Brief Description: Regulating authorized representatives of beer and wine manufacturers and distributors.

Sponsors: Senate Committee on Commerce & Trade (originally sponsored by Senators Hewitt, Keiser and Rasmussen).

Hearing Date: 2/18/04

Staff: Susan Kavanaugh (786-7106).

Background:

Breweries and wineries outside Washington but within the United States must have a certificate of approval from the Liquor Control Board (Board) to sell in Washington. The fee for this certificate is $100 per year. In order to obtain a certificate, breweries and wineries agree to abide by all liquor control laws and rules, and, in addition, to submit a monthly report of sales. Certificate of approval holders, among others, must file their prices with the Board.

Breweries and wineries outside Washington often sell through authorized representatives, or marketing agents, who purchase the beer and wine and re-sell it to wholesalers or distributors in Washington. There is no provision in statute for marketing agents to obtain a certificate of approval. Thus, beer and wine produced in the United States, but outside Washington, can be sold in Washington only directly by the brewery or winery.

Marketing agents may sell wine and beer produced outside the United States to an importer or distributor in Washington without a certificate of approval.

Summary of Bill:

Authorized representatives for breweries and wineries outside of Washington, both within and outside of the United States, are required to obtain a certificate of approval from the Liquor Control Board to sell beer or wine in Washington.

The fee for a certificate of approval is increased from $100 to $200 per year.

Various prohibitions on and requirements for manufacturers (wineries and breweries), distributors, and importers are also applied to certificate of approval holders.

Appropriation: None.

Fiscal Note: Requested on substitute bill on February 16, 2004.

Effective Date: The bill takes effect January 1, 2005.