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Speakeasies to Special Events: Understanding and Working in the World of
Alcohol
Nancy M. McGee Meeting of the Minds
April 6-8, 2017 © 2017 - Nancy M. McGee
Session Overview
Why have Alcohol Regulation? – Relationship to crime and public health Costs of Underage Drinking Historical review of the 21st Amendment Methods of Regulation-Ordinance Formation
Session Overview
Identify Key Players Trending Issues – Administrative Sanctions/Enforcement of Penalties – Outlet Density – Restrictions on Use in Public Places – Special Events Management/Sponsorship – RBS Training
Review
Why be concerned?
Approximately 88,000 Americans die each year from alcohol-related causes, making alcohol-related problems the third leading cause of death in the United States The economic costs of excessive alcohol consumption in 2010 were estimated at $249 billion
– Centers for Disease Control - CDC Fact Sheet – Alcohol Use and Your Health updated July 25, 2016 –accessed February 22, 2017 at cdc.gov
Alcohol & Crime
Approximately 40% of those incarcerated for violent crimes report that they were drinking at the time of the offense.
– “Alcohol is still the deadliest drug in the United States, and it’s not even close” by Harold Pollack August 19, 2014 The Washington Post Approximately half of all homicides and assaults are committed when the offender, victim, or both have been drinking
– “Alcohol, Drugs and Crime” National Council on Alcoholism and Drug Dependence, Inc. NCADD 2017
Alcohol & Crime
Study Links Liquor Stores, Bars to Shooting Risk – Chicagoans near a liquor store or bar on the city’s South or
West sides are up to roughly 500 times more likely to be shot than other people living in the neighborhood, even after accounting for factors such as high unemployment rates, educational status and high incidence of single heads of households
• Research Study September 2013 - Dr. Marie Crandall of Northwestern’s Feinberg School of Medicine – Source Chicagotribune.com September 18, 2013
Underage Drinking Costs – (2013)
12-20 year olds drink 11% of all alcohol consumed in the US.
– Centers for Disease Control –CDC Fact Sheets- Underage Drinking- Updated October 20, 2016 - accessed February 22, 2017 at cdc.gov
Underage drinking costs U.S. citizens $56.9 billion each year
– PIRE 2013
Totaling $14.08 billion in sales
– PIRE, 2013
These sales provide $6.9 billion yearly in profits to the alcohol industry
– PIRE 2013
By Comparison
What world wide company’s total net revenue for fiscal year 2016 was only $21.32. billion?
– Source- Statista.com accessed 03/02/2017 4:55 pm
Historical Perspective
The 21st Amendment to the Constitution – Gave the States the primary responsibility to regulate
the alcohol trade as a means to protect public health and safety.
• This resulted in 50 different State statutes and limited federal involvement
• A liquor license is a privilege
Alcohol Regulatory Framework
States chose one of two primary methods of control. License States. (MO) – License is issued to vendors then regulated by the
state – Licensee retains all profits Control States. (VA) – State controls the wholesale level and distribution
of alcoholic beverages – Profits go to the State
Alcohol Regulatory Framework
Most States chose to develop a three tier system of distribution and imposed laws and regulations on each of these tiers in an attempt to ensure public health & safety – Manufacturers - Anheuser Busch – Wholesaler – Major Brands – Retailer – Bars & Package Liquor Stores
State Alcohol Beverage Agency – Primary agency tasked with regulating the alcohol industry in
each state – Agents may or may not have arrest authority – Disciplinary procedures against licensed entities only – Generally, no authority over unlicensed premises Local Police & Sheriff’s Departments – May enforce any state statute, but may not have jurisdiction
over licensed liquor premises or certain CSR’s – Lack of expertise with respect to nuanced liquor laws
Alcohol Regulatory Framework
Alcohol Regulatory Framework
In many instances the state retains the exclusive right to regulate in the alcohol arena or severely limit locals from regulating in this area through preemption. You will need to review your state statute to determine what you can accomplish through city and/or county ordinances. Are there issues of preemption?
General Underage Alcohol Enforcement
Three primary areas of enforcement – Focus on the underage person
• Ex: attempt to purchase, possession, use of false identification – “Cops in Shops”
– Focus on the merchant • Ex: Compliance checks
– Focus on 3rd party providers • Ex: Shoulder tap operations, controlled party dispersal, social
host laws
Review Existing Laws
Know what your controlling state statute is and learn what it prohibits and/or allows. No need to reinvent the wheel. Example – In Missouri to ensure smooth commerce local entities cannot enact any regulations with respect to keg registration only the state can.
Review Existing Laws
Find out how licenses are currently issued/granted-Do you have a say? Obtain a copy of the law/ordinance which
outlines the process – Are there specific requirements that must be met? The Order of Issuance – Federal, State, County, City
Methods to Regulate – Licensing
• Business license • Liquor license • Sales tax license
– Zoning • Residential • Commercial • Mixed Usage
If You Determine Additional Regulation is Needed
Understand the process to bring an ordinance/statute up for a vote Have an attorney help draft the language Find a sponsor to shepherd it through the
process Address implementation pitfalls upfront – Who will enforce, what will it cost to enforce/
implement etc..
Ordinance Formation Overview
Education
Educate the general public on the issue/proposal – Forums – Fact Sheets – Press Conferences/Media Events – Letters to the Editor – Blogs/Twitter/Facebook Educate those that will vote on the proposed
ordinance – Quick one page fact sheets, policy briefs, white papers
Lawmakers/Regulators – National
• Trade & Tax Bureau – State
• State Legislature • State Alcohol Beverage Agencies
– Department of Public Safety – Department of Revenue
– Local • City/County Council • Police Department • Sheriff’s Department
Know The Key Players
Know the Key Players
Alcohol Industry – National
• DISCUS (Distilled Spirits Council of the United States) • WSWA (Wine and Sprits Wholesalers of America) • Century Council
– State • Wholesalers • Retailer Associations
– Local • Bars, Restaurants, Grocery Stores, Gas Stations/Convenience Stores, VFW’s
Know the Key Players
Resource Agencies – National
• NLLEA (National Liquor Law Enforcement Association) • NABCA (National Alcohol Beverage Control Association) • NCSLA (National Conference of State Liquor Administrators) • SAMHSA (Substance Abuse and Mental Health Services Administration) • CDC (Centers for Disease Control)
– State • Division of Mental Health • Highway Safety Offices
– Local • Departments of Health • Building Code Departments
Know the Key Players
Identify their support/opposition – Financial – Philosophical – Lack of knowledge Ask how they can help you or how you can help
them – Find common ground
Voluntary v. Mandated
In many instances you can achieve your objectives through voluntary means as opposed to enacting ordinances or laws. In addition, in the alcohol arena issues of
preemption, interstate commerce, and free speech may factor into what you can legislate.
Trending Issues for State or Local Regulation
Administrative Process
Most States Alcoholic Beverage Control Systems allow for the following administrative sanctions against licensed premises that violate the liquor code – Monetary Fines – Suspension of liquor licenses – Revocation of liquor licenses
Administrative v. Criminal
Many liquor law violations can trigger both criminal and administrative sanctions – Ex: Sale to a minor could result in a criminal
summons to the individual clerk who sold and/or the minor who purchased as well as an administrative sanction against the establishments liquor license or business license.
Enforcement of Administrative Penalties
The penalty structure needs to make the costs for violating the law significantly outweigh any benefits derived. Deterrence v. Cost of doing business – Specific Deterrence aimed at the specific offender – General Deterrence- aimed at potential offenders & uses
punishment of an individual offender to set an example for others
Enforcement of Administrative Penalties
Work with legislators/councilmen to enact stronger/tougher laws regarding alcohol related offenses both against youth, adult providers, and businesses. Police can advise the coalition as to loopholes and or implementation problems with current laws or ordinances and possible changes which would make their job easier. Coalition can then advocate for the appropriate change needed to address the issue.
Enforcement of Administrative Penalties
Monitor Prosecutor’s/District Attorney’s to ensure they are filing cases. Monitor Court and ABC/AHC dispositions on underage drinking cases. ex: MADD Issue press releases on those dispositions. Recognize Prosecutors/Judges/Courts that are fairly and consistently dealing with underage cases- reward them. Invite them to be an active member of your coalition. Create your own local “liquor commission” with licensing authority and sanctioning authority.
Outlet Density
Outlet Density refers to the number and concentration of alcohol outlets in your community. Communities should consider placing caps on the number of outlets authorized to serve alcohol within the community
An increase in alcohol outlet density is associated with increased levels of alcohol consumption among adolescents.
– World Health Organization, Global Strategy to reduce the harmful use of alcohol. Geneva: WHO 2010
Alcohol retailers are more likely to sell alcohol to minors if other alcohol outlets are nearby.
– Chen MJ, Gruenwald PJ, Remer LG. Does Alcohol Outlet Density Affect Youth Access to Alcohol? Journal of Adolescent Health, 2009;44:582-589
Outlet Density & Underage Drinking
The level of drinking, drinking participation, and participation in binge drinking are all significantly higher among college students when a greater number of outlets licensed to sell alcoholic beverages exist near campus. This is particularly true for underage drinking.
– Chaloupka, F. & Wechsler, H. “Binge drinking in college: the impact of price, availability and alcohol control policies.” Contemporary Economic Policy, vol xiv, October 1996.
Outlet Density & Underage Drinking
A picture speaks volumes
Restrictions on Use in Public Places
Permitting process for use of alcohol in public places such as parks, public streets, festivals, parades – Resident Cards – Require a percentage of attendees be city residents – Limit the hours of consumption in public parks – Prohibit alcohol consumption on parade floats – Prohibit drinking on public streets
Restrictions on use in Public Places
Prohibit individuals from bringing their own liquor into public areas – Require any alcohol consumed in a public place be purchased from a
licensed onsite vendor who has a stake in the game – Tempers consumption – Require training of servers – Place serving limitations (size, number, & container) – Prohibit kegs in public parks
Restrictions on use in Public Places
Public overwhelming supports restrictions on alcohol in public places – as high as 85% surveyed are in favor of restrictions
– Wagenaar AC, Harwood EM, Toomey TL, Denk CE, Zander KM. Public Opinion on alcohol policies in the United States; Results from a national survey. Journal of Public Health policy, 21(3): 303-27, 2000.
Provides enforcement officers an easy way to deal with folks who are not following the guidelines – If a group is acting unruly and they have brought their own you can deal with them without infringing on those who are being respectful of the law.
Special Events Management Alcohol Sales & Sponsorship
The Alcohol Equation – How important is selling
alcoholic beverages to the success of the event?
– Is it a primary source of income?
– Should it be allowed at all?
Special Events
The Planning Process – Sets expectations – Reduces problems – Reduces conflicts – Reduces liability risks – Creates a safer more enjoyable event
Special Events
The Planning process should include all parties that will be involved with or affected by the event. – Event Organizer – Law Enforcement (Local, State, Prosecutors, & Regulatory) – Vendors/Retail Associations – Town/County Elected Officials – Community reps/neighborhood associations
Special Events
What can you do? – Work with event organizers to address areas of
concern • Limit alcohol company novelty item giveaways to 21 and
over • Find alternative sponsorship for the event • Mandate training for servers
Special Events
Alcohol Control Measures – Limit alcohol to certain areas – alcohol free zones – Limit serving sizes and containers – Equal number of non-alcohol vendors at events – Food requirements – Age of Servers – Prohibit drinking by workers
Special Events
Fair St. Louis – July 4th Celebration – By voluntary agreement between event organizers,
park officials, enforcement agencies, and licensing agencies alcohol control measures were imposed
• Training Requirement • Immediate shut down of vendors who violated alcohol laws – Waived right to
hearing • Limits on sale, Cutoff procedures • Replacement Costs – damages to park grounds • Increased Enforcement – Task Force • Insurance Coverage
Retail Beverage Service Training
Many states and local communities have enacted legislation that requires servers of alcoholic beverages to receive specialized training on the responsible service of alcohol – Review laws – Alcohols effects on the body – Fraudulent Identification
Review
Alcohol regulation is important because it is a product that when abused has the potential for serious harm to communities. With certain limitations communities have the
right to set standards as to what is acceptable within their community.
Review
Be open to compromise - reasonable limitations as opposed to out right bans may be just as effective in achieving your goal of a healthier environment. Familiarize yourself with your existing liquor
code and ordinances. Identify your opposition and seek ways to
overcome the opposition.
Review
Monitor courts and administrative agencies to ensure they are imposing meaningful sanctions against youth violators, adult providers, and liquor vendors.
Review
Consider outlet density caps on the number of locations which can sell alcoholic beverages in your community Impose alcohol control measures at special events to ensure responsible sale and consumption. Work with community officials to place limitations on use of alcohol in public places such as parks & schools Consider a state law or local ordinance that mandates that server of alcoholic beverages receive training
Contact Information
Lt. Christopher Bartolotta – Connecticut State Police – [email protected] – 860-626-7942
