Yes, Virginia. There is a Wino Santa Claus

[zenda2]

State alcohol laws shaken
Ban on wine, beer shipments unconstitutional, judge rules

BY TOM CAMPBELL
TIMES-DISPATCH STAFF WRITER Mar 31, 2002



A federal judge has declared unconstitutional Virginia's ban on direct shipments of wine and beer from other states to Virginia residents.

U.S. District Judge Richard L. Williams on Friday also declared unconstitutional the section of law authorizing operation of Alcoholic Beverage Control stores, which sell only Virginia wines.

Generally, the opinion finds that state laws improperly give an advantage to Virginia producers of alcoholic beverages over out-of-state producers. State law limits importation of beer to those licensed to sell it. Wine can be shipped from another state only to someone with a wholesale wine license.

What the opinion means for the operation of ABC stores and for the alcoholic beverage industry was not clear yesterday, but the state and wholesalers could seek a delay of Williams' order while the case is appealed.

The ruling decided a lawsuit started in 1999 as a challenge to the state's ban on direct shipment of wine from other states. Later in the case, Williams expanded its scope to look at beer and liquor as well.

The opinion accompanies, but does not specifically explain, an order that declares several key sections of Virginia alcoholic beverage laws unconstitutional. Williams also ordered the state to stop enforcing those sections. The order was entered Friday with no mention of any delay.

Those now-invalid sections include the one granting the ABC Board the power to "buy, import and sell alcoholic beverages" and the authority to "establish, maintain and operate government stores for the sale of alcoholic beverages."

Other sections struck down by Williams give the ABC Board the authority to issue a variety of beer and wine wholesale and retail licenses. He also struck down the sections making the illegal sale, purchase or importation ofalcoholic beverages crimes under Virginia law.

Matthew S. Hale, lawyer for the plaintiffs, said the ruling is based on the judge's finding that the Virginia General Assembly has passed laws that improperly protect in-state alcoholic beverage interests against out-of-state interests. Williams has ruled that violates the Commerce Clause of the U.S. Constitution.

The judge "found that the preferences that the Virginia state legislature has set up for Virginia wineries allowing them to use the direct shipment method of selling their products should also be afforded to out-of-state wineries," Hale said. "By having an in-state preference, you're discriminating against interstate commerce."

Hale and Daniel R. Ortiz, a University of Virginia law professor, filed the lawsuit against the ABC Board on behalf of two Virginia residents who wanted to buy wine by mail order or Internet and three out-of-state wineries that want to sell it.

The case was assigned to Williams, but the task of hearing evidence went to Magistrate Judge Dennis W. Dohnal.

Last July, Dohnal filed a report with recommendations for Williams. He found that the laws barring direct shipment of beer and wine to Virginia consumers from other states are unconstitutional.

But Dohnal recommended that Williams give the assembly time to change the laws before he issued a final order.

Williams' ruling makes some amendments to Dohnal's opinion based on objections raised by both sides in the case. It goes well beyond the original scope of the lawsuit.

Rep. S. Vance Wilkins Jr., R-Amherst and speaker of the House of Delegates, said the assembly will not be able to deal with the situation in its reconvened session on April 17. It would take a two-thirds vote by both the House and the Senate or action by the governor to call the legislature into special session, he said.

Del. M. Kirkland Cox, R-Colonial Heights, a senior member of the House General Laws Committee, said the assembly has long talked about privatizing the ABC store system.


--------------------------------------------------------------------------------


http://timesdispatch.com/news/vametro/MGBHAKEBGZC.html