S-1728               _______________________________________________

                                                   SENATE BILL NO. 5941

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senator Madsen

Read first time 2/17/89 and referred to Committee on  Economic Development & Labor.

AN ACT Relating to liquor licensing; and adding a new section to chapter 66.24 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 66.24 RCW to read as follows:

          (1) There shall be a retail license to be known as a class I catering license.  Subject to the limitations in this section, the license shall allow the sale and service of liquor at retail, for consumption on the premises, to members and guests of a society or organization on special occasions at a specified date and place on premises other than the licensed premises.  The license may be issued to the holder of a class A, B, or H license.  A class H licensee may sell spiritous liquor by the individual glass, beer, and wine under this section.  A class A or B licensee may sell only beer and wine under this section.  The license may be issued for a specified date and place or for a year.

          (2) The licensee shall be allowed to remove liquor for sale and service at such special occasion locations from the liquor stocks at the licensed premises of the licensee.

          (3) The holder of an annual class I catering license shall notify the board prior to each event at which the license will be used.  The licensee shall provide to the board all necessary or requested information concerning the society or organization which will be holding the function at which the license will be used.

          (4) The holder of an annual class I catering license shall also notify the appropriate local authorities.

          (5) A class H club licensee may use a class I license only for events of the club.

          (6)(a) A licensee may conduct catering activities under this section only if the society or organization sponsoring the function is a "society or organization" as defined in (b) of this subsection or attendance at the function will be limited to members and invited guests of the sponsoring society or organization.

          (b) "Society or organization" means a not-for-profit group organized and operated solely for charitable, religious, social, political, educational, civic, fraternal, athletic, or benevolent purposes.  No portion of the profits from events sponsored by a not-for-profit group may be paid directly or indirectly to members, officers, directors, or trustees except for services performed for the organization.  Any compensation paid to its officers and executives must be only for actual services and at levels comparable to the compensation for like positions within the state.  A society or organization which is registered with the secretary of state or the federal internal revenue service as a nonprofit organization may submit such registration as proof that it is a not-for-profit group.

          (7) The fee for the license is five hundred dollars per year for an annual license or twenty-five dollars per event.