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  2008 Washington Wine Institute Update

WWI is hard at work in Olympia on behalf of the Washington wine industry, wineries small and large throughout the State. This is a short and fast-paced 60 day Session; our agenda is focused and deliberate, with an eye toward delivering results to the industry in 2008. Here's a quick update on our Legislative efforts.

House Bill 3176, Fulfillment Services:

WWI spearheaded this legislation that would expand the services allowable at a bonded wine warehouse. This bill would authorize bonded wine warehouses to provide services that include packaging and repackaging, bottle labeling, creating gift baskets and shipping wine orders direct to consumers. This bill was up for a hearing yesterday in the House Commerce and Labor Committee and I and friends from Columbia Industries wholeheartedly supported the bill. If you'd like to learn more about this legislation visit:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3176&year=2007

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Senate Bill 6770 & House Bill 3192, Omnibus Bill:

WWI has collaborated with other relevant stakeholders in Olympia to craft an "omnibus" bill that relates to alcoholic beverage regulations. Working with representatives from the Restaurant Association, WA Brewers Guild, WA Beer & Wine Wholesalers Association, retail groups and WSLCB, we were able to secure sponsors and support for a bill that, once again, expands your ability to market your wine. SB 6770 / HB 3192:

  • Expands winery privileges to allow for "on-premise" consumption at winery secondary tasting room locations
  • Allows wineries to donate to 501(c)6 organizations (like winery associations)
  • Includes language mirroring the bonded wine warehouse bill in the House allowing fulfillment services (see HB 3176 above)
I testified in support at this bill's hearing in both the Senate and House. Our testimony, along with the testimony of the other bill collaborators, was received favorably by both Committees. We will continue to work for this legislation and will keep you apprised of its progress. For more information, including the bill itself, click here:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6770&year=2008 and
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3192&year=2007
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House Bill 2076, Grocery Store Sampling:

As you may be aware, WWI has been actively involved in a Grocer Association led legislative effort to allow for limited wine and beer sampling in grocery stores. The bill has been met with much resistance in years past, but has new legs this Session. In its current form, the bill would allow for a pilot program, carefully monitored by the WSLCB. It is our hope that this version will be more palatable for reluctant Legislators and we will finally see its passage.
The Grocers have issued a "call to action" to counter a flood of calls and emails Legislators have received in opposition to the bill and we hope you will contact your Legislators to urge them to vote yes on House Bill 2076. We know that the more people have the opportunity to sample wonderful Washington wines, the more people will purchase WA wines for their enjoyment. You can view House Bill 2076 by clicking here:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=2076&year=2008

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Costco Ruling:

In other news, a ruling was issued in the Costco case early this week. As you know, WWI's direct interest in the litigation was resolved when the Legislature, at WWI's request, passed a law that preserved your right to self distribution, and that issue was not appealed. Our staff attorney reports that the Federal Appeals Court affirmed the District Court's decision that: (1) the State's ban on retailer-to-retailer sales did not violate federal anti-trust law, and (2) the State's "post and hold" regulations violated federal anti-trust law.
The Court reversed the District Court's decision on the remaining issues finding that the State's ban on central warehousing, volume discounts, credit terms, and delivered prices, and its regulations regarding minimum mark-up and uniform pricing did not violate federal anti-trust law. How the Court arrived at its decisions involves complex legal analysis, and what actions may be taken in response are still unknown.

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Other Bills:

Our work doesn't end with "our" bills. There are hundreds of wine related, grower related, and general business related bills that WWI tracks, monitors and when appropriate, we weigh in. Here's a glimpse at other bills we are currently engaged with. If you have any questions regarding any of these bills and the WWI position, please don't hesitate to contact our office.

HB 2380-Providing relief for businesses for streamlined sales and use tax agreement compliance costs: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=2380&year=2007

HB 2501-Increasing the size of containers holding malt liquor that can be sold by beer and/or wine specialty shops: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=2501&year=2008

HB 3160-Addressing the availability of nutrition information: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3160&year=2008

HB 3295-Concerning wine label requirements:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3295&year=2008

SB 6190-Creating a regulatory exemption for electrical equipment used in the production of wine: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6190&year=2007

SB 6384-Allowing out-of-state online retailers to ship to consumers in Washington State: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6384&year=2008

SB 6407-Increasing the small business credit for the B&O tax: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6407&year=2008

SB 6505-Concerning nutrition labeling of food:
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6505&year=2008

SB 6659-Addressing the availability of nutrition information: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6659&year=2008

SB 6786-Creating a legislative task force on menu labeling: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6786&year=2008

SB 6831-Excise tax collections from small domestic wineries: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6831&year=2008


A big thank you to those who joined us in Olympia this week for the annual "Taste Our Best" reception, co-hosted with the Washington Restaurant Association. The event was a success and Legislators and staff enjoyed sipping WA wines and conversing with WA winemakers. Our industry is truly a favorite of this Legislature!

Please direct any questions or comments to Anne McGrath at the Washington Wine Institute office. We thank you for your support and could not do our work without you.

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