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County liquor board to nonprofit clubs: Stop serving general public
CUMBERLAND - The Board of License Commissioners of Allegany County, commonly known as the liquor board, delivered a message on Tuesday to the county's organizations that sell alcohol under a Class C, or nonprofit club, license: You can't serve to the general public.
"Nonprofit clubs are not allowed to have an open-door policy," said board chairman Gerald Delaney after a meeting with the county's 39 nonprofit clubs that have current liquor sales licenses. "We have a handful that want to operate like a normal business."
Board member Frederick J. Hill said the meeting was scheduled to review the rules under which nonprofit clubs must operate in regard to liquor licenses. Those clubs receive tax credits as nonprofits. They pay less for a liquor license and pay half as much in taxes on paper gaming.
Hill said nearly two dozen private businesses were among those who initially complained at a board meeting two months ago, citing the clubs' unfair advantage in opening up their doors to the public and having lower overhead costs.
"They can sell the product cheaper," Hill said. "We don't think that it's fair" for those clubs to operate around the rules.
After that meeting, Delaney said, board members and license inspectors visited a number of establishments allegedly selling liquor without checking to see if the buyer was a club member. In many cases, they weren't. Inspectors had lunch at the Cumberland Outdoor Club and paid the bill. Their eligibility to dine at the club was not questioned.
Board member Mike Griffith said the club was told to halt its practice of selling liquor to nonmembers. Club officials promised they'd stop.
"Since that time, that club has not made those changes," Griffith said.
Delaney noted that most of the area's civic organizations are having a difficult time generating revenue. Four clubs have recently shut down, including the local Elks and Moose lodges as well as the Alvin C. Neat and Fulton Myers American Legion posts. A tough economy and a declining membership are just two reasons why - but those reasons don't justify bending the rules, he said.
Delaney said he hoped the meeting - and any subsequent news coverage - resulted in an increase in awareness on the part of the clubs and their patrons.
A June 5 letter from the board to each of the 39 nonprofit liquor license holders in Allegany County announced a mandatory "special meeting" for Tuesday. At least one representative from each club was required to attend.
Attempts to reach Roger Mullanex, house chairman for the Cumberland Outdoor Club who attended Tuesday's meeting, were unsuccessful.
Contact Kevin Spradlin at kspradlin@times-news.com.
