Thanks @Francois Royal for the info.
I guess as an update to the fallout of all this, pretty much all the LCB agent was looking for was for me to get a Class 5 liquor permit, which in Washington state is a permit that states the alcohol you are using in your production and in what quantities and where you are buying it. It costs me $10/year and has so far kept them off my back.
I also learned a lot about the law of alcohol in confections and know how to answer the question if someone comes knocking again. One thing the LCB agent got wrong during his inquiry was asking what the alcohol by volume was within the confection, which according to the law doesn’t apply, it’s alcohol by weight. Regardless, moving forward I now state on all ingredient labels where alcohol is present, “This product contains alcohol, but less than 0.5% per weight of the product”.
I did learn that the particular agent that I was dealing with last year got redistributed within the agency and isn’t an LCB agent anymore. So at least I don’t have to worry about him moving forward.
I think it is important to at least have a basic knowledge of liquor laws within your state and how they apply to confections. And when in doubt, if they ask if you add the alcohol during the cooking process you always say yes...
