DTC SHIPPING LEGISLATIVE UPDATES
An alphabetical update on recent actions in select states:
ALASKA: Resolution reached
As of June 28, 2024, the AMCO Alcohol Board finally approved the MDSL/Package store shipping rules - and these have just been confirmed to go into effect August 23, 2024. These rules clarify the outstanding issues that have caused us to recommend a pause in licensing and shipping until they could be resolved. It has been a tedious process but the final resolution creates a system where wineries can ship without concern for inadvertently violating previous provisions of the original rules.
For additional information, view Wine Institute’s Alaska DTC web page and the PDF of the new rules.
DELAWARE: Looking ahead to 2025
As you may be aware, House Bill 262 was scheduled to be heard in May. This was a bipartisan initiative led by State Rep. Mike Smith (R-Pike Creek Valley) seeking to modernize existing laws. Unfortunately, based on the opinion of the bill sponsor, there weren’t enough votes to get it out of committee and the decision was to pass on the bill this year. The new plan is to reintroduce this bill in early January, after the elections and at the start of a new session. Thanks to all of our consumer fans in Delaware who wrote to their legislators in support of HB 262, or volunteered to testify.
MASSACHUSETTS: Creating workable definitions
Massachusetts ABC has sponsored a bill to further define “wines of your own production” for wineries making DTC shipments into the state. They include the term “brand label” in the proposed rule, a term which could have posed problems for wineries with second labels. Wine Institute worked with the ABC to provide a workable definition, and the bill has passed the legislature and is now awaiting action by the Governor.
MAINE: License extension
Carrie Rand Anastasiades (Wine Institute Director, Northeastern States) has been working with BABLO staff regarding the new ownership disclosure rules for licensees. BABLO staff has indicated that all licenses would be extended 60 days past the new ownership disclosure bill, which is effective August 9th. According to BABLO, the individuals responsible for licensure should be receiving an email letting them know an extension has been given.
NEVADA: Bonds and fulfillment houses
Wine Institute continues to work with its members and Nevada regulators regarding fulfillment and bonded warehouse issues related to Certificates of Compliance. Wine Institute had provided information to the regulators explaining that licensed public warehouses (i.e. fulfillment houses in CA) are not required to hold a bond. The proposed rule would, however, impact any bonded warehouse making shipments to wholesalers or importers in the state. WI will monitor the issue and inform members as necessary moving forward.
NEW JERSEY: End of year action likely
We continue to expect an opportunity for a bill to be heard in support of removing the existing capacity cap in this state. Likely, this would not be until the end of the year, after the election.
NEW YORK
The state legislature recently passed a spirits DTC shipping law that contains a capacity cap and reciprocity restrictions which we believe are unconstitutional. The bill is still awaiting action by the Governor.
OREGON: Packaging responsibility question
A question arose regarding the Extended Producer Responsibility (EPR) act: If a winery is shipping into a state, is the winery responsible for the packaging if that shipment is coming from a fulfillment house? The current interpretation from OR regulators is that the fulfillment house is responsible, and so the warehouse would need to be registered in the state’s EPR program. Note that other states have said it is the responsibility of the winery. Wine Institute continues to work through this issue, and others related to EPR. The hope is to have wine bottles covered under the Oregon Beverage Recycling Cooperative’s bottle deposit program rather than being in the EPR program.
WISCONSIN: Common carrier provisions resolved
In summary, the crucial common carrier provisions that would have stopped shipments have been fixed. However, Wine Institute is still working to improve the fulfillment house provisions, as well as the requirement for an in-state agent for wineries.
ALL STATES REMINDER: Use your own shipping permit!
It is the position and recommendation of Wine Institute that every winery obtain and utilize their own permits with each state where they are shipping wine. Utilization of a permit belonging to a third party can raise flags in certain situations, and there are a number of states that are paying closer attention to these instances, with potentially negative outcomes.
More compliance guidelines can be found at: https://wineinstitute.compliancerules.org/
SAVE THE DATE: DIRECT TO CONSUMER WINE SYMPOSIUM
January 21-23, 2025 - Hyatt Regency in Monterey, CA, Monterey, CA
The 18th annual conference, presented by and as a fundraiser for Free the Grapes!, is the nation’s premier industry conference dedicated to winery direct-to-consumer sales and marketing. Don’t miss the annual “State of the States” presentation given by Steve Gross of Wine Institute for more information on these and other topics!
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