Shuttered bars still owe the state money – and the legislature didn’t fix it

Bar owners said they “got left high and dry again” when the legislature left town without giving them a much-needed extension on paying ABC permit renewal fees.

State lawmakers had proposed allowing any alcohol businesses that are currently shuttered because of coronavirus executive orders to hold off on paying permit renewal fees until 90 days after they’re allowed to reopen.

Because the legislation didn’t pass both chambers, June 30 was the deadline for bars to pay the permit renewal or lose the ability to sell alcohol. The permits typically cost about $2,200.

“Something as simple as extending the due date would go a long way to keeping a little money in these bar owners’ pockets, but they received nothing,” said Zack Medford, who owns several downtown Raleigh bars and leads the N.C. Bar and Tavern Association, which sought the extension.

“It’s a slap in the face to still be forced to come out of pocket to pay for an ABC license that you will never be able to use.”

Medford said he expects the permit renewal costs will cause some bars to close permanently, and at least one, Taylor’s Tavern in Lexington, already has. Shuttered bars could allow their permits to lapse, but doing so means they’ll need to go through a costly application and inspection process in order to reopen.

Bill fell off agenda at end of session

House Bill 902 initially passed the Senate unanimously on June 22, with Sen. Rick Gunn, R-Alamance, calling on colleagues to help “out a group that is holding on for dear life.”

But when the bill went to the House the following day, Rep. Holly Grange, R-New Hanover, told legislators to vote against concurring with the Senate legislation. She explained that the permit extension would be included in the annual regulatory reform bill. HB 902 then went to a conference committee and emerged as an unrelated bill about state purchasing and contracts.

The ABC permit extension was included in a House version of the regulatory reform bill. But it wasn’t in the final conference report version that passed both chambers and headed to Gov. Roy Cooper’s desk.

Rep. Chuck McGrady, a Henderson County Republican, led negotiations on the final regulatory reform bill and told the NC Insider on Tuesday that “no one ever asked me to include it there.”

“Moreover, the effort with reg reform was to get a bill that was totally non-controversial,” McGrady said in an email. “Adding it would have meant we’d have a handful of members who would have likely voted against the whole bill.”

Medford said he suspects the reprieve for bars “just got lost in the shuffle on the last day of the legislative session.”

Reopening bill

There have been several recent setbacks for the state’s bars. Medford’s group sued Cooper over his orders keeping bars closed while reopening restaurants, breweries and other establishments that serve alcohol.

But a judge refused to issue an injunction that would allow bar reopenings, ruling that Cooper was within his rights to issue the public health order.

And after Cooper vetoed the legislature’s first attempt to let bars reopen their outdoor seating areas at limited capacity, bar owners sought a “clean bill” that didn’t include a controversial provision in the vetoed measure that would limit Cooper’s ability to close businesses in a future coronavirus outbreak.

In the wee hours of Friday morning — around the time bars would normally be issuing their last call for alcohol — the outdoor bar seating bill was released as a conference report for House Bill 633.

The Senate voted 32-8 in favor of the measure at 2:10 a.m., with seven Democrats joining Republicans in voting yes. That’s more bipartisan support than most reopening bills have received so far.

But the House adjourned around 3 a.m. without calling a vote on the conference report. House Speaker Tim Moore’s office did not respond to an inquiry about why the measure didn’t get a vote.

Medford said he’s hopeful lawmakers might at least address the permit renewal issue when they return this week for what’s expected to be a brief session to handle vetoes.

“We are hoping to get some kind of retroactive relief or rebate,” he said. “The government shouldn’t be taking money from these folks.”

For more North Carolina government and politics news, listen to the Domecast politics podcast from The News & Observer and the NC Insider. You can find it on Megaphone, Apple Podcasts, iHeartRadio, Stitcher or wherever you get your podcasts.

This story was originally published July 6, 2020 at 9:43 AM with the headline "Shuttered bars still owe the state money – and the legislature didn’t fix it."