Finance & Commerce
March 23, 2009
The Minnesota Senate Commerce and Consumer Protection Committee recently discussed 14 separate bills, including one that spotlights a turf battle between state lawmakers and the University of Minnesota regents concerning alcohol sales at the new Golden Gophers football stadium on the Minneapolis campus.
The committee passed most of the bills. And the committee's chair, Sen. Linda Scheid, DFL-Brooklyn Park, is assembling an omnibus liquor bill.
The final bill could include a proposal - approved by the committee - that would not allow the university to limit alcohol sales to premium seating areas and suites in the new TCF Bank Stadium. The stadium, which is being built with state money, is under construction on the East Bank of the university's Minneapolis campus.
Sen. David Tomassoni, DFL-Chisholm, said alcohol sales shouldn't be limited to places "where the rich people sit." Allowing liquor sales during the games, he added, might prevent students from binge drinking before entering the stadium.
In previous seasons, Gopher football games have been held off campus at the Metrodome. Liquor is for sale during Gopher games throughout the stadium, with the rule that only one beverage can be purchased at a time, Tomassoni said.
Kathryn Brown, university vice president and chief of staff, testified that decisions concerning liquor sales at Gopher football games are best left to the Board of Regents.
"We are trying to create a collegiate atmosphere, not a pro sports atmosphere," Brown said.
Like the U of M dispute, many of the proposed bills are isolated to specific locations. But others address regulations that some believe hold back emerging products in the liquor industry. Bills that deal with craft breweries and artisan distilleries are controversial because they would alter strict state laws governing the supply and distribution of alcohol.
Scheid introduced legislation, for instance, that would allow so-called craft brewers who make 3,500 to 7,000 barrels to offer their product through both retail and wholesale sales.
Pete Rikakes, president of the Minnesota Craft Brewers Guild and owner of Town Hall Brewery in Minneapolis, said he is unable to distribute the beer his establishment sells at the bar and restaurant near the West Bank of the Minneapolis campus. Town Hall and other brewers face competition from brewers in states such as Colorado that can sell the beer they make.
"We are unable to distribute the beer throughout Minnesota and other states," Rikakes said.
Another proposal would relax rules for so-called artisan distillers that make up to 25,000 gallons a year of vodka, whisky and other hard alcohol. Currently, artisan distillers must pay a $30,000 annual manufacturers fee to do business; a bill by Sen. Amy Koch, R-Buffalo, would allow artisan distillers to operate by simply purchasing a $250 license.
Ross Plaetzer of Red Wing said the current fee is a barrier to distilleries starting business in Minnesota: "They aren't going to invest with a $30,000 buy in."
Scheid withdrew her craft beer bill before taking a vote. Koch's bill was laid over without a vote being taken. Both bills run into conflict with Minnesota's three-tier system of alcohol supply and distribution. The system, which dates back to the Prohibition era, prevents the makers of alcoholic beverages from distributing and selling their product.
Joe Bagnoli, a lobbyist who represents the Minnesota Municipal Beverage Association and Minnesota Licensed Beverage Association, said exceptions to the three-tier system such as craft breweries and artisan distilleries would create a "distinct disadvantage to everybody else" that would detract from sales.
Scheid said she expects issues surrounding the three-tier system to be debated again in the 2010 legislative session.
