HOUSE BILL REPORT

SSB 5596

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 & Gaming

Title: An act relating to creating a special permit by a manufacturer of wine to hold a private event for the purpose of tasting and selling wine of its own production.

Brief Description: Creating a special permit for a manufacturer of wine to hold a private event for the purpose of tasting and selling wine of its own production.

Sponsors: Senate Committee on Commerce & Labor (originally sponsored by Senators King, Hewitt, Kohl-Welles and McAuliffe).

Brief History:

Committee Activity:

Commerce & Gaming: 3/17/15, 3/23/15 [DPA].

Brief Summary of Substitute Bill

(As Amended by Committee)

  • Authorizes the Liquor Control Board to issue a special permit to a wine manufacturer, allowing such manufacturer to conduct an invitation-only wine tasting and sales event at a specified location on a specified date.

  • Requires that the wine served or sold at the event be the product of the hosting winery.

HOUSE COMMITTEE ON COMMERCE & GAMING

Majority Report: Do pass as amended. Signed by 9 members: Representatives Hurst, Chair; Wylie, Vice Chair; Condotta, Ranking Minority Member; Holy, Assistant Ranking Minority Member; Blake, Kirby, Scott, Van De Wege and Vick.

Staff: Thamas Osborn (786-7129).

Background:

In addition to issuing liquor licenses to commercial entities, the Liquor Control Board (LCB) issues a variety of special permits for selling, serving, and handling alcohol at specified events or to persons or entities that do not hold a liquor license. Many special permits are of limited duration for a specified purpose or event, or are issued for a purpose falling outside the commercial activities ordinarily engaged in by a licensee.  For example, special permits are issued to allow for the consumption of liquor at banquets and to allow a manufacturer or distributor to donate liquor to delegates and guests at conventions and international trade fairs.  Unless a fee is specified in statute, the fees for permits are generally established by the LCB by rule.

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Summary of Amended Bill:

The LCB is authorized to issue a special permit to a wine manufacturer, authorizing such manufacturer to conduct a wine tasting and sales event at a specified location on a specified date. The event may not be open to the general public, and the wine tasted or served must be the product of the hosting winery. The permit is subject to a fee of $10 per event, and the application for the permit must be submitted at least 10 days prior to the event. Wineries receiving the special permit are limit to hosting a maximum of 12 such events per year.

Amended Bill Compared to Substitute Bill:

The amended bill limits the number of special wine tasting events a winery may host to 12 per year.

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Appropriation: None.

Fiscal Note: Available.

Effective Date of Amended Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) The bill would allow wineries to host off-premises wine tasting events for members of wine tasting clubs. This would allow such wineries to expand their markets by hosting wine tasting events in a variety of locations and thus reach out-of-town customers. This would be of economic benefit to small rural wineries that want to host events in urban areas.

(Opposed) None.

Persons Testifying: Senator King, prime sponsor; and Josh McDonald, Washington Wine Institute.

Persons Signed In To Testify But Not Testifying: None.