Law

State Beer Excise Tax Rates As Of 2011

by Jay Brooks on March 15, 2012 · 1 comment

The Tax Foundation, a Washington think tank dedicated to al things taxable, had last week for their weekly Monday Maps on the Tax Foundation’s blog an infographic on State Beer Excise Tax Rates as of September 1, 2011. Alaska has the highest tax rate and Wyoming the lowest. And, of course, the chart doesn’t include the federal excise taxes breweries have to pay or any local taxes, either. Still, it’s always interesting to see the differences laid out on the map.

Obviously, it’s hard to read at this size, but you can check it out full size at the Tax Foundation blog.

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State Alcohol Administrators Slam Alcohol Justice

by Jay Brooks on January 27, 2012 · 2 comments

in Editorial,News,Politics & Law

You probably knew that each state has some form of an ABC, an alcohol control organization that after Prohibition was created to administer their state’s laws regarding alcohol. Not surprisingly, they also have an organization where the professionals in these state organizations can get together and share information, how they do things, and generally learn from and help one another be better at their jobs. It’s called the National Conference of State Liquor Administrators, or NCSLA. Their stated purpose is:

The purposes of the Association shall be to promote the enactment of the most effective and equitable types of state alcoholic beverage control laws; to devise and promote the use of methods which provide the best enforcement of the particular alcoholic beverage control laws in each state; to work for the adoption of uniform laws insofar as they may be practicable; to promote harmony with the federal government in its administration of the Federal Alcohol Administration Act; and to strive for harmony in the administration of the alcoholic beverage control laws among the several states.

They have an annual convention where they get together, along with other events throughout the year. Also, in addition to the obvious members, it’s also open to distributors, suppliers, retailers, law firms, health organizations and anyone else with an interest in the administration of alcohol at the state and federal level.

Well. Earlier this week, Alcohol Justice posted a press release entitled Big Alcohol Dominates Alcohol Regulator Meeting, which touted an article in the new edition of the journal Addiction that they claim “Documents Unhealthy Influence of Alcohol Industry over State Regulators.” Not surprisingly, the author of the article, Sarah M. Mart, is the Director of Research for Alcohol Justice. So they created the propaganda, then promote it is as if it’s news and/or impartial information and it’s not surprising that it just happens to support their agenda. Is the concept of a self-fulfilling prophecy lost on them?

In this case, the article, Top priorities for alcohol regulators in the United States: protecting public health or the alcohol industry?, purports to examine the “NCSLA Annual Meeting [that] took place 20–24 June 2010 in New Orleans, Louisiana.” Smart claims as a “finding” that “[m]ore than two-thirds (72.2%) of the 187 conference attendees were from alcohol producers, importers, wholesalers, retailers or their attorneys. Nearly two-thirds (65.0%) of the 40 panelists were from the alcohol industry. The author of this paper was the only attendee, and the only panelist, representing public health policy.”

In the press release, Alcohol Justice spins it this way.

In a peer-reviewed article in the February 2012 issue of Addiction, Sarah Mart, director of research at Alcohol Justice, has documented the alcohol industry’s excessive involvement in a 2010 annual conference of state liquor administrators.

“With alcohol use being the third leading preventable cause of death in the U.S, you would think state regulator meetings would focus on the most effective and cost-effective ways to reduce alcohol-related harm,” stated Mart. “But this event was really about the industry’s agenda.”

Mart’s article details her experience at the annual National Conference of State Liquor Administrators (NCSLA), which took place in June 2010. More than two-thirds (72%) of the 187 meeting attendees, and 65% of the panelists, were from the alcohol industry. The rest represented state alcohol control systems and federal government agencies. Mart was the only participant representing public health policy.

“The NCSLA is dominated by the global companies that produce, import, distribute and sell alcohol,” said Mart. “Not surprisingly, the Association’s liquor control agenda lacks public health considerations.”

On average, 79,000 deaths annually are attributed to alcohol consumption. In 2005, there were over 1.6 million hospitalizations and 4 million emergency room visits for alcohol-related causes. Alcohol-related costs to state budgets are staggering, yet this trade organization of state regulators, which could play an important role in reducing the harm, has no stated position supporting public health.

“Big Alcohol panelists actually sent regulators a warning message: Be industry-friendly. Don’t rock the boat of commerce with public health concerns, or your job may be on the line,” reported Mart. “The Federal officials that were present also spoke about supporting the industry, instead of protecting public safety. That was a disappointment.”

Sounds bad, right? Well, the NCSLA sees it a different way. They’ve now responded with their own press release telling the other side of this story.

NCSLA, The Inclusive Crucible Of Alcohol Policy Issues, Dismayed By Inaccuracies Of “Sour Grapes”

When requested to comment on the recent press release from an entity named “Alcohol Justice”(formerly known as The Marin Institute), NCSLA President William A. Kelley, Jr. today said,

“The National Conference of State Liquor Administrators (“NCSLA”) has for decades been the only organization of the 50 states with the sole clear, transparent and inclusive purpose of effectively controlling alcoholic beverages. That purpose cannot be effective without input from all interested parties. Indeed since this Nation was founded, the fundamental principle of American government has been to make decisions with the consent of the governed. That requires substantive communication with and consideration of the concerns and competing interests of those who would be subject to regulatory action by the federal and state government. This is the hallmark of a real democracy.

The NCSLA is dismayed at the conduct of any organization which has chosen to re-brand itself and seeks to create relevance for its new brand by pandering for headlines, while taking no real, affirmative action to support and defend the federal and state beverage alcohol regulators in the executive, judicial and legislative branches of state and federal government. These federal and state regulators stand alone as they fulfill their lawful obligations to strike a balance between the protection of the common good and the service of the public demand for the different sorts of alcoholic beverages made available by this legitimate, responsible industry.

The agenda of self-promotion by “Alcohol Justice” is obvious and unavailing. The telling fact is that the now re-branded entity formerly known Marin Institute has repeatedly chosen not to become a member of the NCSLA despite the numerous invitations that have been extended to them and the years of courtesies from the NCSLA they have enjoyed in the form of expense-paid attendance at NCSLA conferences and participation on NCSLA panels. It is equally telling that this statement comes when further special treatment has been denied this re-branded entity while at the same time it was directly invited and encouraged to join the NCSLA, take a seat at the proverbial table, but on the same terms as those long met by other public health and public advocacy groups. It is disheartening when any entity with substantial financial resources, yet without the economic hardships endured for years by state beverage alcohol regulators, appears content to do nothing.

The silence of this re-branded entity is deafening in the national dialogue that continues as Congress, The President of the United States, the people of the state of Washington and the representatives of the people in all the 50 states grapple with the modern issues of beverage alcohol control. This struggle is the American legacy of that failed experiment named “Prohibition.”

I look forward to the honor of leading the NCSLA when it convenes in Washington D.C. to continue its efforts in fostering principles and techniques of balanced alcoholic beverages control. Unfortunately it appears that this re-branded entity chooses to continue to sit on the sidelines in its complacency, fermenting in its sour grapes. Perhaps sometime soon the reality will be recognized that much is expected from those who are given much.”

Nicely said, Mr. Kelley. Nicely said.

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Wisconsin Homebrewing Under Fire

by Jay Brooks on January 12, 2012 · 4 comments

in Beers,Editorial,News,Politics & Law

If you’re a homebrewer in Wisconsin, be careful not to leave the house with your beer. When they call it home brew, they really mean it. Apparently there’s a growing strict interpretation of the state’s laws regarding homebrewing — similar to what went down in Oregon recently — that could prevent homebrewers from taking their beer to competitions and homewbrew club meetings, or indeed just sharing it with friends. I first heard about it from Jason Heindel, the President of the Beer Barons of Milwaukee Cooperative, a local beer enthusiast and homebrew club. He’s written up a nice overview of what’s going on, which you can read below, modified slightly by me for the web:

“As some of you may be aware, there have been some developments in the past year with how the WI Department of Revenue interprets the current State Statues relative to homebrewing. The current statutes can be found here. If you take a strict interpretation of those statues, the only place one can make or enjoy your own home brewed beer is at your home or farm. This means you could not legally brew a beer and hand it over your fence to your neighbor. The Wisconsin statues are outdated and not conforming with the overall Federal statutes regarding homebrewing. One of the highlights of the Federal Statute is the following section:

§ 25.206 Removal of beer.

Beer made under §25.205 may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions such as homemaker’s contests, tastings or judging. Beer removed under this section may not be sold or offered for sale.

All of those activities are not allowed by Wisconsin statute. So the State Fair beer and wine competitions would not be allowed, tastings and homebrew club meetings would also not be allowed.

A group was formed earlier this year to address these problems. The AHA formed the Wisconsin Homebrewer’s Alliance. The group was comprised of a member from as many homebrew clubs as we could find contacts for, homebrew shop owners, etc. This group has worked to introduce legislation to the Wisconsin Senate to correct these deficiencies. We have been asked to voice our support to our State Senators and Assembly members in support of this legislation. Take a look at the proposed legislation.

Now is the time for all Wisconsin Homebrewer’s to take action and ask for your representative’s to support this bill. Below is an except from an email to the Wisconsin Homebrewer’s Alliance from 1/5/2012:

‘Sen. Ellis’s office and a “Dear Colleague’ letter is going out within minutes asking for co-sponsorship of our legislation. The co-sponsorship period is for 2 weeks starting from today. So, now is the time for all of our memberss to contact their respective Clubs to get them to contact both of their legislators. The most sponsors that we can get the better. The legislation is LRB 3101 The Ellis/Kaufert legislation. We can also contact breweries, distributors, homebrew shops, etc.

Dan Grady, who’s spearheading the legislation, did give Heindel some words of warning. ‘Time is running short. The January floor period is taken up already leaving only February and March. The legislature is going to shut ASAP due to the recalls.’”

Wow, that’s not good. If you live in Wisconsin and want to see homebrewing continue to flourish, find your local legislators and contact them immediately.

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Hammurabi: First King Of Beer

by Jay Brooks on December 23, 2011 · 1 comment

in Beers,Just For Fun,Politics & Law

I kept forgetting to post this nice piece about King Hammurabi, the Babylonian ruler responsible for mankind’s first set of laws, known as the Hammurabi Code. It ran in the San Francisco magazine Drink Me, in their October 2011 issue. The article, Hammurabi: The King Of Beers, goes into some deatil about the laws in the Hammurabi Code dealing with beer:

The Code contains dozens of edicts concerning the growing, harvesting, and sale of grain. Thus it pertains to beer, since grain had been domesticated and farmed for only two reasons:beer and bread. But the laws which deal specifically with those happy suds are numbers 108 through 111.

Law 108 reads as follows: “if a tavern-keeper (female) does not accept corn according to gross weight in payment of drink, but takes money, and the price of the drink is less than that of the corn, she shall be convicted and thrown into the water.” There are a couple of important things to clarify here. First, it is of interest that the regulation goes out of its way to specify that the hypothetical tavern-keeper is female.

In ancient Babylon, almost all tavern-keepers (not to mention brewers, generally) were women.

Men hunted and made war; women grew food and made beer. And second, “shall be… thrown into the water” does not mean that the offending tavern-keeper was merely tossed in the nearest river and left to sputter. It meant that the guilty party was thrown into the nearest river and held there until she stopped sputtering. Additions to Babylonian law made after Hammurabi’s death did away with the drowning of offending barkeeps and replaced it with mutilation of the woman’s breasts. Sheesh…

Like most despotic rulers, Hammurabi was seriously paranoid that his subjects were plotting against his authority. One of the central meeting places for average citizens in Babylon was the beer hall. These were, or were thought to be, hotbeds of sedition, which inevitably led to the creation of Law 109: “if conspirators meet in the house of a tavern-keeper, and these conspirators are not captured and delivered to the court the tavern-keeper shall be put to death.” The method of execution favored here was to drown the wrongdoer in a barrel of her own beer. Given the amount of political sniping that goes on in our bars today, we can be thankful (I think) that Law 109 has gone the way of the dodo bird.

And then there were the nuns. Called “sisters of god,” they were holy women dedicated to one of the numerous gods that populated Babylonian mythology. The nuns were expected to behave according to a quite rigid set of moral protocols, and the punishments for failing to do so were, to say the least, horrifying. As an example we need look no further than Law 110: “if a sister of a god open a tavern, or enter a tavern to drink, then shall this woman be burned to death.” Given that the Law specifically prohibits the sisters from not only drinking in a beer house, but going into business as a beer entrepreneur, we can only imagine that these actions were routinely undertaken by Babylon’s holy ladies. And the menfolk must have really hated them for breaking with the norm. Burning a woman alive for having a drink? Wow.

The final Law governing alcohol is 111, and it reads thusly: “if an inn-keeper furnish sixty ka [a unit of measure similar to a bushel] of drink to the city, she shall receive fifty ka of corn at the harvest.” It is a rather dull little edict; Babylonian capitalism in action. But at least no one gets drowned or burned.

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David vs. Goliath: Jester King Wins Partial Victory

by Jay Brooks on December 20, 2011 · 1 comment

in Breweries,News,Politics & Law

You may recall that in late October Jester King Sued Texas Over Antiquated Beer Regulations. I just got a press release from Jester King Craft Brewery that the judge in the case has ruled in their favor on their first amendment claims, though he did reject their claims under the Equal Protection Clause and the Commerce Clause. Here’s the news:

Yesterday afternoon, Judge Sam Sparks of the United States District Court for the Western District of Texas issued his final judgment on the case that Jester King Brewery and our two co-plaintiffs, Authentic Beverage Company and Zax Restaurant & Bar, filed against the Texas Alcoholic Beverage Commission. With respect to all of the First Amendment challenges to the current state law, he ruled in our favor, declaring the statutes and TABC rules in question unconstitutional and therefore invalid. Congratulations and many thanks to our attorneys, Jim Houchins of Houchins Law and Pete Kennedy of Graves Dougherty Hearon & Moody for taking on this case and for all of the hard work that they put in. Thanks also to Pete’s firm for supporting his efforts and to Jim’s associate, Rachel Fisher, for all of her hard work and diligent research.

As of result of yesterday’s ruling, beer in Texas may now be labeled as “beer” and ale may now be labeled as “ale”, regardless of alcohol content. Breweries and distributors are also no longer prohibited from independently telling consumers where their products may be purchased, or from communicating truthful and accurate information about their alcohol content. That means Jester King will now be able to add a “Where to Buy” section to our website, as will all other breweries selling beer in Texas.

“In a remarkable (though logically dubious) demonstration of circular reasoning” Judge Sparks writes in his ruling, “TABC attempts to defend the constitutional legitimacy of the Code through an appeal to the statutory authority of the Code itself.” Referring to the required use of the terms “beer”, “ale”, and “malt liquor”, he writes “TABC’s argument, combined with artful legislative drafting, could be used to justify any restrictions on commercial speech. For instance, Texas would likely face no (legal) obstacle if it wished to pass a law defining the word ‘milk’ to mean ‘a nocturnal flying mammal that eats insects and employs echolocation.’ Under TABC’s logic, Texas would then be authorized to prohibit use of the word ‘milk’ by producers of a certain liquid dairy product, but also to require Austin promoters to advertise the famous annual ‘Milk Festival’ on the Congress Avenue Bridge.’”

We were disappointed, but not too surprised, that Judge Sparks ruled against our claims that Texas’s disparate treatment of breweries and brewpubs violated the Equal Protection Clause and that its treatment of foreign breweries violated both the Equal Protection Clause and the Commerce Clause. The TABC never gave any reason why Texas should be able to prohibit craft brewers from selling beer to customers on-site, while allowing wineries to do so, or why Texas should be able to favor foreign wineries over foreign breweries, and Judge Sparks did not speculate on why that might be. But the legal standards are different and more demanding for challenges brought under the Equal Protection Clause than the First Amendment, and we were unable to persuade Judge Sparks to strike down these discriminatory laws. We were encouraged, however, by Judge Sparks’s observation that “The State of Texas is lucky the burden of proof was on [the Plaintiffs] for many of its claims, or else the Alcoholic Beverage Code might have fared even worse than it has.”

We’re pleased to have helped to bring about at least a few long overdue changes in the antiquated and often inconsistent Texas Alcoholic Beverage Code, but small brewers still face many unjust and unnecessary obstacles that need to be removed before we can stand on equal footing with Texas winemakers and brewers in other states. Measurable progress was made with yesterday’s decision, but much more is still needed. We don’t yet know what, if anything, will happen next on the legal front. That’s something that we’ll need to discuss with our attorneys. In the meantime, though, it’s not too early to start thinking about the 2013 legislative session, with the hope that this case will help to bring some momentum for further change. For the first time, Texas consumers finally have a well-organized grassroots organization that’s working to modernize the Beverage Code. We, at Jester King Craft Brewery, will continue to do everything we can to support the efforts of Open the Taps and we encourage everyone who is reading this to do the same.

It’s a start. Congratulations to Jester King.

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Christmas Beer Bans

by Jay Brooks on December 12, 2011 · 2 comments

in Beers,Editorial,Politics & Law

With Christmas falling on a Sunday this year, apparently more than half of the states still have antiquated blue laws on their books, restricting alcohol sales on Sundays, Christmas or both. As of about a year ago, at least fourteen states still enforced some kind of Sunday restriction. But according to a report today on OpenMarket.org entitled Christmas Liquor Bans: Is Your State on the List?, over half of the fifty states, plus D.C., still have some sort of restriction that will effect people in those states’ ability to buy a drink this Christmas. Happily, California’s not on the list, but with 27 places listed, that’s a lot of people who can’t get a drink this December 25. If you live in one of those jurisdictions, be sure to stock up early.

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Jester King Sues Texas Over Antiquated Beer Regulations

October 25, 2011

The Jester King Craft Brewery in Austin, Texas, is my new hero, but then I’m a fan of their Don Quixote kind of crazy. The windmill they’re currently tilting at is the Texas Alcoholic Beverage Commission (TABC). Like most states, and the Federal government, most of the laws regarding alcohol were written in the months [...]

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Craft Beer: A True Underdog Story

October 21, 2011

Here’s a fun video about craft beer’s struggles to get to market. With a hat tip to Brian Stechschulte at Bay Area Craft Beer, it’s a student film by a Michael Jolly, done for his “Motion Graphics class. It’s an animated info graphic concerning American Craft Beer. I created all artwork, narration, and animation myself. [...]

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California Legislative Update

August 4, 2011

There’s been a flurry of activity in California’s political power center lately, with a couple of new bills signed by governor Jerry Brown in Sacramento this week. Tasting Room Bill (AB 1014) The Tasting Room Bill makes it easier for breweries to serve samples of their beer without having to comply with all the same [...]

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Minnesota Government Shutdown Also Stops Beer Production In State

July 13, 2011

Here’s a weird consequence of our stunted economy; when the state government in Minnesota shut down July 1, MillerCoors “had 39 ‘brand label registrations’ that expired last month, and the employees who process renewals were laid off when state government shut down July 1 in a budget dispute,” according to an AP story published today [...]

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U.S. Senate Establishes Small Brewers Caucus

June 20, 2011

The Brewers Association (BA) announced today that the United States Senate established a Senate Small Brewers Caucus. The new Caucus was founded by Senators Max Baucus (D-Mont.) and Mike Crapo (R-Idaho). From the press release: In a Dear Colleague letter, Senators Baucus and Crapo noted, “In recent years, the more than 1,700 craft brewers all [...]

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Wisconsin Legislature Attacks Craft Brewers

June 3, 2011

With craft beer being the only segment of the brewing industry showing strong growth, you’d think that state governments trying to fix our current economic woes would be doing everything they can to help one of the few bright spots in American business. But never underestimate the power of lobbying by interests with more money [...]

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Boycott Under Way On Beer Stocked By Alabama A-B Distributors

April 25, 2011

Free the Hops, the organization in Alabama that successfully won the fight over hard opposition to allow beer over 6% abv in the state, is calling for a boycott of both Anheuser-Busch products along with those beers distributed by A-B Houses in Alabama. The boycott is a result of A-B distributor lobbyists “blocking the Legislature’s [...]

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Old Enough To Fight, Old Enough For Beer

April 13, 2011

You probably already saw that Alaska Republican state representative Bob Lynn, a Vietnam vet from Anchorage, is proposing changing his state’s law to allow active duty servicemen to drink as well as die for their country. Seems reasonable enough, but it puts at risk millions of dollars in federal highway funding, because the national minimum [...]

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Craft Beer Bridging Senate Partisan Divide

March 10, 2011

I think I’ve mentioned before that my wife is a political news junkie. She just sent me this link from one of the most popular political websites, Politico, entitled Craft beer bridges partisan divide in Senate. It’s nice to see beer getting some mainstream attention. The Politico article is all about the introduction Wednesday of [...]

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Wisconsin Historian Compares Current State Politics To Prohibition

March 6, 2011

Here’s an interesting op-ed piece by Wisconsin historian John Gurda entitled Smashing ‘Demon Government’ in which he examines the many parallels between the current political climate in his state and the temperance movement that led to Prohibition. Thanks to Wisconsin Bulletin reader Jason H. for sending me the link. Subtitled “Walker’s small-government zeal resembles that [...]

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