Direct wine shipping bill wins final vote in Arizona Legislature

Mar 25, 2016

(AZCentral) - A bill that would allow consumers to order wines by phone or online and have them shipped directly to their homes or business passed the Arizona Legislature on Thursday.

The bill next heads to Gov. Doug Ducey. The Republican governor, who has said he wants to do away with regulations on businesses, will have five days to sign it or veto it once it is transmitted to his office. If Ducey takes no action, the bill becomes law without his signature.

Ducey's office has made a practice of not commenting on pending legislation. But Ducey, during the 2014 campaign, told TheRepublic and azcentral.com that he was fine with the three-tier system of selling alcohol that this bill would upend.

The bill, Senate Bill 1381, had been pushed by the California-based industry group Free the Grapes.

It would delete an entire section of liquor laws that deal with wineries' ability to ship to consumers and would simplify the rules to essentially one requirement: Wineries would need a direct-shipping license from Arizona's liquor department. Wineries then could ship bottles directly to Arizona consumers.

Current law allows only small wineries to ship directly to consumers. The law defines small wineries as those making less than 20,000 gallons a year.

Under current law, wineries larger than those can ship to a consumer only if  the wine first passes through a distributor and a retailer. Some out-of-state wineries will go through these steps to ship wine to customers in Arizona. Others simply refuse to fill such orders.

The Arizona Wine Growers Association testified in favor of the bill. Two Arizona wineries, Page Springs Cellars and  Arizona Stronghold, are close to exceeding the 20,000 gallon production cap. Others are close.

This bill would allow them to expand while still retaining the ability to ship directly to customers. Wineries, under the bill, would have to verify that purchasers are of legal age and that wine is paid for before it is shipped.

The measure had been sailing through the Legislature, but it stalled last week when it was held from a final House vote because a member wanted to amend it.


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