AN ACT
Relating to on-premises sales by licensed brewers and domestic wineries; and
amending RCW 66.28.010.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
66.28.010 and 1985 c 363 s 1 are each amended to read as follows:
(1) No
manufacturer, importer, or wholesaler, or person financially interested,
directly or indirectly, in such business, whether resident or nonresident,
shall have any financial interest, direct or indirect, in any licensed retail
business, nor shall any manufacturer, importer, or wholesaler own any of the
property upon which such licensed persons conduct their business, nor shall any
such licensed person, under any arrangement whatsoever, conduct his business
upon property in which any manufacturer, importer, or wholesaler has any
interest. Except as provided in subsection (3) of this section, no
manufacturer, importer, or wholesaler shall advance moneys or moneys' worth to
a licensed person under an arrangement, nor shall such licensed person receive,
under an arrangement, an advance of moneys or moneys' worth: PROVIDED, That
"person" as used in this section only shall not include those state
or federally chartered banks, state or federally chartered savings and loan
associations, state or federally chartered mutual savings banks, or
institutional investors which are not controlled directly or indirectly by a
manufacturer, importer, or wholesaler as long as the bank, savings and loan
association, or institutional investor does not influence or attempt to
influence the purchasing practices of the retailer with respect to alcoholic
beverages. No manufacturer, importer, or wholesaler shall be eligible to
receive or hold a retail license under this title, nor shall such manufacturer,
importer, or wholesaler sell at retail any liquor as herein defined: PROVIDED,
That nothing in this section shall prohibit a licensed brewer ((or domestic
winery)) from being licensed as a retailer pursuant to chapter 66.24 RCW
for the purpose of selling beer or wine ((of its own production)) at
retail on the brewery ((or winery)) premises and nothing in this
section shall prohibit a domestic winery from being licensed as a retailer
pursuant to chapter 66.24 RCW for the purpose of selling beer or wine at retail
on the winery premises. Such beer and wine so sold at retail shall be
subject to the taxes imposed by RCW 66.24.290 and 66.24.210 and to reporting
and bonding requirements as prescribed by regulations adopted by the board
pursuant to chapter 34.05 RCW, and beer and wine that is not produced by the
brewery or winery shall be purchased from a licensed beer or wine wholesaler:
PROVIDED FURTHER, That nothing in this section shall prohibit a licensed brewer
or domestic winery, or a lessee of a licensed brewer or domestic winery, from
being licensed as a class H restaurant pursuant to chapter 66.24 RCW for the
purpose of selling liquor at a class H premises on the property on which the
primary manufacturing facility of the licensed brewer or domestic winery is
located or on contiguous property owned by the licensed brewer or domestic
winery as prescribed by regulations adopted by the board pursuant to chapter
34.05 RCW.
(2)
Financial interest, direct or indirect, as used in this section, shall include
any interest, whether by stock ownership, mortgage, lien, or through
interlocking directors, or otherwise. Pursuant to rules promulgated by the
board in accordance with chapter 34.05 RCW manufacturers, wholesalers and
importers may perform, and retailers may accept the service of building,
rotating and restocking case displays and stock room inventories; rotating and
rearranging can and bottle displays of their own products; provide point of
sale material and brand signs; price case goods of their own brands; and
perform such similar normal business services as the board may by regulation
prescribe.
(3)(a)
This section does not prohibit a manufacturer, importer, or wholesaler from
providing services to a class G or J retail licensee for: (i) Installation of
draft beer dispensing equipment or advertising, (ii) advertising, pouring or
dispensing of wine at a wine tasting exhibition or judging event, or (iii) a
class G or J retail licensee from receiving any such services as may be
provided by a manufacturer, importer, or wholesaler: PROVIDED, That nothing in
this section shall prohibit a retail licensee, or any person financially
interested, directly or indirectly, in such a retail licensee from having a
financial interest, direct or indirect, in a business which provides, for a
compensation commensurate in value to the services provided, bottling, canning
or other services to a manufacturer, so long as the retail licensee or person
interested therein has no direct financial interest in or control of said
manufacturer.
(b) A
person holding contractual rights to payment from selling a liquor wholesaler's
business and transferring the license shall not be deemed to have a financial
interest under this section if the person (i) lacks any ownership in or control
of the wholesaler, (ii) is not employed by the wholesaler, and (iii) does not
influence or attempt to influence liquor purchases by retail liquor licensees
from the wholesaler.
(c)
The board shall adopt such rules as are deemed necessary to carry out the
purposes and provisions of subsection (3)(a) of this section in accordance with
the administrative procedure act, chapter 34.05 RCW.
(4) A
license issued under RCW 66.24.395 does not constitute a retail license for the
purposes of this section.
