Omnibus liquor bill divides small businesses, committee members

A number of proposed changes to the state’s liquor laws were approved by the House Commerce and Regulatory Reform Committee Wednesday, but not without partisan divide and concerns from traditional liquor advocates.

Sponsored by Rep. Joe Hoppe (R-Chaska), the committee chair, HF68 as amended is this year’s omnibus liquor bill, jam-packed with reforms favoring the booming craft brewery and distillery industry, along with making changes that would benefit the new under-construction Minnesota Vikings practice facility and extend closing times for Super Bowl Sunday.

Approved on a 10-7 vote, with Rep. Greg Davids (R-Preston) joining six Democrats in voting against it and Rep. Chris Swedzinski (R-Ghent) not voting, its next stop is the House Floor. There is no direct Senate companion.

‘Winners and losers’

Hoppe said he assumes the Senate will have its own omnibus liquor bill and the two chambers will rely on a joint conference committee to iron out exact details. “The language (in the bill) isn’t the final product,” he said.

Rep. Laurie Halverson

“I really hate the fact that we are pitting small business against small business in this committee,” Rep. Laurie Halverson (DFL-Eagan) said. “We just keep pushing and pushing and pushing the boundaries… We are creating winners and losers.”

Jennifer Schoenzeits, owner of Minneapolis-based Zipps Liquors, said she feels like her store is one of the losers. With changes to growler regulations, Schoenzeits said breweries would be able to sidestep the three-tier system governing wholesalers, distributors and retailers – a system of rules her business “learned to play in.”

“The purpose of the growler law is to sell things we don’t,” she said. If breweries want to start selling bottles the size liquor stores can carry, she added, “Open a liquor store.”

Football and booze

A provision in the legislation would allow the City of Eagan to issue an on-sale liquor license to Vikings’ ownership for their new training facility which is scheduled to open in 2018. Originally HF1740, sponsored by Rep. Regina Barr (R-Inver Grove Heights), the new facility would be able to provide alcohol not just for Vikings’ events, but all the different plans the facility might hold.

“This is an opportunity for us to connect with our community and provide hospitality, food and beverages at the events,” said Lester Bagley, the team’s vice president of public affairs and stadium development.

Another provision would allow the City of St. Paul to issue liquor licenses on the Capitol grounds. Two events are outlined in the proposal, but require legislative approval: The ceremonial opening of the Capitol in August and the construction of an ice castle for the Super Bowl next year.

The committee backed out of a section allowing on-sale wine and malt liquor licenses at the Capitol, including the cafeteria – a provision previously included in a request for proposal by the Administration Department soliciting new cafeteria management.

Other notable provisions would:

• allow cocktail rooms to be open Sundays, if approved by the municipality;
• expand the amount of alcohol breweries can sell in a year;
• allow micro distilleries to sell more than one bottle per customer per day;
• ensure products in cocktail rooms are “Minnesota made;”
• allow 3.2 percent alcohol labeling on both the tops and sides of containers; and
• put a moratorium on future changes to brewpubs and growlers.

What’s in the bill?

Portions or the entireties of these bills are included in the omnibus liquor bill:

• HF217 (Dehn)
• HF283 (Hornstein)
• HF1078 (Christensen)
• HF1127 (Nash)
• HF1436 (O’Driscoll)
• HF1691 (Hoppe)
• HF2128 (McDonald)