National Issues

Federal Excise Tax Increase Proposals Fail to Gain Traction.For the Time Being. After much discussion about a possible tripling and equalization of the federal excise tax on alcohol to fund healthcare reform, neither the Senate Finance Committee nor the House Ways and Means Committee has included a tax increase in the most recent versions of the draft legislation.

State Issues

Arizona
H.B. 2301(http://www.azleg.gov/legtext/49leg/1r/bills/hb2301h.pdf), a bill seeking to raise the production limit (from 20,000 to 40,000 barrels) for Class 3 breweries, has passed the legislature and been signed into law.  The bill also provides for self distribution up to 3,000 barrels annually.

California
The City of San Francisco is considering levying a tax on alcohol at the wholesale level.  Discussions have put the possible tax on beer at 5 cents per 12 ounce serving.

Delaware
H.B. 212 (http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/HB+212/$file/
legis.html?open), seeking to raise alcohol taxes by two cents per 12-ounce serving of beer, three cents per 5-ounce serving of wine, and 15 cents per bottle of liquor, failed to pass the House of Representatives.

Massachusetts
The Governor has signed a budget that includes a provision raising the sales tax from 5% to 6.25% and removing the sales tax exemption on alcohol.

Under consideration by a joint committee, S.B. 400 (http://www.mass.gov/legis/bills/senate/186/st00pdf/st00400.pdf) expands the sale of products of farmer breweries.

Maine
Gaining the Governor's approval, H.B. 353 (http://www.mainelegislature.org/legis/bills/bills_124th/chapters/PUBLIC459.asp) authorizes an off-premise retail licensee stocking at least 100 different brands of malt liquor to conduct taste testing of malt liquor on that licensee's premises.

Also signed into law by the Governor, House Bill 878 (http://www.mainelegislature.org/legis/bills/bills_124th/chapters/PUBLIC395.asp) requires that chain restaurants shall state on a food display tag, menu or menu board the total amount of calories per serving of each food and beverage item listed for sale on the food display tag, menu or menu board.

New Jersey
Senate Bill 2098 (http://www.njleg.state.nj.us/2008/Bills/S2500/2098_U1.htm) provides that on premise and off premise licensees may hold beer, wine and spirits tasting events.  The bill has passed the Senate.

New York
Passing the Assembly, A.B. 2325 (http://assembly.state.ny.us/leg/?bn=A02325&sh=t) seeks to promote micro breweries in New York State by authorizing such breweries to sell beer in a sealed container for off-premises consumption at fairs and farmers' markets.

Oregon
Following House approval and a public hearing conducted in the Senate, House Bill 3122 (http://www.leg.state.or.us/09reg/measures/hb3100.dir/hb3122.a.html) has died on adjournment of the legislature. The legislation sought to allow holders of on-premise sales licenses to obtain verification of the capacity of pint glasses used at the licensed premises for draught malt beverages and to obtain a display sticker from Oregon Liquor Control Commission if the glasses hold a pint of malt beverage under standard conditions.

Tennessee
S.B. 206 (http://www.capitol.tn.gov/Bills/106/Chapter/PC0290.pdf)  increases from 5,000 to 25,000 barrels per year the amount of beer that a manufacturer may sell as a retailer.  The measure has been signed into law by the Governor.

Overview

SELF-DISTRIBUTION
The American consumer should have access to the widest range of domestically produced beers made available by licensed breweries. The success or failure of a beer should depend on consumer demand, rather than artificial barriers to distribution.   The absence of a willing and/or viable wholesaler should not prevent a small brewer's products from reaching a retailer who is willing to sell them.

We support state laws that respect and enhance consumer choice in the marketplace. We believe that to provide the greatest ongoing choice for consumers, small brewers need the right to act as their own wholesaler and be allowed to distribute to retailers. Such brewers should be subject to all laws and taxes applicable to both brewers and wholesalers.

FRANCHISE LAWS / ACCESS TO MARKET
We believe that small brewers and wholesalers should be free to establish enforceable contracts between the parties that both parties agree are fair and equitable. Franchise laws were enacted to protect wholesalers from the undue bargaining power of their largest suppliers. Applying those laws to relations between small brewers and wholesalers is unfair and against free market principles.

Where franchise laws exist, we believe that any brewer contributing less than 20% of a wholesaler's volume should be exempted from those laws and free to establish a mutually beneficial contract with that wholesaler. Without the leverage inherent in being a large part of a wholesaler's business, a small brewer and wholesaler can negotiate a fair contract at arm's length.

INDEPENDENT WHOLESALERS
We support the independence of wholesalers and believe independent wholesalers are wholesalers who are contractually and economically free to allocate their efforts among the brands they sell without the undue influence of their largest suppliers.   Each brand gets the attention it deserves on its own merits in the marketplace.

EXCISE TAXES
The Brewers Association opposes excise taxes on beer as a matter of public policy. The taxes are paid by small brewers whether or not they are profitable. They are also paid by consumers regardless of income level and are historically very regressive taxes. The total amount of excise taxes paid on beer exceeds the total amount of profit in the brewing industry. Newly proposed excise taxes earmarked to fund substance abuse programs do not recognize the positive and healthful benefits of beer consumption for the vast majority of beer drinkers. Furthermore, there have been billions of dollars of excise taxes already collected that could be used to fund such programs.

UNDERAGE DRINKING & DRIVING UNDER THE INFLUENCE
Responsible enjoyment of beer can be part of a healthy lifestyle. The Brewers Association strongly opposes illegal use of our products such as underage drinking and driving while under the influence. We, as brewers, are offended by those who misuse our products. We promote education on responsible enjoyment of craft beer through programs, such as the Savor the Flavor program.