Sunday alcohol sales gains key supporter

In a move that signals unprecedented support for Sunday carryout alcohol sales, the chairman of the Indiana House Public Policy Committee has filed a bill that would remove the Prohibition-era restriction.

Rep. Tom Dermody, whose committee sets alcohol policy, has authored House Bill 1624, which would allow groceries, pharmacies and liquor stores to sell alcohol on Sundays from 10 a.m. to 6 p.m.

"One way or another," he said, "we should have the discussion once and for all."

Dermody's decision to author the bill is significant because any legislation must pass his committee before it can advance to the full House.

Grant Monahan, who represents grocery chains as president of the Indiana Retail Council, called Dermody "a champion of Hoosier consumers."

"This issue has always been about consumer convenience and providing greater choice to retailers on how they can serve their customers," he said.

Similar 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.

But supporters hope this year will be different. National grocery chains such as Kroger 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.

Dermody's bill appears to include some compromise language. It would remove restrictions on what package liquor stores can sell. Under current rules, liquor stores are prohibited from selling most other goods like cold soda and paper ware.

But Patrick Tamm, who represents liquor stores as CEO of the Indiana Association of Beverage Retailers, said merely loosening some restrictions isn't likely to appease his clients.

"A change in Indiana law won't be as simple as placing new hours on Sunday sales and changing what liquor stores can sell," he said. "We have no capacity to change overnight into big box retailers."

A legislative fiscal note filed with the bill also undermines one of the main arguments advanced by grocery stores — that Sunday sales would boost tax revenue for the state.

"The bill is not expected to have a significant impact on revenue from alcoholic beverage taxes or sales tax," the note says. "Rather than increasing sales, it is more likely that allowing carryout alcohol sales on Sundays would cause a shift in sales throughout the week."

Dermody said Wednesday that there would likely be some additional changes to the bill before any hearing.

Rep. Sean Eberhart, R-Shelbyville, had filed a similar bill focused solely on Sunday sales, but he is now listed as a co-author on Dermody's bill.

Even with Dermody's support, the measure faces some serious challenges. Some members of his committee want grocery stores to face some of the same restrictions as liquor stores, where clerks must be 21 years old and receive state permits to sale liquor.

And Dermody's counterpart in the Senate, Public Policy Chairman Ron Alting, R-Lafayette, has refused to give similar measures a hearing in the past.

But for supporters of the bill, this session represents the best shot yet.

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