WSR 15-11-105 PROPOSED RULES LIQUOR CONTROL BOARD [Filed May 20, 2015, 10:55 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-08-032.
Title of Rule and Other Identifying Information: WAC 314-28-030 What does a distillery license allow? and 314-28-050 What does a craft distillery license allow?
Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on July 1, 2015, at 10:00 a.m.
Date of Intended Adoption: July 15, 2015.
Submit Written Comments to: Karen McCall, P.O. Box 43098, Olympia, WA 98504, e-mail rules@liq.wa.gov, fax (360) 664-9689, by July 1, 2015.
Assistance for Persons with Disabilities: Contact Karen McCall by July 1, 2015, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule making is the result of a petition for rule making submitted by a stakeholder requesting the board allow mixers to be used in samples provided at the distillery premises to customer[s].
Reasons Supporting Proposal: This revision in the rules does not create a public safety issue and allows distilleries to provide samples to their customers in the same way spirits retail licensees are allowed to provide samples.
Statutory Authority for Adoption: RCW 66.08.030, 66.24.145.
Statute Being Implemented: RCW 66.24.140, 66.24.145.
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) 664-1631; Implementation: Becky Smith, Licensing Director, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1615; and Enforcement: Justin Nordhorn, Chief Enforcement, 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. A cost-benefit analysis was not required.
May 20, 2015
Jane Rushford
Chairman
AMENDATORY SECTION (Amending WSR 14-20-047, filed 9/24/14, effective 10/25/14)
WAC 314-28-030 What does a distillery allow?
(1) A distillery license allows the licensee to:
(a) Sell spirits of their own production directly to a licensed spirits distributor in the state of Washington and to a licensed spirits retailer in the state of Washington;
(b) Sell spirits of its own production for consumption off the premises. A distiller selling spirits under this subsection must comply with the applicable laws and rules relating to retailers;
(c) Provide free or for a charge one-half ounce or less samples of spirits of its own production to persons on the premises of the distillery.
(i) Samples may be altered with mixers, ice, and/or water ((only)).
(ii) The maximum total per person per day is two ounces.
(iii) Every person who participates in any manner in the service of samples must obtain a class 12 alcohol server permit.
(d) Contract distilled spirits for, and sell contract distilled spirits to, holders of distillers' or manufacturers' licenses, including licenses issued under RCW 66.24.520, or for export.
(2) Contract production is when one distillery, referred to as the "contractor," produces distilled spirits for and sells contract distilled spirits to holders of a distillery license, or manufacturers' license including licenses issued under RCW 66.24.520, referred to as "contractee," and for export from the state. This distilled spirit is referred to as the "product."
(a) The contractee is the product owner. The contractee may handle the product under its license as the Revised Code of Washington and the Washington Administrative Code allow.
(b) The contractor is required to physically transport all contracted product to the contractee. The contractor is not allowed to distribute or retail the product.
(3) The contractor must submit a copy of the contract to the board prior to production. Any changes in the contract must also be submitted to the board prior to subsequent production. The board may require additional information.
(4) The contractor and contractee are required to obtain any federal approvals.
AMENDATORY SECTION (Amending WSR 14-20-047, filed 9/24/14, effective 10/25/14)
WAC 314-28-050 What does a craft distillery license allow?
(1) A craft distillery license allows a licensee to:
(a) Produce one hundred fifty thousand proof gallons or less of spirits per calendar year. A "proof gallon" is one liquid gallon of spirits that is fifty percent alcohol at sixty degrees Fahrenheit;
(b) Sell spirits of its own production directly to a customer for off-premises consumption, provided that the sale occurs when the customer is physically present on the licensed premises. A craft distiller may not sell liquor products of someone else's production;
(c) Sell spirits of its own production to a licensed spirits distributor;
(d) Sell spirits of its own production to a licensed spirits retailer in the state of Washington;
(e) Sell to out-of-state entities;
(f) Provide, free or for a charge, samples of spirits of its own production to persons on the distillery premises.
(i) Each sample must be one-half ounce or less, with no more than two ounces of samples provided per person per day.
(ii) Samples may be altered with mixers, ice, and/or water ((only)).
(iii) Anyone involved in the serving of such samples must have a valid Class 12 alcohol server permit.
(iv) Samples must be in compliance with RCW 66.28.040;
(g) Provide samples of spirits of its own production to retailers. Samples must be unaltered, and in compliance with RCW 66.28.040, 66.24.310 and WAC 314-64-08001. Samples are considered sales and are subject to taxes;
(h) Contract produce spirits for holders of a distiller or manufacturer license.
(2) A craft distillery licensee may add a spirits, beer, and wine restaurant license at the craft distillery premises. The licensee must complete an application and submit the application and applicable fees to the board for processing.
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