Category Archives: WSLCB

NALCP Conference: Growler/Crowler Session Was a Hit!

NALCP Conference: Growler/Crowler Session Was a Hit!

Our session on growlers and crowlers was a big hit in New Orleans.  Speaking to nearly a full room, our speakers hit it out of the park.  Attendees were engaged, asking questions, and busily taking notes.

Thank you so much!

Attendees learned about the difference between growlers and crowlers, the regulatory issues presented by selling them, the scope and nature of the license privileges related to growlers and crowlers, the varied regulatory landscape across jurisdictions, the public safety issues presented by growlers, and best practices in setting up a growler/crowler business.

Another big thank you to Jeremy and Meg and Oskar Blues for bringing a crowler machine to the conference and demoing it with hundreds of cans with the NALCP logo at the trade show.

Oregon and Washington continue to be pioneers in the growler and crowler arena.  This success has been driven in part by the OLCC and WSLCB, thoughtful laws and rules, engaged industry groups and members, and the innovative alcohol beverage businesses in the Pacific Northwest.

Looking forward to next year’s conference in San Diego!

NALCP Conference in New Orleans: Great First Day

NALCP Conference in New Orleans: Great First Day

We just wrapped up the first day of the educational programing for the National Association of Licensing and Compliance Professionals (“NALCP”) Conference in New Orleans!  Who dat?

The first day’s agenda was packed with interesting content.  Most notably for the Pacific Northwest, Rick Garza–the director of the Washington State Liquor and Cannabis Board–discussed trade practice issues that have recently come to light in Washington.  He described the Board’s renewed focus on trade practice issues in Washington resulting from both recent occurrences in Washington and trends nationwide.

In short, licensees at all three tiers in Washington should consider themselves on notice that the Board will be investigating how they interact in marketing and promoting their alcohol beverage products.  For example, Washington retailers should be wary of receiving money or money’s worth from suppliers or distributors unless clearly covered by a statutory exception, or letting suppliers or distributors take a material role in determining the marketing or arranging of alcohol inventory at their location.  These are just two examples of potential trade practice related issues.

After focusing on the role out of cannabis in Washington for the last several years, Washington licensees should be prepared for a renewed focus by the Board on alcohol regulatory compliance issues.

Now, the conference turns toward its social agenda for the evening.  Northwest Alcohol Law is the proud sponsor of Colin Lake–the musical entertainer for tonight’s meet and greet.  We’re then heading to John Besh‘s Borgne for dinner followed by a night cap at Legacy Kitchen.  Let me know if anyone has a suggestion for late night entertainment in NOLA.

 

 

 

The WSLCB will be revisiting its barrier requirement for outdoor patios

The WSLCB will be revisiting its barrier requirement for outdoor patios.  Your initial comments are due by July 4, 2014.

Patio

The Washington State Liquor Control Board (the “WSLCB”) has entered into the initial stage of rule making to revise WAC 314-02-130 regarding outside service area requirements.

The rulemaking is a result of a petition for rulemaking submitted by the cities of Seattle and Spokane on May 6, 2014 and signed by the respective mayors of each city.  The mayors cite both public safety and business reasons for the changes.

WAC 314-02-130 requires all outdoor alcohol service areas be enclosed by a 42 inch high barrier.  Both Seattle and Spokane have active sidewalk café permitting programs in which businesses must apply for and obtain approval to provide table service for their guests on public sidewalks.  Many jurisdictions do not have such barrier requirements and have found ways to maintain a safe and responsible food and alcohol service on sidewalks, including nearby Oregon.

WAC 314-02-130 sets out the requirement as follows:

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)

The cities have found the mandatory 42 inch barrier requirement for outdoor areas to undesirable under certain circumstances.  The cities have cited two primary concerns.

First, because there is limited walkable space on some sidewalks, the barrier requirement further encroaches on the remaining walkable space when a sidewalk permit is granted.  As a result, particularly when sidewalk permits are granted for narrow thoroughfares, pedestrian access and flow are unnecessarily impeded.

Second, the barrier requirements sometimes results in there simply not being enough room for an outdoor seating area and a pedestrian thoroughfare.  As a consequence, some businesses are having their application for a sidewalk café permit denied.  This can result in a material hardship to the business and reduce activity on the street.

The cities of Seattle and Spokane are requesting the WSLCB to allow local jurisdictions to decide when and where barriers are appropriate.  In short, the cities want the discretion to determine how best to license and permit these outdoor areas.  Sidewalk cafes are good for the public, cities and businesses.  They are thought to increase activity, decrease crime and result in more business and pedestrian traffic generally.  While nothing concrete has been proposed, the time has come for the relaxation (or elimination?) of the barrier requirement for outdoor areas.  Please take the time to comment in support of this concept.

This notice can be found here under Proposed Rules.

Washington Distilleries Will Likely Be Able to Offer Samples This Summer!

Washington Distilleries Will Likely Be Able to Offer Samples This Summer!

Senate Bill 6226 went to the governor for signature on March 12th.  The governor has not yet taken any action on the bill.  If no action is taken, it is considered approved and moves forward.  The governor has until April 5th to take action.  Given the large amount of support for this bill on both sides of the aisle, it is not anticipated that it will be vetoed.  Assuming no veto, the bill would become law on June 12th.

The key elements of the bill are as follows:

  • Increases the annual spirits production limit for craft distillers from 60,000 gallons to 150,000 gallons.
  • Eliminates the three liter per day per person limit on the sale of spirits by a craft distiller for off-premises consumption.
  • Authorizes a craft distillery to charge customers a fee for spirits samples of 1/2 ounce or less served to them on premises, but does not require such a charge.
  • Authorizes any licensed distillery to:
    • sell spirits of its own production for consumption off the premises;
    • contract with, and sell spirits to other licensed distillers and manufacturers; and
    • provide for free, or for a charge, spirits samples of 1/2 ounce or less to customers on the premises, subject to a daily maximum of two ounces per person per day.
      • Samples will likely be restricted to unaltered samples by rule–no mixed samples.
      • Samples must be provided by someone with a current, valid MAST permit.
  • Authorizes special occasion licensees to pay for spirits immediately following a special occasion event.
  • Authorizes a special occasion licensee to charge reasonable booth fees to a distillery participating in the event.

You can monitor the progress of the bill here.

Can Licensees in Oregon and Washington “Comp” Drinks?

Can Licensees in Oregon and Washington “Comp” Drinks?  The answer is yes, but …

“Comp” drinks can be a useful tool for licensees in some situations.

120px-Classic_martini_by_Ken30684

While comping drinks is okay under limited circumstances in both Oregon and Washington, advertising “free” drinks or having business practices or promotions involving “free” drinks is generally prohibited.  The OLCC and WSLCB will scrutinize any such program and licensees should take to stay within the rules.

In Washington, comping alcoholic beverages to guests is permitted under limited circumstances, such as:

  1. For special occasions, such as birthdays or anniversaries;
  2. To compensate a guest for a bad meal or poor service; or
  3. To allow the guest to taste the product before purchasing it.

Importantly, free alcohol cannot be used or advertised as a business promotion.

In Oregon, comping alcoholic beverages to guests is permitted under similar circumstances.  That being said, businesses should be careful about establishing sound policies and practices around “comping” drinks to avoid abuse.  For an interesting take on this, read a blog post from Jeffrey Morgenthaler here.

However, advertising free alcoholic beverages is generally prohibited.  Also, alcoholic beverages cannot be offered for free as a “prize” or similar.  Generally speaking, licensees should be mindful of promotions or advertising that involve any reference to “free” and should confirm that they are permitted before moving forward with the program.

 

Washington Distillers May Have Reason to Celebrate this Legislative Session.

Washington distillers may have reason to celebrate this legislative session. House Bill 2364 and its companion Senate Bill 6226 are making their way through the legislative process with much support and little opposition.  To follow the bill, click here.

The bills would achieve the following:

  • Increases the annual spirits production limit for craft distillers from 60,000 gallons to 150,000 gallons.
  • Eliminates the three liter per day per person limit on the sale of spirits by a craft distiller for off-premises consumption.
  • Authorizes a craft distillery to charge customers a fee for spirits samples of 1/2 ounce or less served to them on premises.
  • Authorizes any licensed distillery to: sell spirits of its own production for consumption off the premises; contract with, and sell spirits to other licensed distillers and manufacturers; and provide for free, or for a charge, spirits samples of 1/2 ounce or less to customers on the premises, subject to a daily maximum of two ounces per person per day.  Samples will likely be restricted to unaltered samples by rule–no mixed samples.
  • Authorizes special occasion licensees to pay for spirits immediately following a special occasion event.
  • Authorizes a special occasion licensee to charge reasonable booth fees to a distillery participating in the event.

These changes are good news for both distillers and craft distillers.  Craft distillers would be able to produce more spirits before being required to become distillers and will be able to (but not required to) charge for samples for guests at the distillery premises.  Distillers would be able to offer samples to guests at the distillery premises–a privilege that they currently do not have and that hampers their ability to market their product.