BILL REQ. #:  H-1475.3 

Read first time 02/21/2003.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to the liquor control board fully implementing a retail business plan; amending RCW 66.08.030 and 66.08.060; adding new sections to chapter 66.08 RCW; creating a new section; and repealing RCW 66.16.080.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature intends that the liquor control board shall generate additional revenues to increase distributions to state and local governments from the liquor revolving fund. Pursuant to RCW 66.08.190, fifty percent of the funds are distributed to local governments and fifty percent are distributed to the state general fund. The legislature further intends that the liquor control board optimize retail outlet resources to serve the public through implementing a retail business plan by expanding hours of sales to include Sundays, and devising and implementing additional strategies and programs to maximize revenue-generating opportunities.

NEW SECTION.  Sec. 2   A new section is added to chapter 66.08 RCW to read as follows:
     The board shall immediately devise a retail business plan to implement strategies to improve retail sales operations and maximize revenue-generating opportunities. Strategies to be implemented shall include but are not limited to:
     (1) Expanding hours of retail sales operations by including Sunday sales in liquor stores according to section 3 of this act;
     (2) Implementing a plan of in-store merchandising, including point-of-sale advertising, and product specific point-of-sale promotional displays and carousels, including displays designed and provided by vendors;
     (3) Implementing a plan for in-store merchandising of brands and gift packs; and
     (4) Sales of liquor related items and products.

NEW SECTION.  Sec. 3   A new section is added to chapter 66.08 RCW to read as follows:
     (1) By November 1, 2003, the board shall implement a plan to open for business on Sunday at least fifty state-operated retail stores that had gross sales of two million dollars or more during calendar year 2002 and will implement the board's retail business plan.
     (2) By July 1, 2004, the board shall implement a plan to open for business on Sunday at least fifty additional state-operated retail stores that had gross sales of two million dollars or more during calendar year 2002 and will implement the board's retail business plan.
     (3) By November 1, 2004, the board shall implement a plan to open for business on Sunday the remainder of those state-operated stores that will best implement the board's retail business plan.
     (4) The board shall allow all agency retail stores to open for business on Sunday.
     (5) The board shall not raise retail prices pursuant to RCW 66.16.010 beyond the surcharges and percentage markup in effect on January 1, 2003, until the board has implemented subsections (1) and (2) of this section.

Sec. 4   RCW 66.08.030 and 2002 c 119 s 2 are each amended to read as follows:
     (1) For the purpose of carrying into effect the provisions of this title according to their true intent or of supplying any deficiency therein, the board may make such ((regulations)) rules not inconsistent with the spirit of this title as are deemed necessary or advisable. All ((regulations so made)) rules shall be a public record and shall be filed in the office of the code reviser, and ((thereupon)) shall have the same force and effect as if incorporated in this title. ((Such regulations)) These rules, together with a copy of this title, shall be published in pamphlets and shall be distributed as directed by the board.
     (2) Without ((thereby)) limiting the generality of the provisions contained in subsection (1) of this section, it is declared that the power of the board to make ((regulations)) rules in the manner set out in that subsection shall extend to:
     (a) Regulating the equipment and management of stores and warehouses in which state liquor is sold or kept, and prescribing the books and records to be kept therein and the reports to be made thereon to the board;
     (b) Prescribing the duties of the employees of the board, and regulating their conduct in the discharge of their duties;
     (c) Governing the purchase of liquor by the state and the furnishing of liquor to stores established under this title;
     (d) Determining the classes, varieties, and brands of liquor to be kept for sale at any store;
     (e) Prescribing((, subject to RCW 66.16.080,)) the hours during which the state liquor stores shall be kept open for the sale of liquor;
     (f) Providing for the issuing and distributing of price lists showing the price to be paid by purchasers for each variety of liquor kept for sale under this title;
     (g) Prescribing an official seal and official labels and stamps and determining the manner in which they shall be attached to every package of liquor sold or sealed under this title, including the prescribing of different official seals or different official labels for different classes of liquor;
     (h) Providing for the payment by the board in whole or in part of the carrying charges on liquor shipped by freight or express;
     (i) Prescribing forms to be used for purposes of this title or the ((regulations)) rules, and the terms and conditions to be contained in permits and licenses issued under this title, and the qualifications for receiving a permit or license issued under this title, including a criminal history record information check. The board may submit the criminal history record information check to the Washington state patrol and to the identification division of the federal bureau of investigation in order that these agencies may search their records for prior arrests and convictions of the individual or individuals who filled out the forms. The board shall require fingerprinting of any applicant whose criminal history record information check is submitted to the federal bureau of investigation;
     (j) Prescribing the fees payable in respect of permits and licenses issued under this title for which no fees are prescribed in this title, and prescribing the fees for anything done or permitted to be done under the ((regulations)) rules;
     (k) Prescribing the kinds and quantities of liquor which may be kept on hand by the holder of a special permit for the purposes named in the permit, regulating the manner in which the same shall be kept and disposed of, and providing for the inspection of the same at any time at the instance of the board;
     (l) Regulating the sale of liquor kept by the holders of licenses which entitle the holder to purchase and keep liquor for sale;
     (m) Prescribing the records of purchases or sales of liquor kept by the holders of licenses, and the reports to be made thereon to the board, and providing for inspection of the records so kept;
     (n) Prescribing the kinds and quantities of liquor for which a prescription may be given, and the number of prescriptions which may be given to the same patient within a stated period;
     (o) Prescribing the manner of giving and serving notices required by this title or the ((regulations)) rules, where not otherwise provided for in this title;
     (p) Regulating premises in which liquor is kept for export from the state, or from which liquor is exported, prescribing the books and records to be kept therein and the reports to be made thereon to the board, and providing for the inspection of the premises and the books, records and the liquor so kept;
     (q) Prescribing the conditions and qualifications requisite for the obtaining of club licenses and the books and records to be kept and the returns to be made by clubs, prescribing the manner of licensing clubs in any municipality or other locality, and providing for the inspection of clubs;
     (r) Prescribing the conditions, accommodations, and qualifications requisite for the obtaining of licenses to sell beer and wines, and regulating the sale of beer and wines ((thereunder));
     (s) Specifying and regulating the time and periods when, and the manner, methods, and means by which manufacturers shall deliver liquor within the state; and the time and periods when, and the manner, methods, and means by which liquor may lawfully be conveyed or carried within the state;
     (t) Providing for the making of returns by brewers of their sales of beer shipped within the state, or from the state, showing the gross amount of ((such)) the sales and providing for the inspection of brewers' books and records, and for the checking of the accuracy of any ((such)) returns;
     (u) Providing for the making of returns by the wholesalers of beer whose breweries are located beyond the boundaries of the state;
     (v) Providing for the making of returns by any other liquor manufacturers, showing the gross amount of liquor produced or purchased, the amount sold within and exported from the state, and to whom so sold or exported, and providing for the inspection of the premises of any ((such)) liquor manufacturers, their books and records, and for the checking of any ((such)) return;
     (w) Providing for the giving of fidelity bonds by any or all of the employees of the board((: PROVIDED, That)). However, the premiums ((therefor)) shall be paid by the board;
     (x) Providing for the shipment by mail or common carrier of liquor to any person holding a permit and residing in any unit which has, by election pursuant to this title, prohibited the sale of liquor therein;
     (y) Prescribing methods of manufacture, conditions of sanitation, standards of ingredients, quality and identity of alcoholic beverages manufactured, sold, bottled, or handled by licensees and the board; and conducting from time to time, in the interest of the public health and general welfare, scientific studies and research relating to alcoholic beverages and the use and effect thereof;
     (z) Seizing, confiscating, and destroying all alcoholic beverages manufactured, sold, or offered for sale within this state which do not conform in all respects to the standards prescribed by this title or the ((regulations)) rules of the board((: PROVIDED, Nothing herein contained shall be construed as authorizing)). The liquor board ((to)) may not prescribe, alter, limit, or in any way change the present law as to the quantity or percentage of alcohol used in the manufacturing of wine or other alcoholic beverages.

Sec. 5   RCW 66.08.060 and 1933 ex.s. c 62 s 43 are each amended to read as follows:
     (1) The board shall not advertise liquor in any form or through any medium whatsoever.
     (2) The following is not considered advertising for the purposes of this section:
     (a) Placement of signs that are visible through the window of retail stores;
     (b) Use of media designed to be informational regarding locations or hours of operation of retail outlets; and
     (c) In-store merchandising, including point-of-sale advertising, and product specific point-of-sale promotional displays and carousels, including displays designed and provided by vendors.
     (3) The board shall have power to adopt any and all reasonable ((regulations)) rules as to the kind, character, and location of advertising of liquor.

NEW SECTION.  Sec. 6   RCW 66.16.080 (Sunday closing) and 1988 c 101 s 1 & 1933 ex.s. c 62 s 11 are each repealed.