Legislative Update: Federal ruling means wine and liquor sales will change

REP. DAVID FLOYD

By Rep. David Floyd
50th District State Representative

Tuesday, Feb. 12, 2013, 9:30 p.m. — Today, if you want to buy a bottle of bourbon you must go to a liquor store, or perhaps a drug store.  Not long ago some grocery stores added a package liquor store connected to the grocery, but built a separate entrance to comply with Kentucky statutes  (Kroger in Bardstown, for example.)

But earlier this year, in response to a suit filed by grocery stores and gas stations, a federal judge ruled that Kentucky’s practice of licensing only select businesses to carry wine and liquor was unconstitutional.  He said that since Kentucky permits a business other than a liquor store (drug stores) to sell it, then we can’t forbid a license to other applicants.  Therefore, any business will now be able to apply for a liquor license.  (Please note that local option is intact; some counties don’t permit any liquor sales.)

At first blush, you have to agree with the judge.  Why should Tom have the right to sell a legal product in his liquor store, but Joe shouldn’t in his corner grocery?  What compelling interest does the state have to limit the sale of bourbon (or wine) to only a few locations?

After Prohibition states cautiously reauthorized liquor sales, some states limiting the business to only state-operated liquor stores.  Today in Kentucky, our statutes rationalize limits based, in part, on the protection of children – you can’t go into a place that sells liquor/wine unless you are twenty-one years old, the legal limit to purchase.

But because of this federal court ruling, wine and liquor sales will change in Kentucky.  Our current restrictions have been in place for decades.  Some businesses have been denied the right to market these products and that doesn’t seem fair.  Certain other businesses – for example, liquor stores – have invested a lot of money to operate within the established limits, so if we throw it wide open we certainly are not being fair to them.  Finally, there is a compelling interest to limit sales to only those places not frequented by children.

Understand, if we do nothing in this legislative session, many of our statutes regarding the issuance of liquor licenses will be voided.  I believe it’s important that we act now, comply with the court ruling, treat all license holders alike, and “grandfather” those drug stores which are complying with current law.

And so we have before us HB 310.  With fairness in mind and remaining faithful to the principle of the protection of children, the bill would permit any business to apply for a liquor license, but would place the same restrictions on all new applicants: no minors allowed (unless accompanied by parent or guardian); and a separate entrance to control access.

Since the best part of my job is hearing from you, come see us at High Grove Grocery on Saturday at 10 a.m. for “Coffee with Dave… and Senator Jimmy Higdon.”  You know you can also call me at home, or leave a message at 1-800-372-7181.

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