WSR 20-01-169
PROPOSED RULES
LIQUOR AND CANNABIS
BOARD
[Filed December 18, 2019, 10:53 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 19-12-038.
Title of Rule and Other Identifying Information: WAC 314-02-015 What is a spirits, beer, and wine restaurant license?, 314-02-045 What is a beer and/or wine restaurant license?, and 314-30-010 Sales and contracting by manufacturers.
The above sections were revised to implement legislation that passed during the 2019 legislative session.
SHB 1034 (chapter 61, Laws of 2019) created an endorsement that allows spirits, beer, and wine restaurants to serve bottles of soju for on-premises consumption to tables of two or more patrons. The new law also allows restaurants to recap soju bottles and for patrons to remove recapped soju bottles from the premises.
HB 1672 (chapter 169, Laws of 2019) allows spirits, beer, and wine restaurants and beer and wine restaurants to recap sake purchased for consumption with a meal, and for patrons to remove the recapped sake.
SB 5909 (chapter 156, Laws of 2019) allows manufacturers licensed under RCW 66.24.150 to contract with distilleries, breweries, and wineries to provide packaging services.
Additional technical and clarifying changes were made and unnecessary language was removed.
Hearing Location(s): On January 22, 2020, at 10:00 a.m., at 1025 Union Avenue, Olympia, WA 98504.
Date of Intended Adoption: On or after February 5, 2020.
Submit Written Comments to: Janette Benham, P.O. Box 43080, Olympia, WA 98504, email rules@lcb.wa.gov, fax 360-664-9689, by January 22, 2020.
Assistance for Persons with Disabilities: Contact Claris Nnanabu, ADA coordinator, human resources, phone 360-664-1642, fax 360-664-9689, TTY 711 or 1-800-833-6388, email Claris.Nnanabu@lcb.wa.gov, by January 15, 2020.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 314-02-015 was revised to allow service of soju by the bottle in restaurants that have a soju endorsement and to reference the soju curriculum developed by the board. WAC 314-02-015 and 314-02-045 were revised to allow restaurants to recap sake purchased for consumption with a meal, and for patrons to remove the recapped sake. WAC 314-30-010 was revised to include packaging for manufacturers licensed under RCW 66.24.150 and to add a reference to packaging provisions outlined in statute. Additional technical and clarifying changes were made to all revised sections of WAC, and unnecessary language in WAC 314-30-010 was removed.
Rules revisions will help applicants and licensees operate under applicable statutory provisions with clear guidelines in place.
Reasons Supporting Proposal: The proposed rules implement legislation that passed during the 2019 legislative session and make technical and clarifying changes to ensure rule language is clear.
Statutory Authority for Adoption: RCW 66.08.030.
Statute Being Implemented: RCW 66.04.010, 66.24.400, 66.24.320, 66.24.150.
Rule is not necessitated by federal law, federal or state court decision.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: None.
Name of Proponent: Washington state liquor and cannabis board, governmental.
Name of Agency Personnel Responsible for Drafting: Janette Benham, Rules Coordinator, 1025 Union Avenue, Olympia, WA, 360-664-1760; Implementation: Becky Smith, Licensing Director, 1025 Union Avenue, Olympia, WA, 360-664-1615; and Enforcement: Justin Nordhorn, Enforcement Chief, 1025 Union Avenue, Olympia, WA, 360-664-1726.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required because the subject of proposed rule making does not qualify as a significant legislative rule or other rule requiring a cost benefit analysis under RCW 34.05.328(5). Requirements outlined in the rules are explicitly and specifically dictated by statute.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; and rule content is explicitly and specifically dictated by statute.
December 18, 2019
Jane Rushford
Chair
AMENDATORY SECTION(Amending WSR 17-12-030, filed 5/31/17, effective 7/1/17)
WAC 314-02-015What is a spirits, beer, and wine restaurant license?
(1) Per RCW 66.24.400, this license allows a restaurant to:
(a) Serve spirits by the individual glass or soju by the bottle for on-premises consumption((;)).
(i) Soju served by the bottle may only be served in restaurants holding a soju endorsement and must be served under the provisions outlined in RCW 66.24.400(5);
(ii) Soju endorsement holders must ensure servers providing soju to patrons are trained every five years in the soju curriculum developed by the board.
(b) Serve beer by the bottle or can or by tap for on-premises consumption;
(c) Serve wine and sake for on-premises consumption;
(d) Allow patrons to remove recorked or recapped wine, sake, or soju from the licensed premises;
(e) Sell wine by the bottle for off-premises consumption with the appropriate endorsement; and
(f) Sell kegs of malt liquor with the appropriate endorsement. This endorsement also allows the sale of beer or cider as defined in RCW 66.24.210(6) ((to a purchaser)) in a sanitary container brought to the premises by the purchaser or furnished by the licensee and filled at the tap by the retailer at the time of sale.
(2) To obtain and maintain a spirits, beer, and wine restaurant license, the restaurant must be open to the public at least five hours a day during the hours of 8:00 a.m. and 11:00 p.m., three days a week.
(3) All applicants for a spirits, beer, and wine license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant. The term "bona fide restaurant" means a business where the board can clearly determine that the primary purpose of the business is the service of complete meals. "Complete meals" is defined in WAC 314-02-035.
AMENDATORY SECTION(Amending WSR 15-01-001, filed 12/3/14, effective 1/3/15)
WAC 314-02-045What is a beer and/or wine restaurant license?
(1) Per RCW 66.24.320 and 66.24.354, this license allows a restaurant to:
Privilege
Annual fee
(a) Serve beer by the bottle or can or by tap for on-premises consumption.
$200
(b) Serve wine or sake for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked or recapped wine or sake from the premises).
$200
(c) Sell beer and/or wine in the original, unopened containers for off-premises consumption.
$120
(d) Sell tap beer for off-premises consumption in a sanitary container holding less than four gallons of beer, and brought to the premises by the purchaser.
In conjunction with off-premises privilege outlined in (c) of this subsection.
(e) Sell cider as defined in RCW 66.24.210(6) for off-premises consumption to a purchaser in a sanitary container brought to the premises by the purchaser or provided by the licensee and filled at the tap in the restaurant at the time of purchase. The licensee must comply with federal regulations.
In conjunction with off-premises privilege outlined in (c) of this subsection.
(f) Sell beer in kegs or other containers holding at least four gallons of beer (see WAC 314-02-115 regarding the requirements for registering kegs).
In conjunction with off-premises privilege outlined in (c) of this subsection.
(2) All applicants for a beer and/or wine restaurant license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant, as defined in RCW 66.04.010(((30))).
(a) Minimum food service is required, as defined in WAC 314-02-010.
(b) To obtain and maintain a beer and/or wine restaurant license, the restaurant must be open to the public at least five hours a day, three days a week.
(3) If a beer and/or wine restaurant's dedicated dining area comprises less than fifteen percent of the total customer service area, the premises must maintain a tavern license (((see))as described in WAC 314-02-070 ((regarding the tavern license))).
AMENDATORY SECTION(Amending WSR 12-17-006, filed 8/1/12, effective 9/1/12)
WAC 314-30-010Sales and contracting by manufacturers.
(1) Manufacturers licensed ((in accordance with))under RCW 66.24.150 may sell within the state:
(a) Spirituous liquor products only to spirits distributor((s))licensees;
(b) Wine products only to wine distributor licensees;
(c) Beer products only to beer distributor licensees; or
(d) To permit holders as authorized by RCW 66.20.010 (7) through (10).
(2) Manufacturers licensed under RCW 66.24.150 may contract with licensed liquor distillers, craft distillers, domestic brewers, microbreweries, wineries, and domestic wineries to provide packaging services. Contracted packaging services must be done under the provisions outlined in RCW 66.24.150 (2) and (3).
(3) The first spirits distributor, wine distributor, or beer distributor to receive spirits, wine, or ((malt beverages))beer from a ((distiller,))distillery, winery, brewery, or manufacturer((, rectifier, or bottler shall be liable for))must pay the fees and/or taxes due.
(((3) Manufacturers selling spirits, wine, or malt beverage products will be considered a supplier and will be required to meet the requirements of WAC 314-23-005, 314-24-190, and 314-20-100 respectively.
(4) Manufacturers selling spirits to a licensed spirits distributor, wine to a licensed wine distributor, or beer to a licensed beer distributor shall file monthly reports with the board on forms prescribed by the board showing the quantity of liquor shipped to each above referenced licensee during the preceding month. Such report shall be submitted on or before the twentieth day of the month following the month of sale or delivery.
(5) Failure to make such report at the time prescribed will be sufficient cause for the board to forthwith suspend or cancel the license privilege of the manufacturer. When the twentieth day of any month falls on a Sunday, or a legal holiday, the report may be filed not later than the close of business the next business day.))