NASHVILLE — A state senator on Monday served up a 190-proof blast of fellow Republicans’ attempt to re-install Tennessee’s old cap on liquor store ownership, accusing colleagues of engaging in “un-Republican” behavior and warning it would appear they had been “bought and paid for” by special interests.
Sen. Frank Niceley, R-Strawberry Plains, made the comments as the Senate considered a bill that would allow grocery stores to stock up on wine prior to the July 1 effective date of a 2014 law that allows them to sell wine.
However, the bill, sponsored by Sen. Bill Ketron, R-Murfreesboro, also contains the provision restoring the cap on stores that individuals or corporations can own.
Removal of the cap was one of the provisions the liquor-store lobby insisted on before agreeing in 2014 to allow supermarkets, including chains, to sell wine.
But liquor store owners’ minds changed after Bethesda, Md.-based Total Wine & More, revealed it is looking to open stores in Tennessee.
During Senate debate Monday afternoon, Ketron defended re-capping the number of stores a single individual or entity can own. The now-defunct cap was one store. Ketron’s bill contains a two-store cap.
Ketron drew a distinction between grocery store chains selling wine and chain liquor stores selling not just wine but liquor, too.
“All they can sell is wine,” Ketron said of grocery store chains such as Publix. “They will not be able to sell spirits.”
The early stocking provision and the liquor store cap are linked, the senator said, telling the Senate “the faster we vote for this bill the faster they’ll get wine stocked.”
Niceley put forth an amendment to strip the liquor-store ownership restriction provision, calling it “pure cold-hearted protectionism” on behalf of liquor store owners.
“I challenge you to name one other industry that we limit,” Niceley said, citing drug stores as an example. “We don’t try to protect mom-and-pops from CVS and Walgreens. This is unprecedented to keep an industry out.”
It failed on a 6-20 vote with Sens. Todd Gardenhire, R-Chattanooga, and Bo Watson, R-Hixson, siding with Niceley.
Ketron then again moved passage of the bill, telling opponents, “If you want to take a chance on them [grocery stores] not being able to sell wine beginning July 1 I’d hate to have to explain.”
Countered Gardenhire: “Gee whiz, I better hunker down and hide for a couple of days.” He said the liquor store owners “are big boys and know what the deal is.”
He also questioned why the state Alcoholic Beverage Commission has rules that won’t allow grocery stores to begin stocking wine prior to July 1.
Watson had questions of his own and asked what happens if an individual company has already spent money and purchased stores based on the expansion model envisioned in the 2014 law.
“What is the practical application for say, ‘John’s Liquor Store’ that’s invested in a 10-store expansion. What is the remedy?”
Ketron said, “The only remedy I would know of would be to pursue their own legal advice.”
Questions have previously been raised about whether the caps and Tennessee’s previous prohibition against non-residents owning liquor stores violate the Commerce Clause of the U.S. Constitution.
Ketron’s bill passed 20-6. Majority Leader Gerald McCormick, R-Chattanooga, stripped the limit provision from the bill, sponsored by Rep. Curry Todd, R-Collierville, through a committee amendment.
McCormick said Monday that when he missed a House session last week, proponents successfully moved on the House floor to send the bill on to the full Finance Committee instead of going first to the House Finance Subcommittee.
The Chattanoogan said he presumed proponents figure they would have an easier time in full committee. Nonetheless, McCormick is prepared to fight it there when the bill comes up.
Contact staff writer Andy Sher at asher@times freepress.com or 615-255-0550.