Maryland 2022 2022 Regular Session

Maryland House Bill HB232 Engrossed / Bill

Filed 03/17/2022

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