Here’s something from the regulators behaving badly file:
Leaders at the Texas Capitol love to bash what they call out-of-control bureaucrats at city halls and in Washington, D.C., but a recent case pitting the Texas Alcoholic Beverage Commission against Spec’s Wines, Spirits & Finer Foods looks like state regulatory overreach on steroids.
After an investigation of the state’s largest liquor retailer, the TABC sought to yank permits for all 164 of the company’s stores — which would effectively shut it down — or hit Spec’s with fines of up to $713 million, according to court documents filed last week. The agency also put the company’s expansion plans on ice by freezing Spec’s new permit applications during the three-year probe, records show.
What did Spec’s, a family-run company based in Houston, do to deserve the business equivalent of the death penalty? That’s what a couple of Texas administrative law judges wondered last week.
They poured out the TABC like stale beer in a blunt 151-page ruling. The judges said TABC failed to prove dozens of allegations, rebuked agency lawyers for failing to disclose evidence to their own witness (and the court) and called out the agency for “stacking” charges, a tactic commonly used to pressure defendants into a settlement.
In the end, the multi-year prosecution and an eight-day March administrative law hearing — similar to a trial — turned up evidence that Spec’s may have paid a $778 invoice from a wine supplier a day or two late in 2011 under the complicated liquor “credit law” spelling out when payments for booze must be made.
The article goes on to document a series of abuses, including using another company’s admission of guilt as evidence of Spec’s guilt.
The Spec’s case is just the latest in a long series of abuses that caused previous TABC head Sherry Cook to step down and Governor Greg Abbott to state “It’s time to clean house from regulators not spending taxpayer money wisely.”
Hopefully newly-appointed TABC Chairman Kevin Lilly can clean up the mess and get the agency back on track. Texas labyrinth alcoholic beverage laws are bad enough without adding abuse…
Tags: Greg Abbott, Kevin Lilly, Regulation, Sherry Cook, Spec's, TABC, Texas
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