ESSB 6477 -
By Representative Hunt
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 66.28.310 and 2011 c 119 s 101 and 2011 c 66 s 3 are
each reenacted and amended to read as follows:
(1)(a) Nothing in RCW 66.28.305 prohibits an industry member from
providing retailers branded promotional items which are of nominal
value, singly or in the aggregate. Such items include but are not
limited to: Trays, lighters, blotters, postcards, pencils, coasters,
menu cards, meal checks, napkins, clocks, mugs, glasses, bottles or can
openers, corkscrews, matches, printed recipes, shirts, hats, visors,
and other similar items. Branded promotional items:
(i) Must be used exclusively by the retailer or its employees in a
manner consistent with its license;
(ii) Must bear imprinted advertising matter of the industry member
only, except imprinted advertising matter of the industry member can
include the logo of a professional sports team which the industry
member is licensed to use;
(iii) May be provided by industry members only to retailers and
their employees and may not be provided by or through retailers or
their employees to retail customers; and
(iv) May not be targeted to or appeal principally to youth.
(b) An industry member is not obligated to provide any such branded
promotional items, and a retailer may not require an industry member to
provide such branded promotional items as a condition for selling any
alcohol to the retailer.
(c) Any industry member or retailer or any other person asserting
that the provision of branded promotional items as allowed in (a) of
this subsection has resulted or is more likely than not to result in
undue influence or an adverse impact on public health and safety, or is
otherwise inconsistent with the criteria in (a) of this subsection may
file a complaint with the board. Upon receipt of a complaint the board
may conduct such investigation as it deems appropriate in the
circumstances. If the investigation reveals the provision of branded
promotional items has resulted in or is more likely than not to result
in undue influence or has resulted or is more likely than not to result
in an adverse impact on public health and safety or is otherwise
inconsistent with (a) of this subsection the board may issue an
administrative violation notice to the industry member, to the
retailer, or both. The recipient of the administrative violation
notice may request a hearing under chapter 34.05 RCW.
(2) Nothing in RCW 66.28.305 prohibits:
(a) An industry member from providing to a special occasion
licensee and a special occasion licensee from receiving services for:
(i) Installation of draft beer dispensing equipment or advertising;
(ii) Advertising, pouring, or dispensing of beer or wine at a beer
or wine tasting exhibition or judging event; or
(iii) Pouring or dispensing of spirits by a licensed domestic
distiller or the accredited representative of a distiller,
manufacturer, importer, or distributor of spirituous liquor licensed
under RCW 66.24.310; or
(b) Special occasion licensees from paying for beer or wine
immediately following the end of the special occasion event; or
(c) Wineries or breweries that are participating in a special
occasion event from paying reasonable booth fees to the special
occasion licensee.
(3) Nothing in RCW 66.28.305 prohibits industry members from
performing, and retailers from accepting the service of building,
rotating, and restocking displays and stockroom inventories; rotating
and rearranging can and bottle displays of their own products;
providing point of sale material and brand signs; pricing case goods of
their own brands; and performing such similar business services
consistent with board rules, or personal services as described in
subsection (5) of this section.
(4) Nothing in RCW 66.28.305 prohibits:
(a) Industry members from listing on their internet web sites
information related to retailers who sell or promote their products,
including direct links to the retailers' internet web sites; and
(b) Retailers from listing on their internet web sites information
related to industry members whose products those retailers sell or
promote, including direct links to the industry members' web sites; or
(c) Industry members and retailers from producing, jointly or
together with regional, state, or local industry associations,
brochures and materials promoting tourism in Washington state which
contain information regarding retail licensees, industry members, and
their products.
(5) Nothing in RCW 66.28.305 prohibits the performance of personal
services offered from time to time by a domestic winery or certificate
of approval holder to retailers when the personal services are (a)
conducted at a licensed premises, and (b) intended to inform, educate,
or enhance customers' knowledge or experience of the manufacturer's
products. The performance of personal services may include
participation and pouring, bottle signing events, and other similar
informational or educational activities at the premises of a retailer
holding a spirits, beer, and wine restaurant license, a wine and/or
beer restaurant license, a specialty wine shop license, a special
occasion license, a grocery store license with a tasting endorsement,
or a private club license. A domestic winery or certificate of
approval holder is not obligated to perform any such personal services,
and a retail licensee may not require a domestic winery or certificate
of approval holder to conduct any personal service as a condition for
selling any alcohol to the retail licensee, or as a condition for
including any product of the domestic winery or certificate of approval
holder in any tasting conducted by the licensee. Except as provided in
RCW 66.28.150, the cost of sampling may not be borne, directly or
indirectly, by any domestic winery or certificate of approval holder or
any distributor. Nothing in this section prohibits wineries,
breweries, microbreweries, certificate of approval holders, and retail
licensees from identifying the producers on private labels authorized
under RCW 66.24.400, 66.24.425, ((and)) 66.24.450, 66.24.360, and
66.24.371.
(6) Nothing in RCW 66.28.305 prohibits an industry member from
entering into an arrangement with any holder of a sports entertainment
facility license or an affiliated business for brand advertising at the
licensed facility or promoting events held at the sports entertainment
facility as authorized under RCW 66.24.570.
(7) Nothing in RCW 66.28.305 prohibits the performance of personal
services offered from time to time by a domestic brewery, microbrewery,
or beer certificate of approval holder to grocery store licensees with
a tasting endorsement when the personal services are (a) conducted at
a licensed premises in conjunction with a tasting event, and (b)
intended to inform, educate, or enhance customers' knowledge or
experience of the manufacturer's products. The performance of personal
services may include participation and pouring, bottle signing events,
and other similar informational or educational activities. A domestic
brewery, microbrewery, or beer certificate of approval holder is not
obligated to perform any such personal services, and a grocery store
licensee may not require the performance of any personal service as a
condition for including any product in any tasting conducted by the
licensee.
(8) Nothing in RCW 66.28.305 prohibits an arrangement between a
domestic winery and a restaurant licensed under RCW 66.24.320 or
66.24.400 to waive a corkage fee.
(9) Nothing in this section prohibits professional sports teams who
hold a retail liquor license or their agents from accepting bona fide
liquor advertising from manufacturers, importers, distributors, or
their agents for use in the sporting arena. Professional sports teams
who hold a retail liquor license or their agents may license the
manufacturer, importer, distributor, or their agents to use the name
and trademarks of the professional sports team in their advertising and
promotions, under the following conditions:
(a) Such advertising must be paid for by said manufacturer,
importer, distributor, or their agent at the published advertising rate
or at a reasonable fair market value.
(b) Such advertising may carry with it no express or implied offer
on the part of the manufacturer, importer, distributor, or their agent,
or promise on the part of the retail licensee whose operation is
directly or indirectly part of the sporting arena, to stock or list any
particular brand of liquor to the total or partial exclusion of any
other brand.
NEW SECTION. Sec. 2 A new section is added to chapter 66.16 RCW
to read as follows:
(1) The liquor control board must allow spirits sampling in former
contract liquor stores for the purpose of promoting spirits products.
Stores may apply for an endorsement to offer spirits tastings under
this section.
(a) No store may hold more than two spirits samplings per month.
(b) The locations shall be approved by the board. Before the board
determines which stores will be eligible to participate, it shall give:
(i) Due consideration to the location of the store with respect to
the proximity of places of worship, schools, and public institutions;
(ii) Due consideration to motor vehicle accident data in the
proximity of the store; and
(iii) Written notice by certified mail of the proposed spirits
sampling to places of worship, schools, and public institutions within
five hundred feet of the store proposed to offer spirits sampling.
(c) Sampling must be conducted under the following conditions:
(i) Sampling may take place only in an area of a store in which
access to persons under twenty-one years of age is prohibited;
(ii) Samples may be provided free of charge;
(iii) Only persons twenty-one years of age or over may sample
spirits;
(iv) Each sample must be one-quarter ounce or less, with no more
than one ounce of samples provided per person per day;
(v) Tasting activities are subject to RCW 66.28.305 and 66.28.040
and the cost of sampling may not be borne, directly or indirectly, by
any liquor manufacturer, importer, or distributor;
(vi) Any person involved in the serving of such samples must have
completed a mandatory alcohol server training program;
(vii) No person who is apparently intoxicated may sample spirits;
(viii) The product provided for sampling must be available for sale
at the store where the sampling occurs at the time of the sampling; and
(ix) Customers must remain on the store premise while consuming
samples.
(d) The liquor control board may prohibit sampling at a location
that is within the boundaries of an alcohol impact area recognized by
resolution of the board if the board finds that the sampling activities
at the location are having an adverse effect on the reduction of
chronic public inebriation in the area.
(e) A store may advertise a tasting event only within the store, on
a store web site, in-store newsletters and flyers, and via e-mail and
mail to customers who have requested notice of events. Advertising
under this subsection may not be targeted to or appeal principally to
youth.
(f) All other criteria must be determined by the board.
(2) The liquor control board may adopt rules to implement this
section.
(3) For the purposes of this section, "store" means a former
contract liquor store premises as of May 31, 2012.
(4)(a) If a store is found to have committed a public safety
violation in conjunction with tasting activities, the board may suspend
the licensee's tasting endorsement and not reissue the endorsement for
up to two years from the date of the violation. If mitigating
circumstances exist, the board may offer a monetary penalty in lieu of
suspension during a settlement conference.
(b) RCW 66.08.150 applies to the suspension or revocation of an
endorsement."
Correct the title.
EFFECT: (1) Strikes provisions that:
(a) Created a day spa permit allowing the holder to offer or
supply, without charge, a single glass of wine or beer to a customer
for consumption on the premises.
(b) Created a senior center license allowing the retail sale of
spirits, beer, and wine for consumption on the premises.
(c) Authorized the Liquor Control Board to adjust the gross sales
percentage of grocery products required in order for a grocery store
licensee to obtain an endorsement to offer beer and wine tastings.
(2) Retains provisions that:
(a) Allow spirits sampling in former contract liquor stores, but
changes the number of samplings allowed from no more than one per week
to no more than two per month.
(b) Permit breweries and microbreweries to identify the producer of
the beer on private labels without running afoul of prohibitions on
advancing or receiving moneys or moneys' worth.