WSR 14-03-031
PROPOSED RULES
LIQUOR CONTROL BOARD
[Filed January 8, 2014, 10:58 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 13-22-090.
Title of Rule and Other Identifying Information: WAC 314-24-070 Wine returned to Washington.
Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on February 26, 2014, at 10:00 a.m.
Date of Intended Adoption: March 5, 2014.
Submit Written Comments to: Karen McCall, P.O. Box 43080, Olympia, WA 98504, e-mail rules@liq.wa.gov, fax (360) 664-9689, by February 26, 2014.
Assistance for Persons with Disabilities: Contact Karen McCall by February 26, 2014, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule making is a result of a stakeholder petition for rule making. This rule making would allow wine that was originally produced at a Washington domestic winery and subsequently removed to an out-of-state regional distribution center to be returned to Washington for distribution without being physically trucked to the producing winery before being delivered to the appointed Washington wine distributor.
Reasons Supporting Proposal: This rule making will provide clarity to winery licensees on bringing bottled wine back into Washington state.
Statutory Authority for Adoption: RCW 66.08.030.
Statute Being Implemented: RCW 66.24.170.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state liquor control board, governmental.
Name of Agency Personnel Responsible for Drafting: Karen McCall, Rules Coordinator, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1631; Implementation: Alan Rathbun, Licensing Director, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1615; and Enforcement: Justin Nordhorn, Enforcement Chief, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not required.
A cost-benefit analysis is not required under RCW 34.05.328.
January 8, 2014
Sharon Foster
Chairman
AMENDATORY SECTION (Amending WSR 12-24-091, filed 12/5/12, effective 1/5/13)
WAC 314-24-070 Domestic wineries—Purchase and use of bulk wines, brandy or wine spirits—Import permit required—Records—Wine returned to Washington.
(1) Domestic wineries may purchase and receive under federal bond from any holder of a domestic winery license, holder of the fruit and/or wine distillery license provided in RCW 66.24.140, or out-of-state holder of a federal winery or fruit distillery basic permit, bulk wine, brandy or bulk wine spirits manufactured or produced by such holder, and use the same in the manufacture or production of wines: Provided, That every domestic winery which imports wine, brandy or wine spirits manufactured outside the state of Washington for use as authorized in this section must first be in possession of a permit issued by the board, in accordance with RCW 66.20.010(5) of the Washington State Liquor Act. Applications for such permits must be submitted to the board in writing. Such permits expire at the end of the board's fiscal year, and are subject to renewal at that time upon written request and remittance of said annual fee. Wine manufactured or produced from one kind of fruit or berry may not receive wine, brandy or wine spirits manufactured or produced from another kind of fruit or berry. Such brandy or wine spirits so purchased shall be used exclusively and only for the purpose of adding wine spirits to wines. In those cases where the holder of a domestic winery license shall also hold such fruit and/or wine distillery license, then, and in such cases, such domestic winery may use brandy or wine spirits manufactured or produced under such distillery license as a wine spirits addition in the manufacture or production of wine by such holder of the domestic winery license.
(2) Any domestic winery using wine, brandy or wine spirits as provided in subsection (1) of this section, shall make and file with the board, not later than the tenth day of each month upon forms prescribed and furnished by the board, a report showing all transactions of such domestic winery in the purchase and/or use of wine, brandy or wine spirits as provided in said subsection (1), and shall retain one copy of such report in its own files, and shall keep and preserve for a period of not less than two years any bills of lading or other documents supporting such report. One copy of the bill of lading covering such sale and shipment to a domestic winery is to be forwarded to the board by the shipping winery or fruit distillery, at the time of such shipment.
(3) A domestic winery may ship Washington wine out of and may return such wine to Washington state for ultimate sale. The following conditions apply:
(a) The wine is produced and bottled in Washington by a licensed winery.
(b) The export shall be from the licensed winery and returned to the same entity, a licensed wine distributor or bonded wine warehouse.
(c) The returned wine must not have been altered in any way, with the exception of sparkling wine.
(d) A domestic winery ((returning)), a licensed wine distributor, or bonded wine warehouse directly receiving previously exported Washington wine must comply with tax collection and tracking requirements initiated by the liquor control board.
(e) A domestic winery, a licensed wine distributor, or bonded wine warehouse directly receiving previously exported Washington wine must keep on file for audit purposes clear source records (shipping documents, etc.) with reporting documents. Records need to indicate what wine was returned to the state that was previously reported as an export (including number of cases and gallons).