Read first time 01/27/11.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to the Washington beer commission; and amending RCW 15.89.020, 15.89.040, 15.89.050, 15.89.100, and 15.89.110.

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

Sec. 1   RCW 15.89.020 and 2006 c 330 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) (("Affected producer" means any producer who is subject to this chapter.
     (2))) "Beer" means any malt beverage or malt liquor as the terms are defined in chapter 66.04 RCW.
     (((3))) (2) "Commission" means the Washington beer commission.
     (((4))) (3) "Department" means the department of agriculture.
     (((5))) (4) "Director" means the director of the department or the director's duly authorized representative.
     (((6))) (5) "Fiscal year" means the twelve-month period beginning with January 1st of any year and ending December 31st.
     (((7))) (6) "Producer" means any person or other entity licensed under Title 66 RCW to produce beer within Washington ((state and who produces less than one hundred thousand barrels of beer annually per location)).
     (((8))) (7) "Referendum" means a vote by ((affected)) producers that is conducted by secret ballot.

Sec. 2   RCW 15.89.040 and 2006 c 330 s 5 are each amended to read as follows:
     (1) Upon receipt of a petition containing the signatures of five beer producers from a statewide Washington state craft brewing trade association or from other ((affected)) producers to implement this chapter and to determine producer participation in the commission and assessment under this chapter, the director shall:
     (a) Conduct a referendum of beer producers. The requirements of assent or approval of the referendum are met if:
     (i) At least fifty-one percent by numbers of ((affected)) producers participating in the referendum vote affirmatively; and
     (ii) Thirty percent of the ((affected)) producers and thirty percent of the production have been represented in the referendum to determine assent or approval of participation and assessment. The referendum shall be conducted within sixty days of receipt of the petition; and
     (b) Establish a list of beer producers from information provided by the petitioners, by obtaining information on beer producers from applicable producer organizations or associations or other sources identified as maintaining the information. In establishing a current list of beer producers and their individual production, the director shall use the beer producer's name, mailing address, and production by the producer in the preceding fiscal year. Information on each producer shall be mailed to each beer producer on record with the director for verification. All corrections shall be filed with the director within twenty days from the date of mailing. The list of ((affected)) producers shall be kept in a file by the director. The list shall be certified as a true representation of the referendum mailing list. Inadvertent failure to notify ((an affected)) a producer does not invalidate a proceeding conducted under this chapter. The director shall provide the commission the list of ((affected)) producers after assent in a referendum as provided in this section.
     (2) If the director determines that the requisite assent has been given in the referendum conducted under subsection (1) of this section, the director shall:
     (a) Within sixty days after assent of the referendum held, appoint the members of the commission; and
     (b) Direct the commission to put into force the assessment as provided for in RCW 15.89.110.
     (3) If the director determines that the requisite assent has not been given in the referendum conducted under subsection (1) of this section, the director shall take no further action to implement or enforce this chapter.
     (4) Upon completion of the referendum conducted under subsection (1) of this section, the department shall tally the results of the vote and provide the results to ((affected)) producers. If ((an affected)) a producer disputes the results of a vote, that producer within sixty days from the announced results, shall provide in writing a statement of why the vote is disputed and request a recount. Once the vote is tallied and distributed, all disputes are resolved, and all matters in a vote are finalized, the individual ballots may be destroyed.
     (5) Before conducting the referendum provided for in subsection (1) of this section, the director may require the petitioners to deposit with him or her an amount of money as the director deems necessary to defray the expenses of conducting the referendum. The director shall provide the petitioners an estimate of expenses that may be incurred to conduct a referendum before any service takes place. Petitioners shall deposit funds with the director to pay for expenses incurred by the department. The commission shall reimburse petitioners the amount paid to the department when funds become available. However, if for any reason the referendum process is discontinued, the petitioners shall reimburse the department for expenses incurred by the department up until the time the process is discontinued.
     (6) The director is not required to hold a referendum under subsection (1) of this section more than once in any twelve-month period.

Sec. 3   RCW 15.89.050 and 2006 c 330 s 6 are each amended to read as follows:
     (1) The director shall appoint the producer members of the commission. In making appointments, no later than ninety days before an expiration of a commission member's term, the director shall call for recommendations for commission member positions, and the director shall take into consideration recommendations made by a statewide Washington state craft brewing trade association or other ((affected)) producers. In appointing persons to the commission, the director shall seek a balanced representation on the commission that reflects the composition of the beer producers throughout the state on the basis of beer produced and geographic location. Information on beer production by geographic location shall be provided by the commission upon the director's request.
     (2) If a position on the commission becomes vacant due to resignation, disqualification, death, or for any other reason, the commission shall notify the director and the unexpired term shall immediately be filled by appointment by the director.
     (3) Each member or employee of the commission shall be reimbursed for actual travel expenses incurred in carrying out this chapter as defined by the commission in rule. Otherwise if not defined in rule, reimbursement for travel expenses shall be at the rates allowed by RCW 43.03.050 and 43.03.060.

Sec. 4   RCW 15.89.100 and 2006 c 330 s 13 are each amended to read as follows:
     (1) The commission shall prepare a list of all ((affected)) producers from information available from the liquor control board, the department, or the producers' association. This list must contain the names and addresses of ((affected)) producers within this state and the amount, by barrelage, of beer produced during the period designated by the commission. A qualified person may, at any time, have his or her name placed upon the list by delivering or mailing the information to the commission. This list shall be corrected and brought up-to-date in accordance with evidence and information available to the commission by December 31st of each year. For the purposes of giving notice and holding referendums, the list updated before the date for issuing notices or ballots is the list of all producers entitled to notice, to assent or dissent, or to vote. Inadvertent failure to notify a producer does not invalidate a proceeding conducted under this chapter.
     (2) It is the responsibility of ((affected)) producers to ensure that their correct address is filed with the commission. It is also the responsibility of ((affected)) producers to submit production data to the commission as prescribed by this chapter.
     (3) The commission shall develop a reporting system to document that the ((affected)) producers in this state are reporting quantities of beer produced and are paying the assessment as provided in RCW 15.89.110.

Sec. 5   RCW 15.89.110 and 2006 c 330 s 14 are each amended to read as follows:
     (1) Pursuant to referendum in accordance with RCW 15.89.040, there is levied, and the commission shall collect, upon beer produced by ((an affected)) a producer, an annual assessment of ten cents per barrel of beer produced, up to ten thousand barrels per location.
     (2) The commission shall adopt rules prescribing the time, place, and method for payment and collection of this assessment and provide for the collection of assessments from ((affected)) producers who ship directly out-of-state.
     (3) The commission may reduce the assessment per ((affected)) producer based upon in-kind contributions to the commission.