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Monday, March 13, 2006
Ind. Law - Compromise reportedly reached on wine shipping legislation
A release just in from representatives of the Indiana wine industry reports:
Vote expected today (Monday, March 13) on farm winery legislation (House Bill 1016)._______The 31 operating Indiana farm wineries have reached an agreement with alcohol wholesalers on the conference committee report to HB 1016, which is expected to be filed and signed by conference committee members this morning. As soon as both the House and Senate approve the conference committee report by a simple majority in each of their chambers, the nine Indiana wineries who filed a lawsuit in November 2005 in Marion County Superior Court have agreed to drop the suit.
“On behalf of the 31 Indiana wineries, we want to thank legislators from both parties for their invaluable assistance and time in helping us reach the agreement on this conference committee report,” said Larry Satek, president of the Indiana Winegrowers Guild and owner of Satek Winery in Fremont, Indiana.
“Many legislators were instrumental in crafting this compromise, notably Senator Garton and Representative Whetstone. Other legislators who played a key role include Senators Lanane, Lewis and Steele, and Representatives Robertson, Welch, Koch, Stutzman, Kuzman, Bardon, VanHaaften and Long. We are grateful there are many elected officials, and customers, who are passionate about helping Indiana farm wineries and agri-tourism.
“If passed, this bill will help make it possible for Indiana’s farm wineries to continue to operate and prosper,” said Satek. “There are still challenges up ahead, but this bill today is a step in the right direction.”
As HB 1016 was originally written*, it would have killed Indiana’s farm wineries’ business and consumers’ choices. This legislation, and provisions of some past bills, would not only have banned wineries from direct shipping to customers and retail outlets, but also would have jeopardized their ability to sell on the premises via tasting rooms.
A core issue at stake nationally is addressing the outdated three-tier liquor distribution system. Indiana wineries’ business was not built on the three-tier system, and direct sales to consumers and retailers are the foundation of Indiana wineries’ business model (up to 40 percent of sales for some wineries).
*Presumably this means "as the proposed compromise was originally written," as HB 1016, as passed by both houses, concerned pretrial fees. The conferees apparently have now agreed to strip HB 1016 and insert the compromise wine shipping language, which then must be approved via passage of a conference committee report on HB 1016 in each house.
The language of the conference committee report has not yet been filed. When it is, it will be linked to here.
Posted by Marcia Oddi on March 13, 2006 12:45 PM
Posted to Indiana Law