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Well, it's progress

THE BALTIMORE SUN

Maryland calls itself the Free State, but it's long been anything but that for consumers who want to have hard-to-find wines shipped in from other states.

Restrictive laws, backed by powerful special interests, make it illegal for Marylanders to order a case of their favorite California or Washington or Virginia boutique wine and have it shipped to their homes.

That will not change July 1 when a new wine-shipment law passed by the General Assembly this spring takes effect. However, in its convoluted and compromised way, the law represents progress.

"It's not going to be direct shipping to a customer's door, but it's the next best thing - a shipment to your local retailer," said state Sen. Andrew P. Harris, the bill's primary author.

The legislation is the product of a three-year struggle led by the Baltimore County Republican, who first introduced a wine-shipment bill in 2000 after hearing from constituents about the absurdities of the current law.

The bill, which would have allowed direct shipments to consumers, offended the powerful interests that benefit from the current system - liquor retailers and wholesalers. It came as no surprise to anyone familiar with Annapolis that the bill failed.

Harris kept at it, however. His second effort would have allowed direct shipment to retailers. The defenders of the status quo blocked that, too.

This year's legislation is a recognition of the political reality that the retailers and wholesalers have a stranglehold on the legislature. The law gives everybody a cut of the action, with the consumer footing the bill.

Here's how the law works: Let's say you read a magazine review of a California cabernet sauvignon made by a winery so small it doesn't have a Maryland distributor. Under this law, you can call the winery and place an order for the coveted wine.

To fill your order, the winery needs a Maryland permit. The $10 annual cost shouldn't be an obstacle, but the paperwork and the required annual tax return could be a deterrent.

Assuming the winery (or importer, in the case of a non-U.S. wine) has a permit or doesn't mind securing one, the wine will have to be shipped to a Maryland wholesaler designated by the winery. The wholesaler gets to collect a handling fee of up to $4 per shipment (or $2 a bottle).

The wholesaler then delivers the wine to a retailer designated by the consumer. The retailer gets to charge the consumer $10 (or $5 a bottle) for handling the shipment and collecting Maryland taxes.

So will the law accomplish what it set out to do? Charles W. Ehart, the official in charge of implementing the law, has his doubts.

"I don't think it's going to work. I think it's too convoluted," said Ehart, director of the Alcohol and Tobacco Tax Division of the Maryland Comptroller's Office.

Ehart said his agency took a neutral position on this year's legislation. He preferred a sensible proposal to let wineries ship directly to retailers for the consumer to pick up. That proposal was opposed by wholesalers - ever vigilant about preserving their cut of the action - so the agency caved.

"We know if the industry's going to oppose this, it's not going to pass," Ehart said.

Kevin Atticks, a Timonium writer and free-wine-trade advocate, also has his doubts about the new law. "There are too many steps in between, so there is ample opportunity for the wine to get lost or never make it to the intended parties," he said.

My guess is that wine consumers will see mixed results.

The system should be a success among small wineries in surrounding states - especially Virginia and Pennsylvania.

"It's something that we would consider - absolutely," said Ed Prugh, sales director of Chrysalis Vineyards, an award-winning winery in Middleburg, Va. The winery doesn't have a Maryland distributor but gets many visits from Marylanders who later want to place orders.

It's less likely that the law will attract interest from the tiny California boutique wineries whose products are so desired by collectors. These producers could sell everything they bottle many times over. Why would they want to jump through Maryland's hoops?

What may be required to make the law work is some active missionary work by Maryland consumers.

One suggestion: Print out administrative release No. AB-21 (May 6 release) posted on the comptroller's Web site at http://compnet.comp.state.md.us. Get it into the hands of the people at wineries that don't sell in Maryland. Beg, plead and offer to pay the $10 upfront if they seem reluctant.

A perfect law would work all by itself. This is imperfect, so it's up to Maryland wine enthusiasts to make it work.

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