HOUSE BILL REPORT

                      HB 1408

                              As Passed House

                               March 15, 1991

Title:  An act relating to licenses to sell liquor in motels.

Brief Description:  Establishing a license to sell liquor in motels.

Sponsor(s):  Representatives Dellwo, Silver, Orr, Padden, D. Sommers and Mielke.

Brief History:

   Reported by House Committee on:

Commerce & Labor, March 5, 1991, DP;

Appropriations, March 9, 1991, DP;

Passed House, March 15, 1991, 90-8.

HOUSE COMMITTEE ON

COMMERCE & LABOR

Majority Report: Do pass.  Signed by 9 members:  Representatives Heavey, Chair; Fuhrman, Ranking Minority Member; Lisk, Assistant Ranking Minority Member; Jones; R. King; O'Brien; Prentice; Vance; and Wilson.

Minority Report: Do not pass.  Signed by 2 members:  Representatives Cole, Vice Chair and Franklin.

Staff:  Jim Kelley (786-7166).

HOUSE COMMITTEE ON

APPROPRIATIONS

Majority Report: Do pass.  Signed by 22 members:  Representatives Locke, Chair; Inslee, Vice Chair; Spanel, Vice Chair; Silver, Ranking Minority Member; Appelwick; Bowman; Braddock; Brekke; Dorn; Ferguson; Fuhrman; Hine; May; McLean; Mielke; Peery; Pruitt; H. Sommers; Sprenkle; Valle; Vance; and Wineberry.

Minority Report: Do not pass.  Signed by 3 members:  Representatives Morton, Assistant Ranking Minority Member; Nealey; and Wang.

Staff:  Susan Kavanaugh (786-7130).

Background:  Hotels and clubs with class H liquor licenses may sell liquor by the bottle to registered guests for consumption in guest rooms, hospitality rooms, or at banquets.  Guests may remove from the premises any unused portion of purchased liquor in its original container.  To be a "hotel" for purposes of a class H license, a facility must have a dining room serving complete meals.

There is no authorization for a facility offering sleeping accommodations but ineligible for a class H license to sell liquor by the bottle to guests.

Summary of Bill:  A new class M liquor license is established.  The license may be issued to a motel, which is defined as a facility offering three or more self-contained units to travelers and transient guests.  The license must not be issued to a motel offering rooms on an hourly basis.  The license authorizes the motel to sell individual bottles of spirits not to exceed 50 milliliters, individual bottles of wine not to exceed 187 milliliters, and individual cans and bottles of beer not to exceed 12 ounces, to registered guests for consumption in guest rooms.

The alcohol must be kept in locked honor bars and the bars must also contain snack foods.  A licensee may not have honor bars in more than one-half of its guest rooms.  The licensee must require proof of age from guests requesting the use of an honor bar.  The guest must also sign an affidavit verifying that no one under twenty-one years of age will have access to the alcohol.

Fiscal Note:  Available.

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

Testimony For:  (Commerce & Labor): There are many other states that allow motels to sell liquor.  It will be tightly regulated to avoid potential abuses.  This bill is good for small businesses.

(Appropriations): Same as in Committee on Commerce and Labor. Also the additional cost of this new class of licensees would be offset by additional licensing fees.

Testimony Against:  (Commerce & Labor): This will create an additional 800 to 1,200 new licensees.  The Liquor Control Board will need at least four new enforcement agents if this bill becomes law.

(Appropriations): None.

Witnesses:  (Commerce & Labor): Representative Dennis Dellwo, Prime Sponsor; R. Terry Lynch and Raymond E. Thieman, Washington State Hotel/Motel Association and Innkeepers (in favor); and Carter Mitchell, Liquor Control Board (opposed).

(Appropriations): Becky Bogard, Washington State Hotel and Motel Association (in favor).