LAST CALL: LAWMAKERS TRYING TO CLOSE LOOPHOLES IN LIQUOR LICENSE LAWS

Cape Girardeau's police chief and a police captain will be at the Capitol Tuesday to testify before the Missouri General Assembly about what they say is a loophole in the state's liquor license laws.

They say the laws allow businesses to bypass the local control of liquor sales.

Police Chief Rick Hetzel and Capt. Steve Strong will testify before committees from both houses about the city's continuing battle with Chances Sports Bar. Despite the city's denying the establishment a municipal liquor license last February, the business opened in March with a state license in hand that allows them to sell liquor by the drink.

"We're trying to do the right thing," Hetzel said of his upcoming testimony before the Legislature. "If we have a bad law, we need to change it."

Hetzel and Strong were invited to Jefferson City as guests of Sen. Peter Kinder and Rep. Mary Kasten, both of Cape Girardeau, and Rep. Vicky Hartzler of Harrisonville. Kinder and Hartzler are sponsoring bills they say would close the liquor license loophole.

The bills, SB 166 and HB 156, would require businesses wanting state resort liquor licenses to comply with city ordinances as well as state laws and regulations.

As the law stands, it is possible for a business to obtain a liquor license from the state even if the business were unable to receive a license from the city where the business is located. Businesses that had been denied a local liquor license may apply directly to the state for a resort license allowing them to sell liquor by the drink in some cases and package liquor in others.

The city of Cape Girardeau denied Chances a liquor license last February because of what Hetzel termed "public safety concerns."

The nightclub is at 823 S. Kingshighway in the same building that formerly housed Peppy's Sports Bar. The owner of Chances, Doug Armour, is the former manager of Peppy's. It is that continuity of management that led to the City Council's decision to deny Chances a municipal license.

In June 1997, the council placed Peppy's on six-month probation because of the number of disturbances at the bar. In December of that same year the council denied a request to renew the license after the probationary license expired. The renewal was again denied in January, and the owner of the nightclub, DeWayne Casey, filed for bankruptcy.

Armour bought the business, renamed it Chances and applied for a retail liquor license, which the city denied in February. Armour alleges the city denied him the license because he had worked as a manager of Peppy's and because the chief claimed there would be no change in the place once Armour opened it.

"The chief of police has a personal problem with me," Armour said. "I'd be more than glad to get a city license, but with this chief in command that's not going to happen."

Armour did not accept the council's ruling as the final word, but instead applied for and obtained a resort license from the state. He opened the nightclub on March 11.

To obtain the resort license, the business must qualify as a resort, but the state definition of a resort is broad enough that businesses, not generally thought of in those terms, may qualify. To be a resort, a business must meet one of three criteria:

-- If the business has at least 30 rooms for overnight accommodation and has a restaurant where 60 percent of the business comes from the sale of food, then the business qualifies as a resort.

-- Or, if the business is a restaurant that is open eight or fewer consecutive months in a year and 50 percent of all gross sales from the restaurant come from meals, then the business qualifies as a seasonal resort.

-- Or, if the business sells food and has annual gross receipts of at least $75,000, of which at least $50,000 was from non-alcoholic sales, then the business qualifies as a resort. The $50,000 in non-alcoholic sales may include not only the sale of food, but cover charges and admission to special events.

It is this final definition of a resort that has allowed several businesses to qualify as resorts and obtain a state liquor license even if the city has denied the business a local license.

"I don't think scoundrels ought to be able to defeat a local city council's will by means of this loophole," said Kinder of the state law. He cited Chances as "one of the most egregious examples and will make for the best testimony."

Hartzler agreed.

"It's very frustrating that state law would supersede the will of the local community," said Hartzler. "This bill is designed to re-establish local control so businesses cannot circumvent the will of the local community."

Hartzler's frustration grew out of an incident in Harrisonville, the county seat of Cass County, involving Casey's General Store, one of a chain of convenience stores.

When the business was just starting up in the city and applying for necessary business licenses, the city informed the store management that the store would be ineligible for a liquor license. A Harrisonville city ordinance denied a municipal liquor license to any business within 300 feet of a church. Casey's built its store next door to one church and across the street from another.

But last summer, city officials learned Casey's was selling package liquor. When city officials investigated, they found the convenience store had received a resort license.

Hartzler said officials with the state's Division of Liquor Control have privately expressed their support for her legislation but publicly cannot.

J.T. Taylor, chief of enforcement officer for liquor control said Friday that the division does not have an official opinion on the proposed change in legislation.

"We are an enforcement agency," Taylor said. "Our job is to enforce whatever law the general assembly passes."

He added that the current law as originally written was intended to be used for businesses, such as hotels, motels and restaurants, that were located outside of municipalities or inside municipalities too small to qualify for liquor-by-the-drink provisions.

Opposition to the house and senate bills has emerged. The Casey's General Store chain of convenience stores has enlisted a lobbyist to oppose the bill.

"Passing this bill is not going to be a cakewalk," Kinder said Friday.

STEPS TO GET A CITY LIQUOR LICENSE

1. Complete application available at city hall

2. If applying for the first time, pay $5 for the city to run a criminalbackground check.

3. Copies of the license application to the police department and fire inspector.

4. Background check on premises done after personal background check is approved.

5. After premise is approved, post sign at premise for 10 days stating that the council plans to vote on license.

6. Council votes on conditional approval.

7. If approved by council, health and fire inspections are conducted.

8. Council makes final vote after premise passes inspections.

9. License issued and good until June 30.

STEPS TO GET A STATE RESORT LICENSE

1. Provide application along with following items to local office Missouri Dept. of Liquor Ccontrol:

-- Copy of Missouri Retail Sales Tax License

-- Missouri Dept. of Revenue statement of No Sales/Use Tax Due

-- Two recent photographs of applicant and front of premise

-- Copy of applicant's paid personal property tax or real estate tax receipt

-- Copy of applicant's voter registration

-- Copy of Missouri Certificate of Incorporation

-- Signed and notirized verification of food sales

-- Schedule of total gross receipts and gross sales of alcoholic beverages

-- Diagram and dimensions of premise

-- Copy of city liquor or letter of approval or disapproval

2. Information sent to the Jefferson City office for processing and issuance of license.