Bill seeks longer hours for selling liquor • But Department of Commerce wants license fees increased to boost revenues

Stores may be allowed to sell beer and other alcohol up to midnight everyday if a pending bill becomes law, but they will have to pay stiffer price to do it — higher license fees.

Legislators are proposing an increase of more than 300 percent in the fees under the legislation seeking to revamp the Alcoholic Beverage Control Act which has been in effect on the island since the Trust Territory administration.

Andrew Salas, ABC administrator at the Department of Commerce, said the rate hike is expected to push prices of beer, wine and liquor once the administration-sponsored measure is signed into law.

Introduced by House Majority Floor Leader Ana S. Teregeyo, House Bill 11-337 was passed last Friday and now heads to the Senate for action.

Under the proposal, stores or “off-sale” retailers shall be allowed to sell alcohol for additional two hours everyday, from 7 AM to midnight beyond the current 10 PM restriction in a shift of policy, except during Sunday and elections or as declared by the governor.

Clubs and other “on-sale” establishments, however, will retain business hours of serving alcohol, from 9 AM to 2 AM the following morning.

According to Salas, the decision to change the hours for “off-sale” is connected with the raise in fees, which are now at par with existing rates in Guam, Hawaii and California. These states, however, have longer hours in selling alcohol.

“We have to make a policy decision whether we can go at 10 PM or 12 midnight,” he told in an interview, “and you can almost justify the 300 percent increase by increasing it to two hours.”

But Rep. Melvin Faisao, the lone House member opposed to the plan, warned the additional hours could also multiply DUI cases or driving under the influence of alcohol, thus risking the safety of the residents.

Other representatives likewise were worried over the time restriction put in place on Sunday — a day in which families gather to mark special occasions with food and drinks.

The provision was specifically requested by church leaders in observance of religious obligation. Teregeyo cautioned legislators against striking it out in the measure, saying “we’re predominantly religious individuals.”

Salas, meanwhile, underscored the importance of the proposal during deliberation by the House last Friday, explaining its impact on the revenue collections of the cash-strapped government.

The license fees currently stand at about $15 per year, which has been the rate for the last 26 years. Once the measure is passed, establishment selling and serving alcohol as well as distributors and manufacturers will have to pay between $350 to $1,000 to the government.

“It comes in the right time when the economy is not going well. We really need the funds that we are going to be generating from ABC,” Salas explained. “It will also make us more competitive with other government agencies so that at least we can pay for our (operations).”

Up to $500, 000 in extra revenues is expected to be realized from the new fees when about 800 businesses renew their license by June 30 if it becomes law by that time, the commerce official said.

People will have to anticipate higher prices for beer, wine and liquor in the coming months to make up for the increased fee.

“Well they want to drink beer and they are going to pay for it,” Salas said.