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 Wednesday, September 14, 2005
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EDITORIAL
Bill hurts wineries, helps wholesalers


After the U.S. Supreme Court struck down Michigan's law governing wine shipments, it seemed obvious that lawmakers would have to address the issue. The high court ruled it was unconstitutional for Michigan law to allow in-state wineries to ship their products to customers, while out-of-state wineries were prohibited from doing so.

It seemed like a clear choice: Either allow both in-state and out-of-state wineries to ship products, or ban both from directly shipping their products.

Some lawmakers cited the need to keep alcoholic beverages out of the hands of minors as one of their reasons for supporting a ban on all shipments, along with concerns about collecting taxes on shipments, etc. Those are legitimate issues that deserve open debate.

Just before Labor Day, the Michigan House passed by a vote of 84-22 legislation that would allow wineries both in Michigan and outside the state to ship about 500 cases of wine annually to Michigan residents. The bill also would require wineries to get a faxed copy of a customer's driver's license or other identification and to use a shipment service that would require a person at least 21 years of age to sign for the delivery. That all sounds reasonable enough.

But the bill also would ban retailers and restaurants from buying directly from Michigan wineries and instead require that they go through wholesalers.

We don't understand why this ever became part of the shipment issue. As the Michigan Restaurant Association points out, direct sales to restaurants and retailers have been allowed for 35 years with no controversy.

"Where was the problem? There was no problem," Andy Deloney, public affairs director of the Michigan Restaurant Association, told the Associated Press.

We agree.

Michigan wineries also are not happy about the bill, since the state's wineries sell about three cases of wine directly to restaurants or retailers for every case sold to an individual consumer, according to a spokesman for a group of 42 Michigan wineries. The bill now is in the Senate.

A spokesman for the Michigan Beer and Wine Wholesalers Association told the Associated Press that the proposed change in law would only mean a "miniscule" increase in business for association members.

Rep. Chris Ward, R-Brighton, said he proposed the change because in-state wineries currently can sell to restaurants and retailers, while out-of-state wineries cannot. Such a discrepancy could lead to another court battle, he said.

If that is the case, why not allow out-of-state wineries to sell to restaurants and retailers, instead of hurting in-state wineries? It would seem that if Michigan is serious about improving its business climate, it would want to help, not hinder, Michigan's wine makers.

Originally published September 14, 2005

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