Happy hour for lobbyists
For the better part of a year, trade associations and lobbyists for alcohol manufacturers have been fighting with their wholesale distributors over a bill that would strengthen states’ ability to regulate alcohol and make it harder to challenge state alcohol laws in court.
The National Beer Wholesalers Association and the Wine & Spirits Wholesalers of America are pushing hard for the legislation, which would solidify their role as industry middlemen and effectively keep regulatory fights at the state level, where they have more influence.
But drink manufacturers are opposing the bill, arguing that the bill would create a patchwork of state regulations while potentially allowing states to override federal labelling and food safety laws, among other things.
The Comprehensive Alcohol Regulatory Effectiveness Act of 2010 would declare it congressional policy that states have primary authority to regulate alcohol. The legislation was filed in April. It is widely assumed that the Republicans in the House of Representatives, where they hold the majority, will support the Care Act. The situation in the Senate was not as clear as many Democrats, including the former Speaker, Nancy Pelosi, a Democrat with ties to the wine industry, opposed it.
However, the midterm elections have shifted the composition of the Senate a bit to the right as Republicans gained seats, but Democrats will retain control of the chamber when the next Congress convenes in January 2011.
This could mean that the bill now has a better chance of passing the Senate too.
Manufacturers argue that, if the bill passes, states could more easily create regulations that make their business more expensive and create other problems. For instance, Kentucky bourbon producers have said they are concerned about whether states could pass laws creating individual standards for bourbon. The bill also eliminates a provision requiring states to regulate out-of-state alcoholic beverages the same way as in-state, something manufacturers say could lead to protectionist and anti-competitive measures. They also say the bill threatens direct shipping to consumers, protecting distributors.
Wholesalers say the bill just reinforces the rights of states to make such decisions locally.
We shall keep you posted.
