Committee Rejects Bill to Increase Liquor Fees

Urged on by a grocers organization, a state Assembly committee Monday killed a bill to hike liquor license fees in order to fund sting operations on businesses that violate liquor laws.

Assemblyman Tony Cardenas (D-Sylmar), who wrote the legislation, said a drive against problem liquor stores, particularly in the San Fernando Valley, will be hurt.

“I’m disappointed, but I know that these kind of things take time,” he said, adding that he plans to reintroduce the bill later this year.

The law would have increased the fee for some liquor licenses from $24 to $240 per year, providing an additional $3.1 million for enforcement of liquor laws.

Cardenas said the license fee has not been increased since 1955 and has thus hampered the Department of Alcohol Beverage Control Board from adequately enforcing liquor laws.

Cardenas also noted that the department has fewer enforcement agents today than it did 33 years ago, while the number of liquor vendors has more than doubled.

In Los Angeles, the increased funding would have paid to expand a two-year pilot program by police and ABC officers in the northeast Valley and South Los Angeles.

The program, which began in 1996, has used undercover officers to catch bar and liquor store owners who sell to minors and intoxicated patrons.

Police believe that such businesses also contribute to gang activity, prostitution, drug sales and other problems.

“It’s been a very successful program and we would like to see it go on because it pays for itself with fines on the violators,” said Anne Blue, a lobbyist for the city of Los Angeles who testified in favor of the bill.

“Our program has been so successful that we have increased arrests and convictions 168% within a year.”

Currently, the fines go into the general fund, not back into liquor law enforcement.

During the pilot program in the Valley, police found that crime around liquor stores and bars that violate liquor laws is about 30% higher than in nearby communities.

Cardenas’ bill failed on a 2-3 vote in the Government Organization Committee, which oversees liquor license matters. The bill was opposed by Assembly members Marilyn Brewer (R-Newport Beach), Richard Floyd (D-Wilmington) and Brett Granlund (R-Yucaipa).

Cardenas and Assemblyman Mike Honda (D-San Jose) supported it.

During the hearing, a spokesman for the California Grocers Assn. spoke out against the bill, saying the increased fee was too steep for many “mom-and-pop” grocery stores.

In addition, Peter Larkin, president of the California Grocers Assn., which represents about 1,000 stores statewide, said his group had almost no opportunity to review the bill or survey his members about the legislation before it came to the committee.

Representatives of the liquor industry were also in the audience at the hearing but did not testify. A representative of the liquor industry could not be reached for comment.

Cardenas believes the lawmakers who opposed the bill were swayed to some extent by the industry representatives.

“I’m sure the members that were there recognized who was in the audience,” he said.

Cardenas is not the only state lawmaker considering increasing liquor fees. Gov. Pete Wilson introduced a state budget last week that includes an “enforcement surcharge” on the sale of liquor.

The surcharge would generate $5.2 million for increased enforcement of liquor laws.

Cardenas said he is worried that state legislators may also reject Wilson’s surcharge.