PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 99-04-113, 99-09-039, and 99-19-142.
Title of Rule: A chapter regarding the requirements for retail liquor licenses.
Purpose: The Liquor Control Board is currently undergoing a review of all of its rules to make them clear and usable, per Governor Locke's Executive Order 97-02. Proposed chapter 314-02 WAC would replace other WACs and policies that outline the requirements for retail liquor licenses, such as restaurants, taverns, and grocery stores.
Statutory Authority for Adoption: RCW 66.08.030, 66.24.010, 66.24.410, 66.24.420, 66.24.400, 66.24.440, 66.24.455, 66.24.230, 66.24.330, 66.24.350, 66.24.354, 66.24.360, 66.24.371, 66.24.540, 66.28.210, 66.28.200, 66.28.220, 66.28.230, 66.28.240, and 66.28.250.
Statute Being Implemented: RCW 66.24.410, 66.24.420, 66.24.400, 66.24.440, 66.24.455, 66.24.230, 66.24.330, 66.24.350, 66.24.354, 66.24.360, 66.24.371, 66.24.540, and 66.28.220.
Summary: This proposed chapter would contain the qualifications for eleven different retail liquor licenses.
Name of Agency Personnel Responsible for Drafting: Teresa Berntsen, P.O. Box 43080, Olympia, WA 98504-3080, (360) 664-1648; Implementation: David Goyette, P.O. Box 43075, Olympia, WA 98504-3075, (360) 664-1611; and Enforcement: Ted Taketa, P.O. Box 43075, Olympia, WA 98504-3075, (360) 664-1780.
Name of Proponent: Washington State Liquor Control Board, governmental.
Rule is necessary because of federal court decision, Jersey's All-American Sports Bar, Inc., v. Washington State Liquor Control Board, et al., United States District Court Western District of Washington, Case C98-1622C (1999).
Explanation of Rule, its Purpose, and Anticipated Effects: Proposed chapter 314-02 WAC would outline the requirements for retail liquor licenses, such as restaurants, taverns, and grocery stores. The purpose of the proposed chapter is to describe the various retail liquor licenses and what is needed to qualify for those types of licenses.
Proposed chapter 314-02 WAC would replace other rules and policies that currently address retail liquor licensing qualifications. Per Governor Locke's Executive Order 97-02, the proposed rules were written in clear language in an attempt to create more usable regulations.
Proposal Changes the Following Existing Rules: The following rules would be replaced by the proposed rules WAC 314-16-190, 314-16-196, 314-16-210, 314-16-115, 314-16-197, 314-16-200, 314-16-205, 314-16-140, 314-16-180, 314-16-199, 314-16-055, 314-16-240, 314-16-250, 314-15-010, 314-15-020, 314-15-030, 314-15-040, 314-15-050, and 314-16-130.
Proposed chapter 314-02 WAC would replace these rules that currently address retail liquor licensing qualifications. Per Governor Locke's Executive Order 97-02, the proposed rules were written in clear language in an attempt to create more usable regulations. Several changes are being proposed in these redrafted regulations:
| • | Spirits, beer, and wine restaurants would no longer be required to have persons under 21 years of age on their premises. |
| • | For restaurants, barriers around areas that are restricted from persons under 21 years of age would no longer be required to be a minimum of 42" in height. Rather, the proposed regulations state the licensee is responsible to construct the barriers in such a way as to prevent minors from entering the restricted areas. |
| • | The requirement that spirits, beer, and wine restaurants serve five complete meals is proposed to be change to state that they must serve complete meals as required in law (no certain number). |
| • | For restaurants, counters with customer seating on one side and beverage/food service on the other side would no longer be restricted in dining areas. |
| • | Prior approval would no longer be required for certain activities conducted on premises with liquor licenses, such as live music and patron dancing. Also, live music would be allowed in dining areas without the time restrictions previously imposed. (These changes are partially due to federal district court ruling as cited in this filing notice.) |
| • | For spirits, beer, and wine restaurants, the proposed rules require that they maintain the kitchen equipment necessary to prepare their complete meals as required by law, rather than requiring certain pieces of kitchen equipment. |
| • | Regarding keg registration requirements, patrons that purchase kegs would be required to place the registration sticker on the keg, rather than having the choice to place it on the keg or have it placed within five feet of the keg. |
No small business economic impact statement has been prepared under chapter 19.85 RCW. No disproportionate impact to small businesses.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Washington State Liquor Control Board is not a listed agency in section 201.
Hearing Location: On January 19, 2000, at 9:30 a.m., at the Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98501; on January 19, 2000, at 2:30 p.m., Seattle Public Library, 3rd Floor, Lee Auditorium, 1000 4th Avenue, Seattle, WA; and on January 20, 2000, at 9:30 a.m., at the Double Tree Hotel Pasco, 2525 North 20th, Pasco, WA 99301.
Assistance for Persons with Disabilities: Contact Teresa Berntsen by January 18, 2000, TDD (360) 586-4727, or (360) 664-1648.
Submit Written Comments to: Teresa Berntsen, Rules Coordinator, P.O. Box 43080, Olympia, WA 98504-3080, fax (360) 704-4920, by January 20, 1999 [2000].
Date of Intended Adoption: January 26, 2000.
November 17, 1999
Eugene Prince
Chair
OTS-3532.2
REQUIREMENTS FOR RETAIL LIQUOR LICENSEES
Chapter 314-02 WAC outlines the qualifications for the following liquor licenses and permits:
(1) Spirits, beer, and wine restaurants;
(2) Beer and/or wine restaurants;
(3) Snack bars;
(4) Taverns;
(5) Motels;
(6) Bed and breakfasts;
(7) Nonprofit arts organizations;
(8) Public houses;
(9) Grocery stores;
(10) Beer/wine specialty shops; and
(11) Beer/wine gift delivery shops.
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The following definitions are to clarify the purpose and intent of the rules and laws governing liquor licenses and permits. Additional definitions can be found in RCW 66.04.010.
(1) "Banquet room" means any room used primarily for the sale and service of food and liquor to private groups.
(2) "Customer service area" means areas where food and/or liquor are normally sold and served to the public, i.e., lounges and dining areas. A banquet room is not considered a customer service area.
(3) "Dedicated dining area." In order for an area to qualify as a dedicated dining area, it must be a distinct portion of a restaurant that is used primarily for the sale, service, and consumption of food, and have accommodations for eating, e.g., tables, chairs, booths, etc.
(a) Dance floors will not be considered part of a restaurant's dedicated dining area.
(b) Counters with customer seating on one side and food and beverage service on the other side are allowed in a dedicated dining area, as long as the required food service is available to patrons sitting at the counter.
(4) "Liquor" means beer, wine, or spirits (per RCW 66.04.010(19) - Definitions).
(5) "Lounge" means the portion of a restaurant used primarily for the preparation, sale, and service of liquor. Persons under twenty-one years of age are not allowed in a lounge (see RCW 66.44.316 for information on employees and professional musicians under twenty-one years of age).
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(1) Per 66.24.400, this license allows a restaurant to:
(a) Serve spirits by the individual serving for on-premises consumption;
(b) Serve beer by the opened bottle or can or by tap for on-premises consumption; and
(c) Serve wine by the individual serving for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked wine from the premises).
(2) This license prohibits licensees from selling alcohol for off-premises consumption.
(3) All applicants for a spirits, beer, and wine license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant. The term "bona fide restaurant" is defined in RCW 66.24.410(2).
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(1) Per RCW 66.24.420, the annual fee for a spirits, beer, and wine restaurant license is graduated, as follows:
| Amount of customer service area dedicated to dining | Annual fee |
| 100% | $1,000 |
| 50 - 99% | $1,600 |
| Less than 50% | $2,000 |
(3) A duplicate license is required in order to sell liquor from more than one site on your property. These sites must be located on the same property and owned by the same licensee. The following types of businesses may apply for a duplicate license:
| Type of Business | Annual fee per duplicate license |
| Airport terminal | 25% of annual license fee |
| Civic center (such as a convention center) | $10 |
| Privately owned facility open to the public | $20 |
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(1) Per RCW 66.24.410(2), the restaurant must serve complete meals. Fry orders and such food as sandwiches, hamburgers, and salads do not qualify as complete meals.
(2) The complete meals must be prepared on the restaurant premises.
(3) The restaurant must maintain the kitchen equipment necessary to prepare the complete meals.
(4) A chef or cook must be on duty while complete meals are offered.
(5) A menu must be available to customers that lists, at a minimum, the complete meals.
(6) The food items required to maintain the menu must be on the restaurant premises. These items must be edible.
(7) Restaurants that have one hundred percent dedicated dining area must maintain complete meal service any time liquor is available for sale, service, or consumption.
(8) Restaurants with less than one hundred percent dedicated dining area (restaurants in the one thousand six hundred dollar or two thousand dollar fee category) must maintain complete meal service for a minimum of five hours a day on any day liquor is served.
(a) Minimum food service, such as sandwiches, hamburgers, or fry orders, must be available outside of these hours.
(b) Snacks such as peanuts, popcorn, and chips do not qualify as minimum food service.
(9) The hours of complete meal service must be conspicuously posted on the premises or listed on the menu. If applicable, a statement that minimum food service is available outside of those hours must also be posted or listed on the menu.
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(1) When applying for a license, a spirits, beer, and wine restaurant license applicant may indicate that he/she wishes to exclude persons under twenty-one years of age from the entire premises. The applicant must:
(a) Pay the appropriate annual license fee, as outlined in WAC 314-02-020; and
(b) Meet all other requirements of this license, including the food service requirements outlined in WAC 314-02-035.
(2) Restaurants that have less than fifteen percent of their total customer service area dedicated to dining must exclude persons under twenty-one years of age from the entire premises. The licensee must:
(a) Pay the two thousand dollars annual license fee; and
(b) Meet all other requirements of this license, including the food service requirements outlined in WAC 314-02-035.
(3) See WAC 314-16-025 regarding requirements for "minors prohibited" signage.
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(1) RCW 66.24.400 allows a spirits, beer, and wine restaurant in a hotel or club with overnight sleeping accommodations to sell liquor by the bottle to registered guests. The hotel or club must be licensed as a "transient accommodation" under chapter 70.62 RCW.
(a) The licensee must verify that the person purchasing the liquor is a registered guest who is at least twenty-one years of age.
(b) The bottle of liquor may be consumed only in a guest, hospitality, or banquet room.
(c) Guests may remove any unused portion of the bottle of liquor from the premises.
(2) A spirits, beer, and wine restaurant in a hotel or club with overnight sleeping accommodations may sell liquor from honor bars, under the definitions and guidelines in WAC 314-02-075.
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(1) Per RCW 66.24.320, this license allows a restaurant to:
| Privilege | Annual fee |
| (a) Serve beer by the opened bottle or can or by tap for on-premises consumption. | $200 |
| (b) Serve wine by the individual serving for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked wine from the premises). | $200 |
| (c) Sell beer and/or wine in the original, unopened containers for off-premises consumption. | $120 |
| (d) Sell tap beer for off-premises consumption in a sanitary container holding less than four gallons of beer, and brought to the premises by the purchaser. | In conjunction with off-premises privilege outlined in subsection (c). |
| (e) Sell beer in kegs or other containers holding at least four gallons of beer (see WAC 314-02-110 regarding the requirements for registering kegs). | In conjunction with off-premises privilege outlined in subsection (c). |
(2) All applicants for a beer and/or wine restaurant license must establish, to the satisfaction of the board, that the premises will operate as a bona fide restaurant, as defined in RCW 66.04.010(29).
(3) If a beer and/or wine restaurant's dedicated dining area comprises less than fifteen percent of the total customer service area, the premises must maintain a tavern license (see WAC 314-02-065 regarding the tavern license).
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(1) Licensees are responsible to establish identifiable barriers around areas that are restricted from persons under twenty-one years of age in such a way as to reasonably prevent unauthorized persons from entering the areas. "Minor prohibited" signs, as required by WAC 314-16-025, must be posted at each entrance to such areas.
(2) The applicant must provide two copies of a detailed drawing of the entire premises to be licensed, to the board's licensing and regulation division. The drawing must:
(a) Be drawn one foot to one-quarter-inch scale;
(b) Have all rooms labeled according to their use; e.g., dining room, lounge, game room, kitchen, etc.; and
(c) Have all barriers labeled in a descriptive way; e.g., "full wall," "half wall," etc.
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(1) If a spirits, beer, and wine restaurant or a beer and/or wine restaurant licensee wishes to change the primary use of a dedicated dining area from the sale and service of food, the licensee must request board approval to reclassify the dining area to a lounge, thus having no persons under twenty-one years of age present (see WAC 314-02-125(1) for instructions on reclassifying a dining area).
(2) To make this change the, licensee must meet all other requirements of the license, including the food service requirements outlined in WAC 314-02-025.
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(1) Per RCW 66.24.420(6) and 66.24.320(2), a spirits, beer, and wine restaurant and a beer and/or wine restaurant applicant or licensee may apply for a caterer's endorsement, in order to extend the on-premises license privilege to allow the sale and service of liquor at approved locations other than the licensed premises.
(2) The fee for this endorsement is three hundred fifty dollars a year.
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(1) Per RCW 66.24.350, a snack bar license allows a licensee to serve beer by the unopened bottle or can for on-premises consumption only.
(2) Snack bar licensees must have food available whenever beer is sold or served.
(3) The annual fee for this license is one hundred twenty-five dollars.
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(1) Per RCW 66.24.330, this license allows a tavern to:
| Privilege | Annual fee |
| (a) Serve beer by the opened bottle or can or by tap for on-premises consumption. | $200 |
| (b) Serve wine by the individual serving for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked wine from the premises). | $200 |
| (c) Sell beer and/or wine in the original, unopened containers for off-premises consumption. | $120 |
| (d) Sell tap beer for off-premises consumption in a sanitary container holding less than four gallons of beer, and brought to the premises by the purchaser. | In conjunction with off-premises privilege outlined in subsection (c). |
| (e) Sell beer in kegs or other containers holding at least four gallons of beer (see WAC 314-02-110 regarding the requirements for registering kegs). | In conjunction with off-premises privilege outlined in subsection (c). |
(2) A tavern licensee may not allow persons under twenty-one years of age on the premises at any time (see RCW 66.44.316 for information regarding employees and professional musicians under twenty-one years of age).
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(1) Per RCW 66.24.540, a motel license allows a motel to:
(a) Sell liquor in locked honor bars in no more than one-half of its guest rooms, provided that:
(i) Rooms are rented to guests, at a minimum, on a daily rental basis; and
(ii) Each honor bar also contains snack food; and
(b) Provide beer and wine by the individual serving to overnight guests of the motel, without additional charge, for on-premises consumption at a specified regular date, time, and place (such as a hospitality room). Patrons may not self-serve during these functions.
(2) The motel must be licensed as a "transient accommodation" per chapter 70.62 RCW.
(3) The annual fee for this license is five hundred dollars.
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For the purposes of this chapter, an "honor bar" is a cabinet, box, cooler, or refrigerator in a guest room that can be opened only with a key, combination, magnetic card, or similar devise. The following requirements apply to the use of an honor bar:
(1) The licensee must require proof of age before providing a guest access to an honor bar. The guest must sign a declaration, under penalty of perjury, verifying that:
(a) The guest is twenty-one years of age or older; and
(b) No one under twenty-one years of age will have access to the liquor in the honor bar.
(2) The honor bars must remain locked whenever the room is rented to a guest under twenty-one years of age.
(3) All liquor stored on the licensed premises must be either locked in an honor bar or locked in a secured liquor storage room.
(4) No person under twenty-one years of age may have access to the honor bars, liquor storage rooms, or keys, combinations, etc., to the locked honor bars or storage rooms.
(5) A honor bar or storage room may only be replenished during those hours when liquor may legally be sold (not between 2:00 a.m. and 6:00 a.m.), and only by employees who are twenty-one years of age or older. Beer and wine wholesalers may deliver, price, and stock product only in storage rooms.
(6) Liquor in honor bars may only be sold in individual containers in the following sizes:
(a) Spirits - not to exceed fifty milliliters;
(b) Beer - not to exceed twelve ounces; and
(c) Wine - not to exceed one hundred eighty-seven milliliters.
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(1) Per RCW 66.20.010(11), this permit allows a bed and breakfast lodging facility to serve beer or wine without charge to overnight guests, for consumption on the premises.
(2) RCW 66.20.010(11) defines a "bed and breakfast" as a hotel or similar facility offering from one to eight lodging units and breakfast to travelers or guests.
(3) The annual fee for this permit is seventy-five dollars.
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(1) Per RCW 66.24.495, this license allows a bona fide nonprofit organization to sell beer, wine, and spirits by the individual serving in conjunction with artistic or cultural exhibitions or performances.
(2) The nonprofit organization must be organized and operated for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs for viewing by the general public. See RCW 66.24.495(2) for specific organizational requirements.
(3) The fee for this license is two hundred fifty dollars a year.
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(1) Per RCW 66.24.580, a public house licensee is allowed to:
(a) Manufacture between two hundred fifty gallons and two thousand four hundred barrels of beer on the premises;
(b) Serve beer by the opened bottle or can or by tap for on-premises consumption; and
(c) Serve wine by the individual serving for on-premises consumption (see RCW 66.24.320 regarding patrons removing recorked wine from the premises).
(2) The annual fee for this license is one thousand dollars.
(3) If a public house licensee wishes to allow persons under twenty-one years of age on the premises, the licensee must meet the requirements of a beer and/or wine restaurant license, per WAC 314-02-040 and 314-02-045.
(4) Public house licensees may apply for a spirits, beer, and wine restaurant license, in order to sell spirits by the individual serving for on-premises consumption (see WAC 314-02-015).
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(1) Per RCW 66.24.360, a grocery store license allows a licensee to sell beer and/or wine for off-premises consumption.
(2) The annual fee for this license is one hundred fifty dollars.
(3) In order to obtain and maintain a grocery store license, the premises must be stocked with an inventory of at least three thousand dollars wholesale value of food for human consumption, not including soft drinks, beer, or wine. This minimum inventory must:
(a) Be stocked within the confines of the licensed premises; and
(b) Be maintained at the premises at all times the business is licensed, with the exception of:
(i) The beginning and closing inventory for seasonal operations; or
(ii) When the inventory is being sold out immediately prior to discontinuing or selling the business.
(4) A grocery store licensee may sell beer in kegs or other containers holding at least four gallons and less than five and one-half gallons of beer. See WAC 314-02-110 regarding keg registration requirements.
(5) A grocery store applicant or licensee may apply for an international exporter endorsement for five hundred dollars a year, which allows the sale of beer and wine to locations outside the United States.
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(1) Per RCW 66.24.371, a beer and/or wine specialty store license allows a licensee to sell beer and/or wine for off-premises consumption.
(2) The annual fee for this license is one hundred dollars.
(3) The following requirements must be met to obtain and maintain a beer and/or wine specialty store license:
(a) The premises must be stocked with an inventory of beer and/or wine in excess of three thousand dollars wholesale value. This inventory must be:
(i) Stocked within the confines of the licensed premises; and
(ii) Maintained on the premises at all times the premises is licensed, with the exception of beginning and closing inventory for seasonal operations or when the inventory is being sold out immediately prior to discontinuing or selling the business.
(b) The primary business must be the sale of beer and/or wine at retail. A licensee's gross retail sales of beer and/or wine must exceed fifty percent of all gross sales for the entire business.
(4) A beer and/or wine specialty store licensee may allow customers to sample beer and wine for the purpose of sales promotion, under the following conditions:
(a) Each sample must be two ounces or less;
(b) No more than four samples may be provided to a customer during any one visit to the premises; and
(c) No more than one sample of any single brand and type of beer or wine may be provided to a customer during any one visit to the premises.
(5) A beer and/or wine specialty store licensee may sell beer in kegs or other containers holding at least four gallons and less than five and one-half gallons of beer. See WAC 314-02-110 regarding keg registration requirements.
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(1) Per RCW 66.24.550, a beer and/or wine gift delivery license allows a business that is primarily engaged in the retail sale of gifts or flowers to deliver beer and/or wine in bottles or original packages. The beer or wine must be delivered in conjunction with the gifts or flowers.
(2) The annual fee for this license is seventy-five dollars.
(3) An applicant must meet the following requirements to obtain and maintain a beer and/or wine gift delivery license:
(a) The business must be primarily engaged in the retail sale of gifts or flowers. In order to determine that the business meets this qualification, the board may inspect an applicant's or licensee's inventory, sales figures, and business records.
(b) A beer and/or wine gift delivery licensee may not hold any other class of liquor license.
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Per RCW 66.28.200 and 66.28.210, any licensee who sells beer for off-premises consumption in kegs or other containers holding four or more gallons of beer must:
(1) Require the purchaser to provide at least one piece of identification (see RCW 66.16.040 for acceptable forms of identification); and
(2) The licensee or employee and purchaser must fill out a keg registration form, provided by the board, which contains:
(a) The name and address of the purchaser;
(b) The type and number of the identification presented by the purchaser;
(c) The address where the beer will be consumed and the date on which it will be consumed; and
(d) A sworn statement, signed by the purchaser under penalty of perjury, that the purchaser:
(i) Is at least twenty-one years of age;
(ii) Will not allow persons under twenty-one years of age to consume the beer purchased;
(iii) Will not remove or obliterate the keg registration form affixed to the keg or allow it to be removed or obliterated; and
(iv) The address listed in (c) of this subsection is the true and correct address at which the beer will be consumed or physically located.
(3) It is the licensee's or employee's responsibility to distribute the properly completed keg registration form as follows:
(a) One copy to the purchaser;
(b) One copy affixed to the keg or container holding four gallons or more of beer, prior to it leaving the licensed premises; and
(c) One copy must be retained on the licensed premises for one year, available for inspection and copying by any law enforcement officer.
(4) Possession of a keg or other container which holds four gallons or more of beer without a properly completed keg registration form affixed to it, other than on the licensee's premises, will be a violation of this title.
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(1) The board will provide keg registration forms free-of-charge to licensees who hold a beer restaurant or tavern license in combination with an off-premises beer and/or wine license.
(2) Licensees who hold only an off-premises beer and wine license must purchase the keg registration forms from their local board enforcement office for four dollars per book of twenty-five forms.
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Liquor licensees must notify their local enforcement office in writing at least forty-eight hours before conducting the following activities:
(1) Male/female dance reviews, subject to the provisions of WAC 314-16-125;
(2) Live boxing or wrestling;
(3) Contests with patron participation; and
(4) Hours of operation in between 2:00 a.m. and 6:00 a.m. for licensees that sell liquor for on-premises consumption.
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The following changes to a licensed premises require prior board approval, by submitting a form provided by the board's licensing and regulation division:
| Type of alteration | Approval process and timeline | |
| (1) | ||
| • | reclassifying a dining area to a lounge; | (a) The board's licensing and regulation division will respond to the request for alteration within five business days. |
| • | reclassifying a lounge as open to persons under twenty-one years of age; | (b) The licensee may begin liquor service in conjunction with the alteration as soon as approval is received. |
| • | extending the location of alcohol service, such as a beer garden or patio/deck service (areas must be enclosed with a barrier a minimum of forty-two inches in height); | (c) Board approval will be based on the alteration meeting the requirements outlined in this title. |
| • | storing liquor off of the licensed premises; | |
| • | initiating room service in a hotel or motel when the restaurant is not connected to the hotel or motel; | |
| • | installing a pass-through window for walk-up customers; and | |
| • | using a licensed premises as an access to another business. | |
| (2) | ||
| • | any alteration that affects the total size of a premises; and | (a) The board's licensing and regulation division will respond to the licensee's request for alteration within five business days. |
| • | any alteration that affects the size of a dedicated dining area or lounge. | (b) The licensee must contact their local liquor control agent when the alteration is completed. |
| (c) The licensee may begin liquor service in conjunction with the alteration after the completed alteration is inspected by the liquor control agent. | ||
| (d) Board approval will be based on the alteration meeting the requirements outlined in this title. | ||
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