EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0232* HOUSE BILL 232 A2 2lr0839 By: Montgomery County Delegation Introduced and read first time: January 13, 2022 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Montgomery County – Alcoholic Beverages – Class B Beer, Wine, and Liquor 2 (Clubhouse/Lodge) License – Manufacturer’s Licenses 3 MC 23–22 4 FOR the purpose of authorizing the holder of a Class B–BWL (clubhouse/lodge) license in 5 Montgomery County to be issued a Class 4 limited winery license and a Class 7 6 micro–brewery license to manufacture, sell, and serve certain products; providing 7 that certain restrictions and requirements on the holder of a Class 4 limited winery 8 license do not apply to the holder of both licenses; and generally relating to alcoholic 9 beverages licenses in Montgomery County. 10 BY repealing and reenacting, without amendments, 11 Article – Alcoholic Beverages 12 Section 2–212(a) and 25–102 13 Annotated Code of Maryland 14 (2016 Volume and 2021 Supplement) 15 BY repealing and reenacting, with amendments, 16 Article – Alcoholic Beverages 17 Section 25–401, 25–405, and 25–1003 18 Annotated Code of Maryland 19 (2016 Volume and 2021 Supplement) 20 BY adding to 21 Article – Alcoholic Beverages 22 Section 25–407 23 Annotated Code of Maryland 24 (2016 Volume and 2021 Supplement) 25 2 HOUSE BILL 232 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Alcoholic Beverages 3 2–212. 4 (a) (1) This subsection does not apply to a Class 6 pub–brewery license. 5 (2) The holder of a distillery, rectifying, winery, limited winery, brewery, 6 or farm brewery license may apply for and obtain, under a different name, one or more 7 additional distillery, rectifying, winery, limited winery, brewery, or farm brewery licenses 8 for the same or different premises. 9 (3) (i) The holder of multiple manufacturer’s licenses at the same 10 location may allow the sampling, sales, and consumption of products produced under the 11 licenses at each of the licensed premises. 12 (ii) The sampling, sales, and consumption of products shall be 13 consistent with the authorization for each license. 14 (4) The additional licenses may be issued to different persons or under 15 trade names used by persons occupying all or a part of the same premises. 16 (5) A holder of a license listed in paragraph (2) of this subsection may hold 17 additional licenses listed in paragraph (2) of this subsection of the same or of a different 18 class. 19 (6) The holder of a micro–brewery license may apply for and obtain not 20 more than one additional micro–brewery license for another premises. 21 25–102. 22 This title applies only in Montgomery County. 23 25–401. 24 (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 25 Division I of this article apply in the county without exception or variation: 26 (1) § 2–201 (“Issuance by Comptroller”); 27 (2) § 2–202 (“Class 1 distillery license”); 28 (3) § 2–204 (“Class 2 rectifying license”); 29 (4) [§ 2–206 (“Class 4 limited winery license”); 30 HOUSE BILL 232 3 (5)] § 2–207 (“Class 5 brewery license”); 1 [(6)] (5) § 2–210 (“Class 8 farm brewery license”); 2 [(7)] (6) § 2–211 (“Residency requirement”); 3 [(8)] (7) § 2–212 (“Additional licenses”); 4 [(9)] (8) § 2–213 (“Additional fees”); 5 [(10)] (9) § 2–214 (“Sale or delivery restricted”); 6 [(11)] (10) § 2–216 (“Interaction between manufacturing entities and 7 retailers”); 8 [(12)] (11) § 2–217 (“Distribution of alcoholic beverages — Prohibited 9 practices”); and 10 [(13)] (12) § 2–218 (“Restrictive agreements between producers and 11 retailers — Prohibited”). 12 (b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 13 this article does not apply in the county. 14 (c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 15 Division I of this article apply in the county: 16 (1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this 17 subtitle; 18 (2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle; 19 (3) § 2–206 (“CLASS 4 LIMITED WINERY LICEN SE”), SUBJECT TO § 20 25–407 OF THIS SUBTITLE ; 21 (4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this 22 subtitle; and 23 [(4)] (5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of 24 this subtitle. 25 25–405. 26 (a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in 27 the county. 28 4 HOUSE BILL 232 (b) The license may be issued to the holder of: 1 (1) a Class B beer, wine, and liquor (on–sale) license that is issued for use 2 on the premises of a restaurant located in the county; 3 (2) subject to subsection (c) of this section, a Class D beer and wine license 4 that is issued for the sale of beer and wine, at retail, at the place described in the license, 5 for on– and off–premises consumption; 6 (3) a Class H beer and wine license that is issued for the sale of beer and 7 wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises 8 consumption; [or] 9 (4) a Class BD–BWL license that is issued for the sale of beer and wine for 10 on– and off–premises consumption, and liquor for on–premises consumption, at the place 11 described in the license; OR 12 (5) A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS ISSU ED 13 FOR THE SALE OF BEER AND WINE FOR ON– AND OFF–PREMISES CONSUMPTION , AND 14 LIQUOR FOR ON –PREMISES CONSUMPTION , AT THE PLACE DESCRIB ED IN THE 15 LICENSE. 16 (c) The [Comptroller] COMMISSION may not issue more than an aggregate 17 amount of two Class 7 micro–brewery licenses to holders of Class D beer and wine licenses 18 in the Town of Kensington. 19 (d) A holder of the license shall enter into a written agreement with the Alcohol 20 Beverage Services for the sale and resale of malt beverages brewed under the license. 21 (e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a 22 Class 7 micro–brewery license may: 23 (i) brew in two locations using the same Class 7 micro–brewery 24 license; and 25 (ii) obtain a Class 2 rectifying license for the premises at the two 26 locations authorized under item (i) of this paragraph. 27 (2) The holder of a Class 7 micro–brewery license may brew in two locations 28 using the same Class 7 micro–brewery license if the license holder: 29 (i) requests permission by submitting a written application to the 30 [Comptroller] COMMISSION; and 31 (ii) obtains written approval from the [Comptroller] COMMISSION. 32 HOUSE BILL 232 5 (3) Before authorizing a holder of a Class 7 micro–brewery license to brew 1 in two locations using the same Class 7 micro–brewery license, the [Comptroller] 2 COMMISSION shall: 3 (i) make a determination that a second location to brew additional 4 capacity is necessary due to insufficient space at the existing Class 7 license location; and 5 (ii) consider any other factor relevant to approval of the application. 6 (4) Notwithstanding any other provision of this article, a holder of a Class 7 7 micro–brewery license may not serve or sell malt beverages for on– or off–premises 8 consumption at the second brewing location authorized under this subsection. 9 25–407. 10 (A) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE MAY BE 11 ISSUED A CLASS 4 LIMITED WINERY LICENSE TO SELL AND S ERVE THE FERMENTED 12 AND DISTILLED PRODUC TS THAT THE HOLDER M ANUFACTURES FOR ON – AND 13 OFF–PREMISES CONSUMPTION . 14 (B) THE RESTRICTIONS UNDE R § 2–206(B)(5)(III), (6)(II), AND (9) AND THE 15 NOTICE REQUIREMENT U NDER § 2–206(B)(9) OF THIS ARTICLE DO NOT APPLY TO A 16 LICENSE ISSUED UNDER THIS SECTION. 17 25–1003. 18 (a) There is a Class B–BWL (clubhouse/lodge) license. 19 (b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the 20 Executive Director of the Montgomery County Revenue Authority or the designee of the 21 Executive Director, for use by a multiuse facility that accommodates a golf course, a 22 restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property. 23 (c) The license authorizes the license holder to: 24 (1) sell beer and wine for off–premises consumption; 25 (2) sell beer, wine, and liquor for on–premises consumption; and 26 (3) offer samples of alcoholic beverages at no charge or for a fee. 27 (d) The restrictions contained in § 25–902(b) of this title do not apply to the 28 issuance of a Class B–BWL (clubhouse/lodge) license. 29 (e) THE LICENSE HOLDER MAY ALSO HOLD: 30 6 HOUSE BILL 232 (1) A CLASS 4 LIMITED WINERY LICENSE IN ACCORDANCE WITH § 1 25–407 OF THIS TITLE; AND 2 (2) A CLASS 7 MICRO–BREWERY LICENSE IN A CCORDANCE WITH § 3 25–405 OF THIS TITLE. 4 (F) The annual license fee is $1,000. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6 1, 2022. 7