FINAL BILL REPORT

HB 1289

FULL VETO

BYRepresentatives Cole, Patrick, Vekich, Leonard, Walker, Jones, Wolfe, Prentice and Smith

Modifying business entertainment practices of liquor importers, wholesalers, or manufacturers.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

AS PASSED LEGISLATURE

BACKGROUND:

Under the tied-house law, liquor manufacturers, importers, and wholesalers are prohibited from advancing money or moneys' worth to licensed retailers.  The Liquor Control Board has interpreted this provision (based on an attorney general opinion) to be an unqualified prohibition on gifts, such as food and sports tickets.

In 1988, the Senate considered but failed to pass legislation that would have allowed entertainment of retailers.  After the end of the 1988 Legislative session, the board proposed rules requiring licensees to submit affidavits of compliance with the prohibition on entertaining retailers.  The board then postponed action on the rules to give the Legislature an opportunity to address the issue.

SUMMARY:

Liquor manufacturers, importers, and wholesalers may provide to licensed retailers and their employees:  (1) food and beverages for consumption at a meeting at which the primary purpose is the discussion of business; (2) tickets or admission fees for athletic events or other forms of entertainment in the state, and food and beverages for consumption at such events, if the manufacturer, importer, or wholesaler accompanies the retailer to the event; and (3) transportation to and from allowed activities in the private vehicle of the manufacturer, importer, or wholesaler.

VOTES ON FINAL PASSAGE:

      House 94   0

      Senate    43     2

FULL VETO:  (See VETO MESSAGE)