LEGISLATIVE UPDATES ON DTC SHIPPING
This spring has been a busy season for legislative activity around DTC shipping and associated issues. We saw some great success in a couple of areas, while in other areas we remain hopeful that we can continue our campaigns in the next legislative sessions.
Below is a look at current activities by state, of note:
ARKANSAS: Success!
We’re happy to report success in Arkansas! This state was one of two that maintained an on-site purchase requirement. But the Governor of Arkansas has recently signed legislation (H 1476) that will finally make the state open to winery-to-consumer direct shipping. The other state that still maintains an on-site order requirement is Rhode Island. Just like in Arkansas, consumers are required to make a visit to the winery premises before their orders can be shipped to them. With this change that Arkansas has made to come in line with the majority of other states, we hope Rhode Island may re-evaluate its own requirements. Read more about it all on our blog.
DELAWARE: Looking to the fall
(Updated May 9, 2025) For years we have been encouraging passage of DTC shipping in Delaware, one of now just two states left with an outright ban on shipments. As of now, we expect to see a bill introduced by our former sponsor (Smith) by June 2025, although fiscal and budgetary constraints will present some challenges to its success. There will also likely be a second bill by Rep. Speigelman, although this may include some unacceptable restrictions, such as limiting it to products not already sold in DE. Both potential bills will be alive until June of 2026 and we'll keep you updated on their chances.
MINNESOTA: Legislation of note
A bill is under consideration that could replace the current, very limiting requirements. Currently, winery-to-consumer direct shipments are limited to 2 cases per person every calendar year. Bill H 2552 could change this to allow for up to 12 cases per person annually and move to a permit-based model. We will keep you updated on any progress with this legislation.
MISSISSIPPI: Open to Shipping!
Bill S 2145 was signed into law by the Governor on 2/27/25. This will take effect as of July 2025 and open the state for winery-to-consumer direct shipping for the first time. The original language in this bill contained some concerning points, some of which were remedied more recently with the passing of S 2851, on 4/10/25. The requirements still limit consumer choice by restricting DTC sales to only those wines not sold in the state control system, or to those wines already offered for sale but identified by distributors, brokers, or solicitors as “highly allocated” via a state website. Ultimately, this is a very small selection of wines. However, a partial fix for some other concerning features was implemented with the passing of S 2851. These fixes removed criminal penalties that were originally included in S 2145, replacing them with civil penalties. We will continue to see if progress can be made on changing the limitations on wine selection for DTC shipping as things move forward.
NEW JERSEY: Looking for Action in the Fall
As in Delaware, we did not see an opportunity to introduce legislation in this session as we had hoped. But we’ll look ahead to the fall session to see if we can make further progress on removing the capacity cap on DTC shipping currently in place.
TEXAS: Bill of interest on the horizon
Texas has a bill under consideration (H 5397) that would allow a direct shippers (DS) permit holder to bring in wine and have tastings at permitted civic or wine festivals, farmers markets, celebrations, or "similar events". The wine must have been produced or bottled by the DS permit holder and can be legally transported by the DS permit holder to the event for the tasting. This could be very helpful for marketing events in the state, especially if the winery does not have the help of a wholesaler in the state. We are watching this bill and will keep you updated on its progress.
SEVERAL STATES: Packaging, Recycling, and ERP
This space continues to see a lot of activity of all stripes. Bills relating to these topics are currently in discussion in North Carolina, Oregon, Rhode Island, Washington, and West Virginia.
As a reminder, Wine Institute has created a tool for producers, which members can access through the Member Hub when they are logged in.
Wine Institute’s Member-Only Extended Producer Responsibility (EPR) & Bottle Deposit Laws Resource
This resource allows Wine Institute members to keep track of the compliance and reporting requirements in each state that has passed legislation related to Extended Producer Responsibility (EPR), Post Consumer Recycled Content (PCRC) and/or a bottle bill. This will be a dynamic section of the website that will be updated as laws are passed and regulations are developed.
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/
