SENATE BILL REPORT

HB 1289

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

Senate Hearing Date(s):March 16, 1989; March 21, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Murray, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Charles A. Woods (786-7452)

                  March 21, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 21, 1989

BACKGROUND:

Under the "tied-house" law, liquor manufacturers, importers, and wholesalers are prohibited from advancing moneys 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 a bill (SB 6612) which would have allowed entertainment of retailers.  Following the Legislature's failure to enact SB 6612, 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 until March 15, 1989, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: FOR:  Carter Mitchell, Liquor Control Board; Dick Ducharme, Washington Beer and Wine Wholesalers Association; Bob Seeber, Restaurant Association; Victoria Chiechi, Washington Wine Institute; Sharon Foster, California Wine Institute; Larry Stevens, Seattle Seahawks; Geoff Gibbs, G. Heileman Brewing