Original Notice.

     Preproposal statement of inquiry was filed as WSR 99-06-039.

     Title of Rule: Chapter 314-02 WAC, Requirements for retail liquor licensees.

     Purpose: This chapter of rules was rewritten in April of 2000. Several issues were left undecided, and the agency has therefore been using previously-passed regulations and policies. The proposed changes shown below would consolidate several rules and codify current policies.

     Statutory Authority for Adoption: RCW 66.08.030, 66.24.010, 66.24.120.

     Statute Being Implemented: RCW 66.24.010, 66.24.120.

     Summary: This chapter of rules was rewritten in April of 2000. Several issues were left undecided, and the agency has therefore been using previously-passed regulations and policies. The proposed changes shown below would consolidate several rules and codify current policies.

     Name of Agency Personnel Responsible for Drafting: Teresa Berntsen, Rules Coordinator, 3000 Pacific Avenue S.E., Olympia, (360) 664-1648; Implementation: Chuck Dalrymple, Licensing Director, 3000 Pacific Avenue S.E., Olympia, (360) 664-1612; and Enforcement: Rick Phillips, Enforcement Director, 3000 Pacific Avenue S.E., Olympia, (360) 664-1780.

     Name of Proponent: Washington State Liquor Control Board, governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: This chapter was completely rewritten in April of 2000, and the below-described changes are being proposed for clarification.

     Proposal Changes the Following Existing Rules:

•     Add language to WAC 314-02-010 and 314-02-020 to define service bars, food counters, liquor bars, and game rooms. Currently these terms are not defined in rule. There are two reasons to define these terms and differentiate between a service bar, food counter, and liquor bar: (1) Service bars and food counters are allowed in dining areas where minors are allowed, while "liquor bars" are only allowed in lounges; and (2) by law, the fee for a spirits, beer, and wine restaurant license is based on a premises' percentage of dedicated dining area, which would not include areas that have game rooms or liquor bars.

     Language would be added to WAC 314-02-020(2) to clarify that spirits, beer, and wine premises that choose to apply as 100% dedicated dining area establishments would not be allowed live entertainment or games in the dining areas (games would be allowed in "neutral" areas such as a waiting area or foyer). If an applicant wished to have live entertainment or games in his/her dining areas, the applicant could choose to apply for the license under the $1,600 or $2,000 license fee.

•     Add language to WAC 314-02-015 to reflect a law passed during the 2001 legislative session that allows spirits, beer, and wine restaurant licensees to sell private-label wine to-go.

•     Add language to WAC 314-02-025 to codify current policy that after 10 p.m., licensees must choose between live entertainment and minors or live entertainment and liquor service in their dining room. This language would put into rule form the agency's current policy that if a restaurant licensee wishes to have live entertainment in a dining area after 10 p.m., the licensee must either:

     1. Request board approval to reclassify the dining area to a lounge, thus restricting persons under twenty-one years of age; or

     2. Notify the licensing division in writing at least forty-eight hours in advance that the sale, service, and consumption of liquor will discontinue in the entire premises.

•     Add language to WAC 314-02-025 to clarify current rule and policy regarding barriers requirements. Language would be moved to this rule from WAC 314-15-196 that requires barriers between dining rooms and lounges or game rooms to be a minimum of forty-two inches high. Current policy would also be codified to require that these barriers be fixed (as opposed to moveable).

•     Add language to WAC 314-02-025 to codify current policy about minor restrictions in game rooms after 10 p.m. Language would be added to this rule to codify current policy which states that after 10 p.m., the licensee must either:

     1. Discontinue liquor service in the game room in order to continue to allow persons under twenty-one years of age in the game room, or

     2. Restrict the game room from persons under twenty-one years of age in order to continue liquor service in the game room.

•     Amend language in WAC 314-02-030 regarding food service requirements for a spirits, beer, and wine restaurant. Language would be amended to state that spirits, beer, and wine restaurants must have four complete meals, as opposed to the current requirement that a licensee must have five complete meals but one of the meals can be a pizza, sandwich, or deep fried item. The current rule, WAC 314-16-196, causes confusion, as it essentially requires "five complete meals minus one." Requiring four complete meals will have the same end result and make the food service requirements easier to understand. Language would also be deleted that requires a chef or cook to be on duty while complete meals are offered. At one time the meal service requirements were more detailed and prescriptive. At this time staff do not see a public safety reason for this requirement.

•     Delete current policy regarding use of the term "tavern" in the trade name of a spirits, beer, and wine restaurant. By omission the proposed rule changes would delete the current policy that prohibits a spirits, beer, and wine restaurant licensee from using the word "tavern" in his/her trade name, signs, or advertising. Because the word "tavern" is a term defined in law as a place that cannot allow minors at any time and does not have any food service requirements, the Licensing and Regulation Division has not allowed taverns that convert to spirits, beer, and wine licenses to use the word "tavern" in their trade name. However, in April of 2001, the agency changed regulations to allow spirits, beer, and wine restaurant licenses to restrict minors from their premises if they choose. Thus, the term "tavern" is no longer exclusively associated with a premises that does not allow minors.

•     Add a new rule, WAC 314-02-033, to clarify that spirits, beer, and wine restaurants that exclude minors to not have to place barriers around their dedicated dining area, unless they want to pay the lesser annual licensee fee.

•     Delete the following rules, which would be no longer necessary with the above-described changes: WAC 314-02-050, 314-16-190, and 314-16-196.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. No disproportionate impact to small businesses.

     RCW 34.05.328 does not apply to this rule adoption. The Washington State Liquor Control Board is not a listed agency in RCW 34.05.328.

     Hearing Location: Liquor Control Board, Liquor Distribution Center, 4401 East Marginal Way South, Seattle, WA, on March 14, 2002, at 9 a.m.; at the Shilo Inn, Sacheen Room, East 923 Third Avenue, Spokane, WA, on March 15, 2002, at 9:30 a.m.; and at the Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA, on March 20, 2002, at 10 a.m.

     Assistance for Persons with Disabilities: Contact Teresa Berntsen by March 13, 2002, TDD (360) 586-4727, or (360) 664-1648.

     Submit Written Comments to: Teresa Berntsen, Rules Coordinator, P.O. Box 43080, Olympia, WA 98504, fax (360) 664-9689, by March 27, 2002.

     Date of Intended Adoption: April 3, 2002.

February 6, 2002

Merritt D. Long

Acting Chair

     (1) "Banquet room" means any room used primarily for the sale and service of food and liquor to private groups.

     (2) "Bar" means the following:

		Allowed in areas where persons under 21 years of age are permitted?
	(a) A "service bar" means a fixed or portable table, counter, cart, or similar work station primarily used to prepare, mix, serve, and sell liquor that is picked up by employees or customers. Customers may not be seated or allowed to consume food or liquor at a service bar.	yes
	(b) A "food counter" means a table or counter set up for the primary purpose of food service to customers who sit or stand at the counter. Any liquor served is incidental to food service.	yes
	(c) A "liquor bar" means a table or counter where liquor is stored or prepared and served to customers who sit or stand at the bar.	no

     (((2))) (3) "Customer service area" means areas where food and/or liquor are normally sold and served to the public, i.e., lounges and dining areas. A banquet room is not considered a customer service area.

     (((3))) (4) "Dedicated dining area." In order for an area to qualify as a dedicated dining area, it must be a distinct portion of a restaurant that is used primarily for the sale, service, and consumption of food, and have accommodations for eating, e.g., tables, chairs, booths, etc. See WAC 314-02-025 for more information.

     (5) "Food counter." See "bar."

     (6) "Game room" means an area of a premises set up for the primary purpose of patrons using games or gaming devices. See WAC 314-02-025(3) for more information.

     (((4))) (7) "Liquor" means beer, wine, or spirits (per RCW 66.04.010(19) - Definitions).

     (((5))) (8) "Lounge" means the portion of a restaurant used primarily for the preparation, sale, and service of beer, wine, or spirits. Persons under twenty-one years of age are not allowed in a lounge (see RCW 66.44.316 for information on employees and professional musicians under twenty-one years of age).

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-010, filed 3/15/00, effective 4/15/00.]

     Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending WSR 00-07-091, filed 3/15/00, effective 4/15/00)

WAC 314-02-015   What is a spirits, beer, and wine restaurant license?   (1) Per RCW 66.24.400, this license allows a restaurant to:

     (a) Serve spirits by the individual serving for on-premises consumption;

     (b) Serve beer by the bottle or can or by tap for on-premises consumption; and

     (c) Serve wine for on-premises consumption (see RCW 66.24.400 regarding patrons removing recorked wine from the premises).

     (2) Per RCW 66.24.400(1), this license prohibits licensees from selling alcohol for off-premises consumption((.)); except that, per RCW 66.24.400(2), a spirits, beer, and wine restaurant licensee may sell for off-premises consumption wine vinted and bottled in the state of Washington that has a label exclusive to the licensed restaurant, after receiving an endorsement from the board's licensing and regulation division.

     (3) All applicants for a spirits, beer, and wine license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant. The term "bona fide restaurant" is defined in RCW 66.24.410(2).

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-015, filed 3/15/00, effective 4/15/00.]

Amount of customer service area dedicated to dining	Annual fee
100%	$1,000
50 - 99%	$1,600
Less than 50%	$2,000

     (2) In order for an area to qualify as a dedicated dining area it must be a separate and distinct portion of a restaurant that is used primarily for the sale, service, and consumption of food, and have accommodations for eating, e.g., tables, chairs, booths, etc. Dedicated dining areas may not contain:

     (a) liquor bars (see definition in WAC 314-02-010(2));

     (b) areas dedicated to live music or entertainment, such as dance floors or stages; or

     (c) areas dedicated to games or gaming devices.

     (3) The fee for a spirits, beer, and wine restaurant license outside of an incorporated city or town will be prorated according to the calendar quarters the licensee is open for business. This proration does not apply in the case of a suspension or revocation of the license.

     (4) A duplicate license is required in order to sell liquor from more than one site on your property. These sites must be located on the same property and owned by the same licensee. The following types of businesses may apply for a duplicate license:

Type of Business	Annual fee per duplicate license
Airport terminal	25% of annual license fee
Civic center (such as a convention center)	$10
Privately owned facility open to the public	$20

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-020, filed 3/15/00, effective 4/15/00.]

     (b) notify the board's licensing and regulation division in writing at least 48 hours in advance that the sale, service, and consumption of liquor will end in the dining room after 10 p.m.

     (((1))) (2) Barriers - Licensees must place ((identifiable)) barriers around game rooms and areas that are restricted ((from)) to persons ((under)) twenty-one years of age or older. (("Minor prohibited" signs, as required by WAC 314-16-025, must be posted at each entrance to such areas.))

     (a) The barriers must clearly separate restricted areas, and must be at least 42 inches high.

     (b) The barriers must be permanently affixed (folding or retractable doors or other barriers that are permanently affixed are acceptable). Those licensees that have been approved by the board for moveable barriers prior to the effective date of this rule may keep their movable barriers until the next time the licensee remodels or the premises changes ownership.

     (c) Liquor bars cannot be used as the required barriers (see definition of liquor bar in WAC 314-02-010(2)).

     (d) Entrances to restricted areas may not be wider than ten feet. If a licensee has more than one entrance along one wall, the total entrance areas may not exceed ten feet.

     (e) "Minor prohibited" signs, as required by WAC 314-11-060(1), must be posted at each entrance to restricted areas.

     (3) Game Rooms - After 10 p.m., the licensee must either:

     (a) discontinue liquor service in the game room in order to continue to allow persons under twenty-one years of age in the game room; or

     (b) restrict the game room from persons under twenty-one years of age in order to continue liquor service in the game room. Minor prohibited signs, as required by WAC 314-11-060(1), must be posted at each entrance to the game room once the area becomes restricted.

     (((2))) (4) Floor plans - When applying for a license, the applicant must provide to the board's licensing and regulation division two copies of a detailed drawing of the entire premises. The drawing must:

     (a) Be drawn one foot to one-quarter-inch scale;

     (b) Have all rooms labeled according to their use; e.g., dining room, lounge, game room, kitchen, etc.; and

     (c) Have all barriers labeled in a descriptive way; e.g., "full wall," "half wall," etc.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-025, filed 3/15/00, effective 4/15/00.]

     (1) To exclude persons under twenty-one years of age from the entire licensed premises, the applicant or licensee must:

     (a) indicate during the liquor license application process that he/she does not wish to have persons under twenty-one years of age on the entire premises at any time; or

     (b) if already licensed as a spirits, beer, and wine restaurant that allows person under twenty-one years of age, the applicant may request permission from the board's licensing and regulation division to exclude persons under twenty-one years of age, per WAC 314-02-130.

     (c) Spirits, beer, and wine restaurant licensees who exclude persons under twenty-one years of age from the entire premises at all times must((:

     (i) place the required barriers around dedicated dining areas (see WAC 314-02-025(1)); and

     (ii))) meet all other requirements of this license, including the food service requirements outlined in WAC 314-02-035.

     (d) During the times that a spirits, beer, and wine restaurant licensee excludes patrons under twenty-one years of age from the entire premises, the licensee may not employ persons under twenty-one years of age (see WAC 314-11-040 for more information on employing persons under twenty-one).

     (2) Restaurants that have less than fifteen percent of their total customer service area dedicated to dining must exclude persons under twenty-one years of age from the entire premises. The licensee must:

     (a) Pay the two thousand dollars annual license fee; and

     (b) Meet all other requirements of this license, including the food service requirements outlined in WAC 314-02-035.

     (3) To exclude persons under twenty-one years of age from the entire licensed premises during a portion of the day or week or on a one-time-only basis, the applicant or licensee must:

     (a) request permission from the board, see WAC 314-02-130(1); and

     (b) meet all other requirements of the license, including the food service requirements outlined in WAC 314-02-035.

     (4) See WAC ((314-16-025)) 314-11-060(1) regarding requirements for "minors prohibited" signage.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-030, filed 3/15/00, effective 4/15/00.]

     (b) an "entree" means the main course of a meal. To qualify as one of the four required complete meals, the entree must require the use of a dining implement to eat, and cannot consist of a hamburger, sandwich, salad, or fry order.

     (((1))) (2) The restaurant must maintain the kitchen equipment necessary to prepare the complete meals required by RCW 66.24.410(2) and WAC ((314-16-190)) 314-02-035.

     (((2))) (3) The complete meals must be prepared on the restaurant premises.

     (((3) A chef or cook must be on duty while complete meals are offered.))

     (4) A menu must be available to customers that lists, at a minimum, the required complete meals.

     (5) The food items required to maintain the menu must be on the restaurant premises. These items must be edible.

     (6) Restaurants that have one hundred percent dedicated dining area must maintain complete meal service any time liquor is available for sale, service, or consumption.

     (7) Restaurants with less than one hundred percent dedicated dining area (restaurants in the one thousand six hundred dollar or two thousand dollar fee category) must maintain complete meal service for a minimum of five hours a day on any day liquor is served. The board may consider written requests for exceptions to this requirement due to demonstrated hardship, under such terms and conditions as the board determines are in the best interest of the public.

     (a) Minimum food service, such as sandwiches, hamburgers, or fry orders, must be available outside of these hours.

     (b) Snacks such as peanuts, popcorn, and chips do not qualify as minimum food service.

     (8) The hours of complete meal service must be conspicuously posted on the premises or listed on the menu. If applicable, a statement that minimum food service is available outside of those hours must also be posted or listed on the menu.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-035, filed 3/15/00, effective 4/15/00.]

Privilege	Annual fee
(a) Serve beer by the bottle or can or by tap for on-premises consumption.	$200
(b) Serve wine for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked wine from the premises).	$200
(c) Sell beer and/or wine in the original, unopened containers for off-premises consumption.	$120
(d) Sell tap beer for off-premises consumption in a sanitary container holding less than four gallons of beer, and brought to the premises by the purchaser.	In conjunction with off-premises privilege outlined in subsection (c).
(e) Sell beer in kegs or other containers holding at least four gallons of beer (see WAC 314-02-115 regarding the requirements for registering kegs).	In conjunction with off-premises privilege outlined in subsection (c).

     (2) All applicants for a beer and/or wine restaurant license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant, as defined in RCW 66.04.010(((29)))(30).

     (3) If a beer and/or wine restaurant's dedicated dining area comprises less than fifteen percent of the total customer service area, the premises must maintain a tavern license (see WAC 314-02-070 regarding the tavern license).

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-045, filed 3/15/00, effective 4/15/00.]

     (2) See WAC ((314-16-025)) 314-11-060(1) regarding requirements for "minors prohibited" signage.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-055, filed 3/15/00, effective 4/15/00.]

     (1) Require the purchaser to provide at least one piece of identification (see ((RCW 66.16.040)) WAC 314-11-025 for acceptable forms of identification); and

     (2) The licensee or employee and purchaser must fill out a keg registration form, provided by the board, which contains:

     (a) The name and address of the purchaser;

     (b) The type and number of the identification presented by the purchaser;

     (c) The address where the beer will be consumed and the date on which it will be consumed; and

     (d) A sworn statement, signed by the purchaser under penalty of perjury, that the purchaser:

     (i) Is at least twenty-one years of age;

     (ii) Will not allow persons under twenty-one years of age to consume the beer purchased;

     (iii) Will not remove or obliterate the keg registration form affixed to the keg or allow it to be removed or obliterated; and

     (iv) The address listed in (c) of this subsection is the true and correct address at which the beer will be consumed or physically located.

     (3) It is the licensee's or employee's responsibility to distribute the properly completed keg registration form as follows:

     (a) One copy to the purchaser;

     (b) One copy affixed to the keg or container holding four gallons or more of beer, prior to it leaving the licensed premises; and

     (c) One copy must be retained on the licensed premises for one year, available for inspection and copying by any law enforcement officer.

     (4) Possession of a keg or other container which holds four gallons or more of beer without a properly completed keg registration form affixed to it, other than on the licensee's premises, will be a violation of this title.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-115, filed 3/15/00, effective 4/15/00.]

     (1) Male/female dance reviews, subject to the provisions of WAC ((314-16-125)) 314-11-050;

     (2) Live boxing or wrestling;

     (3) Contests or games where patrons are part of the entertainment; and

     (4) Hours of operation in between 2:00 a.m. and 6:00 a.m. for licensees that sell liquor for on-premises consumption.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-125, filed 3/15/00, effective 4/15/00.]

Type of alteration	Approval process and timeline
(1) • excluding persons under twenty-one years of age from a spirits, beer, and wine restaurant;	(a) The board's licensing and regulation division will respond to the request for alteration within five business days of receipt of the request.
• excluding persons under twenty-one years of age from the dining area of a beer and/or wine restaurant; • reclassifying a lounge as open to persons under twenty-one years of age;	(b) The licensee may begin liquor service in conjunction with the alteration as soon as approval is received. (c) Board approval will be based on the alteration meeting the requirements outlined in this title.
• extending the location of alcohol service, such as a beer garden or patio/deck service (areas must be enclosed with a barrier a minimum of forty-two inches in height);
• storing liquor off of the licensed premises;
• initiating room service in a hotel or motel when the restaurant is not connected to the hotel or motel;
• installing a pass-through window for walk-up customers; and
• using a licensed premises as an access to another business.
(2) • any alteration that affects the size of a premises' customer service area.	(a) The board's licensing and regulation division will respond to the licensee's request for alteration within five business days of receipt of the request.
	(b) The licensee must contact their local liquor control agent when the alteration is completed.
	(c) The licensee may begin liquor service in conjunction with the alteration after the completed alteration is inspected by the liquor control agent.
	(d) Board approval will be based on the alteration meeting the requirements outlined in this title.

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-130, filed 3/15/00, effective 4/15/00.]

[]

     The following sections of the Washington Administrative Code are repealed:

WAC 314-02-050	What are the floor space requirements to obtain and maintain a beer and/or wine restaurant license?
WAC 314-16-190	Spirits, beer and wine restaurant -- Qualifications.
WAC 314-16-196	Spirits, beer and wine restaurant -- Floor space requirements -- Conditions for service bar only premises.

© Washington State Code Reviser's Office