04-16-2010 - Vol. 12 / No. 41The Comprehensive Alcohol Regulatory Effectiveness Act intro'd in Congress last night by Rep Delahunt from Mass (not running for re-election) and handful of co-sponsors in what NBWA called "a strong bipartisan coalition" in letter to members. Its purpose: "to support State based alcohol regulation, to clarify evidentiary rules for alcohol matters, to ensure the collection of all alcohol taxes and for other purposes." This is essentially same bill as draft that INSIGHTS wrote about on Monday. Recall that language less sweeping than earlier draft, includes acknowledgment that states can't "facially discriminate without justification" against out-of-state producers and specifically shifts burden of proof to those who challenge state laws. "More than twenty five states have faced legal challenges to their ability to effectively regulate alcohol under the authority granted them by the 21st Amendment," NBWA exec veep Mike Johnson wrote Congress yesterday in request to support legislation. The bill will likely gather some co-sponsors quickly as distribs hit the Hill next week. But with lotsa much bigger issues on plate, only a few mos left in Congressional session and an election yr, seems like uphill battle.
Then too, some interests already lining up against bill, making their presence felt on Hill. One visible manifestation of that: co-chairs of Congressional Wine Caucus Congressmen Radanovich and Thompson (both testified at hearing) sent "Dear Colleague" letter to Congress earlier this week headlining that proposal "promotes discriminatory state laws, hurts wineries, breweries, distilleries and consumers." Probably worth noting that House speaker Pelosi, like Radanovich and Thompson, is from Calif, land of 3000 wineries.
Supplier attys also already prepared detailed analysis of their many objections, tho there is agreement they will not be lobbying against bill during conference. Still, there's bound to be some confusion among distribs as Legislative Conference kicks off this weekend. The difference between how AB and MC talk to their distribs about the bill in their Sunday DC meetings and how NBWA talks about the bill in their distirib-only meeting Monday morning should speak volumes. Brewers and distribs are nowhere near on the same page here. Tho INSIGHTS wrote earlier that outright antitrust exemption now removed, new version "doesn't remove their proposed antitrust exemption," one supplier source insists, "it's just cleverly cloaked in the phrase 'under the Commerce Clause or an Act of Congress' found in Section 3 of their bill," where it discusses presumption of validity. "An Act of Congress" would encompass any law, up to and including antitrust.
In any case, this is starting point for NBWA's most ambitious initiative ever. NBWA's prexy Craig Purser has said many times "this is a marathon not a sprint." And who knows where it will end up? Reached this morning, Craig said: "We're looking forward to a great meeting" and that "record numbers" of distributors" will attend. He noted too this conference "designed …to do it differently" with both a "component to advocate for our distributor members" and one "to advocate for industry issues." We look forward to seeing everyone in DC.
