Thursday, February 19, 2009

Fireworks Under the Dome

Things are beginning to heat up under the Gold Dome...

First, HB 1192 has been introduced. This is the needless bill which will allow corporate and big box grocery stores to carry full strength beer. The ramifications of this legislation will be the destruction of Colorado's vibrant independent liquor stores and our peerless brewing scene. Its incredibly frustrating to see two Democratic legislators be lead around by the likes of former Bill Owens staffer Sean Duffy but that is indeed where we're at. From the Rocky this morning,

Sean Duffy, spokesman for the Rocky Mountain Food Industry Council - a coalition of convenience stores and grocery stores favoring HB-1192 - predicted grocers would stock a wide selection of craft beers.

He pointed to the one Safeway store in Colorado, in Littleton, that's authorized to hold a liquor license to sell regular beer, in addition to wine and liquor.

"They should take a look at the wall of beer, including many craft beers, at the Littleton Safeway liquor store," said Duffy. "Why the craft brewers are willing to turn down hundreds of new outlets for their products is a mystery."

But that doesn't reassure [Left Hand Brewery President Eric] Wallace. A call to the Littleton Safeway showed that it doesn't sell Left Hand beers.

"It's just indicative of why this scares us," Wallace said.

The Rocky checked on Duffy's theory and visited a few grocer/liquor stores in the metro area. Not surprisingly there was extremely limited selection of Colorado beers. Duffy is blowing smoke and he knows it. This is a clear case of an industry with a strong lobby rolling right over an industry with a weak to non-existent lobby. There's no burning public policy issue at stake here. It's simply one interest group muscling through legislation that will help it and crush the competition and, unfortunately, some innocent bystanders.

I don't know if this legislation can be derailed (I'm not in the Capitol much anymore) but I hope some Democratic legsislators come to their senses and kill this baby in the cradle.

On a more positive note Rep. Don Marostica is moving forward with his legislation to undue the 6% general fund spending limit known as Arveschoug-Bird. This is a big fight as it would essentially do away with the our dreaded budget "ratchet" at a critical time. As it stands now the budget is only allowed to grow by 6% every year, with the additional funding spilling over into Senate Bill 1 transportation funding. When we're faced with budget cuts and reduce the budget we are setting a new baseline for the budget upon which we can only grow by 6% the following year. Thus the term "ratchet effect." Thanks to the 6% limit we're never able to return to previous spending limits, economic downturns neccesitate permanent budget cuts. We're never able to recover from a recession.

Marostica is of course being bludgeoned by the economic jihadists who control his party but he's fighting back,

Marostica acknowledged that he might not get support from another legislative Republican but said he's going to move ahead with the bill. He questioned why May was taking advice from people like Caldara and Hillman.

"They're has-beens. They're losers," Marostica said.

Good for him. Hillman is a has-been and Caldera is a loser. Marostica should be applauded for standing up to the clown show that guides GOP policy and politics in this state. Hillman and Caldera were running things when the GOP stunningly lost control of the General Assembly in 2004, they've been exercising outsized influence as the state GOP becomes more and more irrelevant. The sooner more Republicans follow Marostica's lead and refuse to be bullied into towing the Caldera line the better for the state GOP and the better for the state.

1 comment:

Andrew Oh-Willeke said...

Get out. The bill was Democrat Jennifer Veiga's idea and is really just the second installment of the liquor store blue law repeal.

Why are there few craft brews in grocery stores? Because few self-respecting craft brewer make mass market 3.2 beer.

And, while Colorado's vibrant craft brewing scene (which has more to do with deregulation of brewing regulations than with the retail distribution network -- Colorado craft brewer sell their productions nationally and in bars and restaurants as well), is a good thing, our "vibrant liquor store scene" is baloney. Yes, Aurora has an independent liquor store on every corner even though it has few decent independent coffee shops. But, honestly, is that really a good thing? I have yet to see any sign that lots of small ratty liquor stores with little selection is better than a modest number of bigger ratty liquor store with the same or better selection.

Indeed, the liquor stores in the area of one of the only grocery stores in Colorado that can sell full strength wine and liquor now (near Target in Glendale) are on record saying that they don't mind the competition and are chasing an higher end market than Target seeks.

Grocery store sales might actually improve the quality of the liquor stores that survive, which would have to offer more than a mere monopoly on full strength beer sales, while adding convenience and purging us of less worthwhile liquor stores.

New York liquor stores do fine despite not having a monopoly on wine or beer, just spirits. Under this bill, liquor stores would still have a wine and spirits monopoly, and would not be barred from selling full strength beer. Indeed, if grocery stores don't distribute craft beers that would give them even more of a competitive edge. Meanwhile, the abomination of 3.2 beer would head further towards its grave.

If one thinks liquor stores should have a monopoly on alcohol sales entirely, so be it. There is at least some public policy argument for that position. But, there is no defensible reason for allowing status quo where grocery stores to sell 3.2 beer that nobody wants (which actually costs more to make than full strength beer and was invented to accomodate drinking age laws that no longer exist), but not full stength beer. The collapse of the 3.2 beer market following the commencement of Sunday liquor store openings shows how strong the consumer preference against 3.2 beer is in reality.

The 6% repeal bill, of course, is a good one, and the TABOR arguments for it reuqiring a vote are quite weak as it doesn't impact total government revenue, just how it is spent.