SENATE BILL REPORT

SB 5709

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 17, 2011

Title: An act relating to allowing a microbrewery and domestic brewery to sell beer of another domestic brewery for on and off-premises consumption from its premises.

Brief Description: Allowing a microbrewery and domestic brewery to sell beer of another domestic brewery for on and off-premises consumption from its premises.

Sponsors: Senators Kline, King, Hobbs, Fain, Honeyford and Kohl-Welles.

Brief History:

Committee Activity: Labor, Commerce & Consumer Protection: 2/17/11 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & CONSUMER PROTECTION

Majority Report: Do pass.

Signed by Senators Kohl-Welles, Chair; Conway, Vice Chair; Holmquist Newbry, Ranking Minority Member; King, Assistant Ranking Minority Member; Hewitt, Keiser and Kline.

Staff: Edith Rice (786-7444)

Background: A Washington State licensed microbrewery produces less than 60,000 barrels of malt liquor including strong beer per year and pays a licensing fee of $100. A domestic brewery produces 60,000 barrels or more of malt liquor per year and pays a fee of $2,000.

Summary of Bill: A licensed microbrewery can sell another domestic brewery's product as long as the other brewery's brands are not more than 25 percent of the microbrewery's on-tap offering of their own product. A licensed domestic brewery can sell another domestic brewery's product as long as the other brewery's brands are not more than 25 percent of the brewery's on-tap offering of their own product.

Appropriation: None.

Fiscal Note: Available.

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 want to be able to pour our competitor's beer. We are a collaborative industry. Especially if we run out of our own product it would be nice to serve another product.

OTHER: We're OK with this bill.

Persons Testifying: PRO: Alejandro Brow, Big Al Brewing, Heather McClung, Washington Brewers Guild.

OTHER: Rick Garza, Liquor Control Board.