The ruling allows "serving facts" statements that include the serving size, the number of servings per container, the number of calories, and the number of grams of carbohydrates, protein, and fat per serving. Additionally, serving facts statements may include information about the alcohol content of the product, as a percentage of alcohol by volume, and may include a statement of the fluid ounces of pure ethyl alcohol per serving. Industry members will not need to apply for new Certificate of Label Approval (COLA) to add a serving facts statement if it conforms to the examples contained in the ruling.

For wine, the standard serving size for table wine (7-16% alcohol by volume) is 5 ounces. For dessert wine (16-24% alcohol by volume) is 2.5 ounces. This does not mean that the official definition of table wine is now 7-16%. It is still 7-14% alcohol by volume, but the TTB realizes that many wines not considered true dessert wines are now over 14.1% alcohol by volume.

Calorie, carbohydrate, fat and protein information must also be included with the serving facts information on the panel. All nutritional information must undergo proper laboratory analysis.

The voluntary labeling of nutritional information and serving facts information does not preclude any of the other required information on a wine label. If the alcohol content is listed on the serving facts panel, it still must be included on the label for COLA approval. A new COLA approval is NOT required if the serving facts panel is added to a label that has already been approved by TTB.

This ruling is not the final ruling on serving facts and national information. In 2007, TTB issued a notice of proposed rulemaking that would make serving facts and nutritional information a requirement on all alcohol beverage labels. That proposed rulemaking is still pending. WineAmerica opposed mandatory serving facts and nutritional labeling when TTB initially proposed it. We do not know when a final ruling will be made on that pending rulemaking.

To read Ruling 2013-2 and to see examples of allowable serving facts panels please go here: Ruling 2013-2.

If you have any questions, please contact Michael Kaiser at mkaiser@wineamerica.org or 202-223-5172.

As we near the completion of the Regular Session of the 2013 Legislature, we are happy to report that the following bills survived the latest "cutoff" deadline and are either awaiting the Governor's signature or still working through the process.

WWI supported and worked several bills that have been passed by the Legislature and now await the Governor's signature:

HB 1001- Creates a wine and beer license for theaters with up to four screens.

HB 1351- Allows wineries to contract with grocery stores and specialty wine shops for private labels (current law allows contracts for private labels only with restaurants).

SB 5517- Changes the criteria for the beer and wine tasting endorsement for grocery stores to include stores who do not meet the current law requiring 50% of sales to be food (like Cost Plus World Market).

SB 5674 - Permanently allows wine and beer tasting at farmer's markets.

SB 5774 - Creates a permit to allow students in community college "culinary, wine technology, beer technology or spirituous technology" courses to taste but not consume alcohol as part of a supervised program.

WWI continues to support the following bill that's still working its way through the process:

SB 5045 - Allows day spas to provide one glass of wine or beer to a customer without charge.

Finally, the last day of Regular Session is April 28th. Lawmakers will need to pass the 2013-15 Operating, Capitol and Transportation budgets to successfully adjourn on time, and it's looking more and more likely that Governor Inslee will call a 30-day Special Session to continue negotiations on the budgets before them. We will send an update as those plans are announced.

Kind Regards,
Marty

Legislative Session "Cut-off" Deadline Passed
The 2013 Washington State Legislative Session has officially passed the halfway point! March 13th marked the highly anticipated "cut-off" deadline where all bills that failed to make it out of their House of Origin, except those necessary to implement the budget (NTIB) and/or tied to revenue were pronounced dead. Despite both chambers passing bills at a quick pace for much of the Floor action period, there are fewer bills still in play at this point in Session than in recent memory.

What's to Come - Back to Committees & Wine Bills on the Move
Looking ahead, long days of floor action are now over, Legislators have returned to committees for the next two weeks, and attention turns to state budget negotiations and those bills still on the move. As is the case in most years, many wine-related pieces of legislation survived the first Floor cut-off and here's some we are specifically following:

SB 5674 - Expanding the Farmer's Market Beer/Wine Sampling Program, allowing for additional marketing exposure for our wineries

SSB 5045 - Allowing day spas to provide one glass of wine to customers without charge

ESB 5607 - Creating a beer, wine and spirits theater license, allowing certain small theaters to serve alcohol

SSB 5774 & SHB 1459 - Authorizing students under the age of 21 to "taste" wine in viticulture and enology programs

Please don't hesitate to contact our lobbyists, Jean and Anne with any questions regarding the legislation noted above.

Cheers!
Marty Clubb,
WWI Board President

On June 30th the terms of two wine producer members of the Washington State Wine Commission board will expire. One of the two producer positions must be filled by a winery making less than 25,000 gallons annually (currently filled by Chris Sparkman). The positions are:

Position #2 - Winery--John Bookwalter: John will not seek another term.
Position #4 - Winery--Chris Sparkman: Chris will seek another term.

Per RCW 15.88.050, the Washington Wine Institute sends wine producer nominations to the Washington State Director of Agriculture for consideration. The Director usually makes appointment selections by late May for a July 1, 2013 start to the 3-year term.

Potential candidates will need to understand and be able to fully meet the requirements and key qualifications, as outlined in the Commissioner Duties and Responsibilities summarized below. Candidates should be supportive of the Mission and Vision of the Washington State Wine Commission and help to advance the Commission's Mission.

The Mission of the Washington State Wine Commission is to raise awareness and demand for Washington State Wine through marketing and education while supporting viticulture and enology research to drive industry growth. With their target audience, Trade and Media, their Vision, as captured in the 5-Year strategic plan, is that "Washington State has a reputation for premium wines with superior quality across a range of varietals, and distinctive character exhibiting a unique balance of the old world and the new world."

If you are an interested in a wine producer position, please submit your name and biographical information to the Washington Wine Institute office before Tuesday, April 30. Interested candidates will be interviewed by the WWI Board on May 8th at their spring Board meeting in the WSWC office in Seattle.

If interested in discussing this opportunity please contact Marty Clubb, President of the Washington Wine Institute at: marty@lecole.com or call him at: 509-520-9463 or contact the Washington Wine Institute at 360-352-1557. Steve Warner, President of the Washington State Wine Commission is also available to discuss this opportunity in more detail (206-326-5760).

WASHINGTON STATE WINE COMMISSION

COMMISSIONER ROLES AND RESPONSIBILITIES

Current Version: Commissioner Handbook, July 2012

The Washington State Wine Commission was created by the Washington State Legislature in 1987 to promote the growth of the wine industry for the benefit of all of the state’s citizens. Its mission is to raise awareness and demand for Washington State wine through marketing and education, while supporting viticulture and enology research to drive industry growth.

The Commission was constituted under the Washington State Department of Agriculture and is governed by an appointed board of commissioners.

The Commission is composed of twelve voting members and one non-voting member; five voting members shall be growers, five voting members shall be wine producers, one voting member shall be the Director of the Washington State Department of Agriculture and one voting member shall be a wine distributor. The non-voting member is a producer of non-vinifera fruit wine.

Each voting member is to be a resident of the state of Washington and over the age of 21. Each voting member is to also be currently, or have been involved in, the phase of the industry for which they represent, i.e. grower, producer, or distributor. Members serve three year terms.

Commissioner Duties and Responsibilities:

• Be actively involved in commissioner board meetings through regular attendance and engagement in discussions
• Have a clear understanding of the mission of the organization and be able to articulate its purpose and structure to the industry and general public
• Represent and speak for the broader interest of the industry, not that of one’s own business nor that of any particular subset of the industry
• Serve as an Ambassador for the Commission, educating the broader constituency about the Commission’s strategic direction and tactical programs
• Be knowledgeable about industry trends, particularly as it relates to supply and demand
• Be available to serve on committees and attend Commission-sponsored events and activities
• Be knowledgeable about state agency governance rules and regulations, i.e. Open Public Meetings Act, State Ethics laws, wine and grape assessment process, etc.
• Working knowledge of Viticulture and/or Enology

Key Qualifications:

• A strong grasp of marketing principles and tactics
• Global perspective of the wine business
• Strong understanding of the various wine marketing channels, including trade, media, distribution, and the consumer
• Extensive contacts and relationships throughout the industry and in the broader community (both within Washington and beyond)
• A collegial and collaborative approach to decision making and problem solving
• Strong leadership and management skills
• Strong communication skills
• A strong record of participation or involvement in industry activities
• A high level of integrity

CURRENT WASHINGTON WINE COMMISSIONERS

Kent Waliser, Chair
Sagemoor Vineyards

Chris Sparkman, Vice Chair
Sparkman Cellars

Martin Johnson, Treasurer
Ste. Michelle Wine Estates

John Bookwalter
J. Bookwalter Winery

Dick Boushey
Boushey Vineyards

Dan Ewer
Young's Columbia Wine Company

Chad Johnson
Dusted Valley Vintners

Butch Milbrandt
Milbrandt Vineyards

Kim Roberts
Westport Winery

Brenton Roy
Oasis Farms

Jim van Loben Sels
Arbor Crest Wine Cellars

Daniel Wampfler
Dunham Cellars

Rebecca Weber
Washington State Dept. of Agriculture

We have GREAT NEWS to share!

As you likely know, there are a lot of questions about "special occasion" wine tasting events! WWI receives many inquiries about charitable event rules and we work closely with the LCB to assist our members in complying with permit requirements, allowing events in our state to be successful. In addition to our Legislative efforts, we also pursue rule changes. In agreeing with WWI's request for a rule change, the Liquor Board repealed Sec. 2 of WAC 314-16-230 that restricted a special occasion licensee from selling more than 12-liters of wine to any person attending an event. The Liquor Board agreed with the WWI's position that the 12-liter restriction limited the fundraising ability of non-profit organizations, creating an unnecessary cap on the amount non-profits could raise per person at an event. We're happy to announce that beginning April 6, events that hold a special occasion license (authorizing the sale of wine in unopened bottles for off-premises consumption) can move forward knowing they are no longer legally held to a maximum sales limit of only 12-liters per person. We are also continuing our work with the LCB to rewrite the rules and laws to make them more workable for wine events. Stay tuned.

Cheers!
Marty

• Priority Legislation
• Looking ahead

Priority Legislation
To date, we are happy to report that WWI is supporting the following legislation that promotes the Washington Wine Industry:

SB 5674 - Expanding the Farmer's Market Beer/Wine Sampling Program (allows for additional marketing exposure for our wineries)
SB 5310 - Creating a new liquor license for senior centers to be able to serve wine, beer and spirits at their facility
SB 5045 - Allowing day spas to provide one glass of wine to customers without charge
HB 1805 - Allowing culinary classes to serve and sell wine
WWI lobbyists also weighed in on HB 1742 (allowing retail establishments that hold a permit to sell beer growlers to also sell wine growlers). WWI testified in support of allowing these additional marketing opportunities for Washington wineries and asked the Committee to be cognizant of potential TTB issues that could put our retail partners at risk. The bill did not pass out of committee by last Friday's policy cutoff and will not move forward this session.

Also, as you may have heard, the Legislature is considering bills to allow for students who are at least 18 years old and enrolled in a culinary, wine technology, beer technology, or spirituous technology related degree program to taste (but not consume) alcohol as part of the class curriculum. WWI has been working with our higher education partners who have now taken different positions on the proposal. WSU and Central stated concerns about the bill moving forward in the House Committee hearing, and WWCC promoted the bill in the Senate Committee hearing. In a compromise action, the Senate Committee limited the tasting permit to Community Colleges only, and passed the bill from Committee. Stay tuned for details on this effort.

Looking Ahead
This week marks committee "cutoff," meaning that all bills must be passed out of committee in their House of Origin to stay alive in the process. We will send another update once this deadline passes to keep you apprised of the wine bills on the move. As always, please don't hesitate to contact our lobbyists, Jean and Anne with any questions you have on current legislation (or the legislative process).

Many Thanks & Cheers!

Marty Clubb
President, Washington Wine Institute

• 2013 Legislative Session Begins with New Governor, New Senate
• Committee Changes
• 2013 Issues

2013 Legislative Session Begins with New Governor, New Senate
The 2013 Session of the Washington State Legislature kicked off Monday, January 14th. Jay Inslee was sworn in as Governor on Wednesday and new cabinet members and agency directors are taking office. While Democrats held a 26-23 majority going into this Session, two Democrats joined forces with all 23 Republican Senators to form a new “Majority Coalition Caucus.” This new coalition took control of the Senate on the first day of Session. The Democrats retain control in the House. By the close of this week, already more than 300 bills have been filed, signaling another busy year.

Committee Changes
Wine issues will be heard primarily in two new committees. In the House, most bills impacting winery interests will be before the Government Accountability & Oversight Committee, chaired by Rep. Chris Hurst, a Democrat from Enumclaw. In the Senate, the Commerce Committee will be home to most wine-related bills. Senator Janae Holmquist-Newbry, a Republican from Moses Lake, is the Chair. With lots of freshmen Legislators in Olympia, our initial meetings will focus on telling the WA wine industry story and sharing information on our substantial economic impact for WA State.

2013 Issues
As always, your lobby team of Jean Leonard and Annie McGrath will be busy in Olympia, representing your interests and protecting your business. Our lobbyists are the face of our industry in Olympia. Their work, with the collective force of our membership behind it, ensures WA wineries’ voices will be heard on all issues that could impact your winery.
We are anticipating a mostly defensive agenda this Session. As Legislators and other affected stakeholders grapple with I-1183's aftermath, we will be actively engaged with all issues that could impact your winery.
In our meetings with wineries around the State over the last year, one area of major concern that came up is a potential threat to a winery's right to Cash On Delivery, which is protected under current laws. We’ll keep you updated on any developments on that front. There is also lots of talk about possibly repealing "tax credits." WWI successfully fought to save the B&O tax exemption on out of state sales for wineries in 2012, which is now potentially at risk again. It’s a top priority for WWI to keep this important, money-saving exemption on the books for WA wineries.
We will be closely in touch with you over the course of the Session as issues arise. Please feel free to contact Jean and Annie or any of your WWI Board Members listed below.

Thanks for your continued support of the Washington Wine Institute! We could not do our work without you!

Marty Clubb
President, Washington Wine Institute

As WineAmerica announced last July when the Food Safety Modernization Ace became law, wineries are required to register as "food facilities" with the Food & Drug Administration (FDA) "[d]uring the period beginning October 1 and ending on December 31 of each even-numbered year." See 21 U.S.C. § 350d(a)(3) (empahsis added).

The registration is now active. Please follow this link to register:
http://www.fda.gov/Food/GuidanceComplianceRegulatoryInformation/RegistrationofFoodFacilities/default.htm

To find out more about opportunities for Washington wineries, click here for more information.

Jay Soloff (DeLille Cellars) and Daniel Wampfler (Dunham Cellars) currently hold the positions that are set to expire; both will be seeking reappointment. The effective dates for the terms up for appointment are July 1, 2012, through June 30, 2015. There are no term limits on the Commission’s board member positions.

Individuals interested in consideration for appointment to the two producer positions must submit a letter of interest indicating background and qualifications along with a résumé and brief statement on why you wish to be a commissioner no later than April 16th, 2012. Please send submissions by email to Info@WashingtonWineInstitute.org.

Click here to download the full announcement as a PDF.

Click here to download the full announcement as a PDF.

At this point, with no injunction granted, the changes to wine laws are in place, which means that uniform pricing laws are repealed, central warehousing of wine is allowed, and limited sales from retailers to other retailers are permitted.

We've posted a copy of the relevant Liquor Control Board emergency rules pertaining to the implementation of these provisions HERE. We've also included a link to the LCB transition plan for privatizing liquor sales HERE.

Sean Sullivan, the author of the Washington Wine Report blog, has written a four-part series that analyzes the pros and cons of the provisions in Initiative 1183 that involve Washington wineries. You will find the series at wawinereport.com.

Paul Gregutt, who writes for his own blog as well as the Seattle Times and Wine Enthusiast, has posted his thoughts about Initiative 1183 at paulgregutt.com.

Wine Compliance Seminar

Date: Monday, August 22, 2011
Time: 9:00 am – 5:00 pm (meals and snacks provided)
Where: South Seattle Community College
In the Brockey Center
6000 - 16th Avenue SW, Seattle, WA 98106
Fee: $75 Students/ $95 Public
Fee includes continental breakfast, lunch and afternoon snacks

Speakers
Cheryl Barber Jones, former Sr. Winemaker for Ste. Michelle
Rick Garza, Deputy Director of WSLCB
Simon Siegl, Wine Industry Government Relations Consultant
TTB Consultant

Click here for more information and registration form.

The Washington State Liquor Control Board is going to hold Wine Forums across Washington state. The purpose of the forums is to discuss possible legislation, ongoing policy issues, provide training, and to get direct feedback from wineries.

Click here for more information.

Click here for the registration form.

The Washington Legislature has finally adjourned. Suffice it to say, it was a challenging Session! WWI members have been receiving our regular updates, so I won't repeat the details but I am happy to report that we achieved our Legislative objectives for the 2011 Session.

Please join us on June 22 for WWI's Annual Meeting. At that meeting, members can help set WWI's agenda for the future as we continue our work to modernize Washington's wine laws to allow you to better market your wines. There are a lot of regulatory challenges facing the industry, so please participate! To RSVP for the annual meeting please click here.

NOTE: WWI's bill exempting wineries and their employees from needing an agent's license is effective July 22. In the meantime, you will NOT need to renew agent's licenses for winery owners and employees!

Click here to download the full report.

May 2, 2011
Seattle Hilton Hotel in Seattle, WA

Who Should Attend
Attorneys, vineyard operators, wine producers and distributors and government regulators involved with the production and distribution of wine. Also, anyone interested in the winery and wine distribution business, including tasting room managers and sales staff.

Why You Should Attend
All the Washington state liquor initiatives which created so much excitement failed. However, we continue to see an evolution in the wine industry laws. Indeed, there has been so much change over the last several years that a focus for this year's conference is a review of the changes and how these changes provide new opportunities for the wine industry today. This year's conference offers the ins-and-outs of operating wineries in the current regulatory environment, including an overview of the changes made in Washington state legislation and regulations in wine law and financing over the last several years. There will also be a window on new insights gaining traction as a result of these changes and how they may impact issues in marketing and distribution.

Attendees will gain practical information on limiting costs and legal risks such as those arising through employment and immigration law issues, while also exploring better ways to exploit the revenue generating opportunities the industry has as Washington wines become increasingly recognized both nationally and internationally.

Experts from a variety of perspectives and disciplines share their experiences, challenges and success stories regarding this evolving landscape, bringing value both to those of long experience and those who are new to the world of wine.

~ Vincent E. Bryan, III, Esq. and Michael T. Reynvaan, Esq., Program Co-Chairs

What You Will Learn

• Developments for expanding and supporting Washington's wine industry
• Employment law changes affecting winemakers
• Key features for raising capital for wineries
• State legislative and regulatory developments
• Liquor law compliance

Details at: http://www.lawseminars.com/detail.php?SeminarCode=11WINEWA

To download talking points and additional information click here.

shipcompliantblog.com/blog/2011/04/12/hr-1161-the-great-constitutional-head-fake/

wineamerica.blogspot.com/2011/04/update-on-care-act.html

The Liquor Control Board is forming two focus groups to discuss potential educational tools to assist businesses in understanding and correctly completing licensing applications. Additionally, they will be soliciting input on what other topics you, as industry leaders, think would be beneficial. They have formally invited the Washington Wine Institute to submit one or more names from the WWI membership to serve as participants.

There will be two focus groups – May 5th at 1:30 and May 10th at 9:30 – both held at the LCB offices in Olympia.

We are looking for WWI members to volunteer to participate. If you would like to represent the wine industry and the Washignton Wine Institute as a participant please contact the Institute by email at info@WashingtonWineInstitute.org or by phone at 360-352-1557.

Thank you,
The Washignton Wine Insittute

SB 5788 "Omnibus Stakeholder Bill"

Passed by the Senate, 48-1
Passed by the House, 97-0


1. Streamlines the often complicated process of participating in charitable events.
   • Allows wineries to pay
   • Allows wineries to pay reasonable booth fees to charitable organizations hosting event (this practice is currently illegal) for coordinating services
   • Allows charities to pay you for your wine at the close of the event, eliminating the now commonplace "check swap"
   
   
2. Eliminates requirement that wineries and their employees obtain a $25 Agents License to sell and market wine off of the winery premise - including sales to retailers!
   • Remedies WSLCB's interpretation of current law requiring virtually all wineries and winery employees to hold an Agents License in order to conduct everyday business activities, such as selling and marketing wine
   • Ends enforcement spurred by WSLCB's recent memo stating an Agents License is required to pour wine at restaurants, specialty wine shops, charitable events, private clubs, trade shows and grocery stores
   
   
3. Allows for broader industry participation in trade shows.
   • Allows wine/ and other liquor related products vendors to provide wine or liquor samples at industry trade shows. Without this fix, vendors would be serving without a license
   
   

   Note: For information about other liquor industry provisions in the omnibus bill, please feel free to contact us.

HB 1227 “Corkage Fees”

Passed by the House, 94-0, 4 excused
Passed by the Senate, 45-4


• Allows wineries and restaurants to participate together in corkage waiving programs to promote local tourism

HB 1172 “Farmer's Markets Wine Tasting

Passed by the House, 77-21
Passed by the House, 45-4


• Creates pilot program for wine and beer tastings at farmer's markets

We'll let you know when Governor Gregoire signs these bills. Now, we shift our focus to watching budget negotiations come together and working to ensure wineries are not hit with new taxes or fees. Thanks for your support and participation this Session and we'll be in touch soon!

Click here for our full memorandum.

For a refresher on our bills and what they do, you'll find below the bill summaries we included in our last message to WWI members. In addition to these bills, we appreciate your continued interest in changes to winery licensing laws to allow for licensing of non-producing winery operations. WWI decided to hold off on our legislative proposal this Session in order to undertake a more comprehensive education outreach to our members about the restrictions in current law. This is an important undertaking and we're looking forward to additional opportunities to engage with you on this topic in advance of next year's Session.

SB 5788 "Omnibus Stakeholder Bill"
SB 5788 contains WWI language that will fix some of the issues wineries have reported experiencing when participating in charitable events. As you know, it's common practice for charities to hire an event coordinator, who provides the valuable service of coordinating winery involvement with the event. If passed, SB 5788 will allow you to pay a reasonable booth fee to the charitable organization hosting the event (a practice that is currently illegal) for their coordinating services. The bill will also help to alleviate the headaches associated with payment for your wine at the event. Instead of dealing with the now commonplace "check swap", the charity will be able to pay you for your wine sold at the close of the event.

SB 5788 would also resolve an issue with Agents Licenses that has come up in recent months. The WSLCB interprets current law to require that wineries and their employees (except those that are a sole-proprietorship) obtain an annual $25 Agents License in order to sell and market wine off of their winery premise, including to retailers! This is a requirement that we believe very few wineries are aware of, so WWI introduced language that will make it clear in the law that wineries and their employees do not need an Agents License to sell their own wine.

Also included in our SB 5788 stakeholders' bill is a language that will help our friends at WAWGG and other industry trade shows. At the WSLCB's suggestion, our bill adds a provision that will allow barrel vendors and other liquor related vendors to provide wine, beer or liquor samples at trade events for better analysis of their products. Without this fix, these vendors would be serving without a license.

HB 1227 "Corkage Fees"
HB 1227 and SB 5173 would allow wineries and restaurants to participate together in corkage waiving programs to promote local tourism. As you'll recall, this legislation came about as a result of a liquor board enforcement action that put a stop to the popular "Corkage Free Zone" in Yakima. While WWI was able to reach an agreement with the WSLCB to continue the program immediately, these two bills are still moving through the process as additional support for the activity.

HB 1172/ SB 5029 "Farmer's Markets Wine Tasting
WWI testified in support of these clone bills that would establish a pilot program for beer and wine tastings at farmer's markets, much like the pilot program for grocery store that reached permanent status last Session. WWI is happy to support legislation that promotes wineries in their communities and we strongly believe that the more consumers are able to interact with winemakers and sample wonderful Washington wines, the more consumers will purchase them!

Click here for a quick look at where we stand.

"Chris's extensive experience in both the private sector and state government will be a strong contribution to the Liquor Control Board," said Gregoire. "He is a proven leader whose passion for civic involvement mirrors the mission and values of the Board."

Before being elected to the state Senate in 2006, Chris worked as managing partner of the Foothills Auto Group in Spokane. He also served on the Board of Regents for Washington State University and on the WSU Foundation's Board of Governors. Marr has also chaired the Spokane Regional Chamber of Commerce and the Washington State Transportation Commission.

"I am honored that Governor Gregoire has asked me to use my thirty years of experience as a corporate manager and business owner to help lead the Liquor Control Board in the critical years ahead," said Marr. "The public has indicated support for the revenue liquor sales generate for essential state and local services, improved convenience and most importantly -- ensuring public safety is not compromised. I'm excited to join the efforts already underway to address these issues."

Marr joins board chair Sharon Foster and board member Ruthann Kurose.

The part-time board operates at 60 percent time and pay. It holds regular public meetings and work sessions with stakeholders and other interest groups, makes policy and budget decisions, and adjudicates contested liquor license applications and enforcement actions on licensees.

The Liquor Control Board's mission is to contribute to the safety and financial stability of our communities by ensuring the responsible sale, and preventing the misuse of, alcohol and tobacco.

The LCB's objection to the program stemmed from its finding that wineries and restaurants are not allowed to negotiate an exclusive agreement between particular wineries and particular restaurants.

WWI worked with LCB to come to a resolution that would allow such programs to continue, and hopefully flourish. Following many discussions with WWI, the LCB announced late yesterday that a "corkage free" promotion would not violate current law (which specifically allows for wine tourism promotion between wineries and restaurants) if the program is open to allow all interested wineries and restaurants to participate.

Our discussions with member wineries indicates that this is a workable solution that will allow programs like Yakima's to continue immediately. We would like to thank the member wineries who brought this issue to us and appreciate all of the feedback and suggestions we have received throughout this process.

Please keep an eye out for our regular "Olympia Reports" this Session for news like this on what's happening at the State Legislature and WSLCB that impacts your winery.

WWI disagrees with this interpretation and raised the issue at this morning's LCB meeting. A representative from the Washington Restaurant Association also spoke favorably about the program. We're very pleased to report that our arguments were well received by the Board and we are optimistic that we can reach a resolution so that wineries can continue this innovative program.

This order will provide some much needed stability for wineries currently grasping to keep up with changing regulations. It puts a hold on a wholesaler's rulemaking request to allow for split case charges on wine orders, which has been a hot topic of discussion in Olympia for the past month. Unfortunately, it also tables work the WWI has been doing with the LCB to modify its current interpretation that an agent's license is required for all winery personnel who sell wine (except for sole proprietors). We'll continue to work with the LCB to address on-going issues that are important to wineries outside the rulemaking process.

As always, we'll continue to closely monitor the work of the LCB and keep you posted as to other impacts of the Governor's order.

With nearly all votes statewide tallied, it appears safe to say that I-1100 and I-1105 have been rejected by voters. As you know, WWI opposed I-1100 because of its potentially damaging effects to the Washington wine industry, particularly our State's small, family wineries. We would like to thank you for all you did this campaign season; engaging in thoughtful discussions with other wineries and industry members, reaching out to your customers, friends and family, and talking to the press and more.

The feedback and participation from wineries during this campaign season has reinforced WWI's position that the Washington wine industry wants to see modernization to wine law in Washington done in a thoughtful and strategic manner. We are well aware that our laws are not perfect and we're looking forward to continuing our work with you and other stakeholders such as retailers, restaurants and distributors to address our industry's big issues this coming Legislative Session and beyond.

The annual meeting is where we will ask you, our members, to help shape our legislative agenda. We will also have presentations by the Washington Association of Wine Grape Growers and by the Washington Wine Industry Foundation.

In addition to addressing legislative and regulatory hot topics, we will be electing three WWI Board Members.

If you are interested in serving on the WWI Board of Directors or would like to nominate someone, please submit a 150 word or less ballot statement to info@washingtonwineinstitute.org no later than November 25th, 2009. We have three Board positions up for election this year and all members are eligible for nomination.

We look forward to seeing you on Tuesday, November 30, 2010 at Tagaris Winery in Richland! To RSVP for the meeting please respond to this message, call 360-352-1557, or Click Here.

Event Summary
An expert panel will discuss shipping and compliance issues that may affect your direct sales program:

• Tools and best practices for a cost-effective direct shipping program
• State-by-state review of recent and upcoming legislative changes
• How to meet forthcoming e-filing requirements
• Find out if Massachusetts and Maryland will open to direct shippers Hear the latest news surrounding the controversial H.R. 5034

Attend this Seminar from the convenience of your desk! Once you register, you will receive an email with a link to the web conference and the call-in phone number.

Who Should Attend?
Anyone involved in direct shipping will gain valuable insight from this event, including winery owners, sales and marketing staff, accounting and finance staff, tasting room managers, wine club managers and shipping managers.

Registration
This valuable direct shipping compliance seminar is FREE to attend. Confirm your spot today by registering by using the link below.

https://www2.gotomeeting.com/register/165092531

If you are not already a member please join and attend - have your voice heard! Membership information is available here or by calling 360-352-1557.

If you are interested in serving on the WWI Board of Directors or would like to nominate someone, please submit a 150 word or less ballot statement to info@washingtonwineinstitute.org no later than November 23rd.

Click Here to download a PDF of Sean Sullivan's article on Initiatives 1100 and 1105.

Click Here to read the article on his blog.

Click Here to download a PDF of Paul Gregutt's article on Initiative 1100.

Click Here to read the article on his blog.

Many of our members have asked us for a message for their customers regarding Initiatives 1100 and 1105. In response, we've put together the paragraph below for your use in newsletters, emails to customers, your website, or any other means you see useful. Please use it as is or personalize it to meet your needs. Millions of dollars are being spent on the campaigns for these initiatives, but word of mouth is still one of the most effective ways to get out the message that I-1100 and I-1105 will hurt Washington's wine industry.

"I urge you to vote no on Initiative 1100. Most people think I-1100 simply allows private retailers to sell liquor instead of state liquor stores. In fact, if I-1100 is passed, it could have devastating impacts on our winery and on the majority of Washington wineries which are almost all small businesses. Our current laws enable small wineries like mine to compete with national and international brands by ensuring equal access to the marketplace. This creates a vibrant, highly competitive domestic industry that benefits consumers with incredible choice and value at every price point. The success of our industry also benefits the general public, as Washington wineries contribute $4.7 billion to the state's economy and provide nearly 20,000 jobs.

I-1100 repeals ALL of the equal access to market provisions in our current laws, and goes further than any other state in the country to deregulate wine distribution. We'd like to be able to continue to compete based on the quality of our product, not the size of our bank book. Please support your local wineries and vote no on I-1100."

In response to member requests for clear, concise information the Washington Wine Institute has prepared the following summary of why it opposes I-1100.
Click here to download it as a pdf.

The Washington State Liquor Control Board put out this memo regarding special occasion licensed events.
Click here to download it as a pdf.

Recently, we sent you an email regarding Initiative 1100, the privatization of liquor initiative supported by Costco that would also dismantle the distribution system under which you currently operate. In addition to allowing private retailers to sell spirits, I-1100 also repeals key protections for wineries, opening up our market to “pay to play” practices that will give a competitive edge to retailers and large wineries.

Initiative 1105, supported by two large wholesalers, is another approach to privatizing the sale of spirits in Washington, which will also be on the ballot in November. There are key differences in these two initiatives in how privatization will be implemented and the extent to which the sale of alcohol will be regulated by the State. Both Initiatives shut down state liquor stores and allow beer and wine retail stores to sell spirits.

While I-1100 completely repeals the tied house system, I-1105 keeps it intact and applies the current regulatory scheme to private sales of spirits. It also requires the sale of spirits to retailers to go through distributors, unlike wine, which in Washington can be sold direct to retailers or consumers. The ban on credit, “pay to play” and quantity discounts is left untouched in I-1105. Quantity discounts, however, will be allowed on sales of spirits.

Again, both initiatives seek to radically change the sale of spirits in Washington State.

Initiative 1100:
• Shuts down state liquor stores and allows private sale of spirits
• Repeals current competitive protections resulting in:
  • Removal of the ban on extension of credit to retailers
  • Allowing of quantity discounts
  • Allowing wineries to pay for retailers' advertising, promotional costs, and shelf space allocation
  • Removal of all current restrictions on “pay to play” business practices

Initiative 1105:
• Shuts down state liquor stores and allows private sale of spirits
• Requires spirits to be sold through the three tier system, unlike wine
• Requires the Liquor Board to present the Legislature with a tax structure to make up for the removal of the current markup and taxes on spirits

As always, please contact us with your questions and comments regarding these initiatives. WWI will be hosting a brief info session on I-1100 and I-1105, as well as a discussion on winery licenses, on August 23rd in Woodinville and August 24th in Prosser. An RSVP is not required for attendance, but it does help to plan the event. If you would like to RSVP for either info session just click the appropriate link below:

Click Here to RSVP for the information session at Columbia Winery in Woodinville on the 23rd at 1:30 pm.
Click Here to RSVP for the information session at Thurston Wolfe Winery in Prosser on the 24th at 9:30 am.

Click here to download this comparison as a PDF.

WWI has put together this document explaining the effects of I-1100.
Click here to download it as a pdf.

What Does Initiative 1100 Really Mean FOR WINERIES?

Initiative 1100 will radically change the way wineries do business in Washington State.

Initiative 1100 seeks to privatize State liquor sales by closing down State liquor stores and allowing retailers of beer and wine to sell spirits, but what many wineries do not know is I-1100 would also repeal key legal protections that have helped our industry flourish and grow. Some Examples of what I-1100 means FOR WINERIES:

NO CASH ON DELIVERY

• Credit terms would be allowed on sales between wineries and retailers. Retailers would no longer be required to make payment at delivery. Instead, retailers would be allowed to subject wineries to undefined credit terms as a condition of the sale.

"PAY TO PLAY” AT RETAIL

• Retailers would be allowed to negotiate lower prices and quantity discounts with wineries.
• Grocery stores and other retailers would be allowed to charge wineries for the cost of advertising as a condition to purchasing and offering their wine in stores.
• Restaurants would be allowed to charge wineries for menu printing if they wanted to be on the wine list.
• Retailers and restaurateurs would be allowed to demand from wineries an unlimited amount of branded promotional items and would be entitled to demand these items as a condition to purchasing and offering their wine.

The Washington Wine Institute wants you to have all of the facts about the impact of I-1100 on our State's wine industry. We will be providing additional information to the industry - please don't hesitate to contact us with any questions about this Initiative and what it will mean for your winery.

To read the initiative in its entirety, visit: http://www.sos.wa.gov/elections/initiatives/text/i1100.pdf

This rulemaking order amends chapter 16-481 WAC by establishing a quarantine for European grapevine moth. This quarantine requires grapes, grapevines, and equipment and appliances used in the growing, packing or transporting of grapes and grapevines from infested states to be certified free of European grapevine moth. Commercially packed table grapes and seed extracted from grapes are excluded from this quarantine.

Reasons for this finding:
Timely prevention of intrusion into this state of a nonnative, invasive pest species on or in association with horticultural plants and fruit is of grave and immediate concern. The European grapevine moth, a potentially devastating pest that feeds primarily on flowers and berries of grapevines, was first detected in the Napa Valley of California at the end of last year's growing season. This was the first detection of the moth in North America. It has since been detected in several more California counties and appears very likely to spread further, unless strong prevention measures are taken.

Introduction of European grapevine moth into Washington could severely impact grape production and disrupt Washington export markets for many crops, including cherries and red raspberries. For this reason we are implementing a quarantine on European grapevine moth that would require the inspection and, if necessary, treatment of grape plants and plant parts, and equipment or appliances used in the growing, harvesting, processing, or transporting of grape plants or plant parts from California, and any other state or territory of the United States or foreign county where European grapevine moth occurs.

Click here to read Attorney General Rob McKenna's letter regarding HR 5034.

CBSNEWS talks to WWI President Marty CLubb about HR 5034. Click here to download the article or click here to read the article online.

The wholesalers are really pushing H.R. 5034, a bill in Congress that would allow states to pass discriminatory and protectionist alcohol laws. While no member of the Washington delegation has signed on to this bill as of now, we need the wineries of this State to speak up and encourage our Representatives to actively oppose this bill.

Talking Points

• States already have broad authority to regulate the sale and control of alcohol, and Courts have consistently upheld that authority.
• H.R. 5034 would tilt the balance and allow states to pass discriminatory laws, which could have a devastating impact on Washington's wineries who rely on open markets to ship their wines to customers in other states.
• New federal legislation is unnecessary and unwarranted as states can already accomplish their legitimate regulatory goals.

Contact your Member of Congress!

WWI has already been in contact with our Congressional delegation to encourage their opposition to HR 5034. Now, we need your voice to fight this national effort to take away your rights.

Please contact your Member of Congress and urge him or her to OPPOSE HR 5034.

https://writerep.house.gov/writerep/welcome.shtml

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Thank you,
The Board and Staff of the WWI

Recently, you received an email from us detailing our opposition to H.R. 5034, a measure before Congress that seeks to allow states to more easily pass discriminatory and protectionist alcohol laws.

Here's a follow-up:

A majority of states' Attorneys General, including ours, signed on to a letter encouraging Congress to re-enforce State regulatory authority over alcoholic beverages as provided by the 21st Amendment. WWI met with Attorney General Rob McKenna to share our concerns about H.R. 5034. We are very pleased to report that AG McKenna does not support the bill that is currently before Congress because of his concerns that it could negatively impact Washington wineries. The AG is very supportive of the WA wine industry and our ability to continue to have direct to consumer sales channels, not just in Washington state but around the country in those states that allow direct to consumer shipping. AG McKenna maintains his opposition to federal preemption of a state's right to regulate alcohol.

Stay tuned for more updates!

Thank you,
The Board and Staff of the WWI

I am pleased to notify you that Gov. Chris Gregoire this morning announced her appointment of Linda Bremer as our new Board member. Linda's term is effective May 1. Linda is filling the vacant Board position last held by Lorraine Lee, which runs until January 15, 2011.

Many of you will recognize Linda, as she served as the Liquor Control Board's Information Technology Services Director from 2002 to 2005.

Linda, who is from Olympia, most recently served as the director of the state's Department of General Administration from 2005 to 2010. During her tenure, the agency developed a new architecture for financial systems, successfully managed capital projects, created a fuel-efficient motor pool, and partnered with Intercity Transit to deploy a capitol shuttle system that is an effective method for getting visitors onto the campus.

"I'm pleased that Linda will bring her skills and expertise back to the Liquor Control Board," said Gov. Gregoire in her press release announcing the appointment today. "With her previous knowledge of the agency, she'll be able to hit the ground running with ideas on how the agency can carry out its mission to prevent the misuse of alcohol in our communities and maintain our public safety."

Linda has more than 30 years of experience in management positions in the private sector and state government. She has substantial expertise in information technology; project management; business management tools; customer relations; partnership building; strategic planning; policy development; and human resource issues.

"I am excited about joining the Liquor Control Board," Linda said in the press release. "It is an exceptional organization. I plan to devote my business talents and skills, working closely with the other Board members, to continue to create great results for our state."

Linda has a bachelor's degree in chemistry and an MBA in financial management. She is a 2000 alumnus of the National Hispana Leadership Institute. She has attended Harvard's State and Local Government Program.

Please join me in welcoming Linda when she joins our agency in May!

Sincerely,

Sharon Foster
Board Chair

WWI has already been in contact with our Congressional delegation to encourage their opposition to HR 5034. Please check back to this website often for the latest developments.

Here is what WineAmerica had to say:

WineAmerica News Brief

PRESS RELEASE: HR 5034 (CARE ACT)

Proposed legislation recently introduced in Congress would offer federal backing to anti-competitive and discriminatory state alcohol beverage laws. Supported by the National Beer Wholesalers Association (NBWA), this damaging bill would put give wholesalers the ability to use state law to insulate themselves from competition. As an organization of more than 800 wineries in 48 states, we strongly oppose this effort. NBWA's legislation would, without any justification, allow states considering alcohol beverage measures to virtually ignore the Commerce Clause and federal law in all but the narrowest circumstances. This is a dangerous precedent since courts and Congress have historically have struck a careful balance when considering state alcohol laws between the Twenty-first Amendment—that gives states authority over the importation, transportation and delivery of alcohol with their borders—and other parts of the Constitution. By seeking a blunt reconfiguration of the relationship between the Constitution and state alcohol law, NBWA is asking Congress to put a thumb on the scale in favor of their monopoly distribution system. The proposed legislation, while couched as addressing public safety and states' rights, is merely a smoke screen for a power grab by beer wholesalers that would stunt competition, reverse years of long-established judicial precedent, and severely limit consumer choice.

Bill Nelson
President

www.wineamerica.org

WWI opposes HR 5034. We are working with WineAmerica to defeat this onerous bill. Details soon.

Legislators worked late into the night and wee hours of this morning before adjourning, today, on the last day of the 30-day Special Session. Before leaving town, the majority party in the House and Senate agreed to and passed a revenue package and budget.

We are very pleased to report that there are NO NEW WINE TAXES in the budget. As you know, in this deficit year where the Legislature has booked $800 million in new revenue, it was our top priority to stave off tax increases on wine.

WWI works tirelessly in Olympia, year round, to represent your interests and promote our industry to the Legislature. Thanks to your good work producing quality wines and creating in-state jobs, we have been able to generate a tremendous amount of goodwill for our industry with Democrats and Republicans, alike. We are thankful that the Legislature recognized the importance of this home-grown industry and resisted increasing taxes on us in this challenging economy.

Unfortunately, some of our friends in the beer industry did not fare as well. Despite strong advocacy and leadership from their representatives, the Legislature imposed a 50 cent a gallon increase on beer (microbrews exempt), which results in about a 28 cent increase on a six pack.

We want to thank you for your continued support of our efforts in Olympia.

If you have any questions about the final tax package or anything else, please don't hesitate to call or email us.

The WWI is the organization wineries turn to for regulatory support. With the new WWI website industry professionals have easy access to the latest legislative information and valuable resources. Check back often for updates and improvements as the site changes in response to user feedback.

Good news: the Wine & Beer Grocery Store Sampling Bill passed out of the House by a vote of 77-21 and is now headed to the Governor's desk for her signature! This bill has been a long time coming, first introduced in 2007, then morphed into a pilot and now finally on its way to becoming law. It's been a lot of work with some terrific partners-- the grocers, breweries, distributors and our wonderfully supportive legislative sponsors. As we've said all along, we strongly believe that if WA consumers have the opportunity to taste your wines, they will buy them. We're also pleased to report that our amendment to allow wineries to pour and participate at the tastings was included in the final version of the bill.

We have heard from many WWI members that recently, wineries have been informed by WSLCB agents that you are prohibited from bringing your wine back into Washington State after it has been shipped to an out-of-state warehouse. As you can imagine, this has presented a problem for many wineries that find themselves with demand for supply, but no inventory in WA and unable to bring wine back into the State. We are working with the WSLCB and have asked that they reinterpret the statute so that wineries can continue this important practice. We will let you know when we have reached a resolution.

From the WSLCB— NOTICE: Price Filing Suspended Beginning March 1, 2009
No Printed or Electronic Price Filings are Required
The Washington State Liquor Control Board adopted a resolution to suspend price filing for one year and increase field audits. Effective March 1, 2009, electronic and paper filing requirements are put on hold; no submissions will be required during this transitional period. The Board is maintaining label approval and distributor appointment authority. You need to continue to submit label approval documentation.

Please click here for WSLCB Interpretive Statement - Return of exported Washington wine.

For more information, please visit the WSLCB Price Filing Web site.

It was announced earlier today that Rep. Dan Newhouse has been appointed by the Governor to serve as the new Director of the Department of Agriculture. Rep. Newhouse has been a tremendous supporter of the Washington wine industry and a great friend to the agricultural community for many years. His appointment takes effect February 18th. We wish him the best in his new position!

Today marks the first day of the 2010 Washington State Legislative Session! This short Session will run 60 consecutive days and is set to adjourn March 11, 2010.

As you know, WWI works ?round the clock in Olympia during the Legislative Session to protect your interests. Expect regular reports from the Hill, with details on wine-related legislation, updates on legislative activities and, when necessary, calls to action on important legislation. Later this week, check your inbox for details on our 2010 agenda and no new wine taxes defense.

We're at your service all Session long, so don?t hesitate to call or email us with your questions and comments. Call us at (360) 352-1557 or email us at info@washingtonwineinsitute.org.

We hope you can join us for the annual "Taste Our Best" event in Olympia! WWI is again partnering with the WA Restaurant Association to host a legislative reception showcasing WA wines and foods. The event will take place January 25th at 5pm in Olympia. The reception is always extremely well attended by Legislators and staff and an excellent opportunity to show off your wines while chatting with the people shaping policy in our state. If you are interested in participating, please contact Craig at info@washingtonwineinsitute.org for details.

Sharon Foster was appointed as the Washington State Liquor Control Board Chair, effective August 16, 2009.

Sharon is a retired self employed contract lobbyist who lives in Olympia. She retired in 2004 and was a lobbyist for 20 years. Among her clients were the YMCA, the Council of Youth Agencies, the California Wine Institute, NARAL, Community Mental Health, the Washington Restaurant Association, Oracle and Traffic Safety Education.

Prior to becoming a registered lobbyist Sharon was the State of Washington Director of the YMCA Youth and Government Program, which she ran for 10 years and an employee of the YMCA of the USA.

Sharon has been on the Heritage Park Board, overseers of the park area surrounding Capitol Lake on the campus of the Washington State Capitol, for 20 years and more recently a steering committee member of Oly 2012, a citizens group dedicated to enhancing the viability of downtown Olympia.

Sharon was raised in Mt. Vernon, WA and now resides in Olympia with her husband Dean. They have 5 children and enjoy many wonderful grandchildren.

In an action supported by WWI, the Liquor Control Board adopted a new policy on wine label approval.

Wineries are no longer required to apply for state label approval for your wines sold in Washington state. Effective August 19, 2009, the WSLCB will accept the federal Certificate of Label Approval (COLA) as label approval for beer and wine to be sold in the state of Washington. Producers will no longer be required to apply for state label approval. Wineries will still need to file their COLAs with the Board. Alcohol and keg products that do not require Federal label approval are approved to sell immediately.

Please contact WWI with any questions.

OLYMPIA, WA--(Marketwire - May 18, 2009) - New legislation signed last week by Gov. Christine Gregoire will go a long way to help improve, modernize and streamline Washington State's complicated laws and regulations impacting the state's burgeoning wine industry, the Washington Wine Institute said today.

"We had a very busy, but successful and productive agenda in 2009," said Jean Leonard, executive director. "Most of the liquor laws were adopted long before Washington's wine industry existed. It's taken a dedicated effort over many years by the Institute and our members, as well as other stakeholders and Legislators, to change these laws in positive ways that address the industry's current needs."

Leonard said the new laws, which go into effect July 26, will significantly revise the state's current liquor control system by addressing many "wine pricing" issues raised by the Costco litigation. The newly enacted legislation will help eliminate barriers to market, such as archaic "post & hold" requirements, mandatory minimum mark-up, and some issues regarding extension of credit. New laws also repeal some provisions that were adopted after prohibition to inhibit marketing of alcohol, Leonard said.

Institute president Marty Clubb of L'Ecole No. 41 Winery said the new legislation will provide increased opportunities for wine promotion and marketing as well as investments between wineries and retailers. These changes ultimately will have a positive impact on consumers, Clubb said. "Washington already has some of the most progressive laws on direct-to-consumer and retail sales," Clubb said. "Now our wineries will have some of the broadest privileges available to wineries anywhere in the country."

As in past years, the Institute worked closely with the Legislature, the Governor's office, the Liquor Control Board and other relevant stakeholders to make the laws work for the industry. Lorraine Lee, chairman of the state's Liquor Control Board, said the new legislation demonstrates a "watershed change" that is "progressive and forward thinking" for the industry. She said the new approach strives for "simplification, modernization and flexibility in our liquor laws," but reinforced that the Liquor Control Board believes it can reach these goals without sacrificing the agency's top priority, public safety.

Robin Pollard, executive director of the Washington Wine Commission, echoed that statement, saying that the Institute has worked carefully and strategically for changes to liquor law that enable Washington wineries of all shapes and sizes to grow and prosper while still supporting laws prohibiting dangerous or underage drinking.

The Institute also supported legislation requiring wines labeled "Washington" to contain 95 percent of Washington-grown grapes.

"With more than 600 wineries all across the state, the wine industry is a major contributor to Washington's economy," said Dan Newhouse, director of the Washington State Department of Agriculture. "While we may not be the largest volume producer in the country, it's our commitment to quality that makes us competitive. When consumers see Washington on the label, they know they are getting an excellent product made by skilled vintners from some of the finest grapes available."