Date: 01/21/2014

Final
BILL SUMMARY for HB14-1034

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View--> Action Taken:
Refer House Bill 14-1034 to the Committee on FinanPASS



02:34 PM -- House Bill 14-1034

Representative Williams, sponsor, presented House Bill 14-1034, concerning the creation of a wine packaging permit to allow certain alcohol beverage licensees to package wine produced by another wine manufacturer. Under current law, only licensed wineries are permitted to bottle the wine they produce. This bill creates the wine packaging permit to be issued by the Department of Revenue (DOR) that allows a licensed winery to package wine manufactured by another winery. The permit also allows a wine wholesaler to package wine. Prior to packaging, federal excise taxes on the wine must be paid. After packaging, the wine must be returned to the original winery, or to the original winery's licensed wholesaler. The packaging winery cannot sell or distribute the packaged wine to a licensed retailer or directly to a consumer. The bill sets the annual fee for the wine packaging permit at $200.

02:39 PM --
Ben Parsons, representing the Infinite Monkey Theorem, testified in support of the bill. Mr. Parsons discussed his experiences in wine academia and the wine industry. He discussed the impetus behind alternative packaging for wine; the can is recyclable, will not break on wilderness trips, and, therefore, appeals to the outdoor consumer. In addition, cans suits concert and sporting venues where glass is prohibited. Mr. Parsons discussed the machinations of kegged wine. Mr. Parsons discussed the bill's impact on his business and on the state's wine industry. Mr. Parsons responded to questions from the committee on how the wine industry will be aware of the bill, what types of wine are authorized to be packaged in the state under the bill, and on the process of quality assurance for canned and kegged wine.

02:51 PM --
Jay Christianson, representing Canyon Wind Cellars and the Colorado Wine Industry Development Board (CWIDB), testified in support of the bill. He stated that he currently serves as the president of the CWIDB. Mr. Christianson discussed how having the ability to have another winery package his wine would help his and other small wineries. He stated that the CWIDB supports the bill.

02:53 PM --
Megan Jorgensen, representing Snooze AM Eateries, testified in support of the bill. Ms. Jorgensen stated that she serves as the sustainability coordinator for the restaurant chain. Ms. Jorgensen said that Snooze started using wine kegs two years ago. In her experience, kegs save time, preserve the wine product, are novel to people, and, above all, lessen the environmental impact of wine. Prior to using the keg system, Snooze restaurants were importing 450 champagne bottles per week and hoping the hauler would recycle; now, they call it "zero waste" champagne.

02:55 PM --
David Reitz, director of the Tavern League, spoke in favor of the bill.

02:56 PM

Representative Williams delivered closing comments.

BILL:HB14-1034
TIME: 02:56:35 PM
MOVED:Williams
MOTION:Refer House Bill 14-1034 to the Committee on Finance. The motion passed on a vote of 11-0.
SECONDED:Szabo
VOTE
Exum
Yes
Hamner
Yes
Holbert
Yes
Navarro
Yes
Nordberg
Yes
Rosenthal
Yes
Ryden
Yes
Szabo
Yes
Wright
Yes
Kraft-Tharp
Yes
Williams
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




02:58 PM

The committee adjourned.