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Article: Regulating wine by mail: what really motivates states to change their alcohol distribution laws?(Commerce)
- Article from:
- Regulation
- Article date:
- September 22, 2004
- Author:
CopyrightCOPYRIGHT 2004 Cato Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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IN 1986, CALIFORNIA PASSED LEGISLATION prohibiting the direct shipment of wine to its residents from another state unless the originating state allows California wineries to ship directly to that state's residents. This "reciprocity" restriction marked a change from California's previously unfettered direct shipment regime.
The legislation's obvious intent was to break down other states' barriers to the direct shipment of California wine. Prior to 1986, direct shipment was a misdemeanor crime in 47 states; only California, Alaska, and Rhode Island allowed the practice. In effect, California attempted to leverage its large wine-consuming population to open access ...