SENATE BILL REPORT

HB 2947

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Labor, Commerce & Consumer Protection, February 25, 2010

Title: An act relating to special occasion licenses.

Brief Description: Concerning special occasion licenses.

Sponsors: Representatives Wood, Conway, Condotta and Ormsby.

Brief History: Passed House: 2/10/10, 96-0.

Committee Activity: Labor, Commerce & Consumer Protection: 2/22/10, 2/25/10 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & CONSUMER PROTECTION

Majority Report: Do pass.

Signed by Senators Kohl-Welles, Chair; Keiser, Vice Chair; Franklin, Honeyford, King and Kline.

Staff: Ingrid Mungia (786-7423)

Background: A not-for-profit society or organization may obtain a special occasion retail liquor license to sell spirits, beer, and wine by the individual serving for on-premises consumption at a specified date and time. With prior permission from the Liquor Control Board, a special occasion licensee may also sell beer and wine in original unopened containers for off-premises consumption. The fee for a special occasion license is $60 per day. Sales under this license are limited to 12 calendar days per year.

The liquor tied house law prohibits a liquor manufacturer or distributor (industry member) from providing moneys' worth to a retailer. This law has been interpreted to prohibit the extension of credit to retailers. A number of exceptions have been enacted. One exception allows an industry member to provide services to a special occasion licensee for the installation of draft beer dispensing equipment or advertising; or the advertising, pouring, or dispensing of beer or wine at a beer or wine tasting exhibition or judging event.

Summary of Bill: Two additional exceptions are added to the tied house law regarding special occasion licenses. Special occasion licensees may pay for beer or wine immediately following the end of a special occasion event. In addition, wineries or brewers that are participating in a special occasion event may pay reasonable table fees to the special occasion licensee.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: We agree with the use of the term reasonable for describing table fees. It just puts some parameters around table fees that can be charged for these events.

Persons Testifying: PRO: Jean Leonard, Washington Wine Institute.