ABL Dispatch

ABL DISPATCH — THE LATEST INDUSTRY NEWS FROM WASHINGTON

BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR

Fall is upon us and, despite what we all thought was to be a more certain operating environment, the spread of the delta variant of COVID-19 continues to create uncertainty for bars and taverns. While we don’t expect to see shutdowns like the spring of 2020, mask mandates, and proof of vaccination or a recent negative test are popping up in cities around the country. Meanwhile, Congress is wrestling with massive pieces of legislation that could shape the country for years to come, all while American Beverage Licensees (ABL) and its partners are focused on securing outstanding COVID-19 relief through grants and tax credits.

ABL Issues Comment on Competition

On July 9, 2021, President Biden issued an executive order on promoting competition in the American economy. As part of this order, he directed the Department of the Treasury to write a report “assessing the current market structure and conditions of competition [for beer, wine and spirits], including an assessment of any threats to competition and barriers to new entrants.”

Though it was not required to do so, the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is part of the Treasury, subsequently issued a request for information to solicit input from stakeholders. Though the initial deadline was Aug. 18, the TTB is accepting comments until Oct. 1. To read the comments that have been submitted thus far, visit regulations.gov/document/TTB-2021-0007-0001/comment.

A read through the comments finds that many complain about wholesale-tier consolidation and franchise laws, call for universal direct-to-consumer shipping and unlimited self-distribution, and, in general, support the nationalization of the alcohol marketplace. The comments also appear to demonstrate a disconnect when it comes to the constitutionality of state alcohol laws and states’ primary authority to regulate alcohol.

ABL issued a comment, calling for even enforcement of trade practice laws and pointing out that unchecked industry consolidation can have a negative impact on beverage licensees: Bars, taverns and package liquor stores know and appreciate competition. ABL members compete every day with their fellow beverage alcohol retailers under state-based, three-tier systems which, when their integrity is maintained, foster a level playing field for beverage licensees large and small to the benefit of states, communities, businesses and, most importantly, consumers. This success story has been made possible by the delicate balancing of federal alcohol laws, and states’ primary authority to regulate how alcohol is distributed and sold within their borders.

Retail beverage licensees acknowledge that their industry operates in a robust regulatory environment because of the unique nature of beverage alcohol and take seriously the responsibility of being the last members of the industry to handle products before they reach the consumer.

It is never too late to better understand and appreciate our current alcohol ecosystem for the success story that it is, and limit changes to the current system to consensusdriven solutions, instead of imperiling its long-term health, and the value it ultimately provides to business owners, workers and consumers. Equal enforcement of current laws and regulations, while making sure that all beverage alcohol retailers have access to all products at fair prices and without conditions, will continue to serve competition and American consumers well.

Restaurant Revitalization Fund Refresher

The Restaurant Revitalization Fund (RRF) provided $28.6 billion in direct relief funds to bars, restaurants and other food establishments that experienced economic distress and significant operational losses due to the COVID-19 pandemic. The $28.6 billion was depleted quickly with the Small Business Administration (SBA) receiving 362,000 applications for the program for a total of $75 billion in funding. The SBA closed the portal for new applicants, but is holding all the applications should more funds be appropriated to the RRF. For a report on the applications and distribution of the initial $28 billion in RRF money, broken down by state, visit sba.gov/sites/default/files/202107/RRF_Report-508.pdf.

ABL members compete every day with their fellow beverage alcohol retailers under state-based, three-tier systems which, when their integrity is maintained, foster a level playing field for beverage licensees large and small to the benefit of states, communities, businesses and, most importantly, consumers. This success story has been made possible by the delicate balancing of federal alcohol laws, and states’ primary authority to regulate how alcohol is distributed and sold within their borders. was introduced. This legislation would replenish the RRF with $60 billion. (You can show your support by signing the petition at p2a.co/qjqNqMJ.) ABL supports this legislation, and is working with members of Congress and staff, as well as aligned industry associations, to secure its passage. As of today, these bills have 208 cosponsors in the House and 14 in the Senate, which is a strong showing for the bills being introduced so recently. In July, House Republicans introduced the Entrepreneurs Need Timely Replenishment for Eating Establishments (ENTRÉE) Act, which would shift $60 billion in unspent Economic Injury Disaster Loans (EIDL), and state and local funds to the RRF program. So far, the bill has 57 cosponsors, but does not have any Democratic support. ABL will continue lobbying for additional RRF funding, just as it has been advocating for the RRF Replenishment Act and other measures that would help TLW members and other ABL members get back on their feet.

Impaired Driving

The Senate-passed infrastructure bill includes a section that requires the Department of Transportation and National Highway Traffic Safety Administration to issue a new, advanced drunk and impaired driving prevention technology safety standard within three years of enactment. Then it gives automakers no less than two and no more than three years to comply. The legislation recognizes that 0.08 blood alcohol concentration is the legal limit for alcohol impairment. It also has the same language that was in the Reduce Impaired Driving for Everyone (RIDE) Act of 2021, which was introduced earlier this year by Senate champions who have had personal experiences with drunk driving. Most importantly, there will be a rulemaking process within the Department of Transportation to determine specifications for this technology. This will provide an opportunity to directly address particular concerns about the program. Also, the Secretary of Transportation can CONFECTIONS • CHEMICALS • FOUNTAIN SU FT ITEMS • FOOD PRODUCTS • GROCERIES • CONFECTIONS • CHEMICALS • FOUNTAIN GIFT ITEMS • FOOD PRODUCTS • GROCERIES NDRIES • CONFECTIONS • CHEMICALS • FOUNTA ES • GIFT ITEMS • FOOD PRODUCTS • GROCERIES UNDRIES • CONFECTIONS • CHEMICALS • FO PPLIES • GIFT ITEMS • FOOD PRODUCTS • GROCER SUNDRIES • CONFECTIONS • CHEMICALS • SUPPLIES • GIFT ITEMS • FOOD PRODUCTS CERIES • SUNDRIES • CONFECTIONS • CHEMICA AIN SUPPLIES • GIFT ITEMS • FOOD PRODUCTS ROCERIES • SUNDRIES • CONFECTIONS • CHEMI NTAIN SUPPLIES • GIFT ITEMS • FOOD PRODUCTS GROCERIES • SUNDRIES • CONFECTIONS • CH FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD PRODU • GROCERIES • SUNDRIES • CONFECTIONS S • FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD PRO DUCTS • GROCERIES • SUNDRIES • CONFECTIONS ALS • FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD P RODUCTS • GROCERIES • SUNDRIES • CONFECTIONS MICALS • FOUNTAIN SUPPLIES • GIFT ITEMS D PRODUCTS • GROCERIES • SUNDRIES • CONFECTION HEMICALS • FOUNTAIN SUPPLIES • GIFT ITE FOOD PRODUCTS • GROCERIES • SUNDRIES • CONFECT IONS • CHEMICALS • FOUNTAIN SUPPLIES • GIFT FOOD PRODUCTS • GROCERIES • SUNDRIES FECTIONS • CHEMICALS • FOUNTAIN SUPPLIES • FOOD PRODUCTS • GROCERIES • SUNDRIES FECTIONS • CHEMICALS • FOUNTAIN SUPPLIES • S • FOOD PRODUCTS • GROCERIES • SUNDRIES Your Key To Savings Your Key To Savings Your Key To Savings CONFECTIONS • CHEMICALS • FOUNTAIN SUPPL TEMS • • FOOD PRODUCTS • GROCERIES2022 Spring Show • S CONFECTIONS • CHEMICALS • FOUNMarch 3rd & 4th TAIN S GIFT ITEMS •• FOOD PRODUCTS • GROCERIES UNDRIES • CONFECTIONS • CHEMICALS • FOUNT IES • GIFT ITEMS • FOOD PRODUCTS • GROCERIES UNDRIES • CONFECTIONS • CHEMICALS • FO PPLIES • GIFT ITEMS • FOOD PRODUCTS • GROCER SUNDRIES • CONFECTIONS • CHEMICALS • SUPPLIES • GIFT ITEMS • FOOD PRODUCTS CERIES • SUNDRIES • CONFECTIONS • CHEMICA AIN SUPPLIES • GIFT ITEMS • FOOD PRODUCTS ROCERIES • SUNDRIES • CONFECTIONS • CHEMI NTAIN SUPPLIES • GIFT ITEMS • FOOD PRODUCTS GROCERIES • SUNDRIES • CONFECTIONS • CH FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD PRODU • GROCERIES • SUNDRIES • CONFECTIONS S • FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD PRO DUCTS • GROCERIES • SUNDRIES • CONFECTIONS ALS • FOUNTAIN SUPPLIES • GIFT ITEMS • FOOD P RODUCTS • GROCERIES • SUNDRIES • CONFECTIONS Holiday Wholesale, Inc. MICALS • FOUNTAIN SUPPLIES • GIFT IT225 Pioneer Drive • PO Box 177 EMS D PRODUCTS • GROCERIES • SUNDRIES • CONFECTION HEMICALS • FOUNTAIN SUPPLIES • GIFT ITE FOOD PRODUCTS • GROCERIES • SUNDRIES • CONFECT Wisconsin Dells, WI 53965 800 • 333 • 8321 IONS • CHEMICALS • FOUNTAIN SUPPLIES • GIFT FOOD PRODUCTS • GROCERIES • SUNDRIESwww.holidaywholesale.com FECTIONS • CHEMICALS • FOUNTAIN SUPPLIES • S • FOOD PRODUCTS • GROCERIES • SUNDRIES CONFECTIONS • CHEMICALS • FOUNTAIN SUPPL

For many years, ABL has voiced opposition during the legislative process toward drunkdriving mandates that apply one-size-fits-all policy prescriptions to states that are all very different and have varying (and quite often effective) approaches to drunk driving. In contrast, this bill requires automakers to implement technology, much like they did with airbags.

determine that more time is needed to create a final rule, but is required to submit reports to Congress on progress for up to 10 years after the enactment of the law.

What’s different about this provision than previous “interlock mandates” is that it is not an unfunded federal mandate on states to change their drunk-driving policies or else lose federal highway funding. For many years, ABL has voiced opposition during the legislative process toward drunk-driving mandates that apply one-size-fitsall policy prescriptions to states that are all very different and have varying (and quite often effective) approaches to drunk driving. In contrast, this bill requires automakers to implement technology, much like they did with airbags.

© 2021 Society Insurance The SBA issued new guidance designed to accelerate the end of the Paycheck Protection Program (PPP) by streamlining the process for millions of small businesses and nonprofit employers to have their emergency payroll loans forgiven.

The guidance issued by the SBA simplifies forgiveness for loans of $150,000 or less, which account for more than 90% of all outstanding PPP loans. The SBA said it has notified banks that the agency is setting up its own online forgiveness platform that started accepting applications from borrowers directly on Aug. 4. This allows borrowers to apply for forgiveness directly with the agency instead of having to go through their lenders.

More than 600 banks have agreed to allow access to the portal for more than 2.17 million borrowers. In a 29-page interim final rule, the SBA introduced a COVID Revenue Reduction Score that can be used at the time of forgiveness to document the required revenue reduction for second-draw PPP loans. The new interim final rule also establishes a direct borrower forgiveness process for lenders that choose to opt in as an alternative method of processing loan forgiveness applications. TLW

ABL is the voice of America’s beer, wine and spirits retailers in Washington, D.C. ABL represents the TLW and its many mem 3.343" bers, as well as thousands of other on- and off-premise retailers of beverage alcohol across the United States.

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