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Jorge Castillo 415/257-2488

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Public Health Advocates Slam Deceptive
Maryland Alcohol Bill

SAN RAFAEL, Calif., March 27, 2008 /PRNewswire via COMTEX/ -- California-based Marin Institute initiated an Action Alert today in an effort to stop a bill in the Maryland legislature that would change how youth-targeted alcopops -- sweetened alcoholic beverages -- are taxed and distributed.

Under current Maryland law these beverages should be classified as distilled spirits, but industry prefers to call them "flavored malt beverages" to take advantage of lenient beer regulations, including much lower tax rates. The pending Maryland bill would enable companies such as Diageo (maker of top-selling Smirnoff Ice) to codify this deception and de facto tax evasion.

"It's the same industry ploy that youth and advocates stopped in California," said Marin Institute executive director Bruce Livingston. "When alcopops are properly taxed at higher rates and kept out of convenience stores, we reduce youth access. Companies like Diageo and Anheuser-Busch hope to hook lifetime consumers on their dangerous products."

In 2006, Governor Arnold Schwarzenegger vetoed a very similar industry-sponsored bill. Meanwhile, last year, the California Board of Equalization agreed that alcopops are indeed distilled spirits and thus will be taxed at a much higher rate than beer, putting them further beyond the reach of underage drinkers. Maine also categorizes alcopops as distilled spirits.

Just last week, following California and Maine's lead, the state of Utah decided alcopops were too dangerous to youth and ordered that sales be limited to state-run liquor stores. Nationwide, financially strapped states are quickly recognizing the benefits of raising new revenue through properly taxing alcopops, while simultaneously reducing the costs of alcohol-related harms.

"Big Alcohol is running scared because they realize their game of deception is unraveling," said Marin Institute director of research and policy Michele Simon. "The industry is attempting to rewrite the law, state by state, to ensure their youth-friendly alcopops remain cheap and available."

It's no coincidence that Maryland bill, HB 879, was authored by Mary Ann E. Love, chair of the House Alcoholic Beverages Subcommittee and recipient of more campaign contributions in 2006 from the alcohol industry than from any other source. Only the Speaker of the House of Delegates, Michael Busch, received more money from Big Alcohol.

"We are hopeful that people who truly care about the young people of Maryland will help us stop this deceptive legislation," added Livingston. "Dishonest industry profits should not be placed above the health and safety of Maryland youth."