AUSTIN - A federal judge has opened the door for Walmart and other corporate retailers to begin selling liquor in the Lone Star State.
Walmart brought the suit three years ago against the Texas Alcoholic Beverage Commission, claiming the state’s “irrational” law kept the mega-retailer from selling distilled spirits.
On March 20, U.S. District Judge Robert Pitman found that the state’s public corporation ban on selling liquor is inconsistent with the dormant Commerce
Clause of the U.S. Constitution, and that Section 22.05 of the Texas Alcoholic Beverage Code, the consanguinity exception, is inconsistent with the Equal Protection Clause of the U.S. Constitution.
Wal-Mart and its subsidiaries, Sam’s East and Quality Licensing, filed their suit, which also names TABC Commissioners Jose Cuevas Jr., Steven Weinberg and Ida Clement Steen as defendants, on Feb. 12, 2015, in the U.S. District Court for the Western District of Texas, Austin Division.
Wal-Mart maintained it brought the action because its Texas customers want added convenience when shopping for adult beverages.
The current law, which Wal-Mart thinks contradicts the state’s belief in free enterprise, prohibits publicly owned businesses from offering spirits to its customers.
The TABC had argued that Wal-Mart was trying to subvert the Texas legislature by filing a suit alleging constitutional violations.
Wal-Mart, a publicly traded corporation, is the largest retailer of wine and beer in Texas. Each of its Walmart and Sam’s Club stores that sell wine and beer do so only after first obtaining a permit from the TABC.
Wal-Mart argued that Texas law irrationally excludes publicly traded hotel corporations from the prohibition against publicly traded corporations, and any publicly traded hotel with a hotel store may sell distilled spirits and hold package store permits irrespective of the public corporation ban.
The mega-retailer, which is the largest private employer in the U.S. and Texas, is licensed to sell liquor in 25 other states.
Wal-Mart is represented in part by attorneys Neal Manne, Alex Kaplan and Chanler Langham of the Houston law firm Susman Godfrey.
Attorney General Ken Paxton represents TABC.
Case No. 1:15-cv-00134-RP