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Free The Grapes - news

Post by Roy Hersh »

October 2008

LITIGATION UPDATE

Michigan: Retailer-to-Consumer Shipment Ban Overturned, Decision Stayed
On September 30, U.S. District Court Judge Denise Page Hood ruled that Michigan’s ban on retailer-to-consumer shipments was unconstitutional. The decision in Siesta Village Market LLC v. Granholm is stayed, giving the state time to appeal, so the current prohibition remains in effect. The judge essentially declared that the 2005 ruling, Granholm v. Heald applies to retailer shipments as well as winery shipments.

Indiana: Face-to-Face Requirement Upheld, Decision Stayed
An Indiana judge upheld a state law that allows wineries to sell wine directly to consumers as long as they have made an initial visit to the winery premises. The ruling was remanded to a lower court, which originally overturned the ruling, in order to issue an order in line with the newest ruling. Attorneys are awaiting regulatory and compliance specifics from state regulators.

Massachusetts – Waiting on Ruling
Attorneys on all sides await this fall’s ruling on Family Winemakers of California v. Jenkins, which challenges the state’s ban on shipments from wineries producing an aggregate of more than 30,000 gallons.

LEGISLATIVE UPDATES

In the world of news coverage, the removal of an overly burdensome state regulation does not make a sexy headline. Editorial coverage of the direct shipping issue tends to focus on definitive events like the signing of a new permit bill or the issuance of a court ruling. That’s news.

But efforts to streamline overly complex and burdensome state regulations have been underway, albeit quietly, for several years. They may not make the headlines, but they are enormously important.

Wine industry representatives from Wine Institute, Family Winemakers of California and WineAmerica have aggressively pursued a reduction of the regulations that seem to fly in the face of logic as well as the concept of a single economic union envisioned by the founding fathers. The results are good for wineries faced with a dizzying array of reports and requirements, and consumers who are finally enjoying increased choice in the wine marketplace.

Here are a few of the many victories worth highlighting:

• Georgia: The poster child of unworkable state shipping laws. GA, as wineries well know, imposed different regulations depending on whether a winery had a distribution agreement. This law was mercifully replaced through a partnership effort between Wine Institute and local wineries resulting in a new law that removed the distribution exclusion, included a modest $50 annual winery fee, and went into effect July 1.


• Virginia: The 2003 permit bill required winery owners to submit a full criminal background check as part of the application process. That requirement was removed in 2004.


• New Hampshire: The 1998 permit bill included a $228 annual winery fee, and based on the success of the program, was eliminated in 2001.



What follows are updates from last month:

• Washington, D.C.: Rule Change Increases Shipping Limit. It’s not often we have an update on shipping rules in DC, but the District increased its volume limit from “one quart” to one case per person per winery per month. There continues to be no permit, reporting or tax requirements for direct shippers. However, wineries must comply with their common carrier’s wine shipping policy.



• New Mexico: Free the Grapes! Needs More Consumer Supporters. New Mexico, one of the remaining reciprocal states, may consider a new bill during the short 2009 legislative session. Please forward this email to your friends and colleagues in New Mexico, and ask them to sign-up to the Free the Grapes! email list so we can keep them informed.


• Wisconsin Increases Case Limits. Effective October 2, 2008, Wisconsin replaced its reciprocal law with a winery permit system. The new law increases the shipment limit from three cases per person per year to 12 cases per person per year (consumers are responsible for complying with the annual volume limit).
Ambition driven by passion, rather than money, is as strong an elixir as is Port. http://www.fortheloveofport.com
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