Benefits of Winery License types:

Analysis of Results of Proposed Winery License Changes, based on changes proposed by Rep. Gayle Berry
(per Doug Caskey mail message of 1/2/04):

The proposed statutory changes have the potential to have a significant impact on the wine industry of Colorado. Our industry has
developed so far in an atmosphere that strongly encourages the use of Colorado fruit. Most of that statutory encouragement is proposed
to be nullified through changes to the Manufacturer's License.

Please note that this content is based on my reading of the Colorado Limited Statutes and the recent e-mail message sent by Doug Caskey
(see included below). I do not guarantee the accuracy of the content, it is based on all of the statutes I am aware of, and my understanding
of these documents as I read them. Please let me know if you have any additions of corrections. If you are involved in the Colorado Wine
Industry, you may wish to follow the introduction of bills in this year's session of the legislature to track new develpoments. We'll try to
keep you up to date as well.

Limited Winery License Manfacturer's Winery License as proposed by Rep. Berry (and as reported by Doug Caskey) Manfacturer's
Winery License Current

Colorado fruit use required? 50% first 5 yrs
75% thereafter none none

Mead manufacture allowed? No
(CWIDB proposed legislation to change to -

yes - must meet above CO produce % req.) yes yes

taxes? .06 / L - 1^st 9000 L
.04 / L - next 36000 L
.02 / L thereafter

$10/ton on all produce used in wine production .06 / L - 1^st 9000 L
.04 / L - next 36000 L
.02 / L thereafter

$10/ton on all produce used in wine production .06 / L - 1^st 9000 L
.04 / L - next 36000 L
.02 / L thereafter

$10/ton on all produce used in wine production

remote tasting rooms? 5 4 1

Festivals? Yes yes no

Sunday Sales of wine permitted? Yes yes no

liquor license fee? $70 $300
(also Wsle lisc $1050 needed if selling to anyone except other Mnf. wineries) $300
(also Wsle lisc $1050 needed if selling to anyone except other Mnf. wineries)

can sell products of Colorado Limited wineries? Yes yes yes

can sell products of Colorado Manufacturer wineries? No
(Rep. Berry might propose to change to -

yes) yes yes

----- Original Message -----

From: "Doug Caskey"
Sent: Friday, January 02, 2004 2:27 PM
Subject: Retreat discussions
>
> (retreat discussions deleted - nmj).
>
> Additionally, Rep. Gayle Berry spoke with me by phone this morning. She is
> planning on carrying a bill that will include the CWIDB proposal to strike
> the words "grape and fruit" from paragraph (2)(a) of the limited winery
> statute AND will alter the manufacturing winery license to accommodate
> Confre Cellars shift from limited to manufacturing status (necessitated
> because Confre uses out-of-state honey). Rep. Berry did not have specific
> language for us to consider, but said the changes to the manufacturing
> license would entail adding 3 remote tasting rooms (for a total of 4) to
> manufacturers' perks, allowing manufacturers to participate in wine
> festivals, and/or allowing limited wineries to sell all Colorado wines
> instead of just other limited wineries' products, and Sunday sales.
>
> I noted that according to the Colorado wine industry survey we did in
> Oct.-Nov., a solid majority of the industry opposed diluting the difference
> between limited and manufacturing licenses. Rep. Berry replied that this
> will represent a compromise and would go along with the CWIDB's stated
> position that no existing winery should be penalized for any change in
> regulation or statute.
>
> Rep. Berry will join our meeting by phone on Monday at 11 AM to discuss the
> bill she is proposing and the changes to the manufacturing license. Feel
> free to contact me prior to Sunday afternoon if you want to discuss these
> issues at more length. Thanks!
>
> Doug Caskey, executive director
> Colorado Wine Industry Development Board
> 4550 Sioux Drive
> Boulder, CO 80303-3733
> Ph: 720.304.3406 / Fax: 720.304.3405
>

Additional References:
Colorado Revised Statues
12-47-104 Interstate Wine Shipments - Permits
12-47-402 Manufacturer's License
12-47-403 Limited Winery License
12-47-403.5 Wine Festival Permit
12-47-404 Importer's Permit
12-47-503 Excise Tax - records
35-29.5-101 through 106 Colorado Wine Industry Development Act

nmj - 01/03/04

	Limited Winery License	Manfacturer's Winery License as proposed by Rep. Berry (and as reported by Doug Caskey)	Manfacturer's Winery License Current
Colorado fruit use required?	50% first 5 yrs 75% thereafter	none	none
Mead manufacture allowed?	No (CWIDB proposed legislation to change to - yes - must meet above CO produce % req.)	yes	yes
taxes?	.06 / L - 1^st 9000 L .04 / L - next 36000 L .02 / L thereafter $10/ton on all produce used in wine production	.06 / L - 1^st 9000 L .04 / L - next 36000 L .02 / L thereafter $10/ton on all produce used in wine production	.06 / L - 1^st 9000 L .04 / L - next 36000 L .02 / L thereafter $10/ton on all produce used in wine production
remote tasting rooms?	5	4	1
Festivals?	Yes	yes	no
Sunday Sales of wine permitted?	Yes	yes	no
liquor license fee?	$70	$300 (also Wsle lisc $1050 needed if selling to anyone except other Mnf. wineries)	$300 (also Wsle lisc $1050 needed if selling to anyone except other Mnf. wineries)
can sell products of Colorado Limited wineries?	Yes	yes	yes
can sell products of Colorado Manufacturer wineries?	No (Rep. Berry might propose to change to - yes)	yes	yes