HOUSE BILL REPORT

SSB 6178

As Amended by the House

BYSenate Committee on Agriculture (originally sponsored by Senators Benitz, Barr, Hansen, Anderson, Bailey and Newhouse)

Implementing the vinifera grape growers' assessment.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass with amendment.  (10)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Baugher, Chandler, Doty, Holm, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE MARCH 2, 1988

BACKGROUND:

The Washington Wine Commission was established by the Legislature in 1987.  The act creating the Commission establishes temporary funding for the Commission and provides for the permanent funding of the Commission.  As part of the permanent funding of the Commission, an assessment on sales of packaged Washington wines will be levied beginning on July 1, 1989, at a rate of 2 cents per gallon.  The act requires that an assessment be levied on grape growers beginning July 1, 1989, which is sufficient to raise an amount equal to the receipts of the assessment established on Washington wines.  The method of calculating and collecting the assessment must be determined under legislation enacted during the 1988 session of the Legislature.

Of the 11 voting members of the Commission, 5 are growers of vinifera grapes.  If the assessment on grape growers is not in effect on July 1, 1989, the positions on the Commission designated for these growers will cease to exist.

SUMMARY:

On or before September 15, 1988, a referendum must be submitted to the state's vinifera grape growers.  The referendum is for the approval of continued grower participation on the Washington Wine Commission and approval of a proposed annual assessment of $3 per ton on all vinifera grapes grown in the state.  If approved, the assessment will take effect on July 1, 1989.

The assessment and participation are approved if: (1) at least 51% of the growers, by number, who reply in the referendum or at least 51% of the growers, by acreage, who reply in the referendum vote affirmatively; and (2) 30% of all vinifera grape growers and 30% of those by acreage have been represented in the referendum.  If the referendum is not approved, the assessment will not be levied and the Commission must discontinue specifically fostering the interests of vinifera grape growers.  The preparation of lists of growers for this and future referenda is provided.

If the assessment is approved, the Director of Agriculture must adopt rules regarding the payment and collection of the assessment.  Moneys collected from the assessment must be deposited in a separate account in the name of the Commission.  Expenditures and disbursements from the account may be made without legislative appropriation.  The assessment is a personal debt of each person assessed.  A fee equal to 10% of any unpaid assessment may be added to any delinquent assessment and the Commission may bring civil actions for the collection of such assessments.

Fiscal Note:      Requested February 11, 1988.

House Committee ‑ Testified For:    Jeff Gordon and Jim Halstrom, Washington Association of Wine Grape Growers.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    (1) The production capacity of wineries in this state is not large enough to handle the volume of vinifera grapes grown here.  The growers' participation on the Commission is necessary so that the Commission will help develop markets for Washington grown grapes in other states.  (2) The bill is needed to provide the other half of the permanent funding for the Wine Commission.

House Committee - Testimony Against:      None Presented.