VETOES

May 25, 1989

The Honorable R. Clayton Mitchell, Jr.
Speaker of the House of Delegates
State House
Annapolis, Maryland 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland
Constitution, I have today vetoed House Bill 1103.

House Bill 1103 would prohibit the transfer or issuance of
alcoholic beverage licenses for use in any business in Charles
County that participates in a Food Stamp or other governmental
food subsistence program. The bill only applies to licenses
issued after July 1, 1989, and does not affect renewals of
licenses.

This bill is contrary to the intent of food subsistence programs
which are designed to make food more readily available to the
economically disadvantaged. In rural communities, many outlets
sell both food and alcoholic beverages. Since alcoholic beverage
sales are generally more profitable than food sales, it is likely
that retailers will simply refuse to handle Food Stamps while
still selling alcoholic beverages. I am concerned that the
effects of the bill would be to limit the number of food outlets
that accept Food Stamps in Charles County, thereby increasing
transportation costs and narrowing choices for poor families. In
some instances, the result may be that the poor are forced to
patronize stores charging higher prices.

I note that federal law provides adequate safeguards to ensure
that Food Stamps are not used to purchase alcoholic beverages.
Furthermore, in order for a retain business to participate in the
Food Stamp program, it must have a recognized grocery department
in which staple foods make up at least 50 percent of eligible
food sales. See 7 CFR § 278 et seq. Indeed, it may be that
federal law preempts such regulation on the state level.

Because this bill would set the undesirable precedent of placing
unwarranted State impediments on Food Stamp recipients, I have
vetoed House Bill 1103.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 1103

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