Thomas Hawk

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 โ€” an arbitrary exclusion from the free market, group members say.

โ€œFree markets transcend any individual retailers whether theyโ€™re publicly or privately held,โ€ said Travis Thomas, a spokesman who helped form Texans for Consumer Freedom. โ€œIt should be open to everybody to compete.โ€

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.ย 

โ€œThis does not mean that publicly traded companies are going to be selling spirits next to bread and candy,โ€ said Scott Dunaway, another spokesman with Texans for Consumer Freedom.ย 

Texas law also limits a single owner to five liquor stores. The problem with that rule, Thomas says, is a loophole that allows immediate family members to consolidate permits under one company.

The biggest liquor chains in Texas, Specโ€™s and Twin Liquors, own 169 and 70 stores, respectively.

โ€œThe legislation that was filed yesterday is all about leveling the playing field,โ€ Thomas said. There is a โ€œvery protectionist environmentโ€ around the Texas liquor market, he said.

Wal-Mart is waging the same battle in court, arguing that the ban on public corporations breaches consumer protection law.

Thomas said Texans for Consumer Freedom wants to change the law โ€œwithout protracted, expensive litigation.โ€

Disclosure: The Texas Association of Business and Wal-Mart are corporate sponsors of The Texas Tribune. A complete list of Tribune donors and sponsors can be viewed here.

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Ryan McCrimmon was a reporting intern for The Texas Tribune in 2015. A graduate of Northwestern University, Ryan previously covered national politics and foreign affairs for the Medill News Service in...