Monday, March 13, 2006

MARYLAND WHOLESALERS: “LET’S NOT GIVE ADVANTAGES TO OUT-OF-STATE WINERIES.”

In answer to Comptroller William Donald Schaefer’s issued regulation requiring the use of wholesalers, Maryland wineries have pushed legislation to allow direct deliveries to retailers and restaurants. Two bills, one in the Senate and one in the House, would allow all small in-state and out-of-state wineries to sell directly to retailers and restaurants. Another proposal turns Schaefer’s rule into a law and would take effect June 1. Sen. Thomas Middleton’s bill would overturn Shaefer’s regulation and allow all wineries producing less than 40,000 gallons to self-distribute. According to the gazette.net, Middleton says his bill could lead to a “$5 million to $100 million industry in the next five years.” On the opposing side, Bruce Bereano, representative of the state’s wholesalers, argued in favor of SB 877 before the Senate Education, Health and Environmental Matters Committee, saying Middleton’s bill “might create an economic disadvantage.” Although there are no clear answers as of yet, the House Economics Matters Committee heard testimony on a House companion bill to Middleton’s proposal and a majority has given sponsorship.