NEW ORLEANS (AP) — A federal appeals court says a Texas law that keeps Walmart from selling packaged liquor in the state does not violate the Constitution.

Texas allows privately held businesses — but not publicly held corporations such as Walmart — to own "package stores" where hard liquor is sold.

Thursday's ruling by the 5th U.S. Circuit Court of Appeals in New Orleans says a federal judge erred in ruling that the Texas restriction is discriminatory and violates constitutionally protected interstate commerce.

The court sent the case back to the federal district court in Texas for further consideration.

Walmart spokeswoman Anne Hatfield says the company is disappointed with the ruling and is considering its options.