MONTGOMERY COUNTY COUNCIL HANS RIEMER ‘MEMORANDUM To: Councilmembers FROM: Councilmember Hans Riemer DATE: February 22,2016 Re Proposed Changes to State Bill MC 7-16 | apologize forthe short noice ofthis request. As you may have heard, last Thursday morning the Economic Development Committee of the Montgomery County House Delegation voted to replace the text of MC 7-16 the bl that we introduced to privatize special orders, with an amendment that would create a new task force charged with making recommendations on DLC Ina report in July 2017. On Friday morning, the full delegation voted to delay action on this amended bill likely until ths Friday, February 26. ‘Asa result, we have a short window of time to clarify the Counci’s position on this matter. believe it is in the best interests of everyone involved to take action this session - licensees, consumers, DLC, and stakeholders in the County budget. To ensure that our initiative is as effective as possible and respond to some of the isues that have been raised with our bill as, drafted, | believe we should agree to three changes to Bll MC 7-16 as introduced 1. Eliminate the proposed distributor charge. We can still make this change revenue ‘neutral by improving DLC operations and opening more stores. 2. Shift from DLC to the Council the authority to define “special order” and the process by Which products are :assified This will allow us to design a process that fairly balances the needs of stakeholders without requiring state legislation to make small changes. 3._ Allow licensees to purchase special order spirits from private distributors, n addition to wine and beer. | eogret that Ido not have formal amendments ta share at ths time. Over the weekend I have been talking with delegation members, icensees, Chamber representatives, and other stakeholders and | am very hopeful that these straightforward changes will allow us to once again reach consensus and achieve meaningful reform, while giving DLC time to follow through (on its promises to improve