It’s time to update the distilled spirits laws in Texas
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 The Texas Alcoholic Beverage Code is filled with outdated and contradictory provisions that serve no purpose other than restricting competition and protecting entrenched special interests.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trade regulations to antiquated “blue laws’’ banning the retail sale of spirits on Sundays, Texas laws remain severely outdated and in need of reform.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 The Texas Legislature repealed most blue laws more than 30 years ago.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.