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8:21 am CST - November 10, 2010

Posted under The Scoop

An End to Out-of-State Beer?


Texas Insider Report: AUSTIN, TEXAS – The United States has seen a massive increase in the number of microbreweries in the last decade.  Many bars now pride themselves on offering a wide variety of on-tap beers from smaller producers and stocking bottles from around the country. 

But that could soon come to a grinding halt pending the decision of H.R. 5034, the Comprehensive Alcohol Regulatory Effectiveness Act of 2010 (the “CARE” Act of 2010), in the U.S. House of Representatives, says Michelle Minton, director of the insurance studies project at the Competitive Enterprise Institute.

The CARE Act is a response to a Supreme Court decision, Granholm v. Heald, in which the Court ruled that states could not pass laws that discriminate between in-state and out-of-state wineries in violation of the Commerce Clause of the Constitution.  While the ruling was specifically about wine, it should apply to all types of alcohol, says Minton.

If the CARE Act or a similar bill passes:

  • It could potentially bar out-of-state beers, ensuring a captive market for home-state breweries.
  • Not only would this eliminate certain beers from the market, but also it would likely increase the price of those out-of-state brews that could make it across state lines, as they would likely pay a fee for the privilege of competing with in-state breweries, vineyards or distilleries.
  • It would also mean an end to online sales of alcohol.

The biggest supporter for the CARE Act comes from beer distributors and individuals who act as middlemen between producers of alcohol, says Minton.

Source: Michelle Minton, “An End to Out-of-State Beer?” OpenMarket.org, November 8, 2010.

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3 Comments

Byron Sibbet
10:09 am CST
November 10, 2010


It’s usually the most strient capitalist that try to destroy the free market. As Pogo once said, “We have met the enemy, and he is us.”

Christian Archer
9:08 am CST
November 10, 2010


“The biggest supporter for the CARE Act comes from beer distributors and individuals who act as middlemen between producers of alcohol, says Minton.” Really???? I’m thinking the U.S. government is the biggest supporter because to regulate something means more tax revenue because the article said, “they would likely pay a fee for the privilege of competing with in-state breweries.” We have an oppressively, power-hungary government.

BTW, I’m not a beer drinker. The stuff smells horrible and nauseating to me. I don’t want to say on this site what it really smells like to me.

Ed in North Texas
7:55 am CST
November 10, 2010


Byron wrote: “It’s usually the most strient (sic) capitalist that try to destroy the free market.”

Why would anyone think a group of businesses seeking corporate welfare are “strident* capitalists”? And if these were, indeed, “strident capitalists” then we should surely have known about this as their stridentcy would have been noticed far and wide. Is this what “capitalism” has been reduced to – goodies for some corporations/businesses passed out by the government? Or is it just the definition of Democrats and graduates of the “education system” more recent than I?

* I’m guessing that this is the term intended originally.

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