It has been my impression that since 2010, out of state retailers were prohibited from shipping to Texas. I know Carrie and Randy told me they couldn’t ship to Texas because they had received their letter from TABC. I tried to get some wine from Cinderella around that time and was told no dice as well.
Out-of-State Retailers
Updated August 10, 2010
Siesta Village / Wine Country Gift Baskets Ruling
Background
A lawsuit was filed in U.S. District Court on April 3, 2006, challenging the constitutionality of certain provisions of the Alcoholic Beverage Code and seeking an injunction barring their enforcement. The lawsuit claimed that sections of the Code discriminate against interstate commerce, and violate the Interstate Commerce Clause, by authorizing in-state wine retailers to ship wine directly to Texas consumers while denying out-of-state wine retailers the same right.
District Court Ruling in January 2008 (Later Reversed on Appeal)
On January 14, 2008, a final order was issued in the twin cases of Siesta Village v. Steen and Wine Country Gift Baskets v. Steen. The judge declared certain aspects of the Alcoholic Beverage Code unconstitutional, enjoining the enforcement of those laws. Among other things, the judge ruled that out-of-state retailers are eligible to apply for, and receive, a Texas retailer permit authorizing them to sell and ship wine directly to Texas consumers.
The judge ruled that once receiving the permit, out-of-state retailers must also abide by relevant Texas laws, such as the one that mandates that all retailers purchase their product from a Texas wholesaler or Texas winery. In turn, they are then able to do whatever the law allows Texas retailers to do, such as shipping wine directly to consumers in Texas.
Following the district court ruling, TABC made an Out of State Wine Only Package Store Permit available to out of state retailers. However, no permits were ever issued.
Reversed on Appeal in January 2010 (But Mandate not Issued)
On January 26, 2010, a three member panel of the 5th Circuit Court of Appeals reversed the district court’s ruling that invalidated state provisions that only retailers with a physical presence in Texas could deliver to consumers in Texas. In other words, the appeals court ruled that the Texas laws that allow in-state retailers to deliver, but NOT out-of-state retailers, is not a violation of the Interstate Commerce Clause of the US Constitution. The State of Texas CAN prohibit out-of-state retailers from shipping wine to Texas consumers. TABC is not required to offer a permit to out-of-state retailers.
The appeals court said that the Interstate Commerce Clause and the Granholm decision intend to prevent discrimination against out of state producers and products, which means states can’t discriminate against out-of-state wineries. However, this does not protect out-of-state retailers.
As a result of the appellate court’s ruling, Texas laws prohibiting out-of-state wine retailers from shipping wine directly to Texas consumers violate neither the Commerce Clause of the U.S. Constitution nor the Supreme Court’s decision in Granholm.