Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Commerce & Gaming Committee

HB 1165

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Modifying theater license provisions.

Sponsors: Representatives Sawyer, Young, Condotta, Vick, Blake and Kirby.

Brief Summary of Bill

  • Revises the criteria for the issuance of a spirits, beer, and wine theater license by eliminating two requirements: (1) that the theater have no more than 120 seats per screen; and (2) that the theater have tabletop accommodations for in-theater dining.

Hearing Date: 1/19/17

Staff: Thamas Osborn (786-7129).

Background:

A theater meeting specified criteria is authorized to obtain a license allowing the theater to sell spirits, beer, and wine at retail for on-premise consumption. "Theater" means a place of business where motion pictures or other primarily non-participatory entertainment are shown.

To be eligible for a spirits, beer, and wine theater license, the theater must not have more than 120 seats per screen and must prepare, cook and serve complete meals and provide tabletop accommodations for in-theater dining. The requirements for complete meals are the same as the requirements that apply to spirits, beer, and wine restaurants. The annual fee for the license is $2,000.

If minors are allowed in the theater, the theater must submit an alcohol control plan to the Liquor and Cannabis Board (LCB) for approval. The alcohol control plan is a written, dated, and signed plan showing where and when alcohol is permitted, where and when minors are permitted, and the control measures used to ensure minors are not exposed to environments where drinking alcohol predominates. The LCB must adopt rules regarding alcohol control plans. Any person serving alcohol must have completed a mandatory alcohol server training program.

The maximum fines and suspensions for violations involving minors or failure to follow an alcohol control plan are doubled for theaters. Therefore, a first violation is a 10-day license suspension or $1,000 monetary penalty.

With certain limitations, a theater licensee that is a federally designated nonprofit exempt from taxation under 26 U.S.C. 501(c)(3) may enter arrangements with a beer, wine, or spirits manufacturer, importer, or distributor for brand advertising at the theater or promotion of events held at the theater. The arrangement may not result in the exclusion of brands or products of other companies. Such agreements are subject to specified auditing procedures to be conducted by the LCB.

Summary of Bill:

The criteria for the issuance of a spirits, beer, and wine theater license are revised by eliminating two requirements: (1) that the theater have no more than 120 seats per screen; and (2) that the theater have tabletop accommodations for in-theater dining.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.