Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Commerce & Gaming Committee

HB 2192

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

The Liquor and Cannabis Board (LCB) issues various types of commercial liquor licenses for selling liquor for both off and on-premises consumption, including those for restaurants, beer and/or wine specialty shops, wineries, microbreweries, domestic breweries, and nightclubs.

In addition to issuing liquor licenses to commercial entities, the LCB issues a variety of special permits for selling, serving, and handling alcohol at specified events or to persons or entities that do not hold a liquor license. Many special permits are of limited duration for a specified purpose or event, or are issued for a purpose falling outside the commercial activities ordinarily engaged in by a licensee.

Special Event Permits. The LCB issues a variety of special permits for serving and selling liquor. An example of a special permit is to allow a bed and breakfast facility to serve beer and wine without charge to overnight guests for on-premises consumption. Unless a fee is specified in statute, the fees for permits are generally established by the LCB by rule.

Licensed Wine Distributors. Wine distributors are licensed by the LCB. Licensed wine distributors may sell wine purchased from licensed Washington wineries, holders of a wine certificate of approval, licensed wine importers, or suppliers of foreign wine located outside of the United States, to licensed wine retailers and other wine distributors.

Short-Term Rental. Under Chapter 64.37 RCW, a "short-term rental" is defined as a lodging use that is not a hotel or motel or bed and breakfast in which a dwelling unit is offered or provided to a guest by a short-term rental operator for a fee for fewer than 30 consecutive nights. A short-term rental does not include a dwelling unit that is:

Occupied by the owner for at least 6 months during the calendar year and in which fewer than 3 rooms are rented at any time;
Used by the same person for 30 or more consecutive nights; or
Operated by an organization or government entity that is registered as a charitable organization with the state, or is classified by the federal internal revenue service as a public charity or a private foundation, and provides temporary housing to individuals who are being treated for trauma, injury, or disease, or their family members.

Summary of Bill:

A special permit from the Liquor and Cannabis Board (LCB) is established to allow short-term rental operators to provide a complimentary bottle of wine to rental guests 21 years of age or older. The annual special permit fee is $75.

A single permit applies to all rental properties owned or operated by the short-term rental operator and identified in the permit application.

A rental guest that receives a complimentary bottle of wine from a special permit holder may consume the bottle of wine on the premises, or the guest may remove and consume the bottle off the premises of the rental property.

A permit holder may purchase wine from licensed wine distributors, in addition to retailers and other suppliers of wine authorized to sell wine at retail to consumers for off-premises consumption under Title 66 RCW.

A licensed wine distributor may sell wine to a holder of a special permit that allows short-term rental operators to provide a complimentary bottle of wine to rental guests 21 years of age or older.