After the closest Governor's race in our history, the 2005 Session found the Senate, House and Governor's office in the hands of the Democrats for the first time since 1993. Facing a budget deficit, transportation infrastructure needs, and an election system in need of reform, the Legislature got to work and passed a record number of bills. Our Lobbyist, Jean Leonard, was on hand and working hard for the wine industry during this very busy Session.

No New Wine Taxes

With the state facing a projected $2.7 billion dollar shortfall, out-going Governor Locke proposed a budget that included a $.34 tax per 750ml bottle of wine. Not sure how this new legislature would react to tax increases, "no new wine taxes" quickly became a WWI legislative priority and continued to be so until the very last day of session.

Fortunately, with the help of our many supporters in the legislature, the WWI was successful in defeating any new increase in wine taxes. Given the enormity of the budget gap and the legislature's expressed interest in "sin taxes" this was a major victory and once again highlights the legislature's appreciation for the Washington wine industry.

State Funding Jumpstarts Industry Branding Campaign

An amazing accomplishment given the budget crunch, the WWI successfully secured state funds for the expansion of the industry's exciting new branding campaign. WWI was allocated a total of $300,000 in the final operating budget. The Washington Wine Commission will use the funds to launch an integrated advertising, marketing and publicity campaign to raise awareness for Washington wines in a targeted national market this holiday season.

"Wine Day" Takes Olympia by Storm

"Wine Day" in Olympia last February provided WWI members with an opportunity to meet with key legislators and update them on important issues facing the Washington wine industry. After a day of productive face-to-face meetings, legislators sipped the state's finest wines at the annual "Taste our Best" reception.

Clore Center Receives Boost from State

The Walter Clore Wine & Culinary Center in Prosser was successful in securing $2.25 million in state construction funds. This project will provide a boost to our industry and become a destination point to showcase Washington wine and industry successes. Construction funds were also allocated for a Walla Walla wine incubator project (a Port of Walla Walla request) to the tune of $1 million. The legislature was extremely responsive to our budget needs this session and the WWI was able to accomplish much within the restrictive limits of such a large deficit.

WWI Supports Sunday Sales, Grocery Store Sampling - WWI Supports Legislation that Increases Sales of Washington State Wine

This year with the WWI's support, the legislature passed House Bill 1379, which eliminates the prohibition of Sunday liquor sales and allows 20 state liquor stores to open on Sundays.

The WWI also supported Senate Bill 5682, which would have allowed grocery stores to provide sampling of wine or beer to promote sales. While the bill cleared the Senate, it failed to make it out of committee in the House. The WWI will continue to support this issue as it appears in upcoming sessions.

In other sampling news, the legislature passed House Bill 1431, which allows spirits, beer and wine restaurant licensees or their managers to conduct instructional courses regarding these products, as well as provide samples as part of the course. This is yet another measure that will improve the promotion of Washington wineries and their products.

Senate Bill 5090 which would have privatized liquor sales went nowhere, as it has in years past. The WWI's position on this bill remained neutral.

US Senators Visit Washington Wine Country

The WWI facilitated meetings with US Senator Patty Murray during her two recent trips to Washington state. The Senator toured Woodinville wine country with industry representatives this spring, concluding with a productive roundtable discussion of industry issues. Last month, Senator Murray visited Walla Walla and met with local winery representatives about new proposed fees through the Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau (TTB). The WWI also hosted Senator Maria Cantwell's agricultural policy advisor during a recent trip to the Tri-Cities, educating him about important industry issues. He plans to visit Washington wine country again in August.

WWI Opposes Proposed TTB Fees

The WWI recently launched a grassroots campaign to help defeat new user fees proposed under the TTB. If adopted, the user fees would have a devastating impact on Washington state's 350 wineries - the majority of which are small family businesses. The WWI distributed a media statement opposing the action and initiated an industry-wide letter writing campaign to help defeat the fees.

Direct Shipping Takes Center Stage

On May 16, the United States Supreme Court found state laws in Michigan and New York that permit in-state wineries to ship directly to consumers but which prohibit out-of-state wineries from doing so to be unconstitutional. As a result of this decision, affected states need to address the issue in their next legislative sessions. Although most of these legislatures are likely to pass bills permitting direct shipping with the typical safeguards-winery licensing, tax reporting, adult signature requirements, etc.-it is possible that some legislatures may enact laws that prohibit direct shipping to consumers all together, whether by in-state or out-of-state wineries. The WWI continues to be actively involved in this and many other issues and will provide updates to its members.