David Ramey and Joseph Harbison to lead Family Winemakers in 2012; Brooks named treasurer

David Ramey of Ramey Wine Cellars in Healdsburg was elected to chair Family Winemakers of California in 2012.  He took up the gavel at the Annual Membership and Board Meeting this week in Sacramento.  Joseph Harbison of Harbison Wines in Oakville was elected vice chair of FWC.  Wendy Brooks of Pride Mountain Vineyards was appointed secretary and treasurer for 2012.
    
David Ramey                    Joseph Harbison              Wendy Brooks

Newly elected regional directors are:  Deborah Cahn (Navarro) and Carolyn Wasem (Jackson Family) in District 1; Ron Fenolio (Veedercrest) and Scott Harvey (Scott Harvey) in District 2; Jack Galante (Galante) and Skip Granger (Starry Night) in District 3; Greg Boeger (Boeger) and Paul Bush (Madrona) in District 4; Justin Baldwin (Justin) and Bob Balentine (Line Shack) in District 5; and Joe Hart (Hart) in District 6.  They join 25 continuing At-Large Directors.

New Jersey joins the ranks of states allowing direct shipping

And then there were 39 states that allow its citizens to order wine from out-of-state producers.  New Jersey joined the ranks of states that favor improved consumer choice when Governor Chris Christie signed A-4436 into law this week.  Under the bill non-New Jersey wineries that are licensed can ship 12 cases annually to a state resident 21 years or older for personal consumption.  The license fee is $938 and applicable taxes must be collected and remitted.

Unfortunately, New Jersey's new law contains a 250,000-gallon production cap, which limits consumer choice.  The New Jersey Legislature and Governor Christie did not heed the decision in the 1st Circuit Court of Appeal in Family Winemakers of California v. Jenkins, which invalidated Massachusetts' production cap law.

State budget deficit prompts Governor to seek $7 billion in new revenues

With state revenues lagging behind projections and budget cut triggers looming in order to balance the budget, Governor Edmund G. Brown, Jr. announced plans for a November 2012 initiative to raise $7 billion in new revenue.  Thwarted by Republican opposition in the Legislature to any tax increase the Governor is attempting to qualify the initiative for the ballot with a traditional signature-gathering effort.

The plan would raise the sales tax by a half cent and impose higher graduated personal income tax rates (up to 2% more based on income levels) for the next five years if voters approve.  Corporate income taxes would not be raised, however wineries organized as sole proprietors, LLCs or LLPs would be impacted.

The new revenue would go to fund public education and public safety.  Unlike the 2009 temporary tax increases that expired this past summer, which raised the sales tax, personal income tax and vehicle license fees, Brown's plan is more targeted then broad-based and earmarks the funds for specific purposes. The sales tax component will affect everyone, but the personal income tax is aimed at higher income earners.

Initiative 11-0090, called The Schools and Local Public Safety Protection Act of 2012, was filed on December 5 with the Attorney General's office for title and summary.  The public safety portion is meant to address the realignment costs of moving prisoners from state to local jails.  Its inclusion in the initiative also has the effect of attracting union support.  Increased support for local public safety could allow local governments to shift revenue to other purposes.  The education funding will be divided between K-12 (including charter schools) and community colleges.  K-12 gets 89% of the revenue and 11% goes to community colleges. 

The Governor has been meeting with business group representatives seeking support.  The FWC Board will discuss the proposal at its January meeting.

California sets guidelines for selling wine through third parties

After months of work, the Third Party Provider Industry Stakeholder group and the California Department of Alcoholic Beverage Control have developed an agreement on how licensees can work with Third Party Providers to facilitate wine sales over the Internet.

A new industry advisory was released November 1 after a panel presentation at the National Conference of State Liquor Administrators conference in San Francisco. 

Succinctly stated, the advisory provides a path to define how third party provider arrangements can be structured to ensure that the winery (the licensee) controls the sale, the transfer of title, the payment and does not violate the state's free goods statute nor what might constitute reasonable compensation for TPP activities.  FWC President Paul Kronenberg was part of the stakeholder group and the NCSLA panel speaking to the issue of winery needs.  ABC's action will make the marketing power of the web available to wine producers and should enhance direct-to-consumer sales.

FWC-sponsored Internet wine retail license bill signed into law

AB 623 (Williams), Family Winemaker's bill to establish a new limited wine retail Internet license was signed into law by Governor Jerry Brown on September 21.  It becomes effective on January 1, 2012.  The California ABC is developing an industry advisory on the new Type 85 license.

Holders of the new license can sell to consumers only, are not required to make a retail sale, can sell wine only, are limited to 21 cases per single transaction, and can donate and pour (assist) at qualified non-profit tasting events (check for daily licenses).  Type 17/20 licensees that don't want to make a sale to a retailer every 45 days could transition to the new license to simplify compliance.

The new license responds to the evolving nature of wine sales in an Internet-driven economy.  It should help increase sales of California wine and solve a nettlesome enforcement issue for virtual wineries.

Which wineries do direct-to-consumer sales?

Welcome to Family Winemakers of California's web site. The most value-added feature of the web site is our "Buying CA Wine" consumer map. Click there and you can simply find out if you live in a state that allows direct to consumer sales and more importantly, which Family Winemakers members are selling in your state. The list you'll find under each state will give you a direct link to that winery and its online store. Each state page contains valuable information for consumers buying wine.

Quick contact info

If you'd like to contact us you may do so by calling (916) 498-7500. Our fax number is (916) 498-7505.

Or write us a letter and mail it to:
Family Winemakers of California
520 Capitol Mall, Suite 260
Sacramento CA 95814
info@familywinemakers.org