ShipCompliant Blog

Untangling the complex world of wine direct shipping and compliance

Archive for February, 2009

Tennessee’s AG Rules Consumers May Not Bring Wine into Tennessee, Federal On-Site Provision No Longer Applies

February 27th, 2009
By Annie Bones, State Relations - Wine Institute

On February 24th, 2009, Tennessee’s Attorney General issued Opinion No. 09-15, which concluded that consumers may not legally carry any amount of wine on their person into Tennessee. This ruling, prohibiting consumers from carrying wine into Tennessee, means that the federal on-site provision does not apply to consumers in Tennessee. Wineries are therefore prohibited from making shipments via common carrier to Tennessee consumers under any circumstance. All wine must enter Tennessee through the 3-tier system without exception.

On a positive note, a number of favorable direct shipping bills (Bill H 1155, S 166 & S 1690) have been introduced and are currently awaiting action in the Tennessee legislature. If enacted, these bills would create a direct-to-consumer shipping permit for wineries, allowing for the payment of taxes and reporting. Wineries with a permit would be able to ship up to 24 cases a year to Tennessee consumers, depending on which bill might pass.

Annie Bones, State Relations – Wine Institute

Massachusetts Still Question Mark for 30K-Gallon Wineries

February 8th, 2009
By R. Corbin Houchins, Beverage Industry Counsel

On January 16, 2009, the state filed its notice of appeal in the 2006 Granholm-based federal suit, Family Winemakers of California v. Jenkins. The District Court had entered judgment on December 18, 2008, enjoining enforcement of a statute that prevents direct shipment by 30,000-gallon-or-more wineries that sell through Massachusetts wholesalers (a category exclusively out-of-state), while affording smaller wineries, a category for which all in-state wineries qualify, “unfettered access.”

On February 3, 2009 the District Court transmitted the record of the case to the Court of Appeals, the first step in a process that may take a couple of years. The state can move for a stay in the District Court and, if unsuccessful, apply again in the Court of Appeals. Thus, it is unknown at this point whether the appeal will, at least temporarily, reinstate the status quo ante.