WSR 16-16-055
PROPOSED RULES
LIQUOR AND CANNABIS
BOARD
[Filed July 27, 2016, 11:56 a.m.]
Supplemental Notice to WSR 16-10-111.
Preproposal statement of inquiry was filed as WSR 15-13-056.
Title of Rule and Other Identifying Information: WAC 314-29-010 What options does a licensee or permit holder have once he/she receives a notice of an administrative violation?, 314-29-020 Group 1 violations against public safety, and 314-29-038 Group 5 public safety violations for sports entertainment facility licenses.
Hearing Location(s): Washington State Liquor Control [and Cannabis] Board (WSLCB), Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on September 7, 2016, at 10:00 a.m.
Date of Intended Adoption: September 21, 2016.
Submit Written Comments to: Karen McCall, P.O. Box 43098, Olympia, WA 98504, e-mail rules@lcb.wa.gov, fax (360) 664-1631, by September 7, 2016.
Assistance for Persons with Disabilities: Contact Karen McCall by September 7, 2016, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule making is part of the board's ongoing chapter review of all of our WAC chapters. Also included in this rule making is a new section to address sports entertainment facility licenses.
Reasons Supporting Proposal: See Purpose above.
Statutory Authority for Adoption: RCW 66.08.030.
Statute Being Implemented: Chapter 66.44 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: WSLCB, governmental.
Name of Agency Personnel Responsible for Drafting: Karen McCall, Rules Coordinator, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1631; Implementation: Becky Smith, Licensing Director, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1615; and Enforcement: Justin Nordhorn, Enforcement Chief, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not requirement.
A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis was not required.
July 27, 2016
Jane Rushford
Chairman
AMENDATORY SECTION (Amending WSR 09-13-037, filed 6/10/09, effective 7/11/09)
WAC 314-29-010 What options does a licensee or permit holder have once he/she receives a notice of an administrative violation?
(1) A licensee or a mandatory alcohol server training permit holder has twenty days from receipt of the notice to:
(a) Accept the recommended penalty; or
(b) Request a settlement conference in writing; or
(c) Request an administrative hearing in writing.
A response must be submitted on a form provided by the agency.
(2) What happens if a licensee or mandatory alcohol server training permit holder does not respond to the administrative violation notice within twenty days?
(a) If a licensee or permit holder does not respond to the administrative violation notice within twenty days, the recommended suspension penalty will go into effect.
(b) If the penalty does not include a suspension, the licensee must pay a twenty-five percent late fee in addition to the recommended penalty. The recommended penalty plus the late fee must be received within thirty days of the violation notice issue date.
(c) When a licensee fails to submit payment of monetary fine proceedings, provisions to collect shall take effect immediately or other actions such as revocation, will be instituted as deemed appropriate by the WSLCB.
(d) An attempt to advise the debtor of the existence of the debt, and twenty-five percent late fee per (b) of this subsection, will be made notifying that the debt may be assigned to a collection agency for collection if the debt is not paid, and at least thirty days have elapsed from the time notice was attempted.
(e) Licensees failing to respond to an administrative violation notice or having outstanding fines shall not be eligible to renew their liquor license.
(f) Failure to address monetary penalties for two or more administrative violations notices in a two-year period will result in license cancellation.
(3) What are the procedures when a licensee or mandatory alcohol server training permit holder requests a settlement conference?
(a) If the licensee or permit holder requests a settlement conference, the hearing examiner or captain will contact the licensee or permit holder to discuss the violation.
(b) Both the licensee or permit holder and the hearing examiner or captain will discuss the circumstances surrounding the charge, the recommended penalty, and any aggravating or mitigating factors.
(c) If a compromise is reached, the hearing examiner or captain will prepare a compromise settlement agreement. The hearing examiner or captain will forward the compromise settlement agreement, authorized by both parties, to the board for approval.
(i) If the board approves the compromise, a copy of the signed settlement agreement will be sent to the licensee or permit holder, and will become part of the licensing history.
(ii) If the board does not approve the compromise, the licensee or permit holder will be notified of the decision. The licensee or permit holder will be given the option to renegotiate with the hearings examiner or captain, of accepting the originally recommended penalty, or of requesting an administrative hearing on the charges.
(d) If the licensee or permit holder and the hearing examiner or captain cannot reach agreement on a settlement proposal, the licensee may accept the originally recommended penalty, or the hearing examiner or captain will forward a request for an administrative hearing to the board's hearings coordinator.
AMENDATORY SECTION (Amending WSR 09-21-050, filed 10/14/09, effective 11/14/09)
WAC 314-29-020 Group 1 violations against public safety.
(1) Group 1 violations are considered the most serious because they present a direct threat to public safety. Violations beyond the first violation do not have a monetary option upon issuance of a violation notice. The liquor control board may offer a monetary option in lieu of suspension days based on mitigating circumstances as outlined in WAC 314-29-015(4).
(2) Group 1 violations will be counted sequentially rather than independently by group. For example, if a licensee received a violation for over service on one day and a violation for sale to a minor a week later, the sale to a minor would be treated as a second offense since both violations are in the same violation group.
Violation Type
1st Violation
2nd Violation in a
two-year window
3rd Violation in a
two-year window
4th Violation in a two-year window
Violations involving minors:
Sale or service to minor: Sale or service of alcohol to a person under 21 years of age.
Minor frequenting a tavern, lounge, or other restricted area.
WAC 314-11-020
WAC 314-16-150
5 day suspension or $500 monetary option
7 day suspension
30 day suspension
Cancellation of license
Sale or service to apparently intoxicated person: Sale or service of alcohol to, or permitting consumption or possession by, an apparently intoxicated person.
WAC 314-16-150
5 day suspension or $500 monetary option
7 day suspension
30 day suspension
Cancellation of license
Conduct violations:
Disorderly conduct by licensee or employee, or permitting on premises.
Licensee and/or employee intoxicated on the licensed premises and/or drinking on duty.
Criminal conduct: Permitting or engaging in criminal conduct.
WAC 314-11-015
5 day suspension or $500 monetary option
7 day suspension
30 day suspension
Cancellation of license
Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.
5 day suspension or $500 monetary option
7 day suspension
30 day suspension
Cancellation of license
Refusal to allow an inspection and/or obstructing a law enforcement officer from performing their official duties.
WAC 314-11-090
5 day suspension or $500 monetary option
7 day suspension
30 day suspension
Cancellation of license
Condition of suspension violation: Failure to follow any suspension restriction while liquor license is suspended.
WAC 314-29-040
Original penalty plus 10 day suspension with no monetary option
Cancellation of license
 
 
NEW SECTION
WAC 314-29-038 Group 5 public safety violations for sports entertainment facility licenses.
Sports entertainment facility licenses are unique and different from other on-premises licenses since they are not open on a daily basis, but rather for specific events. Public safety violations are considered the most serious because they present a direct threat to public safety. All other violations and penalties are the same for sports entertainment facility licensees as other liquor licenses.
(1) General public safety violation penalties.
Violation Type
1st Violation
2nd Violation in a
two-year window
3rd Violation in a
two-year window
4th and Subsequent violation in a two-year window
Violations involving minors:
Sale or service to minors outside of WAC 314-29-038(c): Sale or service of alcohol to a person under 21 years of age.
Minor frequenting a restricted area.
WAC 314-11-020
WAC 314-16-150
Monetary penalty will be based on ticket sales to the event, and calculated at $0.10 per ticket sold, with a mandatory minimum of $2,500 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $0.50 per ticket sold, with a mandatory minimum of $7,000 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $1.25 per ticket sold, with a mandatory minimum of $45,000 fine
Penalty to be determined by the board, including possible cancellation of license
Sale or service to an apparently intoxicated person: Sale or service of alcohol to, or permitting consumption or possession by, an apparently intoxicated person.
WAC 314-16-150
Monetary penalty will be based on ticket sales to the event, and calculated at $0.10 per ticket sold, with a mandatory minimum of $2,500 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $0.50 per ticket sold, with a mandatory minimum of $7,000 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $1.25 per ticket sold, with a mandatory minimum of $45,000 fine
Penalty to be determined by the board, including possible cancellation of license
Conduct violations:
Disorderly conduct by licensee or employee, or permitting on premises.
Licensee and/or employee intoxicated on the licensed premises and/or drinking on duty.
Criminal conduct: Permitting or engaging in criminal conduct.
WAC 314-11-015
Monetary penalty will be based on ticket sales to the event, and calculated at $0.10 per ticket sold, with a mandatory minimum of $2,500 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $0.50 per ticket sold, with a mandatory minimum of $7,000 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $1.25 per ticket sold, with a mandatory minimum of $45,000 fine
Penalty to be determined by the board, including possible cancellation of license
Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.
Monetary penalty will be based on ticket sales to the event, and calculated at $0.10 per ticket sold, with a mandatory minimum of $2,500 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $0.50 per ticket sold, with a mandatory minimum of $7,000 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $1.25 per ticket sold, with a mandatory minimum of $45,000 fine
Penalty to be determined by the board, including possible cancellation of license
Refusal to allow an inspection and/or obstructing a law enforcement officer from performing their official duties.
WAC 314-11-090
Monetary penalty will be based on ticket sales to the event, and calculated at $0.10 per ticket sold, with a mandatory minimum of $2,500 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $0.50 per ticket sold, with a mandatory minimum of $7,000 fine
Monetary penalty will be based on ticket sales to the event, and calculated at $1.25 per ticket sold, with a mandatory minimum of $45,000 fine
Penalty to be determined by the board, including possible cancellation of license
(2) If documented ticket sales for an event are unavailable, in order to assess penalties set forth in this section, the facility maximum occupancy will be used for the penalty assessment. 
(3) WSLCB youth access compliance checks, in accordance with chapter 314-31 WAC.
License Class
Compliance Threshold
1st
Violation
2nd
Violation
3rd
Violation
4th
Violation
Sports and entertainment facility
Events: 1 to 20 points of sale (1st incident/sale to minor to be a violation/compliance failure)
$1000 x I*
$10,000 x I*
$25,000 x I*
Penalty to be determined by the board, including possible cancellation of license
Sports and entertainment facility
Events: 21 to 45  points of sale (2nd incident/sale to minor to be a violation/compliance failure)
$1000 x I*
$10,000 x I*
$25,000 x I*
Penalty to be determined by the board, including possible cancellation of license
Sports and entertainment facility
Events: 45 or more points of sale (3rd incident/sale to minor to be a violation/compliance failure)
$1000 x I*
$10,000 x I*
$25,000 x I*
Penalty to be determined by the board, including possible cancellation of license
* "I" signifies the total cumulative incidents of sales to underage person during an alcohol compliance check.
A point of sale is defined as each different concession stand, or service area (such as a lounge), not each individual cash register.