“Court uncorks wine shipping”
By Hope Yen
Associated Press Writer
WASHINGTON -- Wine lovers may buy directly from out-of-state vineyards, the Supreme Court ruled Monday, striking down laws banning a practice that has flourished because of the Internet and growing popularity of winery tours.
The 5-4 decision overturns laws in New York and Michigan, which supports said were aimed at protecting wineries and limiting underage drinkers from purchasing wine without showing proof of age. In all, 24 states, including Oklahoma, have laws barring interstate shipments.
The court said the state bans are discriminatory and anticompetitive.
"States have broad power to regulate liquor," Justice Anthony Kennedy wrote for the majority. "This power, however, does not allow states to ban, or severely limit, the direct shipment of out-of-state wine while simultaneously authorizing direct shipment by in-state producers."
"If a state chooses to allow direct shipments of wine, it must do so on evenhanded terms," he wrote in an opinion joined by Justices Antonin Scalia, David H. Souter, Ruth Bader Ginsburg, and Stephen G. Breyer.
The ruling means that legislatures in the 24 states barring out-of-state shipments will have to review their laws to make sure in-state and out-of-state wineries are treated equally. As a result, states could choose to allow wineries to sell to consumers directly but could also bar all wineries from doing so.
While wineries have proliferated, there also has been consolidation. Smaller wineries say they can't compete with huge companies unless they can sell directly to customers over the Internet or by allowing visitors to their wineries to ship bottles home.
The Supreme Court case centered on the 21st Amendment, which ended Prohibition in 1933 and granted states authority to regulate alcohol sales. Nearly half the states subsequently passed laws requiring outside wineries to sell their products through licensed wholesalers within the state, allowing state governments to collect millions in alcohol taxes. But the Constitution also prohibits states from passing laws that discriminate against out-of-state businesses.
In a dissent, Justice Clarence Thomas argued the ruling needlessly overturns long-established regulations aimed partly at protecting minors. State regulators under the 21st Amendment have clear authority to regulate alcohol as they see fit, he wrote.
"The court does this nation no service by ignoring the textual commands of the Constitution and acts of Congress," Thomas wrote. He was joined by Chief Justice William J. Rehnquist and Justices Sandra Day O'Connor and John Paul Stevens.
While the ruling only involves wine sales, industry groups expect that it soon will apply to beer and other alcoholic beverages. The Washington-based Institute for Justice says the 24 states that ban direct shipments from out-of-state wineries are Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Montana, Ohio, Oklahoma, Pennsylvania, New Jersey, New York, South Dakota, Tennessee, Utah, and Vermont.
“Sooner wineries may ship to other states”
Attorney General Drew Edmondson said Tuesday's Supreme Court ruling does not immediately upend any Oklahoma statutes because the state does not discriminate between in-state and out-of-state shipping.
But Oklahoma wineries will be able immediately to begin shipping to states, such as New York and Michigan, that have laws allowing in-state wineries to ship to consumers but did not allow out-of-state wineries to do the same.
Edmondson said the ruling likely will open Oklahoma laws up to scrutiny.
"Our statutes may be challenged," he said.
When asked whether Oklahoma wineries could begin shipping to consumers in New York today, his response was: "My off-the-cuff answer would be yes, but I haven't read the decision yet. I don't know if there will be a petition of rehearing filed.
"I would urge any winery to call their lawyer and consult with them before they start putting cases in the UPS box."
“New guidelines needed”
Terry Lewis, owner of Indian Creek Village Winery in Ringwood, said the state will have to set up new guidelines.
"It basically allows us to ship anywhere in the world except within Oklahoma, that is insane," he said.
"It is a good deal for the state if we can ship anywhere because it increases sales, and anything that increases our sales benefits us but also helps the state with increased tax collections. We have a growing agri-tourism industry in the state, and tourists want us to be able to ship them wine at home, but we can't do it because state law prohibits it.
"It is an absolute paradox that we can get wine from around the world but not from here in Oklahoma."
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