Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Commerce & Gaming Committee

HB 1038

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.

Brief Summary of Bill

Increases from two to four the number of separate locations from which a domestic winery may serve samples of its own products, sell its own wine at retail, and sell its own wine in kegs or sanitary containers.
Requires a report each biennium on the number of new domestic wineries, which sunsets in 2023.

Background:

Domestic Winery License.

A domestic winery license, issued by the Liquor & Cannabis Board, authorizes the manufacture of wine in the state. Subject to restrictions, a domestic winery may also act as a distributor and retailer of wine of its own production while complying with the laws applicable to wine distributors and retailers, and take orders and accept payment for wines of its own production during an event held by a nonprofit holding a special occasion license. Also, a domestic winery may qualify for an endorsement to sell wine of its own production at retail for off-premises consumption at a qualifying farmers' market, subject to restrictions.

Separate Locations for Samples and Sales.

Separate from a domestic winery's production or manufacturing sites, a domestic winery may operate up to two additional locations from which the domestic winery may serve samples of its own products, sell wine of its own production at retail, and sell for off-premises consumption wines of its own production in kegs or sanitary containers brought to the premises by the purchaser or furnished by the domestic winery and filled at the tap at the time of sale. An endorsement to sell wine of a domestic winery's own production at retail for off-premise consumption at a qualifying farmers' market does not count toward those two separate locations allotted to a domestic winery.

Summary of Bill:

Separate Locations for Samples and Sales.

The number of locations separate from a domestic winery's production or manufacturing sites from which a domestic winery may serve samples of its own products, sell wine of its own production at retail, and sell for off-premises consumption wines of its own production in kegs or sanitary containers brought to the premises by the purchaser or furnished by the domestic winery and filled at the tap at the time of sale is increased from two to four.

A report must be submitted to the House Committee on Technology and Economic Development regarding the number of new domestic wineries each biennium. The first report is due on June 30, 2019, and a report is due every two years thereafter through June 30, 2023.