Proposal would let residents retire liquor licenses
Effort could reduce number of stores, which often draw complaints, delegate says
Churches, neighborhoods and other groups may soon get the right to buy a liquor license just to keep it from being used.
The proposed legislation, HB 570, would let any group or individual buy one of the county's 187 liquor store licenses for the purpose of "extinguishing" the permit for selling beer, wine or liquor. Currently, liquor licenses can be sold, but they cannot be eliminated.
County delegates are currently debating whether to support the bill, proposed by Del. Justin Ross (D-Dist. 22) of Greenbelt. A hearing was held Monday before the House Economic Matters committee.
If passed, Prince George's County would be the first county in the state where residents could use their own money to gradually reduce the number of liquor stores, which often attract complaints of crime, loitering and other issues.
"It would allow a community group to be one of the potential purchasers, no matter what their motivation," Ross said.
Ross said the bill is not written with a specific store in mind, but that he sees it as a potential redevelopment tool for community associations and revitalization groups.
The bill has drawn no objections so far. Prominent supporters include the county government and the Collective Banking Group, a coalition of church pastors.
"It would further our mission of empowerment," banking group members wrote in a letter of support to delegates. "It gives a voice to residents in allowing them to choose what businesses they do and do not want in their community."
There have been no objections from the Maryland State Licensed Beverage Association, Ross said, since the bill does not force store owners to sell their licenses.
"It creates more buyers [for a license]," said Ross, who said store owners also like the idea of reducing the number of competing stores in the county. "A strong argument could be made that this could serve to thin the herd."
Steve Wise, the lobbyist for the licensed beverage association, could not be reached by press time.
Under the bill, any group or individual willing to purchase a license can inform the county Board of License Commissioners that it plans to extinguish the permit. Once all taxes and debts are paid off, the county board must retire the license and cannot create a new one to replace it.
Liquor licenses and laws in Prince George's County are set by the state legislature. The county has 187 licensed alcohol stores under state law, including 19 that can only sell beer, 26 locations authorized for beer and wine and 142 that can also sell liquor and spirits.
Past liquor licenses in the county have gone for between $25,000 and $50,000, Ross said.
Using cash to close down liquor stores is not unprecedented in the state. Baltimore city has a moratorium on new liquor licenses as well as rules that cancel licenses that have been unused for more than six months. In 2008, owners of Cookies Liquors in east Baltimore city agreed to sell their license to a coalition of church and neighborhood activists for more than $100,000. The group bought the permit so that it would not be used and burned copies at a public event.
County lobbyist Michael Hermann said the government wholeheartedly supports a similar process in Prince George's.
"It's capitalism at work," he said.
Ross said he believes community groups are not likely to run all liquor stores out the county with their cash, though.
"I can't imagine it getting to that point," said Ross, who said the bill can be changed in the future if liquor stores become scarce.