SSB 5644 -
By Senators Holmquist Newbry, Harper
ADOPTED 06/29/2013
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 66.24.055 and 2012 c 2 s 105 (Initiative Measure No.
1183) are each amended to read as follows:
(1) There is a license for spirits distributors to (a) sell spirits
purchased from manufacturers, distillers, or suppliers including,
without limitation, licensed Washington distilleries, licensed spirits
importers, other Washington spirits distributors, or suppliers of
foreign spirits located outside of the United States, to spirits
retailers including, without limitation, spirits retail licensees,
special occasion license holders, interstate common carrier license
holders, restaurant spirits retailer license holders, spirits, beer,
and wine private club license holders, hotel license holders, sports
entertainment facility license holders, and spirits, beer, and wine
nightclub license holders, and to other spirits distributors; and (b)
export the same from the state.
(2) By January 1, 2012, the board must issue spirits distributor
licenses to all applicants who, upon December 8, 2011, have the right
to purchase spirits from a spirits manufacturer, spirits distiller, or
other spirits supplier for resale in the state, or are agents of such
supplier authorized to sell to licensees in the state, unless the board
determines that issuance of a license to such applicant is not in the
public interest.
(3)(a) As limited by (b) of this subsection and subject to (c) of
this subsection, each spirits distributor licensee must pay to the
board, for deposit into the liquor revolving fund, a license issuance
fee calculated as follows:
(i) In each of the first ((two years)) twenty-seven months of
licensure, ten percent of the total revenue from all the licensee's
sales of spirits made during the ((year)) month for which the fee is
due, respectively; and
(ii) In the ((third year)) twenty-eighth month of licensure and
each ((year)) month thereafter, five percent of the total revenue from
all the licensee's sales of spirits made during the ((year)) month for
which the fee is due, respectively.
(b) The fee required under this subsection (3) is calculated only
on sales of items which the licensee was the first spirits distributor
in the state to have received:
(i) In the case of spirits manufactured in the state, from the
distiller; or
(ii) In the case of spirits manufactured outside the state, from an
authorized out-of-state supplier.
(c) By March 31, 2013, all persons holding spirits distributor
licenses on or before March 31, 2013, must have paid collectively one
hundred fifty million dollars or more in spirits distributor license
fees. If the collective payment through March 31, 2013, totals less
than one hundred fifty million dollars, the board must, according to
rules adopted by the board for the purpose, collect by May 31, 2013, as
additional spirits distributor license fees the difference between one
hundred fifty million dollars and the actual receipts, allocated among
persons holding spirits distributor licenses at any time on or before
March 31, 2013, ratably according to their spirits sales made during
calendar year 2012. Any amount by which such payments exceed one
hundred fifty million dollars by March 31, 2013, must be credited to
future license issuance fee obligations of spirits distributor
licensees according to rules adopted by the board.
(d) A retail licensee selling for resale must pay a distributor
license fee under the terms and conditions in this section on resales
of spirits the licensee has purchased on which no other distributor
license fee has been paid. The board must establish rules setting
forth the frequency and timing of such payments and reporting of sales
dollar volume by the licensee, with payments due quarterly in arrears.
(e) No spirits inventory may be subject to calculation of more than
a single spirits distributor license issuance fee.
(4) In addition to the payment set forth in subsection (3) of this
section, each spirits distributor licensee renewing its annual license
must pay an annual license renewal fee of one thousand three hundred
twenty dollars for each licensed location.
(5) There is no minimum facility size or capacity for spirits
distributor licenses, and no limit on the number of such licenses
issued to qualified applicants. License applicants must provide
physical security of the product that is substantially as effective as
the physical security of the distribution facilities currently operated
by the board with respect to preventing pilferage. License issuances
and renewals are subject to RCW 66.24.010 and the regulations
promulgated thereunder, including without limitation rights of cities,
towns, county legislative authorities, the public, churches, schools,
and public institutions to object to or prevent issuance of local
liquor licenses. However, existing distributor premises licensed to
sell beer and/or wine are deemed to be premises "now licensed" under
RCW 66.24.010(9)(a) for the purpose of processing applications for
spirits distributor licenses.
NEW SECTION. Sec. 2 The changes made in section 1 of this act
apply to spirits distributors licensed on or after January 1, 2012.
NEW SECTION. Sec. 3 A new section is added to chapter 66.24 RCW
to read as follows:
(1) Beginning on the effective date of this section, the license
issuance fee under RCW 66.24.630(4) does not apply to a spirits retail
licensee that was a contract liquor store manager with respect to sales
of spirits in original containers from the location of its spirits
retail licensed premises to retailers licensed to sell spirits for
consumption on the premises for resale at their licensed premises.
(2) Beginning on the effective date of this section, the license
issuance fee under RCW 66.24.630(4) does not apply to a spirits retail
licensee that was a former state store auction buyer, with respect to
sales of spirits in original containers from the location of its
spirits retail licensed premises to retailers licensed to sell spirits
for consumption on the premises for resale at their licensed premises.
(3) The exemptions created in this section attach to any successor,
by purchase or otherwise, to the spirits retail license, except that an
exemption does not attach to any such successor that owns, directly or
indirectly, any interest in a spirits retail license that is not
derived directly from a former contract liquor store manager or a
former state store auction buyer.
NEW SECTION. Sec. 4 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
immediately."
SSB 5644 -
By Senators Holmquist Newbry, Harper
ADOPTED 06/29/2013
On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "license issuance fees of former contract liquor stores, former state store auction buyers, and spirits distributors; amending RCW 66.24.055; adding a new section to chapter 66.24 RCW; creating a new section; and declaring an emergency."
EFFECT: Provides that the spirits distributors must pay the 10
percent license issuance fee for an additional 3 months (a total of 27
months instead of the original 24 months) and the reduction to the 5
percent license issuance fee occurs at the 28th month.
Effective immediately, the 17 percent license issuance fee does not
apply to former state contract liquor stores and former state liquor
stores bought at auction, with respect to sales of spirits to
restaurants and bars.