The Georgetown Metropolitan

Yesterday, the Current alerted GM to the fact that the Mayor has proposed legislation that would address the problem of inactive liquor licenses.

If passed, the proposed Omnibus Alcoholic Beverage Regulation Amendment Act of 2010 would levy a fee on inactive liquor licenses, which are better known as “licenses in safe keeping.” In Georgetown, there are about fourteen such licenses. The existence of the Georgetown moratorium means that the only way to get a new license in Georgetown is to buy it from someone else (and since it’s unlikely that an actively used license will be sold, the only real source is the list of inactive licenses). This regulatory scarcity has caused the market rate for licenses to sky-rocket into the high 5 figures.

In fact, it was this specific problem that the ABC Board wanted to address when they authorized the issuance of seven new licenses last month. GM has argued that a more effective long term solution to the high market cost of obtaining a new license would be to charge a “use-it-or-lose-it” fee on those licensees who continue to sit on inactive licenses in Georgetown. Continue reading →