AN
ACT Relating to the administration and designation of liquor licenses; amending
RCW 66.08.220, 66.12.110, 66.24.185, 66.24.580, 66.28.220, 66.40.030,
66.40.130, 66.44.190, 66.44.340, 66.44.350, and 68.50.107; reenacting and
amending RCW 66.08.180, 66.24.450, and 66.24.290; and repealing RCW 66.24.300.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
66.08.180 and 1997 c 451 s 3 and 1997 c 321 s 57 are each reenacted and amended
to read as follows:
Except
as provided in RCW 66.24.290(1), moneys in the liquor revolving fund shall be
distributed by the board at least once every three months in accordance with
RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, That the board shall reserve
from distribution such amount not exceeding five hundred thousand dollars as
may be necessary for the proper administration of this title.
(1)
All license fees, penalties and forfeitures derived under this act from ((class
H)) spirits, beer, and wine restaurant; spirits, beer, and wine private
club; and sports entertainment facility licenses or ((class H)) spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licensees shall every three months be disbursed by
the board as follows:
(a)
Three hundred thousand dollars per biennium, to the University of Washington
for the forensic investigations council to conduct the state toxicological
laboratory pursuant to RCW 68.50.107; and
(b)
Of the remaining funds:
(i)
6.06 percent to the University of Washington and 4.04 percent to Washington
State University for alcoholism and drug abuse research and for the
dissemination of such research; and
(ii)
89.9 percent to the general fund to be used by the department of social and health
services solely to carry out the purposes of RCW 70.96A.050;
(2)
The first fifty-five dollars per license fee provided in RCW 66.24.320 and
66.24.330 up to a maximum of one hundred fifty thousand dollars annually shall
be disbursed every three months by the board to the general fund to be used for
juvenile alcohol and drug prevention programs for kindergarten through third
grade to be administered by the superintendent of public instruction;
(3)
Twenty percent of the remaining total amount derived from license fees pursuant
to RCW 66.24.320, 66.24.330, 66.24.350, and 66.24.360, shall be transferred to
the general fund to be used by the department of social and health services
solely to carry out the purposes of RCW 70.96A.050; and
(4)
One-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three
months be disbursed by the board to Washington State University solely for wine
and wine grape research, extension programs related to wine and wine grape
research, and resident instruction in both wine grape production and the
processing aspects of the wine industry in accordance with RCW 28B.30.068. The
director of financial management shall prescribe suitable accounting procedures
to ensure that the funds transferred to the general fund to be used by the
department of social and health services and appropriated are separately
accounted for.
Sec.
2. RCW
66.08.220 and 1949 c 5 s 11 are each amended to read as follows:
The
board shall set aside in a separate account in the liquor revolving fund an
amount equal to ten percent of its gross sales of liquor to ((class H)) spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licensees collected from these licensees pursuant
to the provisions of RCW 82.08.150, less the fifteen percent discount provided
for in RCW 66.24.440; and the moneys in said separate account shall be
distributed in accordance with the provisions of RCW 66.08.190, 66.08.200 and
66.08.210: PROVIDED, HOWEVER, That no election unit in which the sale of
liquor under ((class H)) spirits, beer, and wine restaurant; spirits,
beer, and wine private club; and sports entertainment facility licenses is
unlawful shall be entitled to share in the distribution of moneys from such
separate account.
Sec.
3. RCW
66.12.110 and 1975-'76 2nd ex.s. c 20 s 1 are each amended to read as follows:
A
person twenty-one years of age or over may bring into the state from without
the United States, free of tax and markup, for his personal or household use
such alcoholic beverages as have been declared and permitted to enter the
United States duty free under federal law.
Such
entry of alcoholic beverages in excess of that herein provided may be authorized
by the board upon payment of an equivalent markup and tax as would be
applicable to the purchase of the same or similar liquor at retail from a
Washington state liquor store. The board shall adopt appropriate regulations
pursuant to chapter 34.05 RCW for the purpose of carrying out the provisions of
this section. The board may issue a ((class H)) spirits, beer, and
wine private club license to a charitable or nonprofit corporation of the
state of Washington, the majority of the officers and directors of which are
United States citizens and the minority of the officers and directors of which
are citizens of the Dominion of Canada, and where the location of the premises
for such ((class H)) spirits, beer, and wine private club license
is not more than ten miles south of the border between the United States and
the province of British Columbia.
Sec.
4. RCW
66.24.185 and 1997 c 321 s 4 are each amended to read as follows:
(1)
There shall be a license for bonded wine warehouses which shall authorize the
storage of bottled wine only. Under this license a licensee may maintain a
warehouse for the storage of wine off the premises of a winery.
(2)
The board shall adopt similar qualifications for a bonded wine warehouse license
as required for obtaining a domestic winery license as specified in RCW
66.24.010 and 66.24.170. A licensee must be a sole proprietor, a partnership,
a limited liability company, or a corporation. One or more domestic wineries
may operate as a partnership, corporation, business co-op, or agricultural
co-op for the purposes of obtaining a bonded wine warehouse license.
(3)
All bottled wine shipped to a bonded wine warehouse from a winery or another
bonded wine warehouse shall remain under bond and no tax imposed under RCW
66.24.210 shall be due, unless the wine is removed from bond and shipped to a
licensed Washington wine distributor. Wine may be removed from a bonded wine
warehouse only for the purpose of being (a) exported from the state, (b) shipped
to a licensed Washington wine distributor, or (c) returned to a winery or
bonded wine warehouse.
(4)
Warehousing of wine by any person other than (a) a licensed domestic winery or
a bonded wine warehouse licensed under the provisions of this section, (b) a
licensed Washington wine distributor, (c) a licensed Washington wine importer,
(d) a wine certificate of approval holder (W7), or (e) the liquor control
board, is prohibited.
(5)
A license applicant shall hold a federal permit for a bonded wine cellar and may
be required to post a continuing wine tax bond ((in the amount of five
thousand dollars in a form prescribed)) of such an amount and in such a
form as may be required by the board prior to the issuance of a bonded wine
warehouse license. The fee for this license shall be one hundred dollars per
annum.
(6)
The board shall adopt rules requiring a bonded wine warehouse to be physically
secure, zoned for the intended use and physically separated from any other use.
(7)
Every licensee shall submit to the board a monthly report of movement of
bottled wines to and from a bonded wine warehouse in a form prescribed by the
board. The board may adopt other necessary procedures by which bonded wine
warehouses are licensed and regulated.
Sec.
5. RCW
66.24.450 and 1998 c 126 s 9 and 1998 c 114 s 1 are each reenacted and amended
to read as follows:
(1)
No club shall be entitled to a spirits, beer, and wine private club license:
(a)
Unless such private club has been in continuous operation for at least one year
immediately prior to the date of its application for such license;
(b)
Unless the private club premises be constructed and equipped, conducted,
managed, and operated to the satisfaction of the board and in accordance with
this title and the regulations made thereunder;
(c)
Unless the board shall have determined pursuant to any regulations made by it
with respect to private clubs, that such private club is a bona fide private
club; it being the intent of this section that license shall not be granted to
a club which is, or has been, primarily formed or activated to obtain a license
to sell liquor, but solely to a bona fide private club, where the sale of
liquor is incidental to the main purposes of the spirits, beer, and wine
private club, as defined in RCW 66.04.010(7).
(2)
The annual fee for a spirits, beer, and wine private club license, whether
inside or outside of an incorporated city or town, is seven hundred twenty
dollars per year.
(3)
The board may issue an endorsement to the ((full service)) spirits,
beer, and wine private club license that allows up to forty nonclub,
member-sponsored events using club liquor. Visitors and guests may attend
these events only by invitation of the sponsoring member or members. These
events may not be open to the general public. The fee for the endorsement
shall be an annual fee of nine hundred dollars. Upon the board's request, the
holder of the endorsement must provide the board or the board's designee with
the following information at least seventy-two hours prior to the event: The
date, time, and location of the event; the name of the sponsor of the event;
and a brief description of the purpose of the event.
Sec.
6. RCW
66.24.580 and 1996 c 224 s 2 are each amended to read as follows:
(1)
A public house license allows the licensee:
(a)
To annually manufacture no less than two hundred fifty gallons and no more than
two thousand four hundred barrels of beer on the licensed premises;
(b)
To sell product, that is produced on the licensed premises, at retail on the
licensed premises for consumption on the licensed premises;
(c)
To sell beer or wine not of its own manufacture for consumption on the licensed
premises if the beer or wine has been purchased from a licensed beer or wine
wholesaler;
(d)
To hold other classes of retail licenses at other locations without being
considered in violation of RCW 66.28.010;
(e)
To apply for and, if qualified and upon the payment of the appropriate fee, be
licensed as a ((class H)) spirits, beer, and wine restaurant to
do business at the same location. This fee is in addition to the fee charged
for the basic public house license.
(2)
While the holder of a public house license is not to be considered in violation
of the prohibitions of ownership or interest in a retail license in RCW
66.28.010, the remainder of RCW 66.28.010 applies to such licensees.
(3)
A public house licensee must pay all applicable taxes on production as are
required by law, and all appropriate taxes must be paid for any product sold at
retail on the licensed premises.
(4)
The employees of the licensee must comply with the provisions of mandatory
server training in RCW 66.20.300 through 66.20.350.
(5)
The holder of a public house license may not hold a wholesaler's or importer's
license, act as the agent of another manufacturer, wholesaler, or importer, or
hold a brewery or winery license.
(6)
The annual license fee for a public house is one thousand dollars.
(7)
The holder of a public house license may hold other licenses at other locations
if the locations are approved by the board.
(8)
Existing holders of annual retail liquor licenses may apply for and, if
qualified, be granted a public house license at one or more of their existing
liquor licensed locations without discontinuing business during the application
or construction stages.
Sec.
7. RCW
66.28.220 and 1993 c 21 s 3 are each amended to read as follows:
The
board shall adopt rules requiring retail licensees to affix appropriate
identification on all containers of four gallons or more of malt liquor for the
purpose of tracing the purchasers of such containers. The rules may provide
for identification to be done on a state-wide basis or on the basis of smaller
geographical areas.
The
board shall develop and make available forms for the declaration and receipt
required by RCW 66.28.200. The board may charge ((class E)) grocery
store licensees for the costs of providing the forms and that money
collected for the forms shall be deposited into the liquor revolving fund for
use by the board, without further appropriation, to continue to administer the
cost of the keg registration program.
It
is unlawful for any person to sell or offer for sale kegs or other containers
containing four gallons or more of malt liquor to consumers who are not
licensed under chapter 66.24 RCW if the kegs or containers are not identified
in compliance with rules adopted by the board.
Sec.
8. RCW
66.40.030 and 1994 c 55 s 1 are each amended to read as follows:
Within
any unit referred to in RCW 66.40.010, there may be held a separate election
upon the question of whether the sale of liquor under ((class H)) spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licenses, shall be permitted within such unit. The
conditions and procedure for holding such election shall be those prescribed by
RCW 66.40.020, 66.40.040, 66.40.100, 66.40.110 and 66.40.120. Whenever a
majority of qualified voters voting upon said question in any such unit shall
have voted "against the sale of liquor under ((class H)) spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licenses", the county auditor shall file with
the liquor control board a certificate showing the result of the canvass at
such election; and after ninety days from and after the date of the canvass, it
shall not be lawful for licensees to maintain and operate premises within the
election unit licensed under ((class H)) spirits, beer, and wine
restaurant; spirits, beer, and wine private club; and sports entertainment
facility licenses. The addition after an election under this section of
new territory to a city, town, or county, by annexation, disincorporation, or
otherwise, shall not extend the prohibition against the sale of liquor under ((class
H)) spirits, beer, and wine restaurant; spirits, beer, and wine private
club; and sports entertainment facility licenses to the new territory.
Elections held under RCW 66.40.010, 66.40.020, 66.40.040, 66.40.100, 66.40.110,
66.40.120 and 66.40.140, shall be limited to the question of whether the sale
of liquor by means other than under ((class H)) spirits, beer, and
wine restaurant; spirits, beer, and wine private club; and sports entertainment
facility licenses shall be permitted within such election unit.
Sec.
9. RCW
66.40.130 and 1949 c 5 s 13 are each amended to read as follows:
Ninety
days after December 2, 1948, ((class H)) spirits, beer, and wine
restaurant; spirits, beer, and wine private club; and sports entertainment
facility licenses may be issued in any election unit in which the sale of
liquor is then lawful. No ((class H)) spirits, beer, and wine
restaurant; spirits, beer, and wine private club; and sports entertainment
facility license shall be issued in any election unit in which the sale of
liquor is forbidden as the result of an election held under RCW 66.40.010,
66.40.020, 66.40.040, 66.40.100, 66.40.110, 66.40.120 and 66.40.140, unless a
majority of the qualified electors in such election unit voting upon this
initiative at the general election in November, 1948, vote in favor of this initiative,
or unless at a subsequent general election in which the question of whether the
sale of liquor under ((class H)) spirits, beer, and wine restaurant;
spirits, beer, and wine private club; and sports entertainment facility
licenses shall be permitted within such unit is submitted to the electorate, as
provided in RCW 66.40.030, a majority of the qualified electors voting upon
such question vote "for the sale of liquor under ((class H)) spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licenses."
Sec.
10. RCW
66.44.190 and 1997 c 321 s 62 are each amended to read as follows:
Except
at the faculty center as so designated by the university board of regents to
the Washington state liquor control board who may issue a ((class H)) spirits,
beer, and wine private club license therefor, it shall be unlawful to sell
any intoxicating liquors, with or without a license on the grounds of the
University of Washington, otherwise known and described as follows: Fractional
section 16, township 25 north, range 4 east of Willamette Meridian except to
the extent allowed under banquet permits issued pursuant to RCW 66.24.481.
Sec.
11. RCW
66.44.340 and 1986 c 5 s 1 are each amended to read as follows:
Employers
holding ((class E and/or F)) grocery store or beer and/or wine
specialty shop licenses exclusively are permitted to allow their employees,
between the ages of eighteen and twenty-one years, to sell, stock, and handle
beer or wine in, on or about any establishment holding a ((class E and/or
class F)) grocery store or beer and/or wine specialty shop license
exclusively: PROVIDED, That there is an adult twenty-one years of age or older
on duty supervising the sale of liquor at the licensed premises: PROVIDED,
That minor employees may make deliveries of beer and/or wine purchased from
licensees holding ((class E and/or class F)) grocery store or beer
and/or wine specialty shop licenses exclusively, when delivery is made to
cars of customers adjacent to such licensed premises but only, however, when
the minor employee is accompanied by the purchaser.
Sec.
12. RCW
66.44.350 and 1988 c 160 s 1 are each amended to read as follows:
Notwithstanding
provisions of RCW 66.44.310, employees ((of class A, C, D and/or H)) holding
beer and/or wine restaurant; beer and/or wine private club; snack bar; spirits,
beer, and wine restaurant; spirits, beer, and wine private club; and sports
entertainment facility licenses who are licensees eighteen years of age and
over may take orders for, serve and sell liquor in any part of the licensed
premises except cocktail lounges, bars, or other areas classified by the
Washington state liquor control board as off-limits to persons under twenty-one
years of age: PROVIDED, That such employees may enter such restricted areas to
perform work assignments including picking up liquor for service in other parts
of the licensed premises, performing clean up work, setting up and arranging
tables, delivering supplies, delivering messages, serving food, and seating
patrons: PROVIDED FURTHER, That such employees shall remain in the areas
off-limits to minors no longer than is necessary to carry out their
aforementioned duties: PROVIDED FURTHER, That such employees shall not be
permitted to perform activities or functions of a bartender.
Sec.
13. RCW
68.50.107 and 1995 c 398 s 10 are each amended to read as follows:
There
shall be established in conjunction with the University of Washington Medical
School and under the authority of the state forensic investigations council a
state toxicological laboratory under the direction of the state toxicologist
whose duty it will be to perform all necessary toxicologic procedures requested
by all coroners, medical examiners, and prosecuting attorneys. The state
forensic investigations council shall appoint a toxicologist as state
toxicologist. The laboratory shall be funded by disbursement from the ((class
H)) spirits, beer, and wine restaurant; spirits, beer, and wine private
club; and sports entertainment facility license fees as provided in RCW
66.08.180 and by appropriation from the death investigations account as
provided in RCW 43.79.445.
Sec.
14. RCW
66.24.290 and 1997 c 451 s 1 and 1997 c 321 s 16 are each reenacted and amended
to read as follows:
(1)
Any microbrewer or domestic brewery or beer distributor licensed under this
title may sell and deliver beer to holders of authorized licenses direct, but
to no other person, other than the board; and every such brewery or beer
distributor shall report all sales to the board monthly, pursuant to the
regulations, and shall pay to the board as an added tax for the privilege of
manufacturing and selling the beer within the state a tax of one dollar and
thirty cents per barrel of thirty-one gallons on sales to licensees within the
state and on sales to licensees within the state of bottled and canned beer
shall pay a tax computed in gallons at the rate of one dollar and thirty cents
per barrel of thirty-one gallons. Any brewery or beer distributor whose applicable
tax payment is not postmarked by the twentieth day following the month of sale
will be assessed a penalty at the rate of two percent per month or fraction
thereof. Beer shall be sold by breweries and distributors in sealed barrels or
packages. The moneys collected under this subsection shall be distributed as
follows: (a) Three-tenths of a percent shall be distributed to border areas
under RCW 66.08.195; and (b) of the remaining moneys: (i) Twenty percent shall
be distributed to counties in the same manner as under RCW 66.08.200; and (ii)
eighty percent shall be distributed to incorporated cities and towns in the
same manner as under RCW 66.08.210.
(2)
An additional tax is imposed on all beer subject to tax under subsection (1) of
this section. The additional tax is equal to two dollars per barrel of
thirty-one gallons. All revenues collected during any month from this
additional tax shall be deposited in the violence reduction and drug
enforcement account under RCW 69.50.520 by the twenty-fifth day of the
following month.
(3)(a)
An additional tax is imposed on all beer subject to tax under subsection (1) of
this section. The additional tax is equal to ninety-six cents per barrel of
thirty-one gallons through June 30, 1995, two dollars and thirty-nine cents per
barrel of thirty-one gallons for the period July 1, 1995, through June 30,
1997, and four dollars and seventy-eight cents per barrel of thirty-one gallons
thereafter.
(b)
The additional tax imposed under this subsection does not apply to the sale of
the first sixty thousand barrels of beer each year by breweries that are
entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on
July 1, 1993, or such subsequent date as may be provided by the board by rule
consistent with the purposes of this exemption.
(c)
All revenues collected from the additional tax imposed under this subsection
(3) shall be deposited in the health services account under RCW 43.72.900.
(4)
An additional tax is imposed on all beer that is subject to tax under
subsection (1) of this section that is in the first sixty thousand barrels of
beer by breweries that are entitled to a reduced rate of tax under 26 U.S.C.
Sec. 5051, as existing on July 1, 1993, or such subsequent date as may be
provided by the board by rule consistent with the purposes of the exemption
under subsection (3)(b) of this section. The additional tax is equal to one
dollar and forty-eight and two-tenths cents per barrel of thirty-one gallons.
By the twenty-fifth day of the following month, three percent of the revenues
collected from this additional tax shall be distributed to border areas under
RCW 66.08.195 and the remaining moneys shall be transferred to the state
general fund.
(5)
The board may make refunds for all taxes paid on beer exported from the
state for use outside the state.
(6)
The board may require filing with the board of a bond to be approved by it, in
such amount as the board may fix, securing the payment of the tax. If any
licensee fails to pay the tax when due, the board may forthwith suspend or
cancel his or her license until all taxes are paid.
(7)
The tax imposed under this section shall not apply to "strong beer"
as defined in this title.
NEW
SECTION. Sec. 15. RCW
66.24.300 (Refunds for taxes paid on exported beer--Bond securing
tax payment) and 1995 c 232 s 5, 1951 c 93 s 1, & 1937 c 217 s 2 are each
repealed.
