State legislatures are known to do dumb things, but this one almost tops the cake: An Iowa statute deems that "only a resident of this state" is deemed to have moral character good enough to be issued a Class A manufacturing permit.
You know what has happened: An Oregon producer of 300 cases of wine has sued, saying it wants to distribute its wine directly to Iowa retailers, restaurants and bars. Pheasant Court Winery of Philomath, Ore., isn't a resident of Iowa and therefore must use an Iowa wholesaler to peddle its wine, the lawsuit says. It alleges there isn't any other available that will let it distribute wine directly to Iowa retailers, restaurants and bars.
Self-distribution gives the company greater control over the costs and delivery schedule and ensures consumers can get its products even if no wholesalers are willing to carry its products.
Naturally, this gives in-state wineries an advantage over producers in other states, discriminates against out-of-state entities and shields Iowa wineries from interstate competition.
Pheasant Court is seeking an injunction preventing the state from enforcing the resident restrictions and a judgment declaring unconsitutional the declaration that only Iowans are moral enough to sell to Iowans.