Committee to refine tour-operator rules after small-operator concerns

The Economic Matters Committee on July 16 debated an ordinance to license and regulate commercial walking tour operators in historic Annapolis and asked the sponsor to return with specific amendments to reduce burdens on very small operators.

What the ordinance would do: The proposed ordinance would require commercial tour operators to register as businesses, maintain liability insurance and operate under a consistent business name. The measure's sponsor said the aim is to level the playing field and protect historic resources while allowing legitimate tourism businesses to operate.

Small-operator concerns: Several independent guides testified that the licensing and insurance requirements could be costly for sole proprietors who operate part time. Michael Bors, a local guide, told the committee, "I feel that this legislation is helpful to local tourism ... it levels a playing field," but added that "the licensing fee ... and the insurance" could burden very small operators.

Aldermen and staff discussed options: Alderman Huntley, the bill sponsor, said he supports drafting an amendment that would either exempt sole proprietors or set a low, clear insurance threshold for small operators. He proposed definitions and a tiered approach: a simple registration and fee for small sole-proprietor guides and a stricter insurance and licensing path for larger, multi-employee tour businesses. The city attorney's office explained the city can require indemnification where insurance is impractical: "Sometimes instead of doing insurance ... we require an indemnification provision, which basically means if you caused an issue and we get sued, you are the responsible party," Ashley Leonard, assistant city attorney, said.

Enforcement and appeals: Committee members asked how enforcement and suspension would operate. Staff said the draft ordinance includes an administrative enforcement path that allows director-level action with appeal rights to established appeal bodies; this is consistent with other permit and special-event code sections.

Next steps and committee action: The committee voted to take no action on the ordinance as drafted and asked Alderman Huntley to file amendments that: define a "local small operator" category (sole proprietors or operators with few/no employees), propose a sliding scale or specified minimum insurance limit for different operator sizes, and include a reasonable compliance timeline and a possible expedited process for small operators. Committee members said they expect staff input on fee schedules and the administrative process before the ordinance returns.