Lawmakers hear defense of Ohio Grape Industries Committee funding; members press on private vs. quasi‑state role

Department of Agriculture representatives and the Ohio Grape Industries Committee told the board that the committee is a quasi‑state entity funded by a portion of the wine excise tax and is intended to support marketing, research and extension for grape growers and winemakers.

Todd Thatcher said the committee is funded through an excise tax on wine sales and described it as a longstanding, earmarked mechanism established in statute to promote grape enterprises. Thatcher characterized the industry as a multibillion‑dollar sector supporting thousands of jobs and several hundred manufacturers in Ohio. Senators asked why the committee used outside marketing firms rather than relying solely on the department’s internal communications staff; Thatcher and committee representatives said ODA’s communications team is small and focused on regulatory and other programs and that the committee maintains dedicated staff and a public‑relations firm to fully service the industry’s marketing needs. Thatcher said the committee’s funding is not general revenue but excise tax funding earmarked for grape industry promotion.

Senator Stewart asked whether the committee’s quasi‑agency status could be privatized (for example, as an industry association), and Thatcher explained this checkoff‑style model is common in agriculture and is more regulated because the tax is collected by the Department of Taxation and used for specified marketing and research purposes. The board approved the item.