FINAL BILL REPORT

                  2SSB 5175

                          C 224 L 96

                      Synopsis as Enacted

Brief Description:  Permitting certain retail liquor licensees to be licensed as manufacturers.

Sponsors:  Senate Committee on Labor, Commerce & Trade (originally sponsored by Senators Pelz and Deccio; by request of Liquor Control Board).

Senate Committee on Labor, Commerce & Trade

House Committee on Commerce & Labor

Background:  Under current law, a liquor manufacturer or wholesaler is prohibited from holding a retail liquor license.  However, a licensed owner of a brewery or winery is allowed to act as a manufacturer, wholesaler and retailer for his or her own product and may also obtain a class H restaurant license to sell liquor of another's making for on-premise consumption. A retail liquor licensee such as a beer and wine restaurant, a class H restaurant, or a tavern, licensed for on-premise consumption of liquor is currently prohibited from obtaining a brewery or winery license.

Restaurant owners have expressed a desire to establish microbrews in their licensed restaurants.  Current law prohibits these arrangements.

Summary:  A retail liquor licensee, such as a beer and wine restaurant, a Class H restaurant, or a tavern, who sells liquor for on-premise consumption may obtain a public house license.  This license permits an operator to manufacture and sell beer of its own making for consumption on the licensed premises.  The amount of beer that a public house licensee may produce is 2,400 barrels annually.  A public house licensee may also sell beer or wine manufactured by others for on-premise consumption and obtain a class H license to sell liquor by the drink for on-premise consumption.

Votes on Final Passage:

Senate    46 0

House     96 2 (House amended)

Senate    47 0 (Senate concurred)

Effective:  June 6, 1996