The Supreme Court strikes down strict residency requirements for retailers of beer, wine and liquor in Tennessee, clearing the way for more retail options for consumers and, potentially, lower prices.
The Supreme Court on Wednesday struck down strict residency requirements for retailers of beer, wine and liquor in Tennessee, clearing the way for more retail options for consumers and, potentially, lower prices.
The Constitution’s so-called dormant commerce clause limits states' ability to discriminate against out-of-state business interests. “The provision at issue here expressly discriminates against nonresidents and has at best a highly attenuated relationship to public health or safety,” he said.Tennessee law had mandated that an individual reside in the state for at least two years in order to obtain a one-year sales license from the Tennessee Alcoholic Beverage Commission. To renew, the retailer must have lived in the state for at least 10 consecutive years.
The Tennessee Wine and Spirits Retailers Association, backed by 35 states, asked the justices for a review. They argue residency requirements are permissible under the 21st Amendment – which ended Prohibition -- and are essential to maintaining public safety, welfare and accountability in liquor markets.A federal district court sided with Total Wine and the Ketchums. The Court of Appeals affirmed that decision. And the state of Tennessee did not appeal the ruling.
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