New rift opens on Sunday alcohol sales

Lawmakers have crafted a proposed compromise that would allow Sunday carryout alcohol sales in exchange for new restrictions on how drug and grocery stores can sell beer and liquor.

But the coalition of grocery stores, pharmacies and convenience stores pushing for Sunday sales says the new restrictions are a poison pill crafted by the liquor store lobby.

House Public Policy Chairman Tom Dermody plans to introduce the amended measure on Wednesday.

It would allow Sunday alcohol sales at any store with an alcohol permit, but it would create more stringent restrictions on retailers other than package liquor stores.

Those restrictions would require hard liquor to be sold from behind a counter and would require beer and wine to be located in a single aisle or a separate room. Clerks would also have to receive alcohol server training and permits.

Those new requirements are causing a sudden role reversal among grocery and liquor stores, which have been battling over the issue for years.

Grocery stores, which have been lobbying to repeal the Prohibition-era Sunday sales ban, say the proposed new rules would require significant remodeling, cut into their bottom line and undermine customer convenience.

“This is a blatant market-share grab by the package liquor stores,” said John Elliott, a spokesman for Kroger. “Each of these new restrictions negatively impacts sales seven days a week.”

Liquor stores, on the other hand, are lining up behind the new language, despite their longstanding opposition to Sunday sales.

Patrick Tamm, who lobbies for liquor stores, said the compromise measure creates a more level playing field.

“We are very supportive of what’s in Rep. Dermody’s amendment,” he said.

Senate Public Policy Chairman Ron Alting, who has blocked efforts to allow Sunday sales in the past, said he would support the legislation with the new language “100 percent.”

The House Public Policy Committee is scheduled to take up the measure Wednesday at 9 a.m. in the House chamber at the Indiana Statehouse.

Efforts to legalize Sunday carryout sales in recent years have met stiff resistance from the state's powerful liquor store lobby, which fears the measure would increase costs without generating additional revenue. As a result, past measures have not even received a committee vote in either chamber of the legislature.

Supporters hope this year will be different. National grocery chains are leading what they hope will become a grass-roots effort to overturn the restriction. The Indiana Chamber of Commerce also is supporting the effort.

Call Star reporter Tony Cook at (317) 444-6081. Follow him on Twitter: @indystartony.