SENATE BILL REPORT

                   SB 5338

               As Passed Senate, March 13, 1997

Title:  An act relating to the restricted use of spirituous liquor at no charge.

Brief Description:  Allowing restricted use of spirituous liquor at no charge.

Sponsors:  Senators Horn, Heavey and Schow.

Brief History:

Committee Activity:  Commerce & Labor:  2/4/97, 2/11/97 [DP].

Passed Senate, 3/13/97, 39-8.

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Franklin, Fraser, Heavey and Newhouse.

Staff:  Traci Ratzliff (786-7452)

Background:  Under current law, a brewer, winery, or beer or wine wholesaler is permitted to furnish samples of beer or wine to an authorized licensee for the purposes of negotiating a sale.  Such entities are also allowed to provide free samples of beer or wine to licensees and their employees for the purposes of instructing them on the history, nature, values, and characteristics of beer or wine.  In addition, such entities are permitted to conduct educational activities for and provide free samples of liquor to consumers of retail liquor licensees.

Current law prohibits distillers from conducting any of these activities and providing free samples of spiritous liquors in the course of such activities.

Summary of Bill:  Distillers are permitted to furnish samples of spiritous liquor to authorized licensees and/or their employees in the course of conducting the following activities:  for the purposes of negotiating a sale; for the purposes of instructing licensees and their employees regarding the history, nature, values, and characteristics of spiritous liquor.  In addition, distillers are also permitted to conduct educational activities for and provide free samples of liquor to consumers of retail liquor licensees.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill provides the distilled spirits industry with the same privileges currently extended to wine and beer manufacturers.

Testimony Against:  None.

Testified:  PRO:  Carter Mitchell, Liquor Control Board; Jim Halstrom, Joseph Seagrams; Frank Warnke, Distilled Spirits Council of U.S.