Federal Judge Kills Direct Wine Sales Law
From The Journal Record ~ A federal court has issued the final death stroke to an Oklahoma law designed to benefit the state's growing wine industry. Judge Stephen Friot ruled in November that Oklahoma's law allowing in-state wineries to sell directly to restaurants and retailers is unconstitutional.
In 2000, Oklahoma voters had approved the law in an effort to boost the state's new wine industry by providing easier access to market for their products. All other manufacturers of alcoholic beverages must use a wholesaler to distribute their products in Oklahoma.
A group of wholesalers, concerned that the exception to the law granted to in-state wineries jeopardizes Oklahoma's three-tiered alcohol distribution system, had challenged the new law in federal court, naming the Oklahoma Alcoholic Beverage Laws Enforcement Commission and its officials as defendants in the lawsuit.
Because out-of-state wineries are still required to sell their products in Oklahoma through a wholesale distributor, the law allowing in-state wineries to bypass the wholesaler violates interstate commerce law, Judge Friot ruled. To meet constitutional muster, Oklahoma would have to change the law to either allow out-of-state wineries the ability to direct-ship in Oklahoma, or to revoke the privilege to direct-ship that had been extended to in-state wineries.
In 2000, Oklahoma voters had approved the law in an effort to boost the state's new wine industry by providing easier access to market for their products. All other manufacturers of alcoholic beverages must use a wholesaler to distribute their products in Oklahoma.
A group of wholesalers, concerned that the exception to the law granted to in-state wineries jeopardizes Oklahoma's three-tiered alcohol distribution system, had challenged the new law in federal court, naming the Oklahoma Alcoholic Beverage Laws Enforcement Commission and its officials as defendants in the lawsuit.
Because out-of-state wineries are still required to sell their products in Oklahoma through a wholesale distributor, the law allowing in-state wineries to bypass the wholesaler violates interstate commerce law, Judge Friot ruled. To meet constitutional muster, Oklahoma would have to change the law to either allow out-of-state wineries the ability to direct-ship in Oklahoma, or to revoke the privilege to direct-ship that had been extended to in-state wineries.
Labels: Wine Sales
posted by Mike McCarville @ 2:14 PM
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