Effort to expand cold beer sales fizzles in tight vote by legislative commission

The prospect of getting a cold six-pack at your local grocery store has once again fallen flat.

After a nail-biter vote, a panel working to revise Indiana’s alcohol laws will not recommend allowing pharmacies, grocers and convenience stores to sell cold beer — something that has long been the well-protected province of liquor stores.

The recommendation failed even though the vote was 8-7 in favor. That's because 9 of the 17 members had to vote in favor of the recommendation for it to pass. Two members — Gina-Gail Fletcher and Alex Huskey — were absent.

The tight vote was even more dramatic because one member — Judge William Boklund — switched his vote in the middle of the roll call, joining proponents of cold beer access.

The result was a big blow for consumers who want to be allowed to buy cold beer for carryout at convenience, grocery and drug stores. Right now, only liquor stores are permitted to sell cold beer for carryout in Indiana, with few exceptions.

"With all due respect," Sen. Eric Bassler, a supporter of expanded cold beer sales, said ahead of the vote, "if this doesn’t get out of this commission, it will die."

Lawmakers created the Alcohol Code Revision Commission in the wake of a controversy over a loophole that temporarily allowed the sale of cold beer at two Rickers convenience stores. The commission already has approved a recommendation to allow Sunday carryout sales.

Many will see in the cold beer vote the hand of the small but powerful liquor store industry, which has fought for years to maintain its virtual monopoly on cold beer.

"Right now special interests are driving public policy. The public is not," said Chairwoman Beverly Gard said in explaining her support for a cold beer expansion.

The liquor store industry recently struck a deal with big box retailers like Walmart and Target to support Sunday carryout sales and oppose expanded cold beer sales. The unlikely alliance rankled the convenience store industry and cold beer supporters.

Indiana is the only state in the nation that regulates beer based on temperature and two recent public opinion polls show that a strong majority of Hoosiers want expanded cold beer and Sunday alcohol sales.

The panel, which includes eight lawmakers and nine others appointed by legislative leaders, also voted to recommended increased fines for those who sell to minors, increased alcohol permit fees, and a 25 percent increase to the state's alcohol taxes.

Money from those tax and fee increases will go toward enhanced enforcement and problem-solving courts.

It also voted to recommend requiring trained and licensed 21-year-old clerks at grocery, drug and convenience stores that sell alcohol. Those retailers also would be required to confine beer and alcohol to one area of their stores.

Gard, the chairwoman, said the commission's final report will reflect the close nature of the cold beer vote.

Ultimately, lawmakers will have final say over whether to take up the issue when they convene in January for the 2018 legislative session.

But the issue was already considered a tough sell among lawmakers, even with a recommendation from the commission. Without it, the prospects for expanded cold beer sales are dim at best.

Jay Ricker, owner of the Rickers gas station chain, said he would continue to push for cold beer despite the outcome of Friday's final commission meeting.

"At 8-7, while it doesn't go on as a formal recomendation, we're not done with this," he said.

He already has lawmakers lined up to sponsor a cold beer bill during the legislative session, he said.

But Rep. Ben Smaltz, who as chairman of the House Public Policy Committee is a gatekeeper on alcohol issues, said he only plans to prioritize the commission's recommendations.

"I give weight to what we've done here," he said. "If it's a recommendation of this committee for the General Assembly, I think it's going to get he weight it deserves. If not, then I just don't see that being a reasonable track, because that fully discounts the entire process we just went through."

Call IndyStar reporter Tony Cook at (317) 444-6081. Follow him on Twitter and Facebook.