Bill to create separate license for online sales of beverages vetoed

Citing great ambiguities noted by Attorney General Edward Manibusan, Gov. Ralph DLG Torres has vetoed a bill that seeks to create a separate license for online sales of alcoholic beverages.

Torres informed the Legislature that in Manibusan’s comments on the measure, House Bill 22-55, HS1, he expressed several serious concerns regarding the bill’s failure to address the need to establish an effective enforcement regime to ensure that liquor purchased online does not fall in the hands of those under 21 years of age, as door-to-door delivery would be permitted.

Torres

“I share the AG’s apprehensions in this regard,” Torres said.

The bill, authored by Rep. Leila Staffler (D-Saipan), intends to establish a new category of liquor licensing under the statutory code to allow online sales of alcoholic beverages.

The governor reiterated Manibusan’s comment that “online liquor sales should be subject to the same, if not more stringent licensing system, given the nature of e-commerce business and the operational costs and difficulties of monitoring compliance.”

The AG said the bill calls for a self-policing system based on the assumption that most licenses will comply with the restrictions. Manibusan said such a system typically relies on hefty penalties and monetary fines as a deterrence against non-compliance.

Staffler

The AG said the bill does not provide for any enhanced enforcement provisions beyond what is already provided by statute.

In fact, Manibusan said, it is not entirely clear whether the penalties and sanctions provided for in the Commonwealth Code will apply to an Online Sale Licensee who fails to comply with the restrictions set forth in each of those sections in the statute. He further stated that no mention is made whether the penalty provisions in the subsequent subsections in the statute will apply to a non-compliant Online Sale Licensee. The AG said the absence of such language is significant.

Manibusan said that, without an articulated rational, the bill will create a double standard of enforcement that differentiates between non-online liquor sale licensees and online liquor sale licensees.

In vetoing the bill, Torres requested the Legislature to take steps to address the ambiguities in the legislation, referencing compliance with existing provisions of the alcoholic beverage control statutes.