WSR 09-15-112 PROPOSED RULES
LIQUOR CONTROL BOARD [ Filed July 16, 2009, 2:13 p.m. ] Original Notice.
Preproposal statement of inquiry was filed as WSR 09-10-094.
Title of Rule and Other Identifying Information: Amending WAC 314-29-015, 314-29-020, 314-29-025, 314-29-030, and 314-29-035.
Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on August 26, 2009, at 10:00 a.m.
Date of Intended Adoption: September 9, 2009.
Submit Written Comments to: Karen McCall, P.O. Box 43080, Olympia, WA 98504-3080, e-mail rules@liq.wa.gov, fax (360) 664-9689, by August 26, 2009.
Assistance for Persons with Disabilities: Contact Karen McCall by August 26, 2009, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules will create consistency in standard penalties for commonly violated laws that are not represented in the current penalty matrix, and provide clarity to liquor licensees of the progression of penalties for subsequent violations in various categories.
Reasons Supporting Proposal: Liquor licensees and other stakeholders have questions about penalty guidelines that are not currently covered in the guidelines of chapter 314-29 WAC. The proposed rules clarify all penalties and the progression of penalties.
Statutory Authority for Adoption: RCW 66.08.030.
Statute Being Implemented: Chapters 66.44, 66.28, 66.24 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state liquor control board, governmental.
Name of Agency Personnel Responsible for Drafting: Karen McCall, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1631; Implementation and Enforcement: Pat Parmer, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposal does not change the impact on businesses or individuals that receive violations.
A cost-benefit analysis is not required under RCW 34.05.328.
July 16, 2009
Ruthann Kurose
Board Member
OTS-2506.3
AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)
WAC 314-29-015 What are the penalties if a liquor license holder violates a liquor law or rule? (1) The purpose of WAC 314-29-015 through 314-29-040 is to outline what penalty a liquor licensee can expect if a licensee or employee violates a liquor control board law or rule (the penalty guidelines for mandatory alcohol server training permit holders are in WAC 314-17-100 through 314-17-110). WAC rules listed in the categories provide reference areas, and may not be all inclusive.(2) Penalties for violations by liquor licensees or employees are broken down into four categories:
(a) Group One -- Public safety violations, WAC 314-29-020.
(b) Group Two -- ((
Conduct)) Regulatory violations, WAC 314-29-025.(c) Group Three -- ((
Regulatory)) License violations, WAC 314-29-030.(d) Group Four -- Nonretail violations involving the manufacture, supply, and/or distribution of liquor by nonretail licensees and prohibited practices between nonretail licensees and retail licensees, WAC 314-29-035.
(3) For the purposes of chapter 314-29 WAC, a two year window for violations is measured from the date one violation occurred to the date a subsequent violation occurred.
(4) The following schedules are meant to serve as guidelines. Based on mitigating or aggravating circumstances, the liquor control board may impose a different penalty than the standard penalties outlined in these schedules.
(a) Mitigating circumstances (b) Aggravating circumstances (( Examples of)) Mitigating circumstances that may result in ((a)) fewer ((number of)) days of suspension and/or a lower monetary option may include((, but are not limited to, having in place)) demonstrated business policies and/or practices ((such as:? Using licensee certification cards that are correctly filled out and filed;
? Having direct on-site supervision of employees;
? Having a signed acknowledgment of the business' alcohol policy on file for each employee;
? Having an employee training plan that includes annual training on liquor laws;
? Showing cooperation with local law enforcement; etc.)) that reduce the risk of future violations.
(( Examples of)) Aggravating circumstances that may result in ((a higher number of)) increased days of suspension, ((a higher)) and/or increased monetary option, and/or cancellation of a liquor license may include((, but are not limited to:? Failing to cooperate with local law enforcement or liquor control board employees;
? Not calling for local law enforcement when requested by a customer or liquor control board agent;
? Not checking to ensure employees are of legal age or have appropriate work permits;
? Committing the violation willfully; etc.)) business operations or behaviors that create an increased risk for a violation and/or intentional commission of a violation.
[Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-015, filed 4/4/03, effective 5/5/03.]
AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)
WAC 314-29-020 Group 1 violations against public safety. Group 1 violations are considered the most serious because they present a direct threat to public safety.
Violation Type 1st Violation 2nd Violation in a two-year window
3rd Violation in a two-year window
4th Violation in a two-year window Violations involving minors:
Sale or service to minor: Sale or service of alcohol to a person under 21 years of age.
Minor frequenting a tavern, lounge, or other restricted area.5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license (( Minor frequenting a tavern, lounge, or other age restricted area.5 day suspension or $500 monetary option7 day suspension with no monetary option30 day suspension with no monetary optionCancellation of license))Sale or service to apparently intoxicated person: Sale or service of alcohol to, or permitting consumption or possession by, an apparently intoxicated person.
5 day suspension or $500 monetary option (( 5)) 7 day suspension ((or $2,500)) with no monetary option(( 10)) 30 day suspension ((or $5,000)) with no monetary optionCancellation of license Conduct violations: Disorderly conduct by licensee or employee, or permitting on premises. Licensee and/or employee intoxicated on the licensed premises and/or drinking on duty.
Criminal conduct: Permitting or engaging in criminal conduct.
5 day suspension or $500 monetary option (( 5)) 7 day suspension ((or $2,500)) with no monetary option(( 10)) 30 day suspension ((or $5,000)) with no monetary optionCancellation of license (( Criminal conduct: Permitting or engaging in criminal conduct.5 day suspension or $500 monetary option7 day suspension with no monetary option30 day suspension with no monetary optionCancellation of license))Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.
5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license Refusal to allow an inspection and/or obstructing a law enforcement officer from performing their official duties. 5 day suspension or $500 monetary option 7 day suspension with no monetary option 30 day suspension with no monetary option Cancellation of license Condition of suspension violation: Failure to follow any suspension restriction while liquor license is suspended. Original penalty plus 10 day suspension with no monetary option Cancellation of license [Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-020, filed 4/4/03, effective 5/5/03.]
AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)
WAC 314-29-025 Group 2 ((conduct)) regulatory violations. Group 2 violations are violations involving ((conduct)) general regulation and administration of retail or nonretail ((licensee, employees, or patrons)) licenses.
Violation Type 1st Violation 2nd Violation in a two-year window
3rd Violation in a two-year window
4th Violation in a two-year window
(( Misuse or unauthorized use of liquor license.5 day suspension or $1,500 monetary optionCancellation of licenseCancellation of licenseCancellation of licenseSale of alcohol in violation of a board-approved alcohol impact area restriction.5 day suspension or $500 monetary option7 day suspension or $1,500 monetary option10 day suspension with no monetary optionCancellation of license))Club liquor to the public. 5 day suspension or $500 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Employee under legal age or without required mandatory alcohol server training permit. 5 day suspension or (( $250)) $500 monetary option5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Failure to follow 11:00 p.m. entertainment rules. 5 day suspension or $500 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Hours of service: Sales, service, removal, or consumption of alcohol between 2:00 a.m. and 6:00 a.m. 5 day suspension or (( $250)) $500 monetary option5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Keg registration: Failure to properly register kegs.
5 day suspension or $500 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Spirituous liquor not sold by the individual drink. WAC 314-02-015 (1)(a)
5 day suspension or $500 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Food service: Required food service not available. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Hours of operation: Failure to meet required hours of operation.
5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license NSF check: Payment by a retail licensee for alcohol purchases. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Premises not open to the general public while liquor is sold, served, or consumed. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Sampling and/or cooking class violations. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license Substituting, tampering, improper labeling, unlawful removal, possession, or unauthorized sale of liquor. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license (( Lewd conduct: Engaging in or permitting conduct in violation of WAC 314-11-050.5 day suspension or $250 monetary option5 day suspension or $1,500 monetary option10 day suspension or $3,000 monetary optionCancellation of licenseInspections: Refusing to allow inspection(s) by law enforcement.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary option))Advertising: Advertising violations other than those involving prohibited practices between a nonretail and a retail licensee.
5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Hotel/motel honor bar violation. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Inventory: Inventory below required amount. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Lighting: Inadequate lighting. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Liquor purchased from unauthorized source or sale below cost in violation of liquor law or rule. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Private club violations: Club regulations other than club liquor to the public. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Records: Improper recordkeeping. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Retailer/nonretailer violation: Violation on the part of a retail licensee that involves a nonretail licensee, other than group four violations. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Signs: Failure to post required signs. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option Unauthorized alterations, change of trade name, or added activity. 5 day suspension or $100 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension with no monetary option [Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-025, filed 4/4/03, effective 5/5/03.]
AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)
WAC 314-29-030 Group 3 ((regulatory)) license violations. Group 3 violations are violations involving ((administrative)) licensing requirements, license classification, and special restrictions.
Violation Type 1st Violation 2nd Violation in a two-year window
3rd Violation in a two-year window
4th Violation in a two-year window
(( Keg registration: Failure to properly register kegs.5 day suspension or $500 monetary option5 day suspension or $1,000 monetary option10 day suspension or $1,500 monetary option20 day suspension with no monetary optionSigns: Failure to post required signs.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionRecords: Improper record keeping.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionAdvertising: Advertising violations other than those involving prohibited practices between a nonretail and a retail licensee.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionInventory: Inventory below required amount.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionUnauthorized alterations, change of trade name, or added activity.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionLighting: Inadequate lighting.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary optionLiquor purchased from unauthorized source or sale below cost in violation of liquor law or rule.5 day suspension or $100 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension with no monetary option))True party of interest violation. Cancellation of license Failure to furnish required documents. Cancellation of license Misrepresentation of fact. Cancellation of license Misuse or unauthorized use of liquor license (operating outside of license class, lending or contracting license to another person/entity). 5 day suspension or $1,500 monetary option Cancellation of license WAC 314-02-045 Operating plan: Violations of a board-approved operating plan.
5 day suspension or $500 monetary option 7 day suspension or $1,500 monetary option 10 day suspension with no monetary option Cancellation of license Sale of alcohol in violation of a board-approved local authority restriction. 5 day suspension or $500 monetary option 7 day suspension or $1,500 monetary option 10 day suspension with no monetary option Cancellation of license Sale of alcohol in violation of a board-approved alcohol impact area restriction. 5 day suspension or $500 monetary option 7 day suspension or $1,500 monetary option 10 day suspension with no monetary option Cancellation of license Catering endorsement violation. 5 day suspension or $250 monetary option 5 day suspension or $1,500 monetary option 10 day suspension or $3,000 monetary option Cancellation of license [Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-030, filed 4/4/03, effective 5/5/03.]
AMENDATORY SECTION(Amending WSR 03-09-015, filed 4/4/03, effective 5/5/03)
WAC 314-29-035 Group 4 nonretail violations. Group 4 violations are violations involving the manufacture, supply, and/or distribution of liquor by nonretail licensees and prohibited practices between a nonretail licensee and a retail licensee.
Violation type 1st Violation 2nd Violation in a two-year window
3rd Violation in a two-year window
4th Violation in a two-year window
Providing credit to a retail licensee. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Quantity discount. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Giving away liquor in violation of liquor law or rule. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Consignment sales/return of product in violation of liquor law or rule. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Advertising violations involving prohibited practices between a nonretail and a retail licensee. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Price (( posting)) lists/labeling/packaging violations.
3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option WAC 314-20-020 Agents violations: Nonretail licensee employing an unlicensed agent. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Unauthorized product/unapproved storage or delivery. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option RCW 66.24.240 WAC 314-20-015 WAC 314-24-140 Sampling/tasting violations. 3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Entertainment/ instruction/meeting/
trade show violations.
3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option (( Providing money or money's worth less than $100.3 day suspension or $250 monetary option5 day suspension or $500 monetary option10 day suspension or $1,000 monetary option20 day suspension or $2,000 monetary option))Providing/accepting money or money's worth: Goods or services worth (( $100 to $1,000)) up to $1,500.3 day suspension or $500 monetary option 5 day suspension or $2,500 monetary option 10 day suspension or $5,000 monetary option 20 day suspension or $10,000 monetary option Providing/accepting money or money's worth: Goods or services worth over (( $1,000)) $1,500.Cost of item or service provided plus: 3 day suspension or $1,000 monetary option Cost of item or service provided plus: 5 day suspension or $2,500 monetary option Cost of item or service provided plus: 10 day suspension or $5,000 monetary option Cost of item or service provided plus: 20 day suspension or $10,000 monetary option Providing/accepting exclusive or contingency agreements. 3 day suspension or $1,000 monetary option 10 day suspension or $6,000 monetary option 20 day suspension or $12,000 monetary option 30 day suspension or $20,000 monetary option Unauthorized interest or ownership in retail license. 3 day suspension or $1,000 monetary option 30 day suspension or $20,000 monetary option Cancellation of license Failure to obtain surety bond/savings account, if required by the board. Immediate suspension of license until surety bond has been obtained and all missing reports are filed and late taxes are paid. Failure to file tax/shipment report. 3 day suspension or $250 monetary option 5 day suspension or $500 monetary option 10 day suspension or $1,000 monetary option 20 day suspension or $2,000 monetary option Certificate of approval (COA) and/or authorized representative violations. 15 day suspension or $100 monetary option 30 day suspension or $500 monetary option 180 day suspension or $1,000 monetary option Cancellation of license [Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.120. 03-09-015, § 314-29-035, filed 4/4/03, effective 5/5/03.]
