Saturday Side Hustle: Public Hearings

Public hearings are a necessary evil for participants in the licensed beverage markets. Being prepared for a public hearing is the best way to ensure it will go the way you hope.

Let’s consider the rule of Howard County, MD for a moment, since that is where I am sitting right now. These rules require that hearings be held on applications for a new license, a transfer, an extension of the premises, a change in resident agent, or a change in the class of license. Let’s say you have applied for a liquor license in this jurisdiction. What might you expect at your public hearing?

We’ve already discussed the residency requirements of applicants, the avoidance of naming convicted felons on your application, and special requirements related to the type of business entity you have formed. You have presumably named the class of license you wish to hold and described your business and the premises accurately and paid your fee. Now the local gentry gets to ask you whatever they want in order to convince themselves that you are worthy of the license you are seeking.

For example, the rules provide that the Board has to determine that you are “of good character”. Well, naturally, we all have slightly different ideas about what disqualifies someone in this regard. In part, you will meet this requirement by having one of the applicants include a petition in support signed by at least three residents who are registered voters within the district where your business is located and know you personally. I’d recommend you make sure none of these folks has any sort of beef with the Board or any of its members, and that they don’t have unsavoury public profiles in any way.

The rules also provide that the operation of your business can’t “unduly disturb the peace and safety of residents in the neighbourhood in which the business is to be located”. You will need to be prepared to convince the Board that your business will not cause such a problem, particularly if there are residents who show up at your hearing to oppose your license being granted. How can you do this?

It may not be a bad idea to reduce your business plan and practice writing and submit it as an attachment to your application, or if not, at least prepare yourself to recite its content at your hearing. Your plan needs to include education on compliance with the regulations, such as not selling to underaged purchasers, not allowing people to be clearly intoxicated on your premises, offering transportation to people who shouldn’t be driving, not allowing disorder in your location such as fighting, etc.

In any event, you need to do what you say you are going to do at your public hearing because you will be on record as having made the statements you made. Is it OK to deviate from your plan? I think if changes are justified, but you have to be careful.