HOUSE BILL REPORT

                 ESB 6292

             As Reported By House Committee on:

                      Commerce & Labor

Title:  An act relating to on-premises sales by licensed brewers and domestic wineries.

Brief Description:  Expanding the sales opportunities of licensed brewers and domestic wineries.

Sponsor(s):  Senators Bauer, Newhouse, Thorsness, Moore and Vognild.

Brief History:

  Reported by House Committee on:

Commerce & Labor, February 26, 1992, DPA.

HOUSE COMMITTEE ON

COMMERCE & LABOR

Majority Report: Do pass as amended.  Signed by 10 members:  Representatives Heavey, Chair; G. Cole, Vice Chair; Fuhrman, Ranking Minority Member; Lisk, Assistant Ranking Minority Member; Franklin; Jones; R. King; O'Brien; Prentice; and Vance.

Staff:  Jim Kelley (786-7166).

Background:  Breweries are licensed to sell beer of their own production for on or off-premise consumption.  For the purpose of conducting such activity, an establishment holding a brewer's license is considered to have wholesaling and retailing privileges for products of their own production.  However, a brewery desiring to sell wine or beer produced by another brewery for consumption on premises is required to hold a class H restaurant license and must provide full meal services.

Domestic wineries are licensed to sell wine of their own production for on or off-premise consumption.  For the purposes of conducting such activity, an establishment holding a domestic winery license is also considered to have wholesaling and retailing privileges for products of their own production.  However, a winery desiring to sell beer or wines produced by another winery for consumption on premises is required to obtain a class H restaurant license and must provide full meal service.

The range of license fees for applicable retail liquor licenses are as follows:  A-beer license $205-$355; B-beer tavern, $205-$355; C-wine, $150-$300; H‑beer/wine/spirits, $1,200-$2,000.

Summary of Amended Bill:  Licensed brewers and wineries are authorized to obtain a beer or wine retailers' license for on‑premise consumption at the brewery or winery.  The alcoholic beverages that are not produced by the brewery or winery are required to be purchased from a licensed beer or wine wholesaler.

Amended Bill Compared to Engrossed Bill:  The amended bill allows wineries to obtain retailers' licenses to sell beer or wine on-premises.

Fiscal Note:  Requested January 23, 1992.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Breweries and wineries would like to offer products other than just their own beer or wine, without having to offer full meal service.  Brewhouses are the wave of the future.

Testimony Against:  None.

Witnesses:  Carter Mitchell, Liquor Control Board; and T. K. Bentler, Washington Association of Microbreweries (in favor).