Original Notice.

     Preproposal statement of inquiry was filed as WSR 04-08-108.

     Title of Rule and Other Identifying Information: WAC 314-02-010 Definitions, 314-02-014 What is a food counter, a liquor bar, and a service bar and are minors allowed in these areas?, 314-02-015 What is a spirits, beer, and wine restaurant license?, 314-02-020 What are the fee categories for a spirits, beer, and wine restaurant license?, 314-02-025 What are the floor space requirements to obtain and maintain a spirits, beer, and wine restaurant license or a beer and/or wine restaurant license?, 314-02-030 Can a spirits, beer, and wine restaurant exclude persons under twenty-one years of age from the premises?, 314-02-033 Do sprits, beer, and wine restaurants that exclude minors from the premises have to put barriers around their dedicated dining area(s)?, 314-02-035 What are the food service requirements for a spirits, beer, and wine restaurant license?, 314-02-045 What is a beer and/or wine restaurant license?, and 314-02-055 Can a beer and/or wine restaurant exclude minors from the dining area?

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

     Hearing Location(s): Liquor Control Board Headquarters Board Room, 3000 Pacific Avenue S.E., Olympia, WA, on July 13, 2005, at 10:00 a.m.

     Date of Intended Adoption: No earlier than August 10, 2005.

     Submit Written Comments to: Pam Madson, P.O. Box 43080, Olympia, WA 98504-3080, e-mail rules@liq.wa.gov, fax (360) 704-4921, by July 25, 2005.

     Assistance for Persons with Disabilities: Contact Pam Madson by July 12, 2005, TTY (800) 855-2880 or (360) 664-1648.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: These rule changes and additions are intended to clarify those areas of a spirits, beer, and wine restaurant and beer and/or wine restaurant where minors are or are not allowed and to clarify when minors may be present if alcohol is being served. They also clarify requirements involving barriers required to separate a restaurant's dining area from the area where liquor is served and requirements for food service in a spirits, beer, and wine restaurant.

     Reasons Supporting Proposal: This proposal places current agency policy into rule and clarifies rules that are the subject of confusion for licensees and law enforcement.

     Statutory Authority for Adoption: RCW 66.08.030, 66.44.310, 66.24.410, 66.44.420, 66.04.010.

     Statute Being Implemented: RCW 66.44.420, 66.44.310, 66.24.410, 66.04.010.

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

     Name of Proponent: Liquor Control Board, governmental.

     Name of Agency Personnel Responsible for Drafting: Pam Madson, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1648; Implementation: Lorraine Lee, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1600; and Enforcement: Rex Prout, 3000 Pacific Avenue S.E., Olympia, WA, (360) 664-1600.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rules do no have an economic impact on small business.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington State Liquor Control Board is not a listed agency under RCW 34.05.328.

June 1, 2005

Merritt D. Long

Chairman

OTS-8033.1

AMENDATORY SECTION(Amending WSR 00-07-091, filed 3/15/00, effective 4/15/00)

WAC 314-02-010   Definitions.   The following definitions are to clarify the purpose and intent of the rules and laws governing liquor licenses and permits. Additional definitions can be found in RCW 66.04.010.

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

     (2) "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) "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.

     (4) "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 alcohol served is incidental to food service. A food counter is allowed in areas where minors are permitted.

     (5) "Game room" means an area of a business set up for the primary purpose of patrons using games or gaming devices.

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

     (((5))) (7) "Liquor bar" means a table or counter where alcohol is stored or prepared and served to customers who sit or stand at the bar. Liquor bars can only be in lounges or in premises where minors are not allowed at any time.

     (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)) Minors are not allowed in a lounge (see RCW 66.44.316 for information on employees and professional musicians under twenty-one years of age).

     (9) "Minor" means a person under twenty-one years of age.

     (10) "Service bar" means a fixed or portable table, counter, cart, or similar work station primarily used to prepare, mix, serve, and sell alcohol that is picked up by employees or customers. Customers may not be seated or allowed to consume food or alcohol at a service bar. A service bar is allowed in areas where minors are permitted.

[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.]

	Allowed in areas where minors are permitted?
A food counter is a table or counter set up for the primary purpose of food service to customers who sit or stand at the counter. Any alcohol served is incidental to food service.	yes
A liquor bar is a table or counter where alcohol is stored or prepared and served to customers who sit or stand at the bar. Liquor bars can only be in lounges or in premises where minors are not allowed at any time.	no
A service bar is a fixed or portable table, counter, cart, or similar work station primarily used to prepare, mix, serve, and sell alcohol that is picked up by employees or customers. Customers may not be seated or allowed to consume food or alcohol at a service bar.	yes

[]

     (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, this license prohibits licensees from selling alcohol for off-premises consumption except for a licensee having an endorsement that allows the licensee to sell, for off-premises consumption, wine vinted and bottled in the state of Washington that has a label exclusive to the licensee's restaurant.

     (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 under 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.]

     (3) Barriers - Licensees must place ((identifiable)) barriers around game rooms and areas that are ((restricted from persons under twenty-one years of age)) classified as off-limits to minors.

     (a) The barriers must be substantial, must clearly separate restricted areas, and must be at least forty-two 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 the premises or the premises change ownership.

     (c) Liquor bars cannot be used as the required barriers (see definition of liquor bar in WAC 314-02-010(7)).

     (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 ((314-16-025)) 314-11-060(1), must be posted at each entrance to ((such)) restricted areas.

     (((2))) (4) If the business allows minors, the business's primary entrance must open directly into a dedicated dining area or into a neutral area, such as a lobby or foyer, that leads directly to a dedicated dining area. Minors must be able to access restrooms without passing through a lounge or other age-restricted area.

     (5) 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)) minors from the entire licensed premises at all times or at certain times, 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)) minors on the entire premises at ((any time)) all times or at certain times indicated by the applicant or licensee; or

     (b) If already licensed as a spirits, beer, and wine restaurant that allows ((person under twenty-one years of age)) minors, the applicant may request permission from the board's licensing and regulation division to exclude ((persons under twenty-one years of age, per)) minors at all times or at certain times indicated by the applicant or licensee. See WAC 314-02-130 for instructions on requesting this approval.

     (c) Spirits, beer, and wine restaurant licensees who exclude ((persons twenty-one years of age)) minors from the entire premises at all times or at certain 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 minors 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 minors.)

     (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)) minors 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.]

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

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

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

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

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

     (((6))) (7) 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))) (8) 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 interests 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))) (9) 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.]

     (a) Manufacture between two hundred fifty gallons and two thousand four hundred barrels of beer on the premises per year;

     (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 66.24.320 regarding patrons removing recorked wine from the premises).

     (2) The annual fee for this license is one thousand dollars.

     (3) If a public house licensee wishes to allow persons under twenty-one years of age on the premises, the licensee must meet the requirements of a beer and/or wine restaurant license, per WAC 314-02-045 and ((314-02-050)) 314-02-025.

     (4) Public house licensees may apply for a spirits, beer, and wine restaurant license, in order to sell spirits by the individual serving for on-premises consumption (see WAC 314-02-015).

[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 00-07-091, § 314-02-095, filed 3/15/00, effective 4/15/00.]

     The following section of the Washington Administrative Code is repealed:

WAC 314-02-050

What are the floor space requirements to obtain and maintain a beer and/or wine restaurant license?

OTS-8034.1

AMENDATORY SECTION(Amending WSR 98-18-097, filed 9/2/98, effective 10/3/98)

WAC 314-16-195   Spirits, beer and wine restaurant restricted -- Qualifications.   (1) Spirits, beer and wine restaurant restricted licensees shall govern their operations in selling liquor in accordance with the regulations set forth in Titles I and II. Such licensees may sell liquor in accordance with these regulations, only to members, invited guests, and holders of cards as authorized by subsection (3) of this section. Spirits, beer and wine restaurant restricted licensees shall not be prohibited from renting, leasing, or donating all or a portion of their facilities for, or making services available to, an activity where the public is invited or admitted under the conditions specified in subsection (4) of this section.

     (2)(a) Applications for new spirits, beer and wine restaurant restricted licenses shall be on forms prescribed by the board and shall be accompanied by proof that:

     (i) The business has been in operation for at least one year immediately prior to the date of its application. Such proof should include records of membership as well as an indication as to numbers and types of membership.

     (ii) Membership or admission will not be denied to any person because of race, creed, color, national origin, sex or the presence of any sensory, mental or physical handicap.

     (b) Applications for renewal shall be made on forms prescribed by the board and shall be accompanied by such information as the board may request.

     (c) Spirits, beer and wine restaurant restricted applicants and licensees must meet the provisions of WAC ((314-16-190 (1), (2), (3), (4), (5) and (7))) 314-02-035.

     (3)(a) Guest privilege cards may be issued only as follows:

     (i) For spirits, beer and wine restaurant restricted licensees within the limits of any city or town, only to those persons residing outside of an area ten miles from the limits of such city or town.

     (ii) For spirits, beer and wine restaurant restricted licensees outside of any city or town only to those persons residing outside an area fifteen miles from the location of such licensee: Provided, That where such area limitation encroaches upon the limits of any city or town, the entire corporate limits of such city or town shall be included in the prohibited area.

     (iii) Such guest privilege cards shall be issued for a reasonable period and must be numbered serially, with a record of the issuance of each such card to be filed on the licensed premises in such a manner as to be readily accessible for inspection.

     (iv) The mileage restrictions in (i) and (ii) of this subsection may be waived for special events upon written approval of the board.

     (b) Guests may be introduced when accompanied at all times by a member and may remain as long as such member is present: Provided, That any such guest may only enjoy the privileges of the organization a reasonable number of times in any one calendar year.

     (c) Persons who are members in good standing of a licensed spirits, beer and wine restaurant restricted organization may enjoy the privileges of any other licensed spirits, beer and wine restaurant restricted organization: Provided, That the operating rules of such organization authorize reciprocal privileges: Provided further, That (a) and (b) of this subsection shall not apply to members of such organizations while exercising reciprocal privileges.

     (4) If the licensee at any time rents any portion of the premises for any purpose other than to their membership or at any time holds any function within the premises to which the public is generally invited or admitted, then such portion devoted to liquor service must be closed to the public generally and no one admitted therein except for bona fide members and guests. If the premises does not have an area which can be so closed, then no liquor service whatever may be permitted during the entire time when such activity is taking place or when the public is generally admitted in the premises.

[Statutory Authority: RCW 66.08.030, 15.88.030, 19.126.020, 66.04.010, 66.08.180, 66.16.100, 66.20.010, 66.20.300, 66.20.310, 66.24.150, 66.24.170, 66.24.185, 66.24.200, 66.24.206, 66.24.210, 66.24.230, 66.24.240, 66.24.244, 66.24.250, 66.24.375, 66.24.380, 66.24.395, 66.24.400, 66.24.420, 66.24.425, 66.24.440, 66.24.450, 66.24.455, 66.24.495, 66.24.540, 66.28.010, 66.28.040, 66.28.050, 66.28.170, 66.28.180, 66.28.190, 66.28.200, 66.28.310, 66.44.190, 66.44.310, 66.98.060 and 82.08.150. 98-18-097, § 314-16-195, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030 and 66.98.070. 82-13-069 (Order 107, Resolution No. 116), § 314-16-195, filed 6/16/82.]

     The following sections of the Washington Administrative Code are repealed:

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.

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