5396 and SSB 5517 passed in the 2013 legislative session directs the board to adopt rules to implement the new privileges that allow a spirits retailer to conduct spirits tastings. The requirements for grocery store licensees to conduct beer and wine tastings changed.
Reasons Supporting Proposal: Rules are needed to clarify the law and what requirements licensees must meet to obtain and maintain these privileges.
Statutory Authority for Adoption: RCW 66.24.363 and 66.24.660.
Statute Being Implemented: RCW 66.24.363 and 66.24.660.
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: Karen McCall, Rules Coordinator, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 663-1631; Implementation: Alan Rathbun, Licensing Director, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1615; and Enforcement: Justin Nordhorn, Enforcement Chief, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not required.
A cost-benefit analysis is not required under RCW 34.05.328.
November 6, 2013
Sharon Foster
Chairman
AMENDATORY SECTION (Amending WSR 11-01-133, filed 12/21/10, effective 1/21/11)
WAC 314-02-102 What are the requirements for a grocery store licensee to conduct beer and wine tastings?
(1) To be issued a beer and wine tasting endorsement, the licensee must meet the following criteria: (a) ((The licensee has retail sales of grocery products for off-premises consumption, not to include candy, soda pop, beer or wine, that are more than fifty percent of the licensee's gross sales, or the licensee is a membership organization that requires members to be at least eighteen years of age; (b))) The licensee operates a fully enclosed retail area encompassing at least ((nine)) ten thousand square feet. The board may issue the endorsement to a licensee with a retail area with less than ((nine)) ten thousand square feet if there is no licensee in the community that meets the ((nine)) ten thousand square foot requirement under the following conditions: There must be at least two employees on duty any time the licensee is conducting beer and wine tasting events. One employee must be dedicated to beer and wine tastings during these events; (((c))) (b) The licensee has not had more than one public safety administrative violation within the last two years. The two-year window is counted from two years prior to the date of the application for the beer and wine tasting endorsement. (See WAC 314-29-020 for a list of public safety violations.) (2) In addition to the conditions in RCW 66.24.363, a beer and wine tasting must be conducted under the following: (a) The licensee must provide a sketch of the tasting area. Fixed or moveable barriers are required around the tasting area to ensure persons under twenty-one years of age do not possess or consume alcohol; (b) Signs advertising beer and wine tastings may not be placed in the windows or outside of the premises that can be viewed from the public right of way; (c) Persons serving beer and wine during tasting events must hold a class 12 alcohol server permit. (3) Licensees are required to send a list of scheduled beer and wine tastings to their regional enforcement office at the beginning of each month. The date and time for each beer and wine tasting must be included.
AMENDATORY SECTION (Amending WSR 12-12-065, filed 6/5/12, effective 7/6/12)
WAC 314-02-106 What is a spirits retailer license?
(1) A spirits retailer licensee may not sell spirits under this license until June 1, 2012. A spirits retailer is a retail license. The holder of a spirits retailer license is allowed to: (a) Sell spirits in original containers to consumers for off-premises consumption; (b) Sell spirits in original containers to permit holders (see chapter 66.20 RCW); (c) Sell spirits in original containers to on-premises liquor retailers, for resale at their licensed premises, although no single sale may exceed twenty-four liters, and single sales to an on-premises licensee are limited to one per day; and (d) Export spirits in original containers. (2) A spirits retailer licensee that intends to sell to another retailer must possess a basic permit under the Federal Alcohol Administration Act. This permit must provide for purchasing distilled spirits for resale at wholesale. A copy of the federal basic permit must be submitted to the board. A federal basic permit is required for each location from which the spirits retailer licensee plans to sell to another retailer. (3) A sale by a spirits retailer licensee is a retail sale only if not for resale to an on-premises spirits retailer. On-premises retail licensees that purchase spirits from a spirits retail licensee must abide by RCW 66.24.630. (4) A spirits retail licensee must pay to the board seventeen percent of all spirits sales. The first payment is due to the board October 1, 2012, for sales from June 1, 2012, to June 30, 2012 (see WAC 314-02-109 for quarterly reporting requirements). Reporting of spirits sales and payment of fees must be submitted on forms provided by the board. (5) A spirits retail licensee may apply for a spirits sampling endorsement to conduct spirits sampling if they meet the following criteria: (a) Be a participant in the responsible vendor program; (b) Advertising: (i) For spirits retail licensees that also hold a grocery store license, signs advertising spirits samplings may not be placed in the windows or outside of the premises that can be viewed from the public right of way; (ii) For spirits retail licensees that also hold a beer/wine specialty store license, advertising of spirits sampling may be advertised but not state that sampling is free of charge. (c) Spirits samplings are to be conducted in the following manner: (i) Spirits samplings service area and facilities must be located within the licensees' fully enclosed retail area and must be of a size and design that the licensee can observe and control persons in the area. (ii) The licensee must provide a sketch of the sampling area. Fixed or moveable barriers are required around the sampling area to ensure that persons under twenty-one years of age and apparently intoxicated persons cannot possess or consume alcohol. The sketch is to be included with the application for the spirits sampling endorsement. (iii) Each sample may be no more than one-half ounce of spirits, and no more than a total of one and one-half ounces of spirits samples per person during any one visit to the premises. Spirits samples must be unaltered. (iv) The licensee must have food available for the sampling participants. (v) Customers must remain in the service area while consuming samples. (vi) All employees serving spirits during sampling events must hold a class 12 server permit. (vii) There must be at least two employees on duty when conducting spirits sampling events. (viii) Spirits sampling activities are subject to RCW 66.28.305 and 66.28.040. (d) Licensees are required to send a list of scheduled spirits samplings to their regional enforcement office at the beginning of each month. The date and time for each sampling must be included. (6) The annual fee for a spirits retail license is one hundred sixty-six dollars.
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