LEGISLATIVE UPDATES
As many state legislatures adjourn for 2023, we can provide an update on recent actions and results.
ALASKA: New Permit Law Effective 1/1/24
A reminder that, effective January 1, 2024, the 2022 liquor omnibus bill replaces the “reasonable amount” provision with a permit allowing up to 12 cases annually and no more than 2 cases per shipment.
ALABAMA: Wine Institute Streamlining Regulations
Wine Institute is working with the ABC to streamline applications and provisions. Note that the state ABC removed the SOS registration requirement from applications. New application forms are available at the ABC Board’s website reflecting recent changes that simplify the process.
DELAWARE: Positive DTC Bill Pre-filed for 2024
We hoped a new bill would get consideration prior to the legislature’s adjournment on June 30. While that didn’t occur, the good news is that a similar bill, HB 262, was pre-filed this month for consideration in 2024. The bill has eight sponsors, a positive signal for next year. Delaware is one of three states with a complete ban on winery DTC shipping.
IOWA: Eliminates Winery Bond Requirement
As previously reported by Wine Institute, the Iowa Alcoholic Beverages Division eliminated the bond requirement for a wine direct shipper permit in its online licensing system. The removal became effective on 8/1/22.
KANSAS: Gallonage Tax Report Moved to Monthly
H 2058 was signed by the Governor, changing the gallonage tax reporting frequency from quarterly to monthly.
MAINE: Bottle Bill and Bottle Size Bills Pass
House Bill 535 requires that winery DTC shippers adhere to the state’s bottle deposit law starting in 2025. Wine Institute will provide winery instructions as they are available. Separately, House Bill 885 removes the current statute limiting winery DTC shipments to 750ml bottles only. Both bills passed and were signed by the Governor.
MISSISSIPPI: Bills to Replace Special-Order Provision Fail
The state’s special-order provision is not working, as anticipated. HB 1137 and HB 385 included a faulty tax rate and, while H 1137 was improved, both bills failed to move.
MISSOURI: Case Limit, Carrier Bills Fail
H 1153 would have changed the quantity limits from 2 cases/month to 24 cases/year. S 697 would have required common carriers to file reports including “quantity,” rather than weight, of the shipment, and the active shipper’s license number. Separately, a reminder that sales in the state over $100k trigger tax nexus as of 1/1/23.
MONTANA: Reporting Frequency Improves
As of 7/1/23, the reporting frequency for tax collection moves from monthly to quarterly.
NEBRASKA: Product Registration Bill Passes
L 376 requires shippers to register products to be shipped, including the primary source of supply, and the COLA. The bill passed and was signed by the Governor.
NEW JERSEY: Bills Pending in Second Year of 2-Year Session
Two bills addressing the ban on shipments from wine companies producing more than 250,000 gallons per year are pending during this second year of the NJ session. Wine Institute’s favorable bill would introduce a new license for wineries who produce more than the cap. Complicating matters, Naked Wines has proposed similar legislation, but it would only apply to wineries without a NJ wholesaler – which means it would apply only to Naked Wines.
OKLAHOMA: Fulfillment House Shipments Not Permitted
The ABLE Commission continues to interpret their law as prohibiting the shipment of DTC wines via a fulfillment house, requiring that the shipments be made from the address on the DTC license. Wine Institute continues to work on a solution.
Separately, Free the Grapes was active this year in engaging consumers to oppose specific language in S 796 -- unworkable common carrier “quantity” language. The provision was amended out prior to the bill’s passage and signature by the Governor.
RHODE ISLAND: Onsite Visit Requirement Remains in Effect
Wine Institute will continue to seek to support a bill removing the onsite visit requirement.
WISCONSIN: Potential Fulfillment House Issue
A 305, an omnibus liquor bill, passed the House 6/20/2023 and includes restrictions on common carriers and fulfillment houses. Wine Institute is seeking amendments in the Senate.
DTC WINE SYMPOSIUM: SAVE THE DATE, January 17-18, 2024
The DTC Wine Symposium -- presented by and a fundraiser for Free the Grapes! -- will be held January 17-18, 2024, at the Hilton Concord Hotel in Concord, CA (East Bay).
“We are thrilled to offer this year’s conference fully in person,” said Brandon Allen, event chair and DTC Manager, Van Duzer Vineyards in Oregon. “While we were fortunate to be able to offer content through a mix of virtual and in person sessions over the past few years, there is nothing like being in the same room with the leading DTC wine professionals.”
Information on sponsorship opportunities will be available on the Symposium website beginning later this summer, and session topics and speakers will be finalized in late fall.
For updates, please visit https://dtcwinesymposium.com/, subscribe to Free the Grapes! newsletter at https://freethegrapes.org/ and/or follow the DTC Wine Symposium on https://linkedIn.com/company/dtc-wine-symposium
