Interim policy on Wine Dispensing Machines‏

Interim Policy – Wine Dispensing Machines

Purpose: The purpose of the Liquor Control Board Interim Policy # 01-2011 is to allow an added activity for using wine dispensing machines for wine tastings at a winery premises with proper supervision.

Background:
In December, 2007, the Board responded to a company that wanted to sell wine dispensing machines to retail liquor licensees. The Board states, “The Board discussed your product and proposal with members of our staff, and we understand the benefit your product can bring to a retailer. We have no objection to liquor licensees using the Enomatic Wine Serving System in their businesses behind he bar where only employees will be pouring the wine. Public safety is a top priority for the Board. Washington State has laws requiring any person who serves alcohol to have an Alcohol Server Permit. Customers are not allowed to serve themselves in any manner.”

In December, 2010, Sal Leone, President/CEO of Washington Wine and Beverage Company asked the board staff if he could use the Enomatic Wine Serving System for tastings at his winery. Board staff responded the Board’s position on these systems was that they were not to be used by customers to serve themselves.

Board staff met with Mr. Leone to discuss his plan to use the Enomatic Wine System Serving System. Mr. Leone provided stuff with information on how and when the system would be used and the safety precautions that would be taken under proper conditions and supervision. Board staff feels the use of this machine for wine tastings at a winery doesn’t compromise public safety our under age consumption.

Policy Statement:
The requirements for the added activity, allowing a winery to use a wine dispensing machine for wine tastings under certain conditions, are as follows:

* A winery must request permission from the Board for the added activity to use a wine dispensing machine for tastings in the tasting room area only at heir winery premises;
* The Board will consider these requests on a case-by-case basis. * Both Enforcement and Licensing Divisions must concur on the approval of the request before the use of the wine dispensing machine is allowed.
* A wine tasting card must be purchased from an employee of the winery. The card may allow no more than a total of five ounces dispensed in single servings of no more than one ounce, and no more than two cards may be purchased by any one customer per day;
*Wine tasting cards will not be sold to an intoxicated customer or to a person under the age of twenty-one years of age;
*Employees participating in the wine tasting must hold a class 12 or a class 13 alcohol sever permit; and
* Winery employees must be present to the wine tasting areas. There must be an appropriate level of supervision to observe the customers throughout the tasting area.

Alcohol and Energy Drinks

There has been a growing concern about mixing alcohol and energy drinks, which often contain high amounts of the stimulant caffeine. Medical and scientific research suggests that combining alcohol and stimulants such as caffeine may increase the rate of alcohol-related injury and risky behavior. There have been many unfortunate episodes with young people becoming hospitalized and nearly dying after combining energy drinks with alcohol. As a result, a ban was passed on alcohol energy drinks in Washington State in November, 2010.

When a person has consumed too much alcohol, they will naturally feel fatigued since alcohol is a depressant. Stimulant drinks can mask this natural response and the drinker may not know how impaired they really are. This can be especially dangerous in combination with other activities such as driving. People who use alcohol and stimulants together are likely to drink more before feeling the effects of alcohol. Sadly, young people are not only the group that is most adversely affected by and most often abusing the alcohol-caffeine combination; they are also the target demographic for companies that sell alcohol energy drinks.

The many energy drink products that are now banned in Washington State include Four Loko; a 23.5 ounce can of Four Loko, which is 12% alcohol, is comparable to drinking five or six beers. Other problems can result from combining alcohol and caffeine. According to the National Institutes of Health, caffeine can boost heart rate and blood pressure, causing heart palpitations; mixing it with alcohol may make heart rhythm problems worse. Also, both alcohol and caffeine are diuretics, meaning each dehydrate the body. Thus, consuming caffeine with alcohol does not curtail a hangover. Despite the misconception, caffeine actually INTENSIFIES hangovers because it increases dehydration. In contrast, other mixers will keep the body hydrated which will decrease the negative effects of alcohol.

Board Files Emergency Rules to Ban Alcoholic Energy Drinks

Notice of Permanent Rule Banning Alcohol Energy Drinks in the State of Washington

This explanatory statement concerns the Washington State Liquor Control Board’s adoption of a new rule prohibiting the importation, manufacture, distribution, and sale of alcohol energy drinks in the State of Washington.

 

The Administrative Procedure Act (RCW 34.05.325(6)) requires agencies to complete a concise explanatory statement before filing adopted rules with the Office of the Code Reviser.  This statement must be provided to anyone who gave comment about the proposed rule making.

 

Once persons who gave comment during this rule making have had a chance to receive this document, the Liquor Control Board will file the amended rules with the Office of the Code Reviser.  These rule changes will become effective 31 days after filing (approximately April 2, 2011).

 

The Liquor Control Board appreciates your involvement in this rule making process.  If you have any questions, please contact Karen McCall, Rules Coordinator, at (360) 664-1631 or e-mail at rules@liq.wa.gov.

 

Wednesday, November 10, 2010 4:27 PM

At today’s Board Meeting, the Board filed emergency rules to prohibit the sale and distribution of malt-based alcoholic energy drinks after Nov. 17. The emergency rules will be in effect for 120 days, during which time the WSLCB will seek to make the rules permanent.

The meeting was followed by a press conference at the Governor’s Office. Governor Gregoire and Board Chair Sharon Foster fielded questions from major media outlets.

Please visit www.liq.wa.gov to view the Governor’s Office press release, a fact sheet, Q and A, and more.

Here’s one of many stories that has been posted this afternoon:

The Seattle Times
State bans ‘blackout in a can’ caffeinated alcohol drinks

OLYMPIA — The state Liquor Control Board on Wednesday approved an emergency ban of caffeinated alcohol drinks, the type of beverage that sickened nine Central Washington University students last month during an off-campus party.

Board Chair Sharon Foster makes a statement at the
Nov. 10 press conference on alcoholic energy drinks.

Anne Radford

Communications Consultant
Washington State Liquor Control Board

ara@liq.wa.gov

(360) 664-1604

Blaine Man Gets 3 DUIs After Crashing 2 Cars, Trying to Tow Them Away

Washington

Published September 15, 2010

BY JESSICA BADER AND PETER JENSEN; THE BELLINGHAM HERALD

BLAINE – Tommy Ryser could have been arrested on one count of DUI had he stayed with the truck he allegedly crashed into a utility pole Monday night, Sept. 13, in the 3300 block of Sweet Road.

He could have been arrested on a second count had he stayed in his wife’s car, which he allegedly crashed into a guardrail a short distance away soon afterward.

But Ryser, 54, of Blaine compounded his problems when he retrieved his tow truck and returned to the second crash scene, with his forehead bloodied, to tow his wrecked cars back to his house. That gave deputies evidence to arrest him on a third count of DUI, said Sgt. Larry Flynn of the Whatcom County Sheriff’s Office.

A little after 8 p.m., sheriff’s deputies received the first crash report, Flynn said.

Deputies found that the pickup truck, with a trailer in tow, had been abandoned on the side of Sweet Road after it was crashed into the pole, Flynn said. Ryser was the registered owner, Flynn said.

While they were investigating that crash, they got the second crash report farther down the road, this time involving a Volkswagen Golf registered to the same family, Flynn said.

A little while later, Ryser pulled up in his privately owned tow truck and was questioned by deputies, Flynn said.

Through those interviews, deputies were able to ascertain that Ryser was driving both cars before they crashed, Flynn said.

Ryser was taken to the Whatcom County Jail, where he was allegedly determined to be intoxicated and was booked into the jail on suspicion of three counts of driving under the influence, Flynn said.

Tribal Identification Cards

A link to the Tribal Cards :

http://www.liq.wa.gov/publications/tribal-id-page.asp

Should We BAC Down?

Post by: Eric A. Morris
May 20, 2010 at 2:00 pm

Drunk driving doesn’t grab our attention like the oil slick, perhaps because the damage comes in a steady drip instead of (literally) one big gusher. But the costs we pay for the interaction between alcohol and driving are large, in terms of lives lost, medical care, property damage, enforcement, and more.

There are definitely ways we could save lives through additional policies to control DUI. But some may be more effective than others, and all would come at a cost in terms of a pleasure that many of us enjoy and even rely on. So which trade-offs might be worth making?

Here’s one possibility: cutting the legally permissible BAC from .08 to .05. James C. Fell and Robert B. Voas have done an extremely helpful study that reviews the research on this potential policy change.

The beauty of studying BAC limits is that we have lots of neat natural experiments; over the years many places have lowered permissible alcohol levels, so we can see what has happened when they did.

For example, at the start of the 1970s some states had no formal legal BAC limit, and most that did set it at .15. Eventually, most states moved to .10. Starting in 1983, states began to reduce this to .08 and since 2002 all states have been at that level.

This change has been accompanied by a precipitous drop in accidents involving alcohol: in 1982 there were 1.64 alcohol-related road fatalities per 100 million miles driven, and in 2008 there were only 0.40.

Granted, we can’t attribute all or even most of this to reduced BAC limits. Lots of different anti-drunk driving measures were taken during that time, like better education and harsher penalties. Besides, travel in general got safer thanks to better cars and roads.

Scholars do, however, try to take these things into account and can tease out what the BAC limits do, independent of other factors.

What happened when states went down to .08? Approximately 20 scholarly analyses have found strong evidence lives were saved. The median study found that, thanks to the .08 limit, fatal crashes involving alcohol dropped by about 7 percent.

For reference, we had about 12,000 fatalities from crashes involving alcohol in 2008, so this very roughly implies an annual savings of well over 800 lives.

Other studies have reached very similar findings. D. Eisenberg found that the more strict limit cut total traffic fatalities by 2.6 percent, implying at least 1000 lives saved annually, and A.S. Tippetts, R.B. Voas, J.C. Fell and J.L. Nichols found that if all states had the .08 limit in 2000 over 900 lives would have been saved that year.

Since the drop to .08 was effective, what if we took the next step, to.05?

At least 100 studies show that driving with a BAC below our current limit of .08 — but above above .05 — is quite dangerous (see this review from H. Moskowitz and D. Fiorentino). For example, P.L. Zador, S.A. Krawchuk and R.B. Voas found that drivers with a BAC between .05 and .07 have 4 to 10 times the risk of being in a fatal crash compared to sober drivers.

Cutting the limit to .05 would be far from unprecedented. At least 52 nations have done it, including Brazil, China, India, Russia, the Nordic countries, Argentina, France, Germany, Italy, Greece, Spain, Taiwan, Thailand and Turkey. And none of their civilizations are collapsing, with the possible exception of Greece’s, and that for unrelated reasons.

Several studies have found that countries experienced positive results when they went down to .05. For example, J. Henstridge, R. Homel and P. Mackay reported that fatal crashes dropped 18 percent in Queensland, Australia and eight percent New South Wales (even controlling for other anti-DUI measures).

What would the effects be in this country? To the best of my knowledge no projections exist. But in 1998, a very thorough study by R.E. Mann, S. Macdonald, G. Stoduto, S. Bondy and A. Shaikh looked at what the effects of a national 0.05 limit would be for Canada, a country with driving and DUI levels in the same ballpark as ours.

They concluded that the adoption of a .05 BAC limit would cut motor-vehicle crash fatalities by 6 to 18 percent. To make an admittedly very back-of-the-envelope calculation, taking their most conservative estimate and applying it to the current US fatality rate indicates that perhaps 2,400 lives would be saved by this policy.

But at what cost? Well, we’d have to drink less. Determining how many drinks result in a particular BAC is extremely hazardous, since much of it has to do with factors like weight and metabolism. But to be on the safe side, drivers, particularly lighter ones, would have to limit themselves to a single drink before climbing behind the wheel.

Are hundreds or quite possibly thousands of lives a year worth this sacrifice? One could certainly make the case that the answer is “no,” given that there are millions of us who enjoy alcohol very much. Certainly there are plenty of other policy arenas where we trade off death for pleasure (smoking, motorcycle riding, junk food consumption), although most of those don’t jeopardize others the way drunk driving does. In any event, I’ll leave it up to you to decide if you’d be willing to turn that second beer into a root beer.

Passport Cards vs. Passport Books‏

The passport card is allowed to be accepted as valid ID per WAC 314-11-025 “passport”.

Grocery Store Beer/Wine Tasting

May 3, 2010

A letter is sent out to all local authorities, letting them know about their right to object to a grocery store getting the new Grocery Store Beer/Wine Tasting endorsement. The letter outlines the process and the criteria that must be met for a grocery store to qualify for this endorsement.

Nightclub License

April 6, 2010

Dear Licensee

The 2009 Legislature created a new license type called the nightclub license. You have received this letter because your business has been identified as a potential candidate for this new license type. Our records do not contain specific information related to your business operation; however please review this new license type to determine if it fits your operation and whether a nightclub license may be more appropriate.
The nightclub license is designed to address businesses that offer entertainment and whose primary operation hours are between 9 pm and 2 am. If your business fits this model, you may find the nightclub license to your advantage.
Nightclub License Provisions
The following new provisions apply to this nightclub license:
 There is no requirement to be open a certain number of days per week.
 There is no food/menu requirement.
 According to the definition in law, a nightclub must have an occupancy load of 100 or more.
 Minors may be present at the premises as long as they are in an area that is separated from the
area allowing alcohol service by a barrier.
 Annual license cost may be less. Currently the Spirits/Beer/Wine Restaurant Lounge license
with less than 50% dining costs $2,210. The fee for the nightclub license is $2,000.

If you choose to convert your license at this time, licensing staff will work with you to avoid paying both your sprit/beer/wine license renewal and the nightclub application fee. This will result in significant savings.

Local Authority Conditions
There is one additional provision of the nightclub license that you need to consider. The local authority (city or county) in which your business is located, may request other “public safety” related restrictions be added to your nightclub license. Examples of these restrictions include; restricting minors from your business, requiring a security plan or other conditions relating to the service of alcohol but must clearly be public safety related. If the applicant disagrees with these restrictions proposed by the local authority, the Board will grant you the opportunity to present these objections for consideration.
If your establishment appears to be consistent with the business model of a nightclub, you should consider applying for the nightclub license. If you are interested you may apply on-line at the Department of Licensing website at http://www.dol.wa.gov/business/liquor.html or contact our offices at (360) 664-1600 for an application packet.
In implementing this new legislation, our Enforcement and Education Division will begin looking more
closely at spirit/beer/wine licensees to ensure they are complying with the requirements to qualify as a
bonafide restaurant. These requirements include minimum hours of operation and food service in
accordance with existing restaurant regulations. Therefore, in order to maintain compliance with state
liquor regulations, establishments that do not operate as restaurants may need to convert to the
nightclub license.

Washington Legislative Update

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