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2009 Direct Shipping Update |
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In 2005 the United States Supreme Court affirmed a state’s broad power to regulate alcohol under section 2 of the Twenty-first Amendment with the release of Granholm v. Heald. Since Granholm the number of states allowing direct shipping to consumers has grown. At the end of 2008, consumers in thirty-four states were able to receive shipments. Halfway through 2009, three additional states enacted legislation allowing direct shipment. However, the movement toward nationwide direct shipping to consumers continues to follow a bumpy road. While a state may regulate delivery of alcohol, it may only create exceptions to a particular regulatory scheme that do not interfere with interstate commerce. In other words, a state must treat in and out-of-state wineries with evenhanded terms. A state may use discriminatory exceptions only if the state demonstrates the discriminatory exception advances a legitimate state purpose that cannot be adequately addressed through nondiscriminatory alternatives. The most exciting developments are on legislative fronts. Tennessee began allowing shipments on July 1, 2009, and will allow delivery from wineries with a shipping license but cap deliveries to a consumer at 9 liters per month and 27 liters per year. Kansas will allow delivery of up to 12 cases for offsite purchases so long as the winery holds a shipping license; or an unlimited amount for onsite purchase. Shipping of onsite purchases does not appear to require a shipping license. Finally, Maine will transition to a licensed shipping state on December 12, 2009. The state is in the process of finalizing specific regulations. With these additions, direct consumer shipment is available for states accounting for approximately 83% of United States wine consumption. Of course, for questions or information regarding specific state regulations you should contact the applicable state agency or an attorney. Other states saw significant legislative action. A bill in Maryland regarding direct shipping died in committee, while New Jersey legislation remains in consideration. Finally, Florida defeated an effort to impose a capacity cap that would ban shipping from wineries producing or selling more than 250,000 gallons of wine per year. |