Bar owners push back against liquor license bill

A bill that would make it easier for restaurants to get liquor licenses has been printed by the Idaho Legislature, but it is getting some pushback from bars and other organizations that don’t serve food.

Sen. Jim Rice, R-Caldwell, has been promoting the bill since at least September, when he brought it up to the Southwest Idaho Legislative Business Summit. It would allow cities and counties, rather than the state, to decide whether to issue liquor licenses to restaurants in their communities.

Currently, restaurants need to compete with establishments like bars for the scarce licenses, based on the number of people in a city. Waiting lists are often years long, and consequently, license holders sell and lease licenses to restaurants that want to offer liquor as well as beer and wine. Smaller restaurants typically lease licenses because buying one can cost as much as $180,000.

Restauranteurs such as Kevin Settles from Bardenay and Chris Mitchell of Saint Lawrence Gridiron have expressed support for Rice’s bill, which was introduced Jan. 31. The bill was sent to Senate State Affairs, though a public hearing has not yet been scheduled.

Organizations such as the Association of Idaho Cities and the Boise Metro Chamber said they support Rice’s bill. “They appreciate the efforts to provide local control in this area and address the concern about the current system,” said Jessica Harrison, executive director of the Association of Idaho Cities.

Bill Connors, president and CEO of the Boise Metro Chamber, said his organization likes “the fact that Sen. Rice’s bill tries to protect the investments of the current incumbents, while reducing the instability caused by speculation.”

“Further, we think the current system blocks out small entrepreneurial, independent businesses and restauranteurs, and favors large national chains with deep pockets,” he said

But some Idaho business owners who own bars and clubs that don’t all include restaurants aren’t happy with Rice’s bill.

“We all agree we need better reform, but this is piecemealing it,” said Ted Challenger, owner of Challenger Hospitality Group, which operates China Blue, Dirty Little Roddy’s and the Amsterdam Lounge in downtown Boise. In addition, he is the director of the Idaho Alcohol Industry Leaders Group, a think tank representing bars, clubs and restaurants across Idaho that was formed to deal with this type of legislation. “We’re responsible for a quarter of the alcohol sales in Idaho, if not more,” he said.

Because cities and counties will be responsible for issuing and enforcing their licenses, and the state will continue enforcing “legacy” licenses, or the licenses already issued, Challenger said he is concerned with consistency of enforcement. “If I mess up, I go to Alcohol Beverage Control,” he said. But with these new licenses, an organization that doesn’t comply with the rules can change its name, pay another licensing fee, and get another license in a week, he said.

In addition, Challenger said he was concerned about enforcement issues regarding whether a particular establishment qualifies for the restaurant license — for example, how full a menu needs to be and for how many hours a day food needs to be served. Also, the bill means the state will no longer issue any licenses for an establishment that doesn’t serve food, he said. “I’ll make out great,” he said. “The value of my license will jump up with this — probably double.”

Bar owners aren’t against reform, Challenger said. “We’re saying we want well thought out reform, and to be at the table where it’s discussed,” he said. Rice had dinner with the group about four months ago but hasn’t gotten back in touch with them since, and the bill isn’t the same as what he had discussed with them then.

“We’re trying to slow this down,” Challenger said. “People truly affected by this have a voice. There’s some great ideas out there that aren’t being heard, so we don’t end up in 10 years doing this again.”