Armes Plans Wine Industry Legislation In 2008
REVISED 10/25 ~ Restrictions that prohibit state wine producers from shipping their product directly to customers without going through a wholesaler could kill the state's burgeoning wine industry, experts told members of the House Agriculture and Commerce Subcommittee during a recent interim study at the Winery of the Wichitas in Medicine Park.
State Rep. Don Armes requested the interim study so lawmakers could get an up-close look at the current shape of the state's wine industry and introduce them to the issues that producers face in getting their products into the marketplace.
Several viticulturists and members of the Oklahoma Grape Growers and Wine Makers Association told the committee that current restrictions on shipping are the biggest issue holding the state back from becoming a viable producer and supplier of quality wines for the rest of the nation and world.
"I'm not even a wine guy, but I recognize the impact that a sustainable wine industry would have on our state economy and our agriculture industry," said Armes, R-Faxon. "It would be a shame to lose such a great opportunity to make our state a factor in the wine industry and lose all the economic benefits that go with that before the industry even gets off the ground. The state has the perfect combination of soil and climate to cultivate the superior vineyards that a good wine requires. Unfortunately, these wineries can't get their products to the marketplace and develop their brand, so it doesn't matter how good the product is because nobody has access to it."
Armes said he intends to introduce legislation during the upcoming legislative session that would amend state law to allow wineries to ship up to 10,000 gallons of wine either in or out-of-state per year without going through a wholesale distributor.
Currently, Oklahoma wineries may sell wine on site and at festivals, but are prohibited from selling or shipping directly to Oklahoma restaurants and retail liquor stores. State Rep. Don Armes said that after 7 years of being allowed to ship directly to retail stores and restaurants, wineries lost the privilege on July 1, 2007. A 2000 state Constitutional amendment that allowed such direct shipments was declared unconstitutional in June by a federal judge in Oklahoma City, who ruled that, in accordance with Granholm v. Heald (a May 2005 United States Supreme Court decision finding a similar Michigan law unconstitutional under the dormant commerce clause of the United States Constitution), Oklahoma's direct shipment law is unconstitutional.
Armes said most of the state's wineries produce around 1,000 to 2,000 gallons each year, but some are close to producing 10,000 gallons a year and at least one produces approximately 15,000 per year. "Our smaller wineries basically need help to get off the ground and need an avenue to get their products to the consumers," said Armes. "Almost all of the state wineries are amenable to a 10,000 gallon annual limit, with the exception of a few that produce more than that. But even a 10,000 limit would allow those larger producers to save money by cutting out the middle man up to that limit. In addition, we think the wholesalers would be open to such a limit as well."Armes said wineries are a major source of tourism in states like California, where many allow tourists to sample flavors, stay overnight and work in the vineyard.
Oklahoma has 11 vineyards and more than 35 wineries, according to the Oklahoma Grape Growers and Wine Makers Association Web site. In May 2005, the U.S. Supreme Court ruled that bans in New York and Michigan on direct-to-consumer shipments from outside those states were unconstitutional. Following that ruling, most states with similar bans have abolished those laws and now allow wineries to ship their products directly to customers. However, that ruling was narrowly tailored to out-of-state bans on direct shipping to in-state customers. Many states, including Oklahoma, currently have bans that prohibit shipping products from within the state to other states or to other locations within the state without going through a wholesaler.
State Rep. Don Armes requested the interim study so lawmakers could get an up-close look at the current shape of the state's wine industry and introduce them to the issues that producers face in getting their products into the marketplace.
Several viticulturists and members of the Oklahoma Grape Growers and Wine Makers Association told the committee that current restrictions on shipping are the biggest issue holding the state back from becoming a viable producer and supplier of quality wines for the rest of the nation and world.
"I'm not even a wine guy, but I recognize the impact that a sustainable wine industry would have on our state economy and our agriculture industry," said Armes, R-Faxon. "It would be a shame to lose such a great opportunity to make our state a factor in the wine industry and lose all the economic benefits that go with that before the industry even gets off the ground. The state has the perfect combination of soil and climate to cultivate the superior vineyards that a good wine requires. Unfortunately, these wineries can't get their products to the marketplace and develop their brand, so it doesn't matter how good the product is because nobody has access to it."
Armes said he intends to introduce legislation during the upcoming legislative session that would amend state law to allow wineries to ship up to 10,000 gallons of wine either in or out-of-state per year without going through a wholesale distributor.
Currently, Oklahoma wineries may sell wine on site and at festivals, but are prohibited from selling or shipping directly to Oklahoma restaurants and retail liquor stores. State Rep. Don Armes said that after 7 years of being allowed to ship directly to retail stores and restaurants, wineries lost the privilege on July 1, 2007. A 2000 state Constitutional amendment that allowed such direct shipments was declared unconstitutional in June by a federal judge in Oklahoma City, who ruled that, in accordance with Granholm v. Heald (a May 2005 United States Supreme Court decision finding a similar Michigan law unconstitutional under the dormant commerce clause of the United States Constitution), Oklahoma's direct shipment law is unconstitutional.
Armes said most of the state's wineries produce around 1,000 to 2,000 gallons each year, but some are close to producing 10,000 gallons a year and at least one produces approximately 15,000 per year. "Our smaller wineries basically need help to get off the ground and need an avenue to get their products to the consumers," said Armes. "Almost all of the state wineries are amenable to a 10,000 gallon annual limit, with the exception of a few that produce more than that. But even a 10,000 limit would allow those larger producers to save money by cutting out the middle man up to that limit. In addition, we think the wholesalers would be open to such a limit as well."Armes said wineries are a major source of tourism in states like California, where many allow tourists to sample flavors, stay overnight and work in the vineyard.
Oklahoma has 11 vineyards and more than 35 wineries, according to the Oklahoma Grape Growers and Wine Makers Association Web site. In May 2005, the U.S. Supreme Court ruled that bans in New York and Michigan on direct-to-consumer shipments from outside those states were unconstitutional. Following that ruling, most states with similar bans have abolished those laws and now allow wineries to ship their products directly to customers. However, that ruling was narrowly tailored to out-of-state bans on direct shipping to in-state customers. Many states, including Oklahoma, currently have bans that prohibit shipping products from within the state to other states or to other locations within the state without going through a wholesaler.
Labels: Don Armes, Wine Industry
posted by Mike McCarville @ 12:33 PM
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