Passed by the Senate March 7, 2011 YEAS 48   ________________________________________ President of the Senate Passed by the House April 6, 2011 YEAS 97   ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 5788 as passed by the Senate and the House of Representatives on the dates hereon set forth. ________________________________________ Secretary | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/21/11.
AN ACT Relating to regulating liquor by changing tied house and licensing provisions and making clarifying and technical changes to liquor laws; amending RCW 66.28.290, 66.24.360, 66.24.371, 66.24.570, 66.24.580, 66.28.040, 66.28.042, 66.28.043, 66.28.155, 66.28.190, 66.24.240, 66.20.010, 66.24.310, 66.24.400, 66.24.450, and 66.24.590; reenacting and amending RCW 66.28.310; repealing RCW 66.28.010; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 101 RCW 66.28.310 and 2010 c 290 s 3 and 2010 c 141 s 4 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:
(((a))) (i) Installation of draft beer dispensing equipment or
advertising;
(((b))) (ii) Advertising, pouring, or dispensing of beer or wine at
a beer or wine tasting exhibition or judging event; or
(((c))) (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,
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.
(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 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. 201 RCW 66.28.010 (Manufacturers, importers,
distributors, and authorized representatives barred from interest in
retail business or location -- Advances prohibited -- "Financial interest"
defined -- Exceptions) and 2009 c 373 s 5 & 2008 c 94 s 5 are each
repealed.
Sec. 202 RCW 66.28.290 and 2009 c 506 s 3 are each amended to
read as follows:
(1) Notwithstanding any prohibitions and restrictions contained in
this title, it shall be lawful for an industry member or affiliate to
have a direct or indirect financial interest in another industry member
or a retailer, and for a retailer or affiliate to have a direct or
indirect financial interest in an industry member unless such interest
has resulted or is more likely than not to result in undue influence
over the retailer or the industry member or has resulted or is more
likely than not to result in an adverse impact on public health and
safety. The structure of any such financial interest must be
consistent with subsection (2) of this section.
(2) Subject to subsection (1) of this section and except as
provided in RCW 66.28.295:
(a) An industry member in whose name a license or certificate of
approval has been issued pursuant to this title may wholly own or hold
a financial interest in a separate legal entity licensed pursuant to
RCW 66.24.320 ((through 66.24.570)), 66.24.330, 66.24.350, 66.24.360,
66.24.371, 66.24.380, 66.24.395, 66.24.400, 66.24.425, 66.24.452,
66.24.495, 66.24.540, 66.24.550, 66.24.570, 66.24.580, 66.24.590, and
66.24.600, but may not have such a license issued in its name; and
(b) A retailer in whose name a license has been issued pursuant to
this title may wholly own or hold a financial interest in a separate
legal entity licensed or holding a certificate of approval pursuant to
RCW 66.24.140, 66.24.170, 66.24.206, 66.24.240, 66.24.244,
66.24.270(2), 66.24.200, or 66.24.250, but may not have such a license
or certificate of approval issued in its name; and
(c) A supplier in whose name a license or certificate of approval
has been issued pursuant to this title may wholly own or hold a
financial interest in a separate legal entity licensed as a distributor
or importer under this title, but such supplier may not have a license
as a distributor or importer issued in its own name; and
(d) A distributor or importer in whose name a license has been
issued pursuant to this title may wholly own or hold a financial
interest in a separate legal entity licensed or holding a certificate
of approval as a supplier under this title, but such distributor or
importer may not have a license or certificate of approval as a
supplier issued in its own name.
Sec. 203 RCW 66.24.360 and 2007 c 226 s 2 are each amended to
read as follows:
There shall be a beer and/or wine retailer's license to be
designated as a grocery store license to sell beer, strong beer, and/or
wine at retail in bottles, cans, and original containers, not to be
consumed upon the premises where sold, at any store other than the
state liquor stores.
(1) Licensees obtaining a written endorsement from the board may
also sell malt liquor in kegs or other containers capable of holding
less than five and one-half gallons of liquid.
(2) The annual fee for the grocery store license is one hundred
fifty dollars for each store.
(3) The board shall issue a restricted grocery store license
authorizing the licensee to sell beer and only table wine, if the board
finds upon issuance or renewal of the license that the sale of strong
beer or fortified wine would be against the public interest. In
determining the public interest, the board shall consider at least the
following factors:
(a) The likelihood that the applicant will sell strong beer or
fortified wine to persons who are intoxicated;
(b) Law enforcement problems in the vicinity of the applicant's
establishment that may arise from persons purchasing strong beer or
fortified wine at the establishment; and
(c) Whether the sale of strong beer or fortified wine would be
detrimental to or inconsistent with a government-operated or funded
alcohol treatment or detoxification program in the area.
If the board receives no evidence or objection that the sale of
strong beer or fortified wine would be against the public interest, it
shall issue or renew the license without restriction, as applicable.
The burden of establishing that the sale of strong beer or fortified
wine by the licensee would be against the public interest is on those
persons objecting.
(4) Licensees holding a grocery store license must maintain a
minimum three thousand dollar inventory of food products for human
consumption, not including pop, beer, strong beer, or wine.
(5) Upon approval by the board, the grocery store licensee may also
receive an endorsement to permit the international export of beer,
strong beer, and wine.
(a) Any beer, strong beer, or wine sold under this endorsement must
have been purchased from a licensed beer or wine distributor licensed
to do business within the state of Washington.
(b) Any beer, strong beer, and wine sold under this endorsement
must be intended for consumption outside the state of Washington and
the United States and appropriate records must be maintained by the
licensee.
(c) ((A holder of this special endorsement to the grocery store
license shall be considered not in violation of RCW 66.28.010.)) Any beer, strong beer, or wine sold under this license must
be sold at a price no less than the acquisition price paid by the
holder of the license.
(d)
(((e))) (d) The annual cost of this endorsement is five hundred
dollars and is in addition to the license fees paid by the licensee for
a grocery store license.
(6) A grocery store licensee holding a snack bar license under RCW
66.24.350 may receive an endorsement to allow the sale of confections
containing more than one percent but not more than ten percent alcohol
by weight to persons twenty-one years of age or older.
Sec. 204 RCW 66.24.371 and 2009 c 373 s 6 are each amended to
read as follows:
(1) There shall be a beer and/or wine retailer's license to be
designated as a beer and/or wine specialty shop license to sell beer,
strong beer, and/or wine at retail in bottles, cans, and original
containers, not to be consumed upon the premises where sold, at any
store other than the state liquor stores. Licensees obtaining a
written endorsement from the board may also sell malt liquor in kegs or
other containers capable of holding four gallons or more of liquid.
The annual fee for the beer and/or wine specialty shop license is one
hundred dollars for each store. The sale of any container holding four
gallons or more must comply with RCW 66.28.200 and 66.28.220.
(2) Licensees under this section may provide, free or for a charge,
single-serving samples of two ounces or less to customers for the
purpose of sales promotion. Sampling activities of licensees under
this section are subject to RCW ((66.28.010)) 66.28.305 and 66.28.040
and the cost of sampling under this section may not be borne, directly
or indirectly, by any manufacturer, importer, or distributor of liquor.
(3) The board shall issue a restricted beer and/or wine specialty
shop license, authorizing the licensee to sell beer and only table
wine, if the board finds upon issuance or renewal of the license that
the sale of strong beer or fortified wine would be against the public
interest. In determining the public interest, the board shall consider
at least the following factors:
(a) The likelihood that the applicant will sell strong beer or
fortified wine to persons who are intoxicated;
(b) Law enforcement problems in the vicinity of the applicant's
establishment that may arise from persons purchasing strong beer or
fortified wine at the establishment; and
(c) Whether the sale of strong beer or fortified wine would be
detrimental to or inconsistent with a government-operated or funded
alcohol treatment or detoxification program in the area.
If the board receives no evidence or objection that the sale of
strong beer or fortified wine would be against the public interest, it
shall issue or renew the license without restriction, as applicable.
The burden of establishing that the sale of strong beer or fortified
wine by the licensee would be against the public interest is on those
persons objecting.
(4) Licensees holding a beer and/or wine specialty shop license
must maintain a minimum three thousand dollar wholesale inventory of
beer, strong beer, and/or wine.
Sec. 205 RCW 66.24.570 and 2007 c 369 s 2 are each amended to
read as follows:
(1) There is a license for sports entertainment facilities to be
designated as a sports entertainment facility license to sell beer,
wine, and spirits at retail, for consumption upon the premises only,
the license to be issued to the entity providing food and beverage
service at a sports entertainment facility as defined in this section.
The cost of the license is two thousand five hundred dollars per annum.
(2) For purposes of this section, a sports entertainment facility
includes a publicly or privately owned arena, coliseum, stadium, or
facility where sporting events are presented for a price of admission.
The facility does not have to be exclusively used for sporting events.
(3) The board may impose reasonable requirements upon a licensee
under this section, such as requirements for the availability of food
and victuals including but not limited to hamburgers, sandwiches,
salads, or other snack food. The board may also restrict the type of
events at a sports entertainment facility at which beer, wine, and
spirits may be served. When imposing conditions for a licensee, the
board must consider the seating accommodations, eating facilities, and
circulation patterns in such a facility, and other amenities available
at a sports entertainment facility.
(4)(a) The board may issue a caterer's endorsement to the license
under this section to allow the licensee to remove from the liquor
stocks at the licensed premises, for use as liquor for sale and service
at event locations at a specified date and place not currently licensed
by the board. If the event is open to the public, it must be sponsored
by a society or organization as defined by RCW 66.24.375. If
attendance at the event is limited to members or invited guests of the
sponsoring individual, society, or organization, the requirement that
the sponsor must be a society or organization as defined by RCW
66.24.375 is waived. Cost of the endorsement is three hundred fifty
dollars.
(b) The holder of this license with catering endorsement shall, if
requested by the board, notify the board or its designee of the date,
time, place, and location of any catered event. Upon request, the
licensee shall provide to the board all necessary or requested
information concerning the society or organization that will be holding
the function at which the endorsed license will be utilized.
(5) The board may issue an endorsement to the beer, wine, and
spirits sports entertainment facility license that allows the holder of
a beer, wine, and spirits sports entertainment facility license to sell
for off-premises consumption wine vinted and bottled in the state of
Washington and carrying a label exclusive to the license holder selling
the wine. Spirits and beer may not be sold for off-premises
consumption under this section. The annual fee for the endorsement
under this section is one hundred twenty dollars.
(6)(a) A licensee and an affiliated business may enter into
arrangements with a manufacturer, importer, or distributor for brand
advertising at the sports entertainment facility or promotion of events
held at the sports entertainment facility, with a capacity of five
thousand people or more. The financial arrangements providing for the
brand advertising or promotion of events shall not be used as an
inducement to purchase the products of the manufacturer, importer, or
distributor entering into the arrangement nor shall it result in the
exclusion of brands or products of other companies.
(b) The arrangements allowed under this subsection (6) are an
exception to arrangements prohibited under RCW ((66.28.010)) 66.28.305.
The board shall monitor the impacts of these arrangements. The board
may conduct audits of the licensee and the affiliated business to
determine compliance with this subsection (6). Audits may include but
are not limited to product selection at the facility; purchase patterns
of the licensee; contracts with the liquor manufacturer, importer, or
distributor; and the amount allocated or used for liquor advertising by
the licensee, affiliated business, manufacturer, importer, or
distributor under the arrangements.
(c) The board shall report to the appropriate committees of the
legislature by December 30, 2008, and biennially thereafter, on the
impacts of arrangements allowed between sports entertainment licensees
and liquor manufacturers, importers, and distributors for brand
advertising and promotion of events at the facility.
Sec. 206 RCW 66.24.580 and 1999 c 281 s 6 are each amended to
read as follows:
(1) A public house license allows the licensee:
(a) To annually manufacture no less than two hundred fifty gallons
and no more than two thousand four hundred barrels of beer on the
licensed premises;
(b) To sell product, that is produced on the licensed premises, at
retail on the licensed premises for consumption on the licensed
premises;
(c) To sell beer or wine not of its own manufacture for consumption
on the licensed premises if the beer or wine has been purchased from a
licensed beer or wine wholesaler;
(d) ((To hold other classes of retail licenses at other locations
without being considered in violation of RCW 66.28.010;)) To apply for and, if qualified and upon the payment of the
appropriate fee, be licensed as a spirits, beer, and wine restaurant to
do business at the same location. This fee is in addition to the fee
charged for the basic public house license.
(e)
(2) ((While the holder of a public house license is not to be
considered in violation of the prohibitions of ownership or interest in
a retail license in RCW 66.28.010, the remainder of RCW 66.28.010
applies to such licensees.)) RCW 66.28.305 applies to a public house
license.
(3) A public house licensee must pay all applicable taxes on
production as are required by law, and all appropriate taxes must be
paid for any product sold at retail on the licensed premises.
(4) The employees of the licensee must comply with the provisions
of mandatory server training in RCW 66.20.300 through 66.20.350.
(5) The holder of a public house license may not hold a
wholesaler's or importer's license, act as the agent of another
manufacturer, wholesaler, or importer, or hold a brewery or winery
license.
(6) The annual license fee for a public house is one thousand
dollars.
(7) The holder of a public house license may hold other licenses at
other locations if the locations are approved by the board.
(8) Existing holders of annual retail liquor licenses may apply for
and, if qualified, be granted a public house license at one or more of
their existing liquor licensed locations without discontinuing business
during the application or construction stages.
Sec. 207 RCW 66.28.040 and 2009 c 373 s 8 are each amended to
read as follows:
Except as permitted by the board under RCW 66.20.010, no domestic
brewery, microbrewery, distributor, distiller, domestic winery,
importer, rectifier, certificate of approval holder, or other
manufacturer of liquor shall, within the state of Washington, give to
any person any liquor; but nothing in this section nor in RCW
((66.28.010 shall)) 66.28.305 prevents a domestic brewery,
microbrewery, distributor, domestic winery, distiller, certificate of
approval holder, or importer from furnishing samples of beer, wine, or
spirituous liquor to authorized licensees for the purpose of
negotiating a sale, in accordance with regulations adopted by the
liquor control board, provided that the samples are subject to taxes
imposed by RCW 66.24.290 and 66.24.210, and in the case of spirituous
liquor, any product used for samples must be purchased at retail from
the board; nothing in this section shall prevent the furnishing of
samples of liquor to the board for the purpose of negotiating the sale
of liquor to the state liquor control board; nothing in this section
shall prevent a domestic brewery, microbrewery, domestic winery,
distillery, certificate of approval holder, or distributor from
furnishing beer, wine, or spirituous liquor for instructional purposes
under RCW 66.28.150; nothing in this section shall prevent a domestic
winery, certificate of approval holder, or distributor from furnishing
wine without charge, subject to the taxes imposed by RCW 66.24.210, to
a not-for-profit group organized and operated solely for the purpose of
enology or the study of viticulture which has been in existence for at
least six months and that uses wine so furnished solely for such
educational purposes or a domestic winery, or an out-of-state
certificate of approval holder, from furnishing wine without charge or
a domestic brewery, or an out-of-state certificate of approval holder,
from furnishing beer without charge, subject to the taxes imposed by
RCW 66.24.210 or 66.24.290, or a domestic distiller licensed under RCW
66.24.140 or an accredited representative of a distiller, manufacturer,
importer, or distributor of spirituous liquor licensed under RCW
66.24.310, from furnishing spirits without charge, to a nonprofit
charitable corporation or association exempt from taxation under
section 501(c)(3) or (6) of the internal revenue code of 1986 (26
U.S.C. Sec. 501(c)(3) or (6)) for use consistent with the purpose or
purposes entitling it to such exemption; nothing in this section shall
prevent a domestic brewery or microbrewery from serving beer without
charge, on the brewery premises; nothing in this section shall prevent
donations of wine for the purposes of RCW 66.12.180; nothing in this
section shall prevent a domestic winery from serving wine without
charge, on the winery premises; and nothing in this section shall
prevent a craft distillery from serving spirits without charge, on the
distillery premises subject to RCW 66.24.145.
Sec. 208 RCW 66.28.042 and 2004 c 160 s 12 are each amended to
read as follows:
A liquor manufacturer, importer, authorized representative holding
a certificate of approval, or distributor may provide to licensed
retailers and their employees food and beverages for consumption at a
meeting at which the primary purpose is the discussion of business, and
may provide local ground transportation to and from such meetings. The
value of the food, beverage, or transportation provided under this
section shall not be considered the advancement of moneys or moneys'
worth within the meaning of RCW ((66.28.010)) 66.28.305, nor shall it
be considered the giving away of liquor within the meaning of RCW
((68.28.040)) 66.28.040. The board may adopt rules for the
implementation of this section.
Sec. 209 RCW 66.28.043 and 2004 c 160 s 13 are each amended to
read as follows:
A liquor manufacturer, importer, authorized representative holding
a certificate of approval, or distributor may provide to licensed
retailers and their employees tickets or admission fees for athletic
events or other forms of entertainment occurring within the state of
Washington, if the manufacturer, importer, distributor, authorized
representative holding a certificate of approval, or any of their
employees accompanies the licensed retailer or its employees to the
event. A liquor manufacturer, importer, authorized representative
holding a certificate of approval, or distributor may also provide to
licensed retailers and their employees food and beverages for
consumption at such events, and local ground transportation to and from
activities allowed under this section. The value of the food,
beverage, transportation, or admission to events provided under this
section shall not be considered the advancement of moneys or moneys'
worth within the meaning of RCW ((66.28.010)) 66.28.305, nor shall it
be considered the giving away of liquor within the meaning of RCW
((68.28.040)) 66.28.040. The board may adopt rules for the
implementation of this section.
Sec. 210 RCW 66.28.155 and 2004 c 160 s 15 are each amended to
read as follows:
A domestic brewery, microbrewery, domestic winery, distillery,
distributor, certificate of approval holder, or its licensed agent may
conduct educational activities or provide product information to the
consumer on the licensed premises of a retailer. Information on the
subject of wine, beer, or spirituous liquor, including but not limited
to, the history, nature, quality, and characteristics of a wine, beer,
or spirituous liquor, methods of harvest, production, storage,
handling, and distribution of a wine, beer, or spirituous liquor, and
the general development of the wine, beer, and spirituous liquor
industry may be provided by a domestic brewery, microbrewery, domestic
winery, distillery, distributor, certificate of approval holder, or its
licensed agent to the public on the licensed premises of a retailer.
The retailer requesting such activity shall attempt to schedule a
series of brewery, winery, authorized representative, or distillery and
distributor appearances in an effort to equitably represent the
industries. Nothing in this section permits a domestic brewery,
microbrewery, domestic winery, distillery, distributor, certificate of
approval holder, or its licensed agent to receive compensation or
financial benefit from the educational activities or product
information presented on the licensed premises of a retailer. The
promotional value of such educational activities or product information
shall not be considered advancement of moneys or of moneys' worth
within the meaning of RCW ((66.28.010)) 66.28.305.
Sec. 211 RCW 66.28.190 and 2003 c 168 s 305 are each amended to
read as follows:
RCW ((66.28.010)) 66.28.305 notwithstanding, persons licensed under
RCW 66.24.200 as wine distributors and persons licensed under RCW
66.24.250 as beer distributors may sell at wholesale nonliquor food and
food ingredients on thirty-day credit terms to persons licensed as
retailers under this title, but complete and separate accounting
records shall be maintained on all sales of nonliquor food and food
ingredients to ensure that such persons are in compliance with RCW
((66.28.010)) 66.28.305.
For the purpose of this section, "nonliquor food and food
ingredients" includes all food and food ingredients for human
consumption as defined in RCW 82.08.0293 as it exists on July 1, 2004.
Sec. 212 RCW 66.24.240 and 2008 c 41 s 7 are each amended to read
as follows:
(1) There shall be a license for domestic breweries; fee to be two
thousand dollars for production of sixty thousand barrels or more of
malt liquor per year.
(2) Any domestic brewery, except for a brand owner of malt
beverages under RCW 66.04.010(((6))), licensed under this section may
also act as a distributor and/or retailer for beer of its own
production. Any domestic brewery operating as a distributor and/or
retailer under this subsection shall comply with the applicable laws
and rules relating to distributors and/or retailers. A domestic
brewery holding a spirits, beer, and wine restaurant license may sell
beer of its own production for off-premises consumption from its
restaurant premises in kegs or in a sanitary container brought to the
premises by the purchaser or furnished by the licensee and filled at
the tap by the licensee at the time of sale.
(3) A domestic brewery may hold up to two retail licenses to
operate an on or off-premise tavern, beer and/or wine restaurant, or
spirits, beer, and wine restaurant. This retail license is separate
from the brewery license. A brewery that holds a tavern license, a
spirits, beer, and wine restaurant license, or a beer and/or wine
restaurant license shall hold the same privileges and endorsements as
permitted under RCW 66.24.320, 66.24.330, and 66.24.420.
(4) Any domestic brewery licensed under this section may contract-produce beer for a brand owner of malt beverages defined under RCW
66.04.010(((6))), and this contract-production is not a sale for the
purposes of RCW 66.28.170 and 66.28.180.
(5)(a) A domestic brewery licensed under this section and qualified
for a reduced rate of taxation pursuant to RCW 66.24.290(3)(b) may
apply to the board for an endorsement to sell bottled beer 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 domestic brewery will sell beer
at a qualifying farmers market, the domestic brewery must provide the
board or its designee a list of the dates, times, and locations at
which bottled beer may be offered for sale. This list must be received
by the board before the domestic brewery may offer beer for sale at a
qualifying farmers market.
(c) The beer 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 domestic brewery license for the purpose of this
title. The approved locations under an endorsement granted under this
subsection do not include the tasting or sampling privilege of a
domestic brewery. The domestic brewery may not store beer at a farmers
market beyond the hours that the domestic brewery offers bottled beer
for sale. The domestic brewery may not act as a distributor from a
farmers market location.
(e) Before a domestic brewery may sell bottled beer at a qualifying
farmers market, the farmers market must apply to the board for
authorization for any domestic brewery with an endorsement approved
under this subsection to sell bottled beer 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 domestic brewery may sell bottled beer;
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 beer may be sold. Before authorizing a
qualifying farmers market to allow an approved domestic brewery to sell
bottled beer at retail at its farmers market location, the board shall
notify the persons or entities of such application for authorization
pursuant to RCW 66.24.010 (8) and (9). An authorization granted under
this subsection (5)(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 such additional rules as may be
necessary to implement this section.
(g) For the purposes of this subsection:
(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.
Sec. 213 RCW 66.20.010 and 2008 c 181 s 602 are each amended to
read as follows:
Upon application in the prescribed form being made to any employee
authorized by the board to issue permits, accompanied by payment of the
prescribed fee, and upon the employee being satisfied that the
applicant should be granted a permit under this title, the employee
shall issue to the applicant under such regulations and at such fee as
may be prescribed by the board a permit of the class applied for, as
follows:
(1) Where the application is for a special permit by a physician or
dentist, or by any person in charge of an institution regularly
conducted as a hospital or sanitorium for the care of persons in ill
health, or as a home devoted exclusively to the care of aged people, a
special liquor purchase permit, except that the governor may waive the
requirement for a special liquor purchase permit under this subsection
pursuant to an order issued under RCW 43.06.220(2);
(2) Where the application is for a special permit by a person
engaged within the state in mechanical or manufacturing business or in
scientific pursuits requiring alcohol for use therein, or by any
private individual, a special permit to purchase alcohol for the
purpose named in the permit, except that the governor may waive the
requirement for a special liquor purchase permit under this subsection
pursuant to an order issued under RCW 43.06.220(2);
(3) Where the application is for a special permit to consume liquor
at a banquet, at a specified date and place, a special permit to
purchase liquor for consumption at such banquet, to such applicants as
may be fixed by the board;
(4) Where the application is for a special permit to consume liquor
on the premises of a business not licensed under this title, a special
permit to purchase liquor for consumption thereon for such periods of
time and to such applicants as may be fixed by the board;
(5) Where the application is for a special permit by a manufacturer
to import or purchase within the state alcohol, malt, and other
materials containing alcohol to be used in the manufacture of liquor,
or other products, a special permit;
(6) Where the application is for a special permit by a person
operating a drug store to purchase liquor at retail prices only, to be
thereafter sold by such person on the prescription of a physician, a
special liquor purchase permit, except that the governor may waive the
requirement for a special liquor purchase permit under this subsection
pursuant to an order issued under RCW 43.06.220(2);
(7) Where the application is for a special permit by an authorized
representative of a military installation operated by or for any of the
armed forces within the geographical boundaries of the state of
Washington, a special permit to purchase liquor for use on such
military installation at prices to be fixed by the board;
(8) Where the application is for a special permit by a vendor that
manufactures or sells a product which cannot be effectively presented
to potential buyers without serving it with liquor or by a
manufacturer, importer, or distributor, or representative thereof, to
serve liquor without charge to delegates and guests at a convention of
a trade association composed of licensees of the board, when the said
liquor is served in a hospitality room or from a booth in a board-approved suppliers' display room at the convention, and when the liquor
so served is for consumption in the said hospitality room or display
room during the convention, anything in Title 66 RCW to the contrary
notwithstanding. Any such spirituous liquor shall be purchased from
the board or a spirits, beer, and wine restaurant licensee and any such
beer and wine shall be subject to the taxes imposed by RCW 66.24.290
and 66.24.210;
(9) Where the application is for a special permit by a
manufacturer, importer, or distributor, or representative thereof, to
donate liquor for a reception, breakfast, luncheon, or dinner for
delegates and guests at a convention of a trade association composed of
licensees of the board, when the liquor so donated is for consumption
at the said reception, breakfast, luncheon, or dinner during the
convention, anything in Title 66 RCW to the contrary notwithstanding.
Any such spirituous liquor shall be purchased from the board or a
spirits, beer, and wine restaurant licensee and any such beer and wine
shall be subject to the taxes imposed by RCW 66.24.290 and 66.24.210;
(10) Where the application is for a special permit by a
manufacturer, importer, or distributor, or representative thereof, to
donate and/or serve liquor without charge to delegates and guests at an
international trade fair, show, or exposition held under the auspices
of a federal, state, or local governmental entity or organized and
promoted by a nonprofit organization, anything in Title 66 RCW to the
contrary notwithstanding. Any such spirituous liquor shall be
purchased from the board and any such beer or wine shall be subject to
the taxes imposed by RCW 66.24.290 and 66.24.210;
(11) Where the application is for an annual special permit by a
person operating a bed and breakfast lodging facility to donate or
serve wine or beer without charge to overnight guests of the facility
if the wine or beer is for consumption on the premises of the facility.
"Bed and breakfast lodging facility," as used in this subsection, means
a facility offering from one to eight lodging units and breakfast to
travelers and guests.
Sec. 301 RCW 66.24.310 and 1997 c 321 s 17 are each amended to
read as follows:
(1)(a) Except as provided in (b) of this subsection, no person
shall canvass for, solicit, receive, or take orders for the purchase or
sale of liquor, nor contact any licensees of the board in goodwill
activities, unless such person shall be the accredited representative
of a person, firm, or corporation holding a certificate of approval
issued pursuant to RCW 66.24.270 or 66.24.206, a beer distributor's
license, a microbrewer's license, a domestic brewer's license, a beer
importer's license, a domestic winery license, a wine importer's
license, or a wine distributor's license within the state of
Washington, or the accredited representative of a distiller,
manufacturer, importer, or distributor of spirituous liquor, or foreign
produced beer or wine, and shall have applied for and received a
representative's license((: PROVIDED, HOWEVER, That the provisions of
this section shall not apply to drivers who deliver beer or wine;)).
(b) (a) of this subsection shall not apply to: (i) Drivers who
deliver beer or wine; or (ii) domestic wineries or their employees.
(2) Every representative's license issued under this title shall be
subject to all conditions and restrictions imposed by this title or by
the rules and regulations of the board; the board, for the purpose of
maintaining an orderly market, may limit the number of representative's
licenses issued for representation of specific classes of eligible
employers((;)).
(3) Every application for a representative's license must be
approved by a holder of a certificate of approval issued pursuant to
RCW 66.24.270 or 66.24.206, a licensed beer distributor, a licensed
domestic brewer, a licensed beer importer, a licensed microbrewer, a
licensed domestic winery, a licensed wine importer, a licensed wine
distributor, or by a distiller, manufacturer, importer, or distributor
of spirituous liquor, or foreign produced beer or wine, as the rules
and regulations of the board shall require((;)).
(4) The fee for a representative's license shall be twenty-five
dollars per year((;)).
(5) An accredited representative of a distiller, manufacturer,
importer, or distributor of spirituous liquor may, after he or she has
applied for and received a representative's license, contact retail
licensees of the board only in goodwill activities pertaining to
spirituous liquor products.
Sec. 401 RCW 66.24.400 and 2008 c 41 s 10 are each amended to
read as follows:
(1) There shall be a retailer's license, to be known and designated
as a spirits, beer, and wine restaurant license, to sell spirituous
liquor by the individual glass, beer, and wine, at retail, for
consumption on the premises, including mixed drinks and cocktails
compounded or mixed on the premises only. A club licensed under
chapter 70.62 RCW with overnight sleeping accommodations, that is
licensed under this section may sell liquor by the bottle to registered
guests of the club for consumption in guest rooms, hospitality rooms,
or at banquets in the club. A patron of a bona fide restaurant or club
licensed under this section may remove from the premises recorked or
recapped in its original container any portion of wine which was
purchased for consumption with a meal, and registered guests who have
purchased liquor from the club by the bottle may remove from the
premises any unused portion of such liquor in its original container.
Such license may be issued only to bona fide restaurants and clubs, and
to dining, club and buffet cars on passenger trains, and to dining
places on passenger boats and airplanes, and to dining places at civic
centers with facilities for sports, entertainment, and conventions, and
to such other establishments operated and maintained primarily for the
benefit of tourists, vacationers and travelers as the board shall
determine are qualified to have, and in the discretion of the board
should have, a spirits, beer, and wine restaurant license under the
provisions and limitations of this title.
(2) The board may issue an endorsement to the spirits, beer, and
wine restaurant license that allows the holder of a spirits, beer, and
wine restaurant license to sell bottled wine for off-premises
consumption. Spirits and beer may not be sold for off-premises
consumption under this section except as provided in subsection (4) of
this section. The annual fee for the endorsement under this subsection
is one hundred twenty dollars.
(3) The holder of a spirits, beer, and wine license or its manager
may furnish beer, wine, or spirituous liquor to the licensee's
employees free of charge as may be required for use in connection with
instruction on beer, wine, or spirituous liquor. The instruction may
include the history, nature, values, and characteristics of beer, wine,
or spirituous liquor, the use of wine lists, and the methods of
presenting, serving, storing, and handling beer, wine, and spirituous
liquor. The spirits, beer, and wine restaurant licensee must use the
beer, wine, or spirituous liquor it obtains under its license for the
sampling as part of the instruction. The instruction must be given on
the premises of the spirits, beer, and wine restaurant licensee.
(4) The board may issue an endorsement to the spirits, beer, and
wine restaurant license that allows the holder of a spirits, beer, and
wine restaurant license to sell for off-premises consumption malt
liquor in kegs or other containers that are capable of holding four
gallons or more of liquid and are registered in accordance with RCW
66.28.200. Beer may also be sold under the endorsement to a purchaser
in a sanitary container brought to the premises by the purchaser or
furnished by the licensee and filled at the tap by the retailer at the
time of sale. The annual fee for the endorsement under this subsection
is one hundred twenty dollars.
Sec. 402 RCW 66.24.450 and 2009 c 373 s 2 are each amended to
read as follows:
(1) No club shall be entitled to a spirits, beer, and wine private
club license:
(a) Unless such private club has been in continuous operation for
at least one year immediately prior to the date of its application for
such license;
(b) Unless the private club premises be constructed and equipped,
conducted, managed, and operated to the satisfaction of the board and
in accordance with this title and the regulations made thereunder;
(c) Unless the board shall have determined pursuant to any
regulations made by it with respect to private clubs, that such private
club is a bona fide private club; it being the intent of this section
that license shall not be granted to a club which is, or has been,
primarily formed or activated to obtain a license to sell liquor, but
solely to a bona fide private club, where the sale of liquor is
incidental to the main purposes of the spirits, beer, and wine private
club, as defined in RCW 66.04.010(8).
(2) The annual fee for a spirits, beer, and wine private club
license, whether inside or outside of an incorporated city or town, is
seven hundred twenty dollars per year.
(3) The board may issue an endorsement to the spirits, beer, and
wine private club license that allows ((up to forty)) nonclub, member-sponsored events using club liquor. Visitors and guests may attend
these events only by invitation of the sponsoring member or members.
These events may not be open to the general public. The fee for the
endorsement shall be an annual fee of nine hundred dollars. Upon the
board's request, the holder of the endorsement must provide the board
or the board's designee with the following information at least
seventy-two hours prior to the event: The date, time, and location of
the event; the name of the sponsor of the event; and a brief
description of the purpose of the event.
(4) The board may issue an endorsement to the spirits, beer, and
wine private club license that allows the holder of a spirits, beer,
and wine private club license to sell bottled wine for off-premises
consumption. Spirits and beer may not be sold for off-premises
consumption under this section. The annual fee for the endorsement
under this section is one hundred twenty dollars.
Sec. 403 RCW 66.24.590 and 2008 c 41 s 11 are each amended to
read as follows:
(1) There shall be a retailer's license to be designated as a hotel
license. No license may be issued to a hotel offering rooms to its
guests on an hourly basis. Food service provided for room service,
banquets or conferences, or restaurant operation under this license
shall meet the requirements of rules adopted by the board.
(2) The hotel license authorizes the licensee to:
(a) Sell ((spiritous)) spirituous liquor, beer, and wine, by the
individual glass, at retail, for consumption on the premises, including
mixed drinks and cocktails compounded and mixed on the premises;
(b) Sell, at retail, from locked honor bars, in individual units,
spirits not to exceed fifty milliliters, beer in individual units not
to exceed twelve ounces, and wine in individual bottles not to exceed
three hundred eighty-five milliliters, to registered guests of the
hotel for consumption in guest rooms. The licensee shall require proof
of age from the guest renting a guest room and requesting the use of an
honor bar. The guest shall also execute an affidavit verifying that no
one under twenty-one years of age shall have access to the spirits,
beer, and wine in the honor bar;
(c) Provide without additional charge, to overnight guests,
spirits, beer, and wine by the individual serving for on-premises
consumption at a specified regular date, time, and place as may be
fixed by the board. Self-service by attendees is prohibited;
(d) Sell beer, including strong beer, wine, or spirits, in the
manufacturer's sealed container or by the individual drink to guests
through room service, or through service to occupants of private
residential units which are part of the buildings or complex of
buildings that include the hotel;
(e) Sell beer, including strong beer, or wine, in the
manufacturer's sealed container at retail sales locations within the
hotel premises;
(f) Sell beer to a purchaser in a sanitary container brought to the
premises by the purchaser or furnished by the licensee and filled at
the tap in the restaurant area by the licensee at the time of sale;
(g) Sell for on or off-premises consumption, including through room
service and service to occupants of private residential units managed
by the hotel, wine carrying a label exclusive to the hotel license
holder;
(((g))) (h) Place in guest rooms at check-in, a complimentary
bottle of beer, including strong beer, or wine in a manufacturer-sealed
container, and make a reference to this service in promotional
material.
(3) If all or any facilities for alcoholic beverage service and the
preparation, cooking, and serving of food are operated under contract
or joint venture agreement, the operator may hold a license separate
from the license held by the operator of the hotel. Food and beverage
inventory used in separate licensed operations at the hotel may not be
shared and shall be separately owned and stored by the separate
licensees.
(4) All spirits to be sold under this license must be purchased
from the board.
(5) All on-premise alcoholic beverage service must be done by an
alcohol server as defined in RCW 66.20.300 and must comply with RCW
66.20.310.
(6)(a) The hotel license allows the licensee to remove from the
liquor stocks at the licensed premises, liquor for sale and service at
event locations at a specified date and place not currently licensed by
the board. If the event is open to the public, it must be sponsored by
a society or organization as defined by RCW 66.24.375. If attendance
at the event is limited to members or invited guests of the sponsoring
individual, society, or organization, the requirement that the sponsor
must be a society or organization as defined by RCW 66.24.375 is
waived.
(b) The holder of this license shall, if requested by the board,
notify the board or its designee of the date, time, place, and location
of any event. Upon request, the licensee shall provide to the board
all necessary or requested information concerning the society or
organization that will be holding the function at which the endorsed
license will be utilized.
(c) Licensees may cater events on a domestic winery premises.
(7) The holder of this license or its manager may furnish spirits,
beer, or wine to the licensee's employees who are twenty-one years of
age or older free of charge as may be required for use in connection
with instruction on spirits, beer, and wine. The instruction may
include the history, nature, values, and characteristics of spirits,
beer, or wine, the use of wine lists, and the methods of presenting,
serving, storing, and handling spirits, beer, or wine. The licensee
must use the beer or wine it obtains under its license for the sampling
as part of the instruction. The instruction must be given on the
premises of the licensee.
(8) Minors may be allowed in all areas of the hotel where alcohol
may be consumed; however, the consumption must be incidental to the
primary use of the area. These areas include, but are not limited to,
tennis courts, hotel lobbies, and swimming pool areas. If an area is
not a mixed use area, and is primarily used for alcohol service, the
area must be designated and restricted to access by minors.
(9) The annual fee for this license is two thousand dollars.
(10) As used in this section, "hotel," "spirits," "beer," and
"wine" have the meanings defined in RCW 66.24.410 and 66.04.010.
NEW SECTION. Sec. 501 Sections 203, 204, and 206 of this act are
necessary for the immediate preservation of the public peace, health,
or safety, or support of the state government and its existing public
institutions, and take effect July 1, 2011.