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The Grapevine

March 6, 2009

COMPLIANCE UPDATES: MI, TX & TN

Michigan Changes Direct Shipping Law for Retailers

Legislators in the state of Michigan enacted a law on January 9, 2009 that prohibits most retailers from shipping wine directly to consumers within the state. As of March 31, 2009, in-state retailers cannot ship wine direct-to-consumer and out-of-state retailers cannot ship 3Tier to Michigan. New Vine will stop shipping 3Tier to Michigan as of March 13 to ensure all orders have been released by our retailer by March 31.

A winery that currently holds a direct shipping permit in Michigan may continue to use that permit to ship wine into the state. Any winery currently using 3Tier may still apply for direct shipping permits. Please note that wineries holding 17/20 licenses and importers are not eligible for a direct shipping permit.

Texas Changes Pricing for Permits

Recently, Texas amended their direct shipper permit license to be valid for two years instead of one year. The new two-year license requires those who will renew or apply for a direct shipping permit in 2009 to pay a fee of $470 and apply for a two-year bond.

The Texas Alcohol Beverage Commission will send letters informing wineries of the change during the renewal process.

Tennessee Bans Direct Wine Shipments

A recent Tennessee Attorney General Opinion ruled that consumers may not carry any amount of wine on their person into the state or have any amount of wine shipped to them. Therefore, all wineries are now prohibited from shipping any wine orders direct to consumers in Tennessee, including orders placed in person at the winery tasting room. Based on this opinion, New Vine will no longer offer direct shipping services to Tennessee.

There are several bills that have been introduced in the Tennessee legislature that may open up some form of regulated direct wine shipping in the future. IBG Fulfillment will inform its customers if any such option becomes available.