Background: A person seeking to sell liquor in Washington must obtain the appropriate retail license from the Washington State Liquor Control Board (LCB). One such retail license is the grocery store license, which allows the licensee to sell beer and wine for off-premise consumption. The annual fee for the grocery store license is $150. In 2008 the Legislature directed the LCB to establish a year-long pilot program to allow beer and wine tasting in grocery stores. Participating stores were limited to 12 tastings during the pilot program and were subject to size, service area, and advertising restrictions.

The pilot program ended September 30, 2009, and the LCB issued a report on the pilot program in December 2009.

Summary: A grocery store licensed to sell beer and/or wine may obtain an endorsement to offer beer and wine tasting. A store seeking to obtain the endorsement must meet the following criteria:

At least half of the gross sales of the store must be from retail sales of grocery products for off-premise consumption, or the store must be a membership organization.
The store must be at least 9,000 square feet.
The store cannot have more than one public safety violation within the past two years.

The LCB may issue endorsements to stores smaller than 9,000 square feet if the store meets operational requirements and the LCB finds there are no stores in the community that meet the minimum size requirements.

The licensee must be able to observe and control individuals in the tasting service area, make food available for participants, limit sample size to 2 ounces, and provide no more than 4 ounces per customer per visit. Store employees serving beer and/or wine at tasting events must hold an alcohol servers permit, and sampling costs must be borne by the store. Stores may advertise tasting events within the store, on a store website, in newsletters and flyers, and via regular mail and email to customers who have requested notice of events.

A tasting endorsement may be suspended and not reissued for up to two years if the store is found to have committed a public safety violation in conjunction with tasting activities. A monetary penalty may be assessed by the LCB in lieu of suspension. The LCB may revoke endorsements granted to licensees in alcohol impact areas if the tasting activities are having an adverse effect on chronic public inebriation.

The fee for the endorsement is $200 per year. The fee can be increased up to 10 percent annually by the board to defray the cost of administration and enforcement of the endorsement.

Votes on Final Passage:

Senate	29	17
House	77	21