A federal judge made a ruling Tuesday that may allow Walmart to sell liquor in Texas, but the Texas Alcoholic Beverage Commission said it will appeal the decision.
A U.S. District Court judge in Austin ruled for Walmart and against the TABC in the case, calling unconstitutional a law that prohibits publicly traded companies from selling liquor in Texas, the Dallas News reported.
“Texas is the only state that bars public corporations from selling liquor solely because of their status as a public corporation,” Judge Robert Pitman wrote in his 50-page opinion on the case, the News reported.
More than 600 Texas Walmart stores sell beer and wine, but have been prohibited from selling rum and vodka along with other liquors. If Walmart does begin to sell liquor, locations would build separate entrances adjacent to existing stores as required by state law.
“We applaud Judge Pitman’s order striking down Texas laws that have prevented us from fully serving our customers,” Walmart spokeswoman Ann Hatfield said, the Dallas News reported.
The law was intended to favor Texas-based and family-owned businesses over large companies.
The ruling also challenged Texas for giving unlimited permits to some retailers while limiting others to five permits.
“Walmart filed suit because these laws are unfair and hurt our customers,” Hatfield said, the Dallas News reported. “We are grateful for Judge Pitman’s thoughtful opinion, finding that these laws violate the U.S. Constitution.”
The 2,500-member Texas Package Stores Association also was involved in the case and is disappointed in the ruling, Fort Worth Business reported.
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