Domestic brewery's license—Fee.
(1)(a) There shall be a license for domestic breweries; fee to be two thousand dollars for production of sixty thousand barrels or more of malt liquor per year.
(b) The annual fee in (a) of this subsection is waived during the 12-month period beginning with the second calendar month after February 28, 2021, for:
(i) Licenses that expire during the 12-month waiver period under this subsection (1)(b); and
(ii) Licenses issued to persons previously licensed under this section at any time during the 12-month period prior to the 12-month waiver period under this subsection (1)(b).
(c) The waiver in (b) of this subsection does not apply to any licensee that:
(i) Had their license suspended by the board for health and safety violations of state COVID-19 guidelines; or
(ii) Received an order of immediate restraint or citation from the department of labor and industries for allowing an employee to perform work where business activity was prohibited in violation of an emergency proclamation of the governor under RCW 43.06.220.
(d) Upon request of the department of revenue, the board and the department of labor and industries must both provide a list of persons that they have determined to be ineligible for a fee waiver under (b) of this subsection for the reasons described in (c) of this subsection. Unless otherwise agreed, any list must be received by the department of revenue no later than 15 calendar days after the request is made.
(2) Any domestic brewery, except for a brand owner of malt beverages under RCW 66.04.010(7), licensed under this section may also act as a distributor and/or retailer for beer of its own production. Any domestic brewery operating as a distributor and/or retailer under this subsection shall comply with the applicable laws and rules relating to distributors and/or retailers. A domestic brewery holding a spirits, beer, and wine restaurant license may sell beer of its own production for off-premises consumption from its restaurant premises in kegs or in a sanitary container brought to the premises by the purchaser or furnished by the licensee and filled at the tap by the licensee at the time of sale.
(3) Any domestic brewery licensed under this section may also sell beer produced by another domestic brewery or a microbrewery for on and off-premises consumption from its premises as long as the other breweries' brands do not exceed twenty-five percent of the domestic brewery's on-tap offering of its own brands.
(4) A domestic brewery may hold up to four retail licenses to operate an on or off-premises tavern, beer and/or wine restaurant, spirits, beer, and wine restaurant, or any combination thereof. This retail license is separate from the brewery license. A brewery that holds a tavern license, a spirits, beer, and wine restaurant license, or a beer and/or wine restaurant license shall hold the same privileges and endorsements as permitted under RCW 66.24.320, 66.24.330, and 66.24.420.
(5) Any domestic brewery licensed under this section may contract-produce beer for a brand owner of malt beverages defined under RCW 66.04.010(7), and this contract-production is not a sale for the purposes of RCW 66.28.170 and 66.28.180.
(6)(a) A domestic brewery licensed under this section and qualified for a reduced rate of taxation pursuant to RCW 66.24.290(3)(b) may apply to the board for an endorsement to sell bottled beer of its own production at retail for off-premises consumption at a qualifying farmers market. The annual fee for this endorsement is seventy-five dollars.
(b) For each month during which a domestic brewery will sell beer at a qualifying farmers market, the domestic brewery must provide the board or its designee a list of the dates, times, and locations at which bottled beer may be offered for sale. This list must be received by the board before the domestic brewery may offer beer for sale at a qualifying farmers market.
(c) The beer sold at qualifying farmers markets must be produced in Washington.
(d) Each approved location in a qualifying farmers market is deemed to be part of the domestic brewery license for the purpose of this title. The approved locations under an endorsement granted under this subsection do not include the tasting or sampling privilege of a domestic brewery. The domestic brewery may not store beer at a farmers market beyond the hours that the domestic brewery offers bottled beer for sale. The domestic brewery may not act as a distributor from a farmers market location.
(e) Before a domestic brewery may sell bottled beer at a qualifying farmers market, the farmers market must apply to the board for authorization for any domestic brewery with an endorsement approved under this subsection to sell bottled beer at retail at the farmers market. This application shall include, at a minimum: (i) A map of the farmers market showing all booths, stalls, or other designated locations at which an approved domestic brewery may sell bottled beer; and (ii) the name and contact information for the on-site market managers who may be contacted by the board or its designee to verify the locations at which bottled beer may be sold. Before authorizing a qualifying farmers market to allow an approved domestic brewery to sell bottled beer at retail at its farmers market location, the board shall notify the persons or entities of such application for authorization pursuant to RCW 66.24.010 (8) and (9). An authorization granted under this subsection (6)(e) may be withdrawn by the board for any violation of this title or any rules adopted under this title.
(f) The board may adopt rules establishing the application and approval process under this section and such additional rules as may be necessary to implement this section.
(g) For the purposes of this subsection:
(i) "Qualifying farmers market" means an entity that sponsors a regular assembly of vendors at a defined location for the purpose of promoting the sale of agricultural products grown or produced in this state directly to the consumer under conditions that meet the following minimum requirements:
(A) There are at least five participating vendors who are farmers selling their own agricultural products;
(B) The total combined gross annual sales of vendors who are farmers exceeds the total combined gross annual sales of vendors who are processors or resellers;
(C) The total combined gross annual sales of vendors who are farmers, processors, or resellers exceeds the total combined gross annual sales of vendors who are not farmers, processors, or resellers;
(D) The sale of imported items and secondhand items by any vendor is prohibited; and
(E) No vendor is a franchisee.
(ii) "Farmer" means a natural person who sells, with or without processing, agricultural products that he or she raises on land he or she owns or leases in this state or in another state's county that borders this state.
(iii) "Processor" means a natural person who sells processed food that he or she has personally prepared on land he or she owns or leases in this state or in another state's county that borders this state.
(iv) "Reseller" means a natural person who buys agricultural products from a farmer and resells the products directly to the consumer.
(7) The state board of health shall adopt rules to allow dogs on the premises of licensed domestic breweries that do not provide food service subject to a food service permit requirement.
[ 2021 c 6 s 4; (2022 c 116 s 10 expired December 31, 2023); 2020 c 230 s 1. Prior: 2011 c 195 s 6; 2011 c 119 s 212; 2008 c 41 s 7; (2008 c 41 s 6 expired June 30, 2008); 2007 c 370 s 7; (2007 c 370 s 6 expired June 30, 2008); prior: 2006 c 302 s 2; 2006 c 44 s 1; 2003 c 154 s 1; 2000 c 142 s 2; 1997 c 321 s 11; 1985 c 226 s 1; 1982 c 85 s 5; 1981 1st ex.s. c 5 s 13; 1937 c 217 s 1 (23B) (adding new section 23-B to 1933 ex.s. c 62); RRS s 7306-23B.]
NOTES:
Expiration date—2022 c 116 ss 2-20: See note following RCW 66.24.420.
Effective date—Finding—Intent—2022 c 116: See notes following RCW 66.24.420.
Effective date—2021 c 6: See note following RCW 66.24.140.
Effective date—2008 c 41 ss 7 and 9: "Sections 7 and 9 of this act take effect June 30, 2008." [ 2008 c 41 s 15.]
Expiration date—2008 c 41 ss 6 and 8: "Sections 6 and 8 of this act expire June 30, 2008." [ 2008 c 41 s 14.]
Effective date—2007 c 370 ss 5 and 7: See note following RCW 66.24.244.
Expiration date—2007 c 370 ss 4 and 6: See note following RCW 66.24.244.
Effective date—2006 c 302: See note following RCW 66.24.170.
Effective date—1997 c 321: See note following RCW 66.24.010.
Effective date—1981 1st ex.s. c 5: See RCW 66.98.100.