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Plan would regulate state-made wine sales

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SPRINGFIELD - A plan to regulate the sale of Illinois-made wine is on tap for a vote in the Illinois House.

In action Thursday, the state Senate voted unanimously in favor of legislation to end a brewing controversy between the state's fledgling wine industry and beer distributors.

Negotiators for the agreement said both sides have reason to toast the pact, which could head to the governor's desk by Friday afternoon.

"I think this is acceptable to the wine industry," said state Rep. Mike Bost, R-Murphysboro, whose district includes a swath of Illinois' wine country.

State Rep. Lou Lang, D-Skokie, who entered the talks siding with the beer distributors, said both sides gained in the deal.

"I don't think either side gave up much," Lang said.

The final product will have ramifications on the state's wine industry, which includes nearly 200 wineries spread across the state, up from about one dozen just a decade ago.

The legislation was triggered by a U.S. Supreme Court ruling last May that found liquor laws in Michigan and New York discriminatory. Those states had laws similar to Illinois', which allowed in-state wineries to ship directly to consumers without going through the same distribution process that is required for beer sales or out-of-state wineries.

Under the new plan, Illinois winery owners who want to sell their products at restaurants and liquor stores will have to go through a distributor, rather than dealing directly with retailers.

Wineries can continue to sell their products at the winery and at two retail locations off the premises. That is a drop from the 10 retail locations they had originally sought.

Wineries also wanted to be able to sell 36 cases of wine a year to individual customers via the Internet. Under the legislation, they would be limited to selling 12 cases per year.

In exchange, beer distributors gave up on a proposal that would have forced wineries to only sell mail-order wine to people they've already done business with.

One lawmaker, however, said he was concerned that Internet liquor sales could lead to minors getting their hands on booze.

State Rep. Paul Froehlich, R-Schaumburg, said he conducted a sting operation and found that a minor could easily purchase liquor over the Internet.

But, he said provisions in the legislation are a good first step toward cracking down on shipping companies that don't check the age of the recipients when they deliver liquor.

State Sen. Dave Luechtefeld, R-Okawville, whose district includes several wineries, called those concerns "bogus," saying minors don't usually plan that far ahead if they are planning to illegally consume alcohol.

Luechtefeld said clarifying state law on the issue of mail-order wine sales will help the industry.

"I think that small wineries won the public relations battle," said Luechtefeld. "I'm just happy they've come to a conclusion."

Kim Morreale, who represented the wine industry at the negotiating table, said the new rules give wineries the opportunity to continue to grow.

"We're hoping this is going to be a good deal for the wine industry," said Morreale.

The legislation is Senate Bill 2180.

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