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ABL Update
ABL Update: The Latest Industry News from Washington
BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR
Before I get into an update on Congress, the federal government and what American Beverage Licensees (ABL) have been working on for you, I want to take a moment to salute the TLW leaders and members who successfully led the legal charge in the fight for members’ businesses and livelihoods. Increasingly, battles in our industry are taking place in courtrooms, in addition to the Legislature.
ABL has become familiar with this phenomenon at a federal level, and I can appreciate the time and costs of what it takes to engage the Wisconsin Supreme Court. The TLW brief was an important and powerful document, and successfully represented the interests of TLW members. It is a great reminder of the scope and value of membership in the TLW. I also want to commend TLW executive director Pete Madland, TLW president Chris Marsicano and others who have been instrumental in launching the Communities Helping Empower Employers to Remain Successful (C.H.E.E.R.S.) Wisconsin charitable fund to help TLW members make it through this public health and economic crisis. Having enjoyed more than one evening over the years in TLW member establishments in Oshkosh, Madison, Milwaukee, Green Bay, De Pere, Sturgeon Bay, and other towns large and small around the state, I was proud to personally support C.H.E.E.R.S. and encourage others in our industry to do the same. The local Wisconsin tavern is a cultural institution worth fighting for. Now, onto the madness …
COVID-19
Congress has quite a busy schedule before the House breaks for summer recess on July 31. The social unrest stemming from the death of George Floyd scrambled the political and policy calculus in a significant way. Another COVID-19 relief bill — perhaps the last — may not be considered until the end of July, which is when Congress is usually jostling to clear the decks before its summer break and the start of campaign season. The path to an additional COVID-19 relief package or economic stimulus bill remains unclear, as Congressional Democrats and Republicans remain split on when and how to move legislation. The (relatively) improved recent jobs
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numbers bolstered the position of Republicans that more federal spending can wait as state and local economies reopen. For its part, the Administration, via the statements of Treasury Secretary Steven Mnuchin, signaled that it is interested in additional federal relief and monetary aid, including increasing the employee retention tax credit to help businesses keep workers on their payrolls. It’s this next and possibly final bill that ABL is working on to make sure that on-premise bars and taverns receive as much assistance as possible to recover from this crisis. Bars and taverns should be able to serve as a key part of the economic engine to bring the American economy back. ABL is working in coalition with other like-minded groups to advance initiatives that would benefit our members. Congressional leadership offices told us that policies with the broadest support — not single-issue, single-group efforts — are what is going to be included in the legislation. It is also worth noting that advocacy or lobbying in the age of COVID-19 is a different beast. Instead of in-person meetings on Capitol Hill, and attending briefings, hearings and markups, there are now Zoom meetings and digital briefings. More comments for the record, coalition letters, and general texting, calling and emailing Congressional staff is a constant. Another wrinkle is that many interest groups are creating a lot of noise by resurrecting long-term legacy issues as everyone tries to shoehorn their pet project into COVID-19 legislation. ABL pushed for and was pleased to see the passage of the Paycheck Protection Program Flexibility Act, which provided Main Street beverage alcohol businesses with greater flexibility and a more realistic timeframe to use the program as intended. This law provides ABL members who borrowed Paycheck Protection Program funds (or are considering borrowing Paycheck Protection Program funds) with a better situation for their businesses and employees. There are also other priorities that ABL is working on for its members. For example, ABL is advocating for the following administrative policies:
The Alcohol and Tobacco Tax and Trade Bureau (TTB) to approve retailers returning products to wholesalers due to COVID-19.
The Department of the Treasury and/or Small Business
Administration to allow small gaming businesses to be eligible for Paycheck Protection Program loans, allow 501(c) organizations like ABL and the TLW eligibility
for Paycheck Protection Program loans, and increase Paycheck Protection Program loan flexibility. The Department of Justice to pause the review of the American Society of Composers, Authors & Publishers (ASCAP) and Broadcast Music Inc. (BMI) consent decrees so retailers don’t have any added uncertainty to their businesses at this time. The Office of the United States Trade Representative (USTR)/Mexican Government to declare the Mexican beer industry essential so retailers have Mexican beer to sell this summer.
At the same time, ABL supports the following policies:
The Jumpstarting our Businesses’ Success (JOBS) Credit
Act of 2020 (H.R. 6776) to improve the employee retention tax credit program.
Creating liability relief to provide protections or safe harbor for businesses that work to follow applicable public health guidelines against COVID-19 exposure claims.
Providing credit and loans to small businesses, and suspending business tax filing obligations.
Making certain Paycheck Protection Program loan forgiveness is tax-free to borrowers.
Loosening the facts-and-circumstances test on business bad debt deductions.
Restoring business entertainment expense deductibility to encourage business meetings at hospitality businesses.
Providing tax assistance for unmerchantable beer, which would help beer businesses that have been stuck with beer that went out of date during forced closures.
Implementing a dedicated hospitality industry relief fund that would help hospitality businesses, including bars and taverns, get back on their feet, and weather the economic crisis and recession.
IMPAIRED DRIVING — HOUSE IS MOVING ON TRANSPORTATION REAUTHORIZATION
The House Committee on Transportation and Infrastructure scheduled a June 17 markup for the Investing in a New Vision for the Environment and Surface Transportation (INVEST) in America Act (H.R. 2). This bill would authorize highway, transit and rail programs for five years through fiscal 2025 at $494 billion.
Of note to ABL are bill provisions that relate to impaired driving. First and foremost, the bill contains no sanctions (or mandates). It continues the Driver Alcohol Detection System for Safety (DADSS) project funding in fiscal year 2021 at slightly above $5 million, but cuts funding for DADSS development completely after that. The legislation makes other changes to impaired driving programs, including allowing some states to move unspent funds to poly-use impaired driving programs and emphasizing high visibility enforcement campaigns. As for the Senate, there is currently no timeline for action, but the Senate Commerce Committee, which handles the safety title for the legislation, is closely monitoring developments in the House. For its part, ABL opposes one-size-fits-all federal mandates when it comes to impaired driving and will continue to do so as we know that state-specific, tailored programs are best for meaningfully addressing this important issue.
MIC COALITION URGES MUSIC LICENSING TRANSPARENCY
The Music Innovation Consumers (MIC) Coalition, of which ABL is an active member, provided comments to the U.S. Copyright Office (USCO) concerning regulations for the blanket license and Mechanical Licensing Collective (MLC) as called for in the Music Modernization Act (MMA). MIC would like the USCO to include performance rights organization (PRO) affiliation information in the MLC database so the public can readily identify who owns the rights to which songs, and those who engage in commerce with PROs can make licensing decisions based on up-to-date information.
The ASCAP and BMI argue that their joint database, which was announced in 2017, but the creation and launch of which remain far from certain, would suffice. However, it is unclear when the ASCAP and BMI’s joint database would be ready, and if it would allow users to download or otherwise access the entire database. And unlike a comprehensive MLC database, an ASCAP and BMI database would not encompass the licensed works of all U.S. PROs (e.g., Society of European Stage Authors and Composers or SESAC, and Global Music Rights or GMR).
Furthermore, ABL reached out to the ASCAP and BMI to see if they created any guidance for their customers with regard to payments, renewals, etc. in light of the impact COVID-19 has had on the bar and tavern business. According to the ASCAP: “We are closely monitoring how the virus is affecting our customers. If your business has been negatively impacted, please let us know by emailing us at glcs@ascap.com and we will make a note about the impact on your account to better understand how we could work together in partnership to get through this challenging time.”
BMI directs music licensees to fill out a form on the Businesses Impacted by COVID-19 webpage on the BMI website. It states: “BMI is sensitive to the fact that many businesses, large and small, are facing unprecedented challenges. Your partnership and the health of your business are vital to the livelihoods of the music creators we represent, and we are committed to helping you to welcome back your customers when the time is right. If your business is currently not open to your customers and you would like us to note that on your account, please fill out the form below. Once your business welcomes back customers, please reach out to your BMI representative.” TLW
ABL is the voice of America’s beer, wine and spirits retailers in Washington, D.C. ABL represents the TLW and its many members, as well as thousands of other on- and off-premise retailers of beverage alcohol across the United States.
