SENATE BILL REPORT

EHB 1395

As Reported By Senate Committee On:

Commerce & Trade, April 2, 2003

Title: An act relating to the catering of alcoholic beverages at special events by nonprofit organizations.

Brief Description: Concerning the catering of alcoholic beverages at events by nonprofit organizations.

Sponsors: Representatives Sullivan, Bailey, Wood, Chandler and Pflug.

Brief History:

Committee Activity: Commerce & Trade: 4/2/03 [DP].

SENATE COMMITTEE ON COMMERCE & TRADE

Majority Report: Do pass.

      Signed by Senators Honeyford, Chair; Hewitt, Vice Chair; Keiser and Mulliken.

Staff: John Dziedzic (786-7784)

Background: A "caterer's endorsement" allows Liquor Control Board-licensed taverns, restaurants, and other businesses to sell spirits and/or beer and wine for consumption at specified off-premise locations for "special occasions." Without the endorsement, liquor may be sold for consumption only at the licensee's location.

The "privilege of selling and serving liquor under such endorsement" is currently "limited to members and guests" of the sponsor of the "special occasion." The sponsor is required to be a "society or organization," as defined by RCW 66.24.375: a nonprofit "charitable, religious, social, political, educational, civic, fraternal, athletic, or benevolent" group. Current law also provides that "if attendance at the function will be limited to members and invited guests" of the sponsor, the sponsor does not need to meet the definition found in RCW 66.24.375.

Summary of Bill: If liquor is sold at a special event under a caterer's endorsement, whether the sponsor of the event needs to be a non-profit organization depends on whether the event is "open to the public" or "limited to members or invited guests."

If the event is "open to the public," the special event sponsor must be a nonprofit "society or organization," as defined by RCW 66.24.375. If the event is limited to members or invited guests of the sponsor, the sponsor does not need to meet the definition found in RCW 66.24.375.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This bill clarifies that caterers are allowed to sell alcohol at fundraising events sponsored by nonprofit organizations. Existing law addresses issues relating to liability of caterers and event sponsors.

Testimony Against: None.

Testified: Representative Brian Sullivan; Jean Leonard, WA State Arts Alliance; Michael Transue, WA Restaurant Assn.