[Filed November 26, 2019, 12:14 p.m.]

Preproposal statement of inquiry was filed as WSR 18-17-042.

Title of Rule and Other Identifying Information: WAC 314-02-025 What are the floor space requirements to obtain and maintain a spirits, beer, and wine restaurant license or a beer and wine restaurant license?, 314-02-033 Do spirits, beer, and wine restaurants that exclude minors from the premises have to put demarcations around their dedicated dining area(s)?, and 314-03-200 Outside or extended alcohol service.

The above sections were revised to allow options other than a forty-two-inch barrier to designate areas classified as off-limits to minors in beer/wine and spirits/beer/wine restaurants. Revisions also allow licensees to reclassify areas of restaurants as open to minors for regularly scheduled or special events with prior board approval. Requirements for "minor prohibited" signs were updated, and additional technical and clarifying changes were made.

Hearing Location(s): On January 8, 2020, at 10:00 a.m., at 1025 Union Avenue, Olympia, WA 98504.

Date of Intended Adoption: On or after January 22, 2019 [2020].

Submit Written Comments to: Janette Benham, P.O. Box 43080, Olympia, WA 98504, email rules@lcb.wa.gov, fax 360-664-9689, by January 8, 2020.

Assistance for Persons with Disabilities: Contact Claris Nnanabu, Americans with Disabilities Act coordinator, human resources, phone 360-664-1642, fax 360-664-9689, TTY 711 or 1-800-833-6388, email Claris.Nnanabu@lcb.wa.gov, by December 30, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules revisions outline several options for designating areas classified as off-limits to minors, update signage requirements, and make additional technical and clarifying changes. Rules revisions will help ensure applicants and licensees operate under applicable statutory provisions and have clear guidelines in place.

Reasons Supporting Proposal: The proposed rules allow beer/wine and spirits/beer/wine licensees to have several alternatives other than a forty-two-inch barrier to designate areas off-limits to minors. The rules revisions will allow licensees to have variations in floor plans, while ensuring areas off-limits to minors and well-defined and have required signage posted.

Statutory Authority for Adoption: RCW 66.08.030.

Statute Being Implemented: RCW 66.44.310.

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

Name of Proponent: Washington state liquor and cannabis board, governmental.

Name of Agency Personnel Responsible for Drafting: Janette Benham, Rules Coordinator, 1025 Union Avenue, Olympia, WA, 360-664-1760; Implementation: Becky Smith, Licensing Director, 1025 Union Avenue, Olympia, WA, 360-664-1615; and Enforcement: Justin Nordhorn, Enforcement Chief, 1025 Union Avenue, Olympia, WA, 360-664-1726.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required under RCW 34.05.328(5) because the rules allow additional, less restrictive options and clarify language without changing the effect of the rule. In addition, the rules relate to process requirements for applying for a license.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; rule content is explicitly and specifically dictated by statute; and rules adopt, amend, or repeal a procedure, practice, or requirement relating to agency hearings; or a filing or related process requirement for applying to an agency for a license or permit.

Is exempt under RCW 19.85.025(3). RCW 66.44.310 directs the Washington state liquor and cannabis board to classify licensed premises or portions of licensed premises as off-limits to persons under the age of twenty-one years. Additional changes correct and clarify language and relate to requirements for applying for a license.

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed rules do not create additional compliance costs, or administrative and regulatory burden for licensees. The rules allow additional, less restrictive options and clarify language without changing the effect of the rules. The less restrictive options are anticipated to result in compliance cost reductions for new licensees, and reduced administrative burden for new and already-established businesses.

AMENDATORY SECTION(Amending WSR 17-12-030, filed 5/31/17, effective 7/1/17)

WAC 314-02-025What are the floor space requirements to obtain and maintain a spirits, beer, and wine restaurant license or a beer and wine restaurant license?

(1) The liquor and cannabis board has the responsibility to classify what licensed premises or what portions of the licensed premises are off-limits to minors((. ())per RCW 66.44.310(2).(())) Minors may not purchase, possess, or consume liquor, and may not enter any areas that are classified as off-limits to minors((. ())per RCW 66.44.290 and 66.44.310.(())) The purpose of this rule is to clarify the ways in which licensees can prevent minors from consuming alcohol or entering ((restricted)) areas classified as off-limits to minors.

(2) Dedicated dining areas - If a spirits, beer, and wine restaurant licensee or a beer and wine restaurant licensee that allows minors chooses to have live music, Karaoke, patron dancing, live entertainment, or contests involving physical participation by patrons in the dedicated dining area after 11:00 p.m., the licensee must either:

(a) Request board approval to reclassify the dining area to a lounge for the period of time that live entertainment is conducted, thus restricting minors during that time; or

(b) Notify the ((board's licensing and regulation division))board in writing at least forty-eight hours in advance that the sale, service, and consumption of liquor will end in the dedicated dining area after 11:00 p.m.

Requests or notifications may cover one event or a series of recurring events over a period of time.

(3) ((Barriers - Licensees must place barriers around areas that are classified as off-limits to minors and around game rooms.

(a) The barriers))A licensed premises must have a clear demarcation between dedicated dining areas and areas that are off-limits to minors.

(a) Demarcation means a dividing line that must clearly separate ((restricted areas, and must be at least forty-two inches high.

(b) The barriers must be permanently affixed (folding or retractable doors or other barriers that are permanently affixed are acceptable). A portable or moveable rope and stanchion is not acceptable. Those licensees that have been approved by the board for moveable barriers prior to the effective date of this rule may keep their moveable barriers until the licensee requests alterations to the premises or the premises change ownership.

(d) Entrances to restricted areas may not be wider than ten feet. If a licensee has more than one entrance along one wall, the total entrance areas may not exceed ten feet.

(e)))areas classified as off-limits to minors from dedicated dining areas.

(b) Demarcation options available to applicants and licensees, subject to approval by the board, include:

(i) Visibly different and contrasting flooring;

(ii) Steps or ramps up or down;

(iii) Walls, half-walls, or forty-two inch barriers, where entrances to the restricted areas are not more than ten feet wide;

(iv) Permanently affixed stanchions, pillars, or posts at least six inches wide and placed no more than ten feet apart;

(v) Stationary planters at least six inches wide and placed no more than ten feet apart; and

(vi) Permanently affixed floor lighting or beacons placed no more than ten feet apart.

(d) Demarcation does not include tape, paint, or stickers on floors, walls, or ceilings.

(e) Once the floor plan is approved by the board the demarcation cannot be moved or changed without prior board approval.

(f) "Minor prohibited" signs, as required by WAC 314-11-060(1), must be posted ((at each entrance to restricted areas.

(4)))and clearly visible to patrons who are:

(i) Approaching the area(s) classified as off-limits to minors; and

(ii) Inside the area(s) classified as off-limits to minors.

(4) A spirits, beer, and wine restaurant licensee or a beer and wine restaurant licensee may request the board reclassify their off-limits area(s) as open to minors for regularly scheduled or special events. Reclassifying an off-limits area is considered an alteration to a licensed premises under WAC 314-03-300 and must be approved by the board prior to the event.

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

(((5)))(6)Floor plans - When applying for a license, the applicant must provide to the ((board's licensing and regulation division two copies of))board a detailed drawing of the entire premises. The drawing must:

(a) Be drawn ((one foot to one-quarter-inch))to scale;

(b) Have all ((rooms))areas labeled according to their use; e.g., dining ((room)), lounge, ((game room))gaming, kitchen, etc.; and

(6)))demarcations that separate dedicated dining areas from areas off-limits to minors labeled and described in detail.

(7)Convention centers - To qualify ((for))as a convention center ((there must be))a premises must have two or more rooms that provide space and accommodations for private events only. ((Licensees holding a))Convention center licensees may only sell alcohol for private events at the licensed premises.

AMENDATORY SECTION(Amending WSR 11-01-133, filed 12/21/10, effective 1/21/11)

WAC 314-02-033Do spirits, beer, and wine restaurants that exclude minors from the premises have to put ((barriers))demarcations around their dedicated dining area(s)?

Spirits, beer, and wine restaurant licensees who exclude minors from the entire premises at all times are only required to place ((the barriers))demarcations described in WAC 314-02-025(((2))) around dedicated dining areas for the purpose of paying the lower annual license fee (fifty percent to ninety-nine percent dedicated dining area). Restaurants that do not allow minors at any time and do not wish to have ((barriers))demarcations around their dining area(s) must pay the higher annual license fee (less than fifty percent dedicated dining area). (See WAC 314-02-020 for an explanation of fees.)

AMENDATORY SECTION(Amending WSR 17-12-030, filed 5/31/17, effective 7/1/17)

WAC 314-03-200Outside or extended alcohol service.

A licensee must request approval from the board's licensing division for ongoing outside or extended alcohol service. The following conditions must be met:

(1) The area must be enclosed with a permanent or movable barrier a minimum of forty-two inches in height((; and)).

(2) There must be an interior access to the licensed premises. If the interior access is from a minor restricted area of the premises, minors are prohibited in the outside or extended alcohol service area.

(3) There must be an attendant, wait staff, or server dedicated to the outside service area when patrons are present.

(4) Must have leasehold rights to the area and have and be connected to the licensed premises.

(5) Openings into and out of the outside area cannot exceed ten feet. If there is more than one opening along one side, the total combined opening may not exceed ten feet.

(6) Exception. For sidewalk cafe outside service, the board allows local regulations that, in conjunction with a local sidewalk cafe permit, requires a forty-two inch barrier or permanent demarcation of the designated alcohol service areas for continued enforcement of the boundaries.

(a) The permanent demarcation must be at all boundaries of the outside service area;

(b) The permanent demarcation must be at least six inches in diameter;

(d) There must be an attendant, wait staff, or server dedicated to the outside service area when patrons are present;

(e) This exception only applies to restaurant liquor licenses with sidewalk cafe service areas contiguous to the liquor licensed premises. "Contiguous" means touching along a boundary or at a point;

(f) This exception does not apply to beer gardens, standing room only venues, and permitted special events. Board approval is still required with respect to sidewalk cafe barrier requirements.

(7) Limited exception. The board may grant limited exceptions to the required forty-two inch high barrier for outside alcohol service areas.

(a) The licensee must have exclusive leasehold rights to the outside service area.

(b) There must be permanent demarcations at all boundaries of the outside service area for continued enforcement of the boundaries.