Note: If you are having trouble viewing this newsletter please update your browser to the latest version.
Licensing
Participates in Results Washington’s Design Challenge
The Licensing Division recently participated in Results Washington’s
Agency Design Challenge to improve our liquor licensing process. The Design Challenge focuses on
human-centered design principles. Our
goal was to engage recent licensees to learn how we can improve our applicant’s
experiences and make the licensing process easier to navigate. After
interviewing licensees and stakeholders in October, the Licensing team began
developing tools for a more responsive licensing process.
We are working on:
- A starter’s guide for new business owners
- Explanatory videos
- Increased outreach opportunities for direct contact with licensees and applicants
We want to thank those of you who
participated in our interviews. You provided helpful feedback that
guided us to our next steps. The Licensing Division will be working with stakeholders
to develop these concepts in 2020 – look for updates in upcoming newsletters!
Special Occasions Season Is Coming
Are you starting to take reservations for the upcoming busy
non-profit season? Do you have questions about what non-profits can and cannot
do with alcohol and a special occasion license?
Please see
the Frequently Asked Questions (FAQ) on our
website, or call 360-664-1600 (option 1).
Time to Plan for Outside Summer Seating
During the cold, rainy months it's hard to imagine that
spring and summer are right around the corner. We want to help you prepare for
outside seating before the season starts. Find out what you need to do now so you'll be ready.
To make sure you have all your approvals ready, contact our alterations
staff or submit your alterations application (you can find it on our website
under added activities) to liquoralterations@lcb.wa.gov.
If you have questions, please call 360-664-1600 (option 1).
Common Liquor License Questions
The Licensing staff want to help you stay in compliance with
liquor laws. We often get the following
questions and want to provide some clarity to you about license requirements.
Do I need an agent’s license?
If you are a brewery, distillery, distributor, importer or U.S. certificate of approval holder, you and any employees who sell alcohol need an agent’s license on file with the Board. There are two exceptions:
If you are a brewery, distillery, distributor, importer or U.S. certificate of approval holder, you and any employees who sell alcohol need an agent’s license on file with the Board. There are two exceptions:
- If
you are licensed as a sole proprietor, you are not required to have an
agent’s license. Only the employees who are involved in sales need
to have one on file with the Board.
- If
you are licensed as a winery in Washington, you and your employees do not
need an agent’s license. However, any third-party contractor that
sells for you is required to have licenses on file for their
employees.
You can find more information on the agent’s license here. If you have questions about whether or not
you need an agent’s license, please e-mail us at NonRetailLiquorLicensing@lcb.wa.gov.
How do I report changes in my business ownership? We know that things are constantly changing in the business
world. As you make changes to your
business ownership, you need prior approval from the LCB. Types of changes include:
- The
sale or purchase of interest in the business that totals more than 10%.
- The
addition or removal of a corporate officer, partner, or LLC manager.
Please apply for these changes before you make them. The application is on the Department of
Revenue’s Business Licensing Services website. Fill out the online “Change in Governing People,
Percentage Owned and/or Stock/Unit Ownership” application and submit
the $75 fee.
Once we receive the application, a licensing specialist will
contact you and walk you through the process. If you have questions, please send us an email at retailliquorlicensing@lcb.wa.gov.
Alcohol Rules Update
Several
rulemakings are underway, and are detailed below. As always, LCB encourages your
participation in the rulemaking process and values your input. You can find
information about current rulemaking under Laws and Rules on the LCB website. Additional materials related to rulemaking items discussed at Board
meetings can be found at the Board
Meeting Schedule and Information page.
Barriers
and Demarcation Options for Restaurants
The Board adopted rules on January 22, 2020 revising WAC 314-02-025, WAC 314-02-033, and WAC 314-03-200. The revisions outline several demarcation options available for beer and wine restaurants, and spirits, beer, and wine restaurants to designate areas classified as off-limits to minors. The revisions also:
The Board adopted rules on January 22, 2020 revising WAC 314-02-025, WAC 314-02-033, and WAC 314-03-200. The revisions outline several demarcation options available for beer and wine restaurants, and spirits, beer, and wine restaurants to designate areas classified as off-limits to minors. The revisions also:
- Clarify that floor plans and demarcation options must
be approved by the Board;
- Specifically exclude tape, paint, or stickers on
floors, walls, or ceilings as demarcation options;
- Update requirements for “minor prohibited” signs to
include the requirements that signage be visible to patrons who are
approaching the off-limits areas, and signs inside the off-limits
area;
- Allow licensees to request reclassification of their
off-limits areas as "open to minors" for regularly scheduled or special
events with prior Board approval (reclassification requests are considered
an alteration to a licensed premises under WAC 314-03-300);
- Change references to demarcation(s) instead of
barrier(s);
- Correct an error in WAC 314-03-200 referencing that
demarcations must be placed no more than 10 feet apart (for outside
sidewalk café service under (6)(c)); and
- Make technical and clarifying changes.
If licensees want to change floor
plans or reclassify areas off-limits to minors, all floor plan changes and
requests for reclassification must be pre-approved by the Board’s licensing
division before implementing the change.
The adopted
rules are effective February 22, 2020.
View the adopted rules and the Concise Explanatory Statement here.
Spirits
Distributor Licensing Fees
The Board adopted rules on October 2, 2019 with a delayed effective date of January 1, 2020 to address the requirement in RCW 66.24.055 that retailers pay distributor fees on sales of spirits for resale when no prior distributor fee has been paid. Revisions were made to WAC 314-02-106, WAC 314-28-070, and eight sections of chapter 314-23 WAC. The revisions:
The Board adopted rules on October 2, 2019 with a delayed effective date of January 1, 2020 to address the requirement in RCW 66.24.055 that retailers pay distributor fees on sales of spirits for resale when no prior distributor fee has been paid. Revisions were made to WAC 314-02-106, WAC 314-28-070, and eight sections of chapter 314-23 WAC. The revisions:
- Clarify who is required to pay spirits distributor license fees as a result of a 2017 Court of Appeals Opinion; and
- Require that retailers selling spirits for resale must pay the spirits distributor license fee when no other distributor license fee has been paid.
2019 Legislation Implementation–
Substitute House Bill (SHB) 1034, House Bill (HB) 1672, and Senate Bill (SB) 5909
The Board held a public hearing on January 22, 2020 regarding implementation of three bills that passed during the 2019 legislative session.
The Board held a public hearing on January 22, 2020 regarding implementation of three bills that passed during the 2019 legislative session.
Substitute
House Bill (SHB) 1034 created an endorsement that allows spirits, beer, and
wine restaurants to serve bottles of soju for on-premises consumption to tables
of two or more customers. The new law also allows restaurants to recap soju
bottles and for customers to remove recapped soju bottles from the premises. WAC
314-02-015 was revised to allow service of soju by the bottle.
- SHB 1034 also required the Board to develop a "responsible sale and service of soju" training curriculum for individuals serving soju. The curriculum is available on the WSLCB’s website. The training curriculum and information related to the soju endorsement are also on the WSLCB’s website in the Korean language.
House Bill
1672 allows spirits, beer, and wine restaurants and beer and wine restaurants
to recap sake bought for consumption with a meal. The new law also allows
patrons to remove recapped sake from the premises. WAC 314-02-015 and WAC
314-02-045 were revised to allow recapping and removal of sake.
Senate Bill
5909 allows manufacturers licensed under RCW 66.24.150 to contract with
distilleries, breweries, and wineries to provide packaging services. WAC
314-30-010 was revised to include packaging and added a reference to the
packaging provisions outlined in statute.
Additional
technical and clarifying changes were made to all revised sections of WAC, and
unnecessary language in WAC 314-30-010 was removed.
The Board
anticipates adoption of these rules revisions in early 2020.
Special Occasion Licenses – Rules Review
The Board held a public hearing on January 8, 2020 regarding proposed revisions to chapter 314-05 WAC. The proposed revisions:
The Board held a public hearing on January 8, 2020 regarding proposed revisions to chapter 314-05 WAC. The proposed revisions:
- Remove unnecessary and outdated language;
- Make technical and clarifying changes;
- Clarify that a special occasion license is a retail
license;
- Update application requirements and add information
from the online application;
- Make updates to guidelines for special occasion
events to provide clarity for applicants, licensees, and industry members;
and
- Add statutory references and information from
chapter 314-52 WAC (Advertising) to clarify requirements for alcohol and
monetary donations, advertising, ticket, and alcohol sales, and payment
information.
Written comments and comments received at the public hearing are currently
being reviewed and considered.
2019 Legislation – Engrossed House Bill
(EHB) 1563 and Chapter Review
A CR-101 was filed on May 29, 2019 to implement EHB 1563 that passed during the 2019 legislative session. Chapter 314-38 WAC will be amended to implement this legislation and review additional language in the chapter for relevance, clarity, and accuracy. EHB 1563 permits students eighteen to twenty years old to taste alcoholic beverages while on the premises of the college or university at which the student is enrolled or while on a field trip to a grape-growing area or production facility.
A CR-101 was filed on May 29, 2019 to implement EHB 1563 that passed during the 2019 legislative session. Chapter 314-38 WAC will be amended to implement this legislation and review additional language in the chapter for relevance, clarity, and accuracy. EHB 1563 permits students eighteen to twenty years old to taste alcoholic beverages while on the premises of the college or university at which the student is enrolled or while on a field trip to a grape-growing area or production facility.
A CR-102 and proposed rules will be
filed in early 2020, which will set a public hearing date and open the formal
comment period.
Alternating Proprietorships for Distilleries and Craft Distilleries
A CR-101 was filed November 13, 2019 to
consider adding language to chapter 314-28 WAC regarding alternating
proprietorships for distilleries and craft distilleries. The Board adopted
Board Interim Policy BIP-16-2019 until the rules are proposed (CR-102) and
adopted (CR-103).
A CR-102 and proposed rules will be
filed in early 2020, which will set a public hearing date and open the formal
comment period.
Breweries
and Wineries
A CR-101 was issued on February 21, 2018, to initiate the rulemaking process to review, update, and provide clarification for brewery and winery rules, chapters 314-20 and 314-24 WAC. The rulemaking will also address alternating proprietorships, bulk storage of wine, and internet sales. Rules are currently being reviewed and revised.
A CR-101 was issued on February 21, 2018, to initiate the rulemaking process to review, update, and provide clarification for brewery and winery rules, chapters 314-20 and 314-24 WAC. The rulemaking will also address alternating proprietorships, bulk storage of wine, and internet sales. Rules are currently being reviewed and revised.
How can you
participate in the rulemaking process? Visit Laws
and Rules on the LCB website and submit comments
to rules@lcb.wa.gov.
Rulemaking activity occurs at Board meetings. Find Board agendas and
meeting materials at Board
Meeting Schedule and Information.
Are You Ready for 2020 Age-restricted Product Changes?
Contributed by Lieutenant Reynolds, LCB Spokane Enforcement
On March
27, 2019, with a bipartisan vote of 33-12 in the Washington State Senate, the
Washington State Legislature passed legislation to raise the age for sales of tobacco
and vapor products to 21+. The
legislation went into effect on Jan. 1, 2020.
These changes primarily impact “off-premises” grocery and
convenience store license holders that sell tobacco and vapor products.
Sales
clerks are the first line of defense in preventing underage sales of
restricted products to minors. Off-premises
employees are not required to have training on checking identification,
as is required for “on-premises” (bar and restaurant) employees who serve
alcohol, and therefore may not have any experience in how to check
identification to determine if a person is old enough to purchase age-restricted products - alcohol,
tobacco, or vapor products.
To prevent sales of restricted products to minors, the wise
manager will ensure their new employees receive training on checking
identification on or before their first day of employment. This
training may be used as a refresher for existing staff. The LCB provides free, Age Restricted Product Sales Training 24/7/365 days a year on
our website.
Updated Tobacco and Liquor Year-to-Date signs are available
in English, Spanish, and Korean.
Updated Vapor and Liquor product age warning signs are also
available.
If you have questions after viewing the Age Restricted Product Sales Training,
please contact your local Enforcement Officer or office.
Independent Enforcement Review
A message from Director Garza
The 2019 legislative session
included legislation (SB
5318) that strongly emphasized the LCB’s focus to be on compliance
and education rather than just enforcement when overseeing the regulated cannabis
marketplace. Following the 2019 legislative session, the LCB hired an
independent, respected organization - Hillard Heintze (HH) to review and report on
all aspects of our Enforcement Division’s operations, organizational structure,
and management.
Without direct involvement
from LCB staff, HH led: interviews with industry members, interviews with
cannabis and alcohol trade organizations, forums on each side of the state and
interviews with a handful of agency staff. Last week, HH released its final
report that included 18 recommendations. There were three themes
that emerged in the HH recommendations:
- Interpretations of agency decisions (rules, policies, etc.) are inconsistently communicated and applied not only within the agency but with the regulated community as well.
- A lack of transparency and understanding by stakeholders exists about agency decisions and interpretations; and
- Stronger outreach, communication, education, and collaboration with the industry is needed to help them understand and comply with laws, rules and policy.
The LCB welcomes and accepts the
recommendations in the HH review. In fact, there was nothing in
the report that came as a complete surprise. It affirmed many concerns we’ve
heard previously or were action points already begun or planned for in the near
future. For example, the agency has already taken steps to restructure the
enforcement penalty guidelines, the recent Enforcement Division re-organization
to revise policy/procedures and develop expertise, and the Licensing Division implemented
dozens of collaborative actions in 2019 to increase communication and
effectiveness between the two divisions.
Implementing the Recommendations
The LCB will be adopting many of the
recommendations in the report – starting with those things we can implement
within the first six months. The steps we are taking will impact the agency overall.
We will make changes throughout the agency that will reflect the agency’s
commitment to transparency and fundamental change. Highlights include:
- Revising the agency mission statement revision to reflect our “education” role;
- Revising the enforcement officer’s position description and the division’s policies and procedures to emphasize the importance of outreach and education as well as the approach with licensees in the officer’s work;
- Revising our apparel and firearm policies to reflect our commitment to education;
- Reorganizing the Director’s Office to include a unit that will focus on outreach and education to further education, understanding and compliance within the industries we regulate;
- The Director’s Office will also centralize our policy and rules coordination so that agency decisions can be consistently and clearly articulated with agency and staff and the industry. We are creating a Legal/Policy Team that will be the central source of developing and conveying agency decisions;
- Decisions will be maintained in a central repository that staff and licensees may use to have a reliable, consistent answer going forward;
Thank you for your commitment
to working together. I look forward to
our continued work together in 2020.
Promote public safety and trust through fair administration and enforcement of liquor, cannabis, tobacco, and vapor laws.-WSLCB Mission Statement
Let us know what you think, take this survey.