Senate Committee Passes Wine Distribution Bills

The Tennessee State and Local Government Committee passed two bills Tuesday in an effort to help local wineries.

Senator Paul Bailey sponsored Senate Bill 1483 allowing wineries producing under 10,000 gallons or less per year to transport their product to adjacent counties.

“The story behind this is there’s some small farm wineries in my district, as well as in another district that’s next to the 15th, that have small wineries that are producing less than 10,000 gallons,” Bailey said. “They’re not able to distribute or self-distribute into the counties that basically are adjoining to the counties that they are in. They’re just requesting that they be able to do so.”

Senator Ken Yager proposed a similar bill shortly after Bailey. Senate Bill 1353 would accommodate larger wineries producing up to 50,000 gallons each year, allowing them to transport product to satellite facilities.

“It would also stipulate that if the facility pays taxes on more than 50,000 a year, the winery would still obtain its wine through a wholesaler,” Yager said. “The wholesaler and the owner certainly are free to negotiate whatever contract they may wish to do.”

Yager said the bills are similar enough to where his would likely override Bailey’s proposal.

“The second one that passes would really essentially amend or change the one that had previously passed,” Yager said. “As I think Chairman Bailey indicated, I think there was a constituent that he had an interest in making sure his bill passed. I’m confident that probably he and I will discuss this before it’s calendared and on the Senate floor.”

The committee ultimately voted to pass both Bailey’s and Yager’s bills unanimously.