Montana: Panel OKs resolution to study beer, wine distribution

Source: Great Falls Tribune

Phil Drake

April 11, 2017

A Senate panel on Tuesday approved a resolution calling for a study during the interim on the distribution of beer and wine.

Senate Joint Resolution 26, proposed by Sen. Steve Fitzpatrick, R-Great Falls, will look at who is distributing beer and wine and how it is being moved. It was approved 6-4 by the Senate Business and Labor Committee. He said he wanted the state to review the distribution system, see if laws needed tweaking and determine whether Montana businesses are getting fair treatment.

Some distributors opposed the bill saying it was too narrow in scope. They said Montana has a three-tier system: supplier, wholesaler and retailer and those aspects should be included as well.

Fitzpatrick said he also had questions about cost and if it may be cheaper for some bar owners to buy their beer from Costco rather than a distributor.

The study calls for a look at the distribution system, “an often-silent partner in the three-tiered system, may need to be re-examined in light of the diverse impacts posed by free markets, franchise agreements, and state control policies seeking to address such diverse goals as temperance and aid in taxation.”

Fitzpatrick said at one time his proposal called for all liquor distribution to be included in the study, but was told there was some legislation in the last session to look at them.

Sen. Ed Buttrey, R-Great Falls, the only proponent who spoke in favor of the study, said he owns a liquor license and had some questions about the system and said it was an opportunity to look at policy.

Kristi Blazer, executive director of the Montana Beer and Wine Distributors Association, wanted the focus to be widened to include wholesalers and retailers. She said later it was an issue that cannot be looked at in a vacuum.

“Please either appropriately broaden this bill or rethink the need for it,” she said.

Brian Clark, a distributor and president of Fun Beverage in Kalispell, the current system mandates distributors collect and pay the excise tax. He said the current system is transparent and accurate tracks sales.