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Texas Package Stores Association

You may finally be able to buy booze at Walmart and Costco now

I agree with this.

A protectionist Texas law that has kept Walmart, Costco and other giant retailers from selling hard liquor was found unconstitutional by a federal judge this week, prompting cheers from free-market advocates — and vows of a quick appeal from one of the parties on the losing side.

The Texas law that was struck down — unique in the United States — forbids publicly traded businesses from owning liquor stores while allowing family-owned companies to grow into giant chains without fear of competition from large national or international corporations.

If the late Tuesday ruling by U.S. District Judge Robert Pitman survives appeals, Texas consumers — like those in at least 31 other states and many foreign countries — will be able to buy vodka, tequila and bourbon from Walmart-owned stores and from other multinational retailer outlets.

“For decades, these laws have stood in stark contrast to Texas values,” said Travis Thomas, spokesman for Texans for Consumer Freedom, which advocates for free-market reforms in Texas. “The State of Texas should not pick winners and losers in private industry.”

[…]

Experts said an appeal could take more than a year to play out in the federal court system — longer if it were to wind up in the U.S. Supreme Court. In the meantime, Texans can expect the status quo in liquor retailing. If publicly traded companies are allowed eventually to sell distilled spirits, existing law would still require the companies to build separate facilities, though they can be adjacent to existing stores.

See here and here for the background. The Texas Package Stores Association, which represents the state’s liquor store owners, has vowed to appeal, and I’d expect this to go the distance. As you know, I’m no fan of Walmart, but on this issue I think they’re in the right. Now if we could only bring a similar sense of sanity to the state’s ridiculous beer laws, we’d really have something.

Costco joins in on liquor sales

Not just Wal-Mart any more.

Wholesale giant Costco has joined Wal-Mart and other retailers in the fight to let public corporations sell liquor in Texas.

Texans for Consumer Freedom, a group formed last month to lobby Texas lawmakers to loosen restrictions on the state liquor market, announced Wednesday that Costco Wholesale Corporation would lend its name to the effort.

“We are glad to be joined by Costco in our efforts to level the playing field for the retail sale of spirits so Texas consumers receive the choice, convenience and lower prices competition provides,” Travis Thomas, a spokesman for the group, said in a statement.

[…]

“Costco proudly stands with Texans for Consumer Freedom in its efforts to eliminate the unusual Texas spirits laws that artificially restrict competition and prevent us from directly serving our over 1.3 million Texas members,” Executive Vice President Dennis Zook said in a statement.

See here, here, and here for the background. Kroger and the Texas Association of Business were already in with Wal-Mart, and the Texas Package Stores Association – basically, the existing liquor stores – stands in opposition. My impression is that the bills in question will have a decent chance of passing, but we’ll see.

Don’t plan that Sunday trip to Liquor Mart just yet

The debate over allowing Sunday liquor sales continues on.

A leader of the Texas Package Stores Association told the Senate Business and Commerce Committee on Tuesday there’s been no great demand from customers that liquor stores open on Sundays. Plus, opening on Sunday would likely spread the same sales over seven days instead of six, said association president Greg Wonsmos, who’s also president of Centennial Fine Wine and Spirits.

Some independent store owners and the Distilled Spirits Council of the United States back the bill by Sen. Rodney Ellis, D-Houston, saying it’s a matter of customer convenience and could provide extra tax revenue for the state.

Estimates range from $7.4 million to $12 million in increased state revenue per biennium. Former state chief revenue estimator Billy Hamilton said when blue laws preventing Sunday sales of certain items in stores were lifted in 1985, there was also much debate about the effects.

“I can tell you conclusively that is has both added to the convenience of shoppers and it has produced money for the state of Texas,” Hamilton said, adding that a ban on Sunday liquor store sales is one of the last remnants of the Texas blue laws.

Ellis’ bill is SB595; it did not get a vote in committee. Apparently, Comptroller Combs disagrees with Hamilton – she has announced that allowing Sunday liquor sales would not raise “no significant revenue”. I don’t know that I agree with that, but I also don’t think it really matters. I’ll say again, I see no reason to not allow liquor sales on Sunday. Whether it gets through the Lege, that’s a different story.

The Sunday liquor sales debate

As we know, one of the Legislative Budget Board recommendations for generating revenue is for the state to allow liquor sales on Sunday. The Statesman takes a look at the debate this proposal has generated.

Legislation to allow Sunday liquor sales died in 2009, but the issue gained momentum this session when the Legislative Budget Board included Sunday liquor sales on a list of revenue-raising options for the Legislature to consider.

It’s an issue that splits the distilled liquor industry.

Distillers are pushing the legislation because they think Sunday sales will increase the demand for liquor. But the Texas Package Stores Association — there are almost 2,500 stores in Texas — opposes it.

David Jabour , the president of Twin Liquors, which has 63 locations in Central Texas, said the legislation would be a burden to store owners.

He argued that opening on Sunday would just spread six days of sales over seven days and increase a store’s overhead.

“It doesn’t pay for itself,” Jabour said. “It ends up costing more in labor and overhead.”

[John Roenigk, co-owner of the Austin Wine Merchant on West Sixth Street,] disagreed.

He said Sunday is second only to Saturday as a popular shopping day. He said he wants a level playing field with his competitors — grocery stores, mainly — who are selling wine on Sundays to his customers.

“The rest of the retail world has changed around us,” Roenigk said. “For the life of me, I don’t know why our industry opposes it.”

Allowing Sunday sales is a no-brainer to me. Let’s be honest, the basis of this restriction is Christian morality – a very specific kind of Christian morality; I can attest that Catholicism has no particular injunction against alcohol. I say that has no place in the law. Individual stores may of course choose to remain closed on Sundays as they see fit, but as Roenigk said earlier in the story, they should have that choice.

The amount of tax revenue at stake here is relatively tiny, which opponents of Sunday sales have used to misdirect the debate a bit.

The budget board staff estimated that allowing Sunday sales would increase liquor consumption by almost 3 percent. That could raise an additional $7.4 million in taxes over those two years, a number that the comptroller has not verified.

Based on the budget board’s numbers, the store owners association estimates that on average a store would only sell an additional 10 bottles of liquor.

“That’s not generating much, even according to their numbers,” Jabour said.

Suzii Paynter with the Texas Baptist Christian Life Commission agrees.

When Texas lawmakers face a budget shortfall as high as $27 billion, Paynter said, $7.4 million won’t go far.

The real money, she said, would be in raising taxes on all alcohol, including beer.

She said the state’s excise tax rate on beer has remained the same since 1984. In 2006, the last time the Legislature considered — and rejected — raising alcohol taxes, some plans to increase taxes on all alcohol would have raised $800 million a year. The tax on a can of beer would have increased to 22 cents from 1.2 cents.

Mike McKinney, a lobbyist with Wholesale Beer Distributors of Texas, said that kind of increase in beer taxes would cripple the industry.

Let me pause for a moment to call BS on Mike McKinney. People aren’t going to stop drinking beer because a six-pack costs $1.20 more. I’m sure sales would drop a little, but “cripple the industry”? Please.

As for Paynter, why is this an either-or situation? I say go ahead and do both – raise alcohol taxes and allow Sunday sales. No, I don’t expect the Lege to seriously consider that, I’m just saying that an argument for one is not an argument against the other. Allowing Sunday sales is an easy one for me, and it should be something the Lege is willing to do. I don’t see the argument against it.