Illinois: WINE SHIPPING BILL SIGNED BY THE GOVERNOR
New Law Brings Illinois in Compliance With U.S. Supreme Court Decision While Maintaining the Direct Sale of Wine to Consumers
SPRINGFIELD - (October 3, 2007) Wineries in Illinois and throughout the country will be able to sell their products to consumers more easily under legislation signed by Gov. Rod Blagojevich today.
The wine shipping law upholds Illinois' ability to regulate shipments of wine from both in-state and out-of-state wineries, and preserves the state's control of alcohol entering the state.
Under HB 429, in and out of state wineries may now ship up to 12 cases of wine per year directly to a consumer. Wineries must obtain a winery shipper's permit from the Illinois Liquor Control Commission, which enables the Commission to more easily collect the appropriate taxes. The law also includes safeguards to prevent shipments to underage individuals and gives the Liquor Control Commission the power to conduct Internet stings and revoke the license of violators.
HB 429 permits wineries that produce less than 25,000 gallons of wine per year to sell up to 5,000 cases annually directly to retailers. HB 429 is being hailed as a law that is good for consumers, wineries and Illinois businesses.
"The intent of this provision is to permit small wineries to sell their wines directly to retailers," Illinois Grape Growers and Vintners Association President Paul Renzaglia says. "By signing HB 429, the governor has given our young industry the ability to grow and prosper."
HB 429, which was overwhelmingly approved by the Illinois General Assembly earlier this year, goes into effect June 1, 2008. The newly signed law brings Illinois into compliance with a 2005 Supreme Court decision, Granholm v. Heald, which provides that no state may "ban or severely limit the direct shipment of out-of-state wine while simultaneously authorizing direct shipments by in-state producers." HB 429 complies with Granholm v. Heald by treating in-state and out-of-state wine producers equally and evenhandedly.
"This legislation reaches our objective of bringing Illinois into compliance with the Supreme Court's Granholm decision," Jerry Rosen, executive director of the Beverage Retailers Alliance of Illinois says. "I would like to commend everyone for their time and efforts in accomplishing this goal."
"Illinois wineries produce high quality products that can compete with the wines from other states," said Paul Jenkins, Executive Director of the Wine and Spirits Distributors of Illinois. "We are proud to work with Illinois wineries to help market and distribute their products."
HB 429 is compromise legislation supported by a coalition representing Illinois' alcoholic beverage industry, including the Illinois Grape Growers and Vintners Association (IGGVA), Associated Beer Distributors of Illinois (ABDI), Wine Institute, Wine and Spirit Distributors of Illinois (WSDI), and Beverage Retailers Alliance of Illinois (BRAI). The industry recognized the need to comply with the Granholm v. Heald decision while maintaining Illinois' ability to regulate and control the importation of alcoholic beverages into the State.
"Today's bill signing caps years of work and great compromise between many stakeholders," Bill Olson, president of the Associated Beer Distributors of Illinois, says. "By enacting HB 429, the governor has ensured a safe and competitive marketplace for consumers, wineries and Illinois retailers."
The Illinois House approved HB 429 in June with 92 voting yes, 6 voting no and 2 voting present. The Illinois State Senate acted two months later, approving the measure with 49 voting yes, 5 voting no and 2 voting present.