FINAL BILL REPORT

                  HB 1651

FULL VETO

Brief Description:  Authorizing the sale of malt liquor in untapped kegs by class H licensees.

Sponsors:  Representatives Scott, Costa, Conway and Hatfield.

House Committee on Commerce & Labor

Senate Committee on Commerce & Labor

Background:  Under the state's system of licensing the sale of alcohol, a Class H licensee may sell alcohol, including beer and wine, by the drink to the public for consumption on the premises of the licensee.  Class H licensees are typically restaurants with cocktail lounges where food is served along with alcohol.   A Class H licensee may not hold any other retail license and may not sell alcohol in a closed container to be consumed away from the licensee's premise.

Taverns may sell beer to the public to be consumed on the premises (Class B license),  or may sell beer to be taken off the premises in a closed container to be consumed elsewhere (Class E license).  Under a Class B license, access to the premises is restricted to persons 21 years of age or older.

Restaurants, such as pizza parlors, may sell beer to the public to be consumed on the premises (Class A license) and may also sell beer to be taken off the premises for consumption (Class E).

Only Class A and Class B licensees (on-premises consumption) that also hold a Class E license (off-premises consumption) may sell malt liquor in kegs or other containers that hold at least four gallons.  Class H licensees may not hold Class E licenses (off-premises consumption) and may not sell beer in kegs.

Summary:  Liquor licensees who convert their Class AE or BE combination licenses, allowing the sale of beer for consumption on or off the premises including kegs, to Class H licenses, may continue to sell beer in untapped kegs if authorized by the Liquor Control Board.  This provision applies to licensees who converted after January 1, 1993.

Votes on Final Passage:

House  74 20

Senate 46 1