HB 2204 Emergency Permit Stakeholder Feedback Sessions
Obtain public feedback on draft rule language to implement House Bill 2204. Stakeholder engagement sessions scheduled on September 30 and October 3. Rules Coordinator contact information provided. Timeline of rulemaking project also outlined.
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Presentation Transcript
HB 2204 Emergency Permit Stakeholder Feedback Sessions Monday, September 30, 10 a.m. Noon Thursday, October 3, 1 p.m. 3 p.m. Daniel Jacobs, Policy & Rules Coordinator Daniel.Jacobs@lcb.wa.gov rules@lcb.wa.gov
Objective To obtain public feedback on draft rule language to implement House Bill 2204. For feedback or questions, contact rules@lcb.wa.gov
Notes During the meeting please keep the following in mind: These sessions will be recorded and are subject to public disclosure. The purpose of the recordings is to make sure we collect all feedback, and they will be posted on the Rules webpage. While the Teams chat feature will be ON, any written questions submitted in chat will be saved in the rulemaking file and are subject to public disclosure. Questions and comments in the session s Team chat will not be responded to in real time, but will be addressed at the end of the session. Participants will be muted and will only be unmuted when the session s leader enables their microphone. To ask questions during the sessions, participants must use the raise hand function and they will then be unmuted to ask their question. If you would like to submit questions before, during or after the engagement session, feel free to email the rules team at rules@lcb.wa.gov.
HB 2204 Rulemaking Project Timeline Stage Date June 6, 2024 July 3, 2024 August 14, 2024 House Bill 2204 Effective Date Policy Statement filed as WSR 24-15-002 CR 101 Filed Rulemaking officially begins, filed as WSR 24- 17-049 Stakeholder Engagements September 30, 2024 October 3, 2024 October 23, 2024 October 23 December 4, 2024 Tentative December 4, 2024 December 18, 2024 January 18, 2025 WE ARE HERE Tentative CR 102 Filed Draft Rules Proposed Public Feedback Period on Draft Rules Public Hearing CR 103 Filed Final Rules filed Rules effective Tentative Tentative Tentative
House Bill 2204 new RCW 66.20.010(19) (19) Where the application is for an emergency liquor permit by a licensed manufacturer to authorize the sale, service, and consumption of liquor on the premises of another liquor licensee with retail sales privileges when an emergency or disaster as defined in RCW 38.52.010 has made the premises of the applicant inaccessible and unable to operate due to an emergency or road closure, except that the fee must be waived if there is a proclamation of a state of emergency issued by the governor or by the city, town, or county where the applicant is located. The permit shall be valid for 30 days and may be continually renewed for periods of 30 days if the emergency or disaster continues. Employees or agents of the emergency permit holder or the licensed premises may serve liquor provided by the permit holder. The permit holder may store no more than a 30-day supply of liquor at the licensed premises in segregated storage. No more than a total of three emergency permit holders may sell at the same licensed premises under an emergency permit.
HB 2204 Broken Down Part 1 of 2: RCW 66.20.010 (19) Where the application is for an emergency liquor permit by a licensed manufacturer to authorize the sale, service, and consumption of liquor on the premises of another liquor licensee with retail sales privileges when an emergency or disaster as defined in RCW 38.52.010 has made the premises of the applicant inaccessible and unable to operate due to an emergency or road closure, except that the fee must be waived if there is a proclamation of a state of emergency issued by the governor or by the city, town, or county where the applicant is located.[ ] Permit holders = manufacturers. Host = retail privileges. Emergency or disaster = RCW 38.52.010. Inaccessible and unable to operate. Due to emergency or road closure. Mandatory fee waived if emergency declared
HB 2204 Broken Down Part 2 of 2: RCW 66.20.010 (19) [ ] The permit shall be valid for 30 days and may be continually renewed for periods of 30 days if the emergency or disaster continues. Employees or agents of the emergency permit holder or the licensed premises may serve liquor provided by the permit holder. The permit holder may store no more than a 30-day supply of liquor at the licensed premises in segregated storage. No more than a total of three emergency permit holders may sell at the same licensed premises under an emergency permit. Permit duration 30 days. Permit renewal for 30 days at a time during emergency/disaster. Liquor can be served by either employees/agents of permit holder or host. 30 day liquor supply limit Max 3 permit holders per host premises.
Policy Statement PS24-01, WSR 24-15-002 Issued July 3, 2024, can be found here, and applies until final rules in place. POLICY STATEMENT In accordance with HB 2204, LCB will issue emergency permits allowing holders to share space with another licensee (a host licensee ), with existing retail sales privileges, free of charge, under the following conditions: An emergency or disaster as defined in RCW 38.52.010 is declared making the premises of the applicant inaccessible and unable to operate due to an emergency or road closure. No more than a total of three emergency permit holders may sell at the same host licensee premises under an emergency permit. The emergency permit holder will have only the same privileges as the host licensee. The emergency permit holder s employees must meet the same MAST permit requirements as the host licensee s employees. Any manufacturer co-locating with a retail host licensee must not enter into any agreements outside of this emergency permit allowance that could cause undue influence during the period of the emergency permit or extend to any future preferential treatment for either party
New WAC 314-38-120 Emergency Liquor Permits Proposed new section of WAC 314-38, at WAC 314-38-120 Emergency Liquor Permits Draft can be found here https://lcb.wa.gov/sites/default/files/publications/rules/2024- Proposed-Rules/OTS-5783.3.sh.pdf
WAC 314-38-120(1): Introduction (1) Per RCW 66.20.010, there is an emergency liquor permit for eligible licensees to authorize the sale, service, and consumption of liquor of their own production on the premises of another liquor licensee with retail privileges when an emergency has made the permit holder's premises inaccessible and unable to operate due to an emergency or road closure. *(underline not in original)
WAC 314-38-120(2): No Fee (2) There is no fee for the emergency liquor permit. This is going to be a no-fee permit. While the statute says that we have to waive the fee if there is a declaration of state of emergency, unlike many other permits in RCW 66.20.010, no specific fee is identified or required. This is not unprecedented. (RCW 66.20.010(12); WAC 314-38-060) See Special Permits for community or technical colleges, regional universities, or state universities at WAC 314-38-060(5), which provides for no-fee permits for students over 18 enrolled in classes as part of a culinary, sommelier, wine business, enology, viticulture, wine technology, beer technology, or spirituous technology-related degree programs to taste alcohol for the purposes of educational training.
WAC 314-38-120(3): Who can get the permit? (3) The following licensees are eligible to obtain an emergency liquor permit: (a) Distilleries, craft distilleries, and fruit and wine distilleries; (b) Domestic breweries and microbreweries; and (c) Domestic wineries. These are the liquor licensees that are authorized to manufacture their own liquor. (a) RCW 66.24.140, RCW 66.24.145 (b) RCW 66.24.244, RCW 66.24.240 (c) RCW 66.24.170
WAC 314-38-120(4): Who can host? - Part 1 (4) The following licensees are eligible to operate as a host of a permit holder: (a) All of the licensees identified in subsection (3) of this section; (previous slide) (b) All liquor licensees with retail sales privileges, except for the following: (i) Caterers, licensed under RCW 66.24.690; (ii) Private clubs licensed under RCW 66.24.450 or RCW 66.24.452; and (iii) Sports entertainment facilities licensed under RCW 66.24.570.
WAC 314-38-120(5): Who can host? Part 2 (5)(a) To be eligible to host a permit (5)(a) Example: If distillery gets permit, cannot be hosted by beer/wine restaurant because beer/wine restaurant cannot serve spirits. holder, the host must have at least the same alcohol sales privileges as the permit holder. Alcohol sales privilege defined below (b) If the permit holder is a distillery, craft distillery, or fruit and wine distillery, the host must (b) See WAC 314-28-067 See RCW 66.24.1471 comply with the food offerings requirements in WAC 314-28-067.
WAC 314-38-120(6)-(7): Applying for the permit (6) The permit holder shall identify the host when applying to the board's licensing division for an emergency liquor permit. (7)(a) The permit shall last for 30 days. (b) If the emergency continues, the permit may be renewed for an additional 30 days. (6) This is currently part of the process on the form that licensees are required to fill out. The host has to sign the form submitted by the licensee requesting the permit. (7) This is from the statutory language in RCW 66.20.010(19).
WAC 314-38-120(8): Separate Liquor and MAST (8) The permit holder may store no more than a 30-day supply of liquor at the host premises. (a) The permit holder's liquor must be kept separate from the host liquor. (b) Host employees and agents are permitted to serve liquor provided by the permit holder if they have the MAST permits required by RCW 66.20.310 and chapter 314-17 WAC. (c) The permit holder's employees and agents must meet the same MAST permit requirements as the host's employees and agents.
WAC 314-38-120(9): Undue Influence (9) A host and permit holder may not enter into any type of agreement that would involve impermissible direct or indirect interests as provided in chapter 66.28 RCW. See RCW 66.28.290: Three-tier system Direct or indirect interests between industry members, affiliates, and retailers. See RCW 66.28.295: Three-tier system Direct or indirect interests Allowed activities.
WAC 314-38-120(10): Permit Requirements (10)(a) A host may have no more than three (10)(a) Statutory Language permit holders operating on its premises at a time. (b) A permit holder may only have one (b) To prevent a permit holder from operating at multiple different hosts. permit at a time. (c) The permit holder must conspicuously (c) Posting language from WAC 314- 11-060(3). post the emergency liquor permit at the host premises at all times the permit is in use and be available for inspection by liquor enforcement officers.
WAC 314-38-120(11)(a)-(b): Separate Records, Taxes (11)(a) Hosts and permit holders must maintain separate records consistent with Titles 66 RCW and 314 WAC as it applies to the host and permit holder. (b) Hosts and permit holders must comply with all tax payment and reporting requirements in Titles 66 RCW and 314 WAC. (a) Separate record requirements consistent with licensees that share spaces per WAC 314-03-200(4)(c) (b) Including but not limited to Chapter 314-19 WAC
WAC 314-38-120(11)(c): Distinctive Glassware (11)(c) Hosts and permit holders must use distinctively marked glassware or serving containers to identify the source of any alcohol product being consumed on the host premises. The distinctive markings may be either permanent or temporary. Any temporary markings must remain on the glassware or serving containers through the duration of use by the customer. Language from WAC 314-03-200(4)(d) for shared outdoor spaces.
WAC 314-38-120(12): Joint Liability (12) Hosts and all permit holders on the hosts' premises are jointly responsible for any violation or enforcement issues unless it can be demonstrated that the violation or enforcement issue was due to one or more licensee's specific conduct or action, in which case the violation or enforcement action applies only to those identified licensees. Language from WAC 314-03-200(5)
WAC 314-38-120(13): Definitions Part 1 "Alcohol sales privileges" means the legal ability to sell spirits, beer, or wine as provided in Title 66 RCW or 314 WAC. "Emergency" means an emergency or disaster as defined in RCW 38.52.010. Emergency definition is provided in RCW 66.20.010(19).
WAC 314-38-120(13): Definitions Part 2 "Road closure" means whenever the condition of any state highway, county road, city street, or right-of-way is such that its use by vehicles will be dangerous to traffic, or it is being constructed, altered, or repaired in such a manner as to require their use to be closed or restricted to all vehicles for more than 48 hours. See RCW 47.48.010
WAC 314-38-120(13): Definitions Part 3 "Host" means a liquor licensee with the same retail sales privileges that allows a permit holder to operate on their premises pursuant to the terms of the emergency liquor permit. "Permit holder" means a licensed manufacturer that has experienced an emergency that has made its premises inaccessible and unable to operate due to an emergency or road closure.
WAC 314-38-120(13): Definitions Part 4 "Inaccessible" means unable to be safely entered, reached, or used for on-premises business purposes for more than 48 hours. "Unable to operate" means unable to perform the on- premises activities which the liquor license authorizes in Titles 66 RCW and 314 WAC.
Thank You! For any questions or feedback, please contact Policy & Rules at rules@lcb.wa.gov
