Off the Kuff Rotating Header Image

Texans for Consumer Freedom

Why only Wal-Mart?

Wal-Mart stands to benefit from legislation that would change how retail liquor licenses are granted, but some potential competitors would not.

While two state lawmakers recently filed legislation that would allow retail giant Wal-Mart and other public corporations to sell hard liquor in Texas, the proposed bills maintain provisions that would prevent grocery chains H-E-B and Whole Foods from joining the competition.

The state’s alcoholic beverage code currently prohibits publicly traded companies, such as Wal-Mart, Costco and Target, from selling spirits here. But House Bill 1225 and Senate Bill 609 would eliminate that prohibition and remove a cap on the number of liquor stores one company can operate.

However, those bills would continue to ban operators with mixed-beverage permits or permits for on-site wine and beer consumption from enjoying the same access to the state’s lucrative liquor market.

H-E-B and Whole Foods, both based in Texas, currently hold both those permits and so would remain in the excluded category.

As of Tuesday, it was unclear whether the bills could be amended to include H-E-B and Whole Foods without opening the door to bottled liquor sales at other establishments – for example bars and restaurants – that operate with similar permits.

State Rep. Jason Isaac, R-Dripping Springs, introduced HB 1225 last month, but said he was unaware the bill’s language wouldn’t benefit H-E-B or Whole Foods. And Sen. Kelly Hancock, R-North Richland Hills, who filed companion legislation in the Senate, confirmed his office has started researching the issue.

“This concern has been brought to our attention by several retailers, and we are looking into ways to address this issue,” Hancock wrote in an email.

See here and here for the background. I’m okay with changing the law as it now stands, but not like this. Either open it up to all, or don’t bother. A supermarket shouldn’t have to choose between having an in-store cafe and being able to sell booze. This should not be that hard.

Wal-Mart booze update

The Lege gets involved.

One week after Wal-Mart sued the state for the right to sell hard liquor, two Texas lawmakers and a new coalition of businesses are taking the same fight to the Capitol.

Wal-Mart, Kroger and the Texas Association of Business on Wednesday helped birth a new nonprofit group calling itself Texans for Consumer Freedom to push for laws allowing publicly traded corporations like Wal-Mart and Kroger to own and operate liquor stores. Public companies are barred from the Texas booze market by the Texas Alcoholic Beverage Commission — an arbitrary exclusion from the free market, group members say.

“Free markets transcend any individual retailers whether they’re publicly or privately held,” said Travis Thomas, a spokesman who helped form Texans for Consumer Freedom. “It should be open to everybody to compete.”

Bills filed this week by state Sen. Kelly Hancock, R-North Richland Hills, and state Rep. Jason Isaac, R-Dripping Springs, would repeal parts of the alcohol code that exclude publicly traded corporations and limit the number of liquor stores a company can own.

If the bills pass, grocery stores that want to sell hard alcohol would still be required to do so in a separate building with its own entrance.

“This does not mean that publicly traded companies are going to be selling spirits next to bread and candy,” said Scott Dunaway, another spokesman with Texans for Consumer Freedom.

See here for the background. The bills in question are HB1225 and SB609. Texas law also limits a single owner to five liquor stores, though immediate family members can consolidate permits under a single company. Normally, I’d make fun of a big business-fronted group name like “Texans for Consumer Freedom”, but I don’t have any particular objection to the goal of updating this part of the alcohol code. It’s not a remnant of Prohibition, as Ross’ comment on my previous post notes, but it doesn’t make any sense as it stands now. We’ll see if they get any traction or if this will be a multi-session affair. In the meantime, RG Ratcliffe asks a darned good question.