SENATE BILL REPORT

                   SB 6538

              As Reported By Senate Committee On:

              Commerce & Labor, February 4, 1998

Title:  An act relating to redefining the criteria for spirits, beer, and wine restaurant licenses.

Brief Description:  Redefining the criteria for spirits, beer, and wine restaurant licenses.

Sponsors:  Senators Schow and Heavey; by request of Liquor Control Board.

Brief History:

Committee Activity:  Commerce & Labor:  2/3/98, 2/4/98 [DP, DNP].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

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

Minority Report:  Do not pass.

  Signed by Senator Heavey.

Staff:  Traci Ratzliff (786-7452)

Background:  Under current law, only establishments such as restaurants or hotels or clubs that prepare, cook and serve complete meals are permitted to sell spiritous liquor for on-premise consumption.  Minors under the age of 21 are permitted in the dining areas of these establishments where spiritous liquor is served.  Such establishments may also have cocktail lounges or bars where liquor is served.  These areas are off-limits to minors under the age of 21.

The license fees for these establishments are based on the amount of dedicated dining area and type of liquor service provided.  These fees range from $1,200 to $2,000.

Summary of Bill:  Establishments that serve complete meals or such foods as sandwiches, hamburgers or salads are permitted to sell spiritous liquor.  Establishments are not required to prepare or cook such foods on the premises.  Establishments (such as comedy or dance clubs) are not required to contain any dedicated dining area.  If an establishment does not contain any dedicated dining area, persons under the age of 21 must be prohibited from entering the establishment.

A new license fee is created for establishments with no dedicated dining area and where persons under 21 years of age prohibited.  The annual fee is $2,500.

Appropriation:  None.

Fiscal Note:  Requested on January 29, 1998.

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

Testimony For:  This bill is a good business bill.  It will allow the public to drink liquor in taverns (current law only allows the service of beer and wine), and will allow small taverns to compete with larger establishments who have had the financial ability to convert to restaurants in order to serve spirits.

Testimony Against:  None.

Testified:  PRO:  Frank Norwood, restaurant owner; Karen Staniford, restaurant owner; David Goyette, Gary Gilbert, Liquor Control Board; Rick Jensen, Washington State Patrol Troopers Association; Deborah Conway, Bronco Inn Tavern.