AAED Joins in Support of HB2010
Friday, February 22, 2019
Posted by: Lisa Karnatz
AAED JOINS IN SUPPORT OF HB2010
The Arizona Association of Economic Development voted at its February Board meeting to support AZ House Bill 2010 which is a bill to re-establish the Arizona Wine Commission.
HB2010 would re-instate a statewide economic development team for the wine industry, appointed by the Governor, to oversee and coordinate marketing; promotion and research; and development support on a statewide basis for the Arizona wine industry. It is to be funded by a small portion of the Luxury Tax that wine producers are already paying in Arizona.
Some key points:
• Following years of prohibition in Arizona, the wine industry is showing dramatic growth since law changes in 2006 allowed expanded marketing and sales operations.
• An Arizona Wine Commission was formed in 1993 to support R & D and marketing & promotion for the wine industry statewide, funded by a portion of the Luxury Tax of $0.84 per gallon charged on every gallon of wine produced, with revenue growing every year.
• The Commission was shut down in 2004 and the money swept. The wineries continue to pay while receiving no support. In other words, this Luxury Tax is already in effect, but is not being used for its originally-intended purpose. This is a similar circumstance as what we have seen previously with Arizona’s sweep of the Highway User Revenue Fund (HURF).
• HB2010 would re-establish the Commission with the Governor appointing the seven members - four winery owners, one from retail, one from wholesale, and a director.
• It is sponsored by a diverse, powerful group of eight House Committee Chairs from multiple regions of the state.
• It is receiving strong support within the legislature. House Land & Agriculture, the first committee to hear it, passed it 7 - 0 on first read.
• It has been endorsed by the Arizona Farm Bureau, the Arizona Department of Agriculture, The Arizona Wine Growers Association, the Arizona Vignerons Alliance, the Verde Valley Wine Consortium, the Sedona, Jerome, and Sonoita/Elgin Chambers of Commerce, the Willcox Chamber of Commerce and Agriculture, and the Verde Valley Regional Economic Organization, to name just a few.