Sponsors: Senate Committee on Commerce & Trade (originally sponsored by Senators Hewitt, McAuliffe, Honeyford and Eide).

Brief Summary of Substitute Bill

• Permits caterers licensed to sell alcoholic beverages to operate on the premises of wineries, under certain conditions.

Majority Report: Do pass. Signed by 8 members: Representatives Conway, Chair; Wood, Vice Chair; McMorris, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Crouse, Holmquist, Kenney and McCoy.

Restaurants that are licensed by the Liquor Control Board (Board) to sell either beer and wine only or hard liquor also may obtain a caterer's endorsement that permits them to sell these alcoholic beverages off the licensed premises at special event locations. Events must be either sponsored by a non-profit society, in which case the public may attend, or limited to members and their guests.

Under Washington's three-tier liquor control system, caterers, like other licensed retailers, are prohibited from operating on property owned by a manufacturer, importer or distributor of alcoholic beverages. This means caterers cannot operate on the premises of a winery, brewery or distillery.

Caterers that have an endorsement permitting them to sell either beer and wine or hard liquor also may sell on the premises of a Washington winery under the following conditions:

• Agreements between the winery and the caterer are in writing, filed with the Board, and do not contain exclusivity clauses regarding alcohol to be served; and

• The event sponsors have separate contracts with the winery and the caterer, and pay them separately for their services.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: A winery can sell its own product under current law, but cannot sell a wider variety of alcoholic beverages. Wineries are a popular spot for weddings, and many people are interested in serving sparkling wine at weddings, but you cannot do that at a winery unless the sparkling wine is produced there.

Persons Testifying: Lorraine Lee, Liquor Control Board; Michael Transue, Washington Restaurant Association; and Jean Leonard, Washington Wine Institute.