SENATE BILL REPORT

                  SHB 3001

              As Reported By Senate Committee On:

              Commerce & Labor, February 23, 1998

Title:  An act relating to the furnishing of wine by wineries to nonprofit charitable organizations.

Brief Description:  Creating an exemption for wineries furnishing wine to nonprofit charitable organizations.

Sponsors:  House Committee on Commerce & Labor (originally sponsored by Representatives Honeyford, Delvin, Lisk and Cole).

Brief History:

Committee Activity:  Commerce & Labor:  2/19/98, 2/23/98 [DP].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Franklin, Fraser, Heavey and Newhouse.

Staff:  David Pringle (786-7448)

Background:  Liquor manufacturers, distributors or their agents may not give liquor to any person except as allowed by law.

Exceptions are provided to allow manufacturers to furnish samples to negotiate a sale, and to allow manufacturers or wholesalers to furnish wine under limited circumstances to not-for-profit groups solely for the purpose of studying wine and wine-making.  Breweries and wineries may furnish beer or wine at their breweries or wineries.  Donations of wine may be made to the Washington Wine Commission for promotional purposes.  With a permit, there are other limited circumstances where manufacturers, importers, distributers and agents may also furnish liquor, such as at trade fairs to board licensees or delegates.  Within the limited circumstances where liquor may be given to other organizations, it is subject to state liquor taxes.

Summary of Bill:  A domestic winery may furnish wine without charge to a nonprofit charitable organization.  The nonprofit=s use of the wine must be consistent with the purposes entitling it to nonprofit status.  The wine furnished is subject to state liquor taxes.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  These wineries can=t give away wine to these charitable nonprofits now, but they=ve decided that they=d like to be able to do so.  Perhaps sometime in the future other nonprofits should be considered for inclusion in this exception as well, but not now.

Testimony Against:  None.

Testified:  PRO:  Victoria Chiechi Hinze, Washington Wine Institute.