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Penn. Reconsiders Direct-to-Consumer Wine Shipments
August 18, 2008

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News Summary

Three years after a federal judge ruled unconstitutional a Pennsylvania ban on shipments of wine from out of state to local consumers, state legislators are considering a bill that would allow only small wineries to conduct direct-to-consumer shipments, the Associated Press reported Aug. 17.

The bill, sponsored by State Rep. Paul Costa of Allegheny, would allow direct shipments only from wineries that produce up to 80,000 gallons a year. Costa would like the shipments to apply only to in-state companies.

Under the legislation, other wineries would have to ship consumer purchases to the state Liquor Control Board before the product could go to the buyer. Supporters of a more flexible policy than this say many other states, including those with state-run liquor sales, have managed to create sensible direct-shipment policies that guard against abuses.

In New Hampshire, one of 12 states with state-run liquor sales that also allow direct shipments, wine producers must use licensed carriers, must report shipments for taxation purposes, and are required to mark the packaging as containing alcohol and receive an adult signature for the product to complete delivery. "We have not found these … issues to be of significant negative consequence," said Mark Bodi, chairman of the New Hampshire Liquor Commission.

Those who want to maintain strict controls on out-of-state shipments in Pennsylvania believe a less restrictive policy would cause a revenue drain in the state and also would make it easier for minors to obtain alcohol.

Although the judicial decision three years ago blocked the state from enforcing its prior ban, some wineries have remained reluctant to ship their products to Pennsylvania.

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