Wednesday, June 06, 2007

ILLINOIS HOUSE PASSES DIRECT SHIPPING BILL.

The Illinois House passed HB 429 yesterday with 92 legislators voting “yes,” 6 voting “no” and 18 “not voting." The bill will now have to pass the Senate and be signed by the governor before it becomes a law.

Under HB 429, wineries are permitted to ship up to 12 cases to an individual each year after obtaining a winery shipper's license. Winery orders may be placed via internet and/or phone. In addition, it allows small wineries both in-state and out-of-state that produces less than 25,000 gallons of wine annually to sell up to 5,000 gallons a year to in-state retailers. In-state retailers also retain the ability to ship directly to consumers, but the proposal bars out-of-state retailers from doing the same thing.

Proponents of the bill say it represents the interests of all parties involved, including consumers. Those against HB 429, namely the Specialty Wine Retailers Association (SWRA), call it anti-competitive. They argue that by barring out-of-state retailers from shipping directly to consumers, HB 429 is unconstitutional.

SWRA director, Tom Wark, said the following in a press release issued yesterday:

“SWRA has said previously and continues to warn that HB 429 is a blatantly unconstitutional law that is very likely to be challenged in court just as similar laws have been challenged in Texas and California.”