LEGISLATIVE UPDATES
An alphabetical update on recent action in select states:
ALASKA: Continued progress on changes to permit laws
As you will remember, taking effect at the start of 2024 was a rewrite to current rules governing the Manufacturer Direct Shipment License (MDSL), which is a license that the Alaska Alcohol & Marijuana Control Office (AMCO) requires wineries of all sizes to obtain.
The AMCO Board has finally published their revised rules and these are now open for public comment. This comment period runs through June 3, 2024, at which time the rules will be finalized by the AMCO Board.
While it has been a long process, the Wine Institute is pleased that the new language does address a number of concerns including data privacy, allowing a winery to utilize an online age verification service, and removing rules requiring wineries to comply with "no-shop" customer lists.
More details from Wine Institute on this matter can be found here.
ARIZONA: Ensure your licenses are up to date
The Arizona Department of Liquor Licenses and Control (DLLC) has significantly expanded its enforcement efforts to stop illegal direct to consumer shipments coming into the state. Wineries are advised to ensure they obtain proper Arizona liquor licensing and that all contact information is complete and up to date. The two licenses that are available are a Direct to Consumer Wine Shipment (series 17W) license or Out of State Farm Winery (series 02W - producing up to 20,000 gallons of wine).
More information can be found here.
DELAWARE: HB 262 to be heard on May 14, 2024
House Bill 262 is now scheduled to be heard on May 14. This is a bipartisan initiative led by State Rep. Mike Smith (R-Pike Creek Valley) seeking to modernize existing laws. Currently, Delaware remains among the few states in the U.S. where direct shipment of wine to consumers is prohibited.
Free the Grapes has been supporting this bill through press coverage and a consumer letter writing campaign. Consumers can send a letter to their legislator through this link: https://freethegrapes.org/alert/winery-delaware/
WISCONSIN: "Fix-it" legislation in the works
At the end of 2023, an omnibus liquor bill was forced through the legislature that would have imposed significant restrictions on DTC shipping into the state. Wine Institute is working closely with the Secretary of the ABC to create "fix-it" legislation regarding the carrier language, and promisingly the Governor did sign this. However, there is still more work to be done related to fulfillment houses and winery in-state agents.
For more information form Wine Institute on this matter, see this link.
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/
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