SENATE BILL REPORT

SHB 2857

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Phillips, Vekich, Prentice, Smith, Walker, Leonard, Locke and Wineberry)

Creating a new license for the sale of table and fortified wine.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 19, 1990

Senate Staff:Jonathan Seib (786-7427)

AS OF FEBRUARY 20, 1990

BACKGROUND:

Attempting to address the problem of public intoxication, the Legislature in 1987 created a restricted class F wine retailers license for counties with over 300,000 population.  Upon application or renewal of class F licenses, the Liquor Control Board may issue a class F license or a class F restricted license.  The class F licensee may sell table wine and fortified wine.  The class F restricted licensee may sell only table wine.

"Table wine" is any wine containing less than 14 percent alcohol by volume.  "Fortified wine" is any wine containing 14 percent or more alcohol by volume.

In deciding which license to issue, the board considers: 1) the likelihood that the applicant will sell fortified wine to intoxicated persons, 2) local law enforcement problems which may arise from the sale of fortified wine at the applicant establishment, and 3) whether the sale of fortified wine would be detrimental to a public alcohol treatment program in the area.

This law has been challenged in court on the grounds that, as applied, it discriminates against some wine retailers.  The King County Superior Court granted a motion to stay, pending review, an administrative law judge's order upholding the board's refusal to renew the petitioner's unrestricted class F license.  The case is still pending review.

SUMMARY:

Class F and class F restricted wine retailer licenses are abolished as of July 1, 1991.

A new "class Q" license is created.  To be issued beginning July 1, 1991 it will entitle the licensee to sell table wine but not fortified wine.

A new "class R" license is created.  To be issued beginning July 1, 1991, it will be available only to holders of class Q licenses, and entitle the licensee to sell fortified wine.

In determining whether to issue a class R license, the board will consider: 1) whether there is a social service agency within 500 feet of the applicant establishment, 2) any history of law enforcement problems associated with the sale of fortified wine at the applicant establishment, 3) the past practices of the applicant involving the sale of fortified wine, and 4) objections of city or county officials to the issuance or renewal of the license.

If, within 20 days of being notified of the application, a social service agency within 500 feet of an applicant establishment objects in writing, the board shall not issue the license.

The definition of fortified wine is changed to any wine containing more than 14 percent alcohol by volume.  The definition does not include any wine which the board, by rule, designates as not contributing significantly to the problem of public intoxification.

Appropriation:    none

Revenue:    none

Fiscal Note:      available