FINAL BILL REPORT

SB 6578

                                   C 50 L 88

BYSenators Lee, Vognild and Warnke

Permitting certain sales of nonliquor food products by licensed wine and beer wholesalers.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Prior to 1987, licensed liquor manufacturers and wholesalers were not permitted to extend credit to licensed liquor retailers.  This limitation on extension of credit pertained to the sale of liquor and nonliquor products.  During 1987, legislation was enacted that permitted the Liquor Control Board to establish, by rule, procedures for the sale of nonliquor products by licensed manufacturers and wholesalers in accordance with normal commercial practices.  However, the limitation on the use of normal commercial practices was maintained for bottled water and carbonated beverages.

SUMMARY:

Licensed liquor wholesalers are permitted to sell nonliquor food products including bottled water and carbonated beverages on 30-day credit terms to retailers, provided complete and separate accounting records are maintained.  Existing provisions pertaining to normal commercial practices are repealed.

VOTES ON FINAL PASSAGE:

      Senate    47     2

      House 93   0

EFFECTIVE:March 15, 1988