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- Jerry D Mead - 03-19-1999
//At least the AP reporter did a decent job of telling the other side of the story, although she didn't quote any specific sources from the good guy's side. JDM//
New bill outlaws out-of-state beer, wine home
deliveries
By NANCY PARELLO
The Associated Press
03/18/99 6:16 PM Eastern
TRENTON, N.J. (AP) -- Add a new item to the list of dangers lurking in cyberspace -- booze.
A bill introduced on Thursday would ban out-of-state deliveries of alcohol to customers' doorstep.
Advocates of the measure, including New Jersey liquor wholesalers and retailers, say allowing
people to order beer or wine over the Internet and then have it shipped directly to their home
encourages underage drinking. It also cheats the state out of sales taxes.
But owners of vintage wineries and beer-of-the-month clubs, which typically sell their products by
mail, say the real worry behind the legislation is that their sales bite into the profits of wholesalers and
local liquor stores.
They argue that these laws, which are being proposed or have been passed in several states, do
nothing but protect powerful wholesalers worried about losing profits and their monopoly on alcohol
distribution.
Owners of these mail-order companies also say they ask for proof of age before shipping any
products.
But alcohol prevention advocates disagree. They say it's easy for teens who have a credit or debit
card (or steal a number from their parents' cards) to get alcohol delivered right to the front door.
"Parents may lock their liquor cabinets and take the key, but children have found a way to bypass the
liquor cabinet," John Hulick, director of public policy for the National Council on Alcoholism and
Drug Dependence-New Jersey, said during a Statehouse news conference on Thursday.
"Now they can simply turn on their computers, pick up a phone, or fill out a mail order catalog and
obtain alcohol," he said.
The bill, A-915, would add teeth to an existing law that already outlaws direct delivery of alcohol,
said Assemblyman Joel Weingarten, R-Essex, the bill's sponsor. That law, enacted right after
Prohibition ended in 1935, has been largely ignored because there has been no money -- and no
incentive -- to enforce it.
Now, specialty wines, beers, ales and lagers are often shipped by mail and overnight delivery. The
market exploded with the popularity of microbreweries, wine tasting classes and Internet sites
devoted to hard-to-obtain alcohol. Industry estimates put mail-order alcohol sales at more than $1
billion annually.
Under the bill, consumers could still join their favorite beer-of-the-month club or order a vintage wine
over the Internet or by phone, but they'd have to pick it up at their local liquor store.
And they'd probably pay a "reasonable fee" for handling to the liquor store, Weingarten said.
The bill would also provide money, probably about $300,000 a year, to enforce the law. And it
would make it a felony to ship liquor to New Jersey doorsteps. That means, if convicted, a mail order
business could risk losing their federal license to operate as a liquor distributor, Weingarten said.
The bill would also establish an 800-number that consumers could call to find a particular brand of
liquor and then have it shipped to their local liquor store. Wholesalers would pay for setting up and
operating the line.
"The attempt here is to preserve consumer access to acquire alcoholic beverages they can't get
through the normal wholesale/retail network," said Weingarten.
The bill is consistent with federal efforts to make direct shipment a felony.
Sen. Orrin Hatch, R-Utah, recently introduced federal legislation that would toughen enforcement of
existing laws that prohibit importing or transporting alcohol to minors. He said earlier this month that
it is a federal issue and should be handled in federal court. The legislation would grant state attorneys
general the power to file actions in federal court.