SB 6220 -
By Senator Honeyford
NOT ADOPTED 03/04/2014
On page 1, after line 9, insert the following:
"Sec. 2 RCW 66.24.055 and 2013 2nd sp.s. c 12 s 1 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) Sell spirits in their original containers to consumers from the
distributors' licensed premises; and
(c) 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 twenty-seven months of licensure, ten
percent of the total revenue from all the licensee's sales of spirits
made during the month for which the fee is due, respectively; and
(ii) In the twenty-eighth month of licensure and each month
thereafter, five percent of the total revenue from all the licensee's
sales of spirits made during the 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."
SB 6220 -
By Senator Honeyford
NOT ADOPTED 03/04/2014
On page 1, line 2, after "resale;" insert "amending RCW 66.24.055;"