SENATE BILL REPORT

SB 6578

BYSenators Lee, Vognild and Warnke

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

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 29, 1988

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Patrick Woods (786-7430)

                  February 16, 1988

AS PASSED SENATE, FEBRUARY 15, 1988

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  Existing provisions pertaining to normal commercial practices are repealed.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 22, 1988

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

Senate Committee - Testified: Jan Gee, Washington Retail Association (pro); Steve Pake, Brown & Cole (pro); Mark Tobin, Safeway (pro); Dick Ducharme, Washington Beer & Wine Wholesalers Association (pro); Carter Mitchell, Liquor Board (pro)