Monday, October 29, 2007

WISCONSIN GOV. GETS VETOE HAPPY

In one swoop, Wisconsin Gov. Jim Doyle vetoed almost all alcohol related provisions in the new state budget Friday (Oct. 26). One provision dealt with alcohol distribution while the other proposal would have allowed retailers to offer liquor samples.

Gov. Doyle vetoed legislation last Friday (Oct. 26) that would have banned in-state and out-of-state wineries from selling their products directly to retailers. By vetoing the legislation, Gov. Doyle has prolonged the amount of time that Wisconsin is not compliant with Granholm.

As WSD reported on Friday, Gov. Doyle was expected to pass legislation that would allow all wineries that obtained an out-of-state permit to ship up to 108 liters annually to consumers. The law would have banned all wineries from shipping directly to retailers, which in-state wineries are currently allowed to do. Therein lies the problem.

WISCONSIN'S CURRENT LAW. As a “reciprocal” state, only wineries from other reciprocal states can ship directly to Wisconsin residents. Currently, Wisconsin only has a reciprocal arrangement with California, which allows California vintners to ship directly to Wisconsin consumers but prevents wineries in other states from doing the same thing. In-state wineries are allowed to sell directly to retailers but NOT consumers.

What’s his reasoning behind the veto? Gov. Doyle wrote the following:

“While the changes to the distribution system included in these sections may help address some concerns with sales of alcohol to minors, they also may have stifling economic effects on the small wineries around the state, forcing them out of business…While I am vetoing these provisions, I support the concept of a three-tier distribution system. The language included in the bill, however, does not adequately address the needs of small entrepreneurial wineries…”

Doyle said his administration will work with the Legislature to adopt legislation that complies with the Supreme Court ruling. It sounds like in-state wineries are worried about losing direct-to-retail shipping righs and competing with out-of-state wineries in general.

LIQUOR TASTINGS BANNED. Another part of the budget that didn’t make it was a proposal that would have allowed up to 1.5 ounces of liquor to be handed out as a free sample.

"To me, it's absurd that you walk into a grocery store and start taking shots," Doyle said.

However, beer and wine tastings are already permitted in the state.

DISCUS called the veto “a blow to equal treatment in the marketplace.”

“Adult consumers in a modern economy should be given a reasonable and responsible opportunity to sample the growing number of premium distilled spirits products,”
said the group in a statement. “Since 1999, 23 states have passed or expanded consumer spirits tastings laws and Mothers Against Drunk Driving did not oppose any of these bills because the industry insisted on responsible guidelines.”