Direct Shipping Legislation - as of 7/21/03
Courtesy Steve Gross, State Relations Manager, Wine Institute
It has been a very active year for direct wine shipment legislation.
Several states have passed positive laws, a few have passed laws that appear
unworkable, and one has created a new felony penalty. Below is a listing
of the highlights:
Arkansas - S 502 (Broadway) Reciprocal bill, $100 permit,
2 cases per month, annual report, fines for underage delivery. Did not
pass. WI supports. Arkansas is adjourned.
Arizona - S 1316 (Leff) Partial fix of Arizona's
existing unworkable law. Amended down to only address the on-site sales
section, but has fixed that successfully. Now allows for a winery to facilitate
delivery of 2 case shipments for consumers physically present at the winery.
Passed and signed by Governor. WI supports. Arizona is adjourned.
Florida - H 665 (Garcia) & S 1692 (Margolis) Both
bills amended by wholesalers in attempt to moot litigation by removing
ability of in-state wineries to use common carriers for intra-state shipments.
Did not pass. WI is opposed. Florida is adjourned.
Georgia - H 154 (Noel) attempts to changes existing direct
shipping law to allow for internet orders (does not address problems with
phone, fax or catalogue orders). Did not pass. WI is watching. Georgia
is adjourned.
Hawaii - H 1465 (Hiraki) Removes requirement for consumer
permit from previous statute, and increases number of cases to be shipped
annually from 2 to 3 cases. Passed and awaiting Governor's signature.
WI supports. Hawaii is adjourned.
Indiana - H 1528 (Kuzman) would create a connoisseur's
permit for direct shipments. Did not pass. WI is opposed in current
form. Indiana is adjourned.
Kansas - HCR 5016 (House Fed & State Affairs) Calls
for study of direct shipments. Did not pass. WI is watching. Kansas
is adjourned.
S 2 (Senate Oversight Committee) Last minute amendment would have allowed
for winery to retailer shipments for pick up by consumers - retailer collects
$5 fee. Did not pass. WI was watching. Kansas is adjourned.
Kentucky - S 116 (Scorsone) Allows for direct shipments
from wineries who do NOT have a wholesalers only. Numerous problems with
bill (case definition inaccurate). Did not pass. WI is opposed in
current form. Kentucky is adjourned.
Maine - S 412 (Bennett) Would have allowed 24 1.5 liter
containers per month. $100 permit, reports, taxes paid, dry areas. Did
not pass. WI supports. Maine is adjourned.
Massachusetts - Multiple bills have been introduced -
when all are in print we will determine those that we support.
Maryland - H 621 (McIntosh) Changes existing (unworkable)
requirements by removing wholesaler - but still requires delivery to a
retailer - no customer direct home delivery, not reciprocal. Passed
and signed by Governor. WI is opposed in current form. Maryland is
adjourned.
S 514 (Harris) Changes existing (unworkable) requirements by removing
wholesaler - still requires delivery to a retailer. No customer direct
- therefore not reciprocal for MD wineries. Passed and signed by Governor.
WI is opposed in current form. Maryland is adjourned.
Mississippi - H 174 (Fleming) Would have permitted shipment
of up to 24 bottles per month from wineries. Died in Committee.
WI supported. Mississippi is adjourned.
Montana - H 606 (Stoker) Removed the connoisseur permit
provision of the Montana law, allowed MT wineries to sell at fairs and
festivals direct to consumer. Tabled in Committee. WI supported.
Montana is adjourned.
North Carolina - H 1108 (Gibson) Direct shipments - beer
and wine - 2 cases per month, $100 license, wholesaler notification, taxes
paid. In committee. WI supports. North Carolina is adjourned.
S 668 (Metcalf) direct shipments. 2 cases per month, permit requirements
($400 biennial fee) - winery must notify wholesaler of permit. Adult signature
labels required, 26 pt. type. Excise and sales taxes, quarterly reporting.
Passed both houses and sent to Governor on 7/16/03. WI supports.
North Carolina is adjourned.
North Dakota - S 2375 (Lee) Revises current direct shipping
law, adds beer and spirits - increases to 20 cases annually - moves tax
burden to consumer. Requires tax collection on shipments sent out of state.
Failed to pass Senate. WI opposed. North Dakota is adjourned.
Nebraska - L 393 (Hudkins) Changes cost of direct shipping
license fee from $500 to $25. Did not pass. WI supports. Nebraska
is adjourned.
Nevada - S 373 (Schneider) Attempts to fix UPS reporting
problems. Passed Senate 4/22 - Passed House 5/19. Signed by Governor
5/26/03. WI supports. Nevada is adjourned.
New Jersey S 920 (Cardinale) Allows consumer to receive
direct shipment of up to 60 bottles, $25 winery permit, annual report,
sales and excise taxes. In committee. WI supports with amendments.
New York - A 1418 (Farrell) & S 1192 (Kuhl) Industry
sponsored direct shipment bills. Permit required, fee. Taxes must be paid.
In committee. WI supports.
A 2316 (Tedisco) Would prohibit internet orders for direct shipments
of alcohol or tobacco. Only allows for those shipments to be made to a
licensed retailer. Would undermine our shipping bill. In committee. WI
opposes.
Rhode Island - H 5708 Direct shipments - 2 cases monthly,
taxes, permit, reporting. Died in committee.. WI supports. Rhode
Island is adjourned.
S 890 (Blais) Direct shipments - 2 cases monthly, semi-annual reports
and tax, permit required. Died in committee. WI supports. Rhode
Island is adjourned.
South Carolina - S 228 (McConnell) Direct shipping
- 2 cases monthly from winery, annual tax payments and reports (excise
& sales), $400 biennial permit (payable in August every 2 years). Passed
both houses and sent to Governor 5/22/03. Signed by the Governor 6/2/03.
Effective immediately. WI supports.
South Dakota - S 154 (Bogue) Claims to be direct shipping
- actually special order. Consumer places order through retailer for a
special order. Wine must move through wholesaler to retailer - prepaid
by consumer. Not reciprocal. Appears unworkable. Passed and signed by
Governor. WI is opposed. South Dakota is adjourned.
Texas - H 768 (Mowery) Direct shipment. Allows 1 case
per month from holder of winery shippers permit. Taxes paid, permit required.
In committee. WI supports. Texas is adjourned.
S 770 (Madla) Industry bill - 3 gallons monthly, taxes, reports, $100
permit. Passed Senate, did not pass in House - failed to meet 3rd
reading deadline 5/28/03. WI supports. Texas is adjourned.
Utah - S 153 (Valentine) Omnibus liquor bill which contains
a section making it a felony for an out of state licensee to direct
ship to a consumer in UT. Is very likely to pass. Passed and signed
by the Governor. WI is opposed. Utah is adjourned.
Virginia - H 1652 (Albo) and S 1117 (Hanger). Allow
for direct shipments after obtaining $50 permit. Wineries may ship up to
2 cases per month to a consumer. Reporting and taxes to be paid to state.
Passed and signed by the Governor. Effective date is July 1, 2003. WI
supported. Virginia is adjourned.
Vermont - H 172 (Chen) & S 37 (Bartlett) Would allow
for limited direct shipments. Problem with requirement that common carrier
employees would have to complete server training course. Died in Committee.
WI is watching. Vermont is adjourned.
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