arkansaswinelegislation.org

Thursday, March 15th, SB592 was introduced by Rep. Ruth Witaker that would allow instate & out of state winerys to ship to their customers.  This bill is very important not only for all wineries, but to wine lovers of Arkansas.  Over thirty states have already passed legislation allowing direct shipping, however currently shipping wine into arkansas is illegal.  This bill will allow Arkansas residents to sign up for the wine clubs that they have been denied, order wine online to be shipped, and open up Arkansas wineries to ship to their customers within the State of Arkansas. Without this bill, HB1651 that is now being decided on will take away the current law of allowing shipping within the state of Arkansas.  Thus, if SB592 does not pass, Arkansas wine lovers will not be able to receive any shipments of wine.  The arguements against this bill is the concern of selling alcohol to minors.  The Federal Trade Commission report to Congress in 2003 states that minors are more likely to get alcohol from friends, and family then they are from commercial sources.  SB592 will also dismiss any further lawsuits that could arise from unfair trade issues.  This bill is very important not only to Arkansas wine loving consumers, but for all winieries that are trying to please their customers needs.  From the vine, to the tank, to your table, SB592 will promote tourism and future growth for Arkansas Argiculture.

On Tuesday, March 13, House Bill 1651 received a Do Pass vote from the Senate Committee on State Agencies and Governmental Affairs and will go to a vote in the Senate.

House Bill 1651 will allow wineries in-state and out-of-state producing 250,000 gallons a year or less to sell their wines in Arkansas grocery and convenience stores.

HB 1651 will also provide more competition among wineries and brings Arkansas Wine Shipping into compliance with the U.S. Supreme Court’s decision in Granholm v. Heald.

Click here to Read House Bill 1651

Two major events happened this week.

SB 304 (see below) was temporarily withdrawn by Senator T. Smith (Hot Springs) after a presentation in the Senate Committee on State Agencies and Governmental Affairs Hearing on Tuesday, Feb. 27.

HB1651 was Returned by the Committee with a Do Pass recommendation.

Arkansas has a rich heritage of wine making dating from the time of the earliest settlers. Through the present, there have been 150 wineries bonded in Arkansas by the federal government since the repeal of prohibition and more than 1,000 Arkansas permits issued for wine making. Many ethnic backgrounds have contributed to this history enriching it through their cultural expressions. People living in all areas of the state have made wines for personal enjoyment and profit. The Arkansas Historic Wine Museum brings this heritage to you. Through the museum’s work in sponsoring research and preserving artifacts, the stories of people’s past are made a part of the future.

- Robert G. Cowie, Cowie Wine Cellars

SB 304’s purpose is totally to protect the Arkansas liquor distributors’ 3-tier system at the expense of Arkansas wineries. There is no sense of equal treatment for wineries, no matter what angle it is viewed from. Almost all wineries in the rest of the United States are allowed to wholesale, retail, and ship from their manufacturing premises. SB 304 proposes to deny these privileges to Arkansas wineries, putting them at a significant disadvantage compared to wineries outside this state.

The Supreme Court ruling of Granholm vs Heald does not mandate a 3-tier system. Mandating a 3-tier system for alcoholic beverages has brought on unconstitutional barriers to free trade between states, against manufacturers, and against consumers. And through it all, liquor distributors profit.

Arkansas consumers under SB 304 will no longer be able to have wine shipped to them, nor will they be able to buy Arkansas wine at the winery without distributor profits added to the price.

– Michael Post, Mount Bethel Winery

Click here for a PDF summarizing Senate Bill 304. and its amendment, SB 304-S1

Click here to read a point-for-point opposition composed by representatives from Arkansas wineries.

Other documents pertinent to this bill:

• Federal Trade Commission Reports Supporting Direct Wine Shipments
• The Wine Dilemma as a result of Granholm v Heald
• FTC article: Proposed Florida Legislation to Allow Interstate Direct Shipping Would Benefit Consumers and Competition, Lead to More Variety and Lower Prices
• FTC article: Proposed Ohio Wine Legislation Would Enhance Consumer Welfare
• FTC article: New York Direct Shipment of Wine Bills Would Promote E-commerce and Consumer Welfare

Click here for a PDF summarizing House Bill 1651.

Click here for a PDF summarizing House Bill 1518.

Click here for a PDF summarizing House Bill 1500.