Published: June 25, 2008 11:55 am      

Commissioners request meeting with liquor board, nonprofit clubs

CUMBERLAND - Allegany County Commissioners Bob Hutcheson and Dale Lewis on Tuesday said they have requested a meeting with the local Board of License Commissioners and local nonprofit clubs to discuss serving alcohol to the general public.

Hutcheson said members of the District 1 legislative delegation also have been invited to attend the July 24 meeting, which is scheduled for 1 p.m. at the County Office Complex.

The board of license commissioners, referred to as the liquor board, is seeking to prevent nonprofits from serving alcohol to those who are not members or guests. The county has 39 nonprofits with Class C alcohol sales licenses. There has been some concern expressed to the county commissioners that nonprofits cannot survive if forced to comply with those rules.

Liquor board chairman Gerald Delaney has said nonprofits can sell alcohol cheaper than private businesses - they pay less for license fees and half the amount of taxes on paper gaming - and that's not fair for nonprofits to exploit that advantage by serving the general public.

Lewis said it's not fair to expect nonprofits, such as fire companies, to make the money they need to buy firefighting equipment by relying on 50 or so members. He said it's "unrealistic" what the board is requiring clubs and fire companies to do and the issue has created controversy.

Club members have expressed concern, Lewis said, that their members are aging and not being replaced by younger people. Those clubs could "go by the wayside," Lewis said.

Lewis and Hutcheson both are members of several organizations. Lewis belongs to the Westernport American Legion, Frostburg Moose, Good Will Volunteer Fire Department in Lonaconing and Cresaptown Eagles. Hutcheson belongs to the American Legion and the Ali Ghan Shrine Club, among others.

Delaney, too, is a member of "a bunch" of clubs and has some 40 years' experience in the liquor industry, dating back to 1966 when he owned and operated Broadway Liquors in Frostburg. He said he believes it's "highly possible" the rules could be changed to exclude certain nonprofits, including fire companies, from the current rules. As it now stands, however, rules are rules.

"The for-profit people are paying much more in taxes (and fees)," Delaney said, "and they're at a definite disadvantage."

The county commissioners' request for a meeting comes after a June 17 meeting between nonprofits and the liquor board. There, the liquor board commissioners reviewed current regulations and expressed their intent to enforce the rules currently in place.

Among issues to be clarified are what constitutes a guest, how many times a guest can attend a club function and how many times a member can bring a guest to an event. It's also unknown if a nonprofit club can rent a meeting hall to the general public.

Delaney said fraternal organizations have their own definitions of what constitutes a guest as clarified in national charters. He believes a newcomer can't visit a club more than two or three times without being required to join.

Penalties vary, Delaney said, as procedures to ensure compliance with county rules and regulations go on a "case-by-case basis."

"We're trying to work things out without passing out any penalties, fines or suspensions," Delaney said. "It's not in black and white."

He said any punitive measures could be based on severity of a club's lack of compliance. There is definitely room for leeway - and plenty of room for discussion in the coming weeks.

"I don't think there's any reason to penalize a fire company trying to buy a new fire truck," Delaney said.

Contact Kevin Spradlin at kspradlin@times-news.com.