Wine & spirit sales limits

AN ACT Relating to simplifying administration of wine and spirit 1
sales by eliminating the per transaction limit for volume; and 2
amending RCW 66.24.035, 66.24.179, 66.24.360, and 66.24.630.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 66.24.035 and 2017 c 96 s 1 are each amended to read 5
as follows: 6
(1) There is a license called a combination spirits, beer, and 7
wine license, to sell wine and beer, including without limitation 8
strong beer, at retail in bottles, cans, and original containers, not 9
to be consumed upon the premises where sold, and to:10
(a) Sell spirits in original containers to consumers for 11
consumption off the licensed premises and to permit holders;12
(b) Sell spirits in original containers to retailers licensed to 13
sell spirits for consumption on the premises, for resale at their 14
licensed premises according to the terms of their licenses ((, 15
although no single sale may exceed twenty-four liters)); and16
(c) Export spirits. 17
(2) The annual fee for the combination spirits, beer, and wine 18
license is ((three hundred sixteen dollars)) $316 for each store.19
(3) For the purposes of this title, a combination spirits, beer, 20
and wine license is a retail license, and a sale by a combination 21
H-0606.1
HOUSE BILL 1636
State of Washington 69th Legislature 2025 Regular Session
By Representatives Volz, Hackney, Walen, McClintock, Chase, and
Parshley
Read first time 01/28/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1636
spirits, beer, and wine licensee is a retail sale only if not for 1
resale. Nothing in this title authorizes sales by on-premise 2
licensees to other retail licensees. 3
(4)(a) The board may issue a combination spirits, beer, and wine 4
license: 5
(i) For premises comprising at least ((ten thousand )) 10,000 6
square feet of fully enclosed retail space within a single structure, 7
including storerooms and other interior auxiliary areas but excluding 8
covered or fenced exterior areas, whether or not attached to the 9
structure, and only to applicants that the board determines will 10
maintain appropriate systems for inventory management, employee 11
training, employee supervision, and physical security of the product;12
(ii) For premises of a former contract liquor store; or13
(iii) To a holder of former state liquor store operating rights 14
sold at auction under RCW 66.24.620. 15
(b) License issuances and renewals are subject to RCW 66.24.010 16
and the regulations adopted thereunder including, without limitation, 17
rights of cities, towns, county legislative authorities, the public, 18
churches, schools, and public institutions to object to or prevent 19
issuance of local liquor licenses. However, existing grocery and 20
other retail premises over ((ten thousand )) 10,000 square feet 21
licensed to sell beer and/or wine are deemed to be premises "now 22
licensed" under RCW 66.24.010(9)(a) for the purpose of processing 23
applications for combination spirits, beer, and wine licenses.24
(c) A retailer authorized to sell spirits for consumption on or 25
off the licensed premises may accept delivery of spirits and deliver 26
spirits in the same manner as is provided in RCW 66.24.630(3)(d).27
(d) For purposes of negotiating volume discounts of spirits, a 28
group of individual retailers authorized to sell spirits for 29
consumption off the licensed premises may accept delivery of spirits 30
as provided in RCW 66.24.630(3)(e). 31
(5) Each combination spirits, beer, and wine licensee must pay to 32
the board, for deposit into the liquor revolving fund, a license 33
issuance fee equivalent to the license issuance fee imposed on 34
licensees selling spirits pursuant to RCW 66.24.630(4)(a).35
(6) The board may not issue a combined spirits, beer, and wine 36
license to an applicant if the applicant would qualify for a 37
restricted license as provided in RCW 66.24.371(4) or 66.24.360(7) if 38
the applicant had applied for a license under RCW 66.24.371 or 39
66.24.360 instead of pursuant to this section. 40
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(7) As a condition to receiving and renewing a combination 1
spirits, beer, and wine license the licensee must comply with RCW 2
66.24.630(6). 3
(8) The maximum penalties prescribed by the board in WAC 4
314-29-020 through 314-29-040 relating to fines and suspensions are 5
doubled for violations relating to the sale of spirits by combination 6
spirits, beer, and wine licensees. 7
(9)(a) A combination spirits, beer, and wine licensee that joins 8
the responsible vendor program developed by the board pursuant to RCW 9
66.24.630(8) and maintains all of the program's requirements is not 10
subject to the doubling of penalties provided in this section for a 11
single violation in any period of ((twelve)) 12 calendar months.12
(b) To participate in the responsible vendor program, a 13
combination spirits, beer, and wine licensee must submit an 14
application form to the board. If the application establishes that 15
the combination spirits, beer, and wine licensee meets the 16
qualifications to join the program, the board must send the licensee 17
a membership certificate. 18
(c) A combination spirits, beer, and wine licensee participating 19
in the responsible vendor program must meet the requirements in RCW 20
66.24.630(8)(e) and comply with board rules adopted to implement RCW 21
66.24.630(8). 22
(10)(a) Any endorsement available to the holder of a license 23
issued pursuant to RCW 66.24.360 or 66.24.371 is available, upon 24
board approval and pursuant to board rules, to a combination spirits, 25
beer, and wine licensee, provided that the combination spirits, beer, 26
and wine licensee would qualify for a license and the endorsement 27
under RCW 66.24.360 or 66.24.371, as applicable, had the licensee 28
applied for a license and endorsement pursuant to RCW 66.24.360, 29
66.24.363, or 66.24.371, as applicable, instead of the combination 30
spirits, beer, and wine license pursuant to this section. A 31
combination spirits, beer, and wine licensee with an endorsement 32
issued pursuant to this subsection must comply with the requirements 33
of the endorsement to the same extent as if the endorsement was 34
issued pursuant to RCW 66.24.360, 66.24.363, or 66.24.371, as 35
applicable. 36
(b) A combination spirits, beer, and wine licensee may conduct 37
sampling in accordance with: 38
(i) RCW 66.24.371(2) if the combination spirits, beer, and wine 39
licensee would qualify for a license under RCW 66.24.371; or40
p. 3 HB 1636
(ii) RCW 66.24.363 if the combination spirits, beer, and wine 1
licensee would qualify for a license under RCW 66.24.360.2
(11) Licensees holding a combination spirits, beer, and wine 3
license must maintain either: 4
(a) A minimum ((three thousand dollar )) $3,000 inventory of food 5
products for human consumption, not including pop, beer, strong beer, 6
wine, or spirits; or 7
(b) A minimum ((three thousand dollar )) $3,000 wholesale 8
inventory of beer, strong beer, and/or wine. 9
(12) A combination spirits, beer, and wine licensee holding a 10
snack bar license under RCW 66.24.350 may receive an endorsement to 11
allow the sale of confections containing more than one percent but 12
not more than ((ten)) 10 percent alcohol by weight to persons 13
((twenty-one)) 21 years of age or older. 14
(13) The board may adopt rules to implement this section.15
Sec. 2. RCW 66.24.179 and 2016 c 190 s 1 are each amended to 16
read as follows: 17
(1) There is a wine retailer reseller endorsement to a beer 18
and/or wine specialty shop license issued under RCW 66.24.371, to 19
sell wine at retail in original containers to retailers licensed to 20
sell wine for consumption on the premises, for resale at their 21
licensed premises according to the terms of the license. ((However, 22
no single sale may exceed twenty-four liters, unless the sale is made 23
by a licensee that was a former state liquor store or contract liquor 24
store at the location from which such sales are made. )) For the 25
purposes of this title, a beer and/or wine specialty shop license is 26
a retail license, and a sale by a beer and/or wine specialty shop 27
license with a reseller endorsement is a retail sale only if not for 28
resale. The annual fee for the wine retailer reseller endorsement is 29
((one hundred ten dollars)) $110 for each store. 30
(2) A beer and/or wine specialty shop licensee with a wine 31
retailer reseller endorsement issued under this section may accept 32
delivery of wine at its licensed premises or at one or more warehouse 33
facilities registered with the board, which facilities may also 34
warehouse and distribute nonliquor items, and from which it may 35
deliver to its own licensed premises and, pursuant to sales permitted 36
by this title, to other licensed premises, to other registered 37
facilities, or to lawful purchasers outside the state. Facilities may 38
p. 4 HB 1636
be registered and utilized by associations, cooperatives, or 1
comparable groups of beer and/or wine specialty shop licensees.2
(3) A beer and/or wine specialty shop licensee, selling wine 3
under the endorsement created in this section, may sell a maximum of 4
((five thousand )) 5,000 liters of wine per day for resale to 5
retailers licensed to sell wine for consumption on the premises.6
Sec. 3. RCW 66.24.360 and 2017 c 96 s 2 are each amended to read 7
as follows: 8
(1) There is a grocery store license to sell wine and/or beer, 9
including without limitation strong beer at retail in original 10
containers, not to be consumed upon the premises where sold.11
(2) There is a wine retailer reseller endorsement of a grocery 12
store license, to sell wine at retail in original containers to 13
retailers licensed to sell wine for consumption on the premises, for 14
resale at their licensed premises according to the terms of the 15
license. ((However, no single sale may exceed twenty-four liters, 16
unless the sale is made by a licensee that was a contract liquor 17
store manager of a contract-operated liquor store at the location 18
from which such sales are made. )) For the purposes of this title, a 19
grocery store license is a retail license, and a sale by a grocery 20
store licensee with a reseller endorsement is a retail sale only if 21
not for resale. 22
(3) Licensees obtaining a written endorsement from the board may 23
also sell malt liquor in kegs or other containers capable of holding 24
less than ((five and one-half)) 5.5 gallons of liquid.25
(4) The annual fee for the grocery store license is ((one hundred 26
fifty dollars)) $150 for each store. 27
(5) The annual fee for the wine retailer reseller endorsement is 28
((one hundred sixty-six dollars)) $166 for each store.29
(6)(a) Upon approval by the board, a grocery store licensee with 30
revenues derived from beer and/or wine sales exceeding ((fifty)) 50 31
percent of total revenues or that maintains an alcohol inventory of 32
not less than ((fifteen thousand dollars )) $15,000 may also receive 33
an endorsement to permit the sale of beer and cider, as defined in 34
RCW 66.24.210(6), in a sanitary container brought to the premises by 35
the purchaser, or provided by the licensee or manufacturer, and 36
filled at the tap by the licensee at the time of sale by an employee 37
of the licensee holding a class 12 alcohol server permit.38
p. 5 HB 1636
(b) Pursuant to RCW 74.08.580(1)(f), a person may not use an 1
electronic benefit transfer card for the purchase of any product 2
authorized for sale under this section. 3
(c) The board may, by rule, establish fees to be paid by 4
licensees receiving the endorsement authorized under this subsection 5
(6), as necessary to cover the costs of implementing and enforcing 6
the provisions of this subsection (6). 7
(7) The board must issue a restricted grocery store license 8
authorizing the licensee to sell beer and only table wine, if the 9
board finds upon issuance or renewal of the license that the sale of 10
strong beer or fortified wine would be against the public interest. 11
In determining the public interest, the board must consider at least 12
the following factors: 13
(a) The likelihood that the applicant will sell strong beer or 14
fortified wine to persons who are intoxicated; 15
(b) Law enforcement problems in the vicinity of the applicant's 16
establishment that may arise from persons purchasing strong beer or 17
fortified wine at the establishment; and 18
(c) Whether the sale of strong beer or fortified wine would be 19
detrimental to or inconsistent with a government-operated or funded 20
alcohol treatment or detoxification program in the area.21
If the board receives no evidence or objection that the sale of 22
strong beer or fortified wine would be against the public interest, 23
it must issue or renew the license without restriction, as 24
applicable. The burden of establishing that the sale of strong beer 25
or fortified wine by the licensee would be against the public 26
interest is on those persons objecting. 27
(8) Licensees holding a grocery store license must maintain a 28
minimum ((three thousand dollar )) $3,000 inventory of food products 29
for human consumption, not including pop, beer, strong beer, or wine.30
(9) A grocery store licensee with a wine retailer reseller 31
endorsement may accept delivery of wine at its licensed premises or 32
at one or more warehouse facilities registered with the board, which 33
facilities may also warehouse and distribute nonliquor items, and 34
from which it may deliver to its own licensed premises and, pursuant 35
to sales permitted by this title, to other licensed premises, to 36
other registered facilities, or to lawful purchasers outside the 37
state. Facilities may be registered and utilized by associations, 38
cooperatives, or comparable groups of grocery store licensees.39
p. 6 HB 1636
(10) Upon approval by the board, the grocery store licensee may 1
also receive an endorsement to permit the international export of 2
beer, strong beer, and wine. 3
(a) Any beer, strong beer, or wine sold under this endorsement 4
must have been purchased from a licensed beer or wine distributor 5
licensed to do business within the state of Washington.6
(b) Any beer, strong beer, and wine sold under this endorsement 7
must be intended for consumption outside the state of Washington and 8
the United States and appropriate records must be maintained by the 9
licensee. 10
(c) Any beer, strong beer, or wine sold under this endorsement 11
must be sold at a price no less than the acquisition price paid by 12
the holder of the license. 13
(d) The annual cost of this endorsement is ((five hundred 14
dollars)) $500 and is in addition to the license fees paid by the 15
licensee for a grocery store license. 16
(11) A grocery store licensee holding a snack bar license under 17
RCW 66.24.350 may receive an endorsement to allow the sale of 18
confections containing more than one percent but not more than 19
((ten)) 10 percent alcohol by weight to persons ((twenty-one)) 21 20
years of age or older. 21
(12) The board may adopt rules to implement this section.22
(13) Nothing in this section limits the authority of the board to 23
regulate the sale of beer or cider or container sizes under rules 24
adopted pursuant to RCW 66.08.030. 25
(14) Any endorsement issued pursuant to this section or RCW 26
66.24.363 may be issued to a qualified combination spirits, beer, and 27
wine licensee in accordance with RCW 66.24.035(10).28
(15)(a) A grocery store licensee that also holds a spirits retail 29
license under RCW 66.24.630 may, upon board approval and pursuant to 30
board rules, transition to a combination spirits, beer, and wine 31
license pursuant to RCW 66.24.035. 32
(b) An applicant that would qualify for a grocery store license 33
under this section and a spirits retail license under RCW 66.24.630 34
may apply for a single license pursuant to RCW 66.24.035 instead of 35
applying for a grocery store license under this section in addition 36
to a spirits retail license under ((to)) RCW 66.24.630.37
Sec. 4. RCW 66.24.630 and 2021 c 48 s 5 are each amended to read 38
as follows: 39
p. 7 HB 1636
(1) There is a spirits retail license to: Sell spirits in 1
original containers to consumers for consumption off the licensed 2
premises and to permit holders; sell spirits in original containers 3
to retailers licensed to sell spirits for consumption on the 4
premises, for resale at their licensed premises according to the 5
terms of their licenses ((, although no single sale may exceed twenty-6
four liters, unless the sale is by a licensee that was a contract 7
liquor store manager of a contract liquor store at the location of 8
its spirits retail licensed premises from which it makes such 9
sales)); and export spirits. 10
(2) For the purposes of this title, a spirits retail license is a 11
retail license, and a sale by a spirits retailer is a retail sale 12
only if not for resale. Nothing in this title authorizes sales by on-13
sale licensees to other retail licensees. The board must establish by 14
rule an obligation of on-sale spirits retailers to:15
(a) Maintain a schedule by stock-keeping unit of all their 16
purchases of spirits from spirits retail licensees, including 17
combination spirits, beer, and wine licensees holding a license 18
issued pursuant to RCW 66.24.035, indicating the identity of the 19
seller and the quantities purchased; and 20
(b) Provide, not more frequently than quarterly, a report for 21
each scheduled item containing the identity of the purchasing on-22
premises licensee and the quantities of that scheduled item purchased 23
since any preceding report to: 24
(i) A distributor authorized by the distiller to distribute a 25
scheduled item in the on-sale licensee's geographic area; or26
(ii) A distiller acting as distributor of the scheduled item in 27
the area. 28
(3)(a) Except as otherwise provided in (c) of this subsection, 29
the board may issue spirits retail licenses only for premises 30
comprising at least ((ten thousand )) 10,000 square feet of fully 31
enclosed retail space within a single structure, including storerooms 32
and other interior auxiliary areas but excluding covered or fenced 33
exterior areas, whether or not attached to the structure, and only to 34
applicants that the board determines will maintain systems for 35
inventory management, employee training, employee supervision, and 36
physical security of the product substantially as effective as those 37
of stores currently operated by the board with respect to preventing 38
sales to or pilferage by underage or inebriated persons.39
p. 8 HB 1636
(b) License issuances and renewals are subject to RCW 66.24.010 1
and the regulations adopted thereunder, including without limitation 2
rights of cities, towns, county legislative authorities, the public, 3
churches, schools, and public institutions to object to or prevent 4
issuance of local liquor licenses. However, existing grocery premises 5
licensed to sell beer and/or wine are deemed to be premises "now 6
licensed" under RCW 66.24.010(9)(a) for the purpose of processing 7
applications for spirits retail licenses. 8
(c) The board may not deny a spirits retail license to an 9
otherwise qualified contract liquor store at its contract location or 10
to the holder of former state liquor store operating rights sold at 11
auction under RCW 66.24.620 on the grounds of location, nature, or 12
size of the premises to be licensed. The board may not deny a spirits 13
retail license to applicants that are not contract liquor stores or 14
operating rights holders on the grounds of the size of the premises 15
to be licensed, if such applicant is otherwise qualified and the 16
board determines that: 17
(i) There is no spirits retail license holder in the trade area 18
that the applicant proposes to serve; 19
(ii) The applicant meets, or upon licensure will meet, the 20
operational requirements established by the board by rule; and21
(iii) The licensee has not committed more than one public safety 22
violation within the three years preceding application.23
(d) A retailer authorized to sell spirits for consumption on or 24
off the licensed premises may accept delivery of spirits at its 25
licensed premises, at another licensed premises as designated by the 26
retailer, or at one or more warehouse facilities registered with the 27
board, which facilities may also warehouse and distribute nonliquor 28
items, and from which the retailer may deliver to its own licensed 29
premises and, pursuant to sales permitted under subsection (1) of 30
this section: 31
(i) To other retailer premises licensed to sell spirits for 32
consumption on the licensed premises; 33
(ii) To other registered facilities; or 34
(iii) To lawful purchasers outside the state. The facilities may 35
be registered and utilized by associations, cooperatives, or 36
comparable groups of retailers, including at least one retailer 37
licensed to sell spirits. 38
(e) For purposes of negotiating volume discounts, a group of 39
individual retailers authorized to sell spirits for consumption off 40
p. 9 HB 1636
the licensed premises may accept delivery of spirits at their 1
individual licensed premises or at any one of the individual 2
licensee's premises, or at a warehouse facility registered with the 3
board. 4
(4)(a) Except as otherwise provided in RCW 66.24.632, section 2, 5
chapter 48, Laws of 2021, or in (b) of this subsection, each spirits 6
retail licensee must pay to the board, for deposit into the liquor 7
revolving fund, a license issuance fee equivalent to ((seventeen)) 17 8
percent of all spirits sales revenues under the license, exclusive of 9
taxes collected by the licensee and of sales of items on which a 10
license fee payable under this section has otherwise been incurred. 11
The board must establish rules setting forth the timing of such 12
payments and reporting of sales dollar volume by the licensee, with 13
payments required quarterly in arrears. The first payment is due 14
October 1, 2012. 15
(b) This subsection (4) does not apply to craft distilleries for 16
sales of spirits of the craft distillery's own production.17
(5) In addition to the payment required under subsection (4) of 18
this section, each licensee must pay an annual license renewal fee of 19
((one hundred sixty-six dollars )) $166. The board must periodically 20
review and adjust the renewal fee as may be required to maintain it 21
as comparable to annual license renewal fees for licenses to sell 22
beer and wine not for consumption on the licensed premises. If 23
required by law at the time, any increase of the annual renewal fee 24
becomes effective only upon ratification by the legislature.25
(6) As a condition to receiving and renewing a spirits retail 26
license the licensee must provide training as prescribed by the board 27
by rule for individuals who sell spirits or who manage others who 28
sell spirits regarding compliance with laws and regulations regarding 29
sale of spirits, including without limitation the prohibitions 30
against sale of spirits to individuals who are underage or visibly 31
intoxicated. The training must be provided before the individual 32
first engages in the sale of spirits and must be renewed at least 33
every five years. The licensee must maintain records documenting the 34
nature and frequency of the training provided. An employee training 35
program is presumptively sufficient if it incorporates a "responsible 36
vendor program" adopted by the board. 37
(7) The maximum penalties prescribed by the board in WAC 38
314-29-020 through 314-29-040 relating to fines and suspensions are 39
p. 10 HB 1636
doubled for violations relating to the sale of spirits by spirits 1
retail licensees. 2
(8)(a) The board must adopt regulations concerning the adoption 3
and administration of a compliance training program for spirits 4
retail licensees, to be known as a "responsible vendor program," to 5
reduce underage drinking, encourage licensees to adopt specific best 6
practices to prevent sales to minors, and provide licensees with an 7
incentive to give their employees ongoing training in responsible 8
alcohol sales and service. 9
(b) Licensees who join the responsible vendor program under this 10
section and maintain all of the program's requirements are not 11
subject to the doubling of penalties provided in this section for a 12
single violation in any period of ((twelve)) 12 calendar months.13
(c) The responsible vendor program must be free, voluntary, and 14
self-monitoring. 15
(d) To participate in the responsible vendor program, licensees 16
must submit an application form to the board. If the application 17
establishes that the licensee meets the qualifications to join the 18
program, the board must send the licensee a membership certificate.19
(e) A licensee participating in the responsible vendor program 20
must at a minimum: 21
(i) Provide ongoing training to employees; 22
(ii) Accept only certain forms of identification for alcohol 23
sales; 24
(iii) Adopt policies on alcohol sales and checking 25
identification; 26
(iv) Post specific signs in the business; and 27
(v) Keep records verifying compliance with the program's 28
requirements. 29
(f)(i) A spirits retail licensee that also holds a grocery store 30
license under RCW 66.24.360 or a beer and/or wine specialty shop 31
license under RCW 66.24.371 may, upon board approval and pursuant to 32
board rules, transition to a combination spirits, beer, and wine 33
license pursuant to RCW 66.24.035. 34
(ii) An applicant that would qualify for a spirits retail license 35
under this section and that qualifies for a combination spirits, 36
beer, and wine license pursuant to RCW 66.24.035 may apply for a 37
p. 11 HB 1636
license pursuant to RCW 66.24.035 instead of applying for a spirits 1
retail license under this section. 2
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