BILL REQ. #: H-4291.2
| State of Washington | 61st Legislature | 2010 Regular Session |
Read first time 01/15/10. Referred to Committee on Commerce & Labor.
AN ACT Relating to contract liquor stores; amending RCW 66.08.026, 66.08.150, 66.08.220, 66.24.440, 66.20.160, and 66.08.030; adding new sections to chapter 66.08 RCW; adding a new chapter to Title 66 RCW; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that the state of
Washington currently contracts out part of its retail liquor sales by
allowing contract liquor stores to sell liquor. The legislature
further finds that state liquor stores and contract liquor stores sell
wine, in addition to spirits, and that private retailers must compete
with the state and contract liquor stores in the sale of wine. The
legislature intends that further contracting out of the state's retail
liquor sales will result in a system that is more efficient than public
sector retailing and that changing the distribution and sale of wine in
the state and contract liquor stores will result in a system that is
more equitable to private retailers. Therefore, the legislature
intends to close a portion of the state's retail liquor stores, to
contract out their operation to private individuals, and to monitor the
impact of the store closures. The legislature further intends to
require the state and contract liquor stores to focus on the sale of
spirits as their primary product and to follow the same rules as
private retailers for the distribution of wine.
NEW SECTION. Sec. 2 (1) "Contract liquor store" means a
privately owned business having an agreement with the board beginning
after July 1, 2010, to sell spirits and wine in original packaging for
off-premises consumption.
(2) "Contract liquor store manager" means an individual person
appointed by the board who enters into an agreement to sell spirits and
wine in original packaging for off-premises consumption on behalf of
the board in a contract liquor store.
(3) "Contract liquor store agreement" means a written contract
between the board and a contract liquor store manager that specifies
the terms, conditions, and obligations between both parties.
(4) "State retail liquor store" or "state liquor store" means a
state liquor store as used in chapter 66.16 RCW and does not include
contract liquor stores.
NEW SECTION. Sec. 3 (1) A task force on the contracting out of
liquor is created to advise the board as it implements further
contracting out of liquor stores. The task force membership shall
consist of:
(a) One member from each caucus of the senate, appointed by the
president of the senate;
(b) One member from each caucus of the house of representatives,
appointed by the speaker of the house of representatives;
(c) One representative of city governments, appointed jointly by
the president of the senate and the speaker of the house of
representatives;
(d) One representative of county governments, appointed jointly by
the president of the senate and the speaker of the house of
representatives;
(e) A representative of the liquor control board. The board shall
cooperate with the task force and provide technical expertise and
staffing as the task force may reasonably require;
(f) A representative of the governor's council on substance abuse.
(2) The task force shall choose its cochairs from among its
membership.
(3) Each nonlegislative member of the task force is eligible to be
reimbursed for travel expenses in accordance with RCW 43.03.050 and
43.03.060. All expenses of the task force, including travel, shall be
paid jointly by the senate and the house of representatives.
(4) The task force shall:
(a) Assist the board in determining which state liquor stores to
close;
(b) Assist the board in determining criteria for awarding contract
liquor store agreements.
(5) This section expires July 1, 2013.
NEW SECTION. Sec. 4 Notwithstanding any other provision of law,
the board is directed to implement the closure of twenty-five state
liquor stores between July 1, 2011, and December 1, 2011. When
determining which liquor stores to close, the board must give due
consideration to recommendations from the task force. A state liquor
store may not be closed unless one contract liquor store exists in the
area served by the liquor store, or unless the board determines that
reasonable alternative access is available to persons who previously
purchased products from the state liquor store that is closing.
NEW SECTION. Sec. 5 Nothing in this act shall be construed to
require the closing of any contract liquor stores having contracts with
the board before January 1, 2010, to sell liquor for off-premises
consumption, or to require these contract liquor store managers to pay
a fee to continue to operate their stores.
NEW SECTION. Sec. 6 (1) The board may locate one contract liquor
store within the area served by a closing state retail liquor store.
The total inventory granted to a contract liquor store when it opens
must not exceed the total volume that would have been granted to the
closing state liquor store if it was still in operation at that time.
The board may increase or decrease the amount of the combined inventory
at contract liquor stores if demand for products changes, provided that
the guidelines for the change of inventory are the same as those for
inventory changes at state retail liquor stores.
(2) The board shall determine the procedural guidelines of the
contract liquor stores including, but not limited to, guidelines
regarding inventory, performance standards, operations, and required
reporting to the board.
(3) The board reserves the right to add, relocate, or close
contract liquor stores. When adding, relocating, or closing contract
liquor stores, the board must use the same decision process and
criteria that it uses to add, close, or relocate state retail liquor
stores and contract liquor stores. Neither the state of Washington nor
the board is liable for any changes in the volume of alcohol sales that
may occur following the addition, relocation, or closure of contract
liquor stores.
NEW SECTION. Sec. 7 (1) The board must advertise the opportunity
for a contract liquor store agreement in the daily newspaper in the
county where the contract liquor store is to be located. The
advertisement must include:
(a) The starting date of a contract liquor store agreement.
(b) General selection criteria and procedures for selecting and
appointing a contract liquor store manager.
(c) Information on the costs involved in purchasing a contract
liquor store agreement.
(d) Deadline for receiving applications.
(e) Directions for obtaining additional information.
(2) After the application deadline, a screening committee of board
staff shall evaluate all applications according to the selection
criteria specified in section 8 of this act and recommend applicants
for an interview. A separate interview committee of board staff will
then conduct personal interviews with the remaining applicants. The
interview committee shall recommend finalists who are most qualified
based on the selection criteria specified in section 8 of this act to
the liquor control board members.
(3) If an appointed contract liquor store manager cannot begin
operation of the contract liquor store by the required date, the liquor
control board members may select another applicant from the list of
finalists recommended by the interview committee.
(4) The board must take into account input from local
jurisdictions, schools, and churches pursuant to RCW 66.24.010 when
determining locations for contract liquor stores.
(5) This section does not apply if a contract liquor store manager
dies or becomes indefinitely disabled and is succeeded by a family
member or assignee as provided in section 10 of this act.
NEW SECTION. Sec. 8 (1) The board may adopt rules regarding the
criteria for awarding contract liquor store agreements, and must give
due consideration to the recommendations of the task force regarding
these criteria.
(2) When the board selects a contract liquor store manager, the
board must evaluate the knowledge, skills, and abilities of all
applicants in the following areas:
(a) Specific experience selling liquor in state retail liquor
stores in Washington, and being familiar with Washington state's
inventory system, liquor control rules and laws, and state retail
liquor store procedures;
(b) Retail business experience including, but not limited to,
responsibility for inventory control, cash accountability, supervision
of personnel, and customer service;
(c) Knowledge of retail operations or business management,
including study or training in those or related fields;
(d) Customer service skills and ability to communicate and work
effectively with the public;
(e) Whether the applicant's health permits full-time supervision of
a contract liquor store;
(f) The applicant's record of felony conviction, conviction of a
crime relating to money management fraud, or a history of conviction of
crimes relating to the abuse of alcohol or controlled substances;
(g) The applicant's financial ability to purchase or lease and
equip the contract liquor store at the board-approved location, and to
pay the required contract liquor store agreement fee;
(h) Possession of a certificate of liability insurance from his or
her insurance carrier.
(3) A contract liquor store manager must be at least twenty-one
years old.
(4) A contract liquor store manager must not have any financial
interest in a business licensed as a distillery whose products are sold
in Washington. For the purposes of this section, "financial interest"
means knowingly having an ownership interest, as a sole proprietor,
partner, limited partner, or stockholder in any direct or indirect
interest through a device such as a holding company.
(5) A contract liquor store manager must not knowingly provide
anything of value in return for something of value to any distillery
whose products are sold in Washington, provided that this does not
prohibit persons from providing services and commodities to each other
that they routinely provide to the general public under the same terms.
(6) No contract liquor store manager or member of the manager's
household or immediate family may be employed by any distillery whose
products are sold in Washington.
NEW SECTION. Sec. 9 (1) The fee for purchasing a contract liquor
store agreement when, immediately prior to the agreement's execution
date, a state retail liquor store was in operation in the area served
by the contract liquor store, is two percent of the average gross
annual sales for the last five years at the state retail liquor store
serving that area. This fee is to be paid to the board upon the
execution of a contract liquor store agreement.
(2) The fee for purchasing a contract liquor store when,
immediately prior to the agreement's execution date, a contract liquor
store was in operation in the area to be served by the contract liquor
store, is two percent of the average gross annual sales for the last
five years at the contract liquor store serving that area. If the
prior contract liquor store has not been in operation for five years,
the board shall determine a reasonable gross sales period on which to
base the two percent fee.
(3) Family members of a deceased or indefinitely disabled contract
liquor store manager who replace that manager are not required to pay
the fee specified in this section.
NEW SECTION. Sec. 10 (1) The board may adopt rules regarding the
termination of contract liquor store agreements.
(2) A contract liquor store manager may terminate a contract liquor
store agreement with at least ninety days' written notice to the board.
The notice must specify the reason for the termination, as well as a
fair purchase price for fixtures and equipment used in the contract
liquor store that are required for its continued operation.
(3) The board may terminate a contract liquor store agreement for
good cause. For the purposes of this section, good cause includes, but
is not limited to:
(a) The contract liquor store manager becomes insolvent, unable or
unwilling to pay contract liquor store debts, applies for or consents
to the appointment of a receiver or trustee, or makes a general
assignment for the benefit of creditors;
(b) The contract liquor store manager violates any applicable
federal, state, or local statute or any rule adopted by the board
pursuant to this chapter;
(c) The contract liquor store manager has repeated excessive
shortages as verified by audit;
(d) The contract liquor store manager gives unsatisfactory service
to the community as reflected by a pattern of confirmed and verified
complaints from the public;
(e) The contract liquor store manager or an employee of the manager
misappropriates or participates in misappropriation of money or other
property of the board or intentionally or negligently violates any
policy or procedure which causes a financial loss to the board;
(f) The contract liquor store manager becomes physically or
mentally impaired, rendering him or her unable to properly perform or
fulfill the contract liquor store manager's duties either permanently
or for an indefinite period;
(g) The contract liquor store manager uses or allows the use of the
contract liquor store premises for any activity illegal under federal,
state, or local laws.
(4) Upon the death or incapacity of the contract liquor store
manager, the board may appoint a surviving family member or assignee
who has been actively involved in the business to manage the contract
liquor store, provided the board determines the family member or
assignee is qualified according to section 8 of this act.
NEW SECTION. Sec. 11 (1) The board may adopt rules regarding the
shipping and inventory of liquor to contract liquor stores.
(2) The board shall ship to the contract liquor store on a prepaid
freight basis, liquor that is to be kept for sale by the contract
liquor store manager. The board shall maintain ownership over all
liquor until the time it is properly sold.
(3) The board shall determine by rule the hours during which
contract liquor stores are allowed to sell liquor, and procedures for
displaying liquor when liquor sales are not allowed.
(4) Subject to section 24 of this act, the board shall determine
the amounts, classes, varieties, and brands of liquor listed for sale
statewide. The board shall work with the contract liquor store manager
to ensure a choice of products to the community being served. Where
items are in short supply, the contract liquor store manager shall have
an equal opportunity to order and receive these items.
(5) The board shall issue and distribute price lists showing the
price to be paid by purchasers for each item of liquor for sale at the
contract liquor store.
(6) The board shall assign licensees' accounts to a state retail
liquor store or contract liquor store. No solicitation of licensee
accounts is allowed. The board will normally assign restaurant
accounts to the nearest state retail liquor store or contract liquor
store. Any discounts currently received by licensees shall also be
honored at contract liquor stores.
(7) The board shall provide a bank account, in the local community
where possible, for daily deposit of funds derived from the sale of
liquor and banquet permits by the contract liquor store manager. Daily
deposit of funds by the contract liquor store manager is required
unless an exception has been agreed to in writing by the board and the
contract liquor store manager.
(8) The board shall pay the contract liquor store manager on or
about the tenth day of the month following the month of sale, after
receipt of sales reports and transaction summaries, an amount equal to
the compensation formula to be determined by the board by rule.
Compensation must include a base rate and a tiered commission based on
sales. The board may increase contract liquor store commissions to
attract or maintain contract liquor store managers. The compensation
formula must be reviewed before July 1 every two years, and the
compensation rates may be adjusted by the board. All proposed
compensation adjustments must be approved by the board and by the
director of the office of financial management, in accordance with RCW
66.08.026.
(9) Any operating shortages verified by formal audit shall be
deducted from any compensation due and owing to the contract liquor
store manager until the amount of the shortage is paid in full. The
board will allow shortages of one-half of one percent of the contract
liquor store manager's gross sales during the audit period to be paid
at cost. Shortages in excess of one-half of one percent shall be paid
at full retail price.
(10) The board is authorized to inspect the contract liquor store
and its books at any reasonable time for compliance with the
regulations of this chapter, and any rules adopted by the board
regarding this chapter.
NEW SECTION. Sec. 12 (1) Contract liquor store managers shall
sell the board's liquor to retail customers and all eligible liquor
licensees on the contract liquor store premises at prices set by the
board.
(2) Contract liquor store managers shall maintain the security of,
and prevent damage to, the liquor and any other property of the board.
(3) Contract liquor store managers shall account for all inventory,
sales, and receipts on forms or equipment and at time intervals as may
be required by the board.
(4) Contract liquor store managers shall display liquor
attractively and maintain the contract liquor store premises in a
manner that allows customers a clean, comfortable, and safe environment
to make purchases.
(5) Contract liquor store managers are responsible for receiving
freight shipments and maintaining an accurate count of merchandise
received.
(6) Contract liquor store managers shall maintain sufficient hours
of operation at convenient times to serve the public, as determined by
the board, and shall follow the board's guidelines for the display of
liquor when liquor is not allowed to be sold. The board shall
determine whether a contract liquor store is open on Sunday based on
the criteria in RCW 66.08.167. Contract liquor stores may open or
close on state holidays at the discretion of the contract liquor store
manager.
(7) Contract liquor store managers shall request the liquor items
offered by the contract liquor store for sale each week. The weekly
requisitions shall be based on what may be reasonably expected to meet
customer and licensee demand, subject to the restrictions on total
inventory specified in section 6 of this act.
(8) Contract liquor store managers shall adhere to the policy and
guidelines of the board concerning the operation of the contract liquor
store related to the control of the board's assets and comply with
legal requirements under local, state, and federal law.
(9) Contract liquor store managers shall comply with advertising
restrictions in accordance with RCW 66.08.060.
(10) Contract liquor store managers shall comply with the use of
the Washington state insignia or references to the board's restrictions
in accordance with rules adopted by the department.
(11) Contract liquor store managers may also hold or apply for a
license to sell beer under a beer and/or wine specialty shop license
under RCW 66.24.371. A contract liquor store manager may also hold or
apply for a grocery store license under RCW 66.24.360 if the grocery
store is headquartered in Washington.
(12) Contract liquor store managers shall not sell liquor other
than at the contract liquor store premises, unless licensed to do so.
(13) Contract liquor store managers shall not deliver any liquor to
a purchaser at a location other than the contract liquor store.
(14) Contract liquor store managers shall not withdraw or allow to
be withdrawn merchandise for any purpose other than sale at current
board prices. Damaged or defective merchandise may be destroyed in
accordance with procedures adopted by rule by the department.
(15) All expenses for employees hired by contract liquor store
managers are the responsibility of the contract liquor store manager.
Contract liquor store managers must provide training to employees
regarding the rules and regulations that apply to contract liquor
stores.
(16) Contract liquor store managers must secure board approval
prior to moving a store to a new location. The board must follow all
public notice requirements specified in RCW 66.24.010.
(17) Contract liquor store managers shall not sell or allow to be
sold, any liquor, owned by the board, except for cash or credit or
debit cards presented at the time of sale.
Personal or business checks may be accepted as cash, but the
contract liquor store manager is responsible for their value. The
board will accept responsibility for check value, when the board has
authorized acceptance of the check from a licensee account, as a result
of a letter of credit from the licensee's bank, or an agreement which
has been properly completed and is on file with the board.
(18) Contract liquor store managers must open the contract liquor
store and its books and records at any reasonable time to inspection
and audit by the board, the state auditor, the legislative evaluation
and accountability program, and the joint legislative audit and review
committee.
NEW SECTION. Sec. 13 (1) In addition to other provisions of law,
it is unlawful for any contract liquor store manager or employee to:
(a) Sell or offer for sale any liquor other than from the original
package or container;
(b) Sell, give away, or permit the sale, gift, or procurement of
any liquor for or to any person under twenty-one years of age;
(c) Sell, give away, or permit the sale, gift, or procurement of
any liquor for or to any person apparently intoxicated;
(d) Permit the consumption of any liquor on the premises by any
person;
(e) Alter, change, or misrepresent the quality, quantity, or brand
name of any liquor with the intent to defraud;
(f) Permit any person under twenty-one years of age to sell or give
liquor to any other person, except to assist a cashier who is twenty-one years of age or older; or
(g) Purchase or otherwise obtain liquor in any manner or from any
source other than that specifically authorized in this title.
(2) Violations of any provision of this chapter or any rule adopted
by the board, or any false statement concerning any material fact, or
omission of any material fact in submitting an application for a
contract liquor store agreement or in any hearing concerning the
suspension or revocation of a contract liquor store agreement, or the
commission of any of the acts declared in this chapter to be unlawful,
is subject to disciplinary action by the board, including suspension or
revocation of the contract liquor store agreement. No fees paid for
the contract liquor store agreement will be refunded. The board shall
develop rules to implement and enforce this subsection and may assess
an administrative penalty for violations.
(3) Nothing in this chapter or any rule of the board prevents or
prohibits any contract liquor store manager from employing any person
who is at least eighteen years of age to serve in any contract liquor
store, or from having a person assist a person twenty-one years of age
or older who handles, sells, or delivers liquor under this chapter.
NEW SECTION. Sec. 14 (1) The board shall assume liability for
loss of board-owned property when a burglary, robbery, fire, or loss
due to an act of nature occurs, as long as the contract liquor store
manager has implemented reasonable precautions as determined by rule by
the department. Loss prevention measures and precautions will be
reviewed, and revised annually if necessary, by agreement of the board
and the contract liquor store manager.
(2) The contract liquor store manager is responsible for providing
adequate insurance coverage at his or her own expense to protect
against his or her portion of the legal liability arising out of
activities as a contract liquor store manager.
(3) The contract liquor store manager shall provide a certificate
of liability insurance from the insurance carrier to the board.
(4) The contract liquor store manager is an independent contractor.
Neither the contract liquor store manager nor the contract liquor store
manager's employees are employees of the board, and are not entitled to
any of the rights, benefits, or privileges accorded to employees of the
state of Washington.
(5) Any claims or damages arising out of the contract liquor store
manager's operation of a nonliquor sales business or sales of goods
other than liquor are the contract liquor store manager's sole
responsibility. The contract liquor store manager indemnifies the
board for any damages and costs of suit, however denominated, arising
from those activities.
(6) The board assumes no liability with respect to any bodily
injury, the contract liquor store manager's portion of liquor
liability, illness, accident, theft, or any other damages or losses
concerning persons or property, except as provided in subsection (1) of
this section.
NEW SECTION. Sec. 15 The joint legislative audit and review
committee is directed to study the impacts of further contracting out
the state's retail sale of liquor, and to deliver a report on their
findings to the legislature by December 31, 2012. The study must
include an analysis of allowing all qualified Washington-based grocery
store licensees under RCW 66.24.360 to become contract liquor stores.
The legislature directs that the impacts to be studied shall include,
but shall not be limited to: Underage access to alcohol in state
retail liquor stores and contract liquor stores; alcohol consumption
rates; state revenue; traffic accidents and fatalities related to
alcohol use; and crimes directly related to alcohol use.
NEW SECTION. Sec. 16 (1) For the purpose of carrying into effect
the provisions of this chapter according to their true intent or of
supplying any deficiency therein, the board may make regulations not
inconsistent with the spirit of this chapter as deemed necessary or
advisable. All regulations shall be a public record, filed in the
office of the code reviser, and have the same force and effect as if
incorporated in this chapter.
(2) Without limiting the generality of the provisions contained in
subsection (1) of this section, it is declared that the power of the
board to make regulations in the manner set out in subsection (1) of
this section shall extend to:
(a) Regulating the equipment and management of contract liquor
stores in which state liquor is sold or kept, prescribing the books and
records to be kept, and the reports to be made to the board;
(b) Prescribing the duties of contract liquor store managers and
their employees, and regulating their conduct in the discharge of their
duties;
(c) Governing the purchase of liquor by the state and the
furnishing of liquor to contract liquor stores established under this
chapter, subject to section 23 of this act;
(d) Subject to section 24 of this act, determining the classes,
varieties, and brands of liquor to be kept for sale at any contract
liquor store;
(e) Prescribing the hours during which the contract liquor stores
shall be kept open for the sale of liquor, and procedures for the
display of liquor when the stores are open, but not allowed to sell
liquor;
(f) Providing for the issuing and distributing of price lists
showing the price to be paid by purchasers for each variety of liquor
kept for sale under this chapter;
(g) Prescribing an official seal and official labels and stamps and
determining the manner in which they shall be attached to every package
of liquor sold or sealed under this title, including the prescribing of
different official seals or different official labels for different
classes of liquor;
(h) Providing for the payment by the board in whole or in part of
the carrying charges on liquor shipped by freight or express;
(i) Prescribing forms to be used for purposes of this chapter or
the regulations, and the terms and conditions to be contained in
contract liquor store agreements issued under this title, and the
qualifications for receiving a contract liquor store agreement issued
under this chapter, including a criminal history record information
check. The board may submit the criminal history record information
check to the Washington state patrol and to the identification division
of the federal bureau of investigation in order that these agencies may
search their records for prior arrests and convictions of the
individual or individuals who filled out the forms. The board shall
require fingerprinting of any applicant whose criminal history record
information check is submitted to the federal bureau of investigation;
(j) Prescribing the fees payable in respect of contract liquor
store agreements issued under this chapter for which no fees are
prescribed in this chapter, and prescribing the fees for anything done
or permitted to be done under the regulations.
Sec. 17 RCW 66.08.026 and 2008 c 67 s 1 are each amended to read
as follows:
Administrative expenses of the board shall be appropriated and paid
from the liquor revolving fund. These administrative expenses shall
include, but not be limited to: The salaries and expenses of the board
and its employees, the cost of opening additional state liquor stores
and warehouses, legal services, pilot projects, annual or other audits,
and other general costs of conducting the business of the board. The
administrative expenses shall not include costs of liquor and lottery
tickets purchased, the cost of transportation and delivery to the point
of distribution, the cost of operating, maintaining, relocating, and
leasing state liquor stores and warehouses, other costs pertaining to
the acquisition and receipt of liquor and lottery tickets, ((agency))
commissions for contract liquor stores, transaction fees associated
with credit or debit card purchases for liquor in state liquor stores
and in contract liquor stores pursuant to RCW 66.16.040 and 66.16.041,
sales tax, and those amounts distributed pursuant to RCW 66.08.180,
66.08.190, 66.08.200, 66.08.210 and 66.08.220. ((Agency)) Commissions
for contract liquor stores shall be established by the liquor control
board after consultation with and approval by the director of the
office of financial management. All expenditures and payment of
obligations authorized by this section are subject to the allotment
requirements of chapter 43.88 RCW.
Sec. 18 RCW 66.08.150 and 2007 c 370 s 3 are each amended to read
as follows:
(1) The action, order, or decision of the board as to any denial of
an application for the reissuance of a permit or license or as to any
revocation, suspension, or modification of any permit ((or)), license,
or contract liquor store agreement shall be an adjudicative proceeding
and subject to the applicable provisions of chapter 34.05 RCW.
(((1))) (2) An opportunity for a hearing may be provided an
applicant for the reissuance of a permit or license prior to the
disposition of the application, and if no such opportunity for a prior
hearing is provided then an opportunity for a hearing to reconsider the
application must be provided the applicant.
(((2))) (3) An opportunity for a hearing must be provided a
permittee ((or)), licensee, or contract liquor store manager prior to
a revocation or modification of any permit ((or)), license, or contract
liquor store agreement and, except as provided in subsection (((4)))
(5) of this section, prior to the suspension of any permit ((or)),
license, or contract liquor store agreement.
(((3))) (4) No hearing shall be required until demanded by the
applicant, permittee, ((or)) licensee, or contract liquor store
manager.
(((4))) (5) The board may summarily suspend a license ((or)),
permit, or contract liquor store agreement for a period of up to one
hundred eighty days without a prior hearing if it finds that public
health, safety, or welfare imperatively require emergency action, and
it incorporates a finding to that effect in its order. Proceedings for
revocation or other action must be promptly instituted and determined.
An administrative law judge may extend the summary suspension period
for up to one calendar year in the event the proceedings for revocation
or other action cannot be completed during the initial one hundred
eighty day period due to actions by the licensee or permittee. The
board's enforcement division shall complete a preliminary staff
investigation of the violation before requesting an emergency
suspension by the board.
Sec. 19 RCW 66.08.220 and 2009 c 271 s 4 are each amended to read
as follows:
The board shall set aside in a separate account in the liquor
revolving fund an amount equal to ten percent of its gross sales of
liquor, including sales by contract liquor stores, to spirits, beer,
and wine restaurant; spirits, beer, and wine private club; spirits,
beer, and wine nightclub; hotel; and sports entertainment facility
licensees collected from these licensees pursuant to the provisions of
RCW 82.08.150, less the fifteen percent discount provided for in RCW
66.24.440; and the moneys in said separate account shall be distributed
in accordance with the provisions of RCW 66.08.190, 66.08.200 and
66.08.210. No election unit in which the sale of liquor under spirits,
beer, and wine restaurant; spirits, beer, and wine private club;
spirits, beer, and wine nightclub; and sports entertainment facility
licenses is unlawful shall be entitled to share in the distribution of
moneys from such separate account.
Sec. 20 RCW 66.24.440 and 2009 c 271 s 8 are each amended to read
as follows:
Each spirits, beer, and wine restaurant, spirits, beer, and wine
private club, hotel, spirits, beer, and wine nightclub, and sports
entertainment facility licensee shall be entitled to purchase any
spirituous liquor items salable under such license from the board,
including sales by contract liquor stores, at a discount of not less
than fifteen percent from the retail price fixed by the board, together
with all taxes.
Sec. 21 RCW 66.20.160 and 2005 c 151 s 8 are each amended to read
as follows:
Words and phrases as used in RCW 66.20.160 to 66.20.210, inclusive,
shall have the following meaning:
"Card of identification" means any one of those cards described in
RCW 66.16.040.
"Contract liquor store employee" means a contract liquor store
manager or a person employed in a contract liquor store to sell liquor.
"Licensee" means the holder of a retail liquor license issued by
the board, and includes any employee or agent of the licensee.
"Store employee" means a person employed in a state liquor store to
sell liquor.
Sec. 22 RCW 66.08.030 and 2002 c 119 s 2 are each amended to read
as follows:
(1) For the purpose of carrying into effect the provisions of this
title according to their true intent or of supplying any deficiency
therein, the board may make such regulations not inconsistent with the
spirit of this title as are deemed necessary or advisable. All
regulations so made shall be a public record and shall be filed in the
office of the code reviser, and thereupon shall have the same force and
effect as if incorporated in this title. Such regulations, together
with a copy of this title, shall be published in pamphlets and shall be
distributed as directed by the board.
(2) Without thereby limiting the generality of the provisions
contained in subsection (1), it is declared that the power of the board
to make regulations in the manner set out in that subsection shall
extend to
(a) regulating the equipment and management of stores and
warehouses in which state liquor is sold or kept, and prescribing the
books and records to be kept therein and the reports to be made thereon
to the board;
(b) prescribing the duties of the employees of the board, and
regulating their conduct in the discharge of their duties;
(c) governing the purchase of liquor by the state and the
furnishing of liquor to stores established under this title, subject to
section 23 of this act;
(d) determining the classes, varieties, and brands of liquor to be
kept for sale at any store, subject to section 24 of this act;
(e) prescribing((, subject to RCW 66.16.080,)) the hours during
which the state liquor stores shall be kept open for the sale of
liquor;
(f) providing for the issuing and distributing of price lists
showing the price to be paid by purchasers for each variety of liquor
kept for sale under this title;
(g) prescribing an official seal and official labels and stamps and
determining the manner in which they shall be attached to every package
of liquor sold or sealed under this title, including the prescribing of
different official seals or different official labels for different
classes of liquor;
(h) providing for the payment by the board in whole or in part of
the carrying charges on liquor shipped by freight or express;
(i) prescribing forms to be used for purposes of this title or the
regulations, and the terms and conditions to be contained in permits
and licenses issued under this title, and the qualifications for
receiving a permit or license issued under this title, including a
criminal history record information check. The board may submit the
criminal history record information check to the Washington state
patrol and to the identification division of the federal bureau of
investigation in order that these agencies may search their records for
prior arrests and convictions of the individual or individuals who
filled out the forms. The board shall require fingerprinting of any
applicant whose criminal history record information check is submitted
to the federal bureau of investigation;
(j) prescribing the fees payable in respect of permits and licenses
issued under this title for which no fees are prescribed in this title,
and prescribing the fees for anything done or permitted to be done
under the regulations;
(k) prescribing the kinds and quantities of liquor which may be
kept on hand by the holder of a special permit for the purposes named
in the permit, regulating the manner in which the same shall be kept
and disposed of, and providing for the inspection of the same at any
time at the instance of the board;
(l) regulating the sale of liquor kept by the holders of licenses
which entitle the holder to purchase and keep liquor for sale;
(m) prescribing the records of purchases or sales of liquor kept by
the holders of licenses, and the reports to be made thereon to the
board, and providing for inspection of the records so kept;
(n) prescribing the kinds and quantities of liquor for which a
prescription may be given, and the number of prescriptions which may be
given to the same patient within a stated period;
(o) prescribing the manner of giving and serving notices required
by this title or the regulations, where not otherwise provided for in
this title;
(p) regulating premises in which liquor is kept for export from the
state, or from which liquor is exported, prescribing the books and
records to be kept therein and the reports to be made thereon to the
board, and providing for the inspection of the premises and the books,
records and the liquor so kept;
(q) prescribing the conditions and qualifications requisite for the
obtaining of club licenses and the books and records to be kept and the
returns to be made by clubs, prescribing the manner of licensing clubs
in any municipality or other locality, and providing for the inspection
of clubs;
(r) prescribing the conditions, accommodations and qualifications
requisite for the obtaining of licenses to sell beer and wines, and
regulating the sale of beer and wines thereunder;
(s) specifying and regulating the time and periods when, and the
manner, methods and means by which manufacturers shall deliver liquor
within the state; and the time and periods when, and the manner,
methods and means by which liquor may lawfully be conveyed or carried
within the state;
(t) providing for the making of returns by brewers of their sales
of beer shipped within the state, or from the state, showing the gross
amount of such sales and providing for the inspection of brewers' books
and records, and for the checking of the accuracy of any such returns;
(u) providing for the making of returns by the wholesalers of beer
whose breweries are located beyond the boundaries of the state;
(v) providing for the making of returns by any other liquor
manufacturers, showing the gross amount of liquor produced or
purchased, the amount sold within and exported from the state, and to
whom so sold or exported, and providing for the inspection of the
premises of any such liquor manufacturers, their books and records, and
for the checking of any such return;
(w) providing for the giving of fidelity bonds by any or all of the
employees of the board: PROVIDED, That the premiums therefor shall be
paid by the board;
(x) providing for the shipment by mail or common carrier of liquor
to any person holding a permit and residing in any unit which has, by
election pursuant to this title, prohibited the sale of liquor therein;
(y) prescribing methods of manufacture, conditions of sanitation,
standards of ingredients, quality and identity of alcoholic beverages
manufactured, sold, bottled, or handled by licensees and the board; and
conducting from time to time, in the interest of the public health and
general welfare, scientific studies and research relating to alcoholic
beverages and the use and effect thereof;
(z) seizing, confiscating and destroying all alcoholic beverages
manufactured, sold or offered for sale within this state which do not
conform in all respects to the standards prescribed by this title or
the regulations of the board: PROVIDED, Nothing herein contained shall
be construed as authorizing the liquor board to prescribe, alter, limit
or in any way change the present law as to the quantity or percentage
of alcohol used in the manufacturing of wine or other alcoholic
beverages.
NEW SECTION. Sec. 23 Wine purchased by the board must be
delivered by a wine distributor licensed under RCW 66.24.200 to a state
liquor store or contract liquor store.
NEW SECTION. Sec. 24 At least ninety percent of the shelf space
in a state liquor store and at least ninety percent of the shelf space
dedicated to the sale of liquor in a contract liquor store other than
a grocery store licensed under RCW 66.24.360 or a specialty shop
licensed under RCW 66.24.371 must be devoted to the sale of spirits.
NEW SECTION. Sec. 25 Sections 1 through 16 of this act
constitute a new chapter in Title
NEW SECTION. Sec. 26 Sections 23 and 24 of this act are each
added to chapter