Family Winemakers Toasts Enactment of California Wine Permit Bill.

SACRAMENTO, Calif. -- Governor Arnold Schwarzenegger's signing of SB 118 (Chesbro) today was toasted by Family Winemakers of California. The bill, sponsored by Family Winemakers in the wake of this year's Supreme Court decision that requires a level playing field for wine shipments between states, creates a permit system in California. On January 1, 2006, any licensed winery in the United States will be able to apply for a permit to ship to California adult residents.

"Our association of small wineries in California has worked hard and dug deep over the past five years to create more direct-to-consumer wine sales. In California, SB 118 represents the next step suggested in Justice Kennedy's majority opinion, that reciprocity laws for wine producers are barriers to interstate commerce," said Jim Richards, FWC chair and co-owner of Paloma Vineyard in St. Helena.

Family Winemakers has championed expansion of direct-to-consumer wine sales by wineries as a way to broaden consumer choice and help small producers that cannot secure distribution help or retail presence. "The Granholm v. Heald case has led to the opening of New York's market to small producers. Connecticut and Ohio consumers can also buy wine from out-of-state wineries because of the court's decision," noted Paul Kronenberg, president of Family Winemakers of California. "Other states should see the wisdom of ending discrimination in shipping by wine producers and we're hopeful that California's decision to open its market to all producers serves as an invitation to action."

SB 118 allows licensed out-of-state wine producers to apply for a direct shipping permit from the California Department of Alcoholic Beverage Control for $10 annually. Permittees are required to register with the State Board of Equalization in order to appropriately collect and remit sales and excise taxes. Wine shipped to adult California consumers must be labeled according to requirements and a signature must be collected by the common carrier.

Family Winemakers of California is an association of over 600 premium table wine producers based in Sacramento. It advocates for the right to produce, market and sell wine on behalf of small, family-owned wineries and vineyards. Learn more about FWC at www.familywinemakers.org.