AN
ACT Relating to providing limited circumstances under which a qualifying
manufacturer that is a public company may have an indirect interest in property
on which a retail liquor licensed premises is located; and amending RCW
66.28.010.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
66.28.010 and 1994 c 63 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 or her business upon property in
which any manufacturer, importer, or wholesaler has any interest unless
title to that property is owned by a corporation in which a manufacturer has no
direct stock ownership and there are no interlocking officers or directors, the
retail license is held by an independent concessionaire which is not owned
directly or indirectly by the manufacturer or property owner, the sales of
liquor are incidental to the primary activity of operating the property as an
amphitheater offering live musical and similar live entertainment activities to
the public, alcoholic beverages produced by the manufacturer are not sold at
the licensed premises, and the board reviews the ownership and proposed method
of operation of all involved entities and determines that there will not be an
unacceptable level of control or undue influence over the operation of the
retail licensee. 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 from being
licensed as a retailer pursuant to chapter 66.24 RCW for the purpose of selling
beer or wine at retail on the brewery 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 beer or wine at a beer or 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.
