BILL REQ. #:  S-0690.3 

Read first time 02/03/11.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to allowing craft distilleries to sell their own spirits at qualifying farmers markets; and amending RCW 66.24.145.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 66.24.145 and 2010 c 290 s 2 are each amended to read as follows:
     (1) Any craft distillery may sell spirits of its own production for consumption off the premises, up to two liters per person per day. Spirits sold under this subsection must be purchased from the board and sold at the retail price established by the board. A craft distillery selling spirits under this subsection must comply with the applicable laws and rules relating to retailers.
     (2) Any craft distillery may contract distill spirits for, and sell contract distilled spirits to, holders of distillers' or manufacturers' licenses, including licenses issued under RCW 66.24.520, or for export.
     (3) Any craft distillery licensed under this section may provide, free of charge, one-half ounce or less samples of spirits of its own production to persons on the premises of the distillery. The maximum total per person per day is two ounces. Every person who participates in any manner in the service of samples must obtain a class 12 alcohol server permit. Spirits used for samples must be purchased from the board.
     (4) The board shall adopt rules to implement the alcohol server permit requirement and may adopt additional rules to implement this section.
     (5) Distilling is an agricultural practice.
     (6)(a) A craft distillery licensed under RCW 66.24.140(1) may apply to the board for an endorsement to sell bottled spirits of its own production at retail for off-premises consumption at a qualifying farmers market. The annual fee for this endorsement is seventy-five dollars.
     (b) For each month during which a craft distillery will sell spirits at a qualifying farmers market, the craft distillery must provide the board or its designee a list of the dates, times, and locations at which bottled spirits may be offered for sale. This list must be received by the board before the craft distillery may offer spirits for sale at a qualifying farmers market.
     (c) The spirits sold at qualifying farmers markets must be produced in Washington.
     (d) Each approved location in a qualifying farmers market is deemed to be part of the craft distillery license for the purpose of this title. The approved locations under an endorsement granted under this subsection (6) do not constitute the tasting or sampling privilege of a craft distillery. The craft distillery may not store spirits at a farmers market beyond the hours that the craft distillery offers bottled spirits for sale. The craft distillery may not act as a distributor from a farmers market location.
     (e) Before a craft distillery may sell bottled spirits at a qualifying farmers market, the farmers market must apply to the board for authorization for any craft distillery with an endorsement approved under this subsection (6) to sell bottled spirits at retail at the farmers market. This application shall include, at a minimum: (i) A map of the farmers market showing all booths, stalls, or other designated locations at which an approved craft distillery may sell bottled spirits; and (ii) the name and contact information for the on-site market managers who may be contacted by the board or its designee to verify the locations at which bottled spirits may be sold. Before authorizing a qualifying farmers market to allow an approved craft distillery to sell bottled spirits at retail at its farmers market location, the board shall notify the persons or entities of the application for authorization pursuant to RCW 66.24.010 (8) and (9). An authorization granted under this subsection (6)(e) may be withdrawn by the board for any violation of this title or any rules adopted under this title.
     (f) The board may adopt rules establishing the application and approval process under this section and any additional rules necessary to implement this section.
     (g) For the purposes of this subsection (6):
     (i) "Qualifying farmers market" means an entity that sponsors a regular assembly of vendors at a defined location for the purpose of promoting the sale of agricultural products grown or produced in this state directly to the consumer under conditions that meet the following minimum requirements:
     (A) There are at least five participating vendors who are farmers selling their own agricultural products;
     (B) The total combined gross annual sales of vendors who are farmers exceeds the total combined gross annual sales of vendors who are processors or resellers;
     (C) The total combined gross annual sales of vendors who are farmers, processors, or resellers exceeds the total combined gross annual sales of vendors who are not farmers, processors, or resellers;
     (D) The sale of imported items and secondhand items by any vendor is prohibited; and
     (E) No vendor is a franchisee.
     (ii) "Farmer" means a natural person who sells, with or without processing, agricultural products that he or she raises on land he or she owns or leases in this state or in another state's county that borders this state.
     (iii) "Processor" means a natural person who sells processed food that he or she has personally prepared on land he or she owns or leases in this state or in another state's county that borders this state.
     (iv) "Reseller" means a natural person who buys agricultural products from a farmer and resells the products directly to the consumer.