BILL REQ. #: H-3968.1
State of Washington | 63rd Legislature | 2014 Regular Session |
READ FIRST TIME 02/05/14.
AN ACT Relating to creating a liquor license for fairs; amending RCW 66.24.170, 66.24.244, and 66.24.145; reenacting and amending RCW 66.20.300, 66.20.310, and 66.24.240; adding a new section to chapter 66.24 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature recognizes that state
and local fairs provide valuable educational and entertainment
experiences for the citizens and visitors of the state. Each year,
thousands of people patronize their city, county, or state fair to
enjoy rides, concerts, agricultural and art exhibits, and fair food.
Fairs have become an annual tradition for families and bring thousands
of people together every year.
(2) The legislature finds that supporting Washington's fairs is
important for the state and local economy. The legislature further
finds that the current license that allows fairgoers to enjoy a variety
of alcoholic beverages at the fair does not take into consideration the
unique characteristics of a fair and was designed originally for sport
entertainment facilities. It is the intent of the legislature to
support Washington's fairs by creating a liquor license that is
specifically designed for fairs, meeting the needs of the fair while
providing safeguards for the public.
NEW SECTION. Sec. 2 A new section is added to chapter 66.24 RCW
to read as follows:
(1) A license is created to be designated as a fair license, which
is a special license to be issued to any fair organization that
sponsors a fair. A fair license permits the licensee to:
(a) Sell beer, wine, and spirits at retail to be consumed on the
premises;
(b) Sell beer from domestic breweries and microbreweries, wine from
domestic wineries, and spirits from craft distilleries, at retail in
bottles, cans, and original containers for consumption off the
premises. Beer may also be sold in containers brought to the premises
by the purchaser and filled at the tap at the time of sale for
consumption off the premises. Domestic breweries, microbreweries,
domestic wineries, and craft distilleries must have an endorsement from
the board to sell its products at retail for off-premises consumption
at a fair;
(c) Provide, free or for a charge, single-serving samples of beer
and wine from domestic breweries, microbreweries, and domestic
wineries, and spirits from craft distilleries, in sample sizes of two
ounces or less to customers for the purpose of sales promotion.
Sampling activities of licensees under this section are subject to RCW
66.28.305 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.
(2) For the purposes of this section:
(a) "Fair" means an agricultural fair as defined in RCW 15.76.110.
(b) "Fair organization" means an organization that holds at least
one temporary fair each year that is open to the public, requires a
fee, ticket, or other consideration or permission for entrance, and is
held at a fixed location within an enclosed area of land. The enclosed
area of land does not have to be exclusively used for fairs.
(3) The cost of the license is two thousand five hundred dollars
per annum.
(4)(a) To receive a license, a fair organization must submit an
operating plan for board approval.
(b) Once approved, the plan remains in effect until the licensee
requests a change or the board determines that a change is necessary
due to demonstrated problems or conditions not previously considered or
adequately addressed in the original plan.
(c) The plan must be submitted in a format designated by the board.
(d) The plan must contain, at a minimum, the following elements:
(i) How the fair organization will prevent the sale and service of
alcohol to persons under twenty-one years of age and those who appear
to be intoxicated;
(ii) The ratio of alcohol service staff and security staff to the
number of patrons expected to attend the fair;
(iii) Training provided to staff who serve, regulate, or supervise
the service of alcohol;
(iv) The fair organization's policy on the number of alcoholic
beverages that will be served to an individual patron during one
transaction; and
(v) A list of events to be held on fairgrounds during the fair at
which alcohol service is planned.
(5) The board may impose reasonable requirements upon a licensee
under this section, including the locations where beverages sold for
on-premises consumption may be consumed and reasonable restrictions on
the amounts of sampling and location where sampling may occur. The
board must consider factors such as eating facilities, amenities
available on the fairgrounds, and circulation patterns of patrons on
fairgrounds.
(6)(a) A licensee and an affiliated business may enter into
arrangements with a manufacturer, importer, or distributor for brand
advertising at the fair or promotion of events held at the fair. 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 66.28.305. 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 fair; 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.
(7) Vendors of the licensee that sell beer, wine, or spirits for
on-premise or off-premise consumption must be licensed by the board to
sell beer, wine, or spirits for on-premise or off-premise consumption.
If a vendor commits a violation of this title at the fair, the board
must impose the penalties prescribed for the violation on the specific
vendor committing the violation. If the board cannot determine the
specific vendor responsible for the violation, the board may impose the
penalties prescribed on the licensee.
(8) Nothing in this section precludes a fair organization from
applying for or being eligible to receive a sports entertainment
facility license under RCW 66.24.570 or any other license under this
title for which it is qualified.
Sec. 3 RCW 66.20.300 and 2013 c 237 s 2 and 2013 c 219 s 2 are
each reenacted and amended to read as follows:
The definitions in this section apply throughout RCW 66.20.310
through 66.20.350 unless the context clearly requires otherwise.
(1) "Alcohol" has the same meaning as "liquor" in RCW 66.04.010.
(2) "Alcohol server" means any person who as part of his or her
employment participates in the sale or service of alcoholic beverages
for on-premise consumption at a retail licensed premise as a regular
requirement of his or her employment, and includes those persons
eighteen years of age or older permitted by the liquor laws of this
state to serve alcoholic beverages with meals.
(3) "Board" means the Washington state liquor control board.
(4) "Retail licensed premises" means any:
(a) Premises licensed to sell alcohol by the glass or by the drink,
or in original containers primarily for consumption on the premises as
authorized by this section and RCW 66.20.310, 66.24.320, 66.24.330,
66.24.350, 66.24.400, 66.24.425, 66.24.450, 66.24.570, 66.24.610,
66.24.650, ((and)) 66.24.655, and section 2 of this act;
(b) Distillery licensed pursuant to RCW 66.24.140 that is
authorized to serve samples of its own production;
(c) Facility established by a domestic winery for serving and
selling wine pursuant to RCW 66.24.170(4); and
(d) Grocery store licensed under RCW 66.24.360, but only with
respect to employees whose duties include serving during tasting
activities under RCW 66.24.363.
(5) "Training entity" means any liquor licensee associations,
independent contractors, private persons, and private or public
schools, that have been certified by the board.
Sec. 4 RCW 66.20.310 and 2013 c 237 s 3 and 2013 c 219 s 3 are
each reenacted and amended to read as follows:
(1)(a) There is an alcohol server permit, known as a class 12
permit, for a manager or bartender selling or mixing alcohol, spirits,
wines, or beer for consumption at an on-premises licensed facility.
(b) There is an alcohol server permit, known as a class 13 permit,
for a person who only serves alcohol, spirits, wines, or beer for
consumption at an on-premises licensed facility.
(c) As provided by rule by the board, a class 13 permit holder may
be allowed to act as a bartender without holding a class 12 permit.
(2)(a) Effective January 1, 1997, except as provided in (d) of this
subsection, every alcohol server employed, under contract or otherwise,
at a retail licensed premise must be issued a class 12 or class 13
permit.
(b) Every class 12 and class 13 permit issued must be issued in the
name of the applicant and no other person may use the permit of another
permit holder. The holder must present the permit upon request to
inspection by a representative of the board or a peace officer. The
class 12 or class 13 permit is valid for employment at any retail
licensed premises described in (a) of this subsection.
(c) Except as provided in (d) of this subsection, no licensee
holding a license as authorized by this section and RCW 66.20.300,
66.24.320, 66.24.330, 66.24.350, 66.24.400, 66.24.425, 66.24.450,
66.24.570, 66.24.600, 66.24.610, 66.24.650, ((and)) 66.24.655, and
section 2 of this act may employ or accept the services of any person
without the person first having a valid class 12 or class 13 permit.
(d) Within sixty days of initial employment, every person whose
duties include the compounding, sale, service, or handling of liquor
must have a class 12 or class 13 permit.
(e) No person may perform duties that include the sale or service
of alcoholic beverages on a retail licensed premises without possessing
a valid alcohol server permit.
(3) A permit issued by a training entity under this section is
valid for employment at any retail licensed premises described in
subsection (2)(a) of this section for a period of five years unless
suspended by the board.
(4) The board may suspend or revoke an existing permit if any of
the following occur:
(a) The applicant or permittee has been convicted of violating any
of the state or local intoxicating liquor laws of this state or has
been convicted at any time of a felony; or
(b) The permittee has performed or permitted any act that
constitutes a violation of this title or of any rule of the board.
(5) The suspension or revocation of a permit under this section
does not relieve a licensee from responsibility for any act of the
employee or agent while employed upon the retail licensed premises.
The board may, as appropriate, revoke or suspend either the permit of
the employee who committed the violation or the license of the licensee
upon whose premises the violation occurred, or both the permit and the
license.
(6)(a) After January 1, 1997, it is a violation of this title for
any retail licensee or agent of a retail licensee as described in
subsection (2)(a) of this section to employ in the sale or service of
alcoholic beverages, any person who does not have a valid alcohol
server permit or whose permit has been revoked, suspended, or denied.
(b) It is a violation of this title for a person whose alcohol
server permit has been denied, suspended, or revoked to accept
employment in the sale or service of alcoholic beverages.
(7) Grocery stores licensed under RCW 66.24.360, the primary
commercial activity of which is the sale of grocery products and for
which the sale and service of beer and wine for on-premises consumption
with food is incidental to the primary business, and employees of such
establishments, are exempt from RCW 66.20.300 through 66.20.350, except
for employees whose duties include serving during tasting activities
under RCW 66.24.363.
Sec. 5 RCW 66.24.170 and 2013 c 238 s 2 are each amended to read
as follows:
(1) There shall be a license for domestic wineries; fee to be
computed only on the liters manufactured: Less than two hundred fifty
thousand liters per year, one hundred dollars per year; and two hundred
fifty thousand liters or more per year, four hundred dollars per year.
(2) The license allows for the manufacture of wine in Washington
state from grapes or other agricultural products.
(3) Any domestic winery licensed under this section may also act as
a retailer of wine of its own production. Any domestic winery licensed
under this section may act as a distributor of its own production.
Notwithstanding any language in this title to the contrary, a domestic
winery may use a common carrier to deliver up to one hundred cases of
its own production, in the aggregate, per month to licensed Washington
retailers. A domestic winery may not arrange for any such common
carrier shipments to licensed retailers of wine not of its own
production. Except as provided in this section, any winery operating
as a distributor and/or retailer under this subsection shall comply
with the applicable laws and rules relating to distributors and/or
retailers, except that a winery operating as a distributor may maintain
a warehouse off the premises of the winery for the distribution of wine
of its own production provided that: (a) The warehouse has been
approved by the board under RCW 66.24.010; and (b) the number of
warehouses off the premises of the winery does not exceed one.
(4) A domestic winery licensed under this section, at locations
separate from any of its production or manufacturing sites, may serve
samples of its own products, with or without charge, and sell wine of
its own production at retail, provided that: (a) Each additional
location has been approved by the board under RCW 66.24.010; (b) the
total number of additional locations does not exceed two; (c) a winery
may not act as a distributor at any such additional location; and (d)
any person selling or serving wine at an additional location for on-premise consumption must obtain a class 12 or class 13 alcohol server
permit. Each additional location is deemed to be part of the winery
license for the purpose of this title. At additional locations
operated by multiple wineries under this section, if the board cannot
connect a violation of RCW 66.44.200 or 66.44.270 to a single licensee,
the board may hold all licensees operating the additional location
jointly liable. Nothing in this subsection shall be construed to
prevent a domestic winery from holding multiple domestic winery
licenses.
(5)(a) A domestic winery licensed under this section may apply to
the board for an endorsement to sell wine of its own production at
retail for off-premises consumption at a qualifying farmers market or
fair. The annual fee for this endorsement is seventy-five dollars. An
endorsement issued pursuant to this subsection does not count toward
the two additional retail locations limit specified in this section.
(b) For each month during which a domestic winery will sell wine at
a qualifying farmers market or fair, the winery must provide the board
or its designee a list of the dates, times, and locations at which
bottled wine may be offered for sale. This list must be received by
the board before the winery may offer wine for sale at a qualifying
farmers market or fair.
(c) The wine sold at qualifying farmers markets or fairs must be
made entirely from grapes grown in a recognized Washington appellation
or from other agricultural products grown in this state.
(d) Each approved location in a qualifying farmers market or fair
is deemed to be part of the winery license for the purpose of this
title. The approved locations under an endorsement granted under this
subsection include tasting or sampling privileges subject to the
conditions pursuant to RCW 66.24.175. The winery may not store wine at
a farmers market or fair beyond the hours that the winery offers
bottled wine for sale. The winery may not act as a distributor from a
farmers market or fair location.
(e) Before a winery may sell bottled wine at a qualifying farmers
market or fair, the farmers market or fair organization must apply to
the board for authorization for any winery with an endorsement approved
under this subsection to sell bottled wine at retail at the farmers
market or fair. This application shall include, at a minimum: (i) A
map of the farmers market or fair showing all booths, stalls, or other
designated locations at which an approved winery may sell bottled wine;
and (ii) the name and contact information for the on-site market
managers or fair organization managers who may be contacted by the
board or its designee to verify the locations at which bottled wine may
be sold. Before authorizing a qualifying farmers market or fair to
allow an approved winery to sell bottled wine at retail at its farmers
market or fair 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.
(v) "Fair" and "fair organization" have the same meaning as used in
section 2 of this act.
(6) Wine produced in Washington state by a domestic winery licensee
may be shipped out-of-state for the purpose of making it into sparkling
wine and then returned to such licensee for resale. Such wine shall be
deemed wine manufactured in the state of Washington for the purposes of
RCW 66.24.206, and shall not require a special license.
Sec. 6 RCW 66.24.240 and 2011 c 195 s 6 and 2011 c 119 s 212 are
each reenacted and 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(7), 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) Any domestic brewery licensed under this section may also sell
beer produced by another domestic brewery or a microbrewery for on and
off-premises consumption from its premises as long as the other
breweries' brands do not exceed twenty-five percent of the domestic
brewery's on-tap offering of its own brands.
(4) 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.
(5) Any domestic brewery licensed under this section may contract-
produce beer for a brand owner of malt beverages defined under RCW
66.04.010(7), and this contract-production is not a sale for the
purposes of RCW 66.28.170 and 66.28.180.
(6)(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 or fair. 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 or fair, 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 or fair.
(c) The beer sold at qualifying farmers markets or fairs must be
produced in Washington.
(d) Each approved location in a qualifying farmers market or fair
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 or fair 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 or fair location.
(e) Before a domestic brewery may sell bottled beer at a qualifying
farmers market or fair, the farmers market or fair organization 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 or fair. This application shall include,
at a minimum: (i) A map of the farmers market or fair 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 or fair organization
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 or fair organization to allow an approved
domestic brewery to sell bottled beer at retail at its farmers market
or fair 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 (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 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.
(v) "Fair" and "fair organization" have the same meaning as used in
section 2 of this act.
Sec. 7 RCW 66.24.244 and 2013 c 238 s 3 are each amended to read
as follows:
(1) There shall be a license for microbreweries; fee to be one
hundred dollars for production of less than sixty thousand barrels of
malt liquor, including strong beer, per year.
(2) Any microbrewery licensed under this section may also act as a
distributor and/or retailer for beer and strong beer of its own
production. Strong beer may not be sold at a farmers market or fair or
under any endorsement which may authorize microbreweries to sell beer
at farmers markets or fairs. Any microbrewery operating as a
distributor and/or retailer under this subsection shall comply with the
applicable laws and rules relating to distributors and/or retailers,
except that a microbrewery operating as a distributor may maintain a
warehouse off the premises of the microbrewery for the distribution of
beer provided that (a) the warehouse has been approved by the board
under RCW 66.24.010 and (b) the number of warehouses off the premises
of the microbrewery does not exceed one. A microbrewery 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) Any microbrewery licensed under this section may also sell beer
produced by another microbrewery or a domestic brewery for on and off-premises consumption from its premises as long as the other breweries'
brands do not exceed twenty-five percent of the microbrewery's on-tap
offering of its own brands.
(4) The board may issue up to two retail licenses allowing a
microbrewery to operate an on or off-premise tavern, beer and/or wine
restaurant, or spirits, beer, and wine restaurant.
(5) A microbrewery that holds a tavern license, 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.
(6)(a) A microbrewery licensed under this section 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 or
fair. The annual fee for this endorsement is seventy-five dollars.
(b) For each month during which a microbrewery will sell beer at a
qualifying farmers market or fair, the microbrewery 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 microbrewery may offer beer for sale at a
qualifying farmers market or fair.
(c) Any person selling or serving beer must obtain a class 12 or
class 13 alcohol server permit.
(d) The beer sold at qualifying farmers markets or fairs must be
produced in Washington.
(e) Each approved location in a qualifying farmers market or fair
is deemed to be part of the microbrewery license for the purpose of
this title. The approved locations under an endorsement granted under
this subsection (6) include tasting or sampling privileges subject to
the conditions pursuant to RCW 66.24.175. The microbrewery may not
store beer at a farmers market or fair beyond the hours that the
microbrewery offers bottled beer for sale. The microbrewery may not
act as a distributor from a farmers market or fair location.
(f) Before a microbrewery may sell bottled beer at a qualifying
farmers market or fair, the farmers market or fair organization must
apply to the board for authorization for any microbrewery with an
endorsement approved under this subsection (6) to sell bottled beer at
retail at the farmers market or fair. This application shall include,
at a minimum: (i) A map of the farmers market or fair showing all
booths, stalls, or other designated locations at which an approved
microbrewery may sell bottled beer; and (ii) the name and contact
information for the on-site market managers or fair organization
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 or fair organization to allow an approved
microbrewery to sell bottled beer at retail at its farmers market or
fair 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)(f) may be withdrawn
by the board for any violation of this title or any rules adopted under
this title.
(g) The board may adopt rules establishing the application and
approval process under this section and any additional rules necessary
to implement this section.
(h) 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.
(v) "Fair" and "fair organization" have the same meaning as used in
section 2 of this act.
(7) Any microbrewery licensed under this section may
contract-produce beer for another microbrewer. This contract-production is not a sale for the purposes of RCW 66.28.170 and
66.28.180.
Sec. 8 RCW 66.24.145 and 2013 c 98 s 1 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 three liters per person per day.
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 distilled 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.
(4) The board must 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 this section may apply to
the board for an endorsement to sell bottled spirits of its own
production at retail for off-premises consumption at a fair. The
annual fee for this endorsement is seventy-five dollars.
(b) For each month during which a craft distillery will sell
bottled spirits at a fair, 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 distillery may offer bottled spirits for sale at
a fair.
(c) The bottled spirits sold at a fair must be produced in
Washington.
(d) Before a craft distillery may sell spirits at a fair, the fair
organization must apply to the board for authorization for any craft
distillery with an endorsement approved under this subsection to sell
bottled spirits at retail at the fair. This application shall include,
at a minimum: (i) A map of the fair 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 fair organization 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 fair organization to allow an approved craft
distillery to sell bottled spirits at retail at its fair 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 may be withdrawn by the board for any
violation of this title or any rules adopted under this title.
(e) 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.
(f) For the purposes of this subsection, "fair" and "fair
organization" have the same meaning as used in section 2 of this act.