SB 5161 — Modifying theater license provisions.

S-1047.1SUBSTITUTES-0139.1SENATE SENATE BILL 5161State of Washington65th Legislature2017 Regular SessionBy Senate Commerce, Labor & Sports (originally sponsored by Senators Keiser, Wilson, and Takko)READTakkoRead FIRSTfirst TIMEtime 01/26/17.AN01/16/17. ACT Relating to theater licenses;

andReferred amending RCW 66.24.655 and 66.24.650.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 66.24.655 and 2013 c 237 s 1 are each amended to readCommittee ason follows:(1)Commerce, ThereLabor is& aSports.AN theaterACT licenseRelating to sell spirits, beer, including strong beer, or wine, or all, at retail, for consumption on theater premises.licenses;

and amending RCW 66.24.655.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 66.24.655 and 2013 c 237 s 1 are each amended to read as follows:(1) There is a theater license to sell spirits, beer, including strong beer, or wine, or all, at retail, for consumption on theater premises.

and the amount allocated or used for spirits, beer, or wine advertising by the licensee, affiliated business, manufacturer, importer, or distributor under the arrangements.(6) The maximum penalties prescribed by the board in WAC 314-29-020 relating to fines and suspensions are double for violations involving minors or the failure to follow the alcohol control plan with respect to theaters licensed under this section.Sec. 2.  RCWsection.--- 66.24.650END and--- 2013 c 219 s 1 are each amended to read as follows:(1) There is a theater license to sell beer, including strong beer, or wine, or both, at retail, for consumption on theater premises.

The annual fee is four hundred dollars for a beer and wine theater license.(2) If the theater premises is to be frequented by minors, an alcohol control plan must be submitted to the board at the time of application.

The alcohol control plan must be approved by the board, and be prominently posted on the premises, prior to minors being allowed.(3) For the purposes of this section:(a) "Alcohol control plan" means a written, dated, and signed plan submitted to the board by an applicant or licensee for the entire theater premises, or rooms or areas therein, that shows where and when alcohol is permitted, where and when minors are permitted, and the control measures used to ensure that minors are not able to obtain alcohol or be exposed to environments where drinking alcohol predominates.(b) "Theater" means a place of business where motion pictures or other primarily nonparticipatory entertainment are shown((, and includes only theaters with up to four screens)).(4) The board must adopt rules regarding alcohol control plans and necessary control measures to ensure that minors are not able to obtain alcohol or be exposed to areas where drinking alcohol predominates.

All alcohol control plans must include a requirement that any person involved in the serving of beer and/or wine must have completed a mandatory alcohol server training program.(5)(a) A licensee that is an entity that is exempt from taxation under Title 26 U.S.C.

Sec.

501(c)(3) of the federal internal revenue code of 1986, as amended as of January 1, 2013, may enter into arrangements with a beer or wine manufacturer, importer, or distributor for brand advertising at the theater or promotion of events held at the theater.

The financial arrangements providing for the brand advertising or promotion of events may not be used as an inducement to purchase the products of the manufacturer, importer, or distributor entering into the arrangement and such arrangements may not result in the exclusion of brands or products of other companies.(b) The arrangements allowed under this subsection (5) are an exception to arrangements prohibited under RCW 66.28.305.

The board must monitor the impacts of these arrangements.

The board may conduct audits of a licensee and the affiliated business to determine compliance with this subsection (5).

Audits may include, but are not limited to:

Product selection at the facility;

purchase patterns of the licensee;

contracts with the beer or wine manufacturer, importer, or distributor;

and the amount allocated or used for wine or beer advertising by the licensee, affiliated business, manufacturer, importer, or distributor under the arrangements.(6) The maximum penalties prescribed by the board in WAC 314-29-020 relating to fines and suspensions are double for violations involving minors or the failure to follow the alcohol control plan with respect to theaters licensed under this section.--- END ---