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Wine E-News from Congressman Mike Thompson

May 3, 2010
Newsletters
Dear Friend:

You may have heard about a bill in Congress that would significantly harm the California wine community, especially small wineries. This bill - H.R. 5034 - was proposed by the National Beer Wholesalers of America as an attempt to increase their control over which products are sold by beer, wine and spirits wholesalers. It's completely wrong-headed, which is why I'm working extremely hard to make sure it goes nowhere.

Before I give you the background on the bill, let me assure you - this bill is widely opposed in Congress, and I've been told by Speaker Pelosi that it's very unlikely to succeed. However, the effects of this bill could be devastating to California wine and the beer wholesaler guys are working overtime for its passage, so I am going to stay vigilant in my opposition and I hope you will join me.

What's in this wrong-headed bill?
Simply put, this bill is an attempt to upend our country's current alcohol distribution system. For decades, our courts have struck a balance between the 21st Amendment, which allows states to regulate the transportation or importation of alcohol, and other constitutional rights such as the Commerce Clause, which ensures the federal government's right to protect fair and non-discriminatory commerce across state lines.

H.R. 5034 would make the dormant Commerce Clause inapplicable to any state laws dealing with alcohol unless "unjustified" and "facially discriminatory." It would shift the burden of proof away from the states to defend laws they pass and make state laws supersede any federal law that is inconsistent with state law's provisions. Laws like the recently struck-down direct shipment law in Massachusetts would be immune from Constitutional scrutiny.

Bottom line: this legislation allows Congress to pick the winners and losers in the wine business. It means wholesalers could have complete control over which wines consumers can access. And wineries and wine retailers would have no recourse if discriminated against.

What can you do about it?
I've heard from many people in our Congressional District who oppose this legislation and I am very grateful for your support. If you have colleagues or friends in any other Congressional Districts - in California or any other state - I encourage you to have them contact their Member of Congress and ask them to not co-sponsor H.R. 5034.

You can read more about this harmful legislation in Wine Spectator.

Thank you for your support.

Sincerely,

MIKE THOMPSON
Member of Congress