Fairfield clubs and restaurants with liquor licenses still cannot sell alcohol on Sundays.
A three-member committee made the recommendation at Tuesday night's council meeting, meaning no vote was needed.
The American Legion had requested the change in the ordinance.
"We're losing a lot of business," said Tracy Yoho, manager of the Fairfield American Legion.
If it had passed, the ordinance would have only been for clubs and restaurants. It would have not include package stores to be opened on Sundays.
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