OWA Legislative Successes

Here is a more detailed summary:

Direct Shipment (House Bill 2171). Responding to a U.S. Supreme Court decision that put a constitutional cloud over the reciprocal state arrangement, OWA pushed successfully for legislation creating a direct shipment permit system similar to California and Washington. OWA overcame initial objections by the Oregon Liquor Control Commission to make direct shipment privileges available to in-state and out-of-state wineries, grower sales privilege licensees and retailers, all of whom had those privileges under the previous system. Direct shipment also will be allowed under a temporary sales license.

Self-Distribution (House Bill 2677). Also in response to the U.S. Supreme Court ruling, OWA introduced legislation that grants out-of-state wineries the same privilege as Oregon wineries to self-distribute their wine in the state. The legislation also clarifies that wineries may use common carriers to deliver their wine to restaurants or other retail outlets with an OLCC endorsement.

Measure 49. OWA engaged early in the session with legislative leaders working on a modification of Measure 37, the voter-approved landowner rights initiative that threatened to allow subdivisions next to wineries and vineyards. With a seat at the negotiating table, OWA inserted language that limits development next to existing and future vineyard land. After a campaign in which winery and vineyard operators made significant contributions, Oregon voters overwhelmingly approved Measure 49, which went into effect in early December.

Oregon Wine Institute. OWA worked closely with Governor Kulongoski and House and Senate budget leaders to preserve more than a $1 million in state funding that the governor placed in the appropriation for higher education. The state contribution is intended as matching money for a wine industry contribution that will create an institute at Oregon State University dedicated to the advancement of Oregon’s wine industry.

Wine Taxation. Despite a lot of talk, lawmakers failed to enact an increase in Oregon beer and wine taxes. Most of the debate during the session focused on raising the beer tax. Through OWA’s efforts, beer tax supporters became convinced it was unwise to pursue an increase in the state’s wine tax. Late in the session, an amendment surfaced to enable individual counties to impose a local wine tax to generate funds for local roads and law enforcement. OWA negotiated with legislative leaders to set aside the amendment.

Bottle Bill. Expansion of Oregon’s iconic Bottle Bill was at center stage during the 2007 session, with agreement to add bottled water to the state’s 5-cent redemption list and create a task force to explore further expansion or other alternatives. OWA won early agreement from Bottle Bill expansion exponents not to include wine bottles.

Rural Reserves (Senate Bill 1011). OWA lent support to legislation advanced by Metro that allows the regional agency to combine designations of urban reserves with rural reserves, which are intended to offer longer, stronger protection for valuable farmland. Metro sought authority for a new approach to urban expansion that modified the current system’s heavy reliance on soil type to make land-use designations. Under the system contemplated by SB 1011, valuable farmland, including vineyards, can be included in rural reserves, regardless of soil classification. Metro hopes to implement this new process in its 2009 round of housing needs analysis and urban expansion.

State Wine. OWA diplomatically deflected a proposal to make Pinot Noir the Oregon state wine. Carefully explaining the Oregon Wine Board’s strategy to unify state wine marketing efforts, OWA managed to convince backers to withdraw the bill.

Renewable Energy. OWA lobbyists played a supportive role in passage of legislation that directs Oregon utilities to meet future load growth with renewable energy resources such as wind, solar, biomass, geothermal and wave power.