NJ passes direct shipping bill,but impediments remain

Today, Governor Christie signed winery direct shipping into law, which will go into effect in May.

But the bill's language is not without faults. The law includes an unconstitutional "capacity cap" that allows small wineries to ship directly to consumers but bans shipments from mid-sized wineries or wine companies producing more than 250,000 gallons per year. Additionally, the bill prohibits out of state retailers from direct shipping.

We applaud Governor Christie and the New Jersey legislature for making way for direct shipping and the new law is a step forward. But it will exclude at least 90% of U.S. wine production, and all shipments from out of state retailers, from direct sales to New Jersey wine lovers.

We hope the legislature will address these shortcomings in future sessions.

Background
In response to a 3rd Circuit U.S. Court of Appeals ruling that declared New Jersey winery "satellite" tasting rooms illegal, the New Jersey Legislature considered legislation to restore satellite tasting rooms and allow for limited direct wine shipments.

Numerous bills were introduced in NJ over the last two years to remedy the situation – some good for consumer choice; some not. Unfortunately they all included "capacity caps" which reduce consumer choice and have been ruled unconstitutional. In the latest court ruling (January 2010) the 1st Circuit U.S. Court of Appeals struck down a Massachusetts capacity cap statute as being discriminatory and unconstitutional. Consumers and wineries in Massachusetts were back where they started...without wine shipping. And the state was stuck with an $800,000 legal bill for defending a law the courts ruled unconstitutional.

The NJ law could be challenged in court, leaving New Jersey wine lovers out in the cold once again.