Arkansas News Bureau • By John Lyon
 

Also Tuesday, the Senate Committee on State Agencies and Governmental Affairs considered Senate Bill 121  by Sen. Robert Thompson, D-Paragould, which would implement across-the-board fee increases for the manufacturers, distributors and retailers of alcoholic beverages.

After panel members questioned whether the bill would harm small distributing companies, Thompson pulled it down and said he would rework it.

Michael Langley, director of the state Alcoholic Beverage Control Division, testified that the fee increases would double ABC's annual budget from $1.6 million to $3.2 million, allowing it to acquire new technology, create educational programs for law officers and sellers of alcoholic beverages and add to its staff, which now consists of 10 office personnel and 17 enforcement personnel.

Langley noted that no large distributors were present to speak against the bill. Representatives of two small distributors did speak against the bill, however, saying the proposal to increase their license fee from $1,000 to $12,500 was too extreme.

"I can see it going up, but 12 times?" said Bruce Cochran, co-owner of Little Rock-based distribution company Custom Beverage, which has about $400,000 in sales per year.

Langley said the license fee for alcohol distributors has not increased since the 1930s.

Several senators said they were concerned that the bill would impose the same fee increase on both large distributors who could afford it and small distributors who could not.

"Let's don't penalize the little guys," said Sen. Bill Pritchard, R-Elkins.