Bill Would Make 'Alcopops' Less Available

Fruity Malt Beverages Are Targeted

Last year's drama surrounding the way that Maryland taxes flavored malt beverages appears to have largely subsided, with lawmakers focusing this year on restricting their availability to young drinkers.

Gov. Martin O'Malley (D) last spring allowed a bill to take effect without his signature that called for the often-fruity beverages, known as "alcopops," to continue to be taxed and distributed like beer, drawing criticism from public health advocates and groups fighting drunk driving. In Maryland, distilled spirits and wine are taxed at significantly higher levels than beer.

At the time, O'Malley pledged to revisit the issue with lawmakers, with an eye toward creating a new category of regulation for the increasingly popular beverages.

This session, the focus has been exclusively on limiting their distribution. A hearing was held yesterday on a House bill that would prevent alcopops from being sold at retail outlets that are licensed to sell only beer. Those tend to include neighborhood convenience and package stores.

"My intention this year is to focus on the correlation between convenience and collateral damage," said Del. William A. Bronrott (D-Montgomery), the lead sponsor of the bill, which would not affect the tax rate of the beverages.

Aides said O'Malley is still reviewing the bill but has proposed a broader set of initiatives designed to combat underage drinking. Those include legislation calling for a six-month driver's license suspension for someone under 21 who is convicted of possessing or consuming alcoholic beverages.

In a recent interview, O'Malley said he could understand the reluctance of lawmakers to raise taxes, "given the economic dire straits we're in and sensitivities to increasing revenue."

Both Attorney General Douglas F. Gansler (D), who pushed for a change in the alcohol tax structure last year, and an anti-drunk-driving activist said they would still like to see the tax issue addressed.

"I think we should be doing everything we can," said Caroline Cash, executive director of the Chesapeake region of Mothers Against Drunk Driving, who testified in favor of Bronrott's bill as a starting point.

The tax issue gained attention last March when Gansler issued an opinion that the beverages should be treated as distilled spirits, an interpretation at odds with current practice in Maryland. Supporters of the legislation classifying it with beer for taxation purposes said they were merely attempting to preserve the status quo.

"Alcopops are not beer," Gansler said in a recent interview, reiterating his view that they should be taxed at a higher rate.

Last year, O'Malley was prepared to sign the bill preserving the status quo in April but held off for several weeks at the request of bill opponents. A veto would have effectively put Gansler's opinion into effect, raising the tax rate.