Never Argue with Someone Who Buys Ink By the Barrel

Throughout the years, DCP and its Liquor Control Division have sought to streamline the liquor permitting process, reduce the number of various permit types by consolidation where possible, reduce the paperwork and transition to an online electronic portal for many of its functions. For the most part, those efforts have been well-received by the liquor industry, local governments, community members, and other stakeholders.

At the start of each legislative session, state departments submit proposed legislation for consideration. As it relates to the Liquor Control Act (Title 30), the Liquor Control Division has proposed ten amendments to Title 30 on various subjects ranging from the role of law enforcement, grocery beer permit calculations, creation of a mobile bar permit, and allowing managed residential communities (assisted living facilities) to qualify for a liquor permit.

Today, we are going to discuss another proposed change-- how communities learn about pending liquor permits in their community. Currently, once an application has been filed and accepted by the department, a placard is issued that requires the liquor permit applicant to post a 6’X 4’ sign adjacent to the road by the proposed premises. That sign identifies the proposed applicant, owner of the business, type of permit, and whether any live entertainment is being sought and, if so, the type of entertainment. The sign must be maintained for a certain number of days to allow for the public to become aware and to object to the issuance of the permit, if warranted.

In addition, the applicant is required to post two legal notices in the local newspaper which provides the same information to its readership.

The department is proposing that the publication of the two newspaper notices be repealed, but that the outdoor signage, where it is required, be maintained.

Each year, the department receives and processes between 975-1,000 new liquor permit applications for restaurants, bars, grocery stores, package stores, breweries, wineries among others. Currently, all of these permit types require the legal notice requirements.

The cost of two legal notices varies, ranging from approximately $145.00 up to around $200.00, depending on the geographic area of the state.

Who may oppose this change in the law? It is likely to be some members of a community who rely on legal notices for information on a range of subject matter topics like zoning hearings, zoning text amendments, probate matters, and schedules of municipal meetings.

It is highly likely that the newspaper publishers will strenuously oppose this change in the notification process, citing “right to know” issues. Supporters of the current notification system will argue that the system is working just as it is intended, and not in need of a “fix”. Probably not mentioned, but a real consideration, would be the economic loss for these publishing outlets. Based on the amounts charged and the number of such legal notices annually, the publishers could lose up to $200,000.00 annually in fees.

You can be assured that there will be intense lobbying on both sides of this issue before the General Law Committee of the state legislature. We’ll see how far this particular proposal is received by committee members. I’d be surprised if it receives a favorable reception, but we’ll keep you informed going forward.