H-2359.1

HOUSE BILL 2163

ByRepresentative Steele

AN ACT Relating to advertising by liquor licensees who currently have privileges to conduct tastings or provide free or complimentary amounts of beer, wine, spirits, or other liquor; amending RCW 66.20.400, 66.24.175, 66.24.363, and 66.24.590; and adding a new section to chapter 66.28 RCW.

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

NEW SECTION.  Sec. 1. A new section is added to chapter 66.28 RCW to read as follows:

(1) A licensee under chapter 66.24 RCW or a permit holder under chapter 66.20 RCW identified in subsection (3) of this section who is authorized by this title or board rule to offer free tastings or samples of beer, wine, spirits, or other liquor without charge to the public, or to provide complimentary beer, wine, spirits, or other liquor to customers or guests, may advertise to the public that, as applicable, the licensee offers tastings or sampling for free without charge, or provides complimentary beer, wine, spirits, or other liquor to customers or guests.

(2) Advertising authorized in this section may not be targeted to or appeal principally to youth.

(3) This section is intended to apply to the following licensees:

(a) Domestic breweries licensed under RCW 66.24.240;

(b) Microbreweries licensed under RCW 66.24.244;

(c) Domestic wineries licensed under RCW 66.24.170;

(d) Distilleries and craft distilleries licensed under RCW 66.24.140 or 66.24.145 and their tasting rooms licensed under RCW 66.24.146;

(e) Grocery stores licensed under RCW 66.24.360 who hold a tasting endorsement issued under RCW 66.24.363;

(f) Beer and/or wine specialty shops licensed under RCW 66.24.371;

(g) Spirits retailers licensed under RCW 66.24.630 who participate in the responsible vendor program and are authorized to conduct sampling under RCW 66.24.670;

(h) Combination spirits, beer, and wine license holders licensed under RCW 66.24.035 who hold a grocery store tasting endorsement under RCW 66.24.363 or who participate in the responsible vendor program;

(i) All liquor licensees authorized to serve beer on tap or wine for consumption on the premises and who, pursuant to RCW 66.24.675, may provide samples of beer or wine free of charge for consumption on the premises;

(j) Interstate common carriers licensed under RCW 66.24.395;

(k) Hotels licensed under RCW 66.24.590;

(l) Motels licensed under RCW 66.24.540;

(m) Day spas with a permit under RCW 66.20.400;

(n) Bed and breakfast lodging facilities with a permit under RCW 66.20.010(11); and

(o) Short-term rental operators with a permit under RCW 66.20.010(18).

(4) Nothing in this section is intended to:

(a) Affect or alter any time, place, or manner restriction that applies generally to all liquor advertising and that is imposed by the board in rule;

(b) Authorize a liquor licensee or liquor permit holder to offer, serve, or provide a type or amount of beer, wine, spirits, or other liquor for free without charge that the licensee is not authorized on the effective date of this section to offer, serve, or provide to a person for free without charge;

(c) Restrict any advertising that is expressly authorized in this title as it existed on January 1, 2024; or

(d) Expand or alter any license privilege or restriction related to conducting tastings or offering or providing free samples or complimentary beer, wine, spirits, or other liquor, except to authorize additional advertising by a licensee of a privilege that the licensee currently holds, as provided in subsection (1) of this section.

Sec. 2. RCW 66.20.400 and 2014 c 199 s 1 are each amended to read as follows:

(1) There shall be a permit known as a day spa permit to allow the holder to offer or supply, without charge, wine or beer by the individual glass to a customer for consumption on the premises. The customer must be at least ((twenty-one))21 years of age and may only be offered wine or beer if the services he or she will be receiving will last more than one hour. Wine or beer served or consumed shall be purchased from a Washington state licensed retailer. A customer may consume no more than one six ounce glass of wine or one ((twelve))12 ounce glass of beer per day under this permit. Day spas with a day spa permit may not ((advertise the service of complimentary wine or beer and may not)) sell wine or beer in any manner. Any employee involved in the service of wine or beer must complete a board-approved limited alcohol server training program.

(2) For the purposes of this section, "day spa" means a business that offers at least three of the following four service categories:

(a) Hair care;

(b) Skin care;

(c) Nail care; and

(d) Body care, such as massages, wraps, and waxing.

Day spas must provide separate service areas of the day spa for at least three of the service categories offered.

(3) The annual fee for this permit is ((one hundred twenty-five dollars))$125.

Sec. 3. RCW 66.24.175 and 2014 c 105 s 2 are each amended to read as follows:

(1) A qualifying farmers market authorized to allow wineries to sell bottled wine at retail under RCW 66.24.170 or microbreweries to sell bottled beer at retail under RCW 66.24.244, or both, may apply to the ((liquor control)) board for an endorsement to allow sampling of wine or beer or both. A winery or microbrewery offering samples under this section must have an endorsement from the board to sell wine or beer, as the case may be, of its own production at a qualifying farmers market under RCW 66.24.170 or 66.24.244, respectively.

(2) Samples may be offered only under the following conditions:

(a) No more than three wineries or microbreweries combined may offer samples at a qualifying farmers market per day.

(b) Samples must be two ounces or less. A winery or microbrewery may provide a maximum of two ounces of wine or beer to a customer per day.

(c) ((A winery or microbrewery may advertise that it offers samples only at its designated booth, stall, or other designated location at the farmers market.

(d))) Customers must remain at the designated booth, stall, or other designated location while sampling beer or wine.

(((e)))(d) Winery and microbrewery licensees and employees who are involved in sampling activities under this section must hold a class 12 or class 13 alcohol server permit.

(((f)))(e) A winery or microbrewery must have food available for customers to consume while sampling beer or wine, or must be adjacent to a vendor offering prepared food.

(3) The board may establish additional requirements to ensure that persons under ((twenty-one))21 years of age and apparently intoxicated persons may not possess or consume alcohol under the authority granted in this section.

(4) The board may prohibit sampling at a farmers market that is within the boundaries of an alcohol impact area recognized by resolution of the board if the board finds that the sampling activities at the farmers market have an adverse effect on the reduction of chronic public inebriation in the area.

(5) If a winery or microbrewery is found to have committed a public safety violation in conjunction with tasting activities, the board may suspend the licensee's farmers market endorsement and not reissue the endorsement for up to two years from the date of the violation. If mitigating circumstances exist, the board may offer a monetary penalty in lieu of suspension during a settlement conference.

(6) For the purposes of this section, a "qualifying farmers market" has the same meaning as defined in RCW 66.24.170.

Sec. 4. RCW 66.24.363 and 2017 c 96 s 5 are each amended to read as follows:

(1) A grocery store licensed under RCW 66.24.360 may apply for an endorsement to offer beer and wine tasting under this section.

(2) To be issued an endorsement, a licensee must meet the following criteria:

(a) The licensee operates a fully enclosed retail area encompassing at least ((ten thousand))10,000 square feet of fully enclosed retail space within a single structure, including storerooms and other interior auxiliary areas but excluding covered or fenced exterior areas, whether or not attached to the structure, except that the board may issue an endorsement to a licensee with a retail area encompassing less than ((ten thousand))10,000 square feet if the board determines that no licensee in the community the licensee serves meets the square footage requirement and the licensee meets operational requirements established by the board by rule; and

(b) The licensee has not had more than one public safety violation within the past two years.

(3) A tasting must be conducted under the following conditions:

(a) Each sample must be two ounces or less, up to a total of four ounces, per customer during any one visit to the premises;

(b) No more than one sample of the same product offering of beer or wine may be provided to a customer during any one visit to the premises;

(c) The licensee must have food available for the tasting participants;

(d) Customers must remain in the service area while consuming samples; and

(e) The service area and facilities must be located within the licensee's fully enclosed retail area and must be of a size and design such that the licensee can observe and control persons in the area to ensure that persons under ((twenty-one))21 years of age and apparently intoxicated persons cannot possess or consume alcohol.

(4) Employees of licensees whose duties include serving during tasting activities under this section must hold a class 12 alcohol server permit.

(5) Tasting activities under this section are subject to RCW 66.28.305 and 66.28.040 and the cost of sampling may not be borne, directly or indirectly, by any liquor manufacturer, importer, or distributor.

(6) ((A licensee may advertise a tasting event only within the store, on a store website, in store newsletters and flyers, and via email and mail to customers who have requested notice of events. Advertising under this subsection may not be targeted to or appeal principally to youth.

(7)))(a) If a licensee is found to have committed a public safety violation in conjunction with tasting activities, the board may suspend the licensee's tasting endorsement and not reissue the endorsement for up to two years from the date of the violation. If mitigating circumstances exist, the board may offer a monetary penalty in lieu of suspension during a settlement conference.

(b) The board may revoke an endorsement granted to a licensee that is located within the boundaries of an alcohol impact area recognized by resolution of the board if the board finds that the tasting activities by the licensee are having an adverse effect on the reduction of chronic public inebriation in the area.

(c) RCW 66.08.150 applies to the suspension or revocation of an endorsement.

(((8)))(7) The board may establish additional requirements under this section to assure that persons under ((twenty-one))21 years of age and apparently intoxicated persons cannot possess or consume alcohol.

(((9)))(8) The annual fee for the endorsement is ((two hundred dollars))$200. The board shall review the fee annually and may increase the fee by rule to a level sufficient to defray the cost of administration and enforcement of the endorsement, except that the board may not increase the fee by more than ((ten))10 percent annually.

(((10)))(9) The board must adopt rules to implement this section.

(((11)))(10) An endorsement issued pursuant to this section may be issued to a qualified combination spirits, beer, and wine licensee in accordance with RCW 66.24.035.

Sec. 5. RCW 66.24.590 and 2021 c 6 s 14 are each amended to read as follows:

(1) There is 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 must meet the requirements of rules adopted by the board.

(2) The hotel license authorizes the licensee to:

(a) Sell 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))50 milliliters, beer in individual units not to exceed ((twelve))12 ounces, and wine in individual bottles not to exceed ((three hundred eighty-five))385 milliliters, to registered guests of the hotel for consumption in guest rooms. The licensee must require proof of age from the guest renting a guest room and requesting the use of an honor bar. The guest must also execute an affidavit verifying that no one under ((twenty-one))21 years of age will 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, spirits, 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;

(h) Place in guest rooms at check-in, a complimentary bottle of liquor 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 must be separately owned and stored by the separate licensees.

(4) All spirits to be sold under this license must be purchased from a spirits retailer or spirits distributor licensee of the board.

(5) All on-premises 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 must, 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 must 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, brewery, or distillery 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))21 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 liquor 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 liquor 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 persons of lawful age to purchase liquor.

(9)(((a))) The annual fee for this license is ((two thousand dollars))$2,000.

(((b) The annual fee in (a) of this subsection is waived during the 12-month period beginning with the second calendar month after February 28, 2021, for:

(d) Upon request of the department of revenue, the board and the department of labor and industries must both provide a list of persons that they have determined to be ineligible for a fee waiver under (b) of this subsection for the reasons described in (c) of this subsection. Unless otherwise agreed, any list must be received by the department of revenue no later than 15 calendar days after the request is made.))

(10) As used in this section, "hotel," "spirits," "beer," and "wine" have the meanings defined in RCW 66.24.410 and 66.04.010.

--- END ---