Virginia Wines - 2005 Calendar of Festivals and Sponsored Events

VIRGINIA WINERIES ASSOCIATION

2007 Issues of Interest to the
Virginia Wineries Association

1. LAND USE
The 2006 General Assembly passed House Bill 1435 which provides that localities may not require wineries to secure special permits for PROCESSING wine. Further, the bill requires localities to preserve the status quo with regard to their farm winery regulation until July 1, 2007. The bill also requires the Secretary of Agriculture and Forestry to convene representatives of wineries, vineyards, local governments, agricultural, and tourism organizations to study issues surrounding the farm winery industry and report back to the 2007 Session of the General Assembly. The study will include an assessment of the economic viability of the Virginia wine industry as well as of the relationship between farm wineries and localities regarding special events in particular. The Association is actively participating in this study and will be involved with legislative efforts flowing from it.

2. SELF DISTRIBUTION
Last spring the Federal District Court in Richmond struck down the right of Virginia wineries to "self distribute," to serve as their own distributor and deliver wine directly to shops and restaurants in their own vehicles. The 2006 General Assembly failed to pass a bill to allow small wineries nationwide to self distribution in Virginia and, instead, stuck language in the Code of Virginia deemed unconstitutional by the Court. As a result, the wineries lost the privilege to self distribute on July 1, 2006. Regaining this privilege in some manner remains a priority for the Virginia Wineries Association. The Association’s Legislative Committee is meeting with allies on this issue and discussing possible legislative solutions. The VWA has legislators standing ready to carry self distribution legislation once it determines which solution has the greatest potential for success.

3. CHANGES TO WHOLESALING LAWS
With the loss of self distribution, some wineries are doing business with small, newly established wholesalers and are, therefore, becoming more familiar with Virginia laws governing relationships between wineries and wholesalers. The Virginia Wineries Association is examining the laws governing this relationship with the goal of identifying those that are particularly burdensome to wineries. The VWA may suggest changes to wholesaling laws to the 2007 General Assembly to make the winery-wholesaler relationship more efficient and productive.

4. DIRECT DELIVERY TO CONSUMERS
Also struck down by the federal courts and eliminated by the 2006 General Assembly is Virginia wineries' and retailers’ ability to DELIVER (not ship by common carrier) wine in their own vehicles wine directly to consumers. The VWA is working with its allies at the Virginia Retail Merchants Association and the Virginia Hospitality and Travel Association to create a constitutionally valid permit system to allow continued consumer deliveries.

5. BRAND OWNER CONSENT FOR RETAILER DIRECT SHIPMENTS
Also struck down by the federal courts and eliminated by the 2006 General Assembly was the requirement for written consent by out-of-state brand owners to a Virginia retailer shipping their wine under their direct shipper’s license. The law presuming that Virginia wineries had granted such consent was struck down as an unconstitutional preference of Virginia wineries. The Virginia Wineries Association is working with its retail partners to eliminate the requirement for written consent by either Virginia or out-of-state wineries before a retailer can direct ship their wine.

6. ABC STORE SALES
There has been a recent victory on this issue for the Virginia wineries as the Fourth Circuit Appeals Court ruled that the exclusive sale of Virginia wine at ABC stores may continue. However, the Virginia Wineries Association is monitoring ABC’s reinstatement of this program with hopes of making requirements for ABC store sales more friendly to newer and smaller wineries.