SENATE BILL REPORT

                                   ESB 6292

                      AS PASSED SENATE, FEBRUARY 13, 1992

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

SPONSORS: Senators Bauer, Newhouse, Thorsness, Moore and Vognild

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass as amended. 

      Signed by Senators Matson, Chairman; Bluechel, McDonald, McMullen, Moore, Murray, and Skratek.

Staff:  Patrick Woods (786‑7430)

Hearing Dates: January 27, 1992; February 5, 1992

BACKGROUND:

Under current law, 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.

In like manner, 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:

Licensed brewers are authorized to obtain a beer or wine retailers' license for on-premise consumption at the brewery or domestic winery.  The alcoholic beverages that are not produced by the brewery are required to be purchased from a licensed beer or wine wholesaler.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested January 23, 1992

TESTIMONY FOR:

Granting Washington breweries, in particular microbreweries, the ability to sell beer or wine produced by other manufacturers will provide greater selection to consumers and increase on-premise sales.

TESTIMONY AGAINST:  None

TESTIFIED:  T.K. Bentler, Washington Association of Small Brewers (pro); Pamela Hinckley, Redhook (pro); Carter Mitchell, Liquor Control Board (pro); Dick Ducharme, Washington Beer and Wine Wholesalers Association (pro); Victoria Chiechi, Washington Wine Institute (pro)

HOUSE AMENDMENT(S):

The amended bill also allows wineries to obtain retailers' licenses to sell beer or wine on-premises.