Posts from the Maine Category
It’s Alive! (and Waiting for the Governor’s Signature) – Direct Shipping Bill in Maine
June 2nd, 2009
On May 29th, “An Act To Increase Consumer Choice for Wine” (H 696) won initial approval by the Maine House of Representatives. On June 1st, only one legislative day later, the proposed act was passed by the Senate. The bill is waiting for Governor Baldacci’s signature before becoming law.
If passed, H 696 would provide for a direct shipping permit, which would allow wineries to ship up to 12 cases of wine per year to the doorsteps of Maine consumers over the age of 21. As with any direct shipping bill, the freedom to deliver wine to a consumer’s home comes with a few restrictions, but none are overly burdensome. Some specific requirements include:
- Collection and payment of sales tax
- Quarterly reporting and payment of excise tax
- $200 license fee; $50 renewal fee
- Photo ID verification and signature of recipient upon delivery
- Licensees may not ship wine in a container smaller than 750 mL
- Licensees may not ship to local option areas or areas identified as a prohibited shipping area
The expeditious passage of H 696 through the Maine Senate is a welcome event for wineries across the country. A bill that would allow winery-to-consumer shipping in Tennessee is also waiting for a signature from their governor. If both of these measures are signed into law, Maine and Tennessee will join Kansas in the ranks of previously prohibited states who have adopted favorable direct shipping laws in 2009.
UPDATE: The Senate introduced an amendment that addresses some carrier issues as proposed in Committee Amendment “A”. The bill must again be read (date set for 6/3/2009) by the House before being considered for passage into Law.
UPDATE 6/5/2009: The Maine legislature passed the bill to be enacted on June 5th, 2009 with a carrier amendment. The bill is now ready to be sent to the governor. Once received by Governor Baldacci, he has 10 days (not including Sundays) to take action, otherwise the bill becomes law without his signature.
It's Alive! (and Waiting for the Governor's Signature) – Direct Shipping Bill in Maine
June 2nd, 2009
On May 29th, “An Act To Increase Consumer Choice for Wine” (H 696) won initial approval by the Maine House of Representatives. On June 1st, only one legislative day later, the proposed act was passed by the Senate. The bill is waiting for Governor Baldacci’s signature before becoming law.
If passed, H 696 would provide for a direct shipping permit, which would allow wineries to ship up to 12 cases of wine per year to the doorsteps of Maine consumers over the age of 21. As with any direct shipping bill, the freedom to deliver wine to a consumer’s home comes with a few restrictions, but none are overly burdensome. Some specific requirements include:
- Collection and payment of sales tax
- Quarterly reporting and payment of excise tax
- $200 license fee; $50 renewal fee
- Photo ID verification and signature of recipient upon delivery
- Licensees may not ship wine in a container smaller than 750 mL
- Licensees may not ship to local option areas or areas identified as a prohibited shipping area
The expeditious passage of H 696 through the Maine Senate is a welcome event for wineries across the country. A bill that would allow winery-to-consumer shipping in Tennessee is also waiting for a signature from their governor. If both of these measures are signed into law, Maine and Tennessee will join Kansas in the ranks of previously prohibited states who have adopted favorable direct shipping laws in 2009.
UPDATE: The Senate introduced an amendment that addresses some carrier issues as proposed in Committee Amendment “A”. The bill must again be read (date set for 6/3/2009) by the House before being considered for passage into Law.
UPDATE 6/5/2009: The Maine legislature passed the bill to be enacted on June 5th, 2009 with a carrier amendment. The bill is now ready to be sent to the governor. Once received by Governor Baldacci, he has 10 days (not including Sundays) to take action, otherwise the bill becomes law without his signature.
Woman of the Hour – Tracy Genesen
August 7th, 2008
Tracy Genesen of Kirkland & Ellis, LLP is one of the prominent forces currently driving legal change in the wine industry and was the keynote speaker at ShipCompliant’s 2008 Users Conference a few weeks ago.
Genesen’s speech analogized her role in the industry to a “court of last resort” when legislative means are unsuccessful in remedying protectionist state laws that have remained in effect despite the Granholm ruling in 2005. Granholm resolved many instances of differential treatment by the states and was extended to apply to self-distribution in the Costco ruling. However, Genesen revealed that the post-Granholm time of prosperity has given way to another host of problems. For example, states like Maine and Arkansas, in which direct shipping markets do not exist, have level playing fields; however, treating everyone the same by not allowing anyone to ship is a detriment to the wine industry. In addition, courts are struggling to deal with retail-to-consumer shipping laws in many states. Challenges to these laws have produced interesting results, like the “funky remedy” by a district court judge in a Texas lawsuit which declared that Granholm applied to retailers, but that retailers must first buy wine through Texas-licensed wholesalers. Wholesalers have also maintained their grip on states like Massachusetts by crafting legislation that is beneficial to them but also facially neutral. The 30,000 gallon capacity cap in Massachusetts exemplifies such economic protectionism and is the contention in the Family Winemakers of California case. Oral arguments in the case took place on July 29th in Boston and the decision is expected sometime this fall.
Many thanks to Tracy Genesen for sharing her insights into the current legal atmosphere of the industry. To view Genesen’s speech in its entirety or that of any of the other speakers at the conference, please see the 2008 Users Conference Simulcast. More information on the cases in Massachusetts and Texas is also available on the ShipCompliant Blog.
Wine Distribution Notes – Release 28
May 21st, 2008
The latest version of Notes on Wine Distribution by R. Corbin Houchins is now available for viewing or downloading. Release 28 highlights changes in the following categories: Age & Identity Verification, Rethinking Reciprocity and State Notes, specifically Arizona, Florida, Georgia, Maine, Ohio, Oregon and Pennsylvania. Headings of sections with substantial changes since the preceding release (published in early April, 2008) are highlighted, so that you can easily find the updated sections.
You can always view the most current version of Houchins’s Notes on Wine Distribution by visiting ShipCompliantBlog.com and clicking on the “Wine Distribution Notes” link under “Compliance Resources” on the right-hand side of the page.
Wine Is Not the Maine Event
April 18th, 2008
A bill that would have allowed in-state and out-of-state producers, suppliers, importers, wholesalers, distributors and retailers to ship wine to Maine consumers passed through the Senate but after a close vote, died on the House floor yesterday evening. If LD1987 (a.k.a. SP781) would have passed as amended by the Senate, the bill would have allowed licensed entities to ship up to 108 Liters of wine to an of-age individual in a calendar year. Other requirements:
- Containers of wine shipped cannot be smaller than 750 mL
- Report and pay sales and excise taxes
- The bureau may adopt rules requiring specific labeling and registration requirements for direct shippers
- “The direct shipper or 3rd party carrier contracted by the direct shipper… check for a valid form of identification demonstrating proof of age.” Common carriers register with the state of Maine.
LD 1987 went far in its legislative journey before failing in the House. The bill would have been a step forward for Maine consumers and offered wine producers, retailers, and wholesalers alike an equal opportunity to ship wine directly to eager consumers.
