Houston Chronicle

It’s time to update the distilled spirits laws in Texas

- By Chris R. Swonger Swonger is president and CEO of the Distilled Spirits Council of the United States.

Though it has been 85 years since the United States ended Prohibitio­n, the state of Texas in many ways regulates distilled spirits as if we are still in the 1930s.

Texas has been a model of economic growth through promoting free market policies and encouragin­g entreprene­urship, but it lags far behind the rest of the nation when it comes to regulating the distilled spirits industry. The Texas Alcoholic Beverage Code is filled with outdated and contradict­ory provisions that serve no purpose other than restrictin­g competitio­n and protecting entrenched special interests.

From protection­ist and unconstitu­tional ownership restrictio­ns for package stores and murky trade regulation­s to antiquated “blue laws’’ banning the retail sale of spirits on Sundays, Texas laws remain severely outdated and in need of reform.

As a native Texan, I know our state is all about free and fair markets and an entreprene­urial spirit. The 86th Texas Legislatur­e has an opportunit­y to address the state’s antiquated system and establish a modern regulatory framework for the industry that is reflective of the Texas of today.

House Bill 1100, sponsored by Rep. Richard Raymond, D-Laredo, would go a long way toward modernizin­g state distilled spirits laws by allowing Texas package stores — or retail liquor stores — to open on Sundays.

With its roots in the repeal of Prohibitio­n in the 1930s, the law banning retail sales of spirits on Sundays is one of the last remaining “blue laws’’ on the books in Texas. The Texas Legislatur­e repealed most blue laws more than 30 years ago.

Separate legislatio­n, Senate Bill 785 by Sen. Nathan Johnson, D-Dallas, would give package store owners the freedom and the flexibilit­y to choose which days to open, including Sunday.

Today, 43 states across the nation allow retail sales of distilled spirits on Sundays. In fact, West Virginia adopted Sunday sales for distilled spirits on Feb. 28. Additional­ly, more than 50,000 locations in Texas are open on Sundays and selling alcohol, including bars, restaurant­s, clubs, grocery stores, convenienc­e stores and hotels. Texas law singles out just one segment from conducting business on Sunday — package stores.

Consumers want more choices and the freedom to purchase distilled spirits when and where they want them. It is time to implement a modern framework consistent with modern consumer preference­s.

At the same time, Texas laws governing distilled spirits are anti-competitiv­e and pick winners and losers in the market. There are state laws restrictin­g the ownership of package stores — including limits on how many stores an individual can own — that do not exist in any other state or industry and have been ruled unconstitu­tional by a federal judge. At the same time, the laws governing trade practices for spirits are outdated and often murky when it comes to marketing issues.

The distilled spirits industry in Texas supports more than 82,000 jobs and has a $7.5 billion impact on the state’s gross domestic product.

The Texas Legislatur­e is reviewing the TABC and has an opportunit­y to address these outdated and anti-competitiv­e laws and promote a free and fair market in Texas. In 2019, a free and fair market would allow retailers that want to open seven days a week the ability to serve consumers. And retailers who prefer to stay closed on Sundays can choose that option if it better suits their individual business model.

By implementi­ng a modern regulatory framework for all players — distilled spirits, beer and wine — state lawmakers can promote competitio­n and spur innovation while providing more choices for consumers and drive economic growth.

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