MD
Maryland House Bill HB232

Maryland 2022 Regular Session

Maryland House Bill HB232 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 744
21
3-– 1 –
4-Chapter 744
5-(House Bill 232)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0232*
89
9-Montgomery County – Alcoholic Beverages – Class B Beer, Wine, and Liquor
10-(Clubhouse/Lodge) License – Manufacturer’s Licenses
10+HOUSE BILL 232
11+A2 2lr0839
1112
12-MC 23–22
13+By: Montgomery County Delegation
14+Introduced and read first time: January 13, 2022
15+Assigned to: Economic Matters
16+Committee Report: Favorable
17+House action: Adopted
18+Read second time: March 9, 2022
1319
14-FOR the purpose of authorizing the holder of a Class B–BWL (clubhouse/lodge) license in
15-Montgomery County to be issued a Class 4 limited winery license and a Class 7
16-micro–brewery license to manufacture, sell, and serve certain products; providing
17-that certain restrictions and requirements on the holder of a Class 4 limited winery
18-license do not apply to the holder of both licenses; and generally relating to alcoholic
19-beverages licenses in Montgomery County.
20+CHAPTER ______
2021
21-BY repealing and reenacting, without amendments,
22- Article – Alcoholic Beverages
23-Section 2–212(a) and 25–102
24- Annotated Code of Maryland
25- (2016 Volume and 2021 Supplement)
22+AN ACT concerning 1
2623
27-BY repealing and reenacting, with amendments,
28- Article – Alcoholic Beverages
29-Section 25–401, 25–405, and 25–1003
30- Annotated Code of Maryland
31- (2016 Volume and 2021 Supplement)
24+Montgomery County – Alcoholic Beverages – Class B Beer, Wine, and Liquor 2
25+(Clubhouse/Lodge) License – Manufacturer’s Licenses 3
3226
33-BY adding to
34- Article – Alcoholic Beverages
35-Section 25–407
36- Annotated Code of Maryland
37- (2016 Volume and 2021 Supplement)
27+MC 23–22 4
3828
39- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARY LAND,
40-That the Laws of Maryland read as follows:
29+FOR the purpose of authorizing the holder of a Class B–BWL (clubhouse/lodge) license in 5
30+Montgomery County to be issued a Class 4 limited winery license and a Class 7 6
31+micro–brewery license to manufacture, sell, and serve certain products; providing 7
32+that certain restrictions and requirements on the holder of a Class 4 limited winery 8
33+license do not apply to the holder of both licenses; and generally relating to alcoholic 9
34+beverages licenses in Montgomery County. 10
4135
42-Article – Alcoholic Beverages
36+BY repealing and reenacting, without amendments, 11
37+ Article – Alcoholic Beverages 12
38+Section 2–212(a) and 25–102 13
39+ Annotated Code of Maryland 14
40+ (2016 Volume and 2021 Supplement) 15
4341
44-2–212.
42+BY repealing and reenacting, with amendments, 16
43+ Article – Alcoholic Beverages 17
44+Section 25–401, 25–405, and 25–1003 18
45+ Annotated Code of Maryland 19
46+ (2016 Volume and 2021 Supplement) 20
4547
46- (a) (1) This subsection does not apply to a Class 6 pub–brewery license.
48+BY adding to 21 2 HOUSE BILL 232
4749
48- (2) The holder of a distillery, rectifying, winery, limited winery, brewery,
49-or farm brewery license may apply for and obtain, under a different name, one or more Ch. 744 2022 LAWS OF MARYLAND
5050
51-– 2 –
52-additional distillery, rectifying, winery, limited winery, brewery, or farm brewery licenses
53-for the same or different premises.
51+ Article – Alcoholic Beverages 1
52+Section 25–407 2
53+ Annotated Code of Maryland 3
54+ (2016 Volume and 2021 Supplement) 4
5455
55- (3) (i) The holder of multiple manufacturer’s licenses at the same
56-location may allow the sampling, sales, and consumption of products produced under the
57-licenses at each of the licensed premises.
56+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
57+That the Laws of Maryland read as follows: 6
5858
59- (ii) The sampling, sales, and consumption of products shall be
60-consistent with the authorization for each license.
59+Article – Alcoholic Beverages 7
6160
62- (4) The additional licenses may be issued to different persons or under
63-trade names used by persons occupying all or a part of the same premises.
61+2–212. 8
6462
65- (5) A holder of a license listed in paragraph (2) of this subsection may hold
66-additional licenses listed in paragraph (2) of this subsection of the same or of a different
67-class.
63+ (a) (1) This subsection does not apply to a Class 6 pub–brewery license. 9
6864
69- (6) The holder of a micro–brewery license may apply for and obtain not
70-more than one additional micro–brewery license for another premises.
65+ (2) The holder of a distillery, rectifying, winery, limited winery, brewery, 10
66+or farm brewery license may apply for and obtain, under a different name, one or more 11
67+additional distillery, rectifying, winery, limited winery, brewery, or farm brewery licenses 12
68+for the same or different premises. 13
7169
72-25–102.
70+ (3) (i) The holder of multiple manufacturer’s licenses at the same 14
71+location may allow the sampling, sales, and consumption of products produced under the 15
72+licenses at each of the licensed premises. 16
7373
74- This title applies only in Montgomery County.
74+ (ii) The sampling, sales, and consumption of products shall be 17
75+consistent with the authorization for each license. 18
7576
76-25–401.
77+ (4) The additional licenses may be issued to different persons or under 19
78+trade names used by persons occupying all or a part of the same premises. 20
7779
78- (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
79-Division I of this article apply in the county without exception or variation:
80+ (5) A holder of a license listed in paragraph (2) of this subsection may hold 21
81+additional licenses listed in paragraph (2) of this subsection of the same or of a different 22
82+class. 23
8083
81- (1) § 2–201 (“Issuance by Comptroller”);
84+ (6) The holder of a micro–brewery license may apply for and obtain not 24
85+more than one additional micro–brewery license for another premises. 25
8286
83- (2) § 2–202 (“Class 1 distillery license”);
87+25–102. 26
8488
85- (3) § 2–204 (“Class 2 rectifying license”);
89+ This title applies only in Montgomery County. 27
8690
87- (4) [§ 2–206 (“Class 4 limited winery license”);
91+25–401. 28
8892
89- (5)] § 2–207 (“Class 5 brewery license”);
93+ (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 29
94+Division I of this article apply in the county without exception or variation: 30
9095
91- [(6)] (5) § 2–210 (“Class 8 farm brewery license”);
96+ (1) § 2–201 (“Issuance by Comptroller”); 31
97+ HOUSE BILL 232 3
9298
93- [(7)] (6) § 2–211 (“Residency requirement”);
9499
95- [(8)] (7) § 2–212 (“Additional licenses”);
100+ (2) § 2–202 (“Class 1 distillery license”); 1
96101
97- [(9)] (8) § 2–213 (“Additional fees”); LAWRENCE J. HOGAN, JR., Governor Ch. 744
102+ (3) § 2–204 (“Class 2 rectifying license”); 2
98103
99-– 3 –
104+ (4) [§ 2–206 (“Class 4 limited winery license”); 3
100105
101- [(10)] (9) § 2–214 (“Sale or delivery restricted”);
106+ (5)] § 2–207 (“Class 5 brewery license”); 4
102107
103- [(11)] (10) § 2–216 (“Interaction between manufacturing entities and
104-retailers”);
108+ [(6)] (5) § 2–210 (“Class 8 farm brewery license”); 5
105109
106- [(12)] (11) § 2–217 (“Distribution of alcoholic beverages — Prohibited
107-practices”); and
110+ [(7)] (6) § 2–211 (“Residency requirement”); 6
108111
109- [(13)] (12) § 2–218 (“Restrictive agreements between producers and
110-retailers — Prohibited”).
112+ [(8)] (7) § 2–212 (“Additional licenses”); 7
111113
112- (b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of
113-this article does not apply in the county.
114+ [(9)] (8) § 2–213 (“Additional fees”); 8
114115
115- (c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
116-Division I of this article apply in the county:
116+ [(10)] (9) § 2–214 (“Sale or delivery restricted”); 9
117117
118- (1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this
119-subtitle;
118+ [(11)] (10) § 2–216 (“Interaction between manufacturing entities and 10
119+retailers”); 11
120120
121- (2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle;
121+ [(12)] (11) § 2–217 (“Distribution of alcoholic beverages — Prohibited 12
122+practices”); and 13
122123
123- (3) § 2–206 (“CLASS 4 LIMITED WINERY LICEN SE”), SUBJECT TO §
124-25–407 OF THIS SUBTITLE ;
124+ [(13)] (12) § 2–218 (“Restrictive agreements between producers and 14
125+retailers — Prohibited”). 15
125126
126- (4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this
127-subtitle; and
127+ (b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 16
128+this article does not apply in the county. 17
128129
129- [(4)] (5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of
130-this subtitle.
130+ (c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 18
131+Division I of this article apply in the county: 19
131132
132-25–405.
133+ (1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this 20
134+subtitle; 21
133135
134- (a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in
135-the county.
136+ (2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle; 22
136137
137- (b) The license may be issued to the holder of:
138+ (3) § 2–206 (“CLASS 4 LIMITED WINERY LICEN SE”), SUBJECT TO § 23
139+25–407 OF THIS SUBTITLE ; 24
138140
139- (1) a Class B beer, wine, and liquor (on–sale) license that is issued for use
140-on the premises of a restaurant located in the county;
141+ (4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this 25
142+subtitle; and 26
141143
142- (2) subject to subsection (c) of this section, a Class D beer and wine license
143-that is issued for the sale of beer and wine, at retail, at the place described in the license,
144-for on– and off–premises consumption;
145- Ch. 744 2022 LAWS OF MARYLAND
144+ [(4)] (5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of 27
145+this subtitle. 28 4 HOUSE BILL 232
146146
147-– 4 –
148- (3) a Class H beer and wine license that is issued for the sale of beer and
149-wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises
150-consumption; [or]
151147
152- (4) a Class BD–BWL license that is issued for the sale of beer and wine for
153-on– and off–premises consumption, and liquor for on–premises consumption, at the place
154-described in the license; OR
155148
156- (5) A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS ISSU ED
157-FOR THE SALE OF BEER AND WINE FOR ON– AND OFF–PREMISES CONSUMPTION , AND
158-LIQUOR FOR ON –PREMISES CONSUMPTION , AT THE PLACE DESCRIB ED IN THE
159-LICENSE.
149+25–405. 1
160150
161- (c) The [Comptroller] COMMISSION may not issue more than an aggregate
162-amount of two Class 7 micro–brewery licenses to holders of Class D beer and wine licenses
163-in the Town of Kensington.
151+ (a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in 2
152+the county. 3
164153
165- (d) A holder of the license shall enter into a written agreement with the Alcohol
166-Beverage Services for the sale and resale of malt beverages brewed under the license.
154+ (b) The license may be issued to the holder of: 4
167155
168- (e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a
169-Class 7 micro–brewery license may:
156+ (1) a Class B beer, wine, and liquor (on–sale) license that is issued for use 5
157+on the premises of a restaurant located in the county; 6
170158
171- (i) brew in two locations using the same Class 7 micro–brewery
172-license; and
159+ (2) subject to subsection (c) of this section, a Class D beer and wine license 7
160+that is issued for the sale of beer and wine, at retail, at the place described in the license, 8
161+for on– and off–premises consumption; 9
173162
174- (ii) obtain a Class 2 rectifying license for the premises at the two
175-locations authorized under item (i) of this paragraph.
163+ (3) a Class H beer and wine license that is issued for the sale of beer and 10
164+wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises 11
165+consumption; [or] 12
176166
177- (2) The holder of a Class 7 micro–brewery license may brew in two locations
178-using the same Class 7 micro–brewery license if the license holder:
167+ (4) a Class BD–BWL license that is issued for the sale of beer and wine for 13
168+on– and off–premises consumption, and liquor for on–premises consumption, at the place 14
169+described in the license; OR 15
179170
180- (i) requests permission by submitting a written application to the
181-[Comptroller] COMMISSION ; and
171+ (5) A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS ISSU ED 16
172+FOR THE SALE OF BEER AND WINE FOR ON– AND OFF–PREMISES CONSUMPTION , AND 17
173+LIQUOR FOR ON –PREMISES CONSUMPTION , AT THE PLACE DESCRIB ED IN THE 18
174+LICENSE. 19
182175
183- (ii) obtains written approval from the [Comptroller] COMMISSION.
176+ (c) The [Comptroller] COMMISSION may not issue more than an aggregate 20
177+amount of two Class 7 micro–brewery licenses to holders of Class D beer and wine licenses 21
178+in the Town of Kensington. 22
184179
185- (3) Before authorizing a holder of a Class 7 micro–brewery license to brew
186-in two locations using the same Class 7 micro–brewery license, the [Comptroller]
187-COMMISSION shall:
180+ (d) A holder of the license shall enter into a written agreement with the Alcohol 23
181+Beverage Services for the sale and resale of malt beverages brewed under the license. 24
188182
189- (i) make a determination that a second location to brew additional
190-capacity is necessary due to insufficient space at the existing Class 7 license location; and
183+ (e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a 25
184+Class 7 micro–brewery license may: 26
191185
192- (ii) consider any other factor relevant to approval of the application. LAWRENCE J. HOGAN, JR., Governor Ch. 744
186+ (i) brew in two locations using the same Class 7 micro–brewery 27
187+license; and 28
193188
194-– 5 –
189+ (ii) obtain a Class 2 rectifying license for the premises at the two 29
190+locations authorized under item (i) of this paragraph. 30
195191
196- (4) Notwithstanding any other provision of this article, a holder of a Class
197-7 micro–brewery license may not serve or sell malt beverages for on– or off–premises
198-consumption at the second brewing location authorized under this subsection.
192+ (2) The holder of a Class 7 micro–brewery license may brew in two locations 31
193+using the same Class 7 micro–brewery license if the license holder: 32 HOUSE BILL 232 5
199194
200-25–407.
201195
202- (A) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE MAY BE
203-ISSUED A CLASS 4 LIMITED WINERY LICENSE TO SELL AND S ERVE THE FERMENTED
204-AND DISTILLED PRODUC TS THAT THE HOLDER M ANUFACTURES FOR ON – AND
205-OFF–PREMISES CONSUMPTION .
206196
207- (B) THE RESTRICTIONS UNDE R § 2–206(B)(5)(III), (6)(II), AND (9) AND THE
208-NOTICE REQUIREMENT U NDER § 2–206(B)(9) OF THIS ARTICLE DO NOT APPLY TO A
209-LICENSE ISSUED UNDER THIS SECTION.
197+ (i) requests permission by submitting a written application to the 1
198+[Comptroller] COMMISSION; and 2
210199
211-25–1003.
200+ (ii) obtains written approval from the [Comptroller] COMMISSION. 3
212201
213- (a) There is a Class B–BWL (clubhouse/lodge) license.
202+ (3) Before authorizing a holder of a Class 7 micro–brewery license to brew 4
203+in two locations using the same Class 7 micro–brewery license, the [Comptroller] 5
204+COMMISSION shall: 6
214205
215- (b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the
216-Executive Director of the Montgomery County Revenue Authority or the designee of the
217-Executive Director, for use by a multiuse facility that accommodates a golf course, a
218-restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property.
206+ (i) make a determination that a second location to brew additional 7
207+capacity is necessary due to insufficient space at the existing Class 7 license location; and 8
219208
220- (c) The license authorizes the license holder to:
209+ (ii) consider any other factor relevant to approval of the application. 9
221210
222- (1) sell beer and wine for off–premises consumption;
211+ (4) Notwithstanding any other provision of this article, a holder of a Class 10
212+7 micro–brewery license may not serve or sell malt beverages for on– or off–premises 11
213+consumption at the second brewing location authorized under this subsection. 12
223214
224- (2) sell beer, wine, and liquor for on–premises consumption; and
215+25–407. 13
225216
226- (3) offer samples of alcoholic beverages at no charge or for a fee.
217+ (A) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE MAY BE 14
218+ISSUED A CLASS 4 LIMITED WINERY LICENSE TO SELL AND S ERVE THE FERMENTED 15
219+AND DISTILLED PRODUC TS THAT THE HOLDER M ANUFACTURES FOR ON – AND 16
220+OFF–PREMISES CONSUMPTION . 17
227221
228- (d) The restrictions contained in § 25–902(b) of this title do not apply to the
229-issuance of a Class B–BWL (clubhouse/lodge) license.
222+ (B) THE RESTRICTIONS UNDE R § 2–206(B)(5)(III), (6)(II), AND (9) AND THE 18
223+NOTICE REQUIREMENT U NDER § 2–206(B)(9) OF THIS ARTICLE DO NOT APPLY TO A 19
224+LICENSE ISSUED UNDER THIS SECTION. 20
230225
231- (e) THE LICENSE HOLDER MAY ALSO HOLD:
226+25–1003. 21
232227
233- (1) A CLASS 4 LIMITED WINERY LICENSE IN ACCORDANCE WITH §
234-25–407 OF THIS TITLE; AND
228+ (a) There is a Class B–BWL (clubhouse/lodge) license. 22
235229
236- (2) A CLASS 7 MICRO–BREWERY LICENSE IN A CCORDANCE WITH §
237-25–405 OF THIS TITLE.
230+ (b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the 23
231+Executive Director of the Montgomery County Revenue Authority or the designee of the 24
232+Executive Director, for use by a multiuse facility that accommodates a golf course, a 25
233+restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property. 26
238234
239- (F) The annual license fee is $1,000. Ch. 744 2022 LAWS OF MARYLAND
235+ (c) The license authorizes the license holder to: 27
240236
241-– 6 –
237+ (1) sell beer and wine for off–premises consumption; 28
242238
243- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
244-1, 2022.
239+ (2) sell beer, wine, and liquor for on–premises consumption; and 29
245240
246-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
241+ (3) offer samples of alcoholic beverages at no charge or for a fee. 30 6 HOUSE BILL 232
242+
243+
244+
245+ (d) The restrictions contained in § 25–902(b) of this title do not apply to the 1
246+issuance of a Class B–BWL (clubhouse/lodge) license. 2
247+
248+ (e) THE LICENSE HOLDER MAY ALSO HOLD: 3
249+
250+ (1) A CLASS 4 LIMITED WINERY LICENSE IN ACCORDANCE WITH § 4
251+25–407 OF THIS TITLE; AND 5
252+
253+ (2) A CLASS 7 MICRO–BREWERY LICENSE IN A CCORDANCE WITH § 6
254+25–405 OF THIS TITLE. 7
255+
256+ (F) The annual license fee is $1,000. 8
257+
258+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
259+1, 2022. 10
260+
261+
262+
263+Approved:
264+________________________________________________________________________________
265+ Governor.
266+________________________________________________________________________________
267+ Speaker of the House of Delegates.
268+________________________________________________________________________________
269+ President of the Senate.