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Source: Fox News

By: Angela Logomasini

Date: September 29, 2010

The quest by wine and beer wholesalers to maintain their “middleman” role within the liquor industry is simply bad news. A bill making its way through the House (H.R. 5034) sponsored by Bill Delahunt (D-Mass.) supports wholesalers’ promises to limit consumer choice and disadvantage retailers, wineries, breweries, distilleries, and importers.

The topic is the subject of hearings before the U.S. House Judiciary Committee today. Not surprisingly, wholesalers hope this legislation will protect the “three-tier system” for distribution of alcohol, which nearly all states impose. The system requires that alcohol producers (wineries, distillers, brewers, and importers) sell only to wholesalers, who in turn market the products to retailers. It thereby bans any mutually beneficial sales between retailers (wine shops, restaurants, etc) and wineries or other producers that could enhance product selection and save money for consumers.

H.R. 5034 strikes back against market liberalization that the Supreme Court fostered with its ruling in Granholm v. Heald. In that case, the Court ruled that laws in Michigan and New York violated the Constitution’s Commerce Clause. The laws essentially banned shipments from out-of-state wineries to New York and Michigan residents, but allowed the wineries in those states to ship wine. The court held that any such regulations must apply equally to in-state and out-of-state businesses.

Since then, many states have begun allowing direct-to-consumer wine shipping. Richard Mendelson, wine lawyer and author of “From Demon to Darling: A Legal History of Wine in America,” notes: “Within two and half years of ‘Granholm,’ eleven states had leveled up, and none had leveled down completely. Those states had to open their borders to all direct shipping or close them entirely.” This increased freedom has been a boon to consumers who otherwise would have fewer options. It also helps wineries who have trouble marketing specialty products in a world of increasing competition and consolidation among wholesalers.

But the logic of “Granholm” should also apply to retailers, who are now fighting in federal courts for the right to skip the wholesaler tier. The nation’s largest wine retailer-Costco-has gained a partial victory in Washington state and is helping advance a ballot initiative there that would basically break Washington state’s three-tier mandates.

Wholesalers fear the spread of such deregulation. “Direct-to-consumer shipments will never drive a wholesaler out of business, but the deregulation it is fostering will,” noted Craig Wolf of the Wine and Spirit Wholesalers of America in a 2007 issue of The American. Accordingly, wholesalers have been spending millions in PAC donations to members of Congress, pushing them to pass H.R. 5034. The bill would exercise Congress’s constitutional power to regulate commerce by explicitly allowing states to impose regulations would otherwise violate the Commerce Clause.

As introduced, the bill would have allowed states to pass pretty much any regulation they desired, but a scaled-down substitute version that Rep. Delahunt is expected to offer today remains problematic. Tom Wark of the Specialty Wine Retailers Association points out that this draft opens the door to a host of directly discriminatory state regulations focused on retailers, which could ultimately limit consumers’ online buying options.

But consumers who buy direct from wineries or breweries should remain concerned. In addition to curbing freedoms for retailers, the new draft could also bolster state laws that indirectly discriminate against producers. In other words, it might allow discriminatory tax policies or other regulations that would make direct shipping less viable.

Not only is this legislation bad for consumer freedom, it isn’t necessary to “save” the wholesaler business. Wholesalers will not disappear without a mandated three-tier system. In fact, wholesalers do well in places like California and Washington, D.C. where there are no such mandates. Wholesalers exist because they provide a valuable service in getting products to market-but they should have to compete for their place like everyone else.

A key reason the founders drafted the Constitution was to prevent trade impediments between states and maximize individual freedom. Using Congress’s authority under the Commerce Clause to impede commerce simply to serve one-special interest is pure folly.

Angela Logomasini, Ph.D. in American Politics, is a Senior Fellow at the Competitive Enterprise Institute.

Learn more about state alcohol laws here.

Source: Freep.com

By: Christ Christoff and Kathleen Gray

September 30, 2010

For drinkers, it was Christmas in September when Legislature voted to allow liquor sales Sunday mornings and Christmas Day.

Now, the question is: Will Gov. Jennifer Granholm be the Scrooge? Her spokeswoman Liz Boyd said the governor has concerns to resolve before she would sign the bill. It would also allow wine and beer tasting at grocery and party stores and others with package liquor sales licenses.

The changes had been sought for years by owners of bars and liquor retailers. Alcohol could be sold from 7 a.m. Sundays to 2 a.m. Monday mornings with a special $160 permit. Currently, liquor sales are banned Sundays until noon.

The bill also would allow beer, wine and liquor sales up to midnight Christmas Eve and after noon on Christmas Day. Liquor sales are now prohibited after 9 p.m. Christmas Eve and all day on Christmas.

Ellen Belanger, manager of the Park Bar near Comerica Park and Ford Field in Detroit, said the new law could be a boon for business on game days. “They’d be in here early for their Bloody Marys and mimosas,” she said.

Learn more about your state’s alcohol laws here.

Source: Detroit Free Press

BY LOYCE LESTER AND CURTIS WILLIAMS

Jun 30th

“Don’t let the sparkle and smooth taste of wine deceive you. For in the end it bites like a poisonous serpent; it stings like a viper.”

That’s a saying from Proverbs. Yet Jesus turned water into wine when it ran out at a wedding. Wine is taken as a remembrance of our savior’s blood, yet too much wine is the downfall of kings.

Mountains of biblical scholarship, debating the meaning of Hebrew and Greek words, have been devoted to parsing the good book’s stance on alcohol. However, Americans have generally agreed that moderation is the key to healthy, moral living.

Our local regulations on alcohol reflect that view. Beer, wine and spirits may be only sold in licensed locations at appropriate hours, and drinking too much will land you in jail, particularly if you decide to get behind the wheel. These laws are the embodiment of our local values and serve to protect innocent citizens from the poor judgment caused by drunkenness.

These laws and our values are now under attack, besieged by corporate greed. Unfortunately, Michigan is on the front lines.

Major brewers and wineries as well as big-box retailers have filed a barrage of lawsuits against state and local governments that threaten to unravel the very alcohol regulations that keep our streets safe, keep our children healthy and protect our values. Without federal legislation clarifying the states’ legal authority to regulate alcohol sales (known as the Comprehensive Alcohol Regulatory Effectiveness Act, or CARE), profit-hungry corporate interests will inevitably overturn these laws and invite a new epidemic of alcoholism in America.

Michigan has been at the epicenter of this showdown between community values and the foreign-owned alcohol producers and giant retailers. A Supreme Court ruling, Granholm v. Heald, has been intentionally mischaracterized by producers and retailers as calling into question the states’ 21st Amendment right to regulate the sale and distribution of alcohol in favor of businesses’ right to engage in unrestricted interstate commerce.

Citing the Granholm decision, retailers, brewers and wineries have gone on the legal offensive, filing 26 separate lawsuits in an effort to overturn state and local laws regulating alcohol. As recently as 2008, a Florida-based retailer successfully sued the Michigan government and overturned more regulations regarding the distribution of alcohol. The judge in this case cited the Granholm decision.

The result of repealing these regulations is clear. Retailers and brewers will sell more alcohol at often cut-rate prices to more people, including minors.

The current laws establish a strict regime in which the state can effectively monitor alcohol sales, ensure that alcohol is safe, distributed to responsible retailers, restaurants and bars, and not sold to minors. These laws also establish an independent third party

- wholesalers – that block incentives from retailers and brewers to encourage binge drinking through deep discounts or even loss-leading practices.

Without these laws, alcohol will be sold just like bottled water.

Why wouldn’t we desire such an outcome? Retailers and brewers would make larger profits without being bothered by regulations. However, studies have shown that increasing the availability of alcohol encourages more irresponsible drinking, including underage drinking. Studies have also shown that the more outlets selling alcohol, the greater the number of alcohol-related violence and automobile accidents.

England provides the most frightening case study. After virtually eliminating alcohol regulations in 2005, alcohol became widely available at heavily discounted prices. Often, beer was priced below water in grocery stores. As a result, police have reported higher rates of alcohol-related violent behavior, underage drinking and binge drinking.

Our ministries put us in daily contact with the least fortunate in our communities, many of whom battle serious alcohol-related problems. We work tirelessly to provide a loving, caring, safe haven for people struggling with alcohol and drug addiction, helping them to understand that they are loved, that God forgives them, and that they can rebuild their lives. It is difficult to imagine that our court system would allow the profit motives of large corporations to grow the rolls of those afflicted by the terrible disease of alcoholism.

State governments are no match for the well-funded legal assault that is bent on alcohol deregulation. Federal legislation is essential. By clarifying the states’ 21st Amendment right to regulate alcohol, the CARE Act of 2010 would stop the legal onslaught that threatens to plunge many more Americans into alcoholism.

Our health, future and community values are dependent on this legislation.

The Rev. Dr. Loyce Lester is pastor of Original New Grace Baptist Church in Detroit. The Rev. Curtis Williams is pastor of Aijalon Baptist Church in Detroit.

Source: Detroit Free PressBY LOYCE LESTER AND CURTIS WILLIAMSJun 30th”Don’t let the sparkle and smooth taste of wine deceive you. For in the end it bites like a poisonous serpent; it stings like a viper.”That’s a saying from Proverbs. Yet Jesus turned water into wine when it ran out at a wedding. Wine is taken as a remembrance of our savior’s blood, yet too much wine is the downfall of kings.Mountains of biblical scholarship, debating the meaning of Hebrew and Greek words, have been devoted to parsing the good book’s stance on alcohol. However, Americans have generally agreed that moderation is the key to healthy, moral living.Our local regulations on alcohol reflect that view. Beer, wine and spirits may be only sold in licensed locations at appropriate hours, and drinking too much will land you in jail, particularly if you decide to get behind the wheel. These laws are the embodiment of our local values and serve to protect innocent citizens from the poor judgment caused by drunkenness.These laws and our values are now under attack, besieged by corporate greed. Unfortunately, Michigan is on the front lines.Major brewers and wineries as well as big-box retailers have filed a barrage of lawsuits against state and local governments that threaten to unravel the very alcohol regulations that keep our streets safe, keep our children healthy and protect our values. Without federal legislation clarifying the states’ legal authority to regulate alcohol sales (known as the Comprehensive Alcohol Regulatory Effectiveness Act, or CARE), profit-hungry corporate interests will inevitably overturn these laws and invite a new epidemic of alcoholism in America.Michigan has been at the epicenter of this showdown between community values and the foreign-owned alcohol producers and giant retailers. A Supreme Court ruling, Granholm v. Heald, has been intentionally mischaracterized by producers and retailers as calling into question the states’ 21st Amendment right to regulate the sale and distribution of alcohol in favor of businesses’ right to engage in unrestricted interstate commerce.Citing the Granholm decision, retailers, brewers and wineries have gone on the legal offensive, filing 26 separate lawsuits in an effort to overturn state and local laws regulating alcohol. As recently as 2008, a Florida-based retailer successfully sued the Michigan government and overturned more regulations regarding the distribution of alcohol. The judge in this case cited the Granholm decision.The result of repealing these regulations is clear. Retailers and brewers will sell more alcohol at often cut-rate prices to more people, including minors.The current laws establish a strict regime in which the state can effectively monitor alcohol sales, ensure that alcohol is safe, distributed to responsible retailers, restaurants and bars, and not sold to minors. These laws also establish an independent third party- wholesalers – that block incentives from retailers and brewers to encourage binge drinking through deep discounts or even loss-leading practices.Without these laws, alcohol will be sold just like bottled water.Why wouldn’t we desire such an outcome? Retailers and brewers would make larger profits without being bothered by regulations. However, studies have shown that increasing the availability of alcohol encourages more irresponsible drinking, including underage drinking. Studies have also shown that the more outlets selling alcohol, the greater the number of alcohol-related violence and automobile accidents.England provides the most frightening case study. After virtually eliminating alcohol regulations in 2005, alcohol became widely available at heavily discounted prices. Often, beer was priced below water in grocery stores. As a result, police have reported higher rates of alcohol-related violent behavior, underage drinking and binge drinking.Our ministries put us in daily contact with the least fortunate in our communities, many of whom battle serious alcohol-related problems. We work tirelessly to provide a loving, caring, safe haven for people struggling with alcohol and drug addiction, helping them to understand that they are loved, that God forgives them, and that they can rebuild their lives. It is difficult to imagine that our court system would allow the profit motives of large corporations to grow the rolls of those afflicted by the terrible disease of alcoholism.State governments are no match for the well-funded legal assault that is bent on alcohol deregulation. Federal legislation is essential. By clarifying the states’ 21st Amendment right to regulate alcohol, the CARE Act of 2010 would stop the legal onslaught that threatens to plunge many more Americans into alcoholism.Our health, future and community values are dependent on this legislation.The Rev. Dr. Loyce Lester is pastor of Original New Grace Baptist Church in Detroit. The Rev. Curtis Williams is pastor of Aijalon Baptist Church in Detroit.

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