SENATE BILL REPORT

                           SHB 1063

    AS REPORTED BY COMMITTEE ON AGRICULTURE, MARCH 25, 1993

Brief Description:  Modifying provisions regarding the Washington wine commission.

SPONSORS: House Committee on Agriculture & Rural Development (originally sponsored by Representatives Rayburn, Chandler, Chappell, Grant, Roland, Ludwig, Riley, Padden, Hansen, Lemmon and Lisk)

HOUSE COMMITTEE ON AGRICULTURE & RURAL DEVELOPMENT

HOUSE COMMITTEE ON REVENUE

SENATE COMMITTEE ON AGRICULTURE

Majority Report:  Do pass. 

     Signed by Senators M. Rasmussen, Chairman; Loveland, Vice Chairman; Barr, Newhouse, and Snyder.

Staff:  Katie Healy (786‑7784)

Hearing Dates: March 25, 1993

BACKGROUND:

The Washington Wine Commission is permitted to purchase or receive donations of Washington wine from wineries.  These wines may be used for promotional purposes.

A tax is imposed on wines sold after June 30, 1987 within the state to wine wholesalers and the Washington State Liquor Control Board.  The tax is one-fourth of one cent per liter.  The revenues collected are disbursed every quarter to the Washington Wine Commission to enhance the production of wine grapes and wine and the marketing of Washington wine.  Such tax will cease to be imposed on July 1, 1993.  An extension is sought to give the industry more time to increase its potential.

SUMMARY:

The Washington Wine Commission may purchase or receive wine from wineries.  The wines received or purchased no longer are limited to Washington wine.

The tax imposed on wines sold after June 30, 1987 will cease on July 1, 2001, an extension of eight years.

Appropriation:  none

Revenue:  none

Fiscal Note   available

Effective Date:  July 1, 1993

TESTIMONY FOR:

By allowing the Washington Wine Commission to compare all wines against Washington wines, promotion of Washington wines will improve.  This change will also eliminate a great deal of paperwork.  Continuing the tax gives the industry more time and money to work on promotion of Washington wines.

TESTIMONY AGAINST:  None

TESTIFIED:  Victoria Chiechi, Washington Wine Institute