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Posts from the ‘D.C. Council’ Category

Oct 31

No Compromise: Food Truck Association Continues Campaign Against DCRA Regulations

The D.C. Food Truck Association (“DCFTA”) activated its public relations and lobbying campaign to oppose the District of Columbia’s Department of Consumer and Regulatory Affairs’ (“DCRA”) second attempt to update the vending regulations in the District.  On October 5, DCRA published proposed regulations to update the 30-year-old regulations which provide health and safety guidelines for sidewalk and roadway vendors but currently do not include food trucks.

In a continuous effort to encourage food truck owners to operate in designated areas and avoid overcrowding city streets, the Government’s most recent legislation establishes Mobile Roadway Vending (“MRV”) zones, wherein up to three food trucks may park from 11:00 a.m. to 3:00 p.m. so long as the individual trucks hold operating licenses.  Outside of these zones, food trucks are still permitted to park in metered parking spaces as they have been, provided they pay for the meter.

In spite of the flexibility that this legislation gives to food trucks while also clearing up traffic in otherwise crowded streets, the DCFTA vehemently opposes the newly proposed regulations.  In particular, the DCFTA cites the need for dense concentration of food trucks during certain planned events as a primary incentive to turn down the Government’s proposal.  DCFTA also objects to the requirement that an MRV may not be established “[w]here the adjacent unobstructed sidewalk is less than ten feet (10 ft.) wide in the Central Business District or seven feet (7 ft.) wide outside the Central Business District.”

Sidewalk vendors currently have a similar restriction, which requires vendors to maintain ten feet (10 ft.) and seven feet (7 ft.) walkways where they vend.  Restaurants with sidewalk cafes must also follow strict regulations that maintain unobstructed walkways.  Food trucks claim they are being unduly burdened by these long established rules for maintaining clear walkways for pedestrians.

DCFTA is lobbying the D.C. Council, which ultimately must vote on these regulations, and is asking food truck supporters to petition Mayor Vincent Gray to rewrite the rules.  The public can still make comments on these regulations until 5pm on November 13th.

Comments may be sent to Helder Gil, Legislative Affairs Specialist, the Department of Consumer and Regulatory Affairs at 1100 Fourth St. SW, Room 5164, Washington, D.C. 20024. Comments may be e-mailed to DCVendingRegs@dc.gov.

Jul 2

Reform Hearing Set for July 12, 2012: Omnibus Alcoholic Beverage Regulation Amendment Act of 2012

The D.C. Council Committee on Human Services is hosting a hearing on July 12, 2012 at 11:00 AM for the Omnibus Alcoholic Beverage Regulation Amendment Act of 2012 (“Omnibus”).  The bill, introduced by Councilmember Jim Graham (Ward One) and cosponsored by Jack Evans (Ward Two) is set to amend Title 25 of the D.C. Code, which pertains to alcoholic beverages.  The hearing will take place at Room 412 of the John A. Wilson Building at 1350 Pennsylvania Ave. NW (photo ID required).

The following are among some of the 43 changes proposed by Omnibus:

  • To create a new Wine Pub permit that allows for the manufacturing and the sale of wine to consumers;
  • To increase the wine alcohol percentage that can be sold by retailer’s class B licensees from 14% to 15%;
  • To allow retailer’s class C and D licensees to purchase from retailer’s class A licensees when District wholesalers are closed;
  • To require notice of placarded license applications to citizen associations registered with ABRA;
  • To require a group of five or more residents or property owners to be within a 400 foot radius to qualify for standing;
  • To require citizens associations to give notice to applicants and offer applicants an opportunity to address their voting body at a duly scheduled meeting;
  • To require citizen associations to give notice to applicants and offer applicants an opportunity to address their voting body at a duly scheduled meeting;
  • To make it a primary tier violation for failure to comply with the statutory food requirements;
  • To require that windows and doors of an establishment remain closed for a noise violation under D.C. Code  § 25 -725 to occur;
  • To make it a secondary tier violation to knowingly allow a patron to exit an on-premises establishment with an open container of alcohol;
  • To establish an affirmative defense to a violation of D.C. Code § 25-783(a) that the person was 21 years of age or older;
  • To allow the Board to fine a licensee $30,000 and suspend a license for 30 consecutive days for a fourth primary tier violation within four years.

The full bill can be found here.  A full recap of the hearing will be provided in a subsequent blog posting.

It is important to note that to be given speaking time (5 minutes for businesses/representatives, 3 minutes for individuals), registration is required by contacting Council staffer Malcolm Cameron at mcameron@DCCouncil.US or 202-724-8191.  In addition, the D.C. Council is requesting that any speakers provide 15 copies of their statements.

Jun 6

D.C. Council Approves Bill Extending Alcohol Service Hours for Holidays, Extended Service During Inauguration

On June 5, the D.C. Council put the final stamp of approval on the bill permitting D.C. bars, restaurants and hotels to serve patrons until 4:00 a.m. the night before federal and D.C. holidays. This extension of hours is expected to bring in at least $3.2 million in revenues, preventing a deficit and a potential increase in taxes and fees.

As reported in our May 16th post, D.C. Council Bill 19-743, which can be viewed here starting on page 29, amends District of Columbia Official Code Title 25 Chapter 7 to allow licensed establishments to serve patrons one hour later on approved dates.  In addition to the night preceding District and federal holidays, the Saturdays and Sundays preceding Memorial Day and Labor Day will also see extended service hours.  Extended service will also be permitted on the Saturday and Sunday adjacent to New Year’s Day and Independence Day, as long as either holiday falls on a Friday through Monday.

Mayor Vincent C. Gray’s initially proposed extending alcohol service hours by one hour from 2:00 a.m. to 3:00 a.m. and 3:00 a.m. to 4:00 a.m. on weeknights and weekends, respectively.  However, the D.C. Human Services Committee voted 3-2 to strip this proposal from the 2013 budget, described in our May 3rd post.  This vote followed the standoff seen throughout the district between several neighborhood groups in opposition of the proposal and local entrepreneurs, as detailed in our April 18th post.

This measure also includes the extension of service hours during what the bill designates “Inaugural Week,” which occurs the week of January 15 through January 21 in 2013.  During this week, licensed bars, restaurants, and hotels can serve patrons until 4:00 a.m.  However, these establishments must provide the Alcoholic Beverage Control Board and the D.C. Metropolitan Police with written notice of their hours of operation and a public safety plan no later than January 7, 2013.  These businesses must also pay fee for each day they extend their hours ($250 for a CN license, $100 for a CR or CT license, $50 for any other license).

For more information please contact Michael J. Kozlowski Jr., at mkozlowski@dbmlawgroup.com or (202) 589-1834.

May 3

D.C. Council Committee Rejects Extended Bar Hours; Votes to Increase Alcohol Tax

The D.C. Human Services Committee voted 3-2 to strip from the 2013 fiscal budget the Mayor’s proposal to extend alcohol sales to 3 a.m. on weekdays and 4 a.m. on weekends.  Instead, the committee proposed increasing the sales tax on alcoholic beverages above the current level of 10 percent.  This alcohol excise tax, paid by wholesalers and increasing product costs for both on-premise venues and retailers alike, would result in a price increase for both businesses and consumer alike.

As reported in our April 18th post, many neighborhood groups organized against extending bar hours, citing the potential for increased late-night noise, crime, and parking issues.  Entrepreneurs endorsed the proposal as a way to boost the city’s reputation as a world-class hospitality destination..

Lynne Breaux, president of the Restaurant Association Metropolitan Washington (RAMW), issued a press release criticizing the council members for increasing the tax burden on local small businesses.

“Restaurants and bars are the first businesses to be tapped to help create a sense of community in areas of new development or to revitalize existing neighborhoods – and are the first businesses to be targeted for taxes, fees and excessive regulatory oversight,” said Breaux.

If the alcohol tax increase is defeated, several council members told the Washington Post that the proposed extension of bar hours could resurface as members try to balance the budget.

“Certainly, we could do it on a temporary basis and see what the ramifications are,” said council member David A. Catania (I-At Large). “If some of the negative consequences come to fruition, we could revisit.”

The committee did, however, unanimously approved two of Gray’s alcohol proposals, including allowing bars to serve until 4 a.m. during the week of the presidential inauguration. The committee also agreed to allow Class A and Class B carryout liquor stores to open at 7 a.m. instead of 9 a.m., except on Sundays.

The committee did not vote on a proposal that would allow liquor stores to open on Sundays.

Apr 18

Entrepreneurs, City Residents Face Off At Hearing On Extended Alcohol Sale Hours

On Tuesday night, Ward 1 Councilmember and Chairman of the Human Services Committee, Jim Graham, heard six-hours of testimony from District residents and the hospitality and business community members about D.C. Mayor Vincent Gray’s proposal to extend bar hours in order to raise $5 million in new revenue.

The witness list, available here, included 48 individuals as well as Fred Moosally, Director of the Alcohol Beverage Regulation Administration (ABRA).

Entrepreneurs endorsed Mayor Gray’s proposal and offered support to the idea that extended sales hours will increase revenue as well as boost the city’s reputation as a world-class hospitality destination.  Business owners pointed out that many establishments have Voluntary Agreements, which limit their operating hours.  Owners stated that this type of staggered closings, some bars closing earlier while other close later, would alleviate any concerns of excessive noise from patrons leaving the establishment at later hours.

In his testimony, Mr. Moosally confirmed that the extended hours would not apply to 267 bars, nightclubs and restaurants that have existing Voluntary Agreements with their neighbors.

Council member Graham appeared steadfast in his opposition to longer sale hours, particularly in light of the number of witnesses at the hearing from Adams Morgan and Kaloroma, neighborhoods located in the council member’s own ward, who opposed the extension of hours.  Neighborhood opponents argued that the longer hour would exacerbate existing noise and parking issues and create public safety concerns such as drunk driving.   Some opponents said they could support it if the extended hours were limited to downtown or in non-residential areas, however, Graham stated that would place some establishments at a competitive disadvantage against others who could close later.

Despite his disapproval of the Mayor’s proposal, if it does not pass, Graham would be forced to raise the $5 million in new revenue or make spending cuts to the city’s fiscal 2013 budget to replace the projected revenue expected from this proposal.

According to the Washington Post, Council Chairman Kwame R. Brown may have the final say on whether the fiscal year 2013 budget can remain balanced without Gray’s proposal. At a news conference Tuesday, Brown said he remains undecided on the proposal but understands community opposition.

To watch the entire six-hour hearing, click here.

Mar 7

D.C. Council to impose sales tax on Food Truck Operators

On March 1, 2012, the Committee on Finance and Revenue of the Council of the District of Columbia passed out of committee, by unanimous vote, the Vendor Sales Tax Collection and Remittance Act of 2012, which would require vendors in the District to collect sales taxes from patrons and remit them to the District, like other businesses.  Both Virginia and Maryland require food vendors to collect sales tax.

Councilmember Jack Evans (D-Ward 2) first introduced the bill last year to amend a section of the District’s tax code that exempts sidewalk and mobile street vendors from sales tax requirements.  Currently, sidewalk and mobile street vendors, including food trucks, pay a quarterly fee of $375 to the District in lieu of having to pay the 10% retail sales tax on prepared food the way other food service businesses must.

Food truck operators’ main objection to the bill focuses on how the District will tax each street vendor.   Food truck operators claim that there exists the threat that they will be taxed multiple times because some trucks hold multiple operating licenses.

Stephen Cordi, Deputy Chief Financial Officer for the District’s Office of Tax and Revenue, is quoted in a Washington Post article on the subject as stating, “the way [he] reads the proposed bill, each business vendor — not the individual licensees tied to the business vendor — would be required to submit sales taxes.”

Food truck operators also argue that this issue should be dealt with under the proposed vending regulations that the D.C. Department of Consumer and Regulatory Affairs issued in January.  The new regulations created controversy between the food truck community, which largely supports the regulations, and the brick-and-mortar restaurants, who argue that the rules grant food trucks an unfair competitive advantage.

The public comment period for the new vending regulations closed last week. More than 3,200 comments were submitted to the DCRA and the department plans to spend the next week or two reviewing the opinions and talking with city agencies and various stakeholders about how to resolve the conflicts between food trucks and bricks-and-mortars. The DCRA hopes to bring the final regulations to the D.C. Council before the end of the year. The Council could reject the regulations and force all parties to operate under the current ones.

Evans said to the Washington Post that he could not wait any longer for the Council to approve the new vending regulations before moving ahead with the tax bill.  “My position is, if I give you enough time and if you don’t do it, [expletive] you, I’m going to move ahead and put the tax in place. That’s how I operate. People know that’s how I operate.”

The Vendor Sales Tax Collection and Remittance Act, which is expected to pass the full Council, could receive its first reading in April and go into effect October 1st.

Feb 29

Bringing Order to D.C.’s Food-Truck Craze (By Editorial Board, Washington Post)

(The following article was published in the Washington Post’s Editorial Section on February 28, 2012.)

Something else — in addition to a new president — was inaugurated in Washington on Jan. 20, 2009. That day, the Fojol Brothers served up their signature Indian food in the D.C. debut of food trucks. Since then, there has been an explosion of these popular mobile vendors, with lunchtime crowds lining up for everything from lobster rolls to Korean tacos. The trucks have added vitality to urban dining and neighborhoods.

The rapid growth of this industry also has created issues that require thoughtful regulation. The job of writing rules that acknowledge the legitimate concerns of traditional restaurants without stifling innovation falls to the city’s Department of Consumer and Regulatory Affairs (DCRA), which “tries to force everybody into the room . . . and find something that works for everybody,” Helder Gil, legislative affairs specialist for DCRA, told The Post’s Tim Carman.

That seems to have been wishful thinking. The department’s draft rules, after 19 months of study, have fueled a fierce debate. “David vs. Goliath” is how food-truck fans portray the battle against the perceived clout of brick-and-mortar restaurants; the local restaurant association, in turn, professes to want not to ban food trucks but only to ensure a level playing field. The proposed regulations need D.C. Council approval to become law, which means the battle will likely intensify.

That’s too bad, because DCRA’s proposed rules strike a reasonable balance. Mobile vendors would no longer have to abide by the silly “ice cream truck” rule that requires them to drive off when no one is waiting in line. Instead they could pay the parking meter and remain in that spot until the meter expires. Vending development zones would allow neighborhoods some say in how many mobile and sidewalk vendors to allow in an area. DCRA officials stressed that this couldn’t be used to ban vendors but would be an urban planning tool, akin to communities regulating the number of alcohol licenses.

Some further refinement is needed. How the zones would be managed and by whom needs to be spelled out. A restaurant owner may think, for example, that there are too many trucks at Franklin Square, while customers may find that concentration has brought new life to the downtown park. Perhaps truck vendors can do more to deal with trash and other nuisance issues that arise from their operations. We also don’t understand the logic of insisting that trucks selling ice cream and other sweets remain subject to the rule of having to move if no one is standing in line.

Restaurants complain, fairly, that food trucks don’t have to collect sales tax. That doesn’t come under the purview of these regulations: A bill making this fix has languished in the council for the last year and should be passed. Also deserving of attention are complaints from the restaurants about the burdensome regulations they face in setting up sidewalk cafes and undertaking other improvements. Freeing restaurants from excessive regulation is a better way to level the playing field than is piling misery on those who operate food trucks.

The Washington Post Editorial Board, 2.28.2012
www.washingtonpost.com

Feb 28

Debate Continues Over Food Truck Locations

As the debate continues over Food Truck regulations, residents in Dupont Circle and other areas are concerned with the possibility of mobile restaurants in front of their homes.

The Georgetown advisory neighborhood commission unanimously passed a resolution on Jan. 30 calling for trucks to be banned on streets with Residential Permit Parking restrictions.

Dupont Circle commissioner Bob Meehan voiced his concerns at the Dupont Circle Advisory Neighborhood Commission, “I cannot support food trucks being able to say, ‘Oh, I can’t get on the main street, I’ll go in front of the houses right around the corner’,” Meehan said, “That’s not acceptable to me.”

Proposed restrictions would also give the D.C. Department of Consumer and Regulatory Affairs the right to designate additional food truck zones with more rigorous restrictions. The Dupont Circle commission unanimously requested that the neighborhood commissions be allowed to weigh in on those established zones.

The regulatory agency plans to take two months to speak to the food truck and restaurant industries to discuss any changes to the proposed regulations. The Agency extended the comment period on the proposed Food Truck regulations to March 1.

Robert W. Doyle, Jr.

(202) 589-1839

rdoyle@dbmlawgroup.com

Jan 23

DCRA Issues A Second Round Of Proposed Vending Regulations To Support Food Trucks

Almost two years after publishing proposed regulations enforcing the Vending Regulation Act of 2009 (D.C. Law 18-71; 56 DCR 6619), the D.C. Department of Consumer and Regulatory Affairs (“DCRA”) published on January 20, 2012 a second round of proposed regulations attempting to enforce the statutory requirements of the 2009 Act.  The 2009 Vending Act updated the District’s authority to regulate commercial vending, and authorized the Mayor “to require vendors to vend only from designated locations, to grandfather existing vendors into designated vending locations;  to authorize vending development zones within which alternative forms of regulation of vending may be tested, to authorize the Mayor to charge fees for licenses and other authorizations to vend from public space, to authorize the imposition of civil fines for the violation of this act or rules issued pursuant to this act, and to authorize the regulation of public markets.”

In response to over 2,500 constituent comments submitted about the 2010 proposed regulations, DCRA made substantive changes to the proposed regulations, including exempting mobile food truck vendors from the public space “site permit” requirement that every other vendor must obtain and allowing them to use legal parking spaces.  In essence, the revised regulations relax restrictions on savory food trucks, allowing them to stay parked for longer periods of time when they are not serving customers.  DCRA is soliciting comments on these new proposed regulations.  All persons who wish to comment should submit comments in writing to Helder Gil, Legislative Affairs Specialist, Department of Consumer and Regulatory Affairs, 1100 Fourth Street, SW, Room 5164, Washington, D.C. 20024, or via e-mail at DCVendingRegs@dc.gov, no later than February 20, 2012 , which is thirty (30) days after publication of the regulations in the D.C. Register.

To see a copy of the new proposed regulations, please click here.