OUT-OF-STATE RETAILERS CHALLENGE THE TABC

Out-of-state retailers are fighting for direct delivery in Texas. The Texas Alcoholic Beverage Commission put out a cease-and-desist order last week threatening to prosecute out-of-state retailers that “illegally” ship wine across the Texas state line. In May 2005, Texas passed SB 877 that makes it legal for wineries to ship wine directly to in-state consumers; however, the law prohibits out-of-state retailers from doing the same. Now some out-of-state retailers that want to create a national wine market are suing the TABC over what they call an unconstitutional law.