issue: Michigan House Bill 6644
On December 4th 2008, the House of Representatives in Michigan passed HB 6644. Although, passed would be an understatement in a ruling that read 97 in favor to 9… that’s right, only 9… opposed. So what is in HB 6644 that was so unarguably beneficial to Michigan that it brought Democrats and Republicans alike together…
“House Bill 6644 would amend the Michigan Liquor Control Code to delete the provisions described above. Instead, the bill would specify that notwithstanding a commission rule allowing an off-premises licensee to deliver a preordered quantity of alcoholic liquor to a customer, a retailer could not deliver alcoholic liquor to a consumer at his or her home or business or at any location away from the retailer’s licensed premises.”
Yes, the legislative officials at Lansing came together in unison to make it ILLEGAL for consumers to shop for wine over the internet… to make it ILLEGAL for small wine shops in Michigan to deliver wine to customers… to make it ILLEGAL for restaurants and caterers to buy wine any place but through Michigan wholesalers, who control the styles of wines and the prices they are sold at.
This is called the 3-tier system, a system that dates all the way back to the repeal of prohibition. You can either be a supplier, a wholesaler, or a retailer. It’s a chain at the bottom of which is the consumer. We can only interact with the retailer. The retailer is at the mercy of the wholesaler and their relationships with suppliers. Wholesalers determine which brands are carried in the state and which in-state wines get sold out of state. It’s all tied to a very expensive out-of-state license which basically means… if you are a small winery in Michigan, don’t expect to sell your wines outside of Michigan. If you are a small winery outside of Michigan, don’t expect to sell your wines in Michigan. And let’s not even get started on out of country wines!!
And I sit here and ask myself… why is it in a time of progress and transparency, in a time where the consumer can collaborate with big brands like Starbucks and Dell, where consumers are given a voice in government… why is Michigan so in favor of a system that keeps consumers at the very bottom of the ladder in so little control of the products they can buy and the prices they can buy them at?
There are a lot of people who righteously like to call a “pig a pig”, and say that the Michigan Beer and Wine Wholesalers Association have been fattening pockets in Lansing, while the small wineries just haven’t been putting up the fight they did a few years ago. The Wholesalers Association will claim that they are protecting businesses from the chaos of opening the market up, that they are protecting minors (rich minors with good taste) from buying wine online, and that they are protecting in-state businesses from competing with out-of-state businesses. But let’s not quibble over WHY the government is doing it. I’m hear to talk about WHAT this bill is going to do… because it is about to go to the Senate on December 18th to get passed right in time for Christmas.
Who does this bill hurt?
1. Me, my mom, my father-in-law, and all the people like us
I have bought the last 3 years of Christmas presents and birthday presents for my husband online. Ever since we honeymooned in Napa Valley, we fell in love with the wine culture. It is a huge part of our life together and our marriage, as we bond over the experiences and the memories we create touring wine countries. I’ve created unique gift packages of wines from those vacations that we can’t get back at home. And now… I will no longer be able to do that.
My mom is the queen of unique gift giving. She loves to find those gifts that no one else would be able to find, and for her daughter and son-in-law, a lot of those gifts have dealt with wine. Even most recently, she gave us some unique wines from the South, from her heritage. And we shared in an evening of good ol’ Southern cooking and beverages. And now… she will no longer be able to do that.
My father-in-law fell in love with French Bordeaux in his younger age, a wine that doesn’t come easily to Michigan. And when Tom and Sandy raised their three boys, they made it a point to buy a wine from each of their birth years to give to them on their wedding day. It took lots of research to find the perfect wine, the one that would age 20-30 years. When we were given that wine on our wedding day, my husband and I both teared up and made a promise to do the same for our children. Will we be able to keep that promise?
2. Small local businesses like Winebuys.com and Rick Wolf
But it’s not just consumers who suffer. It’s local businesses. Winebuys.com is a Ferndale-based business based almost entirely on direct shipment to customers. Michael Solarz, the owner, brought it from California to Michigan a year ago. They have six employees but hope reach 25 within two years, but with this law, they will be moving their business elsewhere.
“I find it extremely antibusiness and distressing. We wanted to get into a business that wasn’t dependent on the Michigan economy. Then we get hit with this?”
And then there is Rick Wolf, who works for a wine retailer in Madison Heights:
“Our Madison Heights team has developed sound relationships with clients all over Michigan. We are proud we can personally cater to our clients’ tastes and their budgets prior to delivering their wines… The practical ramifications of House Bill 6644 passing would be catastrophic for my company, as well as hundreds of other wine retailers and catering companies. We would be forced to employ less delivery drivers, warehouse workers, and even customer service representatives. During this particularly trying holiday season, the Michigan House of Representatives would be better served considering a bill that can create more jobs, not one that is certain to take jobs away.”
3. The future residents and businesses of Michigan
If places like Winebuys.com are moving out of Michigan, this all but assures that businesses like them will not be moving in. The cost and restrictions will no longer make it reasonable for a wine associated start-up to make headway in a state like Michigan. But what about the future residents of Michigan? You could say it is beyond a stretch that someone would chose to move or not to move to Michigan based on this bill… but I say that it is “quality of life” issue and that it sends the wrong message to future Michiganders about the governments priorities.
When it came time to vote this November, I wanted to make sure that I was doing my part to elect the right kind of people not only into Washington, but into Lansing. That is why I spent time watching local debates like this one between Rep. Marc Corriveau (D) and Jerry Vorva (R). Marc Corriveau won me over because he seemed to understand that the key to solving Michigan’s crisis was not just making it attractive for businesses to move to Michigan, but making it attracting for people to move to Michigan. He said that if you improved the quality of life… the roads, the schools, the culture, that businesses would follow.
Marc Corriveau voted yes to HB 6644, and never have I so quickly felt personally let down by someone in office… someone I voted to be there.
Will this post make a difference? Will it convince Senator Bruce Patterson to oppose the bill when it comes to Senate on December 18th? Probably not. But it will stay in the Google archives, it will spread around the internet, and it will be a constant reminder to some that the AGAINST argument is perhaps worthy of a little more than a single paragraph.
Thank you for listening,
Marta Strickland
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RECENT WINES
December 10th, 2008 at 10:05 am
Marta,
This may not pass this session. Thousands of people have been flooding the Senate with emails, faxes and phone calls. Right now, everything is in the hands of Senate Majority Leader Mike Bishop, whose top aide has already told the press that the bill is “not a priority”. So we can still hope.
But that’s only the first step; this bill will come back again next year, and people need to be better organized than we were this time. It’s also time we demand that folks at the LCC like Ken Wozniak and Nida Samona — OUR paid administrators — stop citing false numbers and unsupported claims in order to aid and abet the wholesalers’ efforts.
Joel
MichWine
December 19th, 2008 at 12:07 pm
I am so glad you wrote this post to stand up for Michigan consumers. The three tiered system was started as a good thing after prohibition, but the greedy distributors have been lobbying and getting too much power. Now with technology, they are becoming obsolete and grasping desperately to keep a hold of a domain which they are losing. Shame on the politicians if they take their side because of their power and $$ over the consumers wants and wishes.
January 21st, 2009 at 11:56 pm
Well unfortunately we all know now that it has passed. How long until it goes into affect? The best answer I could find was approximately ninety days, but if someone knows definitively I would like to know. And in regards to Marta’s posting I could not agree with you more. This is a hobby that I have developed with my husband and my family. We have gone to Napa almost every year since our first trip five years ago and last year my parents went with us for the first time. So many of the wines we enjoy are not available locally. I would gladly purchase them here if I could but it is simply not an option and now they are going to take away the one avenue we have to obtain them. What now? Is there any way to try to have it repealed? If anyone has some thoughts I would like to know.