SENATE BILL REPORT

SB 5319

BYSenators Vognild, Lee, Warnke, Smitherman, Sellar, Hayner, Owen and Cantu

Authorizing limited credit sales of certain nonliquor food products by wine and beer wholesalers.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 16, 1987; February 20, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Cantu, Lee, Sellar, Vognild.

Senate Staff:Patrick Woods (786-7430)

                  March 16, 1987

AS PASSED SENATE, MARCH 13, 1987

BACKGROUND:

Currently, licensed beer and wine wholesalers are not permitted to extend credit to licensed liquor retailers.  The limitation on the extension of credit pertains to both liquor and nonliquor products.

The definition of "food products" under the Retail Sales Act (RCW 82.08) specifically excludes carbonated beverages and liquor.

SUMMARY:

Licensed beer and wine wholesalers are permitted to extend up to 30 days credit to licensed liquor retailers on "nonliquor food products".

"Nonliquor food products" are defined as those products for human consumption which are not subject to the state retail sales tax.

Fiscal Note:      none requested

Effective Date:This bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Bill Fritz, Anheuser-Busch Companies; Dan LeVine, K & L Beverages; Carter Mitchell, Liquor Control Board; Steve Wehrly, Miller Brewing; Dick Ducharme, Beer and Wine Wholesalers