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Susan M. Johnson focuses her practice on issues facing the food, beverage and hospitality industries. She counsels beer, wine and spirits producers; retail store, restaurant and hotel chains; sports and entertainment facilities; cruise ship lines; and contract food service management companies on liquor licensing, sales, distribution, advertising, administrative violation defense and regulatory matters related to changes in corporate ownership and governance. Susan also works directly with industry associations, in-house counsel and other law firms on complex transactions, litigation consultation and legislative initiatives involving alcoholic beverage issues. Susan is co-chair of the Stoel Rives Food, Beverage & Hospitality group. Since 2014, she has been listed by Chambers USA as one of "America's Leading Lawyers for Business" (Nationwide) in the Food & Beverages: Alcohol practice area.

Click here for Susan Johnson's full bio.

As we look forward to 2022, we have summarized key alcoholic beverage legal changes in California from the past year that may affect your business.

The below list of alcoholic beverage laws either went into effect immediately late in 2021 or went into effect on January 1, 2022. The legal changes span from extending pandemic relief to permitting licensed wineries to open an additional off-site tasting room, to legalization of to-go cocktails, to eased restrictions on charitable giving, among many others. If your business involves the manufacture or sale of alcoholic beverages, odds are good these changes affect you. As always if you have any questions regarding these new laws or the potential effect of these changes to your business, facility, or products, please contact our California alcoholic beverage attorneys.

Assembly Bill 61 – Business Pandemic Relief

Bus. & Prof. Code § 25750.5: On October 8, 2021, effective immediately, and for up to 365 days from the date the COVID-19 pandemic state of emergency proclaimed by the Governor is lifted, the Department of Alcoholic Beverage Control (ABC) may permit licensees to exercise license privileges in an expanded licensed area.

Previously, it was unlawful for a licensee of the ABC to sell or serve alcoholic beverages outside of the licensed establishment’s approved footprint, with few exceptions. The ABC, pursuant to emergency orders of the Governor relating to COVID-19, has established temporary relief measures to suspend certain legal restrictions relating to expansion of licensed footprint, sales of to-go alcoholic beverages, and delivery privileges. A.B. 61 specifically authorizes the ABC to permit licensees to exercise their license privileges in an expanded area for up to 365 days after the end of the state of emergency proclaimed by the Governor. This expanded area includes on-sale consumption of alcohol on property controlled by the licensee adjacent to licensed premises.
Continue Reading Cheers to a New Year: California’s New Alcoholic Beverage Laws for 2022

On December 8, 2021, the Washington State Liquor and Cannabis Board (“LCB”) approved New Rules to extend temporary pandemic-related licensee privileges for to-go orders and permanently amend the food service requirement for liquor licensees. The New Rules are clearly a step towards providing licensees additional flexibility to sell alcohol products in light of the ongoing pandemic.

The New Rules extend and amend endorsements for certain “to-go” products permitting licensees additional flexibility for selling to-go alcoholic beverages. First, the New Rules permit delivery by a third-party instead of only employees of the licensee. Second, the New Rules remove the obligation that breweries, wineries, and distilleries label to-go alcohol products and, for breweries and wineries, permit the sale of prefilled growlers in certain circumstances. Third, the New Rules clarify that payment for to-go wine and cocktails must be processed by a licensee’s direct employee. There are no fees for these endorsements, and they will now expire on July 1, 2023.
Continue Reading Washington State Liquor Control Board Extends Pandemic-Related Privileges for Licensees

This post was guest authored by Stoel Rives summer associate Alex Pearson.

With the Washington State Legislature’s third special session at a close, now is a good time for alcoholic beverage producers and distributors to take a moment to look at five bills that passed the Legislature and were signed into law by Governor Inslee this past session. All are effective as of July 23, 2017, and create new opportunities for producers and distributors. What follows is a summary of the more notable additions and modifications made by these new laws. Please note that these laws affect a variety of licensees, so we encourage all producers and distributors to evaluate these changes with their attorney.

Legal Definition of Mead

One of the world’s oldest alcoholic beverages—mead—finally has a legal definition in Washington. S.H.B. 1176 amends RCW 66.24.215 and RCW 66.28.360 to define mead as a wine or malt beverage sold as “mead” and which is fermented primarily from honey, but may contain other agricultural products such as fruit, hops, or spices. Those licensed to sell beer or cider in growlers will also be allowed to similarly sell mead to customers, so long as the mead sold has an alcohol content equal to or less than 14 percent alcohol by volume. Additionally, starting January 1, 2018, mead will be exempt from the assessment on wine production that funds the Washington Wine Commission.
Continue Reading 2017 Changes to Washington Liquor Laws Affecting Producers and Distributors

This post was guest authored by Stoel Rives summer associate Antonija Krizanac.

Since the 2017 Oregon Legislative Session convened on February 1, 2017, the Legislature has introduced a variety of bills that impact the Oregon alcohol and beverage industry. Out of the countless proposed bills, five have already been signed by the Governor and will go into effect this year or early 2018 and may impact your business. Following is a summary of those bills.

House Bill 2150: Relating to electronic administration of alcoholic beverage tax provisions

House Bill 2150 requires the Oregon Liquor Control Commission (“OLCC”) to allow manufacturers or distributors of wine, cider, or malt beverages to file by electronic means:

  • A statement of the quantity of wine, cider, or malt beverages produced, purchased, or received, and
  • Payment of privilege taxes on such activities.

This alters the current filing and payment system, which is done on paper. The measure will apply to statements or privilege taxes due on or after July 1, 2019.

Effective date: January 1, 2018
Link to enrolled bill: https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/HB2150
Continue Reading 2017 Changes to Oregon Liquor Laws

This post was guest authored by Stoel Rives summer associate Emma Vignali.

On July 23, 2017, numerous Bills will go into effect that will meaningfully impact alcohol and beverage retailers across Washington. Governor Jay Inslee will sign four bills that will create opportunities for alcohol retailers and simplify the licensing process for current and future licensees. Additionally, although not yet passed by the legislature, S.B. 5164 would expand the criteria under RCW 66.24.363 to authorize the issuance of a beer and wine tasting endorsement to small retailers of meat, seafood, poultry, and cheese. The following is a summary of some of the notable changes adopted in these bills. Note that many of the changes affect licenses, so we encourage anyone who sells alcohol in Washington to discuss these changes with their attorney.

Special Permit for Wine Auctions

H.B. 1718 amends RCW 66.20.010 to improve the process for non-profits hoping to hold wine auctions at their charitable events. While the previous process for holding wine auctions proved strenuous for many non-profits, this Bill simplifies the process by creating a special permit specifically for private wine auctions. The special permit allows non-profits to auction wine for off-premises consumption and to provide auction guests with tasting samples of the wine to be auctioned at the event. More than one winery may participate in the auction, but each must be listed on the application for the special permit. A $25.00 fee will be charged for each winery listed on the permit. Non-profit organizations considering holding a private auction should be sure to apply for a permit prior to the event.
Continue Reading 2017 Changes to Washington Liquor Laws Affecting Retailers

The Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a notice yesterday stating that it will consider waiving – on a case-by-case basis – late filing, payment or deposit penalties for taxpayers unable to file payment of Federal excise taxes due to the August 24, 2014, Northern California earthquake. Text of the statement follows below.Continue Reading TTB Will Consider Penalty Waivers for Late Payment of Excise Taxes By Businesses Impacted by Northern California Earthquake

Movie theaters with restaurant-style food service will reach a broader audience with the recent signing into law of a bill passed by the Washington State Legislature allowing service of food and alcoholic beverages to their patrons. The law as currently written allows some service of alcohol in movie theaters, but requires exclusion of minors from the premises. The new law will create a new, more family friendly, beer, wine and spirits license for theaters. The license will allow minors if certain conditions are met and approved by the Washington State Liquor Control Board, such as submission of an alcohol control plan outlining the methods to prevent minors from obtaining alcohol, similar to plans that are required for clubs and show venues that host all‑ages concerts. Theaters will also be required to meet food and service requirements, similar to restaurants, to qualify for the license. (Senate Bill 5607 as Passed by Legislature)Continue Reading Dinner and a Movie for the Whole Family!

Stoel Rives LLP offers its congratulations to Rick Garza on his appointment as Director of the Washington State Liquor Control Board. Today the agency issued a press release announcing the appointment will be effective June 1, 2013.   Garza will be assuming leadership in a time of unprecedented change – the agency is on the tail end

This week, a bill passed the Washington legislature that will allow a craft distillery to sell more of its product to customers visiting its distillery.

House Bill 1149 has been sent to Governor Inslee to sign in to law, amending RCW 66.24.145 to allow a craft distillery to sell a maximum of three liters of