>> ERIC: WE'LL HAVE THE BIG NEWS OF THE WEEK AND A KEVIN KLING ESSAY A BIT LATER IN THE HOUR.

BUT FIRST UP, A BID TO CHANGE A LAW THAT COULD MEAN LOWER GAS PRICES.

>> CATHY: DID YOU KNOW THAT MINNESOTA HAS A LAW THAT DICTATES THAT THE PRICE OF GASOLINE CAN'T GO TOO LOW?

THE MINIMUM MARKUP LAW REQUIRES GAS STATIONS TO CHARGE EIGHT CENTS A GALLON TO THE PRICE THEY PAY FOR THE PRODUCT.

AND THERE ARE POTENTIAL FINES FOR SELLING GAS TOO CHEAPLY.

ONE OF THE SPONSORS OF THE BILL TO REPEAL THIS MARKUP LAW JOINS US.

SENATOR JORDAN RASMUSSON IS A REPUBLICAN FROM FERGUS FALLS.

GOOD TOO HAVE YOU.

>> THANKS FOR HAVING ME.

>> Cathy: SO CAN YOU EXPLAIN TO PEOPLE ABOUT THIS LAW?

I THINK MOST PEOPLE WOULDN'T -- THEY MIGHT BE SURPRISED THERE'S EVEN A LAW THAT HAS A 34EU78 FLOOR OF GASOLINE.

>> YEAH, YOU DESCRIBED IT CORRECTLY.

IT'S AGAIN THE LAW TO SELL GAS TOO CHEAPLY HERE IN THE STATE OF MINNESOTA.

AND IT'S REALLY A HIDDEN GAS TAX.

THERE WAS A RETAILER IN THE NORTH METRO, FAMILY OWNED, SINGLE STORE OPERATOR, WHO WAS JUST TRYING TO SELL GAS AT A COMPETITIVE PRICE TO ATTRACT CUSTOMERS AND HE GOT FINED BY THE STATE OF MINNESOTA BECAUSE A COMPETITOR REPORTED HIM.

AND SO THAT'S WHY WE'RE WORKING TO TRY TO GET THAT MINIMUM MARKUP LAW REPEALED THIS SESSION, ESPECIALLY ALL THE FEEDBACK WE GOT ON THE CAMPAIGN TRAIL ABOUT VOTERS' CONCERNS WITH INFLATION AND ESPECIALLY THE PRICE OF GAS.

THIS IS SOMETHING THE STATE OF MINNESOTA CAN DO.

>> Eric: HOW ARE CROSS COAND SAM'S LUB BROUGHT INTO THIS?

>> NO, THE LARGE RETAILERS, BECAUSE THEY'RE A CLUB MEMBERSHIP, THIS LAW DOESN'T APPLY TO THEM.

COSTCO CAN BE SELLING GAS 20 CENTS OR CHEAPER PER GALLON CHEAPER THAN OTHER RETAILERS.

TO MAKE SURE THAT THERE'S A LEVEL PLAYING FIELD AMONG ALL OF THE GAS RETAILERS.

>> Cathy: WOULD THIS WORK AGAINST SOME OF THE SMALL STATIONS THAT ONLY SELL GAS?

YOU KNOW, THERE'S SOME PRETTY TEENY LITTLE STATIONS OUT THERE.

WOULD THAT HURT THEM?

>> ONLY A HANDFUL OF STATES HAVE A MINIMUM MARKUP ON GASOLINE.

THERE'S ABOUT 40 THAT DON'T.

AND WHAT THE FEDERAL FROM AD COMMISSION HAS FOUND THAT DOES NOT IMPACT COMPETITION IN TERMS OF HURTING COMPETITORS THROUGH PREDATORY PRICING, BUT IT DOES INCREASE THE COST OF GAS, AND ACTUALLY RESEARCH HAS SHOWN THAT THE NUMBER OF SMALL RETAILERS REFERERS OR GAS STATIONS DOESN'T DIFFER BETWEEN STATES.

>> Eric: IN MINNESOTA, WHAT'S THE POTENTIAL SAVERS FOR A MOTORIST?

>> TOUGH TO TELL EXACTLY WHAT THE SAVINGS WILL BE.

THOUGH, THE FEDERAL TRADE COMMISSION, ON A BIPARTISAN BASIS, HAS SAID THAT THESE LAWS DRIVE UP THE COST OF GAS, SO PEOPLE CAN EXPECT TO SEE SAVINGS.

SCOTT JENSEN, WHEN HE WAS RUN HIS GOVERNOR'S CAMPAIGN PROPOSED THIS AS A WAY TO REDUCE THE COST OF GAS, AND HE ESTIMATED ABOUT 20 CENTS PER GALLON CHEAPER.

AND THEN GOVERNOR EVERS, THE GOVERNOR OF WISCONSIN, HE SAID IT WILL IMPACT ABOUT 14 CENTS A GALLON.

>> REPUBLICANS HAVEN'T HAD MUCH INPUT IN THE SESSION SO FAR.

HOW ON EARTH DID THIS BECOME BIPARTISAN?

THIS IS DINED OF A RARITY THIS SESSION?

>> YEAH, NO, WE HAVE BIPARTISAN SUPPORT.

IT'S ACTUALLY BEEN ALREADY HEARD IN THE HOUSE COMMERCE COMMITTEE AND WAS VOTED OUT ON A BIPARTISAN BASIS.

>> Eric: YOU BEAT THE FIRST DEADLINE.

>> THAT'S RIGHT.

AND WE HAD A HEARING IN THE SENATE YESTERDAY.

ALSO HAS BIPARTISAN SUPPORT.

I THINK IT JUST GOES BACK TO THE FEEDBACK WE GOT FROM OUR CONSTITUENTS ABOUT HOW THE PRICE OF GAS IS IMPACTING THEIR POCKETBOOK, AND A LOT OF FOLKS IN THE AREA THAT I REPRESENT, WHEN THAT PRICE OF GAS GOES UP, THAT MEANS THAT THEY HAVE TO PUT SOMETHING BACK OUT OF THEIR GROCERY CART WHEN THEY'RE OUT SHOPPING.

THEY'RE REALLY FEELING STRETCHED RIGHT NOW.

>> Cathy: SO WHAT ARE YOU HEARING FROM THE OPPONENTS?

HOW STRONG IS THE ANTI--BILL REACTION?

>> Eric: SO THE PETROLEUM MARKETERS DON'T LIKE MY BILL.

AND IT MAKES SENSE.

YOU KNOW, EVERY INDUSTRY AND PROFESSION WOULD LOVE TO HAVE A LAW THAT PROTECTS YOUR MARGINS FROM COMPETITION.

AND SO I THINK THAT'S THE QUESTION FOR US AS A LEGISLATURE IS, DO WE THINK OUR CONSUMER PROTECTION LAWS SHOULD BE THERE TO PROTECT CONSUMERS, OR SHOULD THEY BE TO PROTECT THE PROFIT MARGINS OF PETROLEUM MARKETERS?

>> Eric: I THINK THIS WILL BE ONE THAT EOPLE WILL BE TALKING ABOUT, S