Effective Date of Rule: Thirty-one days after filing.

     Purpose: Current rules need to be revised and/or repealed to implement sections of Initiative 1183 that passed on November 8, 2011.

     Citation of Existing Rules Affected by this Order: Repealing WAC 314-13-025, 314-13-030, 314-13-040, 314-36-010, 314-36-020, 314-37-010, 314-37-020, 314-37-030, 314-64-010, 314-64-020, 314-64-040, 314-64-050, 314-76-015, 314-76-020, 314-76-025, 314-76-030 and 314-76-035; and amending WAC 314-05-020, 314-05-030, 314-11-025, 314-11-040, 314-11-085, 314-11-097, 314-11-100, 314-11-105, 314-11-110, 314-13-010, 314-13-015, 314-13-020, 314-24-040, 314-24-070, 314-24-160, 314-24-180, 314-24-190, 314-27-010, 314-30-010, 314-36-040, 314-36-060, 314-36-080, 314-36-090, 314-36-100, 314-36-130, 314-38-010, 314-38-050, 314-42-010, 314-44-005, 314-45-010, and 314-64-08001.

     Statutory Authority for Adoption: RCW 66.08.030, 66.08.050.

      Adopted under notice filed as WSR 12-11-009 on May 3, 2012.

     Changes Other than Editing from Proposed to Adopted Version: WAC 314-52-110 is not included. No revisions will be made to the current rule.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 31, Repealed 17.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 31, Repealed 17.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 31, Repealed 17.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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: August 1, 2012.

Sharon Foster

Chairman

OTS-4738.2

AMENDATORY SECTION(Amending WSR 09-02-013, filed 12/29/08, effective 1/29/09)

WAC 314-05-020   What is a special occasion license?   (1) Per RCW 66.24.380, a special occasion license allows a nonprofit organization to sell, at a specified date, time, and place:

     (a) Spirits, beer, and wine by the individual serving for on-premises consumption; and

     (b) Spirits, beer and wine in original, unopened containers for off-premises consumption.

     (2) Special occasion licensees are limited to twelve days per calendar year (see RCW 66.24.380(1) for an exception for agricultural fairs).

     (3) The fee for this license is $60 per day, per event. Multiple alcohol service locations at an event are an additional sixty dollars per location.

     (4) Per RCW 66.24.375, all proceeds from the sale of alcohol at a special occasion event must go directly back into the nonprofit organization, except for reasonable operating costs for actual services performed at compensation levels comparable to like services within the state.

     (5) A charitable nonprofit organization or a local winery industry association is not disqualified from obtaining a special occasion license even if its board members are also officers, directors, owners, or employees of either a licensed domestic winery or a winery certificate of approval holder. The charitable nonprofit organization must be registered under section 501 (c)(3) of the Internal Revenue Code, and the local wine industry association must be registered under section 501 (c)(6) of the Internal Revenue Code.

[Statutory Authority: RCW 66.08.030. 09-02-013, § 314-05-020, filed 12/29/08, effective 1/29/09. Statutory Authority: RCW 66.08.030, 66.24.375, 66.24.380, 66.28.010. 04-22-078, § 314-05-020, filed 11/2/04, effective 12/3/04.]

     (2) Special occasion licensees may get alcohol for the event only from the following sources:

     (a) Spirits ((must be purchased from a Washington state-run or contract liquor store;

     (b))), beer, and wine must be purchased at retail from a licensed retailer((,)); from a spirits, beer, or wine distributor((,)); from a distiller, a craft distiller, a domestic brewery, microbrewery, or winery((,)) acting as a distributor of its own product((,)); or from a certificate of approval holder with a direct shipping to Washington retailer endorsement. Special occasion licensees are allowed to pay for beer or wine used for the special occasion event immediately following the end of the special occasion event; and

     (((c))) (b) Per RCW 66.28.040, in state breweries and wineries, out-of-state breweries and wineries holding a certificate of approval license, domestic distillers or an accredited representative of a distiller, manufacturer, importer, or distributor of spirituous liquor may donate beer, wine, and spirits to special occasion licensees that are nonprofit 501 (c)(3) charitable organizations or nonprofit 501 (c)(6) organizations. ((Spirits donated to a special occasion licensee must be purchased from a state or contract liquor store.))

     (3) Special occasion licensees may not advertise or sell alcohol below cost. If donated product is sold by the special occasion licensee, it may not be advertised or sold below the manufacturers' cost.

     (4) Per RCW ((66.28.010)) 66.28.310, alcohol manufacturers, importers and distributors may provide advertising, pouring, or dispensing of beer or wine at a beer or wine tasting exhibition or judging event, but may not provide money, goods, or services to special occasion licensees.

     (a) Wineries and distilleries may pour at any special occasion event.

     (b) Wineries or breweries that are participating in a special occasion event may pay reasonable booth fees to the special occasion licensee. Booth fees must be uniform for all participating wineries and breweries.

     (5) Per RCW 66.24.380, the sale, service, and consumption of alcohol must be confined to a designated location(s).

     (6) If a special occasion license function is held at an establishment that has a liquor license:

     (a) The special occasion function must be held in an area of the premises separate from areas open to the general public during the time the special occasion function is occurring, and the licensed premises' liquor cannot be sold or served in the same area(s) as the special occasion license function.

     (b) The liquor licensee cannot charge for the liquor purchased by the special occasion licensee for service at the special occasion event, but can charge for room usage, services, etc. The liquor licensee must sign the special occasion application giving permission for the special occasion licensee to bring and sell their alcohol at the liquor licensed premises.

     (c) The special occasion license will not be issued for use at premises whose liquor license will be suspended on the date(s) of the scheduled event.

[Statutory Authority: RCW 66.08.030. 11-23-046, § 314-05-030, filed 11/9/11, effective 12/10/11; 09-02-013, § 314-05-030, filed 12/29/08, effective 1/29/09. 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, § 314-05-030, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 66.24.375, 66.24.380, 66.28.010. 04-22-078, § 314-05-030, filed 11/2/04, effective 12/3/04.]

OTS-4739.3

AMENDATORY SECTION(Amending WSR 08-03-081, filed 1/16/08, effective 2/16/08)

WAC 314-11-025   What are the forms of acceptable identification?   (1) ((Per RCW 66.16.040,)) Following are the forms of identification that are acceptable to verify a person's age for the purpose of selling, serving, or allowing a person to possess or consume alcohol:

     (a) Driver's license, instruction permit, or identification card of any state, or province of Canada, from a U.S. territory or the District of Columbia, or "identicard" issued by the Washington state department of licensing per RCW 46.20.117;

     (b) United States armed forces identification card issued to active duty, reserve, and retired personnel and the personnel's dependents, which may include an embedded, digital signature in lieu of a visible signature;

     (c) Passport;

     (d) Merchant Marine identification card issued by the United States Coast Guard; and

     (e) Enrollment card issued by the governing authority of a federally recognized Indian tribe located in Washington, if the enrollment card incorporates security features comparable to those implemented by the department of licensing for Washington driver's licenses.

     (2) If the identification document has an expiration date, a person may not use the document after the expiration date to verify his or her age.

[Statutory Authority: RCW 66.16.040. 08-03-081, § 314-11-025, filed 1/16/08, effective 2/16/08. 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, § 314-11-025, filed 2/26/01, effective 3/29/01.]

     (1) Per RCW 66.44.340 and RCW 66.44.350, persons between eighteen and twenty-one years of age may perform the following duties:

	Duties 18, 19, and 20 year old employees may perform, as long as there is a person twenty-one years of age or older on duty supervising the sale of liquor	Duties 18, 19, and 20 years old employees may not perform
(a) In a grocery store or beer/wine specialty shop:	▪     Sell, stock, and handle beer and wine; and	Supervise employees who sell, stock, or handle beer and/or wine.
	▪     Deliver beer and/or wine to a customer's car with the customer (for the purposes of this rule, there is no minimum age requirement for an employee of a grocery store or a beer/wine speciality shop to deliver beer and/or wine to a customer's car with the customer).
(b) In a spirits retail business:	▪     As long as there are at least two supervisors at least twenty-one years of age on duty, persons 18, 19, and 20 years old may sell, stock, and handle spirits.	Supervise employees who sell, stock, or handle spirits.
	▪     Deliver spirits to a customer's car with the customer (for purposes of this rule, there is no minimum age requirement for an employee of a spirits retailer to deliver spirits to a customer's car with the customer).
(((b))) (c) In an establishment that sells liquor for on-premises consumption:	▪     Take orders for, serve, and sell liquor in areas classified as open to persons under twenty-one years of age; and	Functions of a bartender, including:
	▪     Enter areas designated as off-limits to persons under twenty-one years of age to perform duties such as picking up liquor for service in other parts of the establishment; cleaning up, setting up, and arranging tables; delivering messages; serving food; and seating patrons; provided the employee does not remain in the area any longer than is necessary to perform the duties.	▪     Mixing drinks;
		▪     Drawing beer or wine from a tap;
		▪     Pouring beer or wine anywhere except at the patrons table; and
		▪     Providing an employee spirits, beer by the pitcher or glass, or wine by the carafe or glass for delivery to a customer.
(d) In a spirits retail business:		Supervise employees who sell, stock, or handle spirits.

     (2) Per RCW 66.44.316 and 66.44.318, the following persons that are eighteen, nineteen, or twenty years of age may remain on licensed premises or portions of premises that are restricted from persons under twenty-one years of age, but only during the course of his or her employment:

     (a) Persons performing janitorial services during the hours when there is no sale, service, or consumption of liquor on the premises;

     (b) Employees of amusement device companies for the purpose of installing, maintaining, repairing, or removing any amusement device;

     (c) Security or law enforcement officers and firefighters during the course of their official duties and if they are not the direct employees of the licensee; and

     (d) Professional musicians, per WAC 314-11-045.

[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, § 314-11-040, 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, § 314-11-040, filed 2/26/01, effective 3/29/01.]

     (2) An exception to this requirement is that on-premises retail licensees may give a customer a drink free of charge under limited circumstances, such as a customer's birthday or to compensate for unsatisfactory products or services. Free liquor may not be used in advertising or as part of a promotion.

[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, § 314-11-085, 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.

[Statutory Authority: RCW 66.08.030 and 66.28.320. 10-01-090, § 314-11-097, filed 12/16/09, effective 1/16/10.]

[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, § 314-11-100, filed 2/26/01, effective 3/29/01.]

     (a) The board must maintain a record of the type, brand, and amount of liquor seized for at least one year.

     (b) The lawfully seized liquor may be destroyed only after:

     (i) The board's charges of a violation of Title 66 RCW or board regulations have been sustained after an administrative proceeding pursuant to chapter 314-29 WAC as now or hereafter amended, in which the liquor to be destroyed has been the subject of, or evidence in, the administrative proceeding; or

     (ii) The board's charges of a violation of Title 66 RCW or board regulations have been admitted or are not contested by the person from whom the liquor was seized and the liquor seized was the subject of the charged violation; or

     (iii) The liquor was seized pursuant to lawful arrest and liquor was held as evidence in a criminal proceeding where a final disposition has been reached; or

     (iv) When no administrative or judicial proceedings are held, all parties who claim a right, title, or interest in the seized liquor have been given notice and opportunity for a hearing to determine his or her right, title, or interest in the subject liquor. Claims of right, title, or interest in seized liquor must be made to the board, in writing, within thirty days of the date of seizure.

     (2) If the liquor lawfully seized is in its original, sealed container, the board may either:

     (a) ((Return the product to a state liquor store for discounted resale;)) Sell the unopened beer, wine, or spirits to the distributor selling the product at a negotiated price. The bill of sale must be kept for three years; or

     (b) Upon written request from a law enforcement agency, provide the liquor to the law enforcement agency for bona fide training.

[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, § 314-11-105, filed 2/26/01, effective 3/29/01.]

     (1) ((The government agency may sell unopened, salable spirituous liquor, beer, and wine that was purchased from the board to the board under the following conditions:

     (a) The government agency must provide the board with a listing of the liquor and make the liquor available for examination and review;

     (b) The board will issue a purchase order for the liquor;

     (c) When the government agency is from within the state of Washington and the liquor was originally purchased from the board, the board will pay the licensee price listed in the official board price list then in effect, less a handling charge of 13.5 percent.

     (d) When the government agency is a federal agency, or when the government agency is from within the state of Washington but the liquor was not originally purchased from the board, or the liquor is no longer handled by the board, the board will pay a negotiated amount not to exceed ninety percent of the original approximate cost price from the distillery or manufacturer including federal tax and duty; and

     (e) After receipt of the board purchase order, the government agency that is selling the liquor will invoice the board per the prices listed on the purchase order.

     (2))) The government agency may sell opened containers of lawfully seized liquor back to the spirits, beer, and wine restaurant licensee from whom seized((, under the following conditions:

     (a))) if the licensee is going out of business and the liquor will be used for the personal use of the licensee((;

     (b) The liquor must be sold at a negotiated price after the licensee pays the board an amount to be determined by the board in lieu of the spirit, beer, and wine restaurant discount and tax exemption in effect at that time. If the licensee does not purchase the opened bottles of liquor within the period of redemption, the liquor must be destroyed)).

     (((3))) (2) The government agency may sell unopened beer ((and/or)), wine, or spirits to the distributor selling the beer ((and/or)), wine, or spirits at a negotiated price((, per the procedures outlined in WAC 314-20-070 and 314-24-210, as now or hereafter amended. Copies)). A copy of the inventory and bill of sale must be ((furnished to the board)) kept for three years.

     (((4))) (3) The government agency may sell unopened salable wine and/or beer to appropriately licensed retailers at a negotiated price under the following conditions:

     (a) The product must meet the quality standards set forth by its manufacturer((,)); and

     (b) Copies of the inventory and bill of sale must be furnished the board.

     (((5))) (4) The government agency may ship the liquor out of the state of Washington.

[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, § 314-11-110, filed 2/26/01, effective 3/29/01.]

OTS-4740.1

AMENDATORY SECTION(Amending WSR 07-02-076, filed 12/29/06, effective 1/29/07)

WAC 314-13-010   Who can retail licensees purchase beer, wine, and spirits from?  

	Definition	Who licensees can purchase from
Beer	RCW 66.04.010(3)	•     A licensed Washington distributor (including a licensed Washington brewery that distributes its own product) •     A licensed certificate of approval holder with a direct shipping to Washington retailer endorsement ((•     Washington state liquor control board store or agency))
Wine	RCW 66.04.010(((39))) (46)	•     A licensed Washington distributor (including a licensed Washington winery that distributes its own product) •     A licensed certificate of approval holder with a direct shipping to Washington retailer endorsement •     ((Washington state liquor control board state-run or contract liquor store)) A Washington licensed grocery store with a wine retailer reseller endorsement (up to 24 liters per single sale per day)
Spirits	RCW 66.04.010(((35))) (41)	((A Washington state liquor control board state-run or contract liquor store)) •     A Washington spirits distributor •     A Washington licensed distiller or craft distiller •     A licensed spirits certificate of approval holder with a direct shipping to retailer endorsement •     A spirits retail licensee may sell to an on-premises licensee (up to 24 liters per single sale per day)

[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, § 314-13-010, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 66.08.010, 66.16.040. 01-06-015, § 314-13-010, filed 2/26/01, effective 3/29/01.]

     (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 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 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 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 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 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 and 66.28.320. 10-01-090, § 314-13-015, filed 12/16/09, effective 1/16/10. 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 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 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 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 industry member or spirits retailer licensee who received the NSF transaction will not deliver any spirits, beer, or wine to the retailer; and

     (b) It is the responsibility of the retailer to not receive any spirits, beer, or wine from any industry member or spirits retailer licensee.

[Statutory Authority: RCW 66.08.030 and 66.28.320. 10-01-090, § 314-13-020, filed 12/16/09, effective 1/16/10. 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.]

     The following sections of the Washington Administrative Code are repealed:

WAC 314-13-025	How do retail licensees purchase spirituous liquor at a discount from the board?
WAC 314-13-030	What method of payment can a retailer use to purchase spirituous liquor from the board?
WAC 314-13-040	Do retail licensees have to sell liquor at a certain price?

OTS-4741.3

AMENDATORY SECTION(Amending WSR 07-02-076, filed 12/29/06, effective 1/29/07)

WAC 314-24-040   Wine labels -- Federal certificate of label approval required -- Labels to be submitted.   (1) No wine shall be imported or sold within the state of Washington until the certificate of approval holder, or domestic winery, or United States importer of foreign wine, shall have ((obtained from)) submitted to the board ((a)):

     (a) The federal certificate of label approval for such wine((.

     (1) A request for certificate of label approval must be submitted to the board on forms prescribed by the board, together with the following:

     (a))) which has been issued by the Tax and Trade Bureau, U.S. Treasury Department; and

     (b) One label of the brand and type for which ((approval)) tracking is requested for wines under seven percent alcohol by volume((; and

     (b) One copy of the federal certificate of label approval for such wine which has been issued by the Bureau of Alcohol, Tobacco, and Firearms, U.S. Treasury Department)).

     (2) Any change in label or product which requires reissuance of federal approval under the provisions of 27 C.F.R. Part 4, must also be submitted to the board in accordance with the foregoing provisions of this regulation.

     (3) Every producer, importer, bottler, distributor, or wine certificate of approval holder shall, upon request of the board or its authorized representative, furnish without cost to the board, samples of any brand of wine upon its premises for the purpose of analysis in order to determine whether the wine conforms to the quality standards set by the board in WAC 314-24-060 and conforms with commercial standards.

     (4) No label shall be used that is misleading.

     (5) No label ((will be approved which)) shall be used that is designed to be ((especially)) appealing to children or other persons under legal age to consume. Persons who appear to be under legal age to consume may be depicted on a label when, in the discretion of the board, the depiction is dignified and does not promote illegal consumption of liquor.

     (6) Wineries are not required to ((obtain a certificate of label approval from)) submit labels for tracking to the board for wine sold directly to Washington consumers under a direct shipper's permit. Wine labels may not be misleading and may not be designed to appeal especially to persons under the age of twenty-one.

[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, § 314-24-040, filed 12/29/06, effective 1/29/07. Statutory Authority: RCW 66.08.030, 2004 c 160. 04-24-097, § 314-24-040, filed 12/1/04, effective 1/1/05. 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, § 314-24-040, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 92-03-110, § 314-24-040, filed 1/21/92, effective 2/21/92; 89-02-014 (Order 274, Resolution No. 283), § 314-24-040, filed 12/28/88. Statutory Authority: RCW 66.08.030 and 66.28.110. 88-17-095 (Order 254, Resolution No. 263), § 314-24-040, filed 8/23/88; Order 57, § 314-24-040, filed 7/28/77, effective 9/1/77; Order 42, § 314-24-040, Rule 62, filed 11/6/75; Order 19, § 314-24-040, filed 8/10/72; Order 5, § 314-24-040, filed 8/7/69, effective 9/8/69; Rule 62, filed 6/13/63.]

     (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 and 66.28.320. 10-01-090, § 314-24-070, filed 12/16/09, effective 1/16/10. 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) In selling wine of its own production at retail on its premises as provided in subsection (1) of this regulation, a domestic winery shall conduct such operation in conformity with the statutes and regulations which apply to holders of such wine retailers' licenses. The winery shall maintain records of its retail operation separate from other winery operation records.

     (3) Upon written authorization of the board, pursuant to RCW 66.04.011, wine of a domestic winery's own production and/or liquor products other than wine of a licensee's own production may be consumed in designated parks and picnic areas adjacent to and held by the same ownership as the domestic winery.

     (4) A domestic winery or a lessee of a licensed domestic winery operating a spirit, beer and wine restaurant, licensed pursuant to RCW ((66.28.010)) 66.28.295, shall conduct such operation in conformity with the statutes and regulations which apply to holders of such spirit, beer and wine restaurant licenses.

     (5) A domestic winery may serve its own wine and wine not of its own production without charge on the winery premises as authorized by RCW ((66.28.040)) 66.28.295.

     (6) No retail license or fee is required for the holder of a domestic winery license to serve wine without charge on the winery premises as set forth in subsection (5) of this regulation. Before exercising this privilege, however, such winery shall obtain approval of the proposed service area and facilities. Such winery shall maintain a separate record of all wine so served.

     (7) A winery is required to obtain the appropriate retail license to sell beer, wine, or spirits on the winery premises that is not of its own production.

[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, § 314-24-160, filed 8/9/00, effective 9/9/00. 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, § 314-24-160, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 93-11-028, § 314-24-160, filed 5/10/93, effective 6/10/93; 86-12-023 (Order 190, Resolution No. 199), § 314-24-160, filed 5/28/86; Order 61, § 314-24-160, filed 12/6/77; Order 40, § 314-24-160, filed 8/21/75; Order 5, § 314-24-160, filed 8/7/69, effective 9/8/69; Rule 76, filed 6/13/63.]

     (2) Wine distributors must sell and deliver product from their licensed premises.

     (3) Wine importers may sell to the board, export wine from the state, or sell to wine distributors, but may not sell to another wine importer or to retailers.

[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, § 314-24-180, filed 9/2/98, effective 10/3/98; Order 5, § 314-24-180, filed 8/7/69, effective 9/8/69; Rule 78, filed 6/13/63.]

     (1) Definitions(( -- )) - For the purposes of this chapter:

     (a) ((A "price list" means a declaration of the prices 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))) (b) 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) Products ((and price lists -- If a wine supplier or distributor lists selected items on which prices are temporarily reduced, the prices must clearly reflect all items and the selling price.)) - 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)).

     (3) Distributor changes(( -- )):

     (a) The following guidelines apply when a wine supplier makes a distributor change outside of the regular distributor appointment timelines. 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.

     (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.

     (4) ((Price lists for new distributors--When the board issues a new wine distributor license, the licensee must have a price list available.

     (5))) Accommodation sales(( -- )) - The provisions of this rule do not apply 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 and 66.28.320. 10-01-090, § 314-24-190, filed 12/16/09, effective 1/16/10. 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.]

OTS-4742.1

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

WAC 314-27-010   Liquor purchases by ((Class)) Interstate Common Carrier licensees -- Reports(( -- Payment of markup and taxes -- Sales by in-state beer and wine suppliers)).   (1) Any ((employee)) licensee authorized by the board ((and/or any licensed importer and/or distributor)) to sell liquor may sell liquor to the holder of ((a Class)) an Interstate Common Carrier license upon presentation of a special permit issued by the board to such licensee.

     (2) Sales of liquor ((by the board)) to such properly licensed interstate commercial common passenger carriers shall be treated as sales for export ((from the state and, as such, will not be subject to collection of the state liquor taxes at the time of purchase by the licensee)).

     (3) Every federally licensed interstate commercial common passenger carrier, holding an Interstate Common Carrier license ((pursuant to chapter 245, Laws of 1975 1st ex. sess.,)) shall, on or before the ((fifteenth)) twentieth day of each month, make a report to the board, upon forms approved by the board, of all spirituous liquor, beer and wine served or sold at retail for passenger consumption by such common carrier within or over the territorial limits of the state of Washington during the preceding calendar month.

     ((At the time of filing the report prescribed herein, such common carrier shall pay to the board the board's markup on spirituous liquor, and state liquor taxes as applicable, on such spirituous liquor, beer and wine so served or sold, in an amount to approximate the revenue that would have been realized from such markup and taxes had such alcoholic beverages been purchased for use in the state.))

     (4) Licensed beer and wine importers and distributors who sell beer or wine to such properly licensed interstate commercial common passenger carriers shall treat such sales as exports from the state. ((Such importers and distributors who have paid the taxes imposed by RCW 66.24.290 or 66.24.210 on beer or wine so sold may claim refund of the taxes under procedures set forth in WAC 314-20-010 or 314-24-110, as applicable.))

[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, § 314-27-010, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030 and 66.98.070. 82-17-022 (Order 109, Resolution No. 118), § 314-27-010, filed 8/9/82; Order 42, § 314-27-010, Rule 83.6, filed 11/6/75.]

OTS-4743.1

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

WAC 314-30-010   Sales by manufacturers.   (1) Manufacturers licensed in accordance with RCW 66.24.150 may sell within the state:

     (a) Spirituous liquor only to ((the board or to an authorized vendor of the board)) spirits distributors;

     (b) Wine products only to wine distributor((s licensed in accordance with RCW 66.24.200)) licensees;

     (c) Beer products only to beer ((certificate of approval holders as authorized by RCW 66.24.270 who also hold an importer's license as authorized by RCW 66.24.260)) distributor licensees; or

     (d) To permit holders as authorized by ((Title 66)) RCW 66.20.010 (7) through (10).

     (2) The first spirits distributor, wine distributor, or beer ((certificate of approval holder with a beer importer's license)) distributor to receive spirits, wine, or malt beverages from a distiller, manufacturer, rectifier, or bottler shall be liable for the fees and/or taxes due.

     (3) Manufacturers selling spirits, wine, or malt beverage products will be considered a supplier and will be required to meet the requirements of WAC ((314-24-200 and 314-20-105)) 314-23-005, 314-24-190, and 314-20-100 respectively.

     (4) Manufacturers selling spirits to a licensed spirits distributor, wine to a licensed wine distributor, or beer to a licensed beer ((certificate of approval holder who also has a beer importer's license)) distributor shall file monthly reports with the board on forms prescribed by the board showing the quantity of liquor shipped to each above referenced licensee during the preceding month. Such report shall be submitted on or before the twentieth day of the month following the month of sale or delivery.

     (5) Failure to make such report at the time prescribed will be sufficient cause for the board to forthwith suspend or cancel the license privilege of the manufacturer. When the twentieth day of any month falls on a Sunday, or a legal holiday, the report may be filed not later than the close of business the next business day.

[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, § 314-30-010, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030 and 66.24.150. 88-20-087 (Order 265, Resolution No. 274), § 314-30-010, filed 10/5/88.]

OTS-4744.1

     (a) All importations;

     (b) All storage;

     (c) All removals; and

     (d) All exportations of liquor.

     (2) Records are to be kept in such manner and in such form as required by the board.

     (3) Each ((liquor)) spirits, beer or wine importer shall keep the board informed at all times of the location of such principal office.

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-040, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-040, filed 3/9/88; Rule 91, filed 6/13/63.]

     (2) No consumption of ((liquor)) spirits, ((including)) beer, or wine, is allowed at public storage warehouses.

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-060, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-060, filed 3/9/88; Order 5, § 314-36-060, filed 8/7/69, effective 9/8/69; Rule 93, filed 6/13/63.]

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-080, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-080, filed 3/9/88; Rule 95, filed 6/13/63.]

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-090, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-090, filed 3/9/88; Order 5, § 314-36-090, filed 8/7/69, effective 9/8/69; Rule 96, filed 6/13/63.]

     (a) For sale and delivery to ((the board)) a spirits distributor; or

     (b) For export from the state((;

     (c) For delivery to persons, firms or corporations authorized by Title 66 RCW to receive such liquor products; or

     (d) Liquor may be removed from an authorized private liquor storage warehouse to an authorized public storage warehouse)).

     (2) Any and all removals of ((liquor)) spirits must be made in full compliance with the Washington state liquor laws and the rules of the board.

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-100, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-100, filed 3/9/88. Statutory Authority: RCW 66.08.030 (1) and (2). 87-07-008 (Order 214, Resolution No. 223), § 314-36-100, filed 3/10/87; Order 5, § 314-36-100, filed 8/7/69, effective 9/8/69; Rule 97, filed 6/13/63.]

     (a) All ((liquor)) spirits received for storage; and

     (b) All removals and exportations.

     (2) Records shall ((preserve)) be preserved for three years, all bills of lading or certified copies thereof((, and all authorizations of the board for withdrawals of samples)).

[Statutory Authority: RCW 66.08.030, chapter 66.24 RCW. 10-20-085, § 314-36-130, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 66.08.030. 88-07-025 (Order 238, Resolution No. 247), § 314-36-130, filed 3/9/88; Rule 100, filed 6/13/63.]

     The following sections of the Washington Administrative Code are repealed:

WAC 314-36-010	Sales between importers.
WAC 314-36-020	Liquor importation -- General.

OTS-4745.1

REPEALER
     The following chapter of the Washington Administrative Code is repealed:

WAC 314-37-010	Liquor sales in Indian country -- Appointment of tribal liquor stores -- Qualifications.
WAC 314-37-020	Manufacturer's on-site liquor store appointment -- Qualifications.
WAC 314-37-030	Bank credit cards and debit cards.

OTS-4746.1

AMENDATORY SECTION(Amending Order 106, Resolution No. 115, filed 6/16/82)

WAC 314-38-010   ((Special permit to consume liquor on the premises of a business not licensed)) Serve employees and guests permit under Title 66 RCW.   (1) The special permit provided by RCW 66.20.010(4) to consume liquor on the premises of a business not licensed under Title 66 RCW shall only be issued to businesses at which the service and consumption of liquor is incidental to, and does not form a portion of, the service the business is engaged in producing or marketing. The permit shall not be used by the holder thereof for purposes of stimulating or increasing business from the general public.

     (2) Each permit shall be issued for a period of twelve months from the first day of the month in which it is issued. The fee for each permit issued shall be five hundred dollars.

     (3) The permit shall be issued for, and service and consumption of liquor will be limited to, specified hospitality rooms and/or dining rooms which shall be on the premises of the business applying for the permit. A separate permit is required for each business premises at which liquor is to be served or consumed. The general public shall not be permitted in the hospitality or dining room at any time during the service or consumption of liquor.

     (4) The permit will authorize the service and consumption of liquor, without charge, by employees and invited guests of the business holding the permit. No sale of liquor will be authorized in any manner, whether by scrip, donation, contribution, or otherwise. No charge of any kind may be made by the permittee to invited guests for admission to the hospitality or dining room, or for any meals or other services provided to them in the hospitality or dining room.

     (5) All liquor served or consumed under the permit shall be purchased from a Washington state licensed retailer ((or a Washington state liquor store or agency)) at full retail price.

     (6) The permit shall be issued in the name of the business applying for it, and that business shall not allow any other person, business, or organization to utilize the permit. The issuance of any permit by the board shall not be construed as granting a vested right in any of the privileges so conferred, and a misrepresentation of fact found to have been made by the applicant or permittee shall be deemed a lack of good faith and shall constitute good and sufficient cause for the disapproval of a permit application or for the revocation or suspension of any permit issued by the board.

[Statutory Authority: RCW 66.08.030 and 66.20.010. 82-13-068 (Order 106, Resolution No. 115), § 314-38-010, filed 6/16/82.]

     (a) Allow for the consumption of liquor products in private businesses; and

     (b) Not to compete with liquor licensed establishments.

     (2) All liquor served by holders of a ((Class 4)) serve employees and guests permit must be purchased at retail from the board or a retail liquor licensee.

     (3) Liquor may not be sold by holders of a ((Class 4)) serve employees and guests permit, but may be provided at no charge for consumption on the premises of the permit holder.

     (4) The holder of a ((Class 4)) serve employees and guests permit may serve liquor for no more than twenty-four hours during any weekly (168 hour) period.

     (5) While the ((Class 4)) serve employees and guests permit holder may advertise their business services, no liquor service shall be advertised.

[Statutory Authority: RCW 66.08.030. 93-20-031, § 314-38-050, filed 9/27/93, effective 10/28/93.]

OTS-4747.1

AMENDATORY SECTION(Amending WSR 01-15-049, filed 7/13/01, effective 8/13/01)

WAC 314-42-010   Liquor control board administrative director.   (1) The purpose of this rule is to ensure efficient and consistent administration of the liquor control board through the delegation of certain administrative functions to an administrative director. The delegation of administrative functions by the board, as provided for in this section, does not alter the board's statutory responsibility to administer Title 66 RCW.

     (2) The administrative director will be appointed by, and serve at the pleasure of, the board, and will perform his/her duties under the general control, management, and supervision of the board.

     (3) The following duties are delegated by the board to the administrative director:

     (a) Appointing authority as defined by WAC 356-05-040, 356-30-007, and 356-34-011 for all liquor control board employees, with the exception of the director and staff of the policy, legislative, and media relations division as described in subsection (4)(((g)))(e) and staff that report directly to the board members;

     (b) Authorize expenditures of funds from the board approved internal budget;

     (c) Purchase, lease, contract, or otherwise acquire any goods, services, and products within the board approved internal budget;

     (d) ((Approve liquor purchase orders authorized by the board (this authority may be further delegated);

     (e))) Approve uncontested licenses and permits (this authority may be further delegated);

     (((f))) (e) Assign duties, coordinate agency operations, and establish performance standards and timelines;

     (((g))) (f) Approve disbursements of excess funds from the liquor revolving fund; and

     (((h))) (g) Perform other duties of a routine administrative nature identified by the board.

     (4) The following duties will not be delegated and will remain functions of the board:

     (a) Final approval of agency-wide and division budgets as prepared by the administrative director;

     (b) Revocation or suspension of a license or permit;

     (c) ((Appeals of price posting actions;

     (d))) Appeals of administrative actions taken against liquor and tobacco licensees;

     (((e) Approval of product listings and delistings for state liquor stores and agencies;

     (f))) (d) Approval of contested liquor license and permit applications; and

     (((g))) (e) Direct oversight of the policy, legislative, and media relations division and staff that report directly to the board members, including:

     (i) Rule making actions,

     (ii) Approval of agency-request legislative proposals, and

     (iii) The employment, termination, and discipline of the director and staff of the policy, legislative, and media relations division and staff that report directly to the board members.

[Statutory Authority: RCW 66.08.030, 66.08.070(1), 66.08.130, 66.08.140, 66.08.170, 66.20.010, 66.24.010(2). 01-15-049, § 314-42-010, filed 7/13/01, effective 8/13/01; 00-06-016, § 314-42-010, filed 2/22/00, effective 3/24/00.]

OTS-4748.1

AMENDATORY SECTION(Amending WSR 11-24-099, filed 12/7/11, effective 1/7/12)

WAC 314-44-005   Agent's license required -- Eligible employers defined -- Certain classes limited -- Bona fide entity defined -- Prohibited practices.   (1) No person shall canvass for, solicit, receive or take orders for the purchase or sale of any liquor, or act as the agent for the purchase or sale of liquor, nor contact any licensees of the board in goodwill activities, unless such person is holder of an agent's license as provided in RCW 66.24.310, and this regulation.

     (2) An agent's license may be issued to the accredited representative of a person, firm, or corporation within the state of Washington holding any of the following licenses:

     (a) A beer certificate of approval ((issued pursuant to RCW 66.24.270 or 66.24.206,)) license;

     (b) A beer distributor's license((,));

     (c) A brewer's license((,));

     (d) A beer importer's license((, a domestic winery));

     (e) A wine certificate of approval license;

     (f) A wine distributor license((, a wine importer's));

     (g) A domestic winery license((, or));

     (h) A wine ((distributor's)) importer's license ((within the state of Washington, or));

     (i) A spirits certificate of approval license;

     (j) A spirits distributor license;

     (k) A distiller or craft distiller license; or

     (l) A spirits importer license.

     (3) An agent's license may be issued to the accredited representative of a distiller, manufacturer, importer, or distributor of spirituous liquor, or foreign produced beer or wine. A person, firm, or corporation so qualified, is herein defined to be an eligible employer. Such employer shall apply to the board for such an agent's license for his accredited representatives on application forms prescribed and furnished by the board. This subsection shall not apply to drivers who deliver beer or wine or to domestic wineries or their employees. Employees of a domestic winery must have identification on them that indicates they work for the winery. Identification may be in the form of a winery's business card, employee badge, or similar identification.

     (((3))) (4) Any person acting as an independent contractor for a winery must have an agent's license. An independent contractor is defined as an independent business person who runs his or her own business that provides services to another individual or business. The independent contractor is a separate business entity. The earnings of a person who is working as an independent contractor are subject to self-employment tax.

     (((4))) (5) Every firm which applies for an agent's license under the provisions of this section shall furnish the board with satisfactory proof that such firm is in fact a bona fide business entity.

     (((5))) (6) Only the licensed agent of a distiller, manufacturer, importer, or distributor of spirituous liquor may contact retail licensees in goodwill activities when such contacts pertain to spirituous liquor products.

     (((6) No distiller, manufacturer, importer, distributor of liquor, or agent thereof, shall solicit either in person, by mail or otherwise, any liquor vendor or employee of the board, except the purchasing agent thereof, for the purpose or with the intent of furthering the sale of a particular brand or brands of merchandise as against another brand or brands of merchandise.

     (7) No distiller, manufacturer, importer, distributor of liquor, or agent thereof, shall visit any state liquor store or agency for the purpose of exerting influence on employees for sales promotion or to secure information regarding inventory or any other matter relating to sales. They may deliver, or have delivered, and assemble where required, consumer offers and display material that have been approved by the board or its designee. Violation of this section will result in a penalty against all company items, which in appropriate cases could mean a partial or total delisting of those items.

     (8) No distiller, manufacturer, importer, or distributor of liquor, or agent thereof, shall give or offer to any employee of the board any entertainment, gratuity or other consideration for the purpose of inducing or promoting the sale of merchandise.

     (9))) (7) No distiller, manufacturer, importer, or distributor, or agent thereof, shall allow, pay or rebate, directly or indirectly, any cash or merchandise to any retail licensee to induce or promote the sale of liquor, including the payment of tips to such licensees or their employees and the purchasing of drinks "for the house." Such persons, firms and licensees must operate in conformity with WAC 314-12-140, RCW 66.28.010, 66.28.040, and other applicable laws and rules.

     (((10) Upon the infraction of any law or regulation by any distiller, manufacturer, importer, distributor, or agent, the board may, in addition to imposing other penalties as prescribed by law, remove such firm's products from the sales list of the board, and/or prohibit the sale of any brand or brands of beer or wine involved as provided in RCW 66.28.030.

     (11))) (8) Upon the termination of the employment of a licensed agent, his employer shall immediately notify the board and with such notice return to the board the agent's license issued to such person.

[Statutory Authority: RCW 66.24.310 and 66.08.030. 11-24-099, § 314-44-005, filed 12/7/11, effective 1/7/12. 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, § 314-44-005, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030. 89-01-004 (Order 271, Resolution No. 280), § 314-44-005, filed 12/8/88. Statutory Authority: RCW 66.08.030 and 66.98.070. 82-04-029 (Order 93, Resolution No. 102), § 314-44-005, filed 1/27/82; Order 46, § 314-44-005, Rule 111, filed 6/9/76. Formerly WAC 314-44-010 and 314-44-020.]

OTS-4749.1

AMENDATORY SECTION(Amending WSR 10-20-086, filed 9/30/10, effective 10/31/10)

WAC 314-45-010   Convention defined -- Hospitality rooms, display booths, receptions and similar activities -- Permits required -- Fees -- Procedures.   Activities pursuant to RCW 66.20.010 (8), (9), a manufacturer, importer, distributor, or agent thereof, may serve or donate liquor without charge to delegates and guests at a bona fide convention of a trade association composed of licensees of the board, subject to conditions set forth in this regulation.

     (1) For the purposes of this section a "convention" is defined as a bona fide session or assembly of the general membership of a trade association composed of licensees of the board.

     (2) Such manufacturer, importer, distributor, or agent thereof, must hold a special permit issued by the board to engage in such an activity at such convention. The fee for each such special permit shall be $25.00. A permit is required for each booth or room a manufacturer, importer, distributor, or agent thereof is serving or donating liquor. Application for such permit shall be submitted on a form prescribed by the board. The statutory permits applicable to such activities are:

     (a) A special permit provided for in RCW 66.20.010(8) which authorizes the holder thereof to serve liquor without charge to delegates and guests in a hospitality room or from a booth in a board-approved suppliers' display room at such convention.

     (b) A special permit provided for in RCW 66.20.010(9) which authorizes the holder thereof to donate liquor for a reception, breakfast, luncheon, or dinner for delegates and guests at such convention.

     (3) Any liquor served or donated as provided herein is authorized only for consumption within a specific area designated on an application for permit and approved by the board.

     (4) A special permit holder who serves or donates any beer or wine on which state taxes have not been paid, must file a report of the quantity so served or donated and remit the amount of the taxes to the board, in conformity with RCW 66.20.010 (8), (9).

     (5) Any spirituous liquor served or donated shall be purchased from ((the board or a spirit, beer and wine restaurant licensee)) a licensed spirits retailer.

     (6) Any licensee promoting a trade show event shall submit a list of all suppliers attending the event.

[Statutory Authority: RCW 66.08.030, 66.28.010, 66.20.010. 10-20-086, § 314-45-010, filed 9/30/10, effective 10/31/10. 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, § 314-45-010, filed 9/2/98, effective 10/3/98. Statutory Authority: RCW 66.08.030 and 66.98.070. 85-19-031 (Order 165, Resolution No. 174), § 314-45-010, filed 9/12/85; Order 46, § 314-45-010, Rule 114, filed 6/9/76.]

OTS-4750.1

AMENDATORY SECTION(Amending WSR 09-14-035, filed 6/24/09, effective 7/25/09)

WAC 314-64-08001   Procedures for providing spirit samples to authorized retail licensees for the purpose of negotiating a sale.   A distiller, craft distiller, spirits distributor, spirits certificate of approval holder, spirits importer, or their agent may, for the purpose of product promotion, provide without charge single samples to retail licensees authorized to sell spirits and their employees.

     (1) Samples are limited to 750 ml and no more than one sample of each product may be provided to any one licensed business.

     (2) ((All spirit samples must be purchased at retail from the board from existing stocks or by special order.

     (3))) Only products not purchased by the retail licensee within the last twelve months from the distiller or their agent or existing products with a change in alcohol proof or formula may be sampled. If there is a complete change of ownership of the retail licensee to another entity, the former retail licensee's purchase of the product is not deemed a purchase made by the successor retail licensee for purposes of this provision.

     (((4))) (3) Both the retailer and distiller, craft distiller, spirits certificate of approval holder, spirits distributor, and spirits importer must retain records of sampling for a period of ((two)) three years. The records shall include the brand and type of sample and the date of sampling.

     (((5))) (4) If the distiller, craft distiller, spirits certificate of approval holder, spirits distributor, and spirits importer keeps records within an automated data processing (ADP) system, the system must include a method for producing legible records that will provide the required information. The ADP system is acceptable if it complies with the following guidelines:

     (a) Provides an audit trail so that details (invoices) underlying the summary account 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.

     (((6))) (5) The provisions contained in subsection (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, 66.28.045. 09-14-035, § 314-64-08001, filed 6/24/09, effective 7/25/09. Statutory Authority: RCW 66.08.030. 98-08-041, § 314-64-08001, filed 3/25/98, effective 4/25/98.]

     The following sections of the Washington Administrative Code are repealed:

WAC 314-64-010	Purpose.
WAC 314-64-020	Definitions.
WAC 314-64-040	Procedures for board samples.
WAC 314-64-050	Accounting for board samples.

OTS-4751.1

REPEALER
     The following chapter of the Washington Administrative Code is repealed:

WAC 314-76-015	What is the purpose of this chapter?
WAC 314-76-020	Who may special order liquor from the board?
WAC 314-76-025	What liquor products may be special ordered?
WAC 314-76-030	Are there special requirements for a special order?
WAC 314-76-035	How does an individual place a special order?