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f To: Michael Mornson, City Manager From: Michael L. Larson, Liquor Operations Manager Subject: Informational Report on Wine in Grocery Stores Date: 03/26/2001 As you are aware, the wine in grocery store proposal (HF 1205) passed the sub- committee hearing by a 5-2 vote on Friday March 23rd, 2001. Now is the time for our City Council to get involved if they have concerns with this bill becoming law. believe that our City Council would not want this bill to become law due to the written language that removes all of the city's control over licensing. The proposal states that a city shall issue a license to a Supermarket that occupies a building space with at least 10,000 square feet and meets the qualifications in subdivisions 2 and 5 and section 340a.402 of the liquor statutes and rules. The proposal also states that a city shall renew the license if it finds that the licensee continues to meet the qualifications set forth in this subdivision. Under the grocer's definition of a supermarket, the proposal would allow Target, Super Target and Target Greatland, Wal-Mart, Costco, Sam's Club, K-Mart and other stores like these to sell wine. The proposal does not apply only to Cub and Rainbow grocery stores. This is a point that I don't believe the general public is aware of.. During the sub-committee hearing, the grocer's.talked about the bad publicity,that they have received regarding youth access issues. They claim that the liquor industry as well as the Doctor's and Police Chief's that testified against the proposal created a bad image of today's young adults. I contend that we have not created any image but rather recognized the facts as we see them on a daily basis, underage youth gain access to adult beverages. Reasonable thought leads me to believe that expanding access to alcohol would provide additional outlets for underage youths to obtain alcohol, either by theft or unlawful sales. The grocer's pledge to post signs, implement employee training and inspect identification for every sale does not preclude the fact that expansion of alcohol retailers in the fashion proposed could not prevent the inevitable, which is increased youth access to alcoholic beverages. With the proposal as defined,the focus has shifted from profits to youth access. While loss of revenue should be a concern, youth access to alcohol far out weigh dollars any day. Off-sale liquor stores concentrate on one product, alcohol. Minors typically are not . even employed by liquor stores. Most, if not all municipal liquor stores do'not hire anyone under the age of 21. This is a claim that supermarkets, Target, Wal-Mart and Sam's Club cannot make. Our City Council can make a difference. I believe they carry more clout with the Senators and Representatives than the grocers and the liquor industry combined. I would encourage them to contact the Senators and Representatives for our area and tell them their position on increased youth access to alcohol.