The Beer and Wine Law Reformer -- Issue # 2
In Issue #2...
Wine Legislation
• Wine Re-Corking Legislation Signed by Gov. Ehrlich
• Emergency Legislation Allows Maryland Wineries to Self-Distribute
Beer Legislation
• More Beer Festivals on Tap for Frederick County
• Microbrewery Self-Distribution Legislation Dies
Around the Country
• CO: Legislature Approves Direct Wine Shipping to Consumers
• WA: Costco Federal Court Victory Could Impact Maryland’s Beer and Wine Laws
Beer and Wine Festivals
Wanted: Volunteers, Donations, Partnerships and Fundraisers
Maryland wine lovers and wineries had two big victories in the 2006 legislature: “re-corking” legislation passed, as did self-distribution legislation. Unfortunately wine “direct shipping” and grocery stores sales were defeated, as were bills that would have benefited Maryland beer connoisseurs and breweries.
Wine Legislation
Wine Re-Corking Legislation Signed by Gov. Ehrlich
Legislation to allow Marylanders to take home a partially consumed bottle of wine was signed by Gov. Ehrlich on April 25. SB 280 was passed unanimously by the House and Senate.
Beginning July 1, Marylanders will be able to go into a restaurant, order a bottle of wine, and no longer feel obligated to finish it. Instead, they can get the bottle “re-corked” and take it home with them — just as they would with leftover food. To avoid an “open container” violation, the wine bottle should be placed in the glove compartment, trunk, or behind the back seat.
The “doggie bag” legislation was supported by the Association of Maryland Wineries, the Restaurant Association of Maryland, and Marylanders for Better Beer and Wine Laws.
More on this legislation is here.
The governor’s press release announcing the legislation signing is here.
Maryland Wineries Allowed to Continue Self-Distributing
Another bill signed by Gov. Ehrlich on April 25 was SB 812, which allows small wineries both in and outside Maryland to self-distribute their own wines to retailers and restaurants. The emergency legislation had to be passed after the state comptroller, William Schaefer, told Maryland wineries earlier this year that they would no longer be able to self-distribute as of June 1. Schaefer’s order was in response to a lawsuit claiming that out-of-state wineries were being discriminated against because they weren’t allowed the same self-distribution rights as Maryland wineries.
For Maryland’s relatively young, but growing wine industry, passage of the legislation was critical to their continued existence. Small, start-up wineries can’t afford to pay middlemen to distribute their product — assuming a distributor would even carry their wine. Of the state’s 22 wineries, 17 will be allowed to self-distribute under the legislation.
Helping Maryland wineries doesn’t only help the industry though — it also helps the environment and state at-large. When more and more farmland is being developed into suburban sprawl, we need to be looking for viable agricultural products, and wine is one of those. As Del. Virginia Clagett (D-West River) told The (Annapolis) Capital, “I saw this bill as pro-agriculture, pro-small business and pro-wineries. I also saw it as pro-agro tourism.” Gov. Ehrlich — and every other Republican legislator — obviously agreed.
More on this legislation is here.
See also: “Glasses raised to two wine bills,” Washington Times, April 24, 2006.
Beer Legislation
More Beer Festivals on Tap for Frederick County
It appears that one thing that Democrats and Republicans agree on is that the state needs more beer festivals. On April 25, Gov. Ehrlich signed HB 259, legislation that would require the county alcohol board to approve four weekends a year for special beer festivals that promote Maryland beer. Under previous law, the board was authorized to issue a special beer festival license for only one weekend.
More on the legislation is here.
Microbrewers Not Allowed to Self-Distribute to Retailers
HB 1302, sponsored by Del. Paul S. Stull (R-Dist. 4A), would have allowed holders of Class 7 microbrewery licenses to sell beer directly to retailers, a reform that would have greatly helped Maryland’s microbreweries. Unfortunately the House Economic Matters Committee did not agree and gave the bill an unfavorable report on April 5.
More on the bill is here.
Around the Country
CO: Legislature Approves Direct Wine Shipping to Consumers
Colorado wine drinkers are loving life. As the Denver Post noted, they have been liberated by legislature, who has decided to allow direct shipments from wineries. Here’s an excerpt from the Denver Post editorial:
Raise a glass to the legislature, which finally aligned Colorado's laws governing wine sales with the U.S. Constitution.
House Bill 1120, which becomes law July 1, will let Colorado consumers shop online or by telephone for wines made anywhere in the United States, so they can receive their favorite vintages at home.
The full editorial is online here.
WA: Costco Federal Court Victory Could Impact Maryland’s Beer and Wine Laws
Wine afficianados and industry insiders have been waiting for one federal court decision for months, and the results are in: Washington state’s alcohol laws are unconstitutional according to a federal district court judge. As told by the Seattle Times:
On April 21, U.S. District Court Judge Marsha Pechman ordered the state to stop enforcing key parts of its system that governs the sale and distribution of wine and beer —ruling that the state's interests do not trump federal law.
The state's decades-old system regulates the sale of wine and beer by creating strict controls, which include artificially inflating prices, requiring beer and wine distributors to sell their products to every retailer at the same price, and banning volume discounts to large retailers.
Costco sued the state Liquor Control Board in February 2004, charging that its regulatory system was anticompetitive and violated federal antitrust law.
Pechman agreed with Costco in December, ruling that the system violated federal law.
The aim of the trial, held in late March, was to determine whether the state was shielded by the 21st Amendment despite the violation. The 21st Amendment granted each state broad power to control the sale of alcoholic beverages within its borders.
The Washington Liquor Control Board has appealed. Because Maryland has similar regulations, this ruling could eventually impact the state if it is upheld by the Supreme Court or if a similar challenge in brought here.
More on the case and appeal is here.
Beer and Wine Festivals
Now that spring is upon us, a number of beer and wine festivals are coming our way, including:
May 13, 2006: Maryland Brewer’s SpringFest, Great Frederick Fairgrounds, Frederick, MD
May 20-21, 2006: Wine in the Woods, Symphony Woods, Columbia, MD
June 10-11, 2006: Great Grapes! Wine, Arts, and Food Festival, Oregon Ridge Park, Cockeysville, MD
Wanted: Volunteers, Donations, Partnerships and Fundraisers
Marylanders for Better Beer and Wine Laws needs your help to make Maryland’s beer and wine laws better for consumers, Maryland’s independent wineries and brewers. This summer we’re planning on heading out to the festivals to build our grassroots network of reformers. To do that we need to pay exhibitor fees, buy banners, print education materials, and create promotional materials.
Please consider sending MBBWL a donation through Paypal today!
We are also looking for volunteers to exhibit at festivals, and wineries, breweries, and restaurants for partnerships and fundraisers. Please contact MBBWL Executive Director, Scott Ehlers, if you are interested in any of these opportunities.
Wine Legislation
• Wine Re-Corking Legislation Signed by Gov. Ehrlich
• Emergency Legislation Allows Maryland Wineries to Self-Distribute
Beer Legislation
• More Beer Festivals on Tap for Frederick County
• Microbrewery Self-Distribution Legislation Dies
Around the Country
• CO: Legislature Approves Direct Wine Shipping to Consumers
• WA: Costco Federal Court Victory Could Impact Maryland’s Beer and Wine Laws
Beer and Wine Festivals
Wanted: Volunteers, Donations, Partnerships and Fundraisers
Maryland wine lovers and wineries had two big victories in the 2006 legislature: “re-corking” legislation passed, as did self-distribution legislation. Unfortunately wine “direct shipping” and grocery stores sales were defeated, as were bills that would have benefited Maryland beer connoisseurs and breweries.
Wine Legislation
Wine Re-Corking Legislation Signed by Gov. Ehrlich
Legislation to allow Marylanders to take home a partially consumed bottle of wine was signed by Gov. Ehrlich on April 25. SB 280 was passed unanimously by the House and Senate.
Beginning July 1, Marylanders will be able to go into a restaurant, order a bottle of wine, and no longer feel obligated to finish it. Instead, they can get the bottle “re-corked” and take it home with them — just as they would with leftover food. To avoid an “open container” violation, the wine bottle should be placed in the glove compartment, trunk, or behind the back seat.
The “doggie bag” legislation was supported by the Association of Maryland Wineries, the Restaurant Association of Maryland, and Marylanders for Better Beer and Wine Laws.
More on this legislation is here.
The governor’s press release announcing the legislation signing is here.
Maryland Wineries Allowed to Continue Self-Distributing
Another bill signed by Gov. Ehrlich on April 25 was SB 812, which allows small wineries both in and outside Maryland to self-distribute their own wines to retailers and restaurants. The emergency legislation had to be passed after the state comptroller, William Schaefer, told Maryland wineries earlier this year that they would no longer be able to self-distribute as of June 1. Schaefer’s order was in response to a lawsuit claiming that out-of-state wineries were being discriminated against because they weren’t allowed the same self-distribution rights as Maryland wineries.
For Maryland’s relatively young, but growing wine industry, passage of the legislation was critical to their continued existence. Small, start-up wineries can’t afford to pay middlemen to distribute their product — assuming a distributor would even carry their wine. Of the state’s 22 wineries, 17 will be allowed to self-distribute under the legislation.
Helping Maryland wineries doesn’t only help the industry though — it also helps the environment and state at-large. When more and more farmland is being developed into suburban sprawl, we need to be looking for viable agricultural products, and wine is one of those. As Del. Virginia Clagett (D-West River) told The (Annapolis) Capital, “I saw this bill as pro-agriculture, pro-small business and pro-wineries. I also saw it as pro-agro tourism.” Gov. Ehrlich — and every other Republican legislator — obviously agreed.
More on this legislation is here.
See also: “Glasses raised to two wine bills,” Washington Times, April 24, 2006.
Beer Legislation
More Beer Festivals on Tap for Frederick County
It appears that one thing that Democrats and Republicans agree on is that the state needs more beer festivals. On April 25, Gov. Ehrlich signed HB 259, legislation that would require the county alcohol board to approve four weekends a year for special beer festivals that promote Maryland beer. Under previous law, the board was authorized to issue a special beer festival license for only one weekend.
More on the legislation is here.
Microbrewers Not Allowed to Self-Distribute to Retailers
HB 1302, sponsored by Del. Paul S. Stull (R-Dist. 4A), would have allowed holders of Class 7 microbrewery licenses to sell beer directly to retailers, a reform that would have greatly helped Maryland’s microbreweries. Unfortunately the House Economic Matters Committee did not agree and gave the bill an unfavorable report on April 5.
More on the bill is here.
Around the Country
CO: Legislature Approves Direct Wine Shipping to Consumers
Colorado wine drinkers are loving life. As the Denver Post noted, they have been liberated by legislature, who has decided to allow direct shipments from wineries. Here’s an excerpt from the Denver Post editorial:
Raise a glass to the legislature, which finally aligned Colorado's laws governing wine sales with the U.S. Constitution.
House Bill 1120, which becomes law July 1, will let Colorado consumers shop online or by telephone for wines made anywhere in the United States, so they can receive their favorite vintages at home.
The full editorial is online here.
WA: Costco Federal Court Victory Could Impact Maryland’s Beer and Wine Laws
Wine afficianados and industry insiders have been waiting for one federal court decision for months, and the results are in: Washington state’s alcohol laws are unconstitutional according to a federal district court judge. As told by the Seattle Times:
On April 21, U.S. District Court Judge Marsha Pechman ordered the state to stop enforcing key parts of its system that governs the sale and distribution of wine and beer —ruling that the state's interests do not trump federal law.
The state's decades-old system regulates the sale of wine and beer by creating strict controls, which include artificially inflating prices, requiring beer and wine distributors to sell their products to every retailer at the same price, and banning volume discounts to large retailers.
Costco sued the state Liquor Control Board in February 2004, charging that its regulatory system was anticompetitive and violated federal antitrust law.
Pechman agreed with Costco in December, ruling that the system violated federal law.
The aim of the trial, held in late March, was to determine whether the state was shielded by the 21st Amendment despite the violation. The 21st Amendment granted each state broad power to control the sale of alcoholic beverages within its borders.
The Washington Liquor Control Board has appealed. Because Maryland has similar regulations, this ruling could eventually impact the state if it is upheld by the Supreme Court or if a similar challenge in brought here.
More on the case and appeal is here.
Beer and Wine Festivals
Now that spring is upon us, a number of beer and wine festivals are coming our way, including:
May 13, 2006: Maryland Brewer’s SpringFest, Great Frederick Fairgrounds, Frederick, MD
May 20-21, 2006: Wine in the Woods, Symphony Woods, Columbia, MD
June 10-11, 2006: Great Grapes! Wine, Arts, and Food Festival, Oregon Ridge Park, Cockeysville, MD
Wanted: Volunteers, Donations, Partnerships and Fundraisers
Marylanders for Better Beer and Wine Laws needs your help to make Maryland’s beer and wine laws better for consumers, Maryland’s independent wineries and brewers. This summer we’re planning on heading out to the festivals to build our grassroots network of reformers. To do that we need to pay exhibitor fees, buy banners, print education materials, and create promotional materials.
Please consider sending MBBWL a donation through Paypal today!
We are also looking for volunteers to exhibit at festivals, and wineries, breweries, and restaurants for partnerships and fundraisers. Please contact MBBWL Executive Director, Scott Ehlers, if you are interested in any of these opportunities.
