THE NATIONAL WINE POLICY BULLETIN MARCH 2014 There are a number of issues we are following on our member’s behalf, with talking points, as well as a round-up of state issues from around the country. FEDERAL TTB: The TTB issued a revised interim policy on gluten free labeling on fermented beverages to prevent misleading labels. According to new regulations, producers that use grains during their production process cannot label their beverage as gluten-free, though they can advertise their product as “treated to remove gluten” or other similarly worded phrases. Producers who use inherently free gluten products such as grapes can still use a gluten free label. CDC: The Centers for Disease Control is becoming more concerned with doctors not discussing drinking practices with patients. CDC Director Thomas Frieden states that it should be a part of a routine check-up. The Affordable Care Act of 2010 will require new insurance policies to include an alcohol screening with no patient co-pay. Farm Bill: USDA is planning a six month roll out of the 2014 Farm Bill. They have scheduled listening sessions in D.C. to update and answer questions from industry partners. WineAmerica will be attending the relevant session. They have announced that starting April 15th producers will be able to apply for Safety Net programs for 2011, 2012, and 2013. THE STATES NEW YORK (New York Wine & Grape Foundation) Damage Relief: U.S. Senator Charles Schumer, D-NY, calls on the USDA for immediate assistance to wineries in the Finger Lakes region. The icy polar vortex has wreaked untold damage on grape vines and buds, though Sen. Schumer says vineyard owners cannot afford to wait to find out. Estimates place losses as high as 50% on potential grape harvest. Sen. Schumer recommends vineyard owners to turn to the Tree Assistance Program, or TAP, as provisioned for by the recently passed Farm Bill to allocate relief funds. He also recommends a declaration of natural disaster so that the USDA can offer low-interest loans to offset bud damage. Anticompetitive Barriers: The at-rest provision remained out of the governors budget but there is still a strong distributor effort to get the legislation passed. NORTHEAST Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Vermont CONNECTICUT Taxes: Sen. Kevin Witcos, R-Canton is pushing forward a Finance Committee Bill that will provide for a 6-week pilot program for the exemption of sales tax on wine, beer, and liquor in grocery and package This document is intended for WineAmerica members and members of the State and Regional Associations Advisory Council. Please do not distribute without express permission. Questions, contact Tara Marie Good at [email protected]. stores from November 15, 2014 through December 31, 2014. Neighbor states of Rhode Island and Massachusetts repealed their own sales taxes on alcohol and Witcos hopes to make Connecticut competitive and cut liquor border bleeds by following suit. DELAWARE Direct Shipping: Delaware waits a decision on House Bill 60 first introduced by Rep. Deborah Hudson, R-Fairthorne in 2011, to permit shipping wine to Delaware consumers by licensed wineries. Delaware remains one of the nine states that prohibits direct-to-consumer shipping of wine. MARYLAND (Maryland Wineries Association) Winery Licensing: Senate Bill 287 backed by Sen Robert Zirkin sets regulations regarding kosher wineries’ permits, production, and shipping. The bill would go into effect July 1, 2014. It is pending action from the Senate Education Health and Environmental Affairs Committee. Labeling & Advertising: The Maryland Wineries Association, in association with the Wine Institute, has offered an amendment to SB778 which creates a labeling requirement for any food, alcohol, etc., that requires more than 1% genetically engineered ingredients. The amendment exempts wine from the labeling requirement. PENNSYLVANIA Privatization: Gov. Tim Corbett pushes lawmakers to come to a consensus about privatization. Although the issue has been a hot-button topic for some time now, it seems no conclusion will be made in the foreseeable future. Winery Licensing: The Pennsylvania Liquor Control Board announced a regulatory change that will allow a licensed limited winery to sell wine on their premises for less than what the same wine sells at a Fine Wine & Good Spirits store. They hope the change will stimulate the Pennsylvanian wine economy and offer consumers the best options. The PCLB believes that the previous restriction influenced which wines in-state wineries sold to them. The new regulation went into effect March 1st. Trade Practice: Marketing director Jim Short at the PCLB notified the board of his retirement. His name among others was listed in a 2012 confidential report as having improperly received gifts and favors from vendors. Short’s timely retirement comes before the announcement of an ethics violation report. RHODE ISLAND Direct Shipping: Pending HB 7400, sponsored by House Minority Leader Brian Newberry, creates a Wine Direct Shipper License for direct-to-consumer shipments of up to 24 cases of wine per year to residents 21 years and older. Current law limits wine shipments to in-person orders at wineries. The bill is scheduled for hearing by the House Committee on Corporations March 4, 2014, and would be effective immediately upon passage. Wineries could apply for licenses after paying a $100 registration fee. SOUTHEAST Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia FLORIDA Growlers: Sen. Jack Latvala - R continues to push Senate Bill 406 forward, which will increase the existing 32 oz growler regulation to 64 oz, the preferred container size. The bill would also authorize licensed tasting at breweries and remove the prohibition of beer samples at the site of certain vendors. The bill must go through Community Affairs before passing on to Appropriations. This document is intended for WineAmerica members and members of the State and Regional Associations Advisory Council. Please do not distribute without express permission. Questions, contact Tara Marie Good at [email protected]. TENNESSEE Retailer Licensing: Tennessee House of Representatives passed House Bill 610 sponsored by Rep. Jon Lundberg, which allows the sale of wine in grocery stores. The Senate’s version of the bill backed by Sen. Bill Ketron, R-Murfreesboro also passed through the Senate. The House Finance Subcommittee approved both House Bill 610 and back-up measure, House Bill 47 and was sent to the governor’s desk. Gov. Bill Haslam previously stated he would sign the bill into law. Tennessee constituents can expect to see the issue on their ballots this fall, and wine on their grocery shelves as soon as July 2016. In response to the bill, liquor stores are asking for a cap on the number of wine outlets that can be opened, as wine makes up 40% of liquor store sales. VIRGINIA (Virginia Wine Council) Winery Licensing: Senate Bill 51 to ease local restriction on agritourism events passed through both the Senate and House. In absence of negative impact on public health and safety, the bill would prevent local authorities from requiring a special-use permit for events and from stringently regulating noise control. It does not alter the provisions of § 15.2-2288.3 for licensed farm wineries. Winery Licensing: House Bill 282 introduced by Rep. David Albo passed through House and Senate, and was sent to the desk of Gov. McAuliffe. HB 282 allows contract winemaking facilities to sell the wine it produced even if terms of payment have not been fulfilled in accordance to the contract with the winery that supplied the agricultural products. Growlers: House Bill 882 sponsored by Rep. Carr allows wines to be sold in growlers or other federally approved reusable containers. The bill also accounts for the sale of ciders in all containers approved for wine. HB 882 passed through the House and Senate and waits for Gov. McAuliffe’s signature. Winery Licensing: Legislation backed by Sen. McWaters creates a new permit for the ABC that will allow sight-seeing carriers to collect the licensee’s tasting fees from tour participants, for the sole purpose of remitting the collected fees to the establishment conducting the tasting event. Senate Bill 178 waits the signature from Gov. McAuliffe. Winery Licensing: Senate Bill 430 introduced by Sen. John Watkins creates a new license for breweries that limits local regulation of limited brewery licensees, prohibits the imposition of minimum parking, road access, or road upgrade requirements on any licensed limited brewery. SB 430 is specifically for breweries located on a farm in the Commonwealth of Virginia, manufactures no more than 15,000 barrels of beer per calendar year, and uses the agricultural products grown on their farm in the manufacturing of their beer. The bill passed through the House and Senate and waits Gov. McAuliffe’s signature. WEST VIRGINIA Retailer Licensing: Senate Bill 580 sponsored by Sen. Bob Beach to allow for the sale of wine at NCAA Division I college sports stadiums failed to make it out of the Senate Finance Committee in time for the closing of the 2014 Regular Legislative Session. The bill, which was expected to go through with little to no objection, was not added to the Senate Finance agenda by Sen. Clarke Barnes, R-Randolph, for lack of exposure to the Senate. GREAT LAKES Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin This document is intended for WineAmerica members and members of the State and Regional Associations Advisory Council. Please do not distribute without express permission. Questions, contact Tara Marie Good at [email protected]. INDIANA Retailer Licensing: Senators James Merritt and Jean Leising co-authored Senate Bill 339 to repeal the existing prohibition on the sale of alcoholic beverages at the state fair which was put into effect in 1947.