WSR 09-14-138

PROPOSED RULES

LIQUOR CONTROL BOARD


[ Filed July 1, 2009, 11:43 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-07-105.

Title of Rule and Other Identifying Information: Chapter 314-37 WAC amending the chapter title, WAC 314-37-010, 314-37-020, and 314-37-030.

Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Lacey, WA 98504, on August 12, 2009, at 10:00 a.m.

Date of Intended Adoption: August 26, 2009.

Submit Written Comments to: Karen McCall, P.O. Box 43080, Olympia, WA 98504-3080, e-mail rules@liq.wa.gov, fax (360) 664-9689, by August 12, 2009.

Assistance for Persons with Disabilities: Contact Karen McCall by August 12, 2009, (360) 664-1631.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: As part of the liquor control board's on-going rules review process, chapter 314-37 WAC is being reviewed for relevance, clarity, and accuracy.

Reasons Supporting Proposal: The existing rules include language that is no longer relevant and needs to be revised.

Statutory Authority for Adoption: RCW 66.08.030.

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

Name of Proponent: Washington state liquor control board, governmental.

Name of Agency Personnel Responsible for Drafting: Karen McCall, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1631; Implementation: Randy Simmons, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1671; and Enforcement: Pat Parmer, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.

No small business economic impact statement has been prepared under chapter 19.85 RCW. There is no impact to contract liquor stores.

A cost-benefit analysis is not required under RCW 34.05.328.

July 1, 2009

Lorraine Lee

Chairman

OTS-2507.1

Chapter 314-37 WAC

CONTRACT LIQUOR ((VENDORS)) STORES


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

WAC 314-37-010   Liquor sales in Indian country -- Appointment of tribal contract liquor ((vendors)) stores -- Qualifications.   (1) The Washington state liquor control board deems it necessary and advisable to adopt this rule for the following reasons:

(a) The decision of the United States Supreme Court in the case of Rice v. Rehner (filed July 1, 1983) has established that the state of Washington has licensing jurisdiction over tribal liquor sales in Indian country and that those sales, when made in conformity with federal law, are subject to both tribal and state liquor regulatory requirements.

(b) It is contrary to state law (see chapter 66.44 RCW) for purchasers of Indian liquor to remove that liquor from the reservation and into the state of Washington in those instances where the tribal liquor sellers are not authorized by the board to sell liquor.

(2) Accordingly, pursuant to RCW 66.08.050(2), the Washington state liquor control board will appoint qualifying Indian tribes, which have entered into negotiated business agreements with the board, as contract liquor ((vendors)) stores which will authorize those ((vendor)) tribes to sell liquor by the bottle to such persons, firms or corporations as may be sold liquor from a state liquor store. All such appointments will be subject to the following conditions:

(a) The tribe must enter into a business agreement with the Washington state liquor control board for the purchase and sale of liquor which will insure that the state's control over liquor traffic will be maintained while taking into consideration the unique nature of a tribal contract liquor ((vendor)) store operation.

(b) The tribe must purchase all of its spirituous liquor for resale in Indian country from the board at a negotiated price: Provided, That a quota of spirituous liquor will be sold by the board each year to the ((vendor)) tribe without the payment of state taxes, which quota shall be negotiated between the board and the qualified tribes and approved by the department of revenue.

(c) The tribe must have in force a tribal ordinance governing liquor sales, which ordinance must have been certified by the Secretary of the Interior and published in the Federal Register as required by 18 U.S.C. 1161.

(d) The tribe must make all liquor sales in Indian country in conformity with both state and federal law.

(3) Should a tribe which has been appointed as a contract liquor ((vendor)) store pursuant to this section fail to comply with all the above enumerated conditions, which shall be construed as continuing requirements to maintain the status of contract liquor ((vendor)) store, the appointment of that tribe as a contract liquor ((vendor)) store may be revoked by the board.

(4) A tribe, whether or not it has status as an Indian contract liquor ((vendor)) store, which desires to sell beer and wine purchased from a licensed distributor must obtain state licenses for the sale of beer and wine and must abide by all state laws and rules applicable to sale of beer and wine by state licensees. Tribes selling beer and wine shall collect and remit to the state department of revenue the retail sales tax imposed by RCW 82.08.020 on retail sales of beer and wine to nontribal members.

(5) "Indian country" as used herein shall have the meaning ascribed to it in Title 18 U.S.C. 1151 as qualified by Title 18 U.S.C. 1154 as of July 1, 1983.

[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, 314-37-010, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030 and 66.08.050(2). 83-24-021 (Order 131, Resolution No. 140), 314-37-010, filed 11/30/83; 83-04-017 (Order 118, Resolution No. 127), 314-37-010, filed 1/26/83.]


AMENDATORY SECTION(Amending Order 180, Resolution No. 189, filed 3/13/86)

WAC 314-37-020   Manufacturer's on-site ((vending)) contract liquor store appointment -- Qualifications.   (1) Pursuant to RCW 66.08.050, the board, in its discretion, may appoint a domestic winery which also manufactures liquor products other than wine pursuant to a license under Title 66 RCW, as a ((vendor)) contract liquor store for the purpose of sale of liquor products of its own manufacture on the licensed premises only.

(2) Such appointment may not be made to domestic wineries located inside incorporated cities or towns in which there is a state liquor store.

(3) Such appointment shall only be made after a contract has been entered into between the board and the domestic winery. Such contract shall contain the following:

(a) A designation of the location on the licensed premises from which the sales will be made;

(b) A designation of the nonwine products manufactured by the winery which will be sold under the appointment;

(c) That the manufacturer/((vendor)) contract liquor store shall not be considered an employee of the state for any purpose;

(d) That the manufacturer/((vendor)) contract liquor store shall agree to hold the state harmless from any and all claims resulting from operation of the manufacturer's on-site ((vendorship)) contract liquor store; and

(e) Such other aspects of the appointment relationship as the parties may agree to.

(4) All sales made under a manufacturer's on-site ((vending)) contract liquor store appointment shall be made at the prices established by the board for sales of the same product through state liquor stores and agencies.

(5) All sales made under a manufacturer's on-site ((vending)) contract liquor store appointment shall be subject to all applicable state taxes.

[Statutory Authority: RCW 66.08.050(2). 86-07-023 (Order 180, Resolution No. 189), 314-37-020, filed 3/13/86.]


AMENDATORY SECTION(Amending WSR 99-04-114, filed 2/3/99, effective 3/6/99)

WAC 314-37-030   Bank credit cards and debit cards.   (1) May contract liquor ((vendors)) stores accept bank credit cards and debit cards? Yes. Per RCW 66.16.041, contract liquor ((vendors)) stores may accept bank credit cards and debit cards for liquor purchases from nonlicensees. Any equipment provided by the board to ((an agency)) a contract liquor ((vendor)) store may be used only for the sale of liquor obtained from the board.

(2) What are the procedures for accepting bank credit cards and debit cards for liquor purchases? The procedures for accepting bank credit cards and debit cards for liquor purchases are as follows:

(a) Sales transactions.

(i) All credit/debit card sales transactions will be made in accordance with liquor control board and ((SPS)) PCI procedures.

(ii) Cash back is not allowed.

(iii) Batch closing must be done nightly in order to ensure transactions are processed in a timely manner.

(b) Recording transactions. Contract liquor ((vendors)) stores will record transactions on forms provided by the liquor control board.

(c) Reporting. Contract liquor ((vendors)) stores will report all credit/debit card sales to the administrative services division of the liquor control board.

(d) Retention of records.

(i) All credit/debit card receipts and balancing reports will be kept for the current fiscal year, in addition to the prior two complete fiscal years.

(ii) Contract liquor ((vendors)) stores are responsible for the security of all credit/debit card records.

[Statutory Authority: RCW 66.08.030 and 66.16.041. 99-04-114, 314-37-030, filed 2/3/99, effective 3/6/99.]

Washington State Code Reviser's Office