Accomplishments

Taxes/Regulation

WWI successfully protected our industry from any new taxes or regulations being placed on the industry during the 2018 Legislative Session.

Delivered to the Governor

HB 2517: Concerning Penalties for Alcohol Manufacturers Who Have Committed Violations as Part of Their Ancillary Activities
HB 2517 protects every winery’s business model by separating any violations that happen in the retail side of the winery from the wholesale and manufacturing activities. The new law redefines retailing activities where manufacturers are interfacing with the public as “ancillary activities,” charges the Liquor & Cannabis Board with adopting a penalty schedule for violations incurred while performing ancillary activities, makes it clear that these penalties may not include the suspension or revocation of the winery license and thereby allows the winery to continue shipping and manufacturing wine in the event of a violation from a retail transaction.

HB 2699: Exempting Alcohol Manufacturers from the Food Storage Warehouse License
HB 2699 exempts alcohol manufacturers and distributers licensed under RCW 66.24 from the WSDA issued food storage warehouse license, removes a $200 annual cost on any winery storing wine offsite that is agreed between WSDA and the industry to not be necessary, and states that the exemption only applies if alcohol is the only product being stored in the warehouse.

SB 5251: Reigniting Statewide Tourism Marketing and Promotion
Until 2018, Washington State was the only state in the nation without a statewide tourism marketing effort. A large and passionate coalition of impacted industries, including WA wine, pushed for the past seven years to create a new approach that would stay in place when future state budget cuts take place (which is how we lost our first state tourism office in 2011). We are proud to be part of helping get SB 5251 to the Governor’s desk this year. The bill creates a private/public partnership that will reignite our statewide tourism marketing, installs a funding mechanism of a 2-to-1 private-to-public match, creates a new board of directors to collectively lead on Washington State’s tourism marketing decisions, and finally (and importantly for our industry) the bill has specific language that requires this new board to focus tourism marketing on rural economies, where many of our wineries are located.

Taxes/Regulation

WWI successfully protected our industry from any new taxes or regulations being placed on the industry during the 2017 Legislative Session

Delivered to the Governor

SB 1718 – Nonprofit Private Auction Permit
Creates a new permit allowing for nonprofits to host private wine auctions where Washington wine may be auctioned off to the highest bidder. Retailers, private collectors, and individuals from around the country are examples of those who may participate in the auction. Wine that is part of the auction may be sampled by attendees. This bill is a huge help to all of our regional wine associations, The Auction of Washington Wines, and other nonprofits who have struggled in past years with an intense amount of paperwork required with the past approach to hosting these events.

HB 1038 – Increasing the number of remote tasting room locations per domestic winery license
Increases the number of allowed remote retail tasting room locations (outside of the winery location) for a domestic winery licensee from 2 to 4 locations.

Taxes/Regulation

WWI successfully protected our industry from any new taxes or regulations being placed on the industry during the 2016 Legislative Session

Delivered to the Governor

SB 6470 – Modifying special occasion license permits, allowing sales of private collections of wine
Creates in state statute the allowance for wineries to take orders and collect payment while participating in special occasion licensed events (charity/nonprofits). SB 6470 also legalizes the ability for an individual to sell a collection of wine to another individual or licensed retailer (if that retailer’s licensed allows such a purchase).

HB 1763- Regulating music licensing companies
Provides a new level of transparency and appropriate business practices/behavior for music licensing companies (BMI, ASCAP, SESAC) and agents working on behalf of the licensing company.

Delivered to Governor:

ESSB 5596- Winery off premise private event permit (WWI legislation)
Establishes a new permit for wineries that will allow for off-premise, private events where a winery may deliver previously sold wine, provide tastings of their wine, and sell wine for off premise consumption. The permit costs $10, must be applied for 10 days prior to the event, and is capped at 12 permits per winery each calendar year.

SB 6057 – B&O tax incentive extension for food processors (WWI Priority Legislation)
Extends a B&O tax incentive till 2025 for food processors’ (wine among others) sales made outside of Washington State.

HB 1004 – Allowing wine tastings by students
Allows for student tasting of wine 18-21 years old at state and regional universities (joining community and technical colleges) that are in a viticulture or enology program. Students in a sommelier or wine business class that are 18 years and older are also authorized to taste wine under this new privilege.

SHB 1124 – Providing samples of wine or beer for on premise licensees
Allows on premise licensees (ex: restaurant) to provide a free, 2 oz sample (not to exceed 6 oz total) of wine or beer when requested by a patron 21+ years old.

Delivered to Governor:

SHB 1742- Growlers of wine
Allowed a domestic wineries to sell wines of their own production at their winery or tasting room in sanitary containers (growlers) filled at the tap by the seller.

ESHB 2680-Caterer’s License
Established a new caterer’s license that allows the holder of the license to take orders for, serve and sell spirits, wine and/or beer in any part of the licensed premise, if the event location does not already have a permit to sell liquor. There is an annual license fee of $200 for wine, $200 for beer or $1,000 for wine, beer and spirits.

ESSB 5045-Wine or Beer in Day Spas
Created a permit that would allow a day spa to serve one glass of wine or one beer, free of charge. Defined day spa as a business that offers at least three of four types of services: hair care, nail care, skin care and body care. The fee for the permit is $125 per year.

SB 5310- Senior Center License
Created a liquor license for nonprofit senior centers to sell spirits, beer and wine at retail for on premise consumption. The fee for the license is $250.

Here are the priority bills that passed the 2013 Legislative Session and were signed by the Governor:

• Senate Bill 5674 – Expanded the Farmer’s Market Wine/Beer Sampling Program
• Senate Bill 5774 – Authorized students under the age of 21 to “taste” wine in Community College (2 year) viticulture and enology programs
• Senate Bill 5517 – Removed the 50% requirement for grocery sales for a wine and beer tasting endorsement
• Senate Bill 5607 – Created a beer, wine and spirits theater license, allowing certain small theaters to serve alcohol
• House Bill 1001 – Created a wine and beer theater license for theaters with up to four screens.

B&O Tax Credit for out-of-state sales

WWI worked hard to extend a fruit and vegetable manufacturing tax exemption that was set to expire July 1, 2012. Wineries currently receive this business and occupation tax exemption for out-of-state (export) sales. If the exemption had expired on July 1, many wineries would have seen an increase on the cost of exporting wine out of state. Wineries looking to expand production and enter new markets outside of Washington would have lost a valuable tool in that effort.

Capital Budget Request: $5 Million for Wine Science Center

WWI worked with our colleagues at the Port of Benton, City of Richland, and WSU on a $5 million capital budget request for the Wine Science Center. The effort was successful and this funding moves the Wine Science Center into the next phase of construction.

SB 5788 “Omnibus Stakeholder Bill”

SB 5788 contained WWI language that:

• allowed you to pay a reasonable booth fee to the charitable organization hosting the event for their coordinating services.
• helped to alleviate the headaches associated with payment for your wine at the event.
• instead of dealing with the now commonplace “check swap”, the charity is now able to pay you for your wine sold at the close of the event.
• resolved an issue with Agents Licenses by making it clear in the law that wineries and their employees do not need an Agents License to sell their own wine.
• helped WAWGG and other industry trade shows by adding a provision that will allow barrel vendors and other liquor related vendors to provide wine, beer or liquor samples at trade events for better analysis of their products.

SB 5173/HB 1227 “Corkage Fees”

HB 1227 and SB 5173 allowed wineries and restaurants to participate together in corkage waiving programs to promote local tourism. This legislation came about from a liquor board enforcement action that put a stop to the popular “Corkage Free Zone” in Yakima.

HB 1172/ SB 5029 “Farmer’s Markets Wine Tasting

The bill established a pilot program for beer and wine tastings at farmer’s markets.

No wine taxes!

During a challenging Session with tax increases on the table, taxes on wine were not increased!  As you know, in this deficit year where the Legislature has booked $800 million in new revenue, it was our top priority to stave off tax increases on wine.

Unfortunately, some of our friends in the beer industry did not fare as well.  Despite strong advocacy and leadership from their representatives, the Legislature imposed a 50 cent a gallon increase on beer (microbrews exempt), which results in about a 28-cent increase on a six pack.

Grocery Store Sampling Allowed

The Wine & Beer Grocery Store Sampling Bill was signed into law by the Governor! This bill, that will allow grocery stores to obtain a permit from the WSLCB to conduct tastings in their stores, has been a long time coming, first introduced in 2007, then morphed into a pilot and now finally on its way to becoming law. It’s been a lot of work with some terrific partners– the grocers, breweries, distributors and our wonderfully supportive legislative sponsors. As we’ve said all along, we strongly believe that if WA consumers have the opportunity to taste your wines, they will buy them.  We’re also pleased to report that our amendment to allow wineries to pour and participate at the tastings was included in the final version of the bill.  The bill went into effective on June 10, 2010.

Wine law modernization continues

We are very pleased to report that WWI’s priority bill, HB 2040, was passed by the Legislature and signed into law! This bill was the product of much work with an interim Legislative Committee on Beer & Wine Regulation and stakeholder negotiations. The resulting new law is progressive and significant reform of WA wine law!

HB 2040:  

• Allows you to provide branded promotional materials of nominal value (like t-shirts, lighters, pens) to your favorite retailers
• Allows for investment between the tiers, so that you can invest in a restaurant or hotel–or a restaurant or hotel can invest in your winery
• Allows you to pour and participate at events holding a special occasion permit and at private clubs
• Addresses COSTCO lawsuit pricing issues, eliminating the 10% minimum mark-up and post & hold requirement

Off-site storage and distribution allowed

WWI’s other priority piece of legislation, allows you to have one off-site storage location for your wine from which you can distribute. It also continues the ban on extension of credit but allows willing wineries and retailers to use electronic fund transfers instead of cash.

95% Washington Grapes required

WWI supported this WA Association of Wine Grape Growers (WAWGG) bill and worked with WAWGG to craft language that would further the shared goal of reinforcing the message of quality as the universal characteristic of Washington wines while providing adequate protections for wineries producing in WA. This new law requires that 95% of the grapes in a wine labeled “Washington State” be from Washington (or a WA AVA). The law applies to wine produced from grapes harvested after 2009. Port and dessert wines are exempt from the law.

Wine in Art Galleries and Wedding Boutiques:

WWI supported legislation that will allow art galleries and wedding boutiques to serve one glass of wine to their customers. Business owners testified before Legislative Committees that they would like to support local wineries while providing this new perk for their customers.

Wine Sales at the Legislative Gift Center:

WWI worked with the sponsor of and supported this bill that will allow for the sale of Washington wines at the Legislative Gift Center on the Capitol Campus in Olympia. The WWC will assist the Gift Center in selecting wines for sale. If you are interested in selling your wine at the Gift Center, contact the WA Wine Commission for details on how the program will work.

Home-Made Wine & Beer:

WWI worked with the WA Brewers’ Guild on a bill that was brought forward by home brewers, which will allow up to 20 gallons of home-made wine and beer to be removed from the home for private consumption. Home-made beer and wine can be used for organized affairs, exhibitions or competitions.

No New Taxes:

Finally, WWI met with key members of the Legislature to fight any new taxes on wine. As you know, the State ass grappling to address a budget deficit of historical proportions and all new revenues were on the table. Taxes were not raised on your product in this challenging economic climate.