Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Commerce & Gaming Committee

HB 2727

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.

Brief Summary of Bill

Establishes the spirits, beer, and wine school-operated restaurant license to sell certain alcoholic beverages on the premises of a restaurant that is part of a course or training program for students of a postsecondary institution.
Provides that a spirits, beer, and wine school-operated restaurant license may have lower hours of operation and complete meal requirements than provided under the spirits, beer, and wine restaurant license.
Requires the Liquor and Cannabis Board to establish rules for the spirits, beer, and wine restaurant license related to certain food service requirements.

Background:

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

There are two licenses for retail sales of liquor at restaurants:

a beer and/or wine restaurant license which allows for the sale of beer, strong beer, or wine for consumption on the premises; and
a spirits, beer, and wine restaurant license which allows for the sale of spirits, beer, and wine by the individual glass for consumption on the premises, including mixed drinks and cocktails compounded or mixed on the premises.

For the spirits, beer, and wine restaurant license, licensees must serve complete meals and meet specific food service, kitchen equipment, and floor space requirements, as defined by the LCB in rule.

All spirits, beer, and wine licensees must establish that the premises will operate as a bona fide restaurant. The term "bona fide restaurant" means a business where the board can clearly determine that the primary purpose of the business is the service of complete meals.

By rule, the LCB requires spirits, beer, and wine restaurant licensees to serve at least eight complete meals. A complete meal is defined in rule as an entrée and at least one side dish. Side dishes are not required to be included with the entrée, however must be offered. The LCB may make an exception to the eight complete meal requirement on a case-by-case basis.

To obtain and maintain a spirits, beer, and wine restaurant license, the restaurant must be open to the public three days a week, at least five hours a day during the hours of 8:00 a.m. and 11:00 p.m.

Summary of Bill:

The bill establishes the spirits, beer, and wine school-operated restaurant license. Eligible licensees are authorized to sell individual glasses of liquor, beer, and wine at retail for on premises consumption, subject to restrictions. The license issuance and annual renewal fee is $1,000.

A spirits, beer, and wine school-operated restaurant license may only be issued to postsecondary institutions who will use the license as part of a course or training program for students of the postsecondary institution.

The Liquor and Cannabis Board (LCB) is required to establish rules for the spirits, beer, and wine school-operated restaurant license. The food service requirements may include requirements to serve complete meals when open to the public, but may not require a licensee to serve as many complete meals as the LCB requires under the spirits, beer, and wine restaurant license. A licensee may establish its own hours of operation.

Except the food service requirements above, the spirits, beer, and wine school-operated restaurant license provides licensees all the privileges and limitations of a spirits, beer, and wine restaurant license.

The same alcohol server training required under spirits, beer, and wine restaurant license apply to workers, students, and any person who engages in the sale or service of liquor under the spirits, beer, and wine school-operated restaurant license.