New California wine e-commerce law
Governor Schwarzenegger signed SB 118 into law this week. The bill eases restrictions on online sales of wine, in response to the Supreme Court's May decision in Granholm v. Heald.
There the Court held that state laws in New York and Michigan violated the Commerce Clause by treating direct sales of wine to consumers differently depending on whether the sales were made by in-state or out-of-state wine sellers.
The new law does the following, effective January 1, 2006:
-- Allows California consumers of legal drinking age to buy wine for personal consumption directly from winegrowers in all 50 states by abolishing the current reciprocal shipping restrictions.
-- Eliminates the requirement that a California consumer must apply for a state permit in order to buy wine online.
-- Requires wine shippers to obtain a direct shipper permit.
-- Eliminates the current quantity restrictions on direct wine shipments.
-- Regulates how sales are made and delivered to adult residents.
Read the legislative analysis. See also the Governor's press release. The bill was sponsored by the Family Winemakers of California.
Cathy Kirkman is a partner at Wilson Sonsini Goodrich & Rosati in Palo Alto, California. Her practice focuses on intellectual