WSR 03-09-015

PERMANENT RULES

LIQUOR CONTROL BOARD


[ Filed April 4, 2003, 2:46 p.m. ]

     Date of Adoption: March 26, 2003.

     Purpose: The purpose of this new chapter of rules, chapter 314-29 WAC, is to replace current rules that outline the penalty guideline schedule for violations of Liquor Control Board laws and rules by liquor licensees.

     Citation of Existing Rules Affected by this Order: Repealing WAC 314-12-170, 314-12-300, 314-12-310, 314-12-320, 314-12-330, and 314-12-340.

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

      Adopted under notice filed as WSR 03-02-097 on January 2, 2003.

     Changes Other than Editing from Proposed to Adopted Version: As a result of input received during the rule-making process, the agency has made the following technical changes to the rules shown below:

•     Deleted previously proposed language in WAC 314-29-020 that would have made Group 1 violations cumulative. This proposal would have been a change in current practice, which is outside the published scope of this rule making. Including this proposed language was an inadvertent error by staff.

•     Technical changes to proposed WAC 314-29-025 for clarity. Language was added to clarify that Group 2 violations can apply to retail and nonretail licensees.

•     Technical changes to proposed WAC 314-29-035 for clarity:

     >     Language was added to clarify that the standard penalty for "retailer/nonretailer" violations are for violations other than those outlined in WAC 314-29-035, the Group 4 violations.

     >     Language was added to clarify the meaning of the violations for providing or accepting money or money's worth and for providing or accepting exclusive or contingency agreement.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 7, Amended 0, Repealed 6.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 7, Amended 0, Repealed 6.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 7, Amended 0, Repealed 6.
     Effective Date of Rule: Thirty-one days after filing.

April 4, 2003

Merritt D. Long

Chair


NEW SECTION
WAC 314-29-003   Purpose.   The purpose of chapter 314-29 WAC is to outline what a liquor licensee can expect if a licensee or employee violates a liquor control board law or rule.

[]


NEW SECTION
WAC 314-29-015   What are the penalties if a liquor license holder violates a liquor law or rule?   (1) The purpose of WAC 314-29-015 through WAC 314-29-040 is to outline what penalty a liquor licensee can expect if a licensee or employee violates a liquor control board law or rule (the penalty guidelines for mandatory alcohol server training permit holders are in WAC 314-17-100 through WAC 314-17-110).

     (2) Penalties for violations by liquor licensees or employees are broken down into four categories:

     (a) Group One - Public Safety Violations, WAC 314-29-020.

     (b) Group Two - Conduct Violations, WAC 314-29-025.

     (c) Group Three - Regulatory Violations, WAC 314-29-030.

     (d) Group Four - Violations involving the manufacture, supply, and/or distribution of liquor by nonretail licensees and prohibited practices between nonretail licensees and retail licensees, WAC 314-29-035.

     (3) For the purposes of chapter 314-29 WAC, a two year window for violations is measured from the date one violation occurred to the date a subsequent violation occurred.

     (4) The following schedules are meant to serve as guidelines. Based on mitigating or aggravating circumstances, the liquor control board may impose a different penalty than the standard penalties outlined in these schedules.

(a) Mitigating circumstances (b) Aggravating circumstances
Examples of mitigating circumstances that may result in a fewer number of days of suspension or a lower monetary option include, but are not limited to, having in place business policies and practices such as:

•     Using licensee certification cards that are correctly filled out and filed;

•     Having direct on-site supervision of employees;

•     Having a signed acknowledgment of the business' alcohol policy on file for each employee;

•     Having an employee training plan that includes annual training on liquor laws;

•     Showing cooperation with local law enforcement; etc.

 Examples of aggravating circumstances that may result in a higher number of days of suspension, a higher monetary option, or cancellation of a liquor license include, but are not limited to:

•     Failing to cooperate with local law enforcement or liquor control board employees;

•     Not calling for local law enforcement when requested by a customer or liquor control board agent;

•     Not checking to ensure employees are of legal age or have appropriate work permits;

•     Committing the violation willfully; etc.

[]


NEW SECTION
WAC 314-29-020   Group 1 violations against public safety.   Group 1 violations are considered the most serious because they present a direct threat to public safety.


Violation Type 1st Violation 2nd Violation in a

two-year window

 3rd Violation in a

two-year window

 4th Violation in a

two-year window
Sale or service to minor: Sale or service of alcohol to a person under 21 years of age. 5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license
Minor frequenting a tavern, lounge, or other age restricted area. 5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license
Sale or service to apparently intoxicated

person: Sale or service of alcohol to, or permitting consumption or possession by, an apparently intoxicated person.

 5 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option Cancellation of license
Disorderly conduct by licensee or employee, or permitting on premises. 5 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option Cancellation of license
Criminal conduct: Permitting or engaging in criminal conduct. 5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license

[]


NEW SECTION
WAC 314-29-025   Group 2 conduct violations.   Group 2 violations are violations involving conduct of retail or nonretail licensee, employees, or patrons.

Violation Type 1st Violation 2nd Violation in a

two-year window

 3rd Violation in a

two-year window

 4th Violation in a

two-year window
Misuse or unauthorized use of liquor license. 5 day suspension or $1,500 monetary option Cancellation of license Cancellation of license Cancellation of license
Sale of alcohol in violation of a board-approved alcohol impact area restriction. 5 day suspension or $500 monetary option 7 day suspension or $1,500 monetary option 10 day suspension with no monetary option Cancellation of license
Employee under legal age or without required mandatory alcohol server training permit. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license
Hours of service: Sales, service, removal, or consumption of alcohol between 2:00 a.m. and 6:00 a.m. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license
Food service: Required food service not available. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license
Substituting, tampering, unlawful removal, possession, or unauthorized sale of liquor. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license
Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license
Inspections: Refusing to allow inspection(s) by law enforcement. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Retailer/nonretailer violation: Violation on the part of a retail licensee that involves a nonretail licensee, other than group four violations. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option

[]


NEW SECTION
WAC 314-29-030   Group 3 regulatory violations.   Group 3 violations are violations involving administrative requirements.


Violation Type 1st Violation 2nd Violation in a

two-year window

 3rd Violation in a

two-year window

 4th Violation in a

two-year window
Keg registration: Failure to properly register kegs. 5 day suspension or $500 monetary option 5 day suspension or $1,000 monetary option 10 day suspension or $1,500 monetary option 20 day suspension with no monetary option
Signs: Failure to post required signs. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Records: Improper record keeping. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Advertising: Advertising violations other than those involving prohibited practices between a nonretail and a retail licensee. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Inventory: Inventory below required amount. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Unauthorized alterations, change of trade name, or added activity. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Lighting: Inadequate lighting. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option
Liquor purchased from unauthorized source or sale below cost in violation of liquor law or rule. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option

[]


NEW SECTION
WAC 314-29-035   Group 4 violations.   Group 4 violations are violations involving the manufacture, supply, and/or distribution of liquor by nonretail licensees and prohibited practices between a nonretail licensee and a retail licensee.


Violation type 1st Violation 2nd Violation in a

two-year window

 3rd Violation in a

two-year window

 4th Violation in a

two-year window
Providing credit to a retail licensee. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Quantity discount. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Giving away liquor in violation of liquor law or rule. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Consignment sales/return of product in violation of liquor law or rule. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Advertising violationsinvolving prohibited practices between a nonretail and a retail licensee. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Price posting/labeling/packaging violations. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Agents violations: Nonretail licensee employing an unlicensed agent. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Unauthorized product/unapproved storage or delivery. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Sampling/tasting violations. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Entertainment/instruction/meeting/trade show violations. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Providing money or money's worth less than $100. 3 day suspension or $250 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension or $2,000 monetary option
Providing/accepting money or money's worth: Goods or services worth $100 to $1,000. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option
Providing/accepting money or money's worth: Goods or services worth over $1,000. Cost of item or service provided plus: 3 day suspension or $1,000 monetary option Cost of item or service provided plus: 5 day suspension or $2,500 monetary option Cost of item or service provided plus: 10 day suspension or $5,000 monetary option Cost of item or service provided plus: 20 day suspension or $10,000 monetary option
Providing/accepting exclusive or contingency agreements. 3 day suspension or $1,000 monetary option 10 day suspension or $6,000 monetary option 20 day suspension or $12,000 monetary option 30 day suspension or $20,000 monetary option
Unauthorized interest or ownership in retail license. 3 day suspension or $1,000 monetary option 30 day suspension or $20,000 monetary option Cancellation of license
Failure to obtain surety bond/savings account, if required by the board. Immediate suspension of license until surety bond has been obtained and all missing reports are filed and late taxes are paid.
Failure to file tax/shipment report. 3 day suspension or $250 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension or $2,000 monetary option

[]


NEW SECTION
WAC 314-29-040   Information about liquor license suspensions.   (1) On the date a liquor license suspension goes into effect, a liquor control agent will post a suspension notice in a conspicuous place on or about the licensed premises. This notice will state that the license has been suspended by order of the liquor control board due to a violation of a board law or rule.

     (2) During the period of liquor license suspension, the licensee and employees:

     (a) Are required to maintain compliance with all applicable liquor laws and rules;

     (b) May not remove, alter, or cover the posted suspension notice, and may not permit another person to do so;

     (c) May not place or permit the placement of any statement on the licensed premises indicating that the premises have been closed for any reason other than as stated in the suspension notice (see WAC 314-01-005 for the definition of "licensed premises").

     (d) May not advertise by any means that the licensed premises is closed for any reason other than as stated in the liquor control board's suspension notice.

     (3) During the period of liquor license suspension:

     (a) A retail liquor licensee may operate his/her business provided there is no sale, delivery, service, consumption, removal, or receipt of liquor. No banquet permit or special occasion function may be held on the premises during a period of liquor license suspension.

     (b) A nonretail licensee may operate his/her business provided there is no sale, delivery, service, consumption, removal, or receipt of liquor.

     (c) A manufacturer of alcohol may do whatever is necessary as a part of the manufacturing process to keep current stock that is on hand at the time of the suspension from spoiling or becoming unsaleable during a suspension, provided it does not include bottling the product. The manufacturer may not receive any agricultural products used in the production of alcohol, crush fruit, or bottle alcohol during the period of suspension.

[]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 314-12-170 What are the penalties if a retail liquor licensee violates the liquor laws or rules?
WAC 314-12-180 Suspension notices, posting or advertising of -- Other -- Closing notices prohibited.
WAC 314-12-300 Group one (1) violations against public safety.
WAC 314-12-310 Group two (2) offenses -- Conduct violations.
WAC 314-12-320 Group three (3) offenses -- Regulatory violations.
WAC 314-12-330 Can the board impose sanctions or penalties other than those indicated in WAC 314-12-170?
WAC 314-12-340 What are some examples of mitigating and aggravating circumstances?

Legislature Code Reviser 

Register
© Washington State Code Reviser's Office