Virginia Wine Council

Virginia Wine Council Formed

The Virginia Wine Council (the "VWC"), a consortium of Virginia's vineyards and wineries, the Virginia Vineyards Association and the Virginia Wineries Association, has recently been formed to represent the interests of the wine industry before the General Assembly of Virginia. Virginia's vineyards and wineries need a strong and collective voice in Richmond who can be a constant presence during this year's General Assembly Session and beyond.  To that end, the VWC has selected a new director, Matt Conrad who works at the Alliance Group in Richmond.  Matt will bring his years of government relations experience and enthusiasm for the industry to the task of protecting and promoting the wine industry's legislative interests. 

Prior to joining the Alliance Group, Matt served as lead attorney for legislation at the Virginia Attorney General's Office, where he helped develop and lobby for the annual legislative package of the Attorney General.  Also having served as counsel to the Virginia Department of Alcoholic Beverage Control, Matt brings a keen understanding of the regulatory requirements placed on Virginia's farm wineries.  Matt has spent the past week meeting with wine industry stake holders and is eager to meet with all members of the VWC.  Please feel free to contact him at (804) 648-6299 (x5835) or by email.

Proposed Legislation a Threat to Wineries' ABC Licenses

Delegate Wright (R-Lunenburg) has sponsored legislation that would permit the Virginia Department of Alcoholic Beverage Control to revoke the licenses of any establishment, including farm wineries, for certain enumerated activities. Under the bill, a license may be suspended or revoked if the licensee has operated the licensed premises (e.g., a farm winery) in such a manner so as to adversely affect real property values within the adjacent area. A license may also be revoked if the licensee has substantially interfered with the usual quietude and tranquility of an adjacent residence or residential area.

The ability to maintain an ABC license is necessary to the survival of each farm winery. If this legislation is enacted, disgruntled neighbors of Virginia wineries could pressure ABC agents to bring charges by claiming that the everyday activities of those wineries have lowered the value of their adjacent property or disrupted their quietude (machinery, events, traffic, etc.).

This legislation has no threshold, meaning that diminution in value of even $1 could theoretically substantiate a charge. Although we have been assured that wineries are not the intended target of this bill, the VWC is working with Del. Wright, the staff of the ABC Board and the Virginia Agribusiness Council to ensure that we are not the victims of unintended consequences. We have proposed language to the sponsor that will shield farm wineries from frivolous charges and we will have an update on that legislation next week. In the meantime, feel free to review HB2523 on the Commonwealth's Legislative Information System.

VWC Closely Monitors Relevant Legislation

A number of bills of potential importance to the wine industry have been submitted for consideration by the General Assembly this year. The VWC is closely monitoring these bills, among others, and actively supporting or opposing them both in committee meetings and through in-person meetings with legislators.

SB1445 (Deeds) will clarify that for purposes of determining the location, premises, or place of sale by a wine shipper licensee, that a sale occurs when wine is delivered by the licensee to an approved common carrier for shipment.  The VWC is actively supporting this legislation that is being sponsored on behalf of the Virginia Wine Club by Senator Deeds (D-Bath).

SB(TBD) (Obenshain).  For several weeks we have expected Senator Obenshain to submit legislation that would privatize the operations of the Virginia Department of Alcoholic Beverage Control and, potentially, disband the Virginia Wine Distribution Corporation ("VWDC").  Although Senator Obenshain has not yet submitted this bill, we have expressed to him the importance of the VWDC to the Virginia wine industry. We do not believe the final version of the bill will affect the VWDC, however we will continue to monitor this and any legislation that would threaten its existence. 

HB2440 (Poisson) would privatize the operations of the Virginia Department of Alcoholic Beverage Control and would require the sale or lease termination of all government stores.  This bill does not appear to present a threat to the VWDC.

Virginia Wine Council Works toward Legislative Victories

The VWC sought sponsorship of a bill to amend Section 15.2-2288.3 to provide that localities must take into consideration the agricultural nature of farm wineries before attempting to restrict the on-site marketing and sale of wine. Delegate Ed Scott (R-Culpeper) and Senator Emmett Hanger (R-Augusta) sponsored HB2071 and SB1033, respectively.

In the House of Delegates, HB2071 was referred to the Agriculture, Chesapeake and Natural Resources Committee. In the Senate, SB1033 was referred to the Local Government Committee. Thanks to the work of the VWC and the support of its members, both bills passed UNANIMOUSLY out of the committees to which they were assigned. As of today, both bills were on their second readings and were engrossed (meaning that they are in their final form and ready for action by the legislators). After their third reading on Monday, they will be voted on by both the full House and Senate. We expect unanimous passage of both bills and hope to report the VWC's first legislative victory in coming weeks.

Del. Ed Scott and Sen. Emmett Hanger Sponsor Legislation on behalf of VWC

The 2009 Session of the Virginia General Assembly begins on January 14th, and the Virginia Wine Council is ready to advocate on behalf of Virginia's vineyards and wineries. The VWC is supporting legislation sponsored by Del. Ed Scott and Sen. Emmett Hanger that will further connect farm wineries with the agricultural tradition of which they are a part.  If enacted, the bill will amend Section 15.2-2288.3 to provide that localities must take into consideration the agricultural nature of farm wineries before attempting to restrict the on-site marketing and sale of wine. 
 
In the House of Delegates, the bill is HB2071 and has been referred to the Agriculture, Chesapeake and Natural Resources Committee.  In the Senate, the bill is SB1033 and has been referred to the Local Government Committee. Please use the links to the bills and committees to contact legislators and let them know you want them to protect the agricultural rights of Virginia's farm wineries.

Wine and Vine Legislative Day: Thursday February 5

Please plan to come to Richmond for Wine and Vine Legislative Day on Thursday, February 5. We will meet at the Virginia Wine Board Marketing Office (1001 E. Broad St., Suite 140) at 8:30 a.m. We wo;; then walk to the General Assembly Building and deliver wine to each of the senators and delegates. We will also use this opportunity to advocate for passage of HB2071/SB1033 and to educate legislators about our industry. We hope you will plan to attend and help make farm wineries' and vineyards' presence felt in Richmond.