WWI has put together this document explaining the effects of I-1100.
Click here to download it as a pdf.

What Does Initiative 1100 Really Mean FOR WINERIES?

Initiative 1100 will radically change the way wineries do business in Washington State.

Initiative 1100 seeks to privatize State liquor sales by closing down State liquor stores and allowing retailers of beer and wine to sell spirits, but what many wineries do not know is I-1100 would also repeal key legal protections that have helped our industry flourish and grow. Some Examples of what I-1100 means FOR WINERIES:

NO CASH ON DELIVERY

• Credit terms would be allowed on sales between wineries and retailers. Retailers would no longer be required to make payment at delivery. Instead, retailers would be allowed to subject wineries to undefined credit terms as a condition of the sale.

"PAY TO PLAY” AT RETAIL

• Retailers would be allowed to negotiate lower prices and quantity discounts with wineries.
• Grocery stores and other retailers would be allowed to charge wineries for the cost of advertising as a condition to purchasing and offering their wine in stores.
• Restaurants would be allowed to charge wineries for menu printing if they wanted to be on the wine list.
• Retailers and restaurateurs would be allowed to demand from wineries an unlimited amount of branded promotional items and would be entitled to demand these items as a condition to purchasing and offering their wine.

The Washington Wine Institute wants you to have all of the facts about the impact of I-1100 on our State’s wine industry. We will be providing additional information to the industry - please don’t hesitate to contact us with any questions about this Initiative and what it will mean for your winery.

To read the initiative in its entirety, visit: http://www.sos.wa.gov/elections/initiatives/text/i1100.pdf

This rulemaking order amends chapter 16-481 WAC by establishing a quarantine for European grapevine moth. This quarantine requires grapes, grapevines, and equipment and appliances used in the growing, packing or transporting of grapes and grapevines from infested states to be certified free of European grapevine moth. Commercially packed table grapes and seed extracted from grapes are excluded from this quarantine.

Reasons for this finding:
Timely prevention of intrusion into this state of a nonnative, invasive pest species on or in association with horticultural plants and fruit is of grave and immediate concern. The European grapevine moth, a potentially devastating pest that feeds primarily on flowers and berries of grapevines, was first detected in the Napa Valley of California at the end of last year’s growing season. This was the first detection of the moth in North America. It has since been detected in several more California counties and appears very likely to spread further, unless strong prevention measures are taken.

Introduction of European grapevine moth into Washington could severely impact grape production and disrupt Washington export markets for many crops, including cherries and red raspberries. For this reason we are implementing a quarantine on European grapevine moth that would require the inspection and, if necessary, treatment of grape plants and plant parts, and equipment or appliances used in the growing, harvesting, processing, or transporting of grape plants or plant parts from California, and any other state or territory of the United States or foreign county where European grapevine moth occurs.

Click here to read Attorney General Rob McKenna's letter regarding HR 5034.

CBSNEWS talks to WWI President Marty CLubb about HR 5034. Click here to download the article or click here to read the article online.

The wholesalers are really pushing H.R. 5034, a bill in Congress that would allow states to pass discriminatory and protectionist alcohol laws. While no member of the Washington delegation has signed on to this bill as of now, we need the wineries of this State to speak up and encourage our Representatives to actively oppose this bill.

Talking Points

• States already have broad authority to regulate the sale and control of alcohol, and Courts have consistently upheld that authority.
• H.R. 5034 would tilt the balance and allow states to pass discriminatory laws, which could have a devastating impact on Washington’s wineries who rely on open markets to ship their wines to customers in other states.
• New federal legislation is unnecessary and unwarranted as states can already accomplish their legitimate regulatory goals.

Contact your Member of Congress!

WWI has already been in contact with our Congressional delegation to encourage their opposition to HR 5034. Now, we need your voice to fight this national effort to take away your rights.

Please contact your Member of Congress and urge him or her to OPPOSE HR 5034.

https://writerep.house.gov/writerep/welcome.shtml

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Thank you,
The Board and Staff of the WWI

Recently, you received an email from us detailing our opposition to H.R. 5034, a measure before Congress that seeks to allow states to more easily pass discriminatory and protectionist alcohol laws.

Here’s a follow-up:

A majority of states’ Attorneys General, including ours, signed on to a letter encouraging Congress to re-enforce State regulatory authority over alcoholic beverages as provided by the 21st Amendment. WWI met with Attorney General Rob McKenna to share our concerns about H.R. 5034. We are very pleased to report that AG McKenna does not support the bill that is currently before Congress because of his concerns that it could negatively impact Washington wineries. The AG is very supportive of the WA wine industry and our ability to continue to have direct to consumer sales channels, not just in Washington state but around the country in those states that allow direct to consumer shipping. AG McKenna maintains his opposition to federal preemption of a state’s right to regulate alcohol.

Stay tuned for more updates!

Thank you,
The Board and Staff of the WWI

I am pleased to notify you that Gov. Chris Gregoire this morning announced her appointment of Linda Bremer as our new Board member. Linda’s term is effective May 1. Linda is filling the vacant Board position last held by Lorraine Lee, which runs until January 15, 2011.

Many of you will recognize Linda, as she served as the Liquor Control Board’s Information Technology Services Director from 2002 to 2005.

Linda, who is from Olympia, most recently served as the director of the state’s Department of General Administration from 2005 to 2010. During her tenure, the agency developed a new architecture for financial systems, successfully managed capital projects, created a fuel-efficient motor pool, and partnered with Intercity Transit to deploy a capitol shuttle system that is an effective method for getting visitors onto the campus.

"I'm pleased that Linda will bring her skills and expertise back to the Liquor Control Board," said Gov. Gregoire in her press release announcing the appointment today. "With her previous knowledge of the agency, she’ll be able to hit the ground running with ideas on how the agency can carry out its mission to prevent the misuse of alcohol in our communities and maintain our public safety."

Linda has more than 30 years of experience in management positions in the private sector and state government. She has substantial expertise in information technology; project management; business management tools; customer relations; partnership building; strategic planning; policy development; and human resource issues.

"I am excited about joining the Liquor Control Board," Linda said in the press release. "It is an exceptional organization. I plan to devote my business talents and skills, working closely with the other Board members, to continue to create great results for our state."

Linda has a bachelor’s degree in chemistry and an MBA in financial management. She is a 2000 alumnus of the National Hispana Leadership Institute. She has attended Harvard’s State and Local Government Program.

Please join me in welcoming Linda when she joins our agency in May!

Sincerely,

Sharon Foster
Board Chair

WWI has already been in contact with our Congressional delegation to encourage their opposition to HR 5034. Please check back to this website often for the latest developments.

Here is what WineAmerica had to say:

WineAmerica News Brief

PRESS RELEASE: HR 5034 (CARE ACT)

Proposed legislation recently introduced in Congress would offer federal backing to anti-competitive and discriminatory state alcohol beverage laws. Supported by the National Beer Wholesalers Association (NBWA), this damaging bill would put give wholesalers the ability to use state law to insulate themselves from competition. As an organization of more than 800 wineries in 48 states, we strongly oppose this effort. NBWA’s legislation would, without any justification, allow states considering alcohol beverage measures to virtually ignore the Commerce Clause and federal law in all but the narrowest circumstances. This is a dangerous precedent since courts and Congress have historically have struck a careful balance when considering state alcohol laws between the Twenty-first Amendment—that gives states authority over the importation, transportation and delivery of alcohol with their borders—and other parts of the Constitution. By seeking a blunt reconfiguration of the relationship between the Constitution and state alcohol law, NBWA is asking Congress to put a thumb on the scale in favor of their monopoly distribution system. The proposed legislation, while couched as addressing public safety and states’ rights, is merely a smoke screen for a power grab by beer wholesalers that would stunt competition, reverse years of long-established judicial precedent, and severely limit consumer choice.

Bill Nelson
President

www.wineamerica.org

WWI opposes HR 5034. We are working with WineAmerica to defeat this onerous bill. Details soon.

Legislators worked late into the night and wee hours of this morning before adjourning, today, on the last day of the 30-day Special Session. Before leaving town, the majority party in the House and Senate agreed to and passed a revenue package and budget.

We are very pleased to report that there are NO NEW WINE TAXES in the budget. 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.

WWI works tirelessly in Olympia, year round, to represent your interests and promote our industry to the Legislature. Thanks to your good work producing quality wines and creating in-state jobs, we have been able to generate a tremendous amount of goodwill for our industry with Democrats and Republicans, alike. We are thankful that the Legislature recognized the importance of this home-grown industry and resisted increasing taxes on us in this challenging economy.

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.

We want to thank you for your continued support of our efforts in Olympia.

If you have any questions about the final tax package or anything else, please don't hesitate to call or email us.

The WWI is the organization wineries turn to for regulatory support. With the new WWI website industry professionals have easy access to the latest legislative information and valuable resources. Check back often for updates and improvements as the site changes in response to user feedback.

Good news: the Wine & Beer Grocery Store Sampling Bill passed out of the House by a vote of 77-21 and is now headed to the Governor's desk for her signature! This bill 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.

We have heard from many WWI members that recently, wineries have been informed by WSLCB agents that you are prohibited from bringing your wine back into Washington State after it has been shipped to an out-of-state warehouse. As you can imagine, this has presented a problem for many wineries that find themselves with demand for supply, but no inventory in WA and unable to bring wine back into the State. We are working with the WSLCB and have asked that they reinterpret the statute so that wineries can continue this important practice. We will let you know when we have reached a resolution.

From the WSLCB— NOTICE: Price Filing Suspended Beginning March 1, 2009
No Printed or Electronic Price Filings are Required
The Washington State Liquor Control Board adopted a resolution to suspend price filing for one year and increase field audits. Effective March 1, 2009, electronic and paper filing requirements are put on hold; no submissions will be required during this transitional period. The Board is maintaining label approval and distributor appointment authority. You need to continue to submit label approval documentation.

Please click here for WSLCB Interpretive Statement - Return of exported Washington wine.

For more information, please visit the WSLCB Price Filing Web site.

It was announced earlier today that Rep. Dan Newhouse has been appointed by the Governor to serve as the new Director of the Department of Agriculture. Rep. Newhouse has been a tremendous supporter of the Washington wine industry and a great friend to the agricultural community for many years. His appointment takes effect February 18th. We wish him the best in his new position!

Today marks the first day of the 2010 Washington State Legislative Session! This short Session will run 60 consecutive days and is set to adjourn March 11, 2010.

As you know, WWI works ?round the clock in Olympia during the Legislative Session to protect your interests. Expect regular reports from the Hill, with details on wine-related legislation, updates on legislative activities and, when necessary, calls to action on important legislation. Later this week, check your inbox for details on our 2010 agenda and no new wine taxes defense.

We're at your service all Session long, so don?t hesitate to call or email us with your questions and comments. Call us at (360) 352-1557 or email us at info@washingtonwineinsitute.org.

We hope you can join us for the annual "Taste Our Best" event in Olympia! WWI is again partnering with the WA Restaurant Association to host a legislative reception showcasing WA wines and foods. The event will take place January 25th at 5pm in Olympia. The reception is always extremely well attended by Legislators and staff and an excellent opportunity to show off your wines while chatting with the people shaping policy in our state. If you are interested in participating, please contact Craig at info@washingtonwineinsitute.org for details.

Sharon Foster was appointed as the Washington State Liquor Control Board Chair, effective August 16, 2009.

Sharon is a retired self employed contract lobbyist who lives in Olympia. She retired in 2004 and was a lobbyist for 20 years. Among her clients were the YMCA, the Council of Youth Agencies, the California Wine Institute, NARAL, Community Mental Health, the Washington Restaurant Association, Oracle and Traffic Safety Education.

Prior to becoming a registered lobbyist Sharon was the State of Washington Director of the YMCA Youth and Government Program, which she ran for 10 years and an employee of the YMCA of the USA.

Sharon has been on the Heritage Park Board, overseers of the park area surrounding Capitol Lake on the campus of the Washington State Capitol, for 20 years and more recently a steering committee member of Oly 2012, a citizens group dedicated to enhancing the viability of downtown Olympia.

Sharon was raised in Mt. Vernon, WA and now resides in Olympia with her husband Dean. They have 5 children and enjoy many wonderful grandchildren.

In an action supported by WWI, the Liquor Control Board adopted a new policy on wine label approval.

Wineries are no longer required to apply for state label approval for your wines sold in Washington state. Effective August 19, 2009, the WSLCB will accept the federal Certificate of Label Approval (COLA) as label approval for beer and wine to be sold in the state of Washington. Producers will no longer be required to apply for state label approval. Wineries will still need to file their COLAs with the Board. Alcohol and keg products that do not require Federal label approval are approved to sell immediately.

Please contact WWI with any questions.

OLYMPIA, WA--(Marketwire - May 18, 2009) - New legislation signed last week by Gov. Christine Gregoire will go a long way to help improve, modernize and streamline Washington State's complicated laws and regulations impacting the state's burgeoning wine industry, the Washington Wine Institute said today.

"We had a very busy, but successful and productive agenda in 2009," said Jean Leonard, executive director. "Most of the liquor laws were adopted long before Washington's wine industry existed. It's taken a dedicated effort over many years by the Institute and our members, as well as other stakeholders and Legislators, to change these laws in positive ways that address the industry's current needs."

Leonard said the new laws, which go into effect July 26, will significantly revise the state's current liquor control system by addressing many "wine pricing" issues raised by the Costco litigation. The newly enacted legislation will help eliminate barriers to market, such as archaic "post & hold" requirements, mandatory minimum mark-up, and some issues regarding extension of credit. New laws also repeal some provisions that were adopted after prohibition to inhibit marketing of alcohol, Leonard said.

Institute president Marty Clubb of L'Ecole No. 41 Winery said the new legislation will provide increased opportunities for wine promotion and marketing as well as investments between wineries and retailers. These changes ultimately will have a positive impact on consumers, Clubb said. "Washington already has some of the most progressive laws on direct-to-consumer and retail sales," Clubb said. "Now our wineries will have some of the broadest privileges available to wineries anywhere in the country."

As in past years, the Institute worked closely with the Legislature, the Governor's office, the Liquor Control Board and other relevant stakeholders to make the laws work for the industry. Lorraine Lee, chairman of the state's Liquor Control Board, said the new legislation demonstrates a "watershed change" that is "progressive and forward thinking" for the industry. She said the new approach strives for "simplification, modernization and flexibility in our liquor laws," but reinforced that the Liquor Control Board believes it can reach these goals without sacrificing the agency's top priority, public safety.

Robin Pollard, executive director of the Washington Wine Commission, echoed that statement, saying that the Institute has worked carefully and strategically for changes to liquor law that enable Washington wineries of all shapes and sizes to grow and prosper while still supporting laws prohibiting dangerous or underage drinking.

The Institute also supported legislation requiring wines labeled "Washington" to contain 95 percent of Washington-grown grapes.

"With more than 600 wineries all across the state, the wine industry is a major contributor to Washington's economy," said Dan Newhouse, director of the Washington State Department of Agriculture. "While we may not be the largest volume producer in the country, it's our commitment to quality that makes us competitive. When consumers see Washington on the label, they know they are getting an excellent product made by skilled vintners from some of the finest grapes available."