Letter to Members of the New York Legislature

January 29, 2004

Members of the New York Legislature
State Capitol
Albany, New York 12224

Dear New York State Legislator:

As you know, the grape and wine sector represents a major industry in New York State. As New Yorkers, we can be proud of the reputation of our wines, the beauty of our grape growing regions, and the accomplishments of our world-class research institutions.

Unfortunately, wine production-the fastest growing agricultural industry in New York-is currently prevented by state law from creating new markets via direct shipment to customers outside the state. New York is losing out. Although both your chambers successfully passed legislation to repeal this anachronistic, damaging law-thereby benefiting our wineries and state economy-the Governor ultimately vetoed the bill.

We are pleased to note that Governor Pataki recently re-addressed the direct shipment of New York State wine. As part of his $99.8 billion budget proposal for 2004-2005, Governor Pataki proposed legislation that would allow out-of-state wineries to ship wine directly to New York residents, and in turn allow the direct-to-consumer shipments of New York wines to other states.

Under this proposal, adults 21 or older would be allowed to have up to two cases of wine per month delivered to their homes for personal use. Wineries in other states would be required to pay $125 for a license to ship into New York. They also would be required to pay all state excise and sales taxes and report the shipment quantities to the state. The New York Division of the Budget estimates that this measure would raise approximately $2 million in licensing fees and taxes in 2004-2005, although the number is expected to increase in following years.

In addition, the passage of this legislation would mean increased sales and revenue for New York State's wineries. New York is one of the largest wine-producing states with over 190 wineries and should benefit greatly from this expanded market.

As members of New York State's Congressional delegation representing our wine producing regions, we urge you to pass this important legislation as soon as possible. Consumers want New York wine. We can fill this demand and benefit our wine industry at the same time.

We look forward to working with you to grow the state economy. Thank you for your consideration of this important and timely matter.

Sincerely,

Timothy H. Bishop
Member of Congress

Louise M. Slaughter
Member of Congress

Hillary Rodham Clinton
Senator

Charles Schumer
Senator

Maurice Hinchey
Member of Congress

Sherwood Boehlert
Member of Congress

Jack Quinn
Member of Congress

Amo Houghton
Member of Congress