Family Winemakers of California An Association of California Table Wine Producers
Florida remains open for shipping; production cap bill languishes The Florida Legislature adjourned today without passing a direct shipping permit bill, thus leaving the state open for wine shipping for the remainder of 2008 under the current conditions. Family Winemakers of California lobbyists, in conjunction with Wine Institute advocates, managed to keep a last day blitz by the wholesalers contained. SB 1096 (Saunders) was not taken up by the House on the last day, which meant no bill would be passed.
Speaker Marco Rubio and Representative Ellyn Bogdanoff were instrumental in keeping Florida open for consumers. She refused to move any legislation with a discriminatory production cap. Rubio declined, despite political pressure, to allow the bill to be taken up for action. Florida has seen significant growth in direct to consumer sales and the state has benefited from the excise tax flowing to the state treasury. Arizona shipping law upheld; Texas stops retailers Last week saw a flurry of activity in two states that restrict consumer access to out-of-state wine. In Arizona, a U.S. court judge upheld state law which prohibits an out-of-state producer making more than 20,000 gallons from qualifying for a direct shipping permit. The court also upheld the state's face-to-face first transaction requirements. The judge noted in the opinion that the plaintiffs had not proven harm. In Texas, the Alcoholic Beverage Commission began enforcing the court decision in the out-of-state retailers case (Siesta Village v. Steen). Out-of-state retailers must obtain a Wine Only Package Store license in order to ship.
The Arizona case another in which a production cap has been upheld. Arizona consumers must travel to other states to make the first purchase and make sure that the winery has the direct shipping permit. That's a significant burden for consumers and will likely mean that many wineries across the U.S. won't seek a permit. The rule protects in-state wineries and wholesalers from competition. The Texas action, noted in an April 22 notice to interested parties, means that out-of-state retailers must follow Texas law if they obtain a permit. That requires wine to be sourced from a Texas wholesaler and reshipped to a Texas resident from out-of-state. That is an unlikely scenario.
Massachusetts production cap case moves forward The discovery phase of the FWC's lawsuit challenging the state’s directing shipping 30,000-gallon production cap provision has drawn to a close. Both sides have taken depositions; FWC President Paul Kronenberg was deposed by the Massachusetts Attorney General's office on March 21. William Kelly, general counsel for the state's ABCC, Bill Buckley, former president of the Wine & Spirits Wholesalers of MA, and Richard Pelletier, owner of Nashoba Winery have been deposed by FWC attorneys.
The current court schedule calls for summary judgment filings on May 29. Cross-summary judgment and response filings are due June 23. The reply filing deadline is July 7. Oral argument has been set for July 29 at 11:30 a.m. Click here to view the complaint.
Which wineries do direct-to-consumer sales? Welcome to Family Winemakers of California's web site. The most value-added feature of the web site is our "Buying CA Wine" consumer map. Click there and you can simply find out if you live in a state that allows direct to consumer sales and more importantly, which Family Winemakers members are selling in your state. The list you'll find under each state will give you a direct link to that winery and its online store. Each state page contains valuable information for consumers buying wine.
Quick contact info If you'd like to contact us you may do so by calling (916) 498-7500. Our fax number is (916) 498-7505.
Or write us a letter and mail it to: Family Winemakers of California 520 Capitol Mall, Suite 260 Sacramento CA 95814 info@familywinemakers.org
