Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

State Government & Tribal Affairs Committee

HB 1482

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Allows liquor licensees to ship wine directly to Washington consumers.
Requires licensees other than board-licensed retailers selling and shipping wine to Washington consumers to pay applicable taxes.
Modifies the wine shipper’s permitting process and required permit fee.

Background:

The term "wine" means any alcoholic beverage obtained by fermentation of fruits (grapes, berries, apples, et cetera) or other agricultural product containing sugar, to which any saccharine substances may have been added before, during, or after fermentation, and containing not more than 24 percent of alcohol by volume. This includes sweet wines fortified with wine spirits, such as port, sherry, muscatel and angelica that do not exceed 24 percent of alcohol by volume and not less than 0.5 percent of alcohol by volume.

Domestic and out-of-state wineries may ship wine to Washington residents ages 21 and over for personal use if the winery complies with existing law and requirements established by the Liquor Control Board (Board).Domestic wineries must be licensed by the Board and pay an annual license fee. To sell wine in the state to distributors and retailers, out-of-state wineries must obtain a certificate of approval from the Board. Domestic wineries and wineries with a certificate of approval may ship wine directly to Washington residents. Out-of-state wineries without a certificate of approval must obtain a wine shipper's permit. Wineries engaged in direct shipping must meet labeling, advertising, shipping, private carrier delivery, fees, taxes, and reporting requirements. Reports must be filed monthly.

Summary of Bill:

Licensees who manufacture, produce, blend, supply, furnish, import, wholesale, distribute, or retail wine may ship wine to persons in Washington ages 21 and over for personal use and not for resale. Licensees must be licensed by the Board and pay the annual license fee, or obtain a wine shipper's permit per the process established by the Board and pay a fee if they are located out-of-state. The entities eligible for a wine shipper's permit are expanded to include any licensees located out-of-state.

Licensees must meet labeling, shipping, private carrier delivery, and reporting requirements. Furthermore, licensees shipping wine to Washington consumers must annually report the total shipments they made directly to Washington consumers. However, if the shipment total is less than 10,000 cases a year, the board may require more frequent reports on up to a monthly basis.

An electronic application is required for obtaining a wine shipper's permit. The permit fee may not exceed $100 the first year, and $50 to renew the permit in subsequent years. Licensees who fail to comply with applicable state laws must have their permit suspended or revoked.

Licensees, other than retailers licensed by the Board, selling and shipping wine to Washington consumers must pay applicable taxes on the wine. Washington consumers are not responsible for these taxes.