Sunday alcohol bill meets a familiar fate

Supporters of Sunday carryout alcohol sales — who have fought in vain for years to overturn the Prohibition-era ban — had a lot of reasons to be optimistic this year.

As the 2015 legislative session ramped up, leaders in the House expressed unprecedented support for the idea. Corporate powerhouses such as Kroger and Wal-Mart threw in lobbying power. And a new coalition called Hoosiers for Sunday Sales hired a top-notch campaign manager to spearhead a grass-rootseffort.

But after more than two months of intense lobbying by liquor stores, which oppose the measure, the bill evolved into a collection of stringent new restrictions on alcohol sales at groceries, drugstores and convenience stores. Big-box retailers — who support Sunday sales — turned on the measure, fearing lost sales and expensive store renovations. As for the top-notch campaign manager, she resigned after being charged with drunken driving.

On Tuesday, the bill met a familiar fate when its author, House Public Policy Chairman Tom Dermody, unceremoniously announced he would not call the measure for a vote.

"I clearly did not have the votes," Dermody, R-LaPorte, told an impromptu gathering of reporters at the Statehouse. "It was a stretch just to get it to this point."

House Bill 1624 would have removed Indiana's 80-year-old prohibition on Sunday alcohol sales at drugstores and grocery, convenience and liquor stores.

But the measure got bogged down after Dermody introduced an amendment that created new, more stringent restrictions on how retailers other than liquor stores could sell alcohol. The restrictions would have required hard liquor to be kept behind a counter and would have limited beer and wine displays to a designated area of the store.

Those measures were backed by the state's powerful package liquor store lobby, which has successfully fought past efforts to legalize Sunday sales. Liquor stores fear Sunday sales would increase their costs without creating new revenue.

Dermody's decision to drop the measure came before a critical midsession deadline Wednesday. That's when the House and Senate must vote bills out of their respective chambers.

Sunday sales could be inserted into another measure, but even supporters don't expect that to happen.

That means Hoosiers who want to buy a six-pack of beer at the grocery store on Sunday — the second-busiest shopping day of the week — will have to wait at least another year for the chance.

Big-box retailers and grocery stores supported the bill initially but began opposing the measure after the new restrictions were added.

Grant Monahan of the Indiana Retail Council, which represents chain grocery stores, said he had mixed emotions about the bill's defeat.

"It's sad for consumers," he said. "We wanted Sunday sales to pass."

But he said the amended bill would have cost retailers such as Wal-Mart and Kroger millions of dollars in store remodeling, while alcohol sales would have suffered.

"There's no one to blame but the liquor stores," he said.

Matt Bell, spokesman for Big Red Liquors, pointed the finger at big-box retailers.

"I think (Public Policy) Chairman Dermody took the debate in the direction it needed to go," he said. "These large, international companies were able to kill the bill."

An effort by Rep. Jud McMillin, R-Brookville, to reach a compromise last week failed. His amendment to the bill would have required retailers to take security measures, such as security cameras and security caps on liquor, but it stopped short of requiring grocers and others to keep liquor behind the counter.

But some lawmakers expressed concerns about supermarket alcohol displays near back-to-school supplies and mini-liquor bottles for sale near grocery checkout aisles.

Ultimately, lawmakers shot down the compromise on a close 47-45 vote.

Still, the measure made it further than any previous Sunday alcohol sales bill. Similar efforts in the past have failed to even receive a committee vote.

Only 11 other states ban Sunday carryout alcohol sales, and Indiana is the only one to do so while allowing sales at bars, restaurants and sports venues.

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