WSR 08-17-067

PERMANENT RULES

LIQUOR CONTROL BOARD


[ Filed August 19, 2008, 8:45 a.m. , effective September 19, 2008 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: This rule proposal implements a new liquor license for qualifying hotel premises. It clarifies food service requirements under this license and clarifies designation of areas of the hotel premises restricted to access by minors.

Citation of Existing Rules Affected by this Order: Repealing WAC 314-02-040; and amending WAC 314-02-005, 314-02-010, and 314-02-080.

Statutory Authority for Adoption: RCW 66.08.030 and 66.24.590.

Adopted under notice filed as WSR 08-12-114 on June 4, 2008.

Changes Other than Editing from Proposed to Adopted Version: The amendment to WAC 314-02-010 adding the definition of "adjacent" includes a diagram. The word "private and" was removed from the diagram showing "private and public right of way (ROW)" indicating that a private right of way will not prevent property on both sides of the right of way from being considered adjacent properties.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 6, Amended 3, Repealed 1.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 6, Amended 3, Repealed 1.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: August 6, 2008.

Lorraine Lee

Chairman

OTS-1607.3


AMENDATORY SECTION(Amending WSR 00-07-091, filed 3/15/00, effective 4/15/00)

WAC 314-02-005   What is the purpose of chapter 314-02 WAC?   Chapter 314-02 WAC outlines the qualifications for the following liquor licenses and permits:

(1) Spirits, beer, and wine restaurants;

(2) Hotels;

(3) Beer and/or wine restaurants;

(((3))) (4) Snack bars;

(((4))) (5) Taverns;

(((5))) (6) Motels;

(((6))) (7) Bed and breakfasts;

(((7))) (8) Nonprofit arts organizations;

(((8))) (9) Public houses;

(((9))) (10) Grocery stores;

(((10))) (11) Beer/wine specialty shops; and

(((11))) (12) Beer/wine gift delivery business.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, 314-02-005, filed 3/15/00, effective 4/15/00.]


AMENDATORY SECTION(Amending WSR 05-22-022, filed 10/24/05, effective 11/24/05)

WAC 314-02-010   Definitions.   The following definitions are to clarify the purpose and intent of the rules and laws governing liquor licenses and permits. Additional definitions can be found in RCW 66.04.010.

(1) "Adjacent" means having a common endpoint or border where the extension of the property lines of the licensed premises contacts that common border.

(2) "Banquet room" means any room used primarily for the sale and service of food and liquor to private groups.

(((2))) (3) "Customer service area" means areas where food and/or liquor are normally sold and served to the public, i.e., lounges and dining areas. A banquet room is not considered a customer service area.

(((3))) (4) "Dedicated dining area." In order for an area to qualify as a dedicated dining area, it must be a distinct portion of a restaurant that is used primarily for the sale, service, and consumption of food, and have accommodations for eating, e.g., tables, chairs, booths, etc. See WAC 314-02-025 for more information.

(((4))) (5) "Designated area" means a space where alcohol may be sold, served, or consumed.

(6) "Food counter" means a table or counter set up for the primary purpose of food service to customers who sit or stand at the counter. Any alcohol served is incidental to food service.

(((5))) (7) "Game room" means an area of a business set up for the primary purpose of patrons using games or gaming devices.

(((6) "Liquor" means beer, wine, or spirits (per RCW 66.04.010(19) - Definitions).

(7))) (8) "Liquor bar" means a table or counter where alcohol is stored or prepared and served to customers who sit or stand at the bar. Liquor bars can only be in lounges or in premises where minors are not allowed at any time.

(((8))) (9) "Lounge" means the portion of a restaurant used primarily for the preparation, sale, and service of beer, wine, or spirits. Minors are not allowed in a lounge (see RCW 66.44.316 for information on employees and professional musicians under twenty-one years of age).

(((9))) (10) "Minor" means a person under twenty-one years of age.

(((10))) (11) "Service bar" means a fixed or portable table, counter, cart, or similar work station primarily used to prepare, mix, serve, and sell alcohol that is picked up by employees or customers. Customers may not be seated or allowed to consume food or alcohol at a service bar.

[Statutory Authority: RCW 66.04.010, 66.08.030, 66.24.410, 66.44.310, and 66.44.420. 05-22-022, 314-02-010, filed 10/24/05, effective 11/24/05. Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, 314-02-010, filed 3/15/00, effective 4/15/00.]


NEW SECTION
WAC 314-02-041   What is a hotel license?   (1) Per RCW 66.24.590, this license allows a hotel to:

(a) Serve spirits by the individual serving at retail for consumption on the licensed premises;

(b) Serve beer, including strong beer, and wine for consumption on the licensed premises;

(c) Sell at retail, from locked honor bars, in individual units, spirits not to exceed fifty milliliters, beer in individual units not to exceed twelve ounces, and wine in individual bottles not to exceed three hundred eighty-five milliliters, to registered guests of the hotel for consumption in guest rooms;

(d) Provide, without additional charge, to overnight guests, spirits, beer, and wine by the individual serving for consumption on the licensed premises at a specified regular date, time, and place. Self-service by guests is prohibited;

(e) Sell beer, including strong beer, wine, or spirits, in the manufacturer's sealed container or by the individual drink to guests through room service, or through service to occupants of private residential units which are part of the buildings or complex of buildings, that include the hotel;

(f) Sell beer, including strong beer, and wine, in the manufacturer's sealed container at retail sales locations within the hotel premises; and

(g) Place in guest rooms at check-in, complimentary beer, including strong beer, or wine in a manufacturer's sealed container.

(2) The annual fee for a hotel license is two thousand dollars.

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NEW SECTION
WAC 314-02-0411   What are the food service requirements for a hotel license?   (1) A hotel licensee must have the ability to serve at least four complete meals to hotel guests or any other patron of the hotel who is offered alcohol service for on-premise consumption at a food outlet on the hotel premises. Food outlets include room service, banquets, bars/lounges, restaurants, or coffee shops. "Complete meal" is defined in WAC 314-02-035.

(2) Complete meals must be prepared on the hotel premises.

(3) A menu must be available to hotel guests and patrons offered alcohol service that lists, at a minimum, the required complete meals.

(4) The food items required to maintain the menu must be located on the licensed premises. These items must be edible.

(5)(a) Licensees must maintain complete meal service for a minimum of five hours a day between the hours of 11:00 a.m. and 2:00 a.m. on any day that liquor is served. The board may consider written requests for exceptions to this requirement due to a demonstrated hardship and may allow exceptions under terms and conditions the board determines are in the best interests of the public.

(b) Minimum food service must be available during hours of alcohol service when complete meal service is not offered. Minimum food service includes items such as hamburgers or fry orders. Snacks such as peanuts, popcorn, and chips do not qualify as minimum food service.

(6) Hours of complete meal service must be listed on the menu. If applicable, a statement must be posted or listed on the menu that minimum food service is available when alcohol is served and complete meal service is unavailable.

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NEW SECTION
WAC 314-02-0412   Are minors restricted from any areas of the hotel premises?   (1) If an area of the hotel premises is used primarily for alcohol service on a continuing basis, the area must be designated by the licensee as restricted to access by minors.

(2) The board may restrict alcohol service in areas of the hotel premises where:

(a) The designated area is designed as an attraction for minors; or

(b) Consumption of alcohol in a designated area presents an increased risk to public safety.

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NEW SECTION
WAC 314-02-0413   What are the requirements if the hotel licensee does not operate the business serving alcohol or food within the hotel premises?   (1)(a) If any facilities within the hotel premises used for alcoholic beverage service and the preparation, cooking, and serving of food are operated under contract or joint venture agreement with a business separate from the hotel business, the operator may hold a license separate from the license held by the operator of the hotel.

(b) Food and beverage inventory used in separately licensed operations on the hotel premises may not be shared and shall be separately owned and stored by the separate licensees.

(c) The board may require a hotel licensee to submit a copy of the contract or joint venture agreement when a party other than the hotel operator provides food and alcoholic beverage service. Such contract or agreement must require the provider of food and alcoholic beverage services to meet the food service requirements of WAC 314-02-0411.

(d) The hotel licensee is responsible for the conduct of alcohol sales and service by a separately licensed business and violation incurred by the separately licensed business may result in an administrative violation for the hotel licensee.

(2)(a) If alcohol is consumed in an area of the hotel premises operated by a business separate from the hotel business but under a contract or joint venture agreement with the hotel licensee to conduct activities other than food service, the hotel licensee is responsible for violations of alcohol laws and regulations resulting from conduct of the separate business.

(b) The board may require a hotel licensee to submit a copy of the contract or joint venture agreement between the licensee and the separate business.

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NEW SECTION
WAC 314-02-0414   Can a hotel licensee use its alcohol inventory for sales and service at events outside of the hotel premises?   Per RCW 66.24.590, a licensee may:

(1) Remove from the hotel licensee's liquor stocks at the licensed premises, liquor to be sold and served at an event on a specified date at a specified location not currently licensed by the board. If the event is open to the public, it must be sponsored by a society or organization defined under RCW 66.24.375.

(2) If requested by the board, the licensee must notify the board or its designee of the date, time, and location of these events.

(3) Licensees may sell and serve liquor under this section on the premises of a domestic winery.

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NEW SECTION
WAC 314-02-0415   What are the requirements for instructing employees on spirits, beer, or wine?   (1) Per RCW 66.24.590, a licensee or its manager may furnish spirits, beer, or wine to the licensee's employees who are twenty-one years of age or older, free of charge, as a necessary part of instruction and training on spirits, beer, and wine.

(2) The licensee must use spirits, beer, and wine he or she obtains under the license for purposes of instruction.

(3) The instruction must be given at the hotel premises.

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AMENDATORY SECTION(Amending WSR 00-07-091, filed 3/15/00, effective 4/15/00)

WAC 314-02-080   What are the requirements for a motel licensee or a hotel ((with a spirits, beer, and wine restaurant license)) licensee to sell liquor in honor bars?   For the purposes of this chapter, an "honor bar" is a cabinet, box, cooler, or refrigerator in a guest room that can be opened only with a key, combination, magnetic card, or similar device. The following requirements apply to the use of an honor bar:

(1) The licensee must require proof of age before providing a guest access to an honor bar. The guest must sign a declaration, under penalty of perjury, verifying that:

(a) The guest is twenty-one years of age or older; and

(b) No one under twenty-one years of age will have access to the liquor in the honor bar.

(2) The honor bars must remain locked whenever the room is rented to a guest under twenty-one years of age.

(3) All liquor stored on the licensed premises must be either locked in an honor bar or locked in a secured liquor storage room.

(4) No person under twenty-one years of age may have access to the honor bars, liquor storage rooms, or keys, combinations, etc., to the locked honor bars or storage rooms.

(5) A honor bar or storage room may only be replenished during those hours when liquor may legally be sold (not between 2:00 a.m. and 6:00 a.m.), and only by employees who are twenty-one years of age or older. Beer and wine wholesalers may deliver, price, and stock product only in storage rooms.

(6) Liquor in honor bars may only be sold in individual containers in the following sizes:

(a) Spirits - not to exceed fifty milliliters;

(b) Beer - not to exceed twelve ounces; and

(c) Wine - not to exceed one hundred eighty-seven milliliters.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, 314-02-080, filed 3/15/00, effective 4/15/00.]


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 314-02-040 Can a hotel with a spirits, beer, and wine restaurant license sell liquor by the bottle to guests?

Washington State Code Reviser's Office