State Senator Paul Stanley - District 31

Thank you for your note in support of restricting teen access to alcohol.  In my eight years in the General Assembly I have consistently supported tougher restrictions on underage access, worked to strengthen our DUI laws and make possession of illegal substances a crime.

You most likely received a letter from stopteendrinkingtn.org.  While the intent to curb teen alcohol consumption is a goal we all seek to accomplish, this site is actually supported and operated by the wholesale liquor industry in Tennessee.  Their sudden interest in enlisting your support is to oppose SB1977, which allows consumers to order very limited qualities of wine, and only wine, from auction houses and vineyards in wine producing states such as California and Washington should not go unnoticed.  Two years ago the United States Supreme Court ruled that direct wine shipments to consumers were permitted as long as in-state wineries could also ship within the state.  Due to the strength and intense lobbying effort of liquor wholesalers in Tennessee, it is illegal for a Tennessee winery to ship their product within the state, therefore it is illegal in this state for consumers to order wine from out of state wineries.

Tennessee has in place what is known as the “three tier system” (manufacturer, wholesaler, retailer) for the sale of beer, liquor and wine.  Any other method of purchasing these products is illegal and considered a felony in Tennessee (DUI is still a misdemeanor).  The intent of SB1977 is to allow consumers the ability to collect and acquire what is not available in Tennessee.  Wholesalers only stock what they are able to sell and many small vineyards in California have only limited quantities of wine available and cannot meet the mass marketing requirements wholesalers demand.  For example, Beringer White Zinfandel is made in mass quantities and is available at a relatively low retail cost.  This wine will never be ordered by consumers since purchasing it at the local retail store is easy and inexpensive.  However, a 1993 Robert Mondavi Reserve Cabernet Sauvignon (cost per bottle in excess of $150) is not available on the retail level because of its age, high quality and limited availability.  What is left is in the hands of collectors or wine auction houses and is not available through retail channels and there is no legal way to obtain this particular bottle in Tennessee.  In addition, there is no method to tax wine that is currently being shipped into Tennessee today and our fiscal review office has estimated tax revenues would add an additional $4,000,000 of revenue to state government.  The reason this is important is wine is already being shipping today our state but is not taxed or regulated.  It the issue of teenagers acquiring direct wine shipments was an issue, we would already be hearing about it and this is not the case today.  In addition, the revenue collected could be used to counter issues such as teen drinking.  This is why a change in this law is needed.

Will teenagers order wine over the internet?  No, and here’s why.  Teenagers typically seek immediate gratification and those seeking to acquire alcohol usually do so by enlisting the help of older friends to buy it for them.  They are also not interested in high end or collectable wine that is the primary focus of those who favor changing our existing law.  For example, a $10.00 bottle of wine (very inexpensive price point) ordered as a case with ground shipping will result in a cost of approximately $150.00 and will be delivered in about 2-3 weeks using ground shipping.  This is hardly an incentive for teenagers to order in this manner.  In addition, there are a number of safeguards that can be imposed to restrict underage access while giving adult consumers greater choice in acquiring the wines they desire.  Although direct shipment to local retail wine merchants is not my first choice, I would not oppose mandating that any shipment from an out of state winery be delivered to local wine merchants to collect the tax and check the identification of those ordering the product.

Even after my explanation I understand some will still oppose this bill and I completely understand their reasons.  However, raising the teen drinking issue as a way to counter this legislation is only intended to evoke passion of an issue that has nothing to do with the true intent of this bill or the choice it can bring to consumers while still maintaining safeguards to protect our children.  If you would like to discuss this or any other issue in greater detail, please call me at 1-800-449-8366 ext. 13036 of my home number that was listed on the letter you received from the liquor wholesalers.  You may also reply to this email address.

Thank you for taking the time to read my reply and I hope to hear from you again.

Regards,

Senator Paul Stanley

Wine Shipping Statutes