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HomeMy WebLinkAbout10-064 CC Resolution RESOLUTION NO. 10 -64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO OPPOSE H.R. 5034, THE COMPREHENSIVE ALCOHOL REGULATORY EFFECTIVENESS ACT OF 2010, IN ORDER TO PROTECT AND PRESERVE THE ABILITY OF CALIFORNIA WINERIES, AND ALL WINERIES IN THE UNITED STATES, TO SHIP WINE DIRECTLY TO CONSUMERS WITHOUT DISCRIMINATION BETWEEN IN -STATE AND OUT -OF -STATE WINE PRODUCERS. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, California is the fourth largest wine producing region in the world; and WHEREAS, California winegrowers ship over 193 million cases, representing some 467 million gallons of wine to the United States wine market; and WHEREAS, the California wine industry creates more than 330,000 jobs, billions of dollars in economic impact, and preserves agricultural land and family farms; and WHEREAS, the California wine industry generates higher taxes than more industries because, as a regulated industry, it pays excise taxes to the state and federal government on every gallon of wine; and WHEREAS, the California wine industry has an annual impact of $61.5 billion on the state economy and produces the number one finished agricultural product in the state; and WHEREAS, California's wine industry attracts 20.7 million tourists annually to all regions of California and generates wine - related tourism expenditures of $2.1 billion; and WHEREAS, currently 37 states and the District of Columbia allow direct shipping of wine from winegrowers to consumers; and WHEREAS, the innovation and entrepreneurial spirit of small California wineries drives the entire industry to improve and progress; and WHEREAS, in order to reach consumers in other states, many California wineries have turned to direct marketing and shipping of their wines; and R: /Resos 2010 /Resos 10 -64 1 WHEREAS, since 1985 California has pioneered consumer access to wine through reciprocal and permit shipping to alleviate scarcity at the retail level of California wines; and WHEREAS, over the past 10 years, consolidation trends within the wholesale tier have made it difficult for California wineries to achieve adequate distribution, and, as a result, have limited consumer choice; and WHEREAS, California wineries have offered voluntarily to have their direct marketing and shipping permitted and regulated by other states to ensure that those states collect the same taxes that wines sold through the three -tier system must pay, that direct deliveries would be made only to adults, and that direct deliveries are not made in "dry" areas, as defined under the laws of each state; and WHEREAS, the California wine industry has developed comprehensive model direct shipping legislation to address all of the concerns expressed by state alcohol regulators across the country; and WHEREAS, California has enacted a law to open direct shipping of wine from other states to its own residents without limitation through a simple permit system to comply with the decision in Granholm v. Heald (2005) 544 U.S. 460; and WHEREAS, States' rights to regulate wine and alcohol granted by the 21 amendment to the United States Constitution have always been subject to constitutional limitation and judicial review; and WHEREAS, Court decisions over the last 40 years balance state authority to regulate alcohol with the framer's belief that the nation would only succeed if interstate commerce thrived; and WHEREAS, the Commerce Clause has been applied judiciously by the courts to foster national economic goals while preserving nondiscriminatory state authority; and WHEREAS, the landmark 2005 United States Supreme Court case, Granholm v. Heald, reaffirmed states' rights under the 21 Amendment to the United States Constitution to regulate wine as long as they do not discriminate between in -state and out -of -state producers, and correctly rules that these rights do not supersede other provisions of the Constitution; and WHEREAS, H.R. 5034 would severely limit consumer choice in California wine throughout the nation as direct -to- consumer laws are amended or repealed; and WHEREAS, H.R. 5034 would imperil markets access for California wineries that cannot secure effective wholesale distribution; and R: /Resos 2010 /Resos 10 -64 2 WHEREAS, H.R. 5034 would stunt competition among the nation's 7,011 wine producers as markets are artificially constrained and access is limited; and WHEREAS, H.R. 5034 would allow certain state alcohol laws to avoid judicial scrutiny through a presumption of validity; and WHEREAS, H.R. 5034 would reverse decades of long- established jurisprudence that has balanced interstate commerce concerns with state regulatory authority and fostered a dramatic growth in wine production, sales and tax revenue; and WHEREAS, H.R. 5034 would insulate and sanction discriminatory state laws by reversing evidentiary rules for Commerce Clause legal challenges and increasing the burden of proof for plaintiffs; and WHEREAS, H.R. 5034 would be an unprecedented shift in the relationship between federal and state authority over wine; and NOW, THEREFORE, BE IT RESOLVED by the City of Temecula to oppose H.R. 5034, the Comprehensive Alcohol Regulatory Effectiveness Act of 2010 in order to protect and preserve the ability of California wineries, and all wineries in the United States, to ship wine directly to consumers without discrimination between in -state and out -of -state wine producers. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 24th day of August, 2010. •? �� Jeff Comerchero, Mayor ATTEST: aon [SEAL] R: /Resos 2010 /Resos 10 -64 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 10 -64 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 24th day of August, 2010, by the following vote: AYES: 5 COUNCIL MEMBERS: Edwards, Naggar, Roberts, Washington, Comerchero NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None Susan . Jones, MMC City Clerk R: /Resos 201 Mews 10 -64 4