SB 5145 — Equalizing differences in the distillery and winery industries by authorizing certain sales of spirits carrying a private label exclusive to a restaurant or private club that is a licensed spirits retailer.

S-1373.1SUBSTITUTES-0629.1SENATE SENATE BILL 5145State of Washington65th Legislature2017 Regular SessionBy Senate Commerce, Labor & Sports (originally sponsored by Senators Liias and Walsh)READWalshRead FIRSTfirst TIMEtime 02/17/17.AN01/13/17. ACT Relating to equalizing differences between the liquor industries regarding certain sales of alcohol carrying a private label;

Referred to Committee on Commerce, Labor & Sports.AN ACT Relating to equalizing differences in the distillery and winery industries by authorizing certain sales of spirits carrying a private label exclusive to a restaurant or private club that is a licensed spirits retailer;

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, craft distilleries, distilleries, certificate of approval holders, ((and))and or 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, 66.24.145, 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, and spirits private label items may be produced, distributed, and sold by any person otherwise properly licensed to produce, distribute, or sell beer, wine, and spirits.Sec. 2.  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 66.24.450,66.24.450.Sec. 3.  RCW or a spirits retail licensee holding a license under RCW 66.24.630.Sec. 3.  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) AThe only spirits carrying a private label that the holder of a spirits retail licenseelicense may sell spiritsin carryingaccordance theirwith ownRCW private66.28.310(6) labelare orthose spirits in original containers 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.(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.