Tag Archives: Indiana legislature

Email legislators to stop terrible bill

02 Sunday Apr 2017

Posted by in Indiana, Uncategorized, Wine Education/News/Updates

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What is it with many state legislatures passing bills best described as a solution looking for a problem?

The Indiana legislature has two such bills under consideration right now. Wine lovers and those who believe in free enterprise need to react now. It’s just not looking for a problem but these two bills will cause substantial harm to several successful Indiana businesses.

So, this requires a short explanation. Senate Bill 358 and House Bill 1496 would essentially require specialty or gourmet food and wine stores to have 51 percent of their annual sales attributed to food. That change in the law would cause several stores to close almost immediately.

Grapevine Cottage of Zionsville, Tasteful Times in Fishers, and Broad Ripple’s Cork & Cracker would face immediate closure or bankruptcy. The Senate reported the bill out of committee with a House committee scheduled to take it up Monday morning.

The chairman of the Public Policy Committee due to hear the bill is Rep. Ben Smaltz (h52@iga.in.gov). Write him immediately to stop this bill that’s bad for small business. It’s also a good idea to write your own local representative. Then, copy your email to Senate President Pro Tem David Long at senator.long@iga.in.gov  and House Speaker Brian Bosma at h88@iga.in.gov

A brief bit of back ground is essential. The discussion started when state officials learned that Ricker’s gas stations found a legal way around the law to open a small “restaurant” in their stores in order to sell cold beer.

Pause for a second to understand and recall Indiana has some of the most restrictive laws regarding alcohol sales in the nation. Our legislators were upset someone found their way around the law. They were outraged with the State Alcoholic Beverage Commission for issuing the licenses. Interestingly, Gov. Eric Holcomb defended the agency for following the letter of the law.

And now the real crux of the issue for those who don’t keep up on such things – it’s about lobbying and candidate cash. The package liquor lobby and wine/beer distribution lobby own our state legislators. They get their way on every major issue. The lobby restricting alcohol laws has prevented Sunday sales, direct wine shipment, and continue to protect decades old ‘blue laws.”

Any reasonable Hoosier must guess reasonable heads will prevail and legislators will fix this terrible bill before legislating wrath against Rickers.

It’s all so silly but all paid for by those protecting their greed – legislators and the anti-free market distributors and package liquor store owners.

Write your reps today – not tomorrow. If you don’t give a hoot about beer or wine sales that’s fine. Write your representatives to protect these good small businesses.

I always through the GOP stood for the small businessman? Perhaps not when a big business man is filling their pockets. 

 

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Legislature Right – For a Change

22 Friday May 2015

Posted by in Indiana, Midwestern States, Newspaper Column 2015

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Indiana’s legislature showed a small bit of sanity in getting a shipping law passed for Hoosier Wineries before closing the most recent session. Governor Pence signed the bill into law.

Phil Boots

Phil Boots

Grape Sense LogoSen. Phil Boots, R-Crawfordsville, gudied the legislation removing the face-­to-­face requirement for Indiana wineries to ship wine to their customers. At one point, the licensing fee went from $100 annually to $500. That was plain and simple another case of the legislators bowing to the powerful liquor lobby, funded largely by alcohol distributors.

He urged supporters to keep the foot on the gas and in the end the fee structure was set up on a graduating scale depending on production and alcohol shipped. A fair, if not arguably unnecessary, solution.

Kim Doty, standing center, with husband John and family.

Kim Doty, standing center, with husband John and family.

Indiana wineries could not be happier.

“When the law requiring an initial face to face transaction became effective, it literally destroyed our shipments to wine customers,” said Kim Doty, owner of French Lick Winery.

“We lost 95 percent of our wine shipping sales. Our wine sold and shipped to customers in 2004 was about 10 percent of our total sales. Today with the face to face requirement, our shipping sales are less than one tenth of 1 percent of our total sales. This requirement has also had a negative impact on the growth of our wine club with 99 percent of our wine club sales are shipped directly to the home.”

Again, that face­-to-­face requirement was added to legislation in 2008 as a token to the alcohol lobby but crippling, in particular, to small wineries.

Wineries like French Lick were forced to play along but at a steep price. “We have accumulated over 5400 completed verification forms to date. We would have sold and shipped at least twice that if not for the requirement.”

The new law requires age verification but all shipping laws generally do. Wineries can meet the requirement by using an age verification delivery service like FedEx or UPS.

“We are thrilled with having the requirement rescinded,” Doty said. “Age verification will still be performed by the delivery company and we will pay additional fees for this service. We are confident that our wine shipments are properly handled in accordance with Indiana’s age requirement for liquor.”

Jim Butler

Jim Butler

Jim Butler, Butler Vineyards near Bloomington, has long been one of the industries leading spokespersons and advocate for sanity in wine shipping laws and more.

“We are basically back to where we were 9 or 10 years ago,” Butler said. “With the face to face requirement we l lost 90 percent of our shipping business. Perhaps now we can build it back. This is a nice step forward. It is always a battle of the titans at the statehouse about alcohol issues, big money. big players. We are just little guys. It is one small step toward sanity.”

Sanity? That seldom happens with the legislature and liquor laws. Just look at what happened this year with Sunday sales. A simple law was mangled with requirements that would have retailers build walls in existing stores to sell alcohol on Sundays.

Fortunately, the legislature got it right for Indiana wineries, big and small, in 2015.

Rose’, Pinot, & Idiot Legislature

27 Friday Feb 2015

Posted by in Food & Travel, Newspaper Column 2015, Oregon

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There are numerous websites and publications detailing everything happening in the world of wine. Sometimes those issues are worth sharing.

Grape Sense LogoIndiana Senate Bill 113 – The Indiana Direct Shipping bill remains in House committee. The bill would remove the ridiculous 2006 restriction on Indiana wineries requiring a face-to-face purchase before wine can be shipped in state.

CrazyThe bill is a double-edged sword opening up an important stream of revenue for small wineries but increasing the licensing fee from $100 to $500. Contact your local legislator asking the fee be restored to $100 as Sen. Phil Boots intended.

There’s a pattern here if you pay attention. The big alcohol related legislation of the session is Sunday sales but the same thing has happened. The legislation actually failed this week because the liquor lobby (read wholesalers/some retailers) objected. The bill was weighed down with the unruly burden of requiring supermarkets and drug stores to build walls. No one could make this stuff up.

RoseloresRose, How We Love Thee. Dry Rose, and particularly dry French Rose, is one of the biggest success stories of the last decade. For too long pink meant sweet but now pink, or a light salmon color, means great dry French wine.

For the 11th straight year exports to the U.S. of Provence Rose’ wine increased by double digits. In 2014, Rose exports went up 29 percent on volume.

Oregon Stature Grows. The last two years have established the importance of Oregon Pinot Noir above and beyond some of its founders wildest expectations. When the ‘big boys’ start buying up properties it’s easy to label Oregon Pinot a worldwide success story.

Domaine Drouhin started the foreign investment in the 1980s but recently it has exploded. Drouhin bought nearly 300 more acres of vineyard about a year ago. Louis Jadot more recently acquired a 32-acre vineyard and hopes to buy more.

Jackson Family Wines, probably better known to the average consumer as Kendall-Jackson, has purchased nearly 500 acres of Oregon vineyard in two separate acquisitions. They are operating a winery near Yamhill under the name Gran Moraine.

Joseph Wagner, think Caymus, has purchased the Elouan Brand while Bill Foley picked off 35,000 case boutique brand Four Graces.

The interest shows Oregon is making great wine and has a great future. The purists must continue to hope some of these big boys don’t destroy the boutique feel of the Willamette Valley.

Alexana winemaker Bryan Weil sharing barrel tastes.

Alexana winemaker Bryan Weil sharing barrel tastes.

Join Me on Oregon Tour. I’ll be hosting my second trip to Oregon’s Willamette Valley in June. It’s a five-night, four day boutique visit. We taste with winemakers and winery owners, stay in a fabulous bed and breakfast and eat in a couple of Oregon’s best restaurants. The trip is all inclusive one you arrive until you leave.

You can find full details of the wine trip on the Grape Sense blog (www.howardhewitt.net). Click the link at the top “Drink & Eat Oregon” for full details or write me at the address below.

Legislature’s Smoke & Mirrors

06 Friday Feb 2015

Posted by in Indiana, Midwestern States, Newspaper Column 2015

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There is a bill moving through the Indiana Legislature which, on the surface, appears to help Indiana wineries. The Senate approved a measure removing restrictions on in-state shipping by eliminating the face-to-face requirement established in 2006.

Grape Sense LogoBut like the old adage ‘no good deed shall go unpunished’ the legislature resorted to its usual ways of big bucks win and stuck it to the state’s smaller wineries. Fortunately, it’s not too late if wine enthusiasts will reach out to their legislators.

Senate Bill 113, sponsored by Phil Boots, Crawfordsville, removed the silly face-to-face requirement. Boots left the licensing fee at a reasonable $100. But in the Public Policy Committee members boosted the fee to $500.

“So for an Indiana winery, we already have to pay a $500 annual Farm Winery Permit, and now in order to ship wine we’ll have to pay for another $500 license,” said Jim Pfeiffer, owner/winemaker at Turtle Run Winery, Corydon.

PfeifferLow

Pfeiffer

“The idea behind the $500 license is to discourage direct shipping, especially from wineries outside the state.  A few other states have similar laws, such as Missouri and Michigan, two states in which we don’t ship wine due to the cost of procuring their licenses.”

Frankly, I disagree with my friend Jim. The wholesaler lobbying effort could give a hoot about where wine comes from as long as it passes through their hands for their cut. When I asked Boots if the fee was increased simply to appease the wholesaler’s lobby, he said, “Sure.”

And that lobby makes political contributions, albeit small ones in many cases, to virtually every legislator in the statehouse.

The antiquated three-tier liquor system does nothing but cost Indiana wineries profit. If small Indiana wineries go through a wholesaler, they must significantly reduce the cost of the product so the wholesaler, then retailer, get their cut. If the small winery can ship to your door, they make all the profit. And most wholesalers have little to no interest in carrying Indiana product any way.

If passed, with or without the higher fee, some legislators will brazenly thump their chest for helping out small Indiana business. That is a crock of you know what and Boots agrees.

Boots

Boots

“There have been a lot of people say (… the legislature has given then taken away,)” the Crawfordsville legislator said. “That’s the highest license fee in the nation. It will not help the real small guys. They can’t afford that.”

Boots is encouraging supporters to contact House members and get the fee restored to $100. I’ve visited nearly half of Indiana’s 70-something wineries and have learned a few things about the economics. There are probably a very small handful of Indiana wineries which can afford another $500 license.

The committee moved the bill with a 9-0 vote then the full Senate passed it with a 40-10 roll call. It’s now in the House Public Policy Committee.

You can help by writing members of the House Public Policy committee and your own representative. Thomas Dermody is chair. Timothy Wesco is vice chair. Committee members are: Edward Clere, Sean Eberhart, Todd Huston, Matthew Leman, Jim Lucas, Ben Smaltz, Matthew Ubelhor, Philip GiaQuinta, Terri Jo Austin, Charlie Brown, and Vanessa Summers. You can easily find their email and phone numbers on http://www.iga.in.gov website.

Write these Reps, write your Rep. ask they set the fee in Senate Bill 113 at the original $100 and help all 70-plus Indiana wineries.

Legislature Could Boost Wine Sales

30 Friday Jan 2015

Posted by in Indiana, Newspaper Column 2015

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UPDATE: The bill passed the Indiana Senate this week, 40-10, and now goes to the House. I’ll have an update this coming week on the bill’s status. I’ve also learned of some controversy of an increase in the licensing fee – $100 to $500 for Indiana wineries if bill passes.

Wine enthusiasts have read about the great wines of Huber, Butler, Oliver, and Turtle Run wineries in Southern Indiana. But what if you’re reading Grape Sense in Marion or Peru Indiana? You just can’t pick up the phone and order some wine to try these great bottles. It’s prohibited by state law. And let’s admit, it’s a long drive.

Grape Sense LogoThere is seldom good news in Indiana on direct shipping laws but there is hope in the ongoing session of the Indiana legislature. Current law, in place since 2006, requires consumers to visit on site and make a face-to-face purchase before they can order online. It hurt Indiana wineries significantly when enacted and winery owners are excited it could disappear.

Such statutes used to be fairly common across the country but are now disappearing. Indiana Senate Bill 113, introduced by Crawfordsville Senator Phil Boots, would require customers to provide name, address, phone number and proof of age but remove the onsite restriction.

The good news is the bill passed out of the Senate Public Policy Committee, 9-0. But Jim Butler, who often is involved on behalf of Indiana wineries on governance matters, knows there is still a long way to go.

Jim Butler

Jim Butler

“It’s a great start, but the session is never over until the last hour of the last day, and as you know adult beverage legislation is always a labyrinth,” said Butler, who owns a winery near Bloomington. “Back in 2006 we lost the shipping rights that we had had for over 30 years and as a result we lost about 90 percent of our shipping business and have never really regained it.  This bill will be a great help to our customers as well as us as a business.”

So any Hoosier who supports free commerce should support the bill. You need to encourage those ‘pro-business legislators’ to support Senate Bill 113.

Besides killing profit, the 2006 change created more bureaucracy for Indiana wineries, which already are burdened with regulations and mounds of paper work.

Huber, Ted

Ted Huber

Ted Huber, one of the state’s biggest producers and most-visited wineries, said the current system has been a mess. “Obviously, this type of tracking is cumbersome and complicated,” he said. “It is hard for Huber’s to track Indiana customers among the other visitors that we have traveling through from other states.

“This process becomes frustrating to our Indiana guests as they often leave our tasting room and forget to sign the affidavit.” Huber’s welcomes more than 500,000 annually.

The usual suspects have lined up against the change with tired arguments which have never been proven to have merit. The Indiana Beverage Alliance represents retailers and wholesalers and doesn’t want to lose any business. While that’s understandable, don’t we all support a free marketplace?

“There are lots of Pinot Noirs on the shelf at Indiana retailers,” said Marc Carmichael on behalf of the Alliance. Sure there are lots of choices on those shelves. But Indiana wines take up a tiny portion of the inventory of most retail outlets. If you want to drink Indiana wine, shouldn’t you be able to buy it conveniently?

You can bet the underage-drinking crowd will chime in with their hysterics. Such organizations do an important and great job educating young people about alcohol. That argument gets most of us who support direct shipping de-regulation the most riled up. There is no documented evidence this has ever happened – any where!

Today’s column is a call to action, winos! Contact your local legislator and ask them to support Senate Bill 113 and to change this terrible anti-business law.