In its 2005 watershed opinion in Granholm v. Heald, the U.S. Supreme Court declared a state alcohol law that discriminates against out-of-state producers in favor of in-state producers to be a violation of the dormant commerce clause of the U.S. Constitution. Following the opinion, states have hastened to amend their respective alcohol statutes and liquor codes to conform to the Granholm decision.
In Pennsylvania, however, the commonwealth’s Liquor Code remains vulnerable to a Granholm attack, as it allows in-state brewers to distribute their products directly to retailers while requiring out-of-state brewers to first supply their products to licensed importing distributors, who in turn sell to retailers. In light of this conflict, this article focuses on the Granholm decision and its implications for the current system of beer distribution in the commonwealth. As part of the analysis I also discuss the successful efforts undertaken in other jurisdictions as well as recently proposed legislation by state representatives to help identify potential legislative solutions to the commonwealth’s current conundrum.
