FINAL BILL REPORT

                  HB 1060

 

                        PARTIAL VETO

                         C 232 L 95

                     Synopsis as Enacted

 

Brief Description:  Improving the licensing sections of the Washington state liquor act.

 

Sponsors:   Representatives Lisk and Sheldon; by request of Liquor Control Board.

 

House Committee on Commerce & Labor

House Committee on Appropriations

Senate Committee on Labor, Commerce & Trade

 

Background:  

 

Uncontested and Unopposed Applications

 

The Washington State Liquor Control Board has sole authority to grant or refuse an application for a liquor license.  As part of the application process, the appropriate city, town, or county authority is notified and may submit objections to the application.  For certain licenses, the proximity to churches, schools, and public institutions may also generate objections.

 

License Transfers

 

A licensee may transfer a license to another qualified person, or may transfer the location of the licensed premises for a fee of $75.  No transfer is allowed if the transfer includes both a change in licensee and a change in location of the licensed premises.  Licenses may be transferred with no charge to the surviving spouse of a deceased licensee.

 

Use of Revenue Stamps

 

Taxes imposed on the sale of beer and wine may be collected by the use of revenue stamps or direct payments.  The use of revenue stamps has been discontinued by the Liquor Control Board.

 

Inconsistency in Size of Beer Containers

 

Class A (restaurants and dining places) and Class B (taverns) licensees may sell beer for consumption off premises if the beer is in the manufacturer's original sealed container of not less than seven and three-fourths gallons.  Beer kegs or containers of not less than four gallons must be registered when sold by a licensed retailer holding a Class A or B license in combination with a Class E license (grocery stores, and others).

 

Class I (Caterer's) License

 

There is a special-occasion license known as a Class I caterer's license.  It allows certain existing retail licensees (Class A, B, D, and public H) to sell liquor for consumption on the premises at a special event located away from the licensed premises.  The license may be issued on a per day basis for a fee of $25 a day or on an annual basis for a fee of $350.

 

Price Posting

 

Breweries, wineries, beer and wine wholesalers and importers, and those holding certificates of approval from the board may not modify any prices without prior notification and approval of the board.  The board has adopted rules to implement this provision.

 

Extending Class H Liquor Licenses

 

Under limited circumstances, a Class H licensee may extend a Class H license to another location.   For example, a Class H licensee who provides food service at public civic centers having sport and entertainment facilities may extend their liquor license privileges to additional locations on the premises under duplicate licenses issued by the liquor control board.   There is no specific provision that allows a hotel corporation that owns or leases non-contiguous property  to operate food and alcoholic beverage service for special events open to the public.

 

Summary

 

Uncontested and Unopposed Applications

 

The Liquor Control Board may grant to a designated employee of the board, the authority to approve uncontested and unopposed applications for a liquor license.  The grant of authority must be in writing.  The Board will establish the criteria for granting this authority by rule.

 

License Transfers

 

Transfers of existing licenses and the transfer fee are eliminated.  A change of licensee or a change of location requires a new license application and fee.  A license continues to be transferable at no charge to a surviving spouse with the approval of the Board.

 

Use of Revenue Stamps

 

The provisions relating to the use of revenue stamps to collect liquor taxes for wine and beer are eliminated.

 

Inconsistency in Size of Beer Containers

 

Class A and B licensees may sell beer for consumption off premises if the beer is in the manufacturer's original sealed container of not less than four gallons.  This provision is consistent with the minimum keg or container size that is required for keg registration.

 

Class I (Caterer's) License

 

The per-day license fee option for a Class I caterer's license is eliminated leaving only an annual license fee.

 

Price Posting

 

The Liquor Control Board is given explicit authority to require beer and wine wholesalers and manufacturers to file with the board prices at which they will sell beer and wine in this state.  Prices cannot be changed unless specific procedures are followed.  Price information is not confidential.

 

Extending Class H Liquor Licenses

 

A Class H licensed hotel may extend its Class H license to other property it owns or leases that is located in the same metropolitan area and used as a convention, conference center, or banquet facility for special events by the public.

 

Votes on Final Passage:

 

House     98 0

Senate    47 0 (Senate amended)

House     93 0 (House concurred)

 

Effective:  July 23, 1995

 

Partial Veto Summary:  The Governor vetoed provisions allowing a Class H licensed hotel to extend the license to other property owned or leased by the hotel.  (These provisions duplicated those contained in SB 5563.)