FINAL BILL REPORT

                  HB 2657

                         C 177 L 00

                     Synopsis as Enacted

Brief Description:  Allowing a licensed distiller to hold a spirits, beer, and wine license.

Sponsors:  Representatives B. Chandler, Conway, Clements and Wood.

House Committee on Commerce & Labor

Senate Committee on Commerce, Trade, Housing & Financial Institutions

Background:

Under Washington's "tied-house" law, certain financial "ties" or business relationships are prohibited between alcohol retailers and alcohol manufacturers or distributors.

The purposes of the tied-house prohibitions are to prevent manufacturers and distributors from engaging in practices that induce retailers to sell certain alcohol products and exclude others and to inappropriately increase consumption.

One type of business relationship prohibited by the tied-house law is allowing licensed liquor manufacturers and distributors to also hold a retail liquor license.  However, the law does allow a brewery or a winery to hold a spirits, beer and wine restaurant license for operation of a restaurant on the site of the brewery or winery or on contiguous property.

A distiller manufactures spirituous liquor products and must be licensed under the liquor laws.

Summary of Bill:

An exception to the tied-house law is created to allow a licensed distiller to hold a spirits, beer and wine restaurant license for the operation of a restaurant on the site of the distillery or on contiguous property.  This exception is similar to that granted to breweries and wineries.

Votes on Final Passage:

House970

Senate442

Effective:June 8, 2000