Liquor license cost increase delayed

Wednesday, Feb. 13, 2008

The Southern Maryland delegation to the House decided to remove that proposal from their draft of a liquor laws bill after complaints from Calvert businesses, Kullen said. However, the increase is still in the Senate version of the bill and could become law despite the Southern Maryland delegation’s suggestion. Also, Kullen said the delegates plan to revisit the issue next year.

The review of Calvert County’s liquor laws, which are made by the state legislature, is being undertaken at the request of the Calvert County Board of License Commissioners, or liquor board. If passed, it would be the first substantial update to the liquor laws in more than 25 years.

Under the liquor board’s original proposal the cost of the most comprehensive liquor licenses would be raised from $1,000 to $1,250, with a further increase to $2,250 for any establishment staying open past midnight on most days. Most other licenses would increase in cost as well.

It was this proposal that generated the fiercest backlash; Wayne McKnett, owner of The Tavern bar in St. Leonard, said that the provision would doom his business.

‘‘I can’t afford it. I would have to get rid of my business. I’d just have to close the door,” McKnett said, because he wouldn’t be able to afford either a $2,250 license or to close at midnight. Upon learning that increases in license costs would probably be postponed, he said, ‘‘that sounds good.”

The concerns of people like McKnett were registered by Del. Tony O’Donnell (R-Calvert, St. Mary’s), who said their complaints made him hesitant to support the bill in its original form. He had heard from entrepreneurs ‘‘who say fee increases are even more onerous at a time when the economy is not good, business is dropping off significantly, the smoking ban [has come into effect],” O’Donnell said. ‘‘The last thing they need to have is massive increases in license fees. I am very, very concerned about that and may end up not supporting it.”

But Senate President Thomas V. Mike Miller Jr. (D-Calvert, Prince George’s) said the bills should be passed as written. ‘‘We heard from the county commissioners this week, the bills were proposed by the [liquor] license commissioners. ... They indicated they have problems in Calvert County. They need to update the laws and the county commissioners opined in favor of the proposals and so Sen. [Roy] Dyson (D-Calvert, St. Mary’s, Charles) and I are going to have — maybe — some amendments, but for the most part it will pass as proposed by board of liquor commissioners,” Miller said.

If enacted, the bills would also increase the penalty for licensees, servers and cashiers who give alcohol to a minor, including a maximum fine of $200 per violation.

Sheriff Mike Evans (R) said he couldn’t comment on the specifics of the bill but supported any measure that could keep alcohol out of the hands of minors or drunk drivers.

Beer and wine tastings at liquor stores would be allowed 365 days a year under the proposed law, provided that samples be an ounce or less and that the tastings are free. Currently, tastings are permitted 12 times per year.

Calvert wineries have their own tasting regulations and would not be directly affected by the change; however, an increase in the number of tastings at stores would still benefit wineries by making local vintages more likely to be featured, said Frank Cleary, public relations director for Friday’s Creek Winery in Owings. If tastings are limited, locals are more likely to be edged out by big distributors, he said.

‘‘If the retailers are allowed to do more of these tastings per year, it’s more likely local wineries, small wineries, small distributors will get one of the slots, where with 12 a year they went to big wholesalers. That’s the reality of the situation. The guys selling the most wine to liquor stores [get first priority on the tastings],” Cleary said.

The liquor board also asked the General Assembly to triple their annual salaries, but the house version of the bill proposes a doubling, to a $4,200 salary for the chairman and $3,600 for regular members; the bill would also increase from $75 to $200 the payment given per board meeting attended by board alternates. These payments defray ‘‘expenses incurred while carrying on the duties of the office.”

Liquor board Chairman Marshall Gibson said the salary increases and other proposed changes were necessary to modernize the laws after a quarter-century without change.

‘‘As far as the board [is concerned], there has been no [salary] increase in over 25 years and the amount of time over the 25-year period, salaries have never been increased and workload has at least tripled, both the time and effort that goes into it. More licenses, more enforcement hearings, it’s just a whole different procedure than it was years ago,” Gibson said.

The liquor board also asked to be able to dismiss without a hearing protests to license renewals if the board found that the protest was without substance. However, this request was not endorsed by the Calvert County Board of County Commissioners in their letter to the legislature and is not included in the bill

The liquor board consulted with license holders and others before drafting recommendations, and the board believes the changes would be an improvement for the county, Gibson said.

‘‘There really has been just minor legislative interest and concern for the liquor board for the last 25 years and we’re just trying to clean up some issues and add some issues that have come to our attention, and really everything we have included has been passed in previous legislation for other counties,” Gibson said, adding that most proposed changes to the Calvert laws had been taken ‘‘word-for-word” from laws already enacted in other Maryland counties.

County Commissioner Jerry Clark (R), who owns Port of Call liquor store in Solomons, said he also supports the bills.

‘‘The reason I think they’re a good idea is very simple: We have a lot of institutional experience on that board. These guys that are on that board have been on there for a lengthy amount of time and they’ve seen the amount of liquor licenses in Calvert County increase ... and they see the problems that exist out there and in their estimation and their opinion, these are changes that need to be done to control the industry in Calvert County,” Clark said.

Carolyn McHugh, president of the Calvert County Chamber of Commerce, said the chamber does not yet have a position on the bills.

emitrano@somdnews.com