NY may be next

[glenora]

Thomas

I will try to keep the reply short but this is becoming a very complex issue at this point.

The supreme court effectively ruled that no state can discriminate - it's an all or nothing scenario. Either we will win and get direct shipping, or we will lose and become like New Jersey and have no shipping allowed at all. It is up to the Legislature now to authorize out of state wineries to ship in.

Should the Legislature not act (before the end of session--June 24), then it is very likely that the second circuit will step in and decide which section of NYS law to strike. They will either strike the prohibition on out of state wineries shipping alcoholic beverages into NY without going thru a distributor (our preferred option and one which would mandate further leg./rules to develop a regulatory framework for tax collection/minor protection) OR and it's a big OR the second circuit can strike the provision in NYS law (farm winery act is part of it, as is the licensing scheme for a commercial winery) which allows for intrastate shipment.

Here's the deal -
1) if the Legislature passes legislation allowing intertate wine shipments, the second circuit court will simply review it for consistency with the supreme court decision and we are fine. There may be minor technical issues that come up but all will be well.

2) if the Legislature doesn't act we completely roll the dice with the second circuit.

It is the feeling of most the no one in NY (gov, legislature, industry) wants to go the way of the second circuit as there is too much at risk.