S-4041               _______________________________________________

                                                   SENATE BILL NO. 6487

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators Rinehart, Benitz, Williams, Newhouse, Niemi and Moore

Read first time 1/15/90 and referred to Committee on  Economic Development & Labor.

AN ACT Relating to sales between domestic wineries and brewers; and amending RCW 66.24.170 and 66.24.240.

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

        Sec. 1.  Section 1, chapter 217, Laws of 1937 as last amended by section 4, chapter 85, Laws of 1982 and RCW 66.24.170 are each amended to read as follows:

          (1) There shall be a license to domestic wineries; fee to be computed only on the liters manufactured:  One hundred thousand liters or less       per year, one hundred dollars per year; over one hundred thousand liters to seven hundred fifty  thousand liters per year, four hundred dollars per year; and over seven hundred fifty thousand liters per year, eight hundred dollars per year.

          (2) Any applicant for a domestic winery license shall, at the time of filing application for license, accompany such application with a license fee based upon a reasonable estimate of the amount of wine liters to be manufactured by such applicant.  Persons holding domestic winery licenses shall report annually at the end of each fiscal year, at such time and in such manner as the board may prescribe, the amount of wine manufactured by them during the fiscal year.  If the total amount of wine manufactured during the year exceeds the amount permitted annually by the license fee already paid the board, the licensee shall pay such additional license fee as may be unpaid in accordance with the schedule provided in this section.

          (3) Any domestic winery licensed under this section shall also be considered as holding,  for the purposes of selling wines of its own production, a current wine wholesaler's license under RCW 66.24.200 and a wine retailer's license, class F, under RCW 66.24.370 without further application or fee.  Any winery operating as a wholesaler or retailer under this subsection shall comply with the applicable laws and rules relating to such wholesalers and retailers.

(4) Any domestic winery licensed under this section may, for the purposes of selling beer produced by a brewer licensed under RCW 66.24.240, apply for a beer retailer's license, class B, under RCW 66.24.330.  Any winery operating as a retailer under this subsection shall comply with the applicable laws and rules relating to such retailers.

        Sec. 2.  Section 1, chapter 217, Laws of 1937 as last amended by section 1, chapter 226, Laws of 1985 and RCW 66.24.240 are each amended to read as follows:

          (1) There shall be a license to brewers to manufacture malt liquors, fee per annum to be  based on current fiscal year's production at the rate of fifty dollars per thousand barrels, with a maximum fee of two thousand dollars, such license fee to be collected and paid under such rules and regulations  as the board shall prescribe.

          (2) Any brewery licensed under this section shall also be considered as holding, for the purposes of selling malt liquor of its own production, a beer wholesaler's license under RCW 66.24.250, a beer retailer's license, class B, under RCW 66.24.330, and a beer retailer's license, class E, under RCW 66.24.360 without further application or fee.  Any brewery operating as a wholesaler or retailer under this subsection shall comply with the applicable laws and rules relating to such wholesalers and retailers.

(3) Any brewery licensed under this section may, for the purposes of selling wine produced by domestic wineries, apply for a wine retailer's license, class C, under RCW 66.24.340.  Any brewery operating as a retailer under this subsection shall comply with the applicable laws and rules relating to such retailers.