H-4098              _______________________________________________

                                                   HOUSE BILL NO. 2031

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Haugen, S. Wilson, Vekich, J. King, Rayburn, Hastings, Betrozoff, Miller, Hankins, Baugher, Zellinsky, Jacobsen and Isaacson

Read first time 1/24/86 and referred to Committee on Agriculture.

AN ACT Relating to domestic wineries; and amending RCW 66.24.170 and 66.28.040.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 23C added to chapter 62, Laws of 1933 ex. sess. by section 1, chapter 217, Laws of 1937 as last amended by section 4, chapter 85, Laws of 1982 and RCW 66.24.170 are each amended to read as follows:

          (1) There shall be a license to domestic wineries; fee to be computed only on the liters manufactured:  One hundred thousand liters or less       per year, one hundred dollars per year; over one hundred thousand liters to seven hundred fifty  thousand liters per year, four hundred dollars per year; and over seven hundred fifty thousand liters per year, eight hundred dollars per year.

          (2) Any applicant for a domestic winery license shall, at the time of filing application for license, accompany such application with a license fee based upon a reasonable estimate of the amount of wine liters to be manufactured by such applicant.  Persons holding domestic winery licenses shall report annually at the end of each fiscal year, at such time and in such manner as the board may prescribe, the amount of wine manufactured by them during the fiscal year.  If the total amount of wine manufactured during the year exceeds the amount permitted annually by the license fee already paid the board, the licensee shall pay such additional license fee as may be unpaid in accordance with the schedule provided in this section.

          (3) Any domestic winery licensed under this section shall also be considered as holding,  for the purposes of selling wines of its own production, a current wine wholesaler's license under RCW 66.24.200 and a wine retailer's license, class F, under RCW 66.24.370 without further application or fee.  Any winery operating as a wholesaler or retailer under this subsection shall comply with the applicable laws and rules relating to such wholesalers and retailers.

(4) A domestic winery that also manufactures other liquor products pursuant to a license under this chapter is entitled to sell liquor of its own manufacture at retail at the manufacturing site, acting as an agent of the board pursuant to a contract with the board and subject to all taxes of the state.  This authority is subject to reasonable criteria established by the board.  In establishing this criteria, the board shall consider the adequacy of the facility and the number of persons visiting the facility.

        Sec. 2.  Section 30, chapter 62, Laws of 1933 ex. sess. as last amended by section 2, chapter 13, Laws of 1983 and RCW 66.28.040 are each amended to read as follows:

          Except as permitted by the board under RCW 66.20.010, no brewer, wholesaler, distiller, winery, importer, rectifier, or other manufacturer of liquor shall, within the state, by himself, his clerk, servant, or agent, give to any person any liquor; but nothing in this section nor in RCW 66.28.010 shall prevent a brewer, wholesaler, winery, or importer from furnishing samples of beer or wine to authorized licensees for the purpose of negotiating a sale, in accordance with regulations adopted by the liquor control board, provided that the samples are subject to taxes imposed by RCW 66.24.290 and 66.24.210; nothing in this section shall prevent the furnishing of samples of liquor to the board for the purpose of negotiating the sale of liquor to the state liquor control board; nothing in this section shall prevent a brewery, winery, or wholesaler from furnishing beer or wine for instructional purposes under RCW 66.28.150; nothing in this section shall prevent a winery or wholesaler from furnishing wine without charge to a not-for-profit group organized and operated solely for the purpose of enology or the study of viticulture which has been in existence for at least six months and any wine so furnished shall be used solely for such educational purposes, provided that the wine furnished shall be subject to the taxes imposed by RCW 66.24.210; nothing in this section shall prevent a brewer from serving beer without charge, on the brewery premises; ((and)) nothing in this section shall prevent a domestic winery from  serving wine without charge, on the winery premises; and nothing in this section shall prevent a domestic winery from serving, without charge, servings of one-quarter ounce or less of liquor produced at the winery.