1494                                      Vetoes

With kindest personal regards, I am

Sincerely yours,

(S) J. MILLARD TAWES,

JMT/S/mw                                                                     Governor.

April 30, 1959.
Honorable J. Millard Tawes
Governor of Maryland
Annapolis, Maryland

Dear Governor Tawes:

At your request, we have examined House Bill No. 265. Although
the State of Maryland appears to have the right under its police power
to control the alcoholic beverage business—even to the point of estab-
lishing minimum retail prices—we have serious doubt as to whether
the present bill constitutes a valid exercise of that power.

The bill commences with a legislative declaration that it is the
policy of the State "to encourage the maintenance and observance
throughout the State of uniform resale prices at all levels in the
sale and distribution of wines and liquors for the purposes of (a)
eliminating price wars which unduly stimulate the sale and consump-
tion of wines and liquors, (b) bringing about the orderly sale and
distribution thereof, and (c) fostering and promoting temperance."
The bill contains a further legislative declaration to the effect that
the members of the industry have obstructed the fulfillment of this
policy by their failure adequately to make and enforce fair trade
contracts as now authorized by law.

It then authorizes and directs the Comptroller to promulgate regu-
lations requiring the filing of a schedule of minimum consumer prices
"for each brand of liquor or wine by bottle and/or case, the container
of which bears a label stating the brand or the name of the owner
or manufacturer". The price so posted is required to be uniform
throughout the State and to remain in effect until changed in the
manner provided for in the bill.

The sale by any retail dealer of liquor or wine for less than the
minimum resale price so posted is prohibited, except upon permis-
sion of the Comptroller "granted for good cause shown and for rea-
sons not inconsistent with the purposes" of the bill. The Comptroller
is given authority to "suspend or revoke, after a hearing, the license
of any licensee who shall fail to comply with the provisions" of the
bill "or any regulation promulgated under the authority contained"
therein.

Additional provisions of the bill deal with enforcement aspects.

If we were dealing with a bill which prohibited the sale of alcoholic
beverages below certain minimum retail prices anywhere in Mary-
land, it would be very much like those statutes in force in a large
number of States (see Annotation 14 A.L.R. 2d 699). It is to be
noted, however, that Montgomery, Somerset, Harford, Wicomico and
Worcester Counties are exempted from the provisions of the bill.
It is true that each of these counties has a county dispensary system,
but the bill does not even suggest that as a justification for their
exclusion. In fact, the bill on its face indicates to the contrary.

The exclusion of Montgomery County was clearly not made on the
basis of its having a county dispensary; it was exempted solely on