Free the Grapes Update

Free the Grapes.org

FLORIDA BILLS INTRODUCED
Floridians are now able to receive wine shipments based on a court order and a subsequent determination by state regulators. But three bills are in the legislature, which began its 3-month session last week. The bills, in general, intend to replace the existing structure with additional provisions for tax collection, reporting, etc. The wine industry is supporting Senate Bill 282 (Dockery) which tracks the model direct shipping bill working successfully in many other states.
Florida consumers will hear from us again soon.

Other state updates in the extended post.

ILLINOIS HOUSE CONSIDERING PERMIT BILL
Senate Bill 2180 passed the Senate and is being taken up in the House. Senate Bill 2180 was significantly modified from its original version, which was strongly supported by the Associated Beer Distributors. The original version limited direct shipping to in-state and out-of-state wineries producing less than 100,000 gallons, included a low case limit, and required consumers to visit a winery before direct purchases could be made. SB2180 no longer includes these provisions and more closely follows the provisions of the model direct shipping bill (but currently does not include retailers). House Bill 4350 has been amended and contains the same language as SB 2180, and both are in the House Rules Committee.

INDIANA SESSION ENDS MARCH 14 WITH POOR BILL
In the closing two days of its 2006 session, the Indiana legislature passed House Bill 1016, which is on its way to the Governor. The bill prevents out-of-state wineries with an Indiana wholesaler, or any winery selling 500,000 gallons in the state, from direct shipping to Indiana consumers. For all other wineries, the bill allows them to ship up to 3,000 cases to the state per year, and no more than 24 cases to one individual. The penalties imposed on the winery that ships the 25th case are not defined. Therefore, because wineries have no means of determining how many total cases have been shipped by all wineries to an individual consumer, the bill will continue to prevent wineries from participating and consumers from choice in wine.

ARIZONA BILLS ACTIVE, BUT LIMIT CHOICE
The two bills that are active in Arizona are opposed because they place an arbitrary cap on who can ship. The bills prohibit all wineries producing more than 50,000 gallons (about 20,000 cases) from shipping wine to Arizona consumers unless the wine is purchased while the consumer is at the winery. The bills are protectionist, unfairly discriminatory and limit the choices available to Arizona consumers. HB 2500 is in the Committee of the Whole, which in Arizona means the entire House. The bill will be debated there prior to a third reading vote. Senate Bill 1276 passed the Senate and is waiting for Committee assignment in the House.

KANSAS FAUX SHIPPING BILL MOVES TO HOUSE
Senate Bill 370 passed the Senate and is in the House. The bill includes anti-consumer, poison pill requirements that will continue to make the state off limits for wineries. Provisions include a retailer pass-through requirement, shipment only of wines not in distribution, onerous reporting, and vintner background checks. ACTION: Kansas wine lovers should visit the following website link and personalize a message to state legislators:
http://www.capwiz.com/freegrapes/issues/alert/?alertid=115967

MAINE DIRECT SHIPPING BILL STALLS IN COMMITTEE
LD 1900, which tracked the model direct shipping bill, was voted out of the Joint Standing Committee on Legal and Veterans Affairs by a minority of members supporting an amended version of the bill. The bill, as amended, next heads to the House for debate. The February 13 public hearing brought out wineries and consumers (wearing “Free the Grapes!” T-shirts and hats) but their compelling arguments failed to move a majority of the Committee. Thanks for all your support!

MARYLAND MODEL BILL INTRODUCED
House Bill 625 tracks the model direct shipping bill, which would allow a winery to purchase a direct shipper’s permit from MD, ship up to two cases per month per consumer, pay sales and excise taxes, etc. The bill is in the House Committee on Economic Matters. ACTION: Maryland wine lovers should visit the following website link and personalize a message to state legislators:
http://www.capwiz.com/freegrapes/issues/alert/?alertid=115967

MASSACHUSETTS PASSES UNWORKABLE BILL
The state legislature overrode Governor Romney’s veto of legislation passed last session. The net effect is that MA now has a faux shipping bill that will continue to prevent consumers from purchasing wines from out-of-state wineries. The mechanics of the bill have not yet been written and there is no estimate on their availability.

PENNSYLVANIA CONSIDERING OPTIONS
Although out-of-state shipments are technically allowed to PA consumers, the mechanics that would allow for such shipments have not been established by the PA Liquor Control Board, and the legislature has yet to act on a specific bill. Wineries are awaiting finalization of these rules prior to shipping. (The common carriers also have not yet approved Pennsylvania for direct-to-consumer shipments.)
As background, on September 30, 2005 the Pennsylvania Liquor Control Board issued an Advisory Notice removing in-state wineries’ ability to direct ship to consumers. There was a hearing in October on the topic. Later, a state court granted a stay, allowing in-state wineries to continue shipping in-state. A federal court in Philadelphia then issued a ruling to “level up,” granting shipping privileges to out-of-state wineries pending state legislation.

WASHINGTON GOVERNOR SIGNS PERMIT BILL
Governor Gregoire signed a favorable direct-to-consumer shipment bill on March 14, transitioning Washington from a reciprocal state to a permit state. This was done to ensure that shipping privileges can be maintained without any Constitutional challenges. With a wine shipper’s permit, wineries will be able to ship an unlimited amount of wine directly to Washington consumers (an increase from the current two case annual limit). The bill will take effect on or about June 7, 2006.

IDAHO GOVERNOR SIGNS PERMIT BILL
Governor Kempthorne signed House Bill 454 on March 13, which transitions Idaho from a reciprocal state to a permit state. With a wine shipper’s permit, wineries will be able to ship up to 24 cases annually to Idaho consumers. Wineries must collect and remit sales taxes, pay excise taxes on all wine shipped directly, etc.

ADDITIONAL STATES GRADUATING TO PERMIT BILL
Several other states are in the process of replacing “reciprocal” language – which allowed their wineries to ship to other states with similar reciprocal provisions – with the updated model direct shipping bill. This bodes well for consumers since the model bill addresses specific regulatory requirements, was cited by the U.S. Supreme Court, and has a proven track record.

Colorado: House Bill 1120 passed that chamber on February 8, and seeks to introduce model bill provisions including a $50 permit fee, excise tax payments, and the removal of Colorado’s existing on-site purchase requirement, among others. The bill moves to the Senate.

Hawaii: Hawaii wine lovers may have greater choice if either House Bill 1968 or Senate Bill 2109 passes the Legislature. If they become law, HI wine lovers will be able to purchase wines from wineries in all 50 states—rather than just 13—who are licensed to ship directly to HI consumers. Additionally, lobbyists are working to increase the current case limit from three cases annually to a higher number.

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