MD
Maryland Senate Bill SB698

Maryland 2022 Regular Session

Maryland Senate Bill SB698 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 462
21
3-– 1 –
4-Chapter 462
5-(Senate Bill 698)
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+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0698*
810
9-Alcoholic Beverages – Maryland Alcohol Manufacturing and Promotion
11+SENATE BILL 698
12+A1, C8 (2lr2414)
13+ENROLLED BILL
14+— Education, Health, and Environmental Affairs/Economic Matters and Ways and
15+Means —
16+Introduced by Senator Zucker
1017
11-FOR the purpose of repealing the Maryland Wine and Grape Promotion Fund and the
12-Advisory Commission on Maryland Wine and Grape Growing; establishing the
13-Advisory Commission on Maryland Alcohol Manufacturing in the Department of
14-Commerce as the successor to the Advisory Commission on Maryland Wine and
15-Grape Growing; establishing the Maryland Alcohol Manufacturing Promotion Fund
16-for certain purposes; requiring the Secretary of Commerce to award certain grants
17-from the Fund for certain purposes; directing the distribution of certain alcoholic
18-beverage tax revenues to the Fund; providing for the transfer of certain funds as of
19-a certain date; and generally relating to Maryland alcohol manufacturing and
20-promotion.
18+Read and Examined by Proofreaders:
2119
22-BY repealing
23- Article – Agriculture
24-Section 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape
25-Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12.
26-Advisory Commission on Maryland Wine and Grape Growing”
27- Annotated Code of Maryland
28- (2016 Replacement Volume and 2021 Supplement)
20+_______________________________________________
21+Proofreader.
22+_______________________________________________
23+Proofreader.
2924
30-BY adding to
31- Article – Economic Development
32-Section 5–1901 through 5–1912 to be under the new subtitle “Subtitle 19. Maryland
33-Alcohol Manufacturing and Promotion”
34- Annotated Code of Maryland
35- (2018 Replacement Volume and 2021 Supplement)
25+Sealed with the Great Seal and presented to the Governor, for his approval this
3626
37-BY repealing and reenacting, with amendments,
38- Article – Tax – General
39-Section 2–301 and 5–105
40- Annotated Code of Maryland
41- (2016 Replacement Volume and 2021 Supplement)
27+_______ day of _______________ at ________________________ o’clock, ________M.
4228
43- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
44-That Section(s) 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape
45-Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. Advisory
46-Commission on Maryland Wine and Grape Growing” of Article – Agriculture of the
47-Annotated Code of Maryland be repealed.
48- Ch. 462 2022 LAWS OF MARYLAND
29+______________________________________________
30+President.
4931
50-– 2 –
51- SECTION 2. AND BE IT FURTHER ENA CTED, That the Laws of Maryland read
52-as follows:
32+CHAPTER ______
5333
54-Article – Economic Development
34+AN ACT concerning 1
5535
56-SUBTITLE 19. MARYLAND ALCOHOL MANUFACTURING AND PROMOTION.
36+Alcoholic Beverages – Maryland Alcohol Manufacturing and Promotion 2
5737
58-5–1901.
38+FOR the purpose of repealing the Maryland Wine and Grape Promotion Fund and the 3
39+Advisory Commission on Maryland Wine and Grape Growing; establishing the 4
40+Advisory Commission on Maryland Alcohol Manufacturing in the Department of 5
41+Commerce as the successor to the Advisory Commission on Maryland Wine and 6
42+Grape Growing; establishing the Maryland Alcohol Manufacturing Promotion Fund 7
43+for certain purposes; requiring the Secretary of Commerce to award certain grants 8
44+from the Fund for certain purposes; directing the distribution of certain alcoholic 9
45+beverage tax revenues to the Fund; providing for the transfer of certain funds as of 10
46+a certain date; and generally relating to Maryland alcohol manufacturing and 11
47+promotion. 12
5948
60- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
61-INDICATED.
49+BY repealing 13 2 SENATE BILL 698
6250
63- (B) “ADVISORY COMMISSION” MEANS THE ADVISORY COMMISSION ON
64-MARYLAND ALCOHOL MANUFACTURING .
6551
66- (C) “BEER” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC
67-BEVERAGES ARTICLE.
52+ Article – Agriculture 1
53+Section 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape 2
54+Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. 3
55+Advisory Commission on Maryland Wine and Grape Growing” 4
56+ Annotated Code of Maryland 5
57+ (2016 Replacement Volume and 2021 Supplement) 6
6858
69- (D) “BREWERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 5
70-BREWERY LICENSE , CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY
71-LICENSE, OR CLASS 8 FARM BREWERY LICENSE .
59+BY adding to 7
60+ Article – Economic Development 8
61+Section 5–1901 through 5–1912 to be under the new subtitle “Subtitle 19. Maryland 9
62+Alcohol Manufacturing and Promotion” 10
63+ Annotated Code of Maryland 11
64+ (2018 Replacement Volume and 2021 Supplement) 12
7265
73- (E) “DISTILLED SPIRITS” HAS THE MEANING STAT ED IN § 5–101 OF THE
74-TAX – GENERAL ARTICLE.
66+BY repealing and reenacting, with amendments, 13
67+ Article – Tax – General 14
68+Section 2–301 and 5–105 15
69+ Annotated Code of Maryland 16
70+ (2016 Replacement Volume and 2021 Supplement) 17
7571
76- (F) “DISTILLERY” MEANS AN ESTABLISHME NT OPERATED UNDER A
77-CLASS 1 DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY LICENSE .
72+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
73+That Section(s) 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape 19
74+Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. Advisory 20
75+Commission on Maryland Wine and Grape Growing” of Article – Agriculture of the 21
76+Annotated Code of Maryland be repealed. 22
7877
79- (G) “FUND” MEANS THE MARYLAND ALCOHOL MANUFACTURING
80-PROMOTION FUND.
78+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 23
79+as follows: 24
8180
82- (H) “GROWER” MEANS A PERSON WHO :
81+Article – Economic Development 25
8382
84- (1) GROWS GRAPES , HOPS, FRUIT, HONEY, OR GRAIN TO BE INCLU DED
85-IN MANUFACTURED ALCO HOL IN THE STATE; AND
83+SUBTITLE 19. MARYLAND ALCOHOL MANUFACTURING AND PROMOTION. 26
8684
87- (2) PRODUCES AT LEAST $10,000 WORTH OF THESE PRODU CTS EACH
88-YEAR.
85+5–1901. 27
8986
90- (I) “VITICULTURE” MEANS THE CULTIVATIO N AND STUDY OF GRAPE S AND
91-GRAPE VINES.
87+ (A) IN THIS SUBTITLE THE FOLLOWING WOR DS HAVE THE MEANINGS 28
88+INDICATED. 29
9289
93- (J) “WINE” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC
94-BEVERAGES ARTICLE. LAWRENCE J. HOGAN, JR., Governor Ch. 462
90+ (B) “ADVISORY COMMISSION” MEANS THE ADVISORY COMMISSION ON 30
91+MARYLAND ALCOHOL MANUFACTURING . 31
9592
96-– 3 –
93+ (C) “BEER” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC 32
94+BEVERAGES ARTICLE. 33
95+ SENATE BILL 698 3
9796
98- (K) “WINERY” MEANS AN ESTABLISHME NT OPERATED UND ER A CLASS 3
99-WINERY LICENSE OR CLASS 4 LIMITED WINERY LICEN SE.
10097
101-5–1902.
98+ (D) “BREWERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 5 1
99+BREWERY LICENSE , CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY 2
100+LICENSE, OR CLASS 8 FARM BREWERY LICENSE . 3
102101
103- THERE IS AN ADVISORY COMMISSION ON MARYLAND ALCOHOL
104-MANUFACTURING IN THE DEPARTMENT .
102+ (E) “DISTILLED SPIRITS” HAS THE MEANING STAT ED IN § 5–101 OF THE 4
103+TAX – GENERAL ARTICLE. 5
105104
106-5–1903.
105+ (F) “DISTILLERY” MEANS AN ESTABLISHMENT OPERAT ED UNDER A 6
106+CLASS 1 DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE. 7
107107
108- (A) (1) THE ADVISORY COMMISSION CONSISTS O F THE FOLLOWING
109-MEMBERS:
108+ (G) “FUND” MEANS THE MARYLAND ALCOHOL MANUFACTURING 8
109+PROMOTION FUND. 9
110110
111- (1) (I) THE SECRETARY OR THE SECRETARY’S DESIGNEE;
111+ (H) “GROWER” MEANS A PERSON WHO : 10
112112
113- (2) (II) THE SECRETARY OF AGRICULTURE , OR THE SECRETARY’S
114-DESIGNEE;
113+ (1) GROWS GRAPES , HOPS, FRUIT, HONEY, OR GRAIN TO BE INCLUDED 11
114+IN MANUFACTURED ALCO HOL IN THE STATE; AND 12
115115
116- (III) THE SPECIAL SECRETARY OF THE GOVERNOR’S OFFICE OF
117-SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, OR THE SPECIAL
118-SECRETARY’S DESIGNEE;
116+ (2) PRODUCES AT LEAST $10,000 WORTH OF THESE PRODU CTS EACH 13
117+YEAR. 14
119118
120- (IV) ONE MEMBER OF THE ALCOHOL AND TOBACCO
121-COMMISSION, DESIGNATED BY THE CH AIR OF THE ALCOHOL AND TOBACCO
122-COMMISSION;
119+ (I) “VITICULTURE” MEANS THE CULTIVATIO N AND STUDY OF GRAPE S AND 15
120+GRAPE VINES. 16
123121
124- (3) (V) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED
125-BY THE PRESIDENT OF THE SENATE;
122+ (J) “WINE” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC 17
123+BEVERAGES ARTICLE. 18
126124
127- (4) (VI) ONE MEMBER OF THE HOUSE OF DELEGATES, APPOINTED
128-BY THE SPEAKER OF THE HOUSE; AND
125+ (K) “WINERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 3 19
126+WINERY LICENSE OR CLASS 4 LIMITED WINERY LICEN SE. 20
129127
130- (5) (VII) THE FOLLOWING MEMBER S APPOINTED BY THE GOVERNOR:
128+5–1902. 21
131129
132- (I) 1. ONE MEMBER REPRESENT ING THE UNIVERSITY OF
133-MARYLAND COLLEGE OF AGRICULTURE AND NATURAL RESOURCES;
130+ THERE IS AN ADVISORY COMMISSION ON MARYLAND ALCOHOL 22
131+MANUFACTURING IN THE DEPARTMENT . 23
134132
135- (II) 2. TWO MEMBERS REPRESEN TING BREWERIES IN THE
136-STATE;
133+5–1903. 24
137134
138- (III) 3. TWO MEMBERS REPRESEN TING DISTILLERIES IN THE
139-STATE;
140- Ch. 462 2022 LAWS OF MARYLAND
135+ (A) (1) THE ADVISORY COMMISSION CONSISTS O F THE FOLLOWING 25
136+MEMBERS: 26
141137
142-– 4 –
143- (IV) 4. TWO MEMBERS REPRESEN TING WINERIES IN THE
144-STATE; AND
138+ (1) (I) THE SECRETARY OR THE SECRETARY’S DESIGNEE; 27
145139
146- (V) 5. TWO MEMBERS REPRESEN TING GROWERS IN THE
147-STATE.
140+ (2) (II) THE SECRETARY OF AGRICULTURE , OR THE SECRETARY’S 28
141+DESIGNEE; 29 4 SENATE BILL 698
148142
149- (2) TO THE EXTENT PRACTIC ABLE, THE MEMBERS OF THE
150-COMMISSION SHALL REAS ONABLY REFLECT THE G EOGRAPHIC, RACIAL, ETHNIC,
151-CULTURAL, AND GENDER DIVERSITY OF THE STATE.
152143
153- (B) BEFORE TAKING OFFICE , EACH MEMBER OF THE ADVISORY
154-COMMISSION SHALL TAKE THE OATH REQUIRED BY ARTICLE I, § 9 OF THE
155-MARYLAND CONSTITUTION.
156144
157- (C) (1) THE TERM OF A MEMBER IS 3 YEARS.
145+ (III) THE SPECIAL SECRETARY OF THE GOVERNOR’S OFFICE OF 1
146+SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, OR THE SPECIAL 2
147+SECRETARY’S DESIGNEE; 3
158148
159- (2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE
160-TERMS PROVIDED FOR M EMBERS OF THE ADVISORY COMMISSION ON JULY 1, 2022.
149+ (IV) ONE MEMBER OF THE ALCOHOL AND TOBACCO 4
150+COMMISSION, DESIGNATED BY THE CH AIR OF THE ALCOHOL AND TOBACCO 5
151+COMMISSION; 6
161152
162- (3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL
163-A SUCCESSOR IS APPOINT ED AND QUALIFIES .
153+ (3) (V) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED 7
154+BY THE PRESIDENT OF THE SENATE; 8
164155
165- (4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES
166-ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND
167-QUALIFIES.
156+ (4) (VI) ONE MEMBER OF THE HOUSE OF DELEGATES, APPOINTED 9
157+BY THE SPEAKER OF THE HOUSE; AND 10
168158
169- (5) A MEMBER MAY NOT BE AP POINTED FOR MORE THA N TWO
170-CONSECUTIVE FULL TER MS.
159+ (5) (VII) THE FOLLOWING MEMBER S APPOINTED BY THE GOVERNOR: 11
171160
172- (D) THE GOVERNOR MAY REMOVE A MEMBER FOR INCOMPETE NCE OR
173-MISCONDUCT .
161+ (I) 1. ONE MEMBER REPRESENT ING THE UNIVERSITY OF 12
162+MARYLAND COLLEGE OF AGRICULTURE AND NATURAL RESOURCES; 13
174163
175-5–1904.
164+ (II) 2. TWO MEMBERS REPRESEN TING BREWERIES IN TH E 14
165+STATE; 15
176166
177- (A) THE GOVERNOR SHALL DESIGN ATE THE CHAIR OF THE ADVISORY
178-COMMISSION.
167+ (III) 3. TWO MEMBERS REPRESEN TING DISTILLERIES IN THE 16
168+STATE; 17
179169
180- (B) FROM AMONG ITS MEMBER S, THE ADVISORY COMMISSION EACH YEAR
181-SHALL ELECT A VICE C HAIR.
170+ (IV) 4. TWO MEMBERS REPRESEN TING WINERIES IN THE 18
171+STATE; AND 19
182172
183- (C) THE ADVISORY COMMISSION SHALL DETE RMINE THE MANNER OF
184-ELECTION OF THE VICE CHAIR AND ANY OTHER OFFICERS.
173+ (V) 5. TWO MEMBERS REPRESEN TING GROWERS IN THE 20
174+STATE. 21
185175
186-5–1905. LAWRENCE J. HOGAN, JR., Governor Ch. 462
176+ (2) TO THE EXTENT PRACTIC ABLE, THE MEMBERS OF THE 22
177+COMMISSION SHALL REAS ONABLY REFLECT THE G EOGRAPHIC, RACIAL, ETHNIC, 23
178+CULTURAL, AND GENDER DIVERSITY OF THE STATE. 24
187179
188-– 5 –
180+ (B) BEFORE TAKING OFFICE , EACH MEMBER OF THE ADVISORY 25
181+COMMISSION SHALL TAKE THE OATH REQUIRED BY ARTICLE I, § 9 OF THE 26
182+MARYLAND CONSTITUTION. 27
189183
190- (A) THE ADVISORY COMMISSION SHALL DETE RMINE THE TIMES AND
191-PLACES OF ITS REGULA R AND SPECIAL MEETIN GS.
184+ (C) (1) THE TERM OF A MEMBER IS 3 YEARS. 28
192185
193- (B) THE CHAIR OF THE ADVISORY COMMISSION:
186+ (2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE 29
187+TERMS PROVIDED FOR MEMBERS OF THE ADVISORY COMMISSION ON JULY 1, 2022. 30 SENATE BILL 698 5
194188
195- (1) MAY CALL A SPECIAL M EETING AT ANY TIME ; AND
196189
197- (2) SHALL CALL A SPECIAL MEETING WHEN REQUEST ED BY TWO OR
198-MORE MEMBERS OF THE ADVISORY COMMISSION.
199190
200- (C) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE ADVISORY
201-COMMISSION IS A QUORU M.
191+ (3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 1
192+A SUCCESSOR IS APPOI NTED AND QUALIFIES . 2
202193
203-5–1906.
194+ (4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 3
195+ONLY FOR THE REST OF THE TERM AND UNTIL A SUC CESSOR IS APPOINTED AND 4
196+QUALIFIES. 5
204197
205- A MEMBER OF THE ADVISORY COMMISSION:
198+ (5) A MEMBER MAY NOT BE AP POINTED FOR MORE THA N TWO 6
199+CONSECUTIVE FULL TER MS. 7
206200
207- (1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE
208-ADVISORY COMMISSION; BUT
201+ (D) THE GOVERNOR MAY REMOVE A MEMBER FOR INCOMPETE NCE OR 8
202+MISCONDUCT . 9
209203
210- (2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE
211-STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET .
204+5–1904. 10
212205
213-5–1907.
206+ (A) THE GOVERNOR SHALL DESIGN ATE THE CHA IR OF THE ADVISORY 11
207+COMMISSION. 12
214208
215- THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY COMMISSION.
209+ (B) FROM AMONG ITS MEMBER S, THE ADVISORY COMMISSION EACH YEAR 13
210+SHALL ELECT A VICE C HAIR. 14
216211
217-5–1908.
212+ (C) THE ADVISORY COMMISSION SHALL DETE RMINE THE MANNER OF 15
213+ELECTION OF THE VICE CHAIR AND ANY OTHER OFFICERS. 16
218214
219- THE ADVISORY COMMISSION SHALL :
215+5–1905. 17
220216
221- (1) ADVISE AND RECOMMEND TO THE SECRETARY FOR APPROVA L
222-THE ALLOCATION OF MO NEY FROM THE MARYLAND ALCOHOL MANUFACTURING
223-PROMOTION FUND TO ELIGIBLE APPLICANTS FOR PROGR AMS CONSIDERED
224-NECESSARY OR ADVISAB LE TO ACCOMPLISH THE PURPOSES OF THIS SUB TITLE;
217+ (A) THE ADVISORY COMMISSION SHALL DETE RMINE THE TIMES AND 18
218+PLACES OF ITS REGULA R AND SPECIAL MEETIN GS. 19
225219
226- (2) PROVIDE A FORUM TO A DDRESS THE ISSUES TH AT ARE RELEVANT
227-TO THE GROWTH OF THE MARYLAND ALCOHOL MANU FACTURING INDUSTRY ; AND
220+ (B) THE CHAIR OF THE ADVISORY COMMISSION: 20
228221
229- (3) IDENTIFY STRATEGI ES TO FACILITATE GRO WTH OF VITICULTURE
230-AND OTHER PRODUCTS U SED IN MANUFACTURED ALCOHOL SUCH AS HOPS , FRUIT,
231-HONEY, AND GRAIN.
232- Ch. 462 2022 LAWS OF MARYLAND
222+ (1) MAY CALL A SPECIAL M EETING AT ANY TIME ; AND 21
233223
234-– 6 –
235-5–1909.
224+ (2) SHALL CALL A SPECIAL MEETING WHEN REQUEST ED BY TWO OR 22
225+MORE MEMBERS OF THE ADVISORY COMMISSION. 23
236226
237- (A) THERE IS A MARYLAND ALCOHOL MANUFACTURING PROMOTION
238-FUND.
227+ (C) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE ADVISORY 24
228+COMMISSION IS A QUORU M. 25
239229
240- (B) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS THAT P ROMOTE
241-THE ADVANTAGES AND A TTRIBUTES OF STATE BREWERIES , DISTILLERIES, AND
242-WINERIES AND THEIR P RODUCTS MANUFACTURED IN THE STATE.
230+5–1906. 26
243231
244- (C) THE SECRETARY SHALL ADMIN ISTER THE FUND.
232+ A MEMBER OF THE ADVISORY COMMISSION: 27
233+ 6 SENATE BILL 698
245234
246- (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT
247-SUBJECT TO REVERSI ON UNDER § 7–302 OF THE STATE FINANCE AND
248-PROCUREMENT ARTICLE.
249235
250- (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
251-AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
236+ (1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 1
237+ADVISORY COMMISSION; BUT 2
252238
253- (E) THE FUND CONSISTS OF :
239+ (2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 3
240+STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 4
254241
255- (1) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–301(B) OF THE
256-TAX – GENERAL ARTICLE;
242+5–1907. 5
257243
258- (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND
244+ THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY COMMISSION. 6
259245
260- (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
261-THE BENEFIT OF THE FUND.
246+5–1908. 7
262247
263- (F) THE FUND MAY BE USED ONLY FOR:
248+ THE ADVISORY COMMISSION SHALL : 8
264249
265- (1) GRANTS TO ELIGIBLE A PPLICANTS UNDER § 5–1910 OF THIS
266-SUBTITLE; AND
250+ (1) ADVISE AND RECOMMEND TO THE SECRETARY FOR APPROVA L 9
251+THE ALLOCATION OF MO NEY FROM THE MARYLAND ALCOHOL MANUFACTURING 10
252+PROMOTION FUND TO ELIGIBLE APPL ICANTS FOR PROGRAMS CONSIDERED 11
253+NECESSARY OR ADVISAB LE TO ACCOMPLISH THE PURPOSES OF THIS SUB TITLE; 12
267254
268- (2) ADMINISTRATIVE EXPEN SES OF THE FUND.
255+ (2) PROVIDE A FORUM TO ADDRESS THE ISSUE S THAT ARE RELEVANT 13
256+TO THE GROWTH OF THE MARYLAND ALCOHOL MANU FACTURING INDUSTRY ; AND 14
269257
270- (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
271-IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
258+ (3) IDENTIFY STRATEGIES TO FACILITATE GROWTH OF VITICULTURE 15
259+AND OTHER PRODUCTS U SED IN MANUFACTURED ALCOHOL SUCH AS HOPS , FRUIT, 16
260+HONEY, AND GRAIN. 17
272261
273- (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
274-THE GENERAL FUND OF THE STATE.
262+5–1909. 18
275263
276- (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE
277-WITH THE STATE BUDGET .
278- LAWRENCE J. HOGAN, JR., Governor Ch. 462
264+ (A) THERE IS A MARYLAND ALCOHOL MANUFACTURING PROMOTION 19
265+FUND. 20
279266
280-– 7 –
281-5–1910.
267+ (B) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS THAT PROMOTE 21
268+THE ADVANTAGES AND A TTRIBUTES OF STATE BREWERIES , DISTILLERIES, AND 22
269+WINERIES AND THEIR P RODUCTS MANUFACTURED IN THE STATE. 23
282270
283- (A) AN APPLICANT FOR A GR ANT FROM THE FUND SHALL SUBMIT AN
284-APPLICATION TO THE ADVISORY COMMISSION ON THE FOR M THAT THE SECRETARY
285-REQUIRES.
271+ (C) THE SECRETARY SHALL ADMIN ISTER THE FUND. 24
286272
287- (B) TO BE ELIGIBLE TO REC EIVE A GRANT FROM TH E FUND, AN APPLICANT
288-MUST BE:
273+ (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 25
274+SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 26
275+PROCUREMENT ARTICLE. 27
289276
290- (1) A NONPROFIT ORGANIZA TION UNDER § 501(C)(3) OR (6) OF THE
291-INTERNAL REVENUE CODE; OR
277+ (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 28
278+AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 29
279+ SENATE BILL 698 7
292280
293- (2) A STATE OR LOCAL GOVERN MENTAL UNIT.
294281
295- (C) THE SECRETARY SHALL AWARD GRANTS TO ELIGIBLE A PPLICANTS
296-FROM THE FUND BASED ON THE ADV ICE OF THE ADVISORY COMMISSION.
282+ (E) THE FUND CONSISTS OF : 1
297283
298- (D) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, THE
299-SECRETARY MAY AWARD G RANTS TO ELIGIBLE AP PLICANTS TO:
284+ (1) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–301(B) OF THE 2
285+TAX – GENERAL ARTICLE; 3
300286
301- (1) FOSTER THE CREATION AND EXPANSION OF STATE BREWERIES,
302-DISTILLERIES, AND WINERIES;
287+ (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 4
303288
304- (2) ATTRACT NEW VISITORS TO STATE BREWERIES , DISTILLERIES,
305-AND WINERIES;
289+ (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTE D FOR 5
290+THE BENEFIT OF THE FUND. 6
306291
307- (3) ENCOURAGE AND CREATE INCENTIVES FOR SPECI AL EVENTS TO
308-PROMOTE STATE BREWERIES , DISTILLERIES, AND WINERIES;
292+ (F) THE FUND MAY BE USED ONLY FOR: 7
309293
310- (4) EDUCATE THE PUBLIC A BOUT ALCOHOL MANUFAC TURING IN THE
311-STATE, ESPECIALLY THE HISTO RY OF THE INDUSTRY ;
294+ (1) GRANTS TO ELIGIBLE A PPLICANTS UNDER § 5–1910 OF THIS 8
295+SUBTITLE; AND 9
312296
313- (5) CONDUCT RESEARCH ON , DEVELOP INCENTIVES F OR, AND
314-PROMOTE THE GROWTH O F STATE AGRICULTURAL PR ODUCTS USED IN STATE
315-MANUFACTURED BEER , WINE, AND SPIRITS; OR
297+ (2) ADMINISTRATIVE EXPEN SES OF THE FUND. 10
316298
317- (6) SUPPORT THE EXPANSION OF MIN ORITY OWNERSHIP AND
318-PARTICIPATION IN THE OPERATION OF STATE BREWERIES , DISTILLERIES, AND
319-WINERIES.
299+ (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 11
300+IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 12
320301
321- (E) AN ELIGIBLE APPLICANT MAY NOT USE A GRANT PROVIDED UNDER THIS
322-SUBTITLE TO:
323- Ch. 462 2022 LAWS OF MARYLAND
302+ (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 13
303+THE GENERAL FUND OF THE STATE. 14
324304
325-– 8 –
326- (1) SATISFY ANY PART OF A MATCHING FUND REQU IREMENT OF
327-ANOTHER STATE GRANT PROVIDED TO THE ELIGIBLE APPL ICANT; OR
305+ (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 15
306+WITH THE STATE BUDGET . 16
328307
329- (2) PAY FOR ACTIVITIES R ELATED TO LOBBYING , AS DEFINED IN
330-TITLE 5 OF THE GENERAL PROVISIONS ARTICLE.
308+5–1910. 17
331309
332-5–1911.
310+ (A) AN APPLICANT FOR A GR ANT FROM THE FUND SHALL SUBMIT AN 18
311+APPLICATION TO THE ADVISORY COMMISSION ON THE FOR M THAT THE SECRETARY 19
312+REQUIRES. 20
333313
334- THE ADVISORY COMMISSION SHALL ISSU E A REPORT EACH YEAR TO THE
335-GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
336-ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS
337-COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON THE ADVISORY
338-COMMISSION’S FINDINGS AND RECOM MENDATIONS .
314+ (B) TO BE ELIGIBLE TO REC EIVE A GRANT FROM TH E FUND, AN APPLICANT 21
315+MUST BE: 22
339316
340-5–1912.
317+ (1) A NONPROFIT ORGANIZA TION UNDER § 501(C)(3) OR (6) OF THE 23
318+INTERNAL REVENUE CODE; OR 24
341319
342- THE SECRETARY MAY ADO PT REGULATIONS TO CA RRY OUT THIS SUBTITL E.
320+ (2) A STATE OR LOCAL GOVERN MENTAL UNIT. 25
343321
344-Article – Tax – General
322+ (C) THE SECRETARY SHALL AWARD GRANTS TO ELIGIBLE A PPLICANTS 26
323+FROM THE FUND BASED ON THE ADV ICE OF THE ADVISORY COMMISSION. 27
324+ 8 SENATE BILL 698
345325
346-2–301.
347326
348- (a) From the alcoholic beverage tax revenue, the Comptroller shall distribute the
349-amount necessary to administer the alcoholic beverage tax laws to an administrative cost
350-account.
327+ (D) SUBJECT TO THE AVAILABILITY OF MONE Y IN THE FUND, THE 1
328+SECRETARY MAY AWARD G RANTS TO ELIGIBLE AP PLICANTS TO: 2
351329
352- (b) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER SUBSECTION (A)
353-OF THIS SECTION , THE COMPTROLLER SHALL DIS TRIBUTE TO THE MARYLAND
354-ALCOHOL MANUFACTURING PROMOTION FUND UNDER § 5–1909 OF THE
355-ECONOMIC DEVELOPMENT ARTICLE THE ALCOHOLIC BEVERAGE TAX REVENUE
356-COLLECTED UNDER § 5–105 OF THIS ARTICLE ON :
330+ (1) FOSTER THE CREATION AND EXPANSION OF STATE BREWERIES , 3
331+DISTILLERIES, AND WINERIES; 4
357332
358- (1) BEER PRODUCED BY HOL DERS OF A CLASS 5 BREWERY LICENSE ,
359-CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY LICENSE , OR CLASS 8
360-FARM BREWERY LICENSE ;
333+ (2) ATTRACT NEW VISITORS TO STATE BREWERIES , DISTILLERIES, 5
334+AND WINERIES; 6
361335
362- (2) WINE PRODUCED BY HOL DERS OF A CLASS 3 WINERY LICENSE OR
363-CLASS 4 LIMITED WINERY LICEN SE; AND
336+ (3) ENCOURAGE AND CREATE INCENTIVES FOR SPECI AL EVENTS TO 7
337+PROMOTE STATE BREWERIES , DISTILLERIES, AND WINERIES; 8
364338
365- (3) DISTILLED SPIRITS PR ODUCED BY HOLDERS OF A CLASS 1
366-DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE.
367- LAWRENCE J. HOGAN, JR., Governor Ch. 462
339+ (4) EDUCATE THE PUBLIC A BOUT ALCOHOL MANUFAC TURING IN THE 9
340+STATE, ESPECIALLY THE HISTO RY OF THE INDUSTRY ; 10
368341
369-– 9 –
370- (C) After making the [distribution] DISTRIBUTIONS required under [subsection
371-(a)] SUBSECTIONS (A) AND (B) of this section, the Comptroller shall distribute the
372-remaining alcoholic beverage tax revenue to the General Fund of the State.
342+ (5) CONDUCT RESEARCH ON , DEVELOP INCENTIVES F OR, AND 11
343+PROMOTE THE GROWTH O F STATE AGRICULTURAL PR ODUCTS USED IN STATE 12
344+MANUFACTURED BEER , WINE, AND SPIRITS; OR 13
373345
374-5–105.
346+ (6) SUPPORT THE EXPANSIO N OF MINORITY OWNERS HIP AND 14
347+PARTICIPATION IN THE OPERATION OF STATE BREWERIES , DISTILLERIES, AND 15
348+WINERIES. 16
375349
376- (a) Except as provided in subsection (d) of this section, the alcoholic beverage tax
377-rate for distilled spirits is:
350+ (E) AN ELIGIBLE APPLICANT MAY NOT USE A GRANT PROVIDED UNDER THIS 17
351+SUBTITLE TO: 18
378352
379- (1) $1.50 for each gallon or 39.63 cents for each liter; and
353+ (1) SATISFY ANY PART OF A MATCHING FUND REQU IREMENT OF 19
354+ANOTHER STATE GRANT PROVIDED TO THE ELIGIBLE APPL ICANT; OR 20
380355
381- (2) if distilled spirits contain a percentage of alcohol greater than 100 proof,
382-an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 0.3963 cents
383-for each liter.
356+ (2) PAY FOR ACTIVITIES R ELATED TO LOBBYING , AS DEFINED IN 21
357+TITLE 5 OF THE GENERAL PROVISIONS ARTICLE. 22
384358
385- (b) Except as provided in subsection (d) of this section, the alcoholic beverage tax
386-rate for wine is 40 cents for each gallon or 10.57 cents for each liter.
359+5–1911. 23
387360
388- (c) Except as provided in subsection (d) of this section, the alcoholic beverage tax
389-rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter.
361+ THE ADVISORY COMMISSION SHALL ISSU E A REPORT EACH YEAR TO THE 24
362+GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 25
363+ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS 26
364+COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON THE ADVISORY 27
365+COMMISSION’S FINDINGS AND RECOM MENDATIONS . 28
390366
391- (d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that
392-the discriminating jurisdiction charges a Maryland licensee or permit holder.
367+5–1912. 29
393368
394- [(e) The revenue generated from the tax imposed under subsection (b) of this
395-section on wine produced at wineries licensed under the Alcoholic Beverages Article shall
396-be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the
397-Agriculture Article.]
369+ THE SECRETARY MAY ADOPT R EGULATIONS TO CARRY OUT THIS SUBTITLE . 30
370+ SENATE BILL 698 9
398371
399- SECTION 3. AND BE IT FURTHER ENACTED, That all funds in the Maryland
400-Wine and Grape Promotion Fund at the end of June 30, 2022, shall be transferred to the
401-Maryland Alcohol Manufacturing Promotion Fund established under Section 2 of this Act.
402372
403- SECTION 4. AND BE IT FURTHER ENACTED, That:
373+Article – Tax – General 1
404374
405- (a) The Advisory Commission on Maryland Alcohol Manufacturing established
406-under Section 2 of this Act is the successor of the Advisory Commission on Maryland Wine
407-and Grape Growing.
375+2–301. 2
408376
409- (b) In every law, executive order, rule, regulation, policy, or document created by
410-an official, an employee, or a unit of this State, the names and titles of those agencies and
411-officials mean the names and titles of the successor agency or official.
377+ (a) From the alcoholic beverage tax revenue, the Comptroller shall distribute the 3
378+amount necessary to administer the alcoholic beverage tax laws to an administrative cost 4
379+account. 5
412380
413- SECTION 5. AND BE IT FURTHER ENACTED, That any transaction or
414-employment status affected by or flowing from any change of nomenclature or any statute
415-amended by this Act and validly entered into or existing before the effective date of this Act Ch. 462 2022 LAWS OF MARYLAND
381+ (b) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER SUBSECTION (A) 6
382+OF THIS SECTION , THE COMPTROLLER SHALL DI STRIBUTE TO THE MARYLAND 7
383+ALCOHOL MANUFACTURING PROMOTION FUND UNDER § 5–1909 OF THE 8
384+ECONOMIC DEVELOPMENT ARTICLE THE ALCOHOLIC BEVERAGE TAX REVENUE 9
385+COLLECTED UNDER § 5–105 OF THIS ARTICLE ON : 10
416386
417-– 10 –
418-and every right, duty, or interest flowing from a statute amended by this Act remains valid
419-after the effective date of this Act and may be terminated, completed, consummated, or
420-enforced as required or allowed by any statute amended by this Act as though the
421-amendment had not occurred. If a change in nomenclature involves a change in name or
422-designation of any State unit, the successor unit shall be considered in all respects as
423-having the powers and obligations granted the former unit.
387+ (1) BEER PRODUCED BY HOL DERS OF A CLASS 5 BREWERY LICENSE , 11
388+CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY LICENSE , OR CLASS 8 12
389+FARM BREWERY LICENSE ; 13
424390
425- SECTION 6. AND BE IT FURTHER ENACTED, That:
391+ (2) WINE PRODUCED BY HOL DERS OF A CLASS 3 WINERY LICENSE OR 14
392+CLASS 4 LIMITED WINERY LICEN SE; AND 15
426393
427- (1) the continuity of every board, commission, office, department, agency,
428-or other unit is retained; and
394+ (3) DISTILLED SPIRITS PR ODUCED BY HOLDERS OF A CLASS 1 16
395+DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE. 17
429396
430- (2) the personnel, records, files, furniture, fixtures, and other properties
431-and all appropriations, credits, assets, liabilities, and obligations of each retained unit are
432-continued as the personnel, records, files, furniture, fixtures, properties, appropriations,
433-credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act.
397+ (C) After making the [distribution] DISTRIBUTIONS required under [subsection 18
398+(a)] SUBSECTIONS (A) AND (B) of this section, the Comptroller shall distribute the 19
399+remaining alcoholic beverage tax revenue to the General Fund of the State. 20
434400
435- SECTION 7. AND BE IT FURTHER ENA CTED, That the initial terms of the
436-members appointed to the Advisory Commission on Maryland Alcohol Manufacturing
437-under § 5–1903(a)(5) § 5–1903(a)(1)(vii) of the Economic Development Article, as enacted
438-by Section 2 of this Act, shall terminate as follows:
401+5–105. 21
439402
440- (1) three members on June 30, 2024;
403+ (a) Except as provided in subsection (d) of this section, the alcoholic beverage tax 22
404+rate for distilled spirits is: 23
441405
442- (2) three members on June 30, 2025; and
406+ (1) $1.50 for each gallon or 39.63 cents for each liter; and 24
443407
444- (3) three members on June 30, 2026.
408+ (2) if distilled spirits contain a percentage of alcohol greater than 100 proof, 25
409+an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 0.3963 cents 26
410+for each liter. 27
445411
446- SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July
447-1, 2022.
412+ (b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 28
413+rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 29
448414
449-Approved by the Governor, May 16, 2022.
415+ (c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 30
416+rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 31
417+ 10 SENATE BILL 698
418+
419+
420+ (d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 1
421+the discriminating jurisdiction charges a Maryland licensee or permit holder. 2
422+
423+ [(e) The revenue generated from the tax imposed under subsection (b) of this 3
424+section on wine produced at wineries licensed under the Alcoholic Beverages Article shall 4
425+be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the 5
426+Agriculture Article.] 6
427+
428+ SECTION 3. AND BE IT FURTHER ENACTED, That all funds in the Maryland 7
429+Wine and Grape Promotion Fund at the end of June 30, 2022, shall be transferred to the 8
430+Maryland Alcohol Manufacturing Promotion Fund established under Section 2 of this Act. 9
431+
432+ SECTION 4. AND BE IT FURTHER ENACTED, That: 10
433+
434+ (a) The Advisory Commission on Maryland Alcohol Manufacturing established 11
435+under Section 2 of this Act is the successor of the Advisory Commission on Maryland Wine 12
436+and Grape Growing. 13
437+
438+ (b) In every law, executive order, rule, regulation, policy, or document created by 14
439+an official, an employee, or a unit of this State, the names and titles of those agencies and 15
440+officials mean the names and titles of the successor agency or official. 16
441+
442+ SECTION 5. AND BE IT FURTHER ENACTED, That any transaction or 17
443+employment status affected by or flowing from any change of nomenclature or any statute 18
444+amended by this Act and validly entered into or existing before the effective date of this Act 19
445+and every right, duty, or interest flowing from a statute amended by this Act remains valid 20
446+after the effective date of this Act and may be terminated, completed, consummated, or 21
447+enforced as required or allowed by any statute amended by this Act as though the 22
448+amendment had not occurred. If a change in nomenclature involves a change in name or 23
449+designation of any State unit, the successor unit shall be considered in all respects as 24
450+having the powers and obligations granted the former unit. 25
451+
452+ SECTION 6. AND BE IT FURTHER ENACTED, That: 26
453+
454+ (1) the continuity of every board, commission, office, department, agency, 27
455+or other unit is retained; and 28
456+
457+ (2) the personnel, records, files, furniture, fixtures, and other properties 29
458+and all appropriations, credits, assets, liabilities, and obligations of each retained unit are 30
459+continued as the personnel, records, files, furniture, fixtures, properties, appropriations, 31
460+credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act. 32
461+
462+ SECTION 7. AND BE IT FURTHER ENACTED, That the initial terms of the 33
463+members appointed to the Advisory Commission on Maryland Alcohol Manufacturin g 34
464+under § 5–1903(a)(5) § 5–1903(a)(1)(vii) of the Economic Development Article, as enacted 35
465+by Section 2 of this Act, shall terminate as follows: 36
466+ SENATE BILL 698 11
467+
468+
469+ (1) three members on June 30, 2024; 1
470+
471+ (2) three members on June 30, 2025; and 2
472+
473+ (3) three members on June 30, 2026. 3
474+
475+ SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
476+1, 2022. 5
477+
478+
479+
480+
481+
482+Approved:
483+________________________________________________________________________________
484+ Governor.
485+________________________________________________________________________________
486+ President of the Senate.
487+________________________________________________________________________________
488+ Speaker of the House of Delegates.