AN ACT Relating to
certain retail liquor licensees being licensed as manufacturers; amending RCW
66.28.010; adding a new section to chapter 66.24 RCW; and creating a new
section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec.
1. It is the intent of the
legislature that holders of annual on-premises retail liquor licenses be
allowed to operate manufacturing facilities on those premises. This privilege
is viewed as a means of enhancing and meeting the needs of the licensees'
patrons without being in violation of the tied-house statute prohibitions of
RCW 66.28.010. Furthermore, it is the intention of the legislature that this
type of business not be viewed as primarily a manufacturing facility. Rather,
the public house licensee shall be viewed as an annual retail licensee who is
making malt liquor for on-premises consumption by the patrons of the licensed
premises.
NEW SECTION. Sec.
2. A new section is added
to chapter 66.24 RCW to read as follows:
(1) A public house
license allows the licensee:
(a) To annually
manufacture no less than two hundred fifty gallons and no more than two
thousand four hundred barrels of beer on the licensed premises;
(b) To sell product,
that is produced on the licensed premises, at retail on the licensed premises
for consumption on the licensed premises;
(c) To sell beer or
wine not of its own manufacture for consumption on the licensed premises if the
beer or wine has been purchased from a licensed beer or wine wholesaler;
(d) To hold other
classes of retail licenses at other locations without being considered in
violation of RCW 66.28.010;
(e) To apply for and,
if qualified and upon the payment of the appropriate fee, be licensed as a
class H restaurant to do business at the same location. This fee is in
addition to the fee charged for the basic public house license.
(2) While the holder of
a public house license is not to be considered in violation of the prohibitions
of ownership or interest in a retail license in RCW 66.28.010, the remainder of
RCW 66.28.010 applies to such licensees.
(3) A public house
licensee must pay all applicable taxes on production as are required by law,
and all appropriate taxes must be paid for any product sold at retail on the
licensed premises.
(4) The employees of
the licensee must comply with the provisions of mandatory server training in
RCW 66.20.300 through 66.20.350.
(5) The holder of a
public house license may not hold a wholesaler's or importer's license, act as
the agent of another manufacturer, wholesaler, or importer, or hold a brewery
or winery license.
(6) The annual license
fee for a public house is one thousand dollars.
(7) The holder of a
public house license may hold other licenses at other locations if the
locations are approved by the board.
(8) Existing holders of
annual retail liquor licenses may apply for and, if qualified, be granted a
public house license at one or more of their existing liquor licensed locations
without discontinuing business during the application or construction stages.
Sec. 3. RCW 66.28.010 and 1994 c
63 s 1 are each amended to read as follows:
(1)(a) 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. 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)).
(b) 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)).
(c) 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.
(5) A public house
license issued under section 2 of this act does not violate the provisions of
this section as to a retailer having an interest directly or indirectly in a
liquor-licensed manufacturer.
