HB 1351 — Authorizing, under one license, the sale of spirits, beer, and wine at retail for off-premises consumption.

H-2096.1SECONDH-0733.2HOUSE SUBSTITUTE HOUSE BILL 1351State of Washington65th Legislature2017 Regular SessionBy House Appropriations (originally sponsored by Representatives Sawyer, Vick, Springer, Barkis, Blake, Fitzgibbon, and Haler)READHalerRead FIRSTfirst TIMEtime 02/24/17.AN01/18/17. ACT Relating to authorizing, under one license, the sale of spirits, beer, and wine at retail for off-premises consumption;

amendingReferred RCWto 66.24.360,Committee 66.24.630,on 66.24.363,Commerce & Gaming.AN ACT Relating to authorizing, under one license, the sale of spirits, beer, and 66.24.632;wine at retail for off-premises consumption;

amending RCW 66.24.360, 66.24.630, and 66.24.363;

and(c) Export spirits.(2) The annual fee for the combination spirits, beer, and wine license is threetwo hundred sixteenfifty dollars for each store.(3) For the purposes of this title, a combination spirits, beer, and wine license is a retail license, and a sale by a combination spirits, beer, and wine licensee is a retail sale only if not for resale.

Nothing in this title authorizes sales by on-premiseon sale licensees to other retail licensees.(4)(a) The board may issue a combination spirits, beer, and wine license:(i)license Foronly for premises comprising at least ten thousand square feet of fully enclosed retail space within a single structure, including storerooms and other interior auxiliary areas but excluding covered or fenced exterior areas, whether or not attached to the structure, and only to applicants that the board determines will maintain appropriate systems for inventory management, employee training, employee supervision, and physical security of the product;(ii)product.(b) ForLicense premisesissuances and renewals are subject to RCW 66.24.010 and the regulations adopted thereunder including, without limitation, rights of acities, contracttowns, liquorcounty storelegislative atauthorities, itsthe contractpublic, location;churches, schools, and public institutions to object to or prevent issuance of local liquor licenses.

or(iii)However, Toexisting grocery premises licensed to sell beer and/or wine are deemed to be premises "now licensed" under RCW 66.24.010(9)(a) for the purpose of processing applications for combination spirits, beer, and wine licenses.(c) A retailer authorized to sell spirits for consumption on or off the licensed premises may accept delivery of spirits and deliver spirits in the same manner as is provided in RCW 66.24.630(3)(d).(d) For purposes of negotiating volume discounts of spirits, a holdergroup of formerindividual stateretailers liquorauthorized storeto operatingsell rightsspirits soldfor atconsumption auctionoff underthe licensed premises may accept delivery of spirits as provided in RCW 66.24.620.(b)66.24.630(3)(e).(5) LicenseEach issuancescombination spirits, beer, and renewalswine arelicensee subjectmust pay to the board, for deposit into the liquor revolving fund, a license issuance fee equivalent to the license issuance fee imposed on licensees selling spirits pursuant to RCW 66.24.01066.24.630(4)(a).(6) The board may not issue a combined spirits, beer, and wine license to an applicant if the regulationsapplicant adoptedwould thereunderqualify including,for withouta limitation,restricted rightslicense as provided in RCW 66.24.371(4) or 66.24.360(7) if the applicant had applied for a license under RCW 66.24.371 or 66.24.360 instead of cities,pursuant towns,to countythis legislativesection.(7) authorities,As a condition to receiving and renewing a combination spirits, beer, and wine license the public,licensee churches,must schools,comply with RCW 66.24.630(6).(8) The maximum penalties prescribed by the board in WAC 314-29-020 through 314-29-040 relating to fines and publicsuspensions institutionsare doubled for violations relating to objectthe sale of spirits by combination spirits, beer, and wine licensees.(9)(a) A combination spirits, beer, and wine licensee that joins the responsible vendor program developed by the board pursuant to orRCW prevent66.24.630(8) issuanceand maintains all of localthe liquorprogram's licenses.requirements is not subject to the doubling of penalties provided in this section for a single violation in any period of twelve calendar months.(b) To participate in the responsible vendor program, a combination spirits, beer, and wine licensee must submit an application form to the board.

However, existing grocery and other retail premises over ten thousand square feet licensed to sell beer and/or wine are deemed to be premises "now licensed" under RCW 66.24.010(9)(a) for the purpose of processing applications for combination spirits, beer, and wine licenses.(c) A retailer authorized to sell spirits for consumption on or off the licensed premises may accept delivery of spirits and deliver spirits in the same manner as is provided in RCW 66.24.630(3)(d).(d) For purposes of negotiating volume discounts of spirits, a group of individual retailers authorized to sell spirits for consumption off the licensed premises may accept delivery of spirits as provided in RCW 66.24.630(3)(e).(5) Each combination spirits, beer, and wine licensee must pay to the board, for deposit into the liquor revolving fund, a license issuance fee equivalent to the license issuance fee imposed on licensees selling spirits pursuant to RCW 66.24.630(4)(a).(6) The board may not issue a combined spirits, beer, and wine license to an applicant if the applicant would qualify for a restricted license as provided in RCW 66.24.371(4) or 66.24.360(7) if the applicant had applied for a license under RCW 66.24.371 or 66.24.360 instead of pursuant to this section.(7) As a condition to receiving and renewing a combination spirits, beer, and wine license the licensee must comply with RCW 66.24.630(6).(8) The maximum penalties prescribed by the board in WAC 314-29-020 through 314-29-040 relating to fines and suspensions are doubled for violations relating to the sale of spirits by combination spirits, beer, and wine licensees.(9)(a) A combination spirits, beer, and wine licensee that joins the responsible vendor program developed by the board pursuant to RCW 66.24.630(8) and maintains all of the program's requirements is not subject to the doubling of penalties provided in this section for a single violation in any period of twelve calendar months.(b) To participate in the responsible vendor program, a combination spirits, beer, and wine licensee must submit an application form to the board.

The board shall review the fee annually and may increase the fee by rule to a level sufficient to defray the cost of administration and enforcement of the endorsement, except that the board may not increase the fee by more than ten percent annually.(10) The board must adopt rules to implement this section.(11) An endorsement issued pursuant to this section may be issued to a qualified combination spirits, beer, and wine licensee in accordance with section 1 of this act.Sec. 6.  RCWact.--- 66.24.632END and--- 2013 2nd sp.s.

c 12 s 3 are each amended to read as follows:(1) Beginning June 30, 2013, the license issuance fee under RCW 66.24.630(4) does not apply to a spirits retail licensee or combination spirits, beer, and wine licensee that was a contract liquor store manager with respect to sales of spirits in original containers from the location of its spirits retail licensed premises to retailers licensed to sell spirits for consumption on the premises for resale at their licensed premises.(2) Beginning June 30, 2013, the license issuance fee under RCW 66.24.630(4) does not apply to a spirits retail licensee or combination spirits, beer, and wine licensee that was a former state store auction buyer, with respect to sales of spirits in original containers from the location of its spirits retail licensed premises to retailers licensed to sell spirits for consumption on the premises for resale at their licensed premises.(3) The exemptions created in this section attach to any successor, by purchase or otherwise, to the spirits retail license or combination beer and wine license, except that an exemption does not attach to any such successor that owns, directly or indirectly, any interest in a spirits retail license that is not derived directly from a former contract liquor store manager or a former state store auction buyer.--- END ---