Olympia…The Senate today approved legislation that will change the way wine and beer can be distributed in Washington. Under pressure from a pending federal court ruling, the Senate voted 48-0 to allow out-of-state wineries and breweries to market their products directly to retailers.

“This is something we had to do, but I think we’ve done it in such a way to protect Washington’s wineries and breweries,” said Sen. Jerome Delvin, R-Richland. “We didn’t do any more than we absolutely had to do, and by putting a sunset clause into the bill, we will be revisiting the issue in the next two years to ensure that Washington’s industry is allowed the thrive and grow.”

Under existing state law, in-state wineries and breweries were allowed to sell directly to retailers rather than going through distributors. Out-of-state operations were required to sell their products through a licensed distributor. In December, a federal district court judge ruled that difference unconstitutional in a lawsuit brought by Costco.

The bill, 2SSB 6823 does the following:Allows both in-state and out-of-state wineries and breweries to unlimited distribution of their products directly to licensed in-state retailers.Requires a sunset review, with provisions of the bill set to expire in 2008.Requires the Liquor Control Board to form a task force that will take a comprehensive look at the regulatory system controlling the sale and distribution of beer and wine in Washington. The task force will recommend any proposed changes to the Legislature by Dec. 15, 2006.

Theodore Rusnak, president and CEO of King Beverage Distributors, said he supported the bill. King owns and operates six distribution warehouses in Washington, including one in the Tri-Cities.

“The court may have forced all in-state wineries and breweries to go through a distributor, and that would have been a death sentence for many of our small Washington businesses,” Rusnak said. “Those are our friends and neighbors in a growing industry. We want to see them succeed.”

The bill now goes to the House of Representatives.