SENATE BILL REPORT

SB 6178

BYSenators Benitz, Barr, Hansen, Anderson, Bailey and Newhouse

Implementing the vinifera grape growers' assessment.

Senate Committee on Agriculture

Senate Hearing Date(s):January 21, 1988

Majority Report:  That Substitute Senate Bill No. 6178 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Hansen, Rinehart.

Senate Staff:John Stuhlmiller (786-7446)

                  January 21, 1988

AS REPORTED BY COMMITTEE ON AGRICULTURE, JANUARY 21, 1988

BACKGROUND:

The Washington Wine Commission was created during the 1987 legislative session.  The newly enabled Wine Commission represents both the producers of wine and the growers of vinifera grapes.  Starting in 1989, funding for the Commission shall be provided by equivalent assessments on growers and producers.  An assessment was established for the wine producer's half of the Commission, with the grape grower's half to be developed during the 1988 legislative session, and implemented prior to July 1, 1989.

SUMMARY:

A list of all Washington vinifera grape growers, who grow grapes for sale or use by wine producers within the state, shall be created by the Commission each year by December 31.

Prior to initial imposition of any grape grower assessments, the Director of Agriculture shall conduct a referendum among all growers on the vinifera grape growers list.  To be approved, the referendum needs:  (1) the assent of at least 51 percent of the growers voting, or 51 percent by acreage of those voting; and (2) representation by at least 30 percent of all grape growers and 30 percent by acreage of all growers.  The referendum shall be conducted on or before September 15, 1988.

If the referendum is approved, the Director shall direct the Commission to start the assessment.  If the referendum is not approved, the assessment shall not be collected and the Commission shall not continue to directly represent the interests of the grape growers.

Starting on July 1, 1989 (subject to approval by referendum), the Commission shall collect an annual assessment of $3 per ton to be paid by the grower.  The Commission shall recommend rules to the Director prescribing time, place and method of payment and collection.  The Commission may recommend that the Director require the wine producers to be the collection agency.  Monies collected shall be deposited in the name of the Commission in any state depository bank.

If assessments are not paid by the due date, the Commission may add a penalty not exceeding 10 percent of the assessment to cover collection costs.  The Commission may bring civil action to recover delinquent assessments.

EFFECT OF PROPOSED SUBSTITUTE:

Handlers are included as possible agents of collection of the assessments.  Assessments are to be collected from growers who ship directly out of state.  Language restricting the transportation, carrying, selling, marketing or otherwise handling vinifera grapes before assessments are paid is deleted.  A handler of grapes is defined as any Washington winery, or processor, juicer, grape broker, agent or person buying or receiving vinifera grapes to be passed on or exported either as grapes, juice or wine.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Jeff Gordon and Jim Halstrom, Washington Association of Grape Growers