HOUSE BILL REPORT

HB 2858

BYRepresentatives Cole, Smith, R. King, Wolfe, Leonard, Jones, Vekich, Prentice, Walker and Van Luven  

Authorizing business entertainment practices for liquor importers, wholesalers, or manufacturers. 

House Committe on Commerce & Labor 

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (10) 

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, O'Brien, Prentice and Wolfe.

House Staff:Jim Kelley (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR JANUARY 30, 1990

BACKGROUND:

Under the "tied-house" law, liquor manufacturers, importers, and wholesalers are prohibited from advancing moneys or moneys' worth to licensed retailers.  The Liquor Control Board has interpreted this provision (based on an Attorney General opinion) to be an unqualified prohibition on gifts, such as food and sports tickets.

In 1989, a bill was introduced which would have allowed liquor manufacturers, importers, and wholesalers to provide to licensed retailers and their employees:  1) food and beverages for consumption at a meeting at which the primary purpose is the discussion of business; 2) tickets or admission fees for athletic events or other forms of entertainment in the state, and food and beverages for consumption at such events, if the manufacturer, importer, or wholesaler accompanies the retailer to the event; and 3) transportation to and from allowed activities in the private vehicle of the manufacturer, importer, or wholesaler.  The bill passed both houses of the Legislature but was vetoed by the Governor.

SUMMARY:

SUBSTITUTE BILL:  Liquor manufacturers, importers, and wholesalers may provide to licensed retailers:  1) food and beverage for consumption at a meeting at which the primary purpose is discussion of business; 2) tickets or admission fees for athletic events or other forms of entertainment and food and beverages for consumption at such events, as long as the manufacturer, importer, wholesaler, or its employees accompany the retailer to the event; and 3) local ground transportation, to and from allowed activities.  These provisions expire on June 30, 1995.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill consists of two new sections, one dealing with providing food and beverages and the other dealing with providing athletic tickets.  In the original bill, these two forms of entertainment are included within one section of the bill, under the definition of "business entertainment practices."

The substitute bill clarifies that not only licensed retailers, but also the employees of licensed retailers, may be the recipients of the entertainment activities allowed by this bill.

Fiscal Note:      Requested January 28, 1990.

House Committee ‑ Testified For:    Becky Bogard, Seattle Seahawks; Celia Fritz, Anheuser-Busch; Dick Ducharme, Washington Beer and Wine Wholesaler Association; Jim Halstrom, Joseph E. Seagram and Sons; Steve Wehrly, Miller Brewing Company.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This bill is an attempt to bring the law into conformity with normal business practices.  It is patterned after Oregon law and is not inconsistent with the rationale behind the Tied-house law. Another effect of the bill will be to help support small events such as county fairs, because it will clear up confusion about what manufacturers, importers, and wholesalers may do.

House Committee - Testimony Against:      None.