Regulating in a Climate of Deregulation
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Regulating in a Climate of Deregulation. Steven Schmidt National Alcohol Beverage Control Association Pamela Erickson Public Action Management Rob Schellhorn Alcohol and Tobacco Tax and Trade Bureau. Lessons from a Regulation Road Warrior. Pamela S. Erickson, M.A. - PowerPoint PPT Presentation
Transcript of Regulating in a Climate of Deregulation
Regulating in a Climate of Deregulation
Steven SchmidtNational Alcohol Beverage Control Association
Pamela Erickson Public Action Management
Rob Schellhorn Alcohol and Tobacco Tax and Trade Bureau
Lessons from a Regulation Road WarriorPamela S. Erickson, M.A.Public Action Management Former Executive Director, Oregon Liquor Control CommissionSymposium 21, Des Moines, IA, October 3, 2013
Hot Issues Liquor Stores v. Big Box Grocers—Same rules for all?
More outlets to make more money, sell more alcohol—No consequences?
Three tier issues—buying vertical integration, wholesale regulation enforcement
Late night entertainment districts—more money, more work for law enforcement
Anti-trust—sleeping beauty awakens
Liquor Stores v. Big Box Grocers
Indiana: Sunday sales, cold beer and “same rules for all.”
Kentucky: Maxwell Pic-Pac case. Equal protection for drug stores and grocery stores! Is there a 21st Amendment?
Pennsylvania: Beer wars…beer
specialty stores v. taverns v. grocers
Washington State: Market advantages shift to big box stores.
Alcohol specialty stores are safest venues for selling alcohol.
Let’s make more money, create more jobs!
Connecticut governor wants to expand alcohol sales
New licenses created to sell alcohol in
non-traditional spaces
Dry jurisdictions go wet
Sunday sales expands
Alcohol is a “legal product” so should be treated like any other legal product
Small changes have no consequences but create jobs and bring in more tax dollars
Three tier system challenges
Illinois: Prohibits manufacturer from owning any part of a wholesaler
Other states adopt franchise protection laws
Arizona: Extensive three-tier violations uncovered
Washington: I-1183 and other efforts weakened, but did not destroy, three-tier system.
Wholesale price restrictions rated as highly effective.
“Vibrant Night Life”
Revitalize inner cities
Create jobs, more money, more tax revenue by selling more alcohol
Law enforcement impact
Problems with public disorder, DUI, underage drinking
The “pre-drinking issue”
Is it cost/effective?
Anti-trust…asleep no more?
US DOJ files lawsuit over Anheuser-Busch/Modelo merger
DOJ requires notification when ABI intends to buy wholesaler
Mexican Federal Competition Commission limits exclusive arrangements of beer duopoly (Grupo Modelo/ABI and FEMSA/Heineken have 98% market share)
Craft beer implications
Resources for these issues www.healthyalcoholmarket.com for legal expert reports
from Kentucky Maxwell Pic-Pac lawsuit; for affidavit on vertical integration filed in ABI Illinois case.
www.alcohollawreview.org for Indiana briefs , USDOJ lawsuit against ABI and many other recent cases.
For rating of 47 alcohol policies including wholesale price policies, see: “Efficacy and the Strength of Evidence of U.S. Alcohol Control Policies,” 2013 American Journal of Preventive Medicine, Nelson et al / Am J Prev Med 2013 3;45(1):19 – 28, www.ajpmonline.org
Nightlife issues: “Dealing with alcohol-related harm and the night-time economy,” Executive Summary, Monograph Series No. 43, Australian National Drug Strategy; Responsible Hospitality Institute for best practices and case studies www.rhiweb.org.
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