HOUSE BILL REPORT

ESB 5265

As Amended by the House

BYSenator Warnke; by request of Liquor Control Board

Eliminating certain restrictions on purchase of beer by licensed beer retailers.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendment.  (11)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Joan Elgee (786-7166)

AS PASSED HOUSE APRIL 16, 1987

BACKGROUND:

Currently, retail beer licensees are required to purchase beer solely from licensed beer wholesalers.  As a result of this restriction, several government agencies find it difficult to dispose of lawfully seized beer.  In addition, retail beer licensees that are discontinuing business operations are unable to dispose of their stock, unless a wholesaler is willing to accept returned merchandise.

SUMMARY:

The entities from whom retail beer licensees may purchase beer are expanded.  Licensees may purchase beer from government agencies which have lawfully seized beer, Liquor Control Board authorized retailers, and other retailers who have discontinued business if the wholesaler has refused to accept returned beer.  The purchased beer must meet the manufacturer's quality standards.

Fiscal Note:      Requested March 20, 1987.

House Committee ‑ Testified For:    Carter Mitchell, Liquor Control Board.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The expanded authorization to purchase beer will make it easier for government agencies who have seized beer and retailers going out of business to dispose of beer.

House Committee - Testimony Against:      None Presented.