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Legislative Update

Federal
In December, the U.S. Supreme Court heard oral arguments on New York and Michigan’s law banning out-of-state vineyards from selling directly to customers via the Internet. A decision is expected by late Spring 2005.

In February, the STOP Underage Drinking Act
(S.408/H.R. 864) was re-introduced in the U.S. Senate and House of Representatives. A bi-partisan effort, the Act would implement recommendations from the National Academy of Sciences Institute of Medicine’s September 2003 report to Congress, including a media campaign, community and campus initiatives, and research.

State and Local
Arizona
In January, a bill (HB2525) was introduced in the state legislature that would increase the penalty for knowingly buying alcohol for an underage person to include suspending the buyer’s driving privileges for six months.

California
In February, State Senator Jack Scott (D-Pasadena) introduced SB148, a bill to give cities more authority to require liquor stores to comply with city zoning laws. According to The Pasadena Star News, “Under current law, cities or counties can only enforce zoning ordinances that were present when the liquor license was issued. The proposed legislation would enable cities to enforce new ordinances and also allow liquor store owners reasonable time to comply with the changes or sell.”

Colorado
State Representative Alice Madden (D-Boulder) introduced HB 05-1223 in February. The bill would allow local liquor boards to reconsider alcohol licenses for problem establishments. According to The Denver Post, when Dennis Miller of the University Hill Neighborhood Association in Boulder testified in support of the bill, he explained that this legislation would give communities the ability to go after establishments that “bait and switch”—seeking liquor licenses as family restaurants, then morphing into late-night clubs. After passing a house committee in late February, the bill now awaits a vote.

Indiana
A new open container law, HB1057, was introduced in January. The bill would remove the requirement that police must determine a driver to be impaired before issuing an open container citation. The new law would also place responsibility for an open container with the passenger who is in possession of the container.

Michigan
In November, Governor Jennifer Granholm (D) signed HB4458 into law, which allows retailers to set their own price for distilled spirits—at or above state-set prices. Bars and restaurants that serve liquor already are allowed to mark up the price of alcoholic drinks they serve. Beer and wine aren’t affected by the legislation.

Missouri
Representative Bill Deeken (R-Jefferson City) introduced HB184 in January, which would increase Missouri’s alcohol excise taxes. The additional revenue would go towards a fund for the reduction of alcohol-related problems and underage drinking.

Nebraska
In January, a bi-partisan group of representatives introduced LB592, a “Liquor Liability Act,” also known as Dram Shop Liability. It would hold taverns legally liable for serving an intoxicated person who later causes an accident or an injury.

LB598 was also introduced, to increase current alcohol excise taxes. The tax would generate about $10 million a year and would pay for substance-abuse programs.

Oregon
Diageo-Guiness USA Inc., maker of Smirnoff Ice, is suing the Oregon Liquor Control Commission for banning “malternatives” from supermarkets. “Malternatives” are a mix of malt beverage and distilled spirits. According to Oregon state regulators, these beverages have more than one-half of one percent distilled alcohol and therefore cannot be legally sold in grocery stores.

Pennsylvania
In December, Governor Edward Rendell (D) signed HB2105 into law which allows 25 percent of the 637 state wine and spirit stores to open on Sundays—up from 10 percent under current law.

South Carolina
SB0165 was introduced and sent to the Judiciary Committee in January. The bill would allow restaurants and bars to stop using minibottles and pour alcohol from larger containers. The expected outcome would be for drinks to become cheaper.

Texas
State Representative Harold Dutton (D-Houston) introduced HB428 which would change the current Texas Alcoholic Beverage Code to allow “hotel bars” to serve alcohol 24 hours a day.

Wyoming
Wyoming State Senator Tony Ross (R-Cheyenne) and Representative Jane Warren (D-Laramie) introduced a bill that would strengthen Wyoming’s open container law. The law would make it easier for police officers to enforce open container violations and bring the state up to par with federal standards.

In February, the Wyoming Senate approved HB66, which would prohibit anyone, owner or renter, from having an open house party in which alcohol or illegal drugs are possessed or consumed by minors. The bill, sponsored by Representative Colin Simpson (R-Cody), would impose a penalty of up to six months in jail and a fine up to $750, or both. Because of some changes made to the bill in the Senate, it must be returned to the House for another vote.


Public programs paid for 64% of hospitalization costs, including 38% paid by Medicare, and 19% paid by MediCal.

Charles Schwab Foundation, Institute for Social Change. The Costs of Alcohol Abuse in California: A Briefing Paper, 2004.

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