HB 2240 -
By Committee on Labor, Commerce, Research & Development
NOT ADOPTED 04/10/2007
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 66.28.010 and 2006 c 330 s 28, 2006 c 92 s 1, and
2006 c 43 s 1 are each reenacted and amended to read as follows:
(1)(a) No manufacturer, importer, distributor, or authorized
representative, or person financially interested, directly or
indirectly, in such business; whether resident or nonresident, shall
have any financial interest, direct or indirect, in any licensed retail
business, unless the retail business is owned by a corporation in which
a manufacturer or importer has no direct stock ownership and there are
no interlocking officers and directors, the retail license is held by
a corporation that is not owned directly or indirectly by a
manufacturer or importer, the sales of liquor are incidental to the
primary activity of operating the property as a hotel, alcoholic
beverages produced by the manufacturer or importer or their
subsidiaries are not sold at the licensed premises, and the board
reviews the ownership and proposed method of operation of all involved
entities and determines that there will not be an unacceptable level of
control or undue influence over the operation or the retail licensee;
nor shall any manufacturer, importer, distributor, or authorized
representative own any of the property upon which such licensed persons
conduct their business; nor shall any such licensed person, under any
arrangement whatsoever, conduct his or her business upon property in
which any manufacturer, importer, distributor, or authorized
representative has any interest unless title to that property is owned
by a corporation in which a manufacturer has no direct stock ownership
and there are no interlocking officers or directors, the retail license
is held by a corporation that is not owned directly or indirectly by
the manufacturer, the sales of liquor are incidental to the primary
activity of operating the property either as a hotel or as an
amphitheater offering live musical and similar live entertainment
activities to the public, alcoholic beverages produced by the
manufacturer or any of its subsidiaries are not sold at the licensed
premises, and the board reviews the ownership and proposed method of
operation of all involved entities and determines that there will not
be an unacceptable level of control or undue influence over the
operation of the retail licensee. Except as provided in subsection (3)
of this section, no manufacturer, importer, distributor, or authorized
representative shall advance moneys or moneys' worth to a licensed
person under an arrangement, nor shall such licensed person receive,
under an arrangement, an advance of moneys or moneys' worth. "Person"
as used in this section only shall not include those state or federally
chartered banks, state or federally chartered savings and loan
associations, state or federally chartered mutual savings banks, or
institutional investors which are not controlled directly or indirectly
by a manufacturer, importer, distributor, or authorized representative
as long as the bank, savings and loan association, or institutional
investor does not influence or attempt to influence the purchasing
practices of the retailer with respect to alcoholic beverages. Except
as otherwise provided in this section, no manufacturer, importer,
distributor, or authorized representative shall be eligible to receive
or hold a retail license under this title, nor shall such manufacturer,
importer, distributor, or authorized representative sell at retail any
liquor as herein defined. A corporation granted an exemption under
this subsection may use debt instruments issued in connection with
financing construction or operations of its facilities.
(b) Nothing in this section shall prohibit a licensed domestic
brewery or microbrewery from being licensed as a retailer pursuant to
chapter 66.24 RCW for the purpose of selling beer or wine at retail on
the brewery premises and nothing in this section shall prohibit a
domestic winery from being licensed as a retailer pursuant to chapter
66.24 RCW for the purpose of selling beer or wine at retail on the
winery premises. Such beer and wine so sold at retail shall be subject
to the taxes imposed by RCW 66.24.290 and 66.24.210 and to reporting
and bonding requirements as prescribed by regulations adopted by the
board pursuant to chapter 34.05 RCW, and beer and wine that is not
produced by the brewery or winery shall be purchased from a licensed
beer or wine distributor.
(c) Nothing in this section shall prohibit a licensed distiller,
domestic brewery, microbrewery, domestic winery, or a lessee of a
licensed domestic brewer, microbrewery, or domestic winery, from being
licensed as a spirits, beer, and wine restaurant pursuant to chapter
66.24 RCW for the purpose of selling liquor at a spirits, beer, and
wine restaurant premises on the property on which the primary
manufacturing facility of the licensed distiller, domestic brewer,
microbrewery, or domestic winery is located or on contiguous property
owned or leased by the licensed distiller, domestic brewer,
microbrewery, or domestic winery as prescribed by rules adopted by the
board pursuant to chapter 34.05 RCW.
(d) Nothing in this section prohibits retail licensees with a
caterer's endorsement issued under RCW 66.24.320 or 66.24.420 from
operating on a domestic winery premises.
(e) Nothing in this section prohibits an organization qualifying
under RCW 66.24.375 formed for the purpose of constructing and
operating a facility to promote Washington wines from holding retail
licenses on the facility property or leasing all or any portion of such
facility property to a retail licensee on the facility property if the
members of the board of directors or officers of the board for the
organization include officers, directors, owners, or employees of a
licensed domestic winery. Financing for the construction of the
facility must include both public and private money.
(f) Nothing in this section prohibits a bona fide charitable
nonprofit society or association registered as a 501(c)(3) under the
internal revenue code and having an officer, director, owner, or
employee of a licensed domestic winery or a wine certificate of
approval holder on its board of directors from holding a special
occasion license under RCW 66.24.380.
(g)(i) Nothing in this section prohibits domestic wineries and
retailers licensed under chapter 66.24 RCW from ((jointly)) producing
jointly or together with regional, state, or local wine industry
associations, brochures and materials promoting tourism in Washington
state which contain information regarding retail licensees, domestic
wineries, and their products.
(ii) Nothing in this section prohibits: (A) Domestic wineries,
domestic breweries, microbreweries, and certificate of approval holders
licensed under this chapter from listing on their internet web sites
information related to retailers who sell or promote their products,
including direct links to the retailers' internet web sites; and (B)
retailers licensed under this chapter from listing on their internet
web sites information related to domestic wineries, domestic breweries,
microbreweries, and certificate of approval holders whose products
those retailers sell or promote, including direct links to the domestic
wineries', domestic breweries', microbreweries', and certificate of
approval holders' web sites.
(h) Nothing in this section prohibits the performance of personal
services offered from time to time by a domestic winery or certificate
of approval holder licensed under RCW 66.24.206(1)(a) for or on behalf
of a licensed retail business when the personal services are (i)
conducted at a licensed premises, and (ii) intended to inform, educate,
or enhance customers' knowledge or experience of the manufacturer's
products. The performance of personal services may include
participation and pouring at the premises of a retailer holding a
spirits, beer, and wine restaurant license, a wine and/or beer
restaurant license, or a speciality wine shop license; bottle signings;
and other similar informational or educational activities. A domestic
winery, domestic brewery, microbrewery, or certificate of approval
holder is not obligated to perform any such personal services, and a
retail licensee may not require a domestic winery, domestic brewery,
microbrewery, or certificate of approval holder to conduct any personal
service as a condition for selling any alcohol to the retail licensee.
Except as provided in RCW 66.28.150, the cost of sampling may not be
borne, directly or indirectly, by any liquor manufacturer, importer, or
distributor. Nothing in this section prohibits domestic wineries and
retail licensees from identifying the wineries on private labels
authorized under RCW 66.24.400, 66.24.425, and 66.24.450.
(i) Until July 1, 2007, nothing in this section prohibits a
nonprofit statewide organization of microbreweries formed for the
purpose of promoting Washington's craft beer industry as a trade
association registered as a 501(c) with the internal revenue service
from holding a special occasion license to conduct up to six beer
festivals.
(2) Financial interest, direct or indirect, as used in this
section, shall include any interest, whether by stock ownership,
mortgage, lien, or through interlocking directors, or otherwise.
Pursuant to rules promulgated by the board in accordance with chapter
34.05 RCW manufacturers, distributors, and importers may perform, and
retailers may accept the service of building, rotating and restocking
case displays and stock room inventories; rotating and rearranging can
and bottle displays of their own products; provide point of sale
material and brand signs; price case goods of their own brands; and
perform such similar normal business services as the board may by
regulation prescribe.
(3)(a) This section does not prohibit a manufacturer, importer, or
distributor from providing services to a special occasion licensee for:
(i) Installation of draft beer dispensing equipment or advertising,
(ii) advertising, pouring, or dispensing of beer or wine at a beer or
wine tasting exhibition or judging event, or (iii) a special occasion
licensee from receiving any such services as may be provided by a
manufacturer, importer, or distributor. Nothing in this section shall
prohibit a retail licensee, or any person financially interested,
directly or indirectly, in such a retail licensee from having a
financial interest, direct or indirect, in a business which provides,
for a compensation commensurate in value to the services provided,
bottling, canning or other services to a manufacturer, so long as the
retail licensee or person interested therein has no direct financial
interest in or control of said manufacturer.
(b) A person holding contractual rights to payment from selling a
liquor distributor's business and transferring the license shall not be
deemed to have a financial interest under this section if the person
(i) lacks any ownership in or control of the distributor, (ii) is not
employed by the distributor, and (iii) does not influence or attempt to
influence liquor purchases by retail liquor licensees from the
distributor.
(c) The board shall adopt such rules as are deemed necessary to
carry out the purposes and provisions of subsections (1)(g) and (h) and
(3)(a) of this section in accordance with the administrative procedure
act, chapter 34.05 RCW.
(4) A license issued under RCW 66.24.395 does not constitute a
retail license for the purposes of this section.
(5) A public house license issued under RCW 66.24.580 does not
violate the provisions of this section as to a retailer having an
interest directly or indirectly in a liquor-licensed manufacturer.
Sec. 2 RCW 66.28.150 and 2004 c 160 s 14 are each amended to read
as follows:
A domestic brewery, microbrewery, domestic winery, distillery,
distributor, certificate of approval holder, or its licensed agent may,
without charge, instruct licensees and their employees, or conduct
courses of instruction for licensees and their employees, including
chefs, on the subject of beer, wine, or spirituous liquor, including
but not limited to, the history, nature, values, and characteristics of
beer, wine, or spirituous liquor, the use of wine lists, and the
methods of presenting, serving, storing, and handling beer, wine, or
spirituous liquor, and what wines go well with different types of food.
The domestic brewery, microbrewery, domestic winery, distillery,
distributor, certificate of approval holder, or its licensed agent may
furnish beer, wine, or spirituous liquor and such other equipment,
materials, and utensils as may be required for use in connection with
the instruction or courses of instruction. The instruction or courses
of instruction may be given at the premises of the domestic brewery,
microbrewery, domestic winery, distillery, or authorized representative
holding a certificate of approval, at the premises of a retail
licensee, or elsewhere within the state of Washington."
HB 2240 -
By Committee on Labor, Commerce, Research & Development
NOT ADOPTED 04/10/2007
On page 1, line 3 of the title, after "wine;" strike the remainder of the title and insert "amending RCW 66.28.150; and reenacting and amending RCW 66.28.010."