Wine Without Borders

Getting the Facts Straight in Michigan

November 14, 2008 – 8:09 am

Yesterday Michigan’s Liquor Control Commission, in league with Michigan alcohol wholesalers, began the process of stripping their in-state retailers of the right to ship wine to Michigan residents. What has become clear from news reports only one day after HB 6644 was secretly pushed through a Michigan House Committee is that the coming slap in the face to Michigan retailers and consumers is being pursued on the basis of bad information and no research into the consequences of retailer wine shipping.

HB 6644 was introduced in response to a recent court decision in Michigan that, once again, found the state’s wine shipping laws out of compliance with the U.S. Constitution. Michigan improperly allowed its own wine merchants to ship wine to Michigan residents, but barred out of state retailers from doing the same. The State has appealed the case to the 6th Circuit Court of Appeals, but apparently has realized they have little chance of winning. So, instead of doing the proper thing for the people of Michigan and opening the state to will-regulated direct sales by out of state retailers, the Liquor Control Commission took the suggestion of wholesalers and went to work “leveling down” by barring its own wine retailers from shipping any wine.

The problem is that their explanations for why this is necessary have no basis in fact”

“if hundreds of thousands of unregulated out-of-state retailers are permitted to ship beer and wine to Michigan residents, there’s a likelihood that alcohol will be delivered to underage customers.”
Ken Wozniak, Director of Executive Services, Michigan Liquor control commission.

Mr. Wozniak is talking off the top of his head.

-Had he looked at other states that actually issue permits to out of state retailers and wineries to ship wine into a state he would have found that no more than 20% of all permits issued go to retailers, the rest go to wineries.

- Had Mr. Wozniak done a little research he would have found that no alcohol regulatory official in America and no law enforcement official in America has ever state they have a problems with underage customers obtaining alcohol from via direct shipment.

Then there is this:

” the state eventually could lose hundreds of millions of dollars in revenue that goes to school aid and other purposes. “
Ken Wozniak, Director of Executive Services, Michigan Liquor control commission.

Had Mr. Wozniak done his homework instead of passing off the wholesaler-provided talking points he would have known that in every state that begins issuing permits to out-of-state retailers to ship wine into the state, tax revenues in those states GO UP afterwards.

When businesses’ rights are taken away and when consumers’ rights to access the market are stripped, one would hope that all this is done on the basis of sound information. Not the case in Michigan.

Will Michigan officials actually look into these issues? Will the sponsors of HB 6644 ask the Liquor Control Commission to explain their misunderstandings?