North Dakota’s SB 2324 has been signed into law by Governor Jack Dalrymple and will go into effect 8/1/2015. This bill results in reduced penalties for carrier violations in regards to direct shipments of wine to consumers within the state. Under this law, fee penalties will take the place of the misdemeanor and felony charges that the laws currently dictate.
The new law requires the North Dakota Tax Commissioner to notify carriers with a cease and desist order if they are an active party in processing direct wine shipments for wineries not licensed to direct ship in North Dakota. This order comes with a $100 fine per shipment, and is doubled after the second cease and desist order is sent. The carrier is expected to notify the winery after the first cease and desist order in the hopes that the winery will take action and obtain a North Dakota Direct Shipper License.
This bill could mean good things for direct shippers, as more common carriers may be willing to apply for a North Dakota Alcohol Carrier License Application. Currently, UPS is the only carrier shipping to North Dakota. As we reported on previously, FedEx initially opted out of obtaining an alcohol carrier license and, therefore, has not shipped wine to North Dakota residents since October of 2013. With these latest updates, FedEx is evaluating the new law to determine whether they’ll change their shipping policy.