Liquor License Task Force Down to Tough Calls

With the easy issues settled, a 12-member task force looking to make changes to the county liquor license law will now go through the brambles of the thornier ones.

The panel has met weekly since Aug. 18. During that time, the members have reached a consensus on four issues:

• Eliminating a legal requirement for prospective license holders to file a petition containing at least 10 signatures of residents who live within a mile of the proposed location of the license.
• Allowing the license holder to be a Maryland resident. Current law requires license holders to live in Baltimore County.
• Newly issued licenses will have no value. This will most immediately affect 22 open licenses in the Liberty Road corridor and two open licenses in the Dundalk area.
• Allowing multi-license holders—typically chain restaurants—to hold 12 licenses plus one additional if they place a restaurant in the Liberty Road area. Currently, county law allows for a limit of six plus one additional along Liberty Road.

"Those really were the low-hanging fruit that everyone could agree on," said Mike Mohler, chief administrator of the county liquor board and co-chair of the task force.

With a Nov. 15 deadline looming, the panel now must turn its attention to issues not so easily decided.

The largest among those is the institution of a sunset provision on the ability of current license holders to sell their licenses.

Currently, liquor licenses in Baltimore County are distributed based on population in 15 election districts. Market pressures, however, have driven up the costs of licenses in some areas, such as Towson and Timonium, where available licenses are at a premium. Last month, a license in the Timonium area was auctioned for $225,000.

By contrast, the value of a license in the Essex-Middle River area, where there is a glut because of decreasing population, are 66 to 75 percent lower.

Many current license holders view the permits as an asset and some use them as collateral for business loans.

The county wants to move to a system where the licenses have no value. County Executive Kevin Kamenetz and others say the current value of licenses make it difficult for small businesses to obtain the permits.

But the county Licensed Beverage Association, which represents about half of all the liquor license holders in the county, say devaluing the licenses is an illegal taking of property. They want the current license holders compensated.

"The county is not likely to get involved in any bill that involves compensation," Mohler said.

One likely change that could come out of the recommendations could involve placing a sunset on the ability to sell the license. After that, the license would hold no dollar value. Current holders could sell their businesses and transfer the license along with the business but the permit would not be considered an asset and could not be sold on its own.

The second issue involves the creation of a so-called service bar license that would allow businesses to sell beer and wine. The license would not allow for traditional bar seating and would likely carry stricter rules including a limitation on the hours that alcohol could be served.

The panel plans a marathon meeting next Thursday. The hope is to reach a consensus, if not unanimous decision, on those final two issues so that a first draft of a report can be produced by Oct. 27.

The timeline would allow the panel to meet it's Nov. 15 deadline for delivering the report to Kamenetz.

The county would then work to draft a bill based on the recommendations in time for the start of the General Assembly session that begins in January.

Any changes to the county liquor laws will require the approval of state legislators.

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