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.
