The Supreme Court struck down the Tennessee 2-Year residency requirement applicable to retail liquor store license applicants. They held that it violates the Commerce Clause and is not saved by the 21st Amendment. The ruling states that “protectionism” is not a legitimate state interest to allow skirting the nondiscrimination requirement of the Commerce Clause. And so – we now know that this court does not consider the 21st Amendment enough to protect all state liquor laws. This means that the Kansas residency law is at risk and we will have to be prepared for action during the 2020 Legislative Session. Additionally, it could open the door to challenges by out of state retailers who want to be able to ship into states that allow in state retailers to ship product.
The good news is that the decision cites examples of other kinds of state laws that can be used for the purposes of meaningful liquor regulation without discrimination, such as limiting both the number of retail licenses and the amount of alcohol that may be sold to an individual, mandating more extensive training for managers and employees, or monitoring retailer practices and taking action against those who violate the law.
