SENATE BILL REPORT

                   HB 2847

              As Reported By Senate Committee On:

              Commerce & Labor, February 27, 1998

Title:  An act relating to technical changes regarding designations for liquor licenses.

Brief Description:  Making technical changes regarding designations for liquor licenses.

Sponsors:  Representatives McMorris and Conway; by request of Liquor Control Board.

Brief History:

Committee Activity:  Commerce & Labor:  2/23/98, 2/27/98 [DPA, DNPA].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass as amended.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Anderson and Newhouse.

Minority Report:  Do not pass as amended.

  Signed by Senators Franklin and Fraser.

Staff:  David Pringle (786-7448)

Background:  In 1997, legislation was adopted redefining the various types of liquor licenses issued by the state.  This legislation takes effect on July 1, 1998.  Two new liquor licenses called the Afull service restaurant@ license and Alimited service restaurant@ license were established as part of the 1997 legislation.  The Afull service@ license allows the sale of beer, wine and spiritous liquor.  The Alimited service@ license allows the sale of beer and wine.  Concerns have been raised regarding the vague nature of these licensing designations and the potential confusion arising from such designations.

Summary of Amended Bill:  Modifications are made to the designations for liquor licenses issued to restaurants.  A Afull service restaurant@ license is changed to a Aspirits, beer and wine restaurant@ license.  A Alimited service restaurant@ license is changed to a Abeer and wine@ restaurant license.

Changes are made to the license designation for wholesalers and brewers, designating them distributors and breweries, respectively.

A definition for Alow-alcohol beverage coolers@ containing spirits is added, and those beverages are exempt from the spirits tax of $1.72 per liter.

Amended Bill Compared to Original Bill:  Provisions defining and exempting low-alcohol beverage coolers containing spirits from the spirits liter tax are added by the amendment to the original bill.  The provision regarding liquor license designations are the same in the original and amended bills.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill takes effect July 1, 1998.

Testimony For:  The original bill would clarify and improve upon the terms that are to reduce the Aalphabet soup@ being used to designate liquor licenses.

Testimony Against:  None.

Testified:  PRO:  Kit Hawkins, Washington Restaurant Association; Chuck Dalrymple, Washington State Liquor Control Board.