Friday, October 5, 2007

Governor Signs the Bill


Free the Grapes!: New Illinois Law to Expand Consumer Choice for Winery-to-Consumer Shipments from 5 to 50 States, But Corks Out-of-State Retailers

NAPA, Calif.--(BUSINESS WIRE)--Illinois Governor Rod Blagojevich yesterday signed House Bill 429 which goes into effect June 1, 2008. The new law dramatically expands consumer choice for winery-to-consumer purchases made by Illinois wine consumers. Under the new law, wineries in all 50 states may purchase a permit to ship. Under the old law, wineries in just five states, including Illinois, were allowed to direct ship to Illinois consumers. The trading network of states with so-called ‘reciprocal’ wine shipping arrangements has decreased from a dozen to just five: New Mexico, Wisconsin, Iowa, Oregon (changes to permit law in January 2008) and Illinois (changes to permit law in June 2008).

Next year, Illinois will join the majority of U.S. states (34) who have either replaced reciprocity language, or replaced an outright shipping ban, with the successful model direct shipping bill.

“The new law is a boon for winery-to-consumer shipments, and long overdue, but unfortunately it corks out-of-state retailers. An amendment, widely supported by Illinois consumers and Free the Grapes! would have allowed out-of-state retailers the same privileges as wineries. It was defeated by powerful Illinois retailers and wholesalers,” said Jeremy Benson, executive director, Free the Grapes!, a winery-consumer grassroots coalition.

Under the new law, wineries from every state will have the option of purchasing a permit from the Illinois Liquor Control Commission that allows them to ship up to 12 cases per individual per year, among other provisions.

Since the U.S. Supreme Court ruled on direct shipping in May 2005, winery-to-consumer shipping has become legal in 34 states, which collectively represent 78% of wine consumption in the U.S. Most states have successfully implemented the model direct shipping bill, which allows wineries to purchase a permit, pay taxes, mark boxes, and consent to the jurisdiction of the state, among other provisions. Free the Grapes! is a national consumer grassroots coalition of more than 300,000 members and supports legal, regulated direct-to-consumer wine shipments.

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