03/25/1996 01:30 PM Senate JUD

       SB 312 LICENSEE BUYING LIQUOR FROM PACKAGE STORE                       
                                                                              
 SENATOR TAYLOR, sponsor of SB 312, informed committee members when            
 the Alcohol Beverage Control Board bill was passed last year, it              
 had the unintended effect of banning a practice common among                  
 retailers.  Bars and restaurants would often purchase alcohol from            
 businesses, such as COSTCO or from a retail package store, when               
 wholesale delivery was not on a daily basis.  That question was               
 raised during hearings, but the committee was reassured the                   
 unintended effect would not occur, however that advice was in                 
 error.  SB 312 cleans up the misinterpretation and amends last                
 year's bill to allow a person holding a dispensary, restaurant,               
 club, or package store license to purchase from a package store, as           
 long as the package store obtained its product from a wholesaler.             
 It retains the protection against gray market goods while restoring           
 the ability of bars and restaurants to purchase from package stores           
 and discount outlets.                                                         
                                                                               
 SENATOR ADAMS stated this bill corrects an oversight in SB 87, and            
 moved and asked unanimous consent that SB 312 be moved out of                 
 committee.  There being no objection, the motion carried.                     
                                                                               
 SENATOR TAYLOR noted there were no witnesses to testify on SB 312,            
 and that Mr. Gilman had called in support of the measure.