Liquor Licenses as Weapons
Several weeks ago in a post about adult establishments, an interesting discussion about liquor licenses began in the comment section. (And I say “began”, because they sort of got out of control.) Anyway, while going through the news today, multiple examples of liquor license issues struck me as a good opportunity for a blog post. I say all this as someone who basically likes our liquor laws in Missouri. By most measures (taxes, wine import restrictions, market quotas, time limits, etc.) our liquor laws are pretty reasonable compared to other states. There are exceptions to this, but because eliminating liquor laws entirely won’t happen, the next best option is having rational, limited laws that accomplish a few goals (preventing minors from drinking), while allowing adults easy access to a very popular item: alcohol.
But anytime you give the government power to license something, it invites the opportunity for abuse. In St. John, a suburb of St. Louis, a restaurant entrepreneur will have to wait a few more weeks to know whether he can sell alcohol at his restaurant, because one councilmember does not want him to have a liquor license. Now, this may not be that big of a deal, because it appears he will get the license at the next meeting, but it is still a delay in his business plans.
A worse abuse of power was also featured in a Post-Dispatch article yesterday: A liquor license inspector has been charged with bribery. He attempted to force a prospective bar owner to pay him off and give him a job in order for the owner to get the license. Thankfully, the bar owner was able to obtain the license anyway (evidence that it is not all that hard to get a liquor license here), but this is further evidence of the inevitable abuses that come from government control.
I pointed out a moment ago that it is not all that hard to get a liquor license here. Well, that’s not true if you live in the city of St. Louis’ 20th Ward, where the local alderman decided (several years ago) that he does not want any more bars or liquor stores. If you have to have a liquor license process (and we’ll realistically have one whether we like it or not), it needs to be a public, evenhanded process, not reliant on whether or not one elected official approves it.
There are abuses in Kansas City, too. The Pitch has a story on the liquor licenses being suspended in restaurants that have been caught allowing smoking. This is terrible, and most aptly demonstrates the title of this post. If you have a law banning smoking in public establishments, the punishment should be a fine, not the suspension of an unrelated item. At the bottom of the Pitch article, you see examples of suspending liquor licenses for acts that at least relate to alcohol (one of which is actually important enough to warrant some type of punishment).
I won’t get into the dispute over liquor licenses and violence at the clubs in downtown St. Louis. This post is long enough. One good thing about our liquor laws is Missouri is that we generally (with exceptions like the 20th Ward) don’t have numerical restrictions on total licenses in an area, which is usually the worst part of any licensing system. But any system can and will be abused. The most important change we need to liquor laws in Missouri is to eliminate the ability for one individual to block a potential license all on their own — be it an inspector or an elected official. Requiring that all applicants get a vote of the full legislative body could be a good start.


Here in Columbia there are periodic issues with liquor license renewal. Sometimes there are other issues where the business owes back sales tax, but there are whispers (and sometimes more than whispers) about who stands to gain from the closing of a bar or restaurant in a valuable location and why a liquor license might be approved late or sent later.
If you’re interested in talking to some of the folks here who’ve had these issues I can point you towards a couple friends.
Comment by Eapen Thampy — July 30, 2010 @ 11:17 a.m.
I think you should visit Springfield and check how “zoning by other means” impacts holders of such licenses.
Comment by T Hobbs — July 30, 2010 @ 12:22 p.m.
You are mistaken about the 20th ward liquor bill–it does not restrict the number of licenses, but it does require that new licenses make a percentage of their sales in food sales, essentially restricting the licenses to establishments that provide food. Additionally, the 20th ward is not the only area in the city that has these types of restrictions; they are found in other parts of the City of St. Louis. I know of no place in the City of St. Louis where there are out-right limitations on the number of licenses. My experience with the City of St. Louis is that in fact, outside of the restriction legislation noted above, local political officials can do very little to restrict the absolute numbers of licenses. For example, even if zoning regulations restrict licenses, applicants can apply for a zoning adjustment, in which aldermen do not have either a formal or informal veto.
Comment by Will — July 30, 2010 @ 1:43 p.m.
That aldermen in the city lack the power to vote at the Board of adjustment is irrelevant to the calculus of whether they effectively control zoning decisions; they always have had nearly de facto control over the outcome of such decisions. And the fact that this particular excise official has been charged with extortion is not surprising, at least based on my personal experience.
Comment by Elkin Kistner — July 31, 2010 @ 3:42 p.m.
Will,
I can’t see how I am “mistaken.” I clearly wrote that the alderman does not want any more bars or liquor stores, and the link provided explains the exception for restaurants.
I appreciate the rest of your comments. It is a very good thing, in my opinion, that “local political officials can do very little to restrict the absolute number of licenses.” They shouldn’t be able to restrict the number of licenses at all. The lack of the power to generally do that is one of the reasons I think our liquore laws in Missouri are better than in most other states.
Comment by David Stokes — August 2, 2010 @ 10:56 a.m.