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Thursday, April 20, 2006
Law - Wine law changes in Illinois and other states
"Shipping news means more choices for consumers, but some winemakers unhappy" is the headline of a story from the Chicago Tribune, by Bill Daley, as reprinted in the Arizona Republic. Some quotes from the lengthy report:
Blame, or credit, the court. Last May, the justices overturned laws in New York and Michigan that allowed wineries in those states to ship directly to residents while barring out-of-state wineries from doing the same. "Unfair," the justices said.This decision has rippled nationwide, prompting dozens of states, including Illinois, to reexamine their laws to ensure there are no discriminatory provisions. The process has pitted wineries seeking to sell their products directly to more customers against distributors trying to retain their traditional role as a conduit to retailers and restaurants.
Illinois law allows direct wine shipments from Illinois wineries and from wineries in states that have signed a reciprocity agreement with Illinois. That means wine from only a dozen states could be shipped directly to consumers in Illinois.
After the Supreme Court ruling, Illinois liquor officials came to view the reciprocity regulation as unenforceable. It allows wines to be directly shipped into Illinois from some states but not others, said Ted Penesis, industry education manager for the state Liquor Control Commission.
Illinois legislators are looking to amend the law so that residents can order up to 12 cases of wine a year directly from a winery in Illinois or elsewhere. That's up from the two cases of wine from an out-of-state winery allowed under the current law, but it also means a cap on how much Illinois wine an Illinois resident can order directly. Current law specifies no case limit. * * *
A devil's brew of special interests, from lawyers and lobbyists for wineries, beer and liquor distributors, retail store reps and politicians, has been stirring the proverbial pot across the nation as states grapple to define new wine shipping and distribution laws.
Trouble is, the U.S. Constitution gives the power to sell wine (and liquor and beer) to the states, meaning there can be up to 50 different sets of rules. All the Supreme Court's decision of last May did was rule that states couldn't discriminate against out-of-state wineries on behalf of in-state wineries when it came to direct shipping to consumers. It has to be all or nothing.
While most states have or are moving toward the "all" camp, some are going in the other direction. Other states are theoretically open to direct shipping but the fees they would levy on wineries can get pretty hefty - too high for a small winery to recoup in selling to three or four customers, said Dan Webb of Cameo Vineyards in Greenup, Ill.
What works in one state may not work in another. Indiana, for example, won't permit any wine to be shipped directly to a consumer unless that person pays a personal call to the winery. Michigan will let you drive into the state with one case of wine in your trunk; you can leave the state with as much wine as you can pack. And Iowa and Wisconsin officials are still talking of reciprocity, those if-you-take-mine-I'll-take-yours agreements that many think were dealt a death blow by the Supreme Court's decision. [emphasis added]
Posted by Marcia Oddi on April 20, 2006 09:06 PM
Posted to General Law Related