As a rule, any time Maine businesses offer to pay more in state fees for state regulation, you take notice. Gov. Baldacci’s adamant refusal to reconsider his plan to close the Bureau of Liquor Enforcement is an exception to that rule.
Initially, objections to this plan focused upon enforcement of liquor laws pertaining to such high-profile concerns as underage sales, serving intoxicated persons and after hours drinking. The governor’s response, that local police can, and already do, much of that enforcement, was a fairly strong argument for the $1.2-million saving that would result from closing the bureau.
New objections, important and valid, have been raised by Maine restaurant owners and brewers regarding enforcement of laws and regulations that the public may not notice but that are vital to these businesses and, ultimately, to all taxpayers. These are the laws and regulations that preserve a fair and competitive business environment and that generate the millions in tax revenue generated by liquor sales.
There are tight restrictions, for example, on the promotional efforts allowed by beer and wine distributors. Free or below-cost samples of a particular product can be offered to a bar or restaurant only to the extent of introducing that product to the retailer. Without enforcement agents to check, distributors would be able to offer irresistible enticements on brands they are interested in promoting, to the detriment of other brands. That is, the large, national beer brands could soon drive Maine’s many small breweries off the shelves and out of business. Ensuring this does not happen is far beyond the reasonable expectation of local police. Similarly, large restaurants could cut favorable deals with distributors that would cause great harm to the small.
The taxes on sales of alcoholic beverages in Maine, wholesale and retail, now amount to some $40 million annually. Bureau agents conduct unannounced spot checks of stores, bars and restaurants to see that bottles carry the proper tax stamps and that invoices match inventory. Again, this is an inappropriate task for local police. Given that liquor prices in New Hampshire are 25 percent lower than in Maine, it is not hard to imagine this revenue stream drying up. A major component of the governor’s budget-balancing plan is privatizing the state-owned wholesale liquor business and leasing those rights for $100 million. With nothing in place to prevent liquor sales from going south, it is hard to imagine prospective bidders taking such a risk.
These concerns, in addition to others, such as how hundreds of tourist-season liquor licenses can be issued without trained personnel to process applications, have led restaurants and brewers to offer to pay higher licensing fees if that will keep the bureau intact. Maine businesses already pay more than $3 million in these fees, more than twice what closing the bureau will save. It is a fair question to ask why these businesses should pay any license fees at all for something over which there will be no enforcement. It to the credit of these business that, rather than merely complain about not receiving any value for their money, are willing to ante up an additional $1.2 million to save something they see as necessary to their livelihoods.
The governor and the Appropriations Committee, which was presented offer for higher fees at a public hearing this week, have so far rejected this sensible, even commendable, solution without comment. At the very least, preserving Maine businesses and protecting an important source of tax revenue ought to warrant some notice. Sitting up is optional.
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