2005 House Bill 4959 / Public Act 269

Ban direct wine shipment to consumers

Introduced in the House

June 16, 2005

Introduced by Rep. Chris Ward (R-66)

To prohibit direct shipments of wine for personal consumption from a winery to a consumer in Michigan. The U.S. Supreme Court recently ruled that Michigan’s law banning such shipments violates the Constitution’s commerce clause because it discriminates against out-of-state sellers. This bill applies the ban equally to all wineries.

Referred to the Committee on Regulatory Reform

June 28, 2005

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Aug. 31, 2005

Substitute offered by Reps. Dianne Byrum (D-67) and Chris Ward (R-66)

To replace the previous version of the bill with one that limits, taxes and regulates direct wine shipments, but does not prohibit them.

The substitute passed by voice vote

Amendment offered by Rep. John Proos (R-79)

To allow wine makers to annually ship up to 5,000 cases of of wine directly to Michigan retailers and restaurants, without first having to pass the product through one of the approximately 75 licensed Michigan wholesalers. Under current law Michigan wineries may bypass the wholesalers in such sales, but this would be prohibited by the bill.

The amendment failed by voice vote

Passed in the House 84 to 22 (details)

To limit direct shipments of wine from wineries to Michigan citizens for personal consumption. Subject to various conditions and regulations, a winery that pays an annual license fee to be established later by the Liquor Control Commission could annually ship not more than 500 cases to all Michigan consumers. Also, to prohibit Michigan wineries from selling directly to retailers and restaurants, which is permitted under current law. The bill contains proof-of-age regulations on Internet orders and shipment receipts.

Received in the Senate

Sept. 6, 2005

Referred to the Committee on Government Operations and Reform

Nov. 10, 2005

Referred to the Committee on Economic Development, Small Business, and Regulatory Reform

Dec. 1, 2005

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that only creates a create a "Direct (Wine) Shipper Enforcement Revolving Fund." The final compromise on this issue is contained in Senate Bill 625, and allows wineries to ship up to 1,500 cases to all Michigan consumers, but does not to prohibit Michigan wineries from selling directly to retailers and restaurants.

The substitute passed by voice vote

Passed in the Senate 34 to 0 (details)

To create a "Direct (Wine) Shipper Enforcement Revolving Fund," which would use wine shippers license fees authorized by Senate Bill 625 to enforce the restrictions that bill places on direct wine shipments to Michigan consumers.

Received in the House

Dec. 1, 2005

Dec. 6, 2005

Amendment offered by Rep. Tonya Schuitmaker (R-80)

To allow wine makers to continue to act as package beer and wine retail stores.

The amendment failed by voice vote

Passed in the House 103 to 1 (details)

To create a "Direct (Wine) Shipper Enforcement Revolving Fund," which would use wine shippers license fees authorized by Senate Bill 625 to enforce the restrictions that bill places on direct wine shipments to Michigan consumers.

Signed by Gov. Jennifer Granholm

Dec. 15, 2005