Below is the final legislative update for the regular session that ended March 11, 2010. According to this, the grocery store tasting bill has been signed into law. MAST permit is required prior to conducting tasting.
Sine Die – End of 2010 Legislative Session
Well, thank goodness the 2010 regular legislative session ended March 11 around 8:30pm. The Governor has reconvened the 1st Special Session that began March 15 at noon. The hope is to complete the special session within seven to ten days of its start. Special sessions by state constitution can only last 30 days. Most of the work during the special session will be to come to agreement on the budget and revenue packages.
Summarized below are those bills that passed the legislature and were delivered to Governor Gregoire for action. The Governor had 20 days from end of session to sign, veto or partially veto a bill.
This update provides you with a review of the Liquor Control Board’s agency request legislation and other bills that impact the agency.
Please feel free to contact me directly if you have any questions or concerns. If you would like more information about the legislative process, the Legislature’s web site has a good explanation: http://www.leg.wa.gov/WorkingwithLeg/overview.htm.
Bills at a glance:
Key
SB = Senate Bill. A bill introduced in the Senate.
HB = House Bill. A bill introduced in the House.
SSB or SHB =
2SSB or
2SHB =
ESB or
EHB = An “S” before a House Bill or a Senate Bill indicates a Substitute Bill. This means the bill was amended from the original version.
A “2” indicates a second substitute. This means the bill was amended by a second committee typically a fiscal committee.
An “E” indicates an engrossed bill. This means the bill was amended on the floor of the chamber before it passed out of the house of origin.
Position Definition:
Support: The Board supports the legislation as is.
Against: The Board does not support the legislation as it does not meet the mission of the agency.
Neutral: The Board takes no policy position, but ensures resources are provided to guarantee the responsible sale and service of alcohol and tobacco.
Bill # Description Status
Alcohol & Tobacco Related Legislation
SHB 2804 Beer and Caffeinated Malt Beverages – Agency Request Died in Committee
SB 5729
HB 2846 Concerning Alcohol Sales (Sheldon’s ’09 bill) (Privatization)
Contract Liquor Stores (Sheldon’s ’09 bill by Alexander) Died in Committee
Died in Committee
SB 6204
HB 2845 Privatizing Sale of Liquor (Sheldon)
Privatizing Sale of Liquor (Sheldon’s bill by Alexander) Died in Rules
Died in Committee
SB 6839 Privatizing State Liquor Stores Died in Committee
SB 6840 Privatizing Sale of Liquor Died in Committee
HB 2890 Privatizing Sale of Liquor (Sheldon’s bill by O’Brien) Died in Committee
HB 3189 Privatizing Alcohol Sales Died in Committee
SB 6254
HB 2526 Small Wineries/Taxes
Small Wineries/Taxes Died in Committee
Died in Committee
SB 6259 Craft Wine and Wineries Died in Committee
SB 6260 Alcoholic Beverages/Payment Died in Committee
SSB 6329
SHB 2688 Beer & Wine Tasting (grocery store endorsement)
Beer & Wine Tasting (grocery store endorsement) Signed by Governor
Died in Rules
SB 6333
HB 2642 Beer and Wine Tastings at Farmers Markets
Wine Tastings at Farmers Markets Died in Rules
Died in Rules
SSB 6485 Craft Distilleries Delivered to Governor
SB 6744 Liquor Markup Died in Committee
HB 2401 Legalizing Marijuana Died in Committee
SHB 2790 Technical and Clarifying Language on Liquor Laws Died in Rules
SB 6719
HB 2947 Special Occasion License
Special Occasion License Died in Rules
Died in Rules
SB 6447
HB 2639 Pipe Tobacco
Pipe Tobacco Died in Committee
Died in Committee
HB 2493 Cigarette & Tobacco Taxation Died in Committee
Governor’s Request Legislation
SB 6065
HB 2205 Structure and authority of the liquor control board
Structure and authority of the liquor control board Died in Rules
Died in Committee
Personnel Related Legislation
SSB 6382 State Government Compensation Signed by Governor
SSB 6503 Closing State Agencies Special Session: Rules
ESSB 6130 Amending provisions related to Initiative No. 960 Signed by Governor
HB 2921 Making 2010 supplemental operating appropriations. Signed by Governor
HB 2998 Suspending certain monetary awards and salary increases. Signed by Governor
Misc. Legislation
2SHB 2603 Small Businesses Delivered to Governor
Legislative Update
March 24, 2010
Agency Request Legislation
Beer and Caffeinated Malt Beverages (SHB 2804)
Sponsor: Representative Tami Green
Status: Died in Senate Labor, Commerce & Consumer Protection Committee.
Amendment: Requires caffeinated or stimulant-enhanced malt beverages to be labeled with the amount of caffeine or other stimulants, the alcohol content, and other information.
Creates a definition for caffeinated stimulant-enhanced malt beverages and bans the sale of these products in the State of Washington.
Position: Support
Alcohol Related Legislation
Privatizing the Sale of Liquor (SSB 6204 / HB 2845)
Sponsors: Senator Tim Sheldon / Representative Gary Alexander
Status: Died in Senate Rules. Died in House Commerce & Labor Committee.
Amendment in SSB 6204: The Board must consult with the Office of Financial Management (OFM) and the appropriate legislative committees to examine the December 2009 state government performance review, Opportunities for Washington, and examine ways to increase efficiency and revenue through the sale of liquor. The Board must examine the six alternatives identified in the performance review and investigate other options it deems appropriate. Support for the study will be provided by OFM and the appropriate legislative staff. The Board is to report its findings to the Legislature by December 1, 2010.
Transitions state-run liquor stores to privately run liquor franchises. A liquor franchise is defined as a specific location designated by the Board where spirits, beer, and wine may be sold in original packages for off-premises consumption, or where liquor may be sold to the holders of a permit to purchase.
Privatizes the retail sale and distribution of liquor; declares an intent that the privatization of liquor sales and distribution not result in losses in revenue to the state or local governments; directs the LCB and the Department of Revenue to present a report to the legislature no later than December 1,2010, on a recommended method and rates of liquor taxation that would generate the same future projected revenue for the state and local jurisdictions as under the current state control system.
Position: Neutral – Adopted LCB recommendations to further study options.
Link to January 14, 2010 testimony on TVW: http://tvw.org/media/mediaplayer.cfm?evid=2010011144&TYPE=A&CFID=2772504&CFTOKEN=64096177&bhcp=1
Legislative Update
March 24, 2010
Privatization – Contract Liquor Stores (SB 5729 / HB 2846)
Sponsor: Senator Tim Sheldon / Representative Gary Alexander
Status: Died in Senate Labor, Commerce & Consumer Protection Committee. Died in House Ways & Means Committee.
• Directs the board to close 25 state liquor stores between July 1, 2010 and December 1, 2011, and convert them to contract liquor stores.
• Requires the state and contract liquor stores to focus on the sale of spirits as their primary product and to follow the same rules as private retailers for the distribution of wine.
• Creates a task force on the contracting out of liquor to advise the LCB as it implements further contracting out of liquor stores.
• Directs the joint legislative audit and review committee to study the impacts of further contracting out the state’s retail sale of liquor.
Position: Oppose
Privatizing State Liquor Stores (SB 6839)
Sponsor: Senator Rodney Tom
Status: Died in Senate Ways & Means Committee.
Revises leasing periods for state liquor stores from ten years to three years.
Position: Oppose – Would create additional cost for leasing of state liquor stores.
Privatizing the Sale of Liquor (SB 6840)
Sponsor: Senator Rodney Tom
Status: Died in Senate Ways & Means Committee.
Privatizes the retail and distribution of liquor to result in a system that is more efficient than public sector retail and distribution. Directs the liquor control board and the department of
revenue to present a report to the legislature by December 1, 2010, on a recommended method and rates of liquor taxation that would generate the same future projected revenue for the state and local jurisdictions as under the current state control system.
Position: Oppose
Privatizing the Sale of Liquor (HB 2890)
Sponsor: Representative Al O’Brien
Status: Died in House Commerce & Labor Committee.
Same as SB 6204 and HB 2845. The bill privatizes the retail sale and distribution of liquor.
Position: Concerns – Unable to determine full impact of the proposal. Unlike SB 6204, that creates franchise liquor stores; this bill allows any retailer to sell spirits through an annual license with no restriction to the number of liquor stores (i.e. California model).
Legislative Update
March 24, 2010
Privatizing Alcohol Sales (HB 3189)
Sponsor: Representative Gary Alexander
Status: Died in House Commerce & Labor Committee.
• Requires the Liquor Control Board (Board) to convert at least 20 state liquor stores to contract stores and convert an additional 10 stores on a pilot basis.
• Requires the Board to study the contracting out of the retail sale of liquor and report findings and recommendations to the Legislature by December 31, 2012.
• Requires legislative approval to increase the number of contract liquor stores.
Position: Concerns
Tax Payment and Reporting of Small Wineries (SB 6254 / HB 2526)
Sponsors: Senator Adam Kline / Representative Al O’Brien
Status: Died in Senate Labor, Commerce & Consumer Protection Committee. Died in House Finance Committee.
Every winery, COA, wine importer, and wine distributor must make monthly tax reports to the board. This bill creates a change in tax reporting for wineries and COAs that had total taxable sales of wine in Washington State of 6,000 gallons or less during the calendar year to report annually.
Position: Neutral – $250,000 fiscal note to make programming changes to allow annual payment.
Craft Wine and Wineries (SB 6259)
Sponsor: Senator Adam Kline
Status: Died in Senate Labor, Commerce & Consumer Protection Committee.
Creates a “craft winery” license for wineries that produce less than 25,000 gallons of wine. The craft winery would not be subject to RCW 66.28.170 pertaining to uniform pricing and quantity discounts.
Position: Oppose – Would grant small wineries an exemption from current credit laws and regulations that all other producers must adhere to.
Alcoholic Beverages/Payment (SB 6260)
Sponsor: Senator Adam Kline
Status: Died in Senate Labor, Commerce & Consumer Protection Committee.
Allows retailers to take up to five days to pay for product purchased from a manufacturer, importer, or distributor.
Position: Oppose – Would grant small wineries an exemption from current credit laws and regulations that all other producers must adhere to.
Legislative Update
March 24, 2010
Beer and Wine Tastings at Farmers Markets (SB 6333 / HB 2642)
Sponsors: Senator Jeanne Kohl-Welles / Representative Phyllis Kenney
Status: Died in Senate and House Rules.
This bill creates a pilot for beer and wine tasting at farmers markets. The pilot will take place between July 1, 2010 and September 30, 2011. Samples must be 2 ounces or less and a total of 4 ounces is allowed per customer per visit. Employees involved in tasting activities must complete a Board approved limited alcohol server training program.
Ten farmers markets will be chosen for the pilot. Only two wineries per location may sample.
Position: Neutral – Adopted all LCB recommendations to ensure responsible sales and service.
Beer and Wine Tasting Endorsement to the Grocery Store License (SSB 6329 / SHB 2688)
Sponsors: Senator Jeanne Kohl-Welles / Representative Ross Hunter
Status: Signed by Governor – effective 6/10/2010. House bill died in Senate Rules.
Amendment in SSB 6329: Allows wineries and certificate of approval holders to perform personal services at a grocery store with a tasting endorsement.
Amendment in SHB 2688: Allows grocery stores to offer beer and wine tasting. Establishes eligibility criteria for stores and conditions for tastings.
Creates a beer and wine tasting endorsement for grocery store license holders. The annual fee for the endorsement is $200. The following requirements must be met:
• At least half of the gross sales of the store must be from retail sales of grocery products for off-premise consumption or the store must be a membership organization;
• The store must be at least 9,000 square feet; and
• The store cannot have more than one public safety violation within the past two years.
The board may issue the endorsement to stores smaller than 9,000 square feet if the store meets operation requirements and the board finds there are no stores in the community that meet the minimum size requirements.
Employees serving beer/wine must be MAST trained, and food must be available for tasting participants.
Sample size is limited to 2 ounces, and no more than 4 ounces per customer per visit.
The licensee must be able to observe and control patrons in the tasting service area.
Sampling costs must be paid for by the licensee.
Position: Neutral – Adopted all LCB recommendations to ensure responsible sales and service.
Legislative Update
March 24, 2010
Legalizing Marijuana (HB 2401)
Sponsor: Representative Mary Lou Dickerson
Status: Died in House Public Safety and Emergency Preparedness Committee.
Did not receive sufficient votes to be voted out of committee.
• Legalizes marijuana for adults over 21 years of age.
• Deletes marijuana off the controlled substance list in the Uniformed Controlled Substance Act.
• Authorizes marijuana to be sold in liquor stores to adults and to be regulated by the LCB.
• Subjects the possession and sale of marijuana to all the same rules, regulations, and penalties as those that apply to liquor.
• Creates a license for farmers of marijuana, including all kinds of manufactures, authorizing licensees to produce, manufacture, grow, transport within the state of Washington, and sell marijuana. The cost of the license is $500.
Position: No position
Technical and Clarifying Language on Liquor Laws (SHB 2790)
Sponsor: Representative Steve Conway
Status: Died in Senate Rules.
Amendment: Adds references to additional types of licenses to a 2009 law allowing financial interests between various tiers of the liquor industry. Allows a vendor to obtain a permit to donate liquor for consumption at a liquor licensee trade association convention. Makes housekeeping and technical changes.
Makes technical and clarifying changes to laws created in the 2009 legislative session on tied house issues. Repeals RCW 66.28.010.
Position: Support
Special Occasion License (SB 6719 / HB 2947)
Sponsors: Senator Ed Murray / Representative Alex Wood
Status: Died in Senate and House Rules.
Authorizes special occasion licensees to pay for beer or wine immediately following the end of a special occasion event. Also allows wineries and breweries participating in a special occasion event to pay reasonable table fees to a special occasion licensee.
Position: Support
Liquor Markup (SB 6744)
Sponsor: Senator Curtis King
Status: Died in Senate Labor, Commerce & Consumer Protection Committee.
Prohibits the liquor control board from increasing the markup of any liquor product.
Position: Oppose – The intent of the bill is to not allow the Board to raise mark-up unless it funds Board operations. As currently written it prohibits the Board from raising the mark-up.
Legislative Update
March 24, 2010
Craft Distilleries (SSB 6485)
Sponsor: Senator Chris Marr
Status: Delivered to Governor.
Amendment: The substitute removes domestic wineries from the list of licensed entities who can contract with a craft distillery to distill spirits, and allows domestic distillers or their accredited representatives to pour or dispense spirits at a special occasion event.
Increases a craft distillers production limit to 60,000 gallons. Authorized a craft distillery to contract distilled spirits for, and sell contract distilled spirits to, holders of certain licenses. Allows an industry member to provide to a special occasion licensee, services for pouring or dispensing of spirits distilled by a licensed craft distillery. Revises the grower’s licensing provision.
Position: Neutral – LCB concerns addressed in amendments.
Addressing the Structure and Authority of the Liquor Control Board (SB 6065 / HB 2205)
Sponsors: Senator Darlene Fairley / Representative Steve Conway
Status: Died in Senate Rules. Died in House Commerce & Labor Committee.
This bill changes the board to a voluntary board, and creates a new section in RCW 66.08 creating the office of director of the liquor control board.
Position: Support
Tobacco Related Legislation
Cigarette and Tobacco Taxation (HB 2493)
Sponsor: Representative Eileen Cody
Status: Died in House Finance Committee.
Requires the state treasurer, by July 1, 2011 and by July 1st of each year thereafter, to transfer $18 million from the general fund into the tobacco prevention and control account.
Position: No position
Pipe Tobacco (SB 6447 / HB 2639)
Sponsors: Senator Jeanne Kohl-Welles / Representative Mary Lou Dickerson
Status: Died in Senator Labor, Commerce & Consumer Protection Committee. Died in House Healthcare & Wellness Committee.
Excludes pipe tobacco from the definition of tobacco products for the purpose of prohibiting shipping and transporting tobacco products ordered or purchased by mail or through the internet.
Position: No position
Legislative Update
March 24, 2010
Employee Related Legislation
State Government Compensation (SSB 6382)
Status: Signed by the Governor – effective 2/15/2010.
Amendment:
• The prohibition on salary and wage increases for exempt and WMS employees of state agencies and institutions of higher learning is extended through June 30, 2011.
• An employer may grant a salary increase to a position for which it has a demonstrated difficulty retaining qualified personnel, provided that the increase can be paid within existing resources and without adversely impacting the delivery of client services.
• Any agency giving a salary increase for an exempt or WMS position must submit a report to the fiscal committees of the Legislature by July 31, 2011, describing the increases given and the reasons for the increases.
• The prohibition on salary increases is expanded to include awards of cash or cash equivalents given in recognition for performance or longevity.
The prohibition on salary and wage increases for exempt and WMS employees of state agencies and institutions of higher learning is extended through June 30, 2011. An employer may grant a salary increase to a position for which it has a demonstrated difficulty retaining qualified personnel, provided that the increase can be paid within existing resources and without adversely impacting the delivery of client services. Any agency giving a salary increase for an exempt or WMS position must submit a report to the fiscal committees of the Legislature by July 31, 2011, describing the increases given and the reasons for the increases. The prohibition on salary increases is expanded to include awards of cash or cash equivalents given in recognition for performance or longevity.
Amending Provisions Related to Initiative No. 960 (ESSB 6130)
Status: Signed by the Governor – effective 2/24/2010.
The two-thirds majority voting requirement for legislative actions raising taxes is suspended through July 1, 2011. Also suspended through July 1, 2011, is the requirement for a tax advisory vote for any tax increase not submitted to the voters.
Suspending Certain Monetary Awards and Salary Increases (HB 2998)
Status: Signed by the Governor – effective 2/15/2010.
• Suspends state employee monetary performance-based awards through June 30, 2011, including those for Washington State Civil Service, exempt, and Washington Management Service (WMS) employees.
• Suspends WMS growth and development increases through June 30, 2011, and monetary performance pay-based awards to all Housing Finance Commission employees.
• Permits the Washington State Productivity Board to continue to grant awards for money-saving ideas.
Legislative Update
March 24, 2010
Closing State Agencies (i.e. Furlough) (SSB 6503)
Status: Special Session: Rules
Amendment:
• Changes the start date on the days to be closed to June 14, 2010.
• Directs state agencies, including institutions of higher education, to achieve a total of approximately $50 million in General Fund-State and Education Legacy Account savings from government plus proportionate amounts from other funds.
• Directs that savings will be generated through either 11 temporary agency closure days or alternate approved compensation reduction plans.
• Directs that in addition to the closure or alternate compensation reduction plan savings, Washington Management Services and Exempt employee compensation will be reduced by $10 million General Fund-State, plus proportionate amounts from other funds.
• Provides a list of agencies, or portions of agencies, exempt from the closures.
• Executive branch general government state agencies and higher education institutions may submit plans that achieve compensation cost savings equal to closing the agency for 11 days to the OFM by May 15, 2010.
• The OFM will additionally reduce allotments to agencies for compensation expenditures for Washington Management Services and Exempt Management Services employees by $10 million General Fund-State and proportionate amounts in all other funds.
Original Bill:
Exceptions to the agency closure dates include state corrections and social service institutions, child protective services, law enforcement, military operations, emergency management, state parks and ferries, higher education classroom instruction, state liquor stores, unemployment insurance, workers compensation, state legislative agencies and the Office of Financial Management during legislative sessions, and employees necessary to protect state assets and public safety.
Exempts state liquor store employees, liquor enforcement officers and distribution center.
Legislative Update
March 24, 2010