« Ind. Decisions - Court of Appeals issues five today | Main | Ind. Decisions - Transfer list for week ending March 10, 2006 »

Friday, March 10, 2006

Ind. Law - The tipsy-turvy wine debate

"The tipsy-turvy wine debate: Government regulation packs a hangover for columnist" is the title to a very good column today, by Debbie Harbeson, in the New Albany Tribune:

Operating government regulated businesses sure can be tricky. Here’s the process for a common winery business transaction: Visitors stop by, have an enjoyable time tasting the company’s offerings and purchase several bottles to take home. A few months later, the customer orders more wine and the business ships the bottles directly to the customer. Everyone is happy, the customer gets her wine and the winery gets the sale. This has been going on for 30 years in Indiana. End of story, right? Not when the business is government regulated. Grab a bottle of your favorite wine and read on.

The trouble started fermenting when a recent Supreme Court ruling created some confusion in Indiana. The ruling said if in-state wineries can ship directly to customers, then the state has to allow out-of-state wineries to do the same.

So fine, you say as you sip your Rose. Let the out-of-state wineries ship directly to customers. Indiana’s wineries can handle the competition, plus it would be nice to have a few more choices. Open up the market and let business and customers freely trade with one another. I totally agree this would make the most sense, but remember it’s government regulated. There are taxes to collect and special interests to serve.

I suggest you swallow that sip before you read what happened next.

Someone asked the guy in charge of the Indiana Alcohol and Tobacco Commission what Indiana government is going to do about the Supreme Court ruling and he said it doesn’t affect Indiana. He said Indiana doesn’t allow in-state wineries to ship directly to customers so they will just continue to deny that choice to customers who want to purchase out-of-state wine as well. No, you haven’t had too much to drink. Yes, I did say the government official, whose job it is to know such things, did not know wine was being shipped in-state to customers for the past 30 years.

When someone pointed this out to him, he then proclaimed it to be illegal. This means one day a winery owner is happily shipping orders to his customers and the next day, he’s at risk of committing a crime.

The controversy continues because, as usual, the law isn’t clear on the issue. So now the two sides are fighting over whether it’s legal or not. Essentially the government is saying an action can’t occur unless the law specifically states it can.

Does this mean we are headed down a road where we have to have a law specifically stating every single thing a person or company may do? And if no law exists, the government can immediately declare the action illegal? Think of how many oak barrels it would take to hold the paper we would need for such laws. It would cause more confusion than figuring out the proper wine to serve with fish.

Once again, we see how complications arise when using government force to control more and more. Why can’t we just let businesses ship the product to people who want it? The recent ruling said there was little evidence that purchases by minors is a problem. It also seems less safe for all of us to make people drive a car to get alcohol when they could simply have it delivered.

Drat, your wine is almost gone. Now I can’t tell you the story of the legislature’s involvement in this mess because that will take at least another bottle and who knows when you will be able to get more delivered. Drink what you have left slowly so you can make it through the remainder of the short session. Cheers.

Posted by Marcia Oddi on March 10, 2006 01:18 PM
Posted to Indiana Law