#TXLEGE: Are TABC/Booze Lobby in TROUBLE?!?

"He has shown you, O man, what is good;
And what does the Lord require of you
But to do justly,
To love mercy,
And to walk humbly with your God?"
Micah 6:8

Strike One:

The state’s largest liquor chain — Spec’s Wine, Spirits and Finer Foods — is suing the Texas Alcohol Beverage Commission for “abusive regulatory overreach” over an enforcement action that dragged on for almost two years before falling apart in administrative proceedings last year, court documents show.

The federal lawsuit, filed in Houston in late August but only recently unsealed, alleges that the TABC “wrongfully and maliciously” attempted to “extort” money from Spec’s by threatening to effectively shut the company down or by making the family-owned business fork over more than $700 million in civil penalties.

The TABC, citing the pending litigation, declined to comment.

In a stinging rebuke of the TABC last year, a pair of administrative law judges said the agency failed to prove dozens of allegations and chastised the agency for failing to disclose evidence to their own witness (and the court). The judges also called out the agency for “stacking” charges, a tactic commonly used to pressure defendants into a settlement. In the end, the judges recommended no fines be assessed against the liquor chain.

Strike Two:

[Note: Keep in mind, TABC was part of the Texas Grassroots Coalition Letter on the Sunset Commission.]

Strike Three:

Eliminating 3-Tier Alcohol Distribution

The Democratic platform contains strong free-market language defending the rights of craft brewers: “Democrats support modernizing the TABC’s 3 tier system because Texas’s craft breweries create jobs, encourage tourism, grow the economy, revitalize communities and add incremental tax revenues. Democrats support legislation allowing craft breweries to enjoy the same rights as their competitors in every state that allow them to sell and market their products directly from their breweries to consumers for take-home consumption, and ensure fairness in distribution across the state.” Cheers to that. For their part, Republicans “urge the Texas Legislature to adopt legislation eliminating the mandatory three-tier system of alcohol production, distribution, and retail. Texans should have the freedom to purchase alcohol directly from manufacturers, just as any other retail product.”

Bottom Line: Next week's Sunset commission hearing could be very interesting...as could the amendments/floor debates on whatever bill they pass next session.