Sen. Bill Stanley Challenges Constitutionality of Key Virginia Liquor Law

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State Senator Bill Stanley, R-Franklin County, has launched a legal challenge against a key part of Virginia’s long-standing liquor laws, arguing that it unfairly disadvantages small businesses while granting special privileges to larger establishments like casinos. The lawsuit specifically targets the "food-to-alcohol ratio" requirement, a rule that mandates restaurants serving alcohol must derive a certain percentage of their revenue from food sales.

Under current Virginia law, restaurants must ensure that at least 45% of their revenue comes from food sales in order to maintain their license to serve alcohol. Stanley’s lawsuit, filed on behalf of Fish and Slips, a restaurant in Portsmouth, claims that this requirement is outdated and unconstitutional, particularly as casinos are exempt from this rule and are allowed to serve alcohol without adhering to the same restrictions.

"Virginia's liquor laws have evolved into special laws that no longer apply equally to all businesses," Stanley stated. He contends that this creates an uneven playing field and violates the state constitution's guarantee of equal protection under the law.

The roots of this legal battle stretch back to Virginia's Prohibition-era policies, which sought to strictly control alcohol sales to prevent the resurgence of saloons. The food-to-alcohol ratio was originally intended to ensure that establishments focused more on dining than on drinking, a safeguard against the return of saloon-like environments. However, Stanley argues that the law has been amended so many times over the decades that it now serves to unfairly target smaller businesses.

This isn't the first time Stanley has taken on powerful interests in the state. Known for his colorful legal career, Stanley previously gained national attention for his involvement in high-profile cases, including a lawsuit representing Paula Jones in her case against then-President Bill Clinton. More recently, Stanley has been involved in a legal challenge against the state's ban on electronic skill games, another case that pits him against Virginia's burgeoning casino industry.

Opponents of Stanley's lawsuit argue that eliminating the food-to-alcohol ratio could lead to a proliferation of bars and undermine the family-friendly atmosphere that many communities seek to maintain. However, supporters, including policy analysts like Jarrett Dieterle, describe the rule as a "legal zombie" that persists due to pressure from well-established restaurant groups in Richmond.

The lawsuit is still in its early stages, but it has already sparked significant debate about the fairness and relevance of Virginia's liquor laws in the modern era. As the case moves forward, it could potentially reshape how alcohol is regulated in the state, with implications for both small businesses and larger establishments like casinos.

Stanley's legal challenge will ultimately be decided in the courts, but it has already reignited a broader discussion about the need to modernize state regulations that many view as relics of a bygone era.