PERMANENT RULES
Effective Date of Rule: Thirty-one days after filing.
Purpose: Regulations relating to manufacturers, distributors, importers and retailers were impacted by the 2009 legislative action. Rules needed amending or repealing and new rules needed to be created as part of implementing EHB 2040, changing beer and wine regulation (tied house), and parts of SSB 5834, changes to authorized reps, created a winery warehouse, allowed exceptions to tied house restrictions, and created changes to electronic fund transfer payment transactions. Implementation of legislation passed in 2009 requires changes in current rules and creation of new rules to clarify and provide further guidance to licensees who are impacted by the new regulations.
Citation of Existing Rules Affected by this Order: Repealing WAC 314-12-135 and 314-12-145; and amending WAC 314-11-015, 314-11-095, 314-12-140, 314-12-141, 314-13-015, 314-13-020, 314-13-025, 314-19-015, 314-19-035, 314-20-001, 314-20-050, 314-20-100, 314-24-001, 314-24-070, 314-24-107, 314-24-150, 314-24-190, 314-24-210, 314-44-005, 314-44-015, and 314-52-080.
Statutory Authority for Adoption: RCW 66.08.030 and 66.28.320.
Adopted under notice filed as WSR 09-22-102 on November 4, 2009.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 2, Amended 21, Repealed 2.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 2, Amended 21, Repealed 2.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: December 16, 2009.
Sharon Foster
Board Chairman
OTS-2656.1
AMENDATORY SECTION(Amending WSR 04-15-162, filed 7/21/04,
effective 8/21/04)
WAC 314-11-015
What are my responsibilities as a liquor
licensee?
(1)(a) Liquor licensees are responsible for the
operation of their licensed premises in compliance with the
liquor laws and rules of the board (Title 66 RCW and TITLE 314 WAC). Any violations committed or permitted by employees will
be treated by the board as violations committed or permitted
by the licensee.
(b) The penalties for violations of liquor laws or rules
are in: WAC ((314-12-300)) 314-29-015 through ((314-12-340))
314-29-035, as now or hereafter amended, for licensees; and
WAC 314-17-105 and 314-17-110, as now or hereafter amended,
for employees who hold mandatory alcohol server training
permits. These rules also outline aggravating and mitigating
circumstances that may affect what penalty is applied if a
licensee or employee violates a liquor law or rule.
(2) Licensees and their employees also have the responsibility to conduct the licensed premises in compliance with the following laws, as they now exist or may later be amended:
| ▪ | Titles 9 and 9A RCW, the criminal code laws; |
| ▪ | Title 69 RCW, which outlines the laws regarding controlled substances; and |
| ▪ | Titles 70.155, 82.24 RCW, and RCW 26.28.080 which outline laws regarding tobacco. |
(a) Be disorderly or apparently intoxicated on the licensed premises;
(b) Permit any disorderly person to remain on the licensed premises;
(c) Engage in or allow behavior that provokes conduct which presents a threat to public safety;
(d) Consume liquor of any kind while working on the licensed premises; except that:
(i) Licensed beer manufacturers and their employees may sample beer of their own manufacture for manufacturing, evaluating or pricing product in areas where the public is not served, so long as the licensee or employee does not become apparently intoxicated;
(ii) Licensed wine manufacturers and their employees may:
(A) Sample wine for manufacturing, evaluating, or pricing product, so long as the licensee or employee does not become apparently intoxicated; and the licensee or employee who is sampling for these purposes is not also engaged in serving alcohol to the public; and
(B) Sample wine of their own manufacture for quality control or consumer education purposes, so long as the licensee or employee does not become apparently intoxicated.
(e) Engage in, or permit any employee or other person to engage in, conduct on the licensed premises which is prohibited by any portion of Titles 9, 9A, or 69 RCW; or
(f) Sell or serve liquor by means of "drive-in" or by "curb service."
(4) Licensees have the responsibility to control the interaction between the licensee or employee and their patrons. At a minimum, licensees or employees may not:
(a) Solicit any patron to purchase any beverage for the licensee or employee, or allow a person to remain on the premises for such purpose;
(b) Spend time or dance with, or permit any person to spend time or dance with, any patron for direct or indirect compensation by a patron.
(c) See WAC 314-11-050 for further guidelines on prohibited conduct.
[Statutory Authority: RCW 66.08.030, 66.12.160, 66.44.010, 66.44.200, 66.44.240, 66.44.270, 66.24.291 [66.44.291], 66.44.310. 04-15-162, § 314-11-015, filed 7/21/04, effective 8/21/04. Statutory Authority: RCW 66.08.030, 66.28.100, 66.28.040, 66.28.090, 66.44.010, 66.44.070, 66.44.200, 66.44.270, 66.44.291, 66.44.292, 66.44.310, 66.44.316, 66.44.318, 66.44.340, and 66.44.350. 02-11-054, § 314-11-015, filed 5/9/02, effective 6/9/02. Statutory Authority: RCW 66.08.030, 66.28.100, 66.28.040, 66.28.090, 66.44.010, 66.44.070, 66.44.200, 66.44.270, 66.44.291, 66.44.292, 66.44.310, 66.44.316, 66.44.318, 66.44.340, 66.44.350, and chapter 66.44 RCW. 01-06-014, § 314-11-015, filed 2/26/01, effective 3/29/01.]
(1) All industry members and retailers shall keep and maintain the following records on their premises for a three-year period and the records must be made available for inspection if requested by an employee of the liquor control board, or by a person appointed in writing by the board for the purposes of administering or enforcing any provisions of Title 66 RCW or TITLE 314 WAC:
(a) Purchase invoices and supporting documents, to include the items and/or services purchased, from whom the items were purchased, and the date of purchase;
(b) Bank statements and ((cancelled)) canceled checks for
any accounts relating to the licensed business;
(c) Accounting and tax records related to the licensed
business and each true party of interest in the liquor
license; ((and))
(d) Records of all financial transactions related to the licensed business, including contracts and/or agreements for services performed or received that relate to the licensed business;
(e) Records of all items, services, and moneys' worth furnished to and received by a retailer and of all items, services, and moneys' worth provided to a retailer and purchased by a retailer at fair market value;
(f) Records of all industry member financial ownership or interests in a retailer and of all retailer financial ownership interests in an industry member; and
(g) Business entertainment records of industry members or their employees who provide either food, beverages, transportation, tickets or admission fees for or at athletic events or for other forms of entertainment to retail licensees and/or their employees.
(2) See ((the following)) additional rules for ((record
keeping)) recordkeeping requirements specific to breweries and
wineries: WAC 314-20-015(2), 314-20-050, 314-24-100, and
314-24-150 (as now or hereafter amended).
[Statutory Authority: RCW 66.08.030, 66.28.100, 66.28.040, 66.28.090, 66.44.010, 66.44.070, 66.44.200, 66.44.270, 66.44.291, 66.44.292, 66.44.310, 66.44.316, 66.44.318, 66.44.340, and 66.44.350. 02-11-054, § 314-11-095, filed 5/9/02, effective 6/9/02. Statutory Authority: RCW 66.08.030, 66.28.100, 66.28.040, 66.28.090, 66.44.010, 66.44.070, 66.44.200, 66.44.270, 66.44.291, 66.44.292, 66.44.310, 66.44.316, 66.44.318, 66.44.340, 66.44.350, and chapter 66.44 RCW. 01-06-014, § 314-11-095, filed 2/26/01, effective 3/29/01.]
(2) Nonliquor food products include all food products for human consumption as defined in RCW 82.08.0293 as it exists on July 1, 1987, except that for the purposes of this section bottled water and carbonated beverages, whether liquid or frozen, shall be considered food products.
(3) For the purpose of this section, the period of credit is calculated as the time elapsing between the date of delivery of the product and the date of full legal discharge of the retailer, through the payment of cash or its equivalent, from all indebtedness arising from the transaction.
(4) If the board finds in any instance that any licensee has violated this section by extending or receiving credit in excess of the thirty days as provided for by this section, then all licensees involved shall be held equally responsible for such violation.
[]
OTS-2657.4
NEW SECTION
WAC 314-12-027
Financial interest and ownership.
Pursuant to the exceptions in chapter 66.28 RCW:
(1) An industry member or affiliate may have a financial interest in another industry member or a retailer, and a retailer or affiliate may have financial interest in an industry member unless such interest has resulted or is more likely than not to result in:
(a) Undue influence over the retailer or the industry member; or
(b) An adverse impact on public health and safety.
(2) The structure of any such financial interest must be consistent with the following:
(a) An industry member in whose name a license or COA has been issued pursuant to this title may wholly own or hold a financial interest in a separate legal entity licensed pursuant to RCW 66.24.320 through 66.24.570, but the industry member must form a separate legal entity to apply for the retail liquor license.
Example: ABC Inc. is the liquor licensee for ABC Winery. ABC Inc. has two officers and stockholders; John Doe, President and 50% stockholder, and Mary Smith, Secretary and 50% stockholder. ABC Inc. wants to purchase stock in a retail restaurant. ABC Inc. is not required to form a separate legal entity if the amount of stock purchased is 10% or less. If the amount of stock purchased is more than 10%, ABC Inc. must form a separate legal entity to purchase the stock. John Doe and/or Mary Smith as a sole proprietor, could purchase any amount of stock in a retail restaurant;
(b) A retailer in whose name a license has been issued pursuant to this title may wholly own or hold a financial interest in manufacturer, importer, or distributor licensed under RCW 66.24.170, 66.24.206, 66.24.240, 66.24.244, 66.24.270(2), 66.24.200, or 66.24.250, but the retailer must form a separate legal entity to apply for the nonretail liquor license.
Example: Joe and Jane Smith own a grocery store and hold a grocery store liquor license under a sole proprietor legal entity. They want to purchase stock in a local winery. Joe and Jane Smith are not required to form a separate legal entity if the amount of stock purchased is 10% or less. If the amount of stock purchased is more than 10%, Joe and Jane Smith must form a separate legal entity (such as a corporation or limited liability company) to purchase the stock in the winery;
(c) A supplier in whose name a license or certificate of approval has been issued pursuant to this title may wholly own or hold a financial interest in a separate legal entity licensed as a distributor or importer under this title, but such supplier may not have a license as a distributor or importer issued in its own name.
Example: ABC Inc. is the liquor licensee for ABC Winery. ABC Inc. has two officers and stockholders; John Doe, President and 50% stockholder, and Mary Smith, Secretary and 50% stockholder. ABC Inc. wants to purchase stock in a distributor. ABC Inc. is not required to form a separate legal entity if the amount of stock purchased is 10% or less. If the amount of stock purchased is more than 10%, ABC Inc. must form a separate legal entity to purchase the stock. John Doe and/or Mary Smith as a sole-proprietor, could purchase any amount of stock in a distributor;
(d) A distributor or importer in whose name a license has been issued pursuant to this title may wholly own or hold a financial interest in a separate legal entity licensed or holding a certificate of approval as a supplier under this title, but such distributor or importer may not have a license or certificate of approval as a supplier issued in its own name.
Example: B&W Distributing, LLC is the liquor licensee for BW Distributing. B&W Distributing, LLC wants to purchase stock in ABC Winery. B&W Distributing, LLC is not required to form a separate legal entity if the amount of stock purchased is 10% or less. If the amount of stock purchased is more than 10%, B&W Distributing, LLC must form a separate legal entity to purchase the stock in the winery.
(3) Any person may request a determination by the board as to whether a proposed or existing financial interest has resulted or is more likely than not to result in undue influence or has resulted or is more likely than not to result in an adverse impact on public health and safety by filing a complaint or request for determination with the board.
(a) The board may conduct an investigation as it deems appropriate in the circumstances.
(b) If the investigation reveals the financial interest has resulted or is more likely than not to result in undue influence or an adverse impact on public health or safety, the board may issue an administrative violation notice or a notice of intent to deny the license to the industry member, the retailer, or both.
The recipient of the administrative violation notice or notice of intent to deny the license may request an administrative hearing under chapter 34.05 RCW.
[]
(2) No contract shall be made or entered into for the future delivery of liquor to any retail licensee: Provided, That)) industry member or retailer shall enter into any agreement which causes undue influence over another retailer or industry member. This regulation shall not be construed as prohibiting the placing and accepting of orders for the purchase and delivery of liquor which are made in accordance with the usual and common business practice and which are otherwise in compliance with the regulations.
(((3))) (2) No ((manufacturer, distributor, or importer,
or his employee,)) industry member shall ((directly or
indirectly solicit, give or offer to, or receive from any
retail licensee, any employee thereof, or an applicant for a
license, any)) advance and no retailer, any employee thereof,
or applicant for a retail liquor license shall receive money
or money's worth under any written or unwritten agreement or
any other business practice or arrangement such as:
(a) Gifts((,));
(b) Discounts((,));
(c) Loans of money((,));
(d) Premiums((,));
(e) Rebates((,));
(f) Free liquor of any kind((,)); or
(g) Treats or services of any nature whatsoever((; nor
shall any retail licensee, employee thereof, or an applicant
for a license, directly or indirectly, solicit, receive from,
or give or offer to any manufacturer, distributor or importer,
or his employee, any gifts, discounts, loans of money,
premiums, rebates, free liquor of any kind, treats or services
of any nature whatsoever,)) except such services as are
authorized in this regulation.
(((4))) (3) Pursuant to RCW 66.28.010 ((a manufacturer,
distributor, importer,)) an industry member or ((his))
licensed agent may perform the following services for a
retailer:
(a) Build, rotate, and restock displays, utilizing filled
cases, filled bottles or filled cans of ((his)) its own brands
only, from stock or inventory owned by the retailer.
(b) Rotate, rearrange or replenish bottles or cans of
((his)) its own brands on shelves or in the refrigerators but
is prohibited from rearranging or moving displays of ((his))
its products in such a manner as to cover up, hide or reduce
the space of display of the products of any other
((manufacturer, distributor or importer; Provided, however,
manufacturers, distributors, importers)) industry member.
(c) Industry members or any employees thereof may move or
handle in any manner any products of any other manufacturer,
importer or distributor on the premises of any retail licensee
when ((reasonable)) a two-day notice is given to other
interested ((manufacturers, distributors)) industry members or
their agents and such activity occurs during normal business
hours or upon hours that are mutually agreed.
(((b))) (d) Provide price cards and may also price goods
of ((his)) its own brands in accordance with the usual and
common business practice and which are otherwise in compliance
with the regulations.
(((c))) (e) Provide point of sale advertising material
and brand signs.
(((d))) (f) Provide sales analysis of beer and wine
products based on statistical sales data voluntarily provided
by the retailer involved for the purpose of proposing a
schematic display for beer and wine products. Any statistical
sales data provided by retailers for this purpose shall be at
no charge.
(((e))) (g) Such services may be rendered only upon the
specific approval of the retail licensee. Displays and
advertising material installed or supplied for use on a
retailer's premises must be in conformity with the board's
advertising rules as set forth in chapter 314-52 WAC.
(((5))) (4) No ((manufacturer, distributor, importer,))
industry member or employee thereof shall, directly or
indirectly, give, furnish, rent or lend to, or receive from,
any ((retail licensee)) retailer, any equipment, fixtures,
supplies or property of any kind, nor shall any retail
licensee, directly or indirectly, receive, lease or borrow
from, or give or offer to, any ((manufacturer, distributor or
importer)) industry member any equipment, fixtures, supplies
or property of any kind. Sales authorized in this regulation
shall be made on a cash on delivery basis only.
(((6))) (5) No ((manufacturer or distributor)) industry
member or employee thereof shall sell to any retail licensee
or solicit from any such licensee any order for any liquor
tied in with, or contingent upon, the retailer's purchase of
some other beverage, alcoholic or otherwise, or any other
merchandise, property or service.
(((7))) (6) In selling equipment, fixtures, supplies or
commodities other than liquor, no ((manufacturer, distributor
or importer)) industry member shall grant to ((retail
licensees)) any retailer, nor shall such ((licensees))
retailer accept, more favorable prices than those extended to
nonlicensed retailers. The price thereof shall be not less
than the ((manufacturer's, importer's, or distributor's))
industry member's cost of acquisition. In no event shall
credit be extended to any ((retail licensee)) retailer.
(((8))) (7) Any ((manufacturer, distributor or importer))
industry member who sells what is commonly referred to as
heavy equipment and fixtures, such as counters, back bars,
stools, chairs, tables, sinks, refrigerators or cooling boxes
and similar articles, shall immediately after making any such
sales have on file and available for inspection ((in
accordance with WAC 314-20-050)), records including a copy of
the invoice covering each such sale, which invoice shall
contain the following information:
(a) A complete description of the articles sold((,));
(b) The purchase price of each unit sold together with
the total amount of the sale((,));
(c) Transportation costs and services rendered in
connection with the installation of such articles((.)); and
((Such invoice shall list)) (d) The date of such sale and
affirm that full cash payment for such articles was received
from the retailer as provided in subsection (((5))) (4) of
this section.
(((9))) (8) If the board finds in any instance that any
licensee has violated this regulation, then all licenses
involved shall be held equally responsible for such violation.
| Note: | WAC 314-12-140 is not intended to be a relaxation in any respect of section 90 of the Liquor Act (RCW 66.28.010). As a word of caution to persons desiring to avail themselves of the opportunity to sell to retail licensees fixtures, equipment and supplies subject to the conditions and restrictions provided in section 90 of the act and the foregoing regulation, notice is hereby given that, if at any time such privilege is abused or experience proves that as a matter of policy it should be further curtailed or eliminated completely, the board will be free to impose added restrictions or to limit all manufacturers and distributors solely to the sale of liquor when dealing with retail licensees. WAC 314-12-140 shall not be considered as granting any vested right to any person, and persons who engage in the business of selling to retail licensees property or merchandise of any nature voluntarily assume the risk of being divested of that privilege and they will undertake such business subject to this understanding. The board also cautions that certain trade practices are prohibited by rulings issued under the Federal Alcohol Administration Act by the United States Bureau of Alcohol, Tobacco and Firearms, and WAC 314-12-140 is not intended to conflict with such rulings or other requirements of federal law or regulations. |
[Statutory Authority: RCW 66.08.030, 66.08.010, 66.16.040. 01-06-015, § 314-12-140, filed 2/26/01, effective 3/29/01. 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, § 314-12-140, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 95-17-005, § 314-12-140, filed 8/3/95, effective 9/3/95; 93-10-070, § 314-12-140, filed 5/3/93, effective 6/3/93. Statutory Authority: RCW 66.08.030(2). 92-02-014, § 314-12-140, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 66.28.010. 87-04-018 (Order 211, Resolution No. 220), § 314-12-140, filed 1/27/87. Statutory Authority: RCW 66.28.010 and 66.08.030 (2)(l). 86-09-019 (Order 181, Resolution No. 190), § 314-12-140, filed 4/9/86. Statutory Authority: RCW 66.08.030. 86-04-003 (Order 167, Resolution No. 176), § 314-12-140, filed 1/23/86. Statutory Authority: RCW 66.08.030 and 66.98.070. 84-22-060 (Order 150, Resolution No. 159), § 314-12-140, filed 11/7/84; Order 46, § 314-12-140, Rule 13, filed 6/9/76; Rule 13, filed 6/13/63.]
[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, § 314-12-141, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 91-19-071, § 314-12-141, filed 9/16/91, effective 10/17/91.]
The following sections of the Washington Administrative Code are repealed:
| WAC 314-12-135 | Business entertainment -- Records. |
| WAC 314-12-145 | Credit on nonliquor food items -- Conditions -- Recordkeeping. |
OTS-2683.2
AMENDATORY SECTION(Amending WSR 01-06-015, filed 2/26/01,
effective 3/29/01)
WAC 314-13-015
What method of payment can a retailer use
to purchase beer or wine from ((a manufacturer or
distributor)) an industry member?
Per RCW 66.28.010(1), a
retail licensee must pay cash for beer and wine prior to or at
the time of delivery by ((a distributor, brewery, or winery))
an industry member. The board will recognize the following
forms of payment as cash payment for the purposes of this
title, under the conditions outlined in this rule and in WAC 314-13-020.
(1) Checks, under the provisions of WAC 314-13-020.
(2) Credit/debit cards, under the following provisions:
(a) The credit or debit card transaction agreement must
be voluntary on the part of both the retailer and the
((manufacturer, importer, or distributor)) industry member,
and there must be no discrimination for nonparticipation in
credit or debit card transactions.
(b) A sale must be initiated by an irrevocable invoice or sale order before or at the time of delivery.
(c) Both parties must bear their respective banking costs or other costs associated with the credit or debit card service.
(d) Both parties must maintain records of transactions and have the records readily available for board review.
(e) The credit or debit card charge must be initiated by
the ((manufacturer, importer, or distributor)) industry member
no later than the first business day following delivery.
(3) Electronic funds transfer (EFT), under the following provisions:
(a) The EFT agreement must be voluntary on the part of
both the retailer and the ((manufacturer, importer, or
distributor)) industry member, and there must be no
discrimination for nonparticipation in EFT.
(b) Prior to any EFT transaction, the retail licensee
must enter into a written agreement with the ((manufacturer,
importer, or distributor)) industry member specifying the
terms and conditions for EFT as payment for alcohol or
nonalcohol beverages.
(c) A sale must be initiated by an irrevocable invoice or sale order before or at the time of delivery.
(d) Both parties must bear their respective banking costs or other costs associated with EFT service.
(e) Both parties must maintain records of transactions and have the records readily available for board review.
(f) The electronic funds transfer must be initiated by
the ((manufacturer, importer, or distributor)) retailer or
industry member no later than the first business day following
delivery and must be paid as promptly as is reasonably
practical, and in no event later than five business days
following delivery. Any attempt by a retailer to delay
payment on EFT transactions for any period of time beyond the
minimum as is reasonably practical will be considered an
unlawful attempt to purchase products on credit.
(4) Prepaid accounts. Both parties must keep accurate accounting records of prepaid accounts to ensure a cash deposit is not overextended, which is considered an extension of credit.
[Statutory Authority: RCW 66.08.030, 66.08.010, 66.16.040. 01-06-015, § 314-13-015, filed 2/26/01, effective 3/29/01.]
(1) The retailer must pay the full amount of the
transaction to the ((manufacturer, importer, or distributor))
industry member by 3 p.m. on the first business day following
receipt of the NSF report.
(2) If the retailer does not make payment by this time,
the ((manufacturer, importer, or distributor)) industry member
must report the NSF transaction to the their local board
enforcement office by 5 p.m. the next business day following
receipt of the NSF report.
(3) The local board enforcement office will contact the
retailer, who will have until 3 p.m. the next business day to
pay the NSF transaction. If the retailer does not pay the
((manufacturer, importer, or distributor)) industry member by
this time, the board will issue an administrative violation
notice to the retailer.
(4) Until the NSF transaction is paid:
(a) The ((manufacturer, importer, or distributor))
industry member who received the NSF transaction will not
deliver any beer or wine to the retailer; and
(b) It is the responsibility of the retailer to not
receive any beer or wine from any ((manufacturer, importer, or
distributor)) industry member.
[Statutory Authority: RCW 66.08.030, 66.08.010, 66.16.040. 01-06-015, § 314-13-020, filed 2/26/01, effective 3/29/01.]
(a) Spirits, beer, and wine restaurants;
(b) Spirits, beer, and wine private clubs; ((and))
(c) Spirits, beer, and wine nightclubs; and
(d) Sports/entertainment facilities.
(2) When purchasing spirituous liquor, the licensee must present the tear-off portion of the business' master license that shows its liquor endorsement.
(3) This discounted spirituous liquor may only be used for resale on the licensed premises (see WAC 314-70-010 for instructions on when a business discontinues).
(a) Possession of discounted liquor off of the licensed premises will be prima facie evidence of a violation of this rule, unless:
(i) The liquor is en route from the point of purchase to
the licensed premises((,)); or
(ii) The liquor is en route from the licensed premises of a beer and/or wine restaurant or a spirits, beer, and wine restaurant with a caterer's endorsement to an approved event being catered by the licensee.
(b) Any spirituous liquor on the licensed premises must be liquor purchased at a discount from the board, except:
(i) Under the authority of a banquet permit, see chapter 314-18 WAC; or
(ii) Liquor bottles if they are used as part of the decor, and any bottles containing liquor are locked in a display case and are not for sale.
[Statutory Authority: RCW 66.08.030, 66.08.010, 66.16.040. 01-06-015, § 314-13-025, filed 2/26/01, effective 3/29/01.]
OTS-2659.1
AMENDATORY SECTION(Amending WSR 07-02-076, filed 12/29/06,
effective 1/29/07)
WAC 314-19-015
What are the monthly reporting and tax
payment requirements?
(1) The required monthly beer and/or
wine tax reports must be:
(a) On a form furnished by the board or in a format approved by the board;
(b) Filed every month, including months with no activity or taxes due;
(c) Submitted, with the tax due, to the board on or before the twentieth day of each month, for the previous month (for example, a report listing transactions for the month of January is due by February 20). When the twentieth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day; and
(d) Filed separately for each type of liquor license or permit held.
| Type of Licensee | Tax Payment Requirements |
| (2) Washington beer and/or wine distributor | (a) Distributors must pay taxes on all beer and/or wine received during the preceding calendar month, including samples received at no charge (see WAC 314-64-080 and 314-64-090 for more information). The total tax due (per barrel for beer and per liter for wine) is to be paid by the first distributor to receive the product and must be included with the monthly report. |
| (b) Distributors do not pay taxes on beer and/or wine received from another in-state licensed distributor who has already paid the Washington state tax on the product. | |
| (c) Distributors may claim a tax refund or credit, provided that they have paid the taxes prior to claiming the credit, for the following (see WAC 314-19-030 for information on claiming a tax refund or credit): | |
| (i) Shipments exported directly to a point outside the state of Washington, including sales to interstate common carriers; | |
| (ii) Sales to any military reservation in Washington state; | |
| (iii) Product that is deemed unsalable due to freight damage, product quality, or other causes that occurred prior to receipt by the distributor, subject to the following conditions: | |
| (A) The unsalable product must be destroyed within the state of Washington (per RCW 66.24.305); | |
| (B) The licensee must notify their local liquor enforcement officer in advance for destruction of more than fifty cases of wine or two hundred cases of beer; | |
| (C) The licensee must report the destroyed product on the next required monthly report; | |
| (D) The licensee must keep records showing the reason for the destruction and an inventory of products destroyed. These records must be kept on the licensed premises and available for inspection by board employees for a period of two years; and | |
| (E) The licensee must provide documentation from the freight company with the report if they are claiming a credit due to freight damage. | |
| (3) Washington beer and/or wine importers | Importers must pay taxes on samples
received during the preceding calendar
month, as follows: (a) If the samples are used by the importer within the state of Washington, the importer must pay the tax. (b) If samples are provided to a distributor, the distributor must pay the tax. |
| (4) Domestic breweries, microbreweries, and domestic wineries | (a) Domestic breweries, microbreweries, and domestic wineries must list production for the current month only. The brewery that the domestic brewery/brand owner contracts with is required to include any products they produce for the brand owner in their production count. |
| (b) Domestic breweries, microbreweries, and domestic wineries must pay taxes on beer and/or wine that is: | |
| (i) Sold at retail on the licensed premises (or shipped to additional winery locations as authorized by RCW 66.24.170(4)), including retail sales to out-of-state residents; | |
| (ii) Sold to retail licensees; | |
| (iii) Furnished as samples to retail licensees as authorized by RCW 66.28.040, WAC 314-64-080, and 314-64-090 (does not include samples provided to distributors); | |
| (iv) Provided as donations to qualifying 501 (c)(3) or (6) nonprofit organizations per RCW 66.28.040 or to the Washington wine commission per RCW 66.12.180 and 66.24.210; | |
| (v) Received via an interplant
transfer if used as outlined in above
subsections (i), (ii), (iii), or (iv); (( |
|
| (vi) Sold at farmers markets as authorized by RCW 66.24.170(5), 66.24.240(4) and/or 66.24.244(5); or | |
| (vii) Wine that has been shipped out-of-state as nontax paid export and returned to Washington state if used as outlined in (b)(i), (ii), (iii), (iv), or (vi) of this subsection. | |
| (c) Domestic breweries, microbreweries, and domestic wineries do not pay tax on beer and/or wine that is: | |
| (i) Sold to distributors; | |
| (ii) Shipped out of a particular location for an interplant transfer; | |
| (iii) Exported directly to a point outside the state of Washington, including sales to interstate common carriers; | |
| (iv) Sold to the Washington state liquor control board; | |
| (v) Sold to any military reservation in Washington state; or | |
| (vi) Provided as a tasting on the brewery or winery premises or at additional winery locations at no charge, as authorized by RCW 66.24.170(4). See WAC 314-19-010(3) for the definition of "tastings." | |
| (5) Domestic
brewery -- Brand owners |
(a) Domestic brewery-brand owners
must file a report showing the quantity of
all beer sold or delivered to each licensed
beer distributor, or beer exported directly
to a point outside the state of
Washington, during the preceding month.
|
| (6) Out-of-state beer and/or wine certificate of approval holders | (a) Certificate of approval holders must file a report showing the quantity of all beer and/or wine sold or delivered to each licensed beer or wine distributor or importer, including samples, during the preceding month. |
| (b) Tax is due from the certificate of approval holder: | |
| (i) On samples shipped to licensed agents, and | |
| (ii) On donations to the Washington wine commission per RCW 66.12.180 and 66.24.210 or to 501 (c)(3) nonprofit charitable associations within Washington state per RCW 66.28.040. | |
| (7) Out-of-state United States beer and/or wine certificate of approval holders with a direct shipping to Washington retailer endorsement | (a) Certificate of approval holders
with this endorsement must file an
addendum report showing the quantity of
beer and/or wine sold or delivered to each
licensed retailer, including samples, during
the preceding month.
|
| (8) Out-of-state United States wine certificate of approval holders with a direct shipping to consumers endorsement | (a) A certificate of approval holder
with this endorsement must report the
total quantity of wine sold to consumers
in Washington state during the preceding
month.
|
| (9) Authorized representative certificate of approval holders-U.S. and/or foreign produced beer or wine | (a) Authorized representative certificate of approval holders must file a report showing the quantity of all beer and/or wine sold or delivered to each licensed beer or wine distributor or importer, including samples. They must list the brewery and/or winery that they represent and that had shipments into Washington state during the preceding month. |
| (b) Tax is due from the authorized representative beer and/or wine certificate of approval holders only on samples shipped to licensed agents, directly to retailers per WAC 314-64-080 and 314-64-090, donations to the Washington wine commission per RCW 66.12.180 and 66.24.210, or to 501 (c)(3) nonprofit charitable associations within Washington state per RCW 66.28.040. | |
| (10) Public house licensees | Public house licensees must pay taxes on all sales of their own product during the preceding calendar month. |
| (11) Retailer with an endorsement allowing receipt of direct shipment of beer or wine from a United States brewery, microbrewery, or winery | A Washington retailer who receives
shipments directly from a United States
brewery, microbrewery, or winery,
(( |
| (12) Wine shipper permit holder | (a) An out-of-state winery must file a report showing the total quantity of wine sold or delivered to consumers during the preceding month. |
| (b) Pay the tax due for sales of wine to Washington state residents. |
[Statutory Authority: RCW 66.08.030, 66.20.360 through [66.20].380, 66.20.390, 66.24.170, 66.24.206, 66.24.210, 66.24.240, 66.24.244, 66.24.270, 66.24.290, 66.28.170, 66.28.180, and 42.56.270. 07-02-076, § 314-19-015, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 66.24.206, 66.24.210, 66.24.230, 66.24.290, 66.24.305, 66.24.215, and 66.24.580. 04-24-007, § 314-19-015, filed 11/19/04, effective 12/20/04. Statutory Authority: RCW 66.08.030, 66.24.210, 66.24.230, 66.24.290, 66.24.305, 66.24.270, 66.24.215, 66.24.580, 66.24.206. 00-17-065, § 314-19-015, filed 8/9/00, effective 9/9/00.]
(a) The beer is produced in the United States; and
(b) The producing brewery or domestic brewery-brand owner meets the qualifications of 26 U.S.C. Sec. 5051 (a)(2).
(2) In order to qualify for this exemption, the Washington brewer or the out-of-state beer certificate of approval holder must provide the board a copy of an Alcohol and Tobacco Tax and Trade Bureau (TTB) acknowledged copy of their filing "Notice of Brewer to Pay Reduced Rate of Tax" for the calendar year as required under 27 C.F.R. Sec. 25.167; a variance for any year that waives annual submission to the TTB; or the Brewer's Notice which waives annual submission to the TTB.
(3) The tax exemption will not apply until the first day of the second month following the month the notice is received (for example, if the notice is received by the Board on January 10, the tax exemption will start on March 1).
(4) How will the distributor know what tax rate to pay for each brewery's products?
(a) The board will provide distributors a list of breweries that qualify for the reduced tax rate; and
(b) The qualifying brewery is responsible to inform the distributors when product sold to distributors exceeds the first sixty thousand barrels exempted from the additional tax.
(c) Once a qualifying brewery's sales to distributors exceeds sixty thousand barrels, the distributors must begin paying the full tax rate on their next monthly tax report.
(5) Per RCW 66.24.290, authorized representative certificate of approval holders do not qualify for the reduced rate in Washington state.
(6) The tax exemption will not apply to strong beer. Strong beer must be paid at the higher rate even when the brewery meets the qualifications for the reduced rate. Strong beer is any malt beverage that contains more than eight percent alcohol by weight.
[Statutory Authority: RCW 66.08.030, 66.24.206, 66.24.210, 66.24.230, 66.24.290, 66.24.305, 66.24.215, and 66.24.580. 04-24-007, § 314-19-035, filed 11/19/04, effective 12/20/04. Statutory Authority: RCW 66.08.030, 66.24.210, 66.24.230, 66.24.290, 66.24.305, 66.24.270, 66.24.215, 66.24.580, 66.24.206. 00-17-065, § 314-19-035, filed 8/9/00, effective 9/9/00.]
OTS-2660.3
AMENDATORY SECTION(Amending WSR 04-24-097, filed 12/1/04,
effective 1/1/05)
WAC 314-20-001
Definitions.
(((1))) Per RCW 66.04.010(2), an "authorized representative" means a person
who:
(((a))) (1) Is required to have a federal basic permit
issued by the alcohol and tobacco tax and trade bureau;
(((b))) (2) Has its business located in the United States
outside of the state of Washington;
(((c))) (3) Acquires ownership of beer that is produced
anywhere outside Washington by a brewery ((which does not hold
a certificate of approval issued by the board,)) who does not
distribute those brands for transportation into and resale in
the state of Washington((.));
(((d))) (4) Is appointed by the brewery referenced in
(((c))) subsection (3) of this ((subsection)) section as its
((exclusive)) authorized representative for marketing and
selling its products within the United States or within
Washington state, in accordance with a written agreement
between the authorized representative and the brewery. ((The
board may waive the requirement for the written agreement of
exclusivity in situations consistent with the normal marketing
practices of certain products.))
[Statutory Authority: RCW 66.08.030, 2004 c 160. 04-24-097, § 314-20-001, filed 12/1/04, effective 1/1/05.]
(2) Breweries, microbreweries, beer distributors, and
beer importers must in case of beer exported or beer sold,
transferred or shipped to another distributor, preserve all
bills of lading or other evidence of shipment for a period of
((two)) three years after such exportation, and must in the
case of sales to retailers preserve all sales slips and keep
the same on file in the office of the wholesaler for at least
((two)) three years after each sale.
(3) Each brewery, beer distributor, and beer importer may maintain microfilm records containing reproductions (including microfiche) of any record, document, or report if first approved by the board. Request for approval shall be directed to the financial division of the Washington state liquor control board and must include the following information:
(a) Records proposed to be reproduced.
(b) Reproduction process.
(c) Manner of preserving the reproduction.
(d) Facilities provided for examining or viewing such reproduction.
If the request is approved, the licensee shall provide for the examining, viewing, and reproduction of such records the same as if they were the original records.
(4) If the brewery, beer distributor, or beer importer keeps records within an automated data processing (ADP) system, the system must include a method for producing legible records that will provide the same information required of that type of record within this section. The ADP system is acceptable if it complies with the following guidelines:
(a) Provides an audit trail so that details (invoices and vouchers) underlying the summary accounting data may be identified and made available upon request.
(b) Provides the opportunity to trace any transaction back to the original source or forward to a final total. If printouts of transactions are not made when they are processed, the system must have the ability to reconstruct these transactions.
(c) Has available a full description of the ADP portion of the accounting system. This should show the applications being performed, the procedures employed in each application, and the controls used to ensure accurate and reliable processing.
(5) The provisions contained in subsections (3) and (4) of this section do not eliminate the requirement to maintain source documents, but they do allow the source documents to be maintained in some other location.
[Statutory Authority: RCW 66.08.030, 66.20.360 through [66.20].380, 66.20.390, 66.24.170, 66.24.206, 66.24.210, 66.24.240, 66.24.244, 66.24.270, 66.24.290, 66.28.170, 66.28.180, and 42.56.270. 07-02-076, § 314-20-050, filed 12/29/06, effective 1/29/07. 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, § 314-20-050, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 87-20-013 (Order 229, Resolution No. 238), § 314-20-050, filed 9/29/87; Rule 44, filed 6/13/63.]
(1) Definitions--For the purposes of this chapter:
(a) A (("beer price posting" or "price posting")) "price
list" means a declaration of the prices ((of beer sold from a
supplier to a distributor or from a distributor to a retailer,
in effect as filed with the liquor control board either
electronically or hard-copy, under the provisions of RCW 66.28.180 and TITLE 314 WAC)) at which any and all brands of
beer and any and all packages within a brand are to be sold by
the person maintaining the list. Distributors must maintain a
price list showing all such prices for sales to retailers.
Each manufacturer functioning as a distributor must maintain a
price list showing all such prices for sales to retailers as
well as showing such prices for sales to distributors. The
price list will contain the wholesale prices at which any and
all brands of beer sold by the supplier or distributor shall
be available to retailers within the state.
(b) A "beer supplier" means a microbrewery, domestic brewery, certificate of approval holder, beer importer, beer distributor acting as the first United States importer, or a distributor selling beer to another distributor.
(c) A "beer distributor" means a distributor selling to a retailer, a domestic brewery acting as a distributor, a microbrewery acting as a distributor, or a certificate of approval holder with a direct shipping to Washington retailer endorsement selling beer of its own production to a retailer.
(2) ((Filing deadlines.
| (( |
|
(d) When a price posting has been deposited in the United States mail addressed to the board, it will be considered filed or received on the date shown by the United States post office cancellation mark on the envelope, or on the date it was mailed if it is established to the satisfaction of the board that the actual mailing occurred on an earlier date.
(3) Filing date exceptions -- Whenever a filing deadline falls on Saturday, Sunday, or a legal holiday, a price posting may be filed not later than midnight the next business day.
(4) No changes from previous month--If a beer supplier or distributor makes no changes in any items or prices listed in the last filed and approved price posting, the prices will remain in effect for each succeeding posting period until a revised price posting is filed and approved.
(5) Temporary)) Products and price ((reductions))
lists -- If a beer supplier or distributor ((files price
postings that)) lists selected items on which prices are
temporarily reduced ((for one posting period only)), these
prices ((postings)) must clearly reflect all items((,)) and
the selling price((, and the posting period for which the
price reductions will be in effect. At the expiration of the
posting period during which the reductions were in effect, the
special price posting will become void and the last regularly
filed and effective price posting will again become
effective)). All products must be made available to all
retail licensees to the extent it is reasonably practical to
do so and all retail licensees must be given reasonable notice
of all prices and price changes.
(((6))) (3) Distributor changes--
(a) The following guidelines apply when a beer supplier
makes a distributor change outside of the regular distributor
appointment timelines ((outlined in subsection (2) of this
rule:
(i))). The supplier must notify the board in writing that he/she wishes to change his/her current distributor and appoint a new distributor to be effective immediately.
(((ii) The new distributor must agree to take the
currently posted prices of the old distributor until the new
distributor is able to post his/her own prices during the next
regular posting period.
(iii) If a beer supplier has a territory or brand agreement with a distributor and wants to change a distributor appointed to a certain brand(s) or territory(ies), the board may allow the new distributor to assume the prior distributor's price postings for the brand and/or territory in order to avoid disruption of the market.))
(b) A beer supplier must notify the board if any of the
contracts or agreements listed in this rule are revised or
terminated by either party. ((The board may immediately
authorize a price posting if a beer distributor assumes the
wholesale price postings from the previously appointed
distributor.
(c) Prices and other conditions of price postings in effect at the time of the distributor change may not be changed until subsequent filings are submitted to the board and become effective.
(7))) (4) Price ((postings)) lists for new
distributors--When the board issues a new beer distributor
license, the licensee ((may file an initial price posting and
request that the price posting be placed into effect
immediately. The board may grant this immediate approval if
the price posting is in compliance with this rule and with all
other applicable laws and rules)) must have a price list
available.
(((8))) (5) Accommodation sales -- The provisions of this
rule do not apply((, and filings are not required,)) when a
beer distributor makes an accommodation sale to another beer
distributor and this sale is made at a selling price that does
not exceed the laid-in cost of the beer being sold.
Accommodation sales may only be made when the distributor
purchasing the beer is an appointed distributor of the
supplier, when the distributor is an authorized purchaser of
the brand and product being sold, and when the supplying
distributor is appointed by the supplier.
[Statutory Authority: RCW 66.08.030, 66.20.360 through [66.20].380, 66.20.390, 66.24.170, 66.24.206, 66.24.210, 66.24.240, 66.24.244, 66.24.270, 66.24.290, 66.28.170, 66.28.180, and 42.56.270. 07-02-076, § 314-20-100, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 66.28.180, and 2004 c 160. 04-19-155, § 314-20-100, filed 9/22/04, effective 10/23/04. 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, § 314-20-100, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030, 66.98.070 and 66.08.060. 86-16-060 (Order 173, Resolution No. 182), § 314-20-100, filed 8/5/86. Statutory Authority: RCW 66.08.030. 85-21-020 (Order 166, Resolution No. 175), § 314-20-100, filed 10/9/85, effective 12/10/85; 82-16-069 (Order 91, Resolution No. 100), § 314-20-100, filed 8/2/82. Statutory Authority: RCW 66.08.030, 66.08.060 and 66.98.070. 78-02-056 (Order 62), § 314-20-100, filed 1/20/78, effective 7/1/78; Order 54, § 314-20-100, filed 5/24/77, effective 7/1/77; Order 51, § 314-20-100, filed 12/15/76; Order 18, § 314-20-100, filed 1/13/72, effective 2/14/72; Order 15, § 314-20-100, filed 5/13/71, effective 7/1/71; Rule 49, filed 6/13/63.]
OTS-2669.4
AMENDATORY SECTION(Amending WSR 04-24-097, filed 12/1/04,
effective 1/1/05)
WAC 314-24-001
Definitions.
(((1))) Per RCW 66.04.010(2), an "authorized representative" means a person
who:
(((a))) (1) Is required to have a federal basic permit
issued by the alcohol and tobacco tax and trade bureau;
(((b))) (2) Has its business located in the United States
outside of the state of Washington;
(((c))) (3) Acquires ownership of wine that is produced
anywhere outside Washington by a winery which does not ((hold
a certificate of approval issued by the board,)) distribute
those brands for transportation into and resale in the state
of Washington((.));
(((d))) (4) Is appointed by the winery referenced in
(((c))) subsection (3) of this ((subsection)) section as its
((exclusive)) authorized representative for marketing and
selling its products within the United States or within
Washington state, in accordance with a written agreement
between the authorized representative and the winery. ((The
board may waive the requirement for the written agreement of
exclusivity in situations consistent with the normal marketing
practices of certain products, such as classified growths.))
[Statutory Authority: RCW 66.08.030, 2004 c 160. 04-24-097, § 314-24-001, filed 12/1/04, effective 1/1/05.]
(2) Any domestic winery using wine, brandy or wine spirits as provided in subsection (1) of this section, shall make and file with the board, not later than the tenth day of each month upon forms prescribed and furnished by the board, a report showing all transactions of such domestic winery in the purchase and/or use of wine, brandy or wine spirits as provided in said subsection (1), and shall retain one copy of such report in its own files, and shall keep and preserve for a period of not less than two years any bills of lading or other documents supporting such report. One copy of the bill of lading covering such sale and shipment to a domestic winery is to be forwarded to the board by the shipping winery or fruit distillery, at the time of such shipment.
(3) A domestic winery may ship Washington wine out of and may return such wine to Washington state for ultimate sale. The following conditions apply:
(a) The wine is produced in Washington by a licensed winery.
(b) The export shall be from the licensed winery and returned to the same entity.
(c) The returned wine must not have been altered in any way, with the exception of sparkling wine.
(d) A domestic winery returning previously exported Washington wine must comply with tax collection and tracking requirements initiated by the liquor control board.
(e) A domestic winery must keep on file for audit purposes clear source records (shipping documents, etc.) with monthly reporting documents. Records need to indicate what wine was returned to the state that was previously reported as an export (including number of cases and gallons).
[Statutory Authority: RCW 66.08.030. 86-11-014 (Order 184, Resolution No. 193), § 314-24-070, filed 5/13/86; Order 14, § 314-24-070, filed 12/1/70, effective 1/1/71; Order 5, § 314-24-070, filed 8/7/69, effective 9/8/69; Rule 65, filed 6/13/63.]
(2) A winery warehouse is a premises located off the winery premises that is used for the storage of bulk wine and the distribution of the winery's own products. Storage of bulk wine may require a federal registry number.
(3) No part of the production process may take place at the winery warehouse premises.
(4) There may be no retail sales from the winery warehouse premises.
(5) The winery warehouse must be approved by the board under RCW 66.24.010 and the number of warehouses off the winery premises may not exceed one.
[]
(2) Every domestic winery, wine distributor, and wine
importer, shall, in the case of sales of wine within the
state, keep and preserve all invoices, bills of lading, sales
slips, and other evidence of sale, in the office of the
domestic winery, wine distributor or wine importer for at
least ((two)) three years after each sale.
(3) Every domestic winery, wine distributor, and wine
importer, shall, in the case of wine exported from the state,
keep and preserve all bills of lading and other evidence of
shipment in the office of the domestic winery, wine
distributor, or wine importer for at least ((two)) three years
after each shipment.
(4) Both the shipping and receiving licensees and
permittees, as the case may be, shall keep and preserve all
invoices, bills of lading, sales slips, and other evidence of
sale, transfer or shipment in their respective offices for at
least ((two)) three years after each sale, transfer or
shipment.
(5) Licensees and permittees may maintain microfilm records containing reproductions (including microfiche) of any record, document, or report if first approved by the board. Request for approval shall be directed to the financial division of the Washington state liquor control board and must include the following information:
(a) Records proposed to be reproduced.
(b) Reproduction process.
(c) Manner of preserving the reproduction.
(d) Facilities provided for examining or viewing such reproduction.
If the request is approved, the licensee or permittee shall provide for the examining, viewing, and reproduction of such records the same as if they were the original records.
(6) If the licensee or permittee keeps records within an automated data processing (ADP) system, the system must include a method for producing legible records that will provide the same information required of that type of record within this section. The ADP system is acceptable if it complies with the following guidelines:
(a) Provides an audit trail so that details (invoices and vouchers) underlying the summary accounting data may be identified and made available upon request.
(b) Provides the opportunity to trace any transaction back to the original source or forward to a final total. If printouts of transactions are not made when they are processed, the system must have the ability to reconstruct these transactions.
(c) Has available a full description of the ADP portion of the accounting system. This should show the applications being performed, the procedures employed in each application, and the controls used to ensure accurate and reliable processing.
(7) The provisions contained in subsections (5) and (6) of this section do not eliminate the requirement to maintain source documents, but they do allow the source documents to be maintained in some other location.
[Statutory Authority: RCW 66.08.030, 66.20.360 through [66.20].380, 66.20.390, 66.24.170, 66.24.206, 66.24.210, 66.24.240, 66.24.244, 66.24.270, 66.24.290, 66.28.170, 66.28.180, and 42.56.270. 07-02-076, § 314-24-150, filed 12/29/06, effective 1/29/07. 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, § 314-24-150, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 87-20-013 (Order 229, Resolution No. 238), § 314-24-150, filed 9/29/87; Order 5, § 314-24-150, filed 8/7/69, effective 9/8/69; Rule 75, filed 6/13/63.]
(1) Definitions -- For the purposes of this chapter:
(a) A (("wine price posting" or "price posting")) "price
list" means a declaration of the prices ((of wine sold from a
supplier to a distributor or from a distributor to a retailer,
in effect as filed with the liquor control board either
electronically or hard copy, under the provisions of RCW 66.28.180 and TITLE 314 WAC)) at which any and all brands of
wine and any and all packages within a brand are to be sold by
the person maintaining the list. Distributors must maintain a
price list showing all such prices for sales to retailers.
Each supplier functioning as a distributor must maintain a
price list showing all such prices for sales to retailers as
well as showing such prices for sales to distributors. The
price list will contain the wholesale prices at which any and
all brands of wine sold by the supplier or distributor shall
be available to retailers within the state.
(b) A "wine supplier" means a domestic winery, certificate of approval holder, wine importer, wine distributor acting as the first United States importer, or a distributor selling wine to another distributor.
(c) A "wine distributor" means a distributor selling to a retailer, a domestic winery acting as a distributor, or a certificate of approval holder with a direct shipping to Washington retailer endorsement selling wine of its own production to a retailer.
(2) ((Filing deadlines.
| (( |
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(d) When a price posting has been deposited in the United States mail addressed to the board, it will be considered filed or received on the date shown by the United States post office cancellation mark on the envelope, or on the date it was mailed if it is established to the satisfaction of the board that the actual mailing occurred on an earlier date.
(3) Filing date exception -- Whenever a filing deadline falls on Saturday, Sunday, or a legal holiday, a price posting may be filed not later than the close of business the next business day.
(4) No changes from previous month--If a wine supplier or distributor makes no changes in any items or prices listed in the last filed and approved price posting, the prices will remain in effect for each succeeding posting period until a revised price posting is filed and approved.
(5) Temporary)) Products and price ((reductions))
lists -- If a wine supplier or distributor ((files price
postings that)) lists selected items on which prices are
temporarily reduced ((for one posting period only)), ((these))
the prices ((postings)) must clearly reflect all items((,))
and the selling price((, and the posting period for which the
price reductions will be in effect. At the expiration of the
posting period during which the reductions were in effect, the
special price posting will become void and the last regularly
filed and effective price posting will again become
effective)). All products must be made available to all
retail licensees to the extent it is reasonably practical to
do so and all retail licensees must be given reasonable notice
of all prices and price changes.
(((6))) (3) Distributor changes --
(a) The following guidelines apply when a wine supplier
makes a distributor change outside of the regular distributor
appointment timelines ((outlined in subsection (2) of this
rule:
(i))). The supplier must notify the board in writing that he/she wishes to change his/her current distributor and appoint a new distributor to be effective immediately.
(((ii) The new distributor must agree to take the
currently posted prices of the old distributor until the new
distributor is able to post his/her own prices during the next
regular posting period.
(iii) If a wine supplier has a territory or brand agreement with a distributor and wants to change a distributor appointed to a certain brand(s) or territory(ies), the board may allow the new distributor to assume the prior distributor's price postings for the brand and/or territory in order to avoid disruption of the market.))
(b) A wine supplier must notify the board if any of the
contracts or agreements listed in this rule are revised or
terminated by either party. ((The board may immediately
authorize a price posting if a wine distributor assumes the
wholesale price postings from the previously appointed
distributor.
(c) Prices and other conditions of price postings in effect at the time of the distributor change may not be changed until subsequent filing are submitted to the board and become effective.
(7))) (4) Price ((postings)) lists for new
distributors--When the board issues a new wine distributor
license, the licensee ((may file an initial price posting and
request that the price posting be placed into effect
immediately. The board may grant this immediate approval if
the price posting is in compliance with this rule and with all
other applicable laws and rules)) must have a price list
available.
(((8))) (5) Accommodation sales -- The provisions of this
rule do not apply((, and filings are not required,)) when a
wine distributor makes an accommodation sale to another wine
distributor and this sale is made at a selling price that does
not exceed the laid-in cost of the wine being sold.
Accommodation sales may only be made when the distributor
purchasing the wine is an appointed distributor of the
supplier, when the distributor is an authorized purchaser of
the brand and product being sold, and when the supplying
distributor is appointed by the supplier.
[Statutory Authority: RCW 66.08.030, 66.20.360 through [66.20].380, 66.20.390, 66.24.170, 66.24.206, 66.24.210, 66.24.240, 66.24.244, 66.24.270, 66.24.290, 66.28.170, 66.28.180, and 42.56.270. 07-02-076, § 314-24-190, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 66.28.180, and 2004 c 160. 04-19-155, § 314-24-190, filed 9/22/04, effective 10/23/04. 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, § 314-24-190, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 87-15-111 (Order 222, Resolution No. 231), § 314-24-190, filed 7/22/87. Statutory Authority: RCW 66.08.030, 66.98.070 and 66.08.060. 86-16-060 (Order 173, Resolution No. 182), § 314-24-190, filed 8/5/86. Statutory Authority: RCW 66.08.030. 82-16-069 (Order 91, Resolution No. 100), § 314-24-190, filed 8/2/82. Statutory Authority: RCW 66.08.030 and 66.98.070. 81-22-026 (Order 85, Resolution No. 94), § 314-24-190, filed 10/28/81. Statutory Authority: RCW 66.08.030, 66.08.060 and 66.98.070. 78-02-056 (Order 62), § 314-24-190, filed 1/20/78, effective 7/1/78; Order 54, § 314-24-190, filed 5/24/77, effective 7/1/77; Order 51, § 314-24-190, filed 12/15/76; Order 26, § 314-24-190, filed 8/14/73; Order 18, § 314-24-190, filed 1/13/72, effective 2/14/72; Order 15, § 314-24-190, filed 5/13/71, effective 7/1/71; Order 5, § 314-24-190, filed 8/7/69, effective 9/8/69; Rule 81, filed 6/13/63.]
(1) Wine which is not in a salable condition may be returned by a retail licensee to the wine distributor from whom purchased, provided it is immediately replaced by the wine distributor with an identical quantity, type and brand of wine: Provided, That if the brand of wine is not presently in the wine distributor's stock and is not available to the distributor in the immediate future, a cash refund may be made to the retail licensee upon the approval of the board first being obtained.
(a) Every wine distributor shall maintain on the licensed
premises for a period of ((two)) three years complete records
of all refunds and exchanges made under this section including
an inventory of unsalable wine returned to such distributor by
any retail licensee.
(b) Such unsalable wine which requires reconditioning or destruction shall be returned by the wine distributor to the domestic winery which manufactured or produced the same, or to the importer who imported such wine. When wine which has been returned to a domestic winery by any person for reconditioning or destruction has been assembled at the winery, a complete inventory in duplicate of unsalable wine shall be filed with the board by the winery with a request that inspection be made of the returned wine before the reconditioning process or destruction is started. When wine has been returned by the distributor to the importer who imported such wine, a complete inventory of said wine shall be filed in duplicate with the board by the importer with a request that inspection be made of the returned wine before the wine is destroyed or returned to the out-of-state manufacturer.
(c) Wine which is not in a salable condition and has been returned to a domestic winery or importer by a distributor may be replaced by the supplier with an identical quantity, type, and brand of wine: Provided, That if the brand of wine is not presently in the winery or importer's stock and is not available to the supplier in the immediate future, a cash refund or credit may be made to the distributor by the supplier. Credit extended for the return of product should be noted on a separate document from the original invoice. Except as provided herein, no other adjustment, by way of a cash refund or otherwise, shall be made by the winery or wine distributor.
(2) Wine may be returned by a retail licensee or by a governmental agency who has seized the same to the wine distributor selling such wine in the event the retailer goes out of the business of selling wine at retail or has their license changed to a wine restricted license, and in such case a cash refund may be made upon return of the wine, provided that consent of the board is first had and obtained.
(3) Wine different from that ordered which has been delivered in error to a retail licensee may be returned to a wine distributor and either replaced with that wine which was ordered or a cash refund may be made upon the approval of the board first being obtained: Provided, That the error in delivery shall be discovered and corrected within eight days of the date the delivery was made.
(4) A distributor may return salable wine to a Washington winery provided the winery reimburses the distributor for the cost of the wine plus the wine tax which was paid by the distributor. The winery will then put any wine returned from a distributor into their tax paid area at the winery.
[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, § 314-24-210, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 87-16-003 (Order 227, Resolution No. 236), § 314-24-210, filed 7/23/87; 86-24-029 (Order 204, Resolution No. 213), § 314-24-210, filed 11/25/86. Statutory Authority: RCW 66.08.030 and 66.98.070. 82-17-022 (Order 109, Resolution No. 118), § 314-24-210, filed 8/9/82; Order 5, § 314-24-210, filed 8/7/69, effective 9/8/69; Rule 83, filed 6/13/63.]
OTS-2661.1
NEW SECTION
WAC 314-28-005
Definitions.
The following definition
applies to distilleries.
"Domestic distillery" means any distillery licensed under RCW 66.24.140 and located in the state of Washington.
[]
OTS-2663.3
AMENDATORY SECTION(Amending WSR 98-18-097, filed 9/2/98,
effective 10/3/98)
WAC 314-52-080
Novelty advertising.
(1) Novelty branded
promotional advertising items ((shall)) which are of nominal
value, singly or in the aggregate, may be provided to
retailers by industry members. Singly or in the aggregate is
per licensed location. Such items include, but ((shall)) are
not ((be)) limited to((,)): Trays, lighters, blotters, post
cards, pencils, coasters, menu cards, meal checks, napkins,
clocks, ((wearing apparel,)) mugs, glasses, ((knives, lamp
shades, or similar items on which the logo, liquor brand name
or name of a manufacturer of an alcoholic beverage has been
imprinted.
(2) No liquor manufacturer, distributor, or importer, or employee thereof, shall provide without charge, directly or indirectly, any novelty advertising items to any retail licensee; nor shall any retail licensee, or employee thereof, accept without charge any liquor novelty advertising items directly or indirectly, from any manufacturer, distributor, or importer, or employee thereof.
(3) A manufacturer, distributor, or importer,)) bottle or can openers, corkscrews, matches, printed recipes, shirts, hats, visors, and other similar items. Branded promotional items:
(a) Must be used exclusively by the retailer or its employees in a manner consistent with its license;
(b) Must bear imprinted advertising matter of the industry member only;
(c) May only be provided by industry members to retailers and their employees;
(d) May not be provided by or through retailers or their employees to retail customers.
(2) An industry member is not obligated to provide any branded promotional items, and a retailer may not require an industry member to provide such branded promotional items as a condition for selling any alcohol to the retailer.
(3) Any industry member, retailer, or other person asserting the provision of branded promotional items has resulted or is more likely than not to result in undue influence or an adverse impact on public health and safety, or is otherwise inconsistent with the criteria in subsection (1) of this section, may file a complaint with the board.
Upon receipt of a complaint the board may conduct an investigation as it deems appropriate in the circumstances.
(a) The board may issue an administrative violation notice to the industry member, to the retailer, or both.
(b) The recipient of the administrative violation notice may request a hearing under chapter 34.05 RCW.
(4) An industry member or their employee ((thereof)), may
sell, and a retail licensee may purchase, for use, resale, or
distribution on the licensed premises any novelty advertising
items. The price ((thereof)) shall be not less than the
((manufacturer's, importer's, or distributor's)) industry
member's cost of acquisition. In no event shall credit be
extended to any retail licensee. The purchase by retail
licensees of such items shall be supported by invoices or
signed vouchers which shall be preserved for ((two)) three
years on the licensed premises and available for immediate
inspection by board enforcement officers.
(((4) A manufacturer, importer, or distributor)) (5) An
industry member who sells novelty advertising items to retail
licensees shall keep on file the original((s)) or ((copies))
copy of all sales slips, invoices, and other memoranda
covering all purchases of novelty advertising items ((from))
by the ((supplier or manufacturer of such items)) industry
member and shall also keep on file a copy of all invoices,
sales slips, or memoranda reflecting the sales to retail
licensees or other disbursement of all novelty advertising
items. Such records shall be maintained in a manner
satisfactory to the board and must be preserved in the office
of the ((manufacturer, importer, or distributor)) industry
member for a period of at least ((two)) three years after each
purchase or sale. Any manufacturer which does not maintain a
principal office within the state shall, when requested,
furnish the above required records at a designated location
within the state for review by the board.
[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, § 314-52-080, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 93-11-028, § 314-52-080, filed 5/10/93, effective 6/10/93. Statutory Authority: RCW 66.08.030 and 66.98.070. 82-17-031 (Order 108, Resolution No. 117), § 314-52-080, filed 8/11/82. Statutory Authority: RCW 66.08.030, 66.08.060 and 66.98.070. 81-04-011 (Order 76, Resolution No. 85), § 314-52-080, filed 1/28/81; 80-09-078 (Order 73, Resolution No. 82), § 314-52-080, filed 7/18/80; 78-02-056 (Order 62), § 314-52-080, filed 1/20/78; Order 46, § 314-52-080, Rule 123, filed 6/9/76; Order 10, § 314-52-080, filed 10/27/70, effective 11/27/70; Rule 123, filed 6/13/63.]