HOUSE BILL REPORT
SB 5011
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.
As Reported by House Committee On:
Commerce & Labor
Title: An act relating to removing the expiration date on chapter 302, Laws of 2006.
Brief Description: Removing the expiration date on the 2006 beer and wine distribution bill.
Sponsors: Senators Kohl-Welles, Parlette, Keiser and Rasmussen.
Brief History:
Commerce & Labor: 3/16/07, 3/23/07 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON COMMERCE & LABOR
Majority Report: Do pass. Signed by 6 members: Representatives Conway, Chair; Wood, Vice Chair; Condotta, Ranking Minority Member; Green, Moeller and Williams.
Staff: Joan Elgee (786-7106).
Background:
In Costco Wholesale Corp. v. Hoen, et al (2005), the U.S. District Court for the Western
District of Washington struck down Washington laws that allowed in-state, but not out-of-state, wineries and breweries to ship their products directly to retailers. Relying on a recent
United States Supreme Court case, Granholm v. Heald, the court in Costco held that these
laws discriminated against out-of-state wineries and breweries in violation of the Commerce
Clause.
In 2006, the Legislature extended the direct shipping privilege to out-of state wineries and
breweries. These provisions expire on June 30, 2008.
Summary of Bill:
The June 30, 2008, expiration date for the direct shipment of beer and wine to retailers by
out-of-state breweries and wineries is removed.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) Last year's bill continued the right to self-distribute, one of the most important
rights for Washington wineries. This particular provision is not at issue in the Costcolitigation and we are a little bit anxious about waiting until next year to remove the sunset
that would take away our right to self-distribute. The issues have been adequately addressed.
(Neutral) This issue is no longer part of the litigation and we are neutral as to whether the
expiration date should be removed.
(Opposed) None.
Persons Testifying: (In support) Jean Leonard, Washington Wine Institute.
(Neutral) Rick Garza, Liquor Control Board.