HOUSE BILL ANALYSIS

                     HB 2657

Brief Description:  Allowing a licensed distiller to hold a spirits, beer, and wine license.

Sponsors:  Representatives Chandler, B. and Conway       

Hearing:  January 26, 2000

                 Brief Summary of Bill

CAllows as an exception to the "tied-house" law, licensed distillers of spirituous liquor to hold a retail spirits, beer and wine restaurant license for a facility operated on the premises of the distillery.

BACKGROUND:

Under Washington's "tied-house" law, certain financial "ties" or business relationships are prohibited between alcohol retailers and alcohol manufacturers or distributors.

The purposes of the tied-house prohibitions are to prevent manufacturers and distributors from engaging in practices that induce retailers to sell certain alcohol products and exclude others and to inappropriately increase consumption.

One type of business relationship prohibited by the tied-house law is allowing licensed liquor manufacturers and distributors to also hold a retail liquor license.  However, the law does allow a brewery or a winery to hold a spirits, beer and wine restaurant license for operation of a restaurant on the site of the brewery or winery or on contiguous property.

A distiller manufactures spirituous liquor products and must be licensed under the liquor laws.

SUMMARY OF BILL: 

An exception to the tied-house law is created to allow a licensed distiller to hold a spirits, beer and wine restaurant license for the operation of a restaurant on the site of the distillery or on contiguous property.  This exception is similar to that granted to breweries and wineries.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule making powers of an agency.

FISCAL NOTE: Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of a session in which bill is passed.