APPEALS COURT IN FAVOR OF VA WINE
A federal appeals court ruling just might bring Virginia wine back into the state-run ABC stores. Laws allowing only Virginia wine to be sold in state-run liquor stores and restricting the amount of alcohol beverages consumers can bring into the state for their personal consumption have been judged constitutional by a three-judge panel of the 4th U.S. Circuit Court of Appeals. According to local papers, the ABC board will choose whether to restock Virginia wine after reviewing the panel’s decision.
The appeals court also overturned a lower court’s ruling that struck down a state law that allows consumers to carry no more than 1 gallon of alcoholic beverages into Virginia for personal consumption. The lower court ruled that the law discriminates against interstate commerce, but the appeals panel disagreed.
A QUICK HISTORY LESSON. Since legislation was passed in the mid-80s, Virginia wine was the only wine ABC stores were allowed to sell. However, District Judge Richard William’s overturned the ruling in April 2005, judging that the state law gave illegal preference to Virginia wineries over out-of-state wineries. The General Assembly also passed legislation that requires wineries to forgo their previous right to self-distribute to retail stores and restaurants, and use wholesalers instead.
While it appears that the state will continue to require the use of wholesalers, in-state wine might soon return to ABC stores. In yesterday’s ruling, the court determined that the state law does not violate the Constitution’s Commerce Clause because it doesn’t apply to state-operated businesses, such as ABC stores.
The appeals court also overturned a lower court’s ruling that struck down a state law that allows consumers to carry no more than 1 gallon of alcoholic beverages into Virginia for personal consumption. The lower court ruled that the law discriminates against interstate commerce, but the appeals panel disagreed.
A QUICK HISTORY LESSON. Since legislation was passed in the mid-80s, Virginia wine was the only wine ABC stores were allowed to sell. However, District Judge Richard William’s overturned the ruling in April 2005, judging that the state law gave illegal preference to Virginia wineries over out-of-state wineries. The General Assembly also passed legislation that requires wineries to forgo their previous right to self-distribute to retail stores and restaurants, and use wholesalers instead.
While it appears that the state will continue to require the use of wholesalers, in-state wine might soon return to ABC stores. In yesterday’s ruling, the court determined that the state law does not violate the Constitution’s Commerce Clause because it doesn’t apply to state-operated businesses, such as ABC stores.
posted at 2:13 PM
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