H-1483              _______________________________________________

 

                                                   HOUSE BILL NO. 1068

                        _______________________________________________

 

State of Washington                              50th Legislature                              1987 Regular Session

 

By Representatives Sanders, Chandler, Patrick, Padden, C. Smith, Moyer, J. Williams, Beck, Ferguson, Barnes, B. Williams, Holland, S. Wilson, Schmidt, Amondson and Bumgarner

 

 

Read first time 2/23/87 and referred to Committee on Commerce & Labor.

 

 


AN ACT Relating to alcoholic beverages; amending RCW 66.08.026, 66.08.030, 66.28.060, 66.12.110, 66.12.120, 66.24.185, 66.44.340, 66.08.060, 66.08.180, and 82.08.150; adding new sections to chapter 66.08 RCW; adding a new section to chapter 66.16 RCW; adding new sections to chapter 66.24 RCW; adding a new section to chapter 66.28 RCW; adding a new section to chapter 66.44 RCW; creating new sections; repealing RCW 66.08.012, 66.08.014, 66.08.050, 66.08.070, 66.08.160, 66.16.010, 66.16.030, 66.16.040, 66.16.050, 66.16.060, 66.16.070, 66.16.080, 66.16.090, and 66.24.440; and providing effective dates.

 

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

 

          NEW SECTION.  Sec. 1.     The state of Washington has the unenviable distinction of having the highest liquor prices in the nation and continues to govern and control liquor sales with a postprohibition policy and philosophy.  The state liquor monopoly results in ever increasing reliance upon liquor revenues to the state to the unfair detriment of its citizen consumers and frustrates the benefits that could be realized from a free enterprise system.  The purpose and intent of this act is to provide for the orderly transition and conversion of the state liquor monopoly of the retail liquor business to private persons, firms, and corporations, under reasonable regulation by the state of Washington.  In addition, this act will provide for retail sale of private label liquor and encourages wholesale and retail quantity discounts.

 

          NEW SECTION.  Sec. 2.  A new section is added to chapter 66.16 RCW to read as follows:

          After September 15, 1989, the state of Washington is prohibited from operating state liquor stores, state liquor vendors, or wholesale operations for any purpose.  After September 15, 1989, the retail and wholesale sale of liquor in all forms is vested in private persons, firms, and corporations licensed under this title.

 

          NEW SECTION.  Sec. 3.  A new section is added to chapter 66.24 RCW to read as follows:

          There shall be a retailer's license, to be known as a class N license, to sell spirits and strong beer in unopened bottles and original packages, not to be consumed on the premises where sold.  Class N licenses may be issued to only grocery retailers qualified under section 6(6) of this act.  Grocery retailers qualified under section 6(6) of this act and having the qualifications to hold class E and class F licenses are entitled to be issued a class N license on payment of the class N annual license fee.  The annual fee for a class N license is five hundred dollars for each location.  Class N licenses are renewable annually.

 

          NEW SECTION.  Sec. 4.  A new section is added to chapter 66.24 RCW to read as follows:

          Retail sales of liquor under a class N license may begin on March 15, 1988.  The board shall process the initial applications and issue the licenses in sufficient time so as to permit retail sales by class N licensees to commence on March 15, 1988.

 

          NEW SECTION.  Sec. 5.  A new section is added to chapter 66.24 RCW to read as follows:

          Liquor purchased by class N licensees shall be transported to their establishments by an authorized and licensed wholesaler.

 

          NEW SECTION.  Sec. 6.  A new section is added to chapter 66.24 RCW to read as follows:

          The following requirements apply to all class N licensees:

          (1)  All liquor shall be sold by a class N licensee for cash or check only.

          (2)  All liquor sold or delivered must be from the stock carried on the class N licensed premises.

          (3)  No licensee may deliver liquor from the licensed premises unless the purchaser has ordered and paid for the liquor in person at the licensed premises.

          (4)  No delivery or sale may be made by a licensee to a person under twenty-one years of age.  In addition to any other penalties imposed by law, a person under twenty-one years of age who is convicted of purchasing liquor in violation of this title shall be fined five hundred dollars for the first offense.

          (5)  No licensee may use or allow the use of any bottle or container other than the original bottle or container in which the liquor was purchased, nor allow the use of any mark or label which does not clearly and truthfully represent the contents of the bottle or container.

          (6)  A class N licensee must be a bona fide grocery retailer having total retail sales of all grocery merchandise of not less than two hundred fifty thousand dollars per annum, of which gross grocery sales not more than twenty-five percent shall consist of the sales of spirits.

 

          NEW SECTION.  Sec. 7.  A new section is added to chapter 66.24 RCW to read as follows:

          The hours during which retail licensees may sell at retail, furnish, or transfer possession of any liquor, including beer, strong beer, and wine, authorized under the terms of their licenses, shall be uniform.

 

          NEW SECTION.  Sec. 8.  A new section is added to chapter 66.24 RCW to read as follows:

          (1)  A liquor importing license shall be issued to any qualified person, firm, or corporation entitling the holder thereof to import into the state any liquor other than beer and wine, to store the same within the state, and to sell the same to licensed wholesalers and licensed retailers of liquor within or without the state and export the same from the state.  The fee shall be two thousand five hundred dollars per annum.

          (2)  A liquor wholesaler's license shall be issued to any qualified person, firm, or corporation entitling the holder thereof to sell liquor, other than beer and wine, manufactured within or without the state to licensed wholesalers and licensed retailers of liquor within or without the state and to export the same from the state.  The fee shall be two thousand five hundred dollars for each distributing unit.  A holder of a wine wholesaler's license or a beer wholesaler's license on the effective date of this section is entitled to receive, upon application, a liquor wholesaler's license under this subsection.  All sales by liquor wholesalers shall be by check or cash.

          (3)  No retail or wholesale grocer may act or hold a license as an importer or wholesaler of spirituous liquor.

 

        Sec. 9.  Section 4, chapter 6, Laws of 1961 ex. sess. as last amended by section 2, chapter 160, Laws of 1983 and RCW 66.08.026 are each amended to read as follows:

          All administrative expenses of the board incurred on and after April 1, 1963 shall be appropriated and paid from the liquor revolving fund.  These administrative expenses shall include, but not be limited to:  The salaries and expenses of the board and its employees, ((the cost of establishing, leasing, maintaining, and operating state liquor stores and warehouses,)) legal services, annual or other audits, and other general costs of conducting the business of the board.  The administrative expenses shall not, however, be deemed to include costs of ((liquor and)) lottery tickets purchased, ((the cost of transportation and delivery to the point of distribution, other costs pertaining to the acquisition and receipt of liquor and lottery tickets, packaging and repackaging of liquor,)) sales tax, and those amounts distributed pursuant to RCW 66.08.180, 66.08.190, 66.08.200, 66.08.210 and 66.08.220.

 

        Sec. 10.  Section 79, chapter 62, Laws of 1933 ex. sess. as last amended by section 1, chapter 115, Laws of 1977 ex. sess. and RCW 66.08.030 are each amended to read as follows:

          (1) For the purpose of carrying into effect the provisions of this title according to their true intent or of supplying any deficiency therein, the board may make such regulations not inconsistent with the spirit of this title as are deemed necessary or advisable.  All regulations so made shall be a public record and shall be filed in the office of the code reviser, and thereupon shall have the same force and effect as if incorporated in this title.  Such regulations, together with a copy of this title, shall be published in pamphlets and shall be distributed as directed by the board.

          (2) Without thereby limiting the generality of the provisions contained in subsection (1), it is declared that the power of the board to make regulations in the manner set out in that subsection shall extend to

          (a) ((regulating the equipment and management of stores and warehouses in which state liquor is sold or kept, and prescribing the books and records to be kept therein and the reports to be made thereon to the board;

          (b))) Prescribing the duties of the employees of the board, and regulating their conduct in the discharge of their duties;

          (((c) governing the purchase of liquor by the state and the furnishing of liquor to stores established under this title;

          (d) determining the classes, varieties, and brands of liquor to be kept for sale at any store;

          (e) prescribing, subject to RCW 66.16.080, the hours during which the state liquor stores shall be kept open for the sale of liquor;

          (f) providing for the issuing and distributing of price lists showing the price to be paid by purchasers for each variety of liquor kept for sale under this title;

          (g))) (b) Prescribing an official seal and official labels and stamps and determining the manner in which they shall be attached to every package of liquor sold or sealed under this title, including the prescribing of different official seals or different official labels for different classes of liquor;

          (((h) providing for the payment by the board in whole or in part of the carrying charges on liquor shipped by freight or express;

          (i))) (c) Prescribing forms to be used for purposes of this title or the regulations, and the terms and conditions to be contained in permits and licenses issued under this title;

          (((j))) (d) Prescribing the fees payable in respect of permits and licenses issued under this title for which no fees are prescribed in this title, and prescribing the fees for anything done or permitted to be done under the regulations;

          (((k))) (e) Prescribing the kinds and quantities of liquor which may be kept on hand by the holder of a special permit for the purposes named in the permit, regulating the manner in which the same shall be kept and disposed of, and providing for the inspection of the same at any time at the instance of the board;

          (((l))) (f) Regulating the sale of liquor kept by the holders of licenses which entitle the holder to purchase and keep liquor for sale;

          (((m))) (g) Prescribing the records of purchases or sales of liquor kept by the holders of licenses, and the reports to be made thereon to the board, and providing for inspection of the records so kept;

          (((n))) (h) Prescribing the kinds and quantities of liquor for which a prescription may be given, and the number of prescriptions which may be given to the same patient within a stated period;

          (((o))) (i) Prescribing the manner of giving and serving notices required by this title or the regulations, where not otherwise provided for in this title;

          (((p))) (j) Regulating premises in which liquor is kept for export from the state, or from which liquor is exported, prescribing the books and records to be kept therein and the reports to be made thereon to the board, and providing for the inspection of the premises and the books, records and the liquor so kept;

          (((q))) (k) Prescribing the conditions and qualifications requisite for the obtaining of club licenses and the books and records to be kept and the returns to be made by clubs, prescribing the manner of licensing clubs in any municipality or other locality, and providing for the inspection of clubs;

          (((r))) (l) Prescribing the conditions, accommodations and qualifications requisite for the obtaining of licenses to sell beer and wines, and regulating the sale of beer and wines thereunder;

          (((s))) (m) Specifying and regulating the time and periods when, and the manner, methods and means by which manufacturers shall deliver liquor within the state; and the time and periods when, and the manner, methods and means by which liquor may lawfully be conveyed or carried within the state;

          (((t))) (n) Providing for the making of returns by brewers of their sales of beer shipped within the state, or from the state, showing the gross amount of such sales and providing for the inspection of brewers' books and records, and for the checking of the accuracy of any such returns;

          (((u))) (o) Providing for the making of returns by the wholesalers of beer whose breweries are located beyond the boundaries of the state;

          (((v))) (p) Providing for the making of returns by any other liquor manufacturers, showing the gross amount of liquor produced or purchased, the amount sold within and exported from the state, and to whom so sold or exported, and providing for the inspection of the premises of any such liquor manufacturers, their books and records, and for the checking of any such return;

          (((w))) (q) Providing for the giving of fidelity bonds by any or all of the employees of the board:  PROVIDED, That the premiums therefor shall be paid by the board;

          (((x))) (r) Providing for the shipment by mail or common carrier of liquor to any person holding a permit and residing in any unit which has, by election pursuant to this title, prohibited the sale of liquor therein;

          (((y))) (s) Prescribing methods of manufacture, conditions of sanitation, standards of ingredients, quality and identity of alcoholic beverages manufactured, sold, bottled, or handled by licensees ((and the board)); and conducting from time to time, in the interest of the public health and general welfare, scientific studies and research relating to alcoholic beverages and the use and effect thereof;

          (((z))) (t) Seizing, confiscating and destroying all alcoholic beverages manufactured, sold or offered for sale within this state which do not conform in all respects to the standards prescribed by this title or the regulations of the board:  PROVIDED, Nothing herein contained shall be construed as authorizing the liquor board to prescribe, alter, limit or in any way change the present law as to the quantity or percentage of alcohol used in the manufacturing of wine or other alcoholic beverages.

 

        Sec. 11.  Section 26, chapter 62, Laws of 1933 ex. sess. and RCW 66.28.060 are each amended to read as follows:

          Every distillery licensed under this title shall make monthly reports to the board pursuant to the regulations.  ((No such distillery shall make any sale of spirits within the state of Washington except to the board.))

 

          NEW SECTION.  Sec. 12.  A new section is added to chapter 66.28 RCW to read as follows:

          No licensee under this title may publish or disseminate or cause to be published or disseminated by radio broadcast or in any newspaper, periodical, or other publication or by any sign or outdoor advertisement or any other printed or graphic matter, any advertisement of liquor if the advertisement is calculated to induce sales, unless the advertisement conforms to such regulations, adopted by the board under chapter 34.04 RCW, as will:

          (1)  Prevent deception of the consumer with respect to the products advertised;

          (2)  Provide the consumer with adequate information as to the identity and quality of the products advertised, the alcoholic content of the products, and the person responsible for the advertisement;

          (3)  Prohibit statements that are disparaging of a competitor's products or are false, misleading, obscene, or indecent; and

          (4)  Prevent statements inconsistent with any statement on the labeling of the products advertised.

          The board may adopt only those regulations in respect to advertising as are necessary to carry out the purposes of this section.

 

        Sec. 13.  Section 1, chapter 20, Laws of 1975-'76 2nd ex. sess. and RCW 66.12.110 are each amended to read as follows:

          A person twenty-one years of age or over may bring into the state from without the United States, free of tax and markup, for his personal or household use such alcoholic beverages as have been declared and permitted to enter the United States duty free under federal law.

          Such entry of alcoholic beverages in excess of that herein provided may be authorized by the board upon payment of an equivalent markup and tax as would be applicable to the purchase of the same or similar liquor at retail ((from a)) in Washington ((state liquor store)).  The board shall adopt appropriate regulations pursuant to chapter 34.04 RCW for the purpose of carrying out the provisions of this section.  The board may issue a class H license to a charitable or nonprofit corporation of the state of Washington, the majority of the officers and directors of which are United States citizens and the minority of the officers and directors of which are citizens of the Dominion of Canada, and where the location of the premises for such class H license is not more than ten miles south of the border between the United States and the province of British Columbia.

 

        Sec. 14.  Section 3, chapter 173, Laws of 1975 1st ex. sess. and RCW 66.12.120 are each amended to read as follows:

          Notwithstanding any other provision of Title 66 RCW, a person twenty-one years of age or over may be authorized by the board to bring into the state of Washington from another state a reasonable amount of alcoholic beverages for personal or household use only upon payment of an equivalent markup and tax as would be applicable to the purchase of the same or similar liquor at retail ((from a state liquor store)) in Washington.  The board shall adopt appropriate regulations pursuant to chapter 34.04 RCW for the purpose of carrying into effect the provisions of this section.

 

        Sec. 15.  Section 1, chapter 19, Laws of 1984 and RCW 66.24.185 are each amended to read as follows:

          (1) There shall be a license for bonded wine warehouses which shall authorize the storage of bottled wine only.  Under this license a licensee may maintain a warehouse for the storage of wine off the premises of a winery.

          (2) The board shall adopt similar qualifications for a bonded wine warehouse license as required for obtaining a domestic winery license as specified in RCW 66.24.010 and 66.24.170.  A licensee must be a sole proprietor, a partnership or a corporation.  One or more domestic wineries may operate as a partnership, corporation, business co-op or agricultural co-op for the purposes of obtaining a bonded wine warehouse license.

          (3) All bottled wine shipped to a bonded wine warehouse from a winery or another bonded wine warehouse shall remain under bond and no tax imposed under RCW 66.24.210 shall be due, unless the wine is removed from bond and shipped to a licensed Washington wine wholesaler.  Wine may be removed from a bonded wine warehouse only for the purpose of being (a) exported from the state, (b) shipped to a licensed Washington wine wholesaler, or (c) returned to a winery or bonded wine warehouse.

          (4) Warehousing of wine by any person other than (a) a licensed domestic winery or a bonded wine warehouse licensed under the provisions of this section, (b) a licensed Washington wine wholesaler, or (c) a licensed Washington wine importer, ((or (d) the liquor control board,)) is prohibited.

          (5) A license applicant shall hold a federal permit for a bonded wine cellar and post a continuing wine tax bond in the amount of five thousand dollars in a form prescribed by the board prior to the issuance of a bonded wine warehouse license.  The fee for this license shall be one hundred dollars per annum.

          (6) The board shall adopt rules requiring a bonded wine warehouse to be physically secure, zoned for the intended use and physically separated from any other use.

          (7) Every licensee shall submit to the board a monthly report of movement of bottled wines to and from a bonded wine warehouse in a form prescribed by the board.  The board may adopt other necessary procedures by which bonded wine warehouses are licensed and regulated.

 

        Sec. 16.  Section 1, chapter 38, Laws of 1969 ex. sess. as last amended by section 1, chapter 5, Laws of 1986 and RCW 66.44.340 are each amended to read as follows:

          Employers holding class E ((and/or)), F, or N licenses exclusively are permitted to allow their employees, between the ages of eighteen and twenty-one years, to sell, stock, and handle ((beer or wine)) liquor authorized under the terms of their licenses in, on, or about any establishment holding a class E ((and/or class)), F, or N license exclusively:  PROVIDED, That there is an adult twenty-one years of age or older on duty supervising the sale of liquor at the licensed premises:  PROVIDED, That minor employees may make deliveries of ((beer and/or wine)) liquor purchased from licensees holding class E ((and/or class)), F, or N licenses exclusively, when delivery is made to cars of customers adjacent to such licensed premises but only, however, when the minor employee is accompanied by the purchaser.

 

          NEW SECTION.  Sec. 17.  A new section is added to chapter 66.44 RCW to read as follows:

          In any action or proceeding against a licensee involving the unlawful purchase or consumption of an alcoholic beverage by a minor or the unlawful presence of a minor on the licensed premises, the fine assessed by the board against the licensee shall exceed the fine assessed against the minor involved.  Three violations involving sale of alcoholic beverages to a minor by a class N licensee within a twelve-month period shall result in a two-month suspension of all alcoholic beverage licenses held by the licensee.  Additional penalties may be established by the board.

 

        Sec. 18.  Section 43, chapter 62, Laws of 1933 ex. sess. and RCW 66.08.060 are each amended to read as follows:

          The board shall not advertise liquor in any form or through any medium whatsoever.  ((The board shall have power to adopt any and all reasonable regulations as to the kind, character and location of advertising of liquor.))

 

          NEW SECTION.  Sec. 19.  A new section is added to chapter 66.08 RCW to read as follows:

          The administration of this title is vested in a board to be known as the Washington state liquor control board.  The board shall consist of five members appointed by the governor with the consent of the senate.  In making the appointments, the governor shall select two persons representing the alcoholic beverage industry, two persons representing labor, and two persons representing the public.  The initial members of the board shall be appointed within thirty days of the effective date of this section, for terms beginning January 20, 1988.  One person each representing the industry, labor, and the public shall be appointed for a two-year term, and one person each shall be appointed for a four-year term.  Thereafter, each appointment shall be for a four-year term.  In case of a vacancy, it shall be filled by appointment by the governor for the unexpired portion of the term in which the vacancy occurs.  No vacancy in the membership of the board shall impair the right of the remaining member or members to act.

 

          NEW SECTION.  Sec. 20.  A new section is added to chapter 66.08 RCW to read as follows:

          (1)  Upon appointment of the initial membership, the board shall meet at a time and place designated by the governor and proceed to organize.  The governor shall appoint one of the members as chairman of the board.  The board shall select and employ an executive director.

          (2)  A majority of the members  constitute a quorum of the board.  All actions of the board relating to the regulation of licensing under this title requires an affirmative vote by three or more members of the board.  All licenses issued under this title are subject to the reasonable rules of the board.

          (3)  The principal office of the board shall be at the state capitol and meetings shall be held at such times as may be called by the chairman or upon written request to the chairman of a majority of the board.

          (4)  Before entering upon the duties of the office, each member of the board shall enter into a surety bond executed by a surety company authorized to do business in this state, payable to the state of Washington, to be approved by the governor, in the penal sum of fifty thousand dollars, conditioned upon the faithful performance of  the duties of the office, and shall take and subscribe to the oath of office prescribed for elective state officers, which oath and bond shall be filed with the secretary of state.  The premium for the bond shall be paid by the board.

          (5)  Any member of the board may be removed for inefficiency, malfeasance or misfeasance in office, upon specific written charges filed by the governor, who shall transmit the written charges to the member accused and to the chief justice of the supreme court.  The chief justice shall thereupon designate a tribunal composed of three judges of the superior court to hear and adjudicate the charges.  The tribunal shall fix the time of the hearing, which shall be public, and the procedure for the hearing.  The decision of the tribunal shall be final.  Removal of any member of the board by the tribunal shall disqualify the member for reappointment.

 

          NEW SECTION.  Sec. 21.    (1) Alcoholic beverages shall not be sold or shipped into the state unless the sale or shipment is evidenced by an invoice from the primary source of supply to a wholesaler licensed by the state.  Copies of all such invoices shall be sent by the primary source of supply to the board.

          (2) For purposes of this section, "primary source of supply" means the domestic or foreign distiller, vintner, brewer, producer, bottler, brand owner, or their designated agent, or an authorized primary importer of, or designated agent for, alcohol beverages produced outside of the United States.

 

        Sec. 22.  Section 77, chapter 62, Laws of 1933 ex. sess. as last amended by section 1, chapter 87, Laws of 1986 and RCW 66.08.180 are each amended to read as follows:

          Moneys in the liquor revolving fund shall be distributed by the board at least once every three months in accordance with RCW 66.08.190, 66.08.200 and 66.08.210:  PROVIDED, That the board shall reserve from distribution such amount not exceeding five hundred thousand dollars as may be necessary for the proper administration of this title:  PROVIDED FURTHER, That by January 1, 1988, the board shall transfer five million dollars from the liquor revolving fund to the trust fund established under section 23 of this 1987 act; AND PROVIDED FURTHER, That all license fees, penalties and forfeitures derived under this ((act)) title from class H licenses or class H licensees shall every three months be disbursed by the board as follows:

          (1) 5.95 percent to the University of Washington and 3.97 percent to Washington State University for alcoholism and drug abuse research and for the dissemination of such research;

          (2) 1.75 percent, but in no event less than one hundred fifty thousand dollars per biennium, to the University of Washington to conduct the state toxicological laboratory pursuant to RCW 68.08.107; and

          (3) 88.33 percent and twenty percent of the total amount derived from license fees under RCW 66.24.320, 66.24.330, 66.24.340, 66.24.350, 66.24.360, and 66.24.370 to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW 70.96.085, as now or hereafter amended:  AND PROVIDED FURTHER, That one-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three months be disbursed by the board to Washington State University solely for wine and wine grape research, extension programs related to wine and wine grape research, and resident instruction in both wine grape production and the processing aspects of the wine industry in accordance with RCW 28B.30.068.  The director of financial management shall prescribe suitable accounting procedure to insure that the funds transferred to the general fund to be used by the department of social and health services and appropriated are separately accounted for.

          Unless otherwise specifically provided, all revenue deposited in the state general fund from alcoholic beverage taxes, license fees, or fines shall be appropriated exclusively for the support of the common schools of the state.

 

          NEW SECTION.  Sec. 23.  A new section is added to chapter 66.08 RCW to read as follows:

          The DWI trust fund is established in the state treasury.  The return on the investment of moneys in the trust fund shall accrue solely to the trust and shall be appropriated solely for the purpose of providing assistance to persons injured in alcohol-related motor vehicle accidents, including assistance to the dependents and immediate family members of injured persons.  The trust fund shall be administered by the department of social and health services under the direction of a commission of four members appointed by the governor.  In making the appointments, the governor shall select two persons representing the governor, one person representing the department of social and health services, and one person representing citizens with a demonstrated interest in reducing alcohol-related motor vehicle accidents.  Members of the commission shall be compensated in the manner provided in RCW 43.03.240 and, in addition, shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.  The expenses of the commission shall be appropriated from the investment income of the trust fund.

          The principal of the trust fund shall not be expended.

 

        Sec. 24.  Section 82.08.150, chapter 15, Laws of 1961 as last amended by section 12, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.08.150 are each amended to read as follows:

          (1) There is levied and shall be collected a tax upon each retail sale of spirits((, or strong beer)) in the original package at the rate of fifteen percent of the selling price.  The tax imposed in this subsection shall apply to all such sales ((including sales by the Washington state liquor stores and agencies, but excluding sales to)) by class H and N licensees.

          (2) ((There is levied and shall be collected a tax upon each sale of spirits, or strong beer in the original package at the rate of ten percent of the selling price on sales by Washington state liquor stores and agencies to class H licensees.

          (3))) There is levied and shall be collected an additional tax upon each ((retail)) sale of spirits in the original package to class H and N licensees at the rate of one dollar and seventy-two cents per liter.  ((The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.)) Moneys collected under this subsection shall be disbursed as provided in RCW 66.08.190.

          (((4))) (3) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the taxes payable under subsections (1)((, (2), and (3))) and (2) of this section.

          (((5))) (4) The tax imposed in RCW 82.08.020, as now or hereafter amended, shall not apply to sales of spirits ((or strong beer)) in the original package.

           (((6))) (5) The taxes imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount  of the tax payable in respect to each taxable sale under this section.  The taxes required by this section to be collected by the seller shall be stated separately from the selling price and for purposes of determining the tax due from the buyer to the seller, it shall be conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section.

           (((7))) (6) As used in this section, the terms, "spirits((,))" (("strong beer,")) and "package" shall have the meaning ascribed to them in chapter 66.04 RCW.

 

          NEW SECTION.  Sec. 25.  A new section is added to chapter 66.24 RCW to read as follows:

          Beer wholesalers licensed under RCW 66.24.250 are authorized to import, sell, and distribute strong beer to licensed retailers for resale.

 

          NEW SECTION.  Sec. 26.  The following acts or parts of acts are each repealed:

                   (1)  Section 63, chapter 62, Laws of 1933 ex. sess., section 1, chapter 225, Laws of 1937, section 1, chapter 208, Laws of 1945, section 8, chapter 5, Laws of 1949, section 7, chapter 307, Laws of 1961 and RCW 66.08.012; and

          (2)  Section 64, chapter 62, Laws of 1933 ex. sess., section 2, chapter 208, Laws of 1945, section 1, chapter 113, Laws of 1947, section 9, chapter 5, Laws of 1949, section 1, chapter 105, Laws of 1986 and RCW 66.08.014.

 

          NEW SECTION.  Sec. 27.  The following acts or parts of acts are each repealed:

                   (1)  Section 69, chapter 62, Laws of 1933 ex. sess., section 10, chapter 174, Laws of 1935, section 3, chapter 239, Laws of 1963, section 1, chapter 178, Laws of 1969 ex. sess., section 1, chapter 173, Laws of 1975 1st ex. sess., section 1, chapter 160, Laws of 1983, section 2, chapter 214, Laws of 1986 and RCW 66.08.050;

          (2) Section 67, chapter 62, Laws of 1933 ex. sess., section 1, chapter 209, Laws of 1973 1st ex. sess., section 2, chapter 226, Laws of 1985 and RCW 66.08.070;

          (3) Section 1, chapter 134, Laws of 1947 and RCW 66.08.160;

          (4)  Section 4, chapter 62, Laws of 1933 ex. sess., section 1, chapter 62, Laws of 1937, section 10, chapter 172, Laws of 1939 and RCW 66.16.010;

          (5)  Section 6, chapter 62, Laws of 1933 ex. sess. and RCW 66.16.030;

          (6)  Section 7, chapter 62, Laws of 1933 ex. sess., section 1, chapter 111, Laws of 1959, section 1, chapter 15, Laws of 1971 ex. sess., section 3, chapter 209, Laws of 1973 1st ex. sess., section 217, chapter 158, Laws of 1979, section 8, chapter 5, Laws of 1981 1st ex. sess. and RCW 66.16.040;

          (7)  Section 8, chapter 62, Laws of 1933 ex. sess. and RCW 66.16.050;

          (8)  Section 9, chapter 62, Laws of 1933 ex. sess., section 1, chapter 216, Laws of 1943 and RCW 66.16.060;

          (9)  Section 10, chapter 62, Laws of 1933 ex. sess. and RCW 66.16.070;

          (10)  Section 11, chapter 62, Laws of 1933 ex. sess. and RCW 66.16.080;

          (11)  Section 89, chapter 62, Laws of 1933 ex. sess. and RCW 66.16.090; and

          (12)  Section 23-S-5 added to chapter 62, Laws of 1933 ex. sess. by section 5, chapter 5, Laws of 1949 and RCW 66.24.440.

 

          NEW SECTION.  Sec. 28.    (1) Section 26 of this act shall take effect on January 20, 1988.

          (2) Sections 9, 10, 11, 24, and 27 of this act shall take effect on September 15, 1989.

          (3) The remaining sections of this act shall take effect pursuant to Article II of the state Constitution.

 

          NEW SECTION.  Sec. 29.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.