*** CHANGE IN 2012 *** (SEE INITIATIVE MEASURE NO. 1183) ***

(1) Within sixty days after the recommendation of a proposal under RCW 66.70.030, the Washington state liquor control board may accept that proposal and enter into a long-term contract with that entity for the lease of the business, facilities, and assets associated with the warehousing and distribution of liquor in the state. The contract must grant the exclusive right to distribute spirits in the state for the period of the contract. The contract must include enforceable performance standards and minimum financial returns to the state. The contract must provide a provision that allows the state to terminate the contract should specific performance standards or financial returns to the state not be realized. The contract must provide for a reasonable termination notification process as well as financial terms of termination should termination of contract take place.

     (2) If the state receives an up-front payment of one hundred million dollars or more as a result of accepting a proposal from the procurement process in RCW 66.70.030, the contract must provide that the private entity place the up-front payment into irrevocable trust with the state being the beneficiary. The contract must provide that the trust be created in a manner that the state may not receive more than one-sixth of the up-front payment placed into the trust in any fiscal year.

     (3) The contract must contain provisions that the Washington state liquor control board maintains the exclusive authority to select products and determine which products will be carried in state and contract liquor stores.

     (4) The contract must contain provisions that the Washington state liquor control board must set the prices of liquor for sales in state and contract liquor stores as well as sales to licensees.

     (5) The contract must contain a provision that any financial deficiencies or losses of the private entity contracting for the warehousing and distribution of liquor in the state must not be compensated for in any way by the state, contract [liquor] stores, consumers, or licensees.

[2011 1st sp.s. c 45 § 3.]

NOTES:

     Effective date -- 2011 1st sp.s. c 45: See note following RCW 66.70.030.