H-1349.1  _______________________________________________

                          HOUSE BILL 1806

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Clements and Wood

Read first time 02/05/2001.  Referred to Committee on Commerce & Labor.

Regulating wine and beer pricing by the liquor control board.

    AN ACT Relating to wine and beer pricing by the liquor control board; adding a new section to chapter 66.16 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  It is the intent of the legislature to:  Promote the public's interest in fostering the orderly and responsible distribution of malt beverages and wine towards effective control of consumption; recognize the principles of a fair and efficient private sector threeBtier system of distribution of such beverages; and establish a pricing procedure of wine and malt beverage products sold at retail by the liquor control board that will diminish the board's unfair competitive advantage over the state-mandated private sector three-tier system of distribution and pricing of wine and malt beverages.

NEW SECTION. Sec. 2.  A new section is added to chapter 66.16 RCW to read as follows:

    (1) The liquor control board must use the following calculation to establish monthly retail sale prices of beer and wine products sold in liquor control board stores and agency stores:  The average wholesale product price posted for the private sector filed under RCW 66.28.180, plus a statewide average retail price markup of twenty-five percent for both malt beverages and wine.

    (2) Individual product retail price markups may vary to attain the statewide average markup required by this section.  The total revenue resulting from the retail markup must represent a twenty-five percent average markup for malt beverages or wine.

    (3) When the board cannot identify a posted price for an identical wine or malt beverage, the board shall use a comparable product for the purpose of establishing the base wholesale price.

    (4) Nothing in this section affects the retail purchase discounts of licensees under RCW 66.24.440.

                            --- END ---