A bill to create a Department of Consumer Protection and Business Licensing in Baltimore government, which languished last year in committee, was unanimously passed tonight by the City Council, a triumph for its sponsor, Third District Councilman Ryan Dorsey.

The department will be responsible for administering business licenses, investigating complaints of deceptive or abusive consumer practices, and conducting surveys and studies across a wide swath of activities now governed by multiple agencies.

For example, the Bureau of Revenue Collections in the Finance Department and several independent boards are currently responsible for licensing auctioneers, employment agencies, pawnbrokers, transient merchants, street entertainers. motor fuel sales, consignment sales and “animated riding devices.”

Peep shows and massage parlors, meanwhile, are handled by the Department of Housing and Community Development.

The Police Commissioner licenses scrap collectors, scavengers and auction jewelry sales; trespass towing is under the purview of the Department of Transportation; and the law department is tasked (under a 2023 Council bill) with holding businesses who harm Baltimore citizens accountable.

Up to $1,000 Fines

The new legislation will consolidate licensing and business regulation into a single department with the power to investigate consumer complaints and issue civil citations up to $1,000.

An accompanying five-member board, appointed by the mayor, city council president and comptroller, will have the power to suspend the license of a business that engages in unfair or deceptive practices.

“Baltimore is unusual in so many ways. Standard ways of governing should not be among them,” Dorsey said earlier this month, noting that many cities and county governments have consumer protection bureaus.

The new department will initially require about 20 employees, with 12 new positions, including for a director, three operations officers and five consumer complaint investigators.

“This is a great example of us standing together on behalf of our residents”  – Council President Zeke Cohen.

While some costs will be offset by the transfer of employees from other agencies, the net impact on the city budget could be as high as $1.75 million.

That estimate led the Department of Finance to oppose Dorsey’s original bill, saying that “more efficient service delivery for business licensing” could be established.

The reintroduced legislation, however, had the support of new Council President Zeke Cohen, who noted it was intentionally listed as Bill 25-0001, the first introduced in this session.

“The 74th City Council is standing up for consumers and fighting for Baltimoreans, and this is a great example of us standing together on behalf of our residents and fighting for better,” Cohen said.

Mayor Brandon Scott is expected to sign the bill, which will go into effect within 90 days.