HB 2000 — Equalizing differences in the distillery and winery industries by authorizing certain private label spirits.

H-1788.1SUBSTITUTEH-1566.1HOUSE HOUSE BILL 2000State of Washington65th Legislature2017 Regular SessionBy House Commerce & Gaming (originally sponsored by Representative Peterson)READPetersonRead FIRSTfirst TIMEtime 02/17/17.AN02/07/17. ACT Relating to equalizing differences in the distillery and winery industries by authorizing certain private label spirits;

andReferred amendingto RCWCommittee 66.28.310,on 66.24.140,Commerce 66.24.145,& 66.24.630,Gaming.AN andACT 66.24.150.BERelating IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 66.28.310 and 2015 c 94 s 1 are each amended to readequalizing asdifferences follows:(1)(a) Nothing in RCWthe 66.28.305distillery prohibitsand anwinery industryindustries memberby fromauthorizing providingcertain retailersprivate brandedlabel promotionalspirits; items which are of nominal value, singly or in the aggregate.

and amending RCW 66.28.310, 66.24.140, 66.24.145, and 66.24.630.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 66.28.310 and 2015 c 94 s 1 are each amended to read as follows:(1)(a) Nothing in RCW 66.28.305 prohibits an industry member from providing retailers branded promotional items which are of nominal value, singly or in the aggregate.

Except as provided in RCW 66.28.150, the cost of sampling may not be borne, directly or indirectly, by any domestic winery or certificate of approval holder or any distributor.(6) Nothing in ((this section)) RCW 66.28.305 prohibits wineries, breweries, microbreweries, distillers, craft distilleries, manufacturer's licensees, certificate of approval holders, and retail licensees from identifying the producers on private labels ((authorizedauthorized under RCW 66.24.400, 66.24.425, 66.24.450, 66.24.360, ((and)) 66.24.371, 66.24.140, 66.24.145, and 66.24.371)).(((6)))66.24.630.(((6))) (7) Nothing in RCW 66.28.305 prohibits an industry member from entering into an arrangement with any holder of a sports entertainment facility license or an affiliated business for brand advertising at the licensed facility or promoting events held at the sports entertainment facility as authorized under RCW 66.24.570.(((7))) (8) Nothing in RCW 66.28.305 prohibits the performance of personal services offered from time to time by a domestic brewery, microbrewery, or beer certificate of approval holder to grocery store licensees with a tasting endorsement when the personal services are (a) conducted at a licensed premises in conjunction with a tasting event, and (b) intended to inform, educate, or enhance customers' knowledge or experience of the manufacturer's products.

501(c)(3) of the internal revenue code as it existed on July 24, 2015, for use consistent with the purpose or purposes entitling it to such exemption.(12)exemption.Sec. 2.  RCW Beer, wine, or spirits private label items may be produced, distributed, and sold by any person otherwise properly licensed to produce, distribute, or sell beer, wine, or spirits.Sec. 2.  RCW 66.24.140 and 2015 c 194 s 1 are each amended to read as follows:(1) There is a license to distillers, including blending, rectifying, and bottling;

and(d) ProduceIn accordance with RCW 66.28.310(6), produce and sell spirits carrying a private label exclusive to a restaurant or private club holding a license under RCW 66.24.400, 66.24.425, or 66.24.450, or a spirits retail licensee holding a license under RCW 66.24.630.Sec. 3.  RCW 66.24.145 and 2015 c 194 s 2 are each amended to read as follows:(1)(a) Any craft distillery may sell spirits of its own production for consumption off the premises.(b) A craft distillery selling spirits under this subsection must comply with the applicable laws and rules relating to retailers.(2) Any craft distillery may contract distilled spirits for, and sell contract distilled spirits to, holders of distillers' or manufacturers' licenses, including licenses issued under RCW 66.24.520, or for export.(3) Any craft distillery licensed under this section may provide, free or for a charge, one-half ounce or less samples of spirits of its own production to persons on the premises of the distillery.

An authorization granted under this subsection (4)(d) may be withdrawn by the board for any violation of this title or any rules adopted under this title.(e) For the purposes of this subsection (4), "qualifying farmers market" has the same meaning as defined in RCW 66.24.170.(5) The board must adopt rules to implement the alcohol server permit requirement and may adopt additional rules to implement this section.(6) Distilling is an agricultural practice.(7) AIn accordance with RCW 66.28.310(6), a craft distillery may produce and sell spirits carrying a private label exclusive to a restaurant or private club holding a license under RCW 66.24.400, 66.24.425, or 66.24.450, or a spirits retail licensee holding a license under RCW 66.24.630.Sec. 4.  RCW 66.24.630 and 2015 c 186 s 1 are each amended to read as follows:(1)(a) There is a spirits retail license to:

and export spirits.(b) AIn accordance with RCW 66.28.310(6), a spirits retail licensee may sell, in original containers, spirits carrying the spirits retail licensee's own private label or a private label exclusive to a restaurant or private club holding a license under RCW 66.24.400, 66.24.425, or 66.24.450.(2) For the purposes of this title, a spirits retail license is a retail license, and a sale by a spirits retailer is a retail sale only if not for resale.

and(v) Keep records verifying compliance with the program's requirements.Sec. 5.  RCWrequirements.--- 66.24.150END and--- 1997 c 321 s 2 are each amended to read as follows:(1) There shall be a license to manufacturers of liquor, including all kinds of manufacturers except those licensed as distillers, domestic brewers, microbreweries, wineries, and domestic wineries, authorizing such licensees to manufacture, import, sell, and export liquor from the state;

fee five hundred dollars per annum.(2) A licensee manufacturing spirits pursuant to this section may produce and sell spirits carrying a private label exclusive to a restaurant or private club holding a license under RCW 66.24.400, 66.24.425, or 66.24.450, or a spirits retail licensee holding a license under RCW 66.24.630.--- END ---