House approves brewpub deregulation

JUNEAU -- The state House of Representatives unanimously passed a change to Alaska's alcohol laws that removes restrictions on how much beer a brewpub can sell on the wholesale market in a year. This is the most recent

in what has been an annual affair of tinkering with the laws specific to how Alaskan entrepreneurs are allowed to brew and market beer.

Brewpubs became popular around Alaska in the 1990s, but not all of them held the same type of liquor licenses. Loopholes for restaurant owners that didn't have full bar licenses were found by entrepreneurs and later closed by legislators. It was a gradual and often contentious process but eventually anyone brewing and serving their own beer had to also obtain a license that allowed for hard liquor beverage sales. But those brewers were restricted to a cap that didn't exist for people who obtained a brewery license but don't own a bar.

The cap -- set at no more than 15,000 gallons of beer, or the amount sold in 2001with a 10 percent growth allowance each year -- was seen by some as an arbitrarily contrived protection for brewers who don't also own a bar.

The legislation removing the cap was sponsored by Rep. Lesil McGuire, R-Anchorage, and was attached to the bill that re-establishes the Alaska Alcoholic Beverage Control Board on the eve of its sunset period.

"If Alaska is going to foster a better business environment, it needs to understand the demands of the hospitality business," McGuire said. "All these changes do is grant greater flexibility for Alaska's brewpub owners to prosper in a reasonable manner."

They are now also allowed to compete for more tap handles in bars that they don't happen to own.

ABC director Doug Griffin said he isn't sure if brewery owners are going to complain or whether more changes will be on their way next year. He did say that ABC board members, politicians and

his staff have encouraged the industry to find legislative solutions among themselves.

"It's really dicey. It's a competitive industry and there are market forces involved here. The board definitely gets concerned about messing with it and I think it's certainly in the eye of the beholder whether it's a level playing field or not," Griffin said.

The legislation has now moved to the senate.