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June 29, 2005Ban may 'crush' tradeMeasure flies through committee, prohibits tasting-room salesByRecord-Eagle business editor LANSING - A proposed ban on direct wine shipments that opponents say could cripple the state's small wineries blew through a state House committee less than two weeks after its introduction. The state House Regulatory Reform Committee voted 5-1 Tuesday to approve the ban on wine shipments within Michigan and other states, expanding the current law prohibiting shipments from out-of-state wineries but allowing those from in-state wineries. "This is going to kill the wine industry if they do this - it's just that simple," said David Lienau of Porchside Vineyards on the Old Mission Peninsula, which sells its grapes to another local winery. Tuesday's vote marked the first action on legislation drafted in response to a May ruling by the U.S. Supreme Court that said Michigan's original law was unconstitutional. The court said Michigan and other states must treat both in-state and out-of-state wine shipments equally. Rep. Chris Ward, R-Brighton, said he introduced the bill this month because he is worried about teenagers being able to easily purchase wine on the Internet without such a ban. "The shipping industry will not be strident enough to check IDs," he told the committee. The Ward bill would also prohibit wineries from direct sales to restaurants and stores and from selling wine out of their tasting rooms. But Lineau called the underage drinking issue "a red herring ... total BS" and suspects the bill's support more likely is tied to the influence of the beer and wine wholesalers lobby in Lansing. "It's quite upsetting to use this as a guise to keep the wholesaler's interests (intact)," he said. Ward said he is open to revising the bill when it is considered by the full House, but northern Michigan lawmakers have questioned whether the proposal is on a legislative fast track. State Sen. Michelle McManus, R-Lake Leelanau, called the committee's action "hasty." "If supporters of this ban truly want to work with vintners and seek compromise, they would not be rushing to ban direct-shipped wine," McManus said. "We owe it to Michigan residents and vintners to give this issue a thorough review and find a solution that addresses everyone's concerns." Small winemakers throughout Michigan spoke out against the bill at Tuesday's hearing. "It will literally kill our business," said Ed Gerten of Pentamere Winery in Tecumseh. "What we're looking for is a fair and equitable solution, but this bill is not. This bill will crush us." All but one of the five Republicans on the committee voted for the bill: Chairman Tory Rocca of Sterling Heights, Rick Jones of Grand Ledge, Ed Gaffney of Grosse Pointe Farms and Bill Van Regenmorter of Hudsonville. Rep. Virgil Smith III of Detroit was the only Democrat to vote "yes." Republican Rep. David Palsrok of Manistee was the only "no" vote. Two other Democrats on the committee passed on the vote. The Associated Press contributed to this report. See Related Stories: Legislators prepare new wine-shipping proposals - June 19, 2005 Area vintners laud Supreme Court shipping ruling - May 17, 2005 See Related Editorial: Internet wine bills test lawmakers' loyalties - June 26, 2005
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