TAVERN LEAGUE REJECTS PROPOSAL ON LICENSE FEE

Leader brushes aside compromise that would let communities set cost

Madison -- A compromise offered by three Waukesha County legislators to
resolve the controversy over a new law requiring municipalities to charge a
$10,000 fee for new tavern licenses was rejected Tuesday by the Tavern
League of Wisconsin.

Pete Madland, president of the Tavern League, said he wanted to see the new
law left in place for at least one year before lawmakers consider changing
it.

The Alliance of Cities and League of Wisconsin Municipalities have endorsed
the compromise announced last week by Assembly Majority Leader Steven Foti
(R-Oconomowoc), Rep. Frank Urban (R-Brookfield) and Sen. Margaret Farrow
(R-Elm Grove).

Under that compromise, communities would be allowed to set the fee for
liquor licenses anywhere from $500 to $10,000.

But Madland and others in the tavern industry made it clear during a
hearing before the Assembly State Affairs Committee on Tuesday that the new
law is needed to add value to existing taverns, many of which are
struggling financially.

They said the law will encourage people who want to open a bar or a
restaurant that serves alcohol to buy an existing tavern business instead
of applying for a new liquor license. The fee to buy an existing license
remains at $500.

The law, which went into effect Dec. 1, also is designed to make existing
licenses more valuable by reducing by half the number of unused liquor
licenses available in each municipality.

"You have a chance to keep the status quo and help out 13,000
small-business owners, or you can change the law to please a bunch of
municipal officials who don't like being dictated to," Madland told
legislators. "To me it's a no-brainer."

Municipal officials, including several from communities where the new law
has been ignored or circumvented, said the law should be repealed. They
argued that setting of liquor license fees should be a local decision.

Charles Hargan, Germantown village president, said he felt bad for the
small, family-owned taverns in financial trouble.

"But there are also ma and pa farms struggling, and ma and pa stores," he
said. "We can't go out and help everybody."

Delafield City Administrator Scott Botcher said at issue is what kind of
role state government should play in the state economy.

"I don't believe the state of Wisconsin can be the big brother to every
small-business owner," he said.

Brookfield Mayor Kate Bloomberg also said that reducing the number of
liquor licenses available in each municipality could force some communities
to choose between small entrepreneurs and big operators when granting
licenses.

But Jay Ross, president of the Waukesha County Tavern League, echoed the
sentiments of many of the tavern owners who testified Tuesday when he
criticized municipal officials for refusing to obey the new law.

The committee took no action Tuesday on a bill proposed to repeal the new
law or on the proposed compromise.

Foti said he would continue to push for legislative action on the
compromise. He said waiting a year to see how the existing law works "is
not common sense."

Foti said he was optimistic the Assembly would act on the issue before the
floor session ends in March. The legislation also could be taken up if a
special session of the Legislature is held in April or May, he added.