EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb0277*
HOUSE BILL 277
A2 3lr0563
By: Montgomery County Delegation
Introduced and read first time: January 25, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Montgomery County – Alcoholic Beverages – Holders of Class B–BWL 2
(Clubhouse/Lodge) License and Class 7 Micro–Brewery License 3
MC 16–23 4
FOR the purpose of providing that the restriction on holding or having a financial interest 5
in other retail alcoholic beverages licenses for holders of a Class 7 micro–brewery 6
license does not apply to a holder of a Class B–BWL (clubhouse/lodge) license in 7
Montgomery County who is issued a Class 7 micro–brewery license; and generally 8
relating to alcoholic beverages in Montgomery County. 9
BY repealing and reenacting, without amendments, 10
Article – Alcoholic Beverages 11
Section 2–216(e)(2), 25–102, and 25–1003 12
Annotated Code of Maryland 13
(2016 Volume and 2022 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages 16
Section 25–401 and 25–405 17
Annotated Code of Maryland 18
(2016 Volume and 2022 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Alcoholic Beverages 22
2–216. 23
2 HOUSE BILL 277
(e) (2) A holder of a Class 6 pub–brewery license or a Class 7 micro–brewery 1
license may hold or have a financial interest in one retail license that does not apply to 2
premises to which a Class 6 pub–brewery license or Class 7 micro–brewery license applies. 3
25–102. 4
This title applies only in Montgomery County. 5
25–401. 6
(a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 7
Division I of this article apply in the county without exception or variation: 8
(1) § 2–201 (“Issuance by Comptroller”); 9
(2) § 2–202 (“Class 1 distillery license”); 10
(3) § 2–204 (“Class 2 rectifying license”); 11
(4) § 2–207 (“Class 5 brewery license”); 12
(5) § 2–210 (“Class 8 farm brewery license”); 13
(6) § 2–211 (“Residency requirement”); 14
(7) § 2–212 (“Additional licenses”); 15
(8) § 2–213 (“Additional fees”); 16
(9) § 2–214 (“Sale or delivery restricted”); 17
(10) [§ 2–216 (“Interaction between manufacturing entities and retailers”); 18
(11)] § 2–217 (“Distribution of alcoholic beverages — Prohibited practices”); 19
and 20
[(12)] (11) § 2–218 (“Restrictive agreements between producers and 21
retailers — Prohibited”). 22
(b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 23
this article does not apply in the county. 24
(c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 25
Division I of this article apply in the county: 26
(1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this 27
subtitle; 28 HOUSE BILL 277 3
(2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle; 1
(3) § 2–206 (“Class 4 limited winery license”), subject to § 25–407 of this 2
subtitle; 3
(4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this 4
subtitle; [and] 5
(5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of this 6
subtitle; AND 7
(6) § 2–216 (“INTERACTION BETWEEN M ANUFACTURING ENTITIE S 8
AND RETAILERS ”), SUBJECT TO § 25–405 OF THIS SUBTITLE. 9
25–405. 10
(a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in 11
the county. 12
(b) The license may be issued to the holder of: 13
(1) a Class B beer, wine, and liquor (on–sale) license that is issued for use 14
on the premises of a restaurant located in the county; 15
(2) subject to subsection (c) of this section, a Class D beer and wine license 16
that is issued for the sale of beer and wine, at retail, at the place described in the license, 17
for on– and off–premises consumption; 18
(3) a Class H beer and wine license that is issued for the sale of beer and 19
wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises 20
consumption; 21
(4) a Class BD–BWL license that is issued for the sale of beer and wine for 22
on– and off–premises consumption, and liquor for on–premises consumption, at the place 23
described in the license; 24
(5) a Class B–BWL (clubhouse/lodge) license that is issued for the sale of 25
beer and wine for on– and off–premises consumption, and liquor for on–premises 26
consumption, at the place described in the license; or 27
(6) a Class D beer, wine, and liquor license that is issued for the sale of 28
beer, wine, and liquor for on–premises consumption, at the place described in the license. 29
(c) The Commission may not issue more than an aggregate amount of two Class 30
7 micro–brewery licenses to holders of Class D beer and wine licenses in the Town of 31
Kensington. 32 4 HOUSE BILL 277
(d) A holder of the license shall enter into a written agreement with the Alcohol 1
Beverage Services for the sale and resale of malt beverages brewed under the license. 2
(e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a 3
Class 7 micro–brewery license may: 4
(i) brew in two locations using the same Class 7 micro–brewery 5
license; and 6
(ii) obtain a Class 2 rectifying license for the premises at the two 7
locations authorized under item (i) of this paragraph. 8
(2) The holder of a Class 7 micro–brewery license may brew in two locations 9
using the same Class 7 micro–brewery license if the license holder: 10
(i) requests permission by submitting a written application to the 11
Commission; and 12
(ii) obtains written approval from the Commission. 13
(3) Before authorizing a holder of a Class 7 micro–brewery license to brew 14
in two locations using the same Class 7 micro–brewery license, the Commission shall: 15
(i) make a determination that a second location to brew additional 16
capacity is necessary due to insufficient space at the existing Class 7 license location; and 17
(ii) consider any other factor relevant to approval of the application. 18
(4) Notwithstanding any other provision of this article, a holder of a Class 19
7 micro–brewery license may not serve or sell malt beverages for on– or off–premises 20
consumption at the second brewing location authorized under this subsection. 21
(F) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS 22
ISSUED A CLASS 7 MICRO–BREWERY LICENSE IS NOT SUBJECT TO TH E LICENSURE 23
RESTRICTION ON HOLDERS OF CLASS 7 MICRO–BREWERY LICENSES SET FORTH 24
UNDER § 2–216(E)(2) OF THIS ARTICLE. 25
25–1003. 26
(a) There is a Class B–BWL (clubhouse/lodge) license. 27
(b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the 28
Executive Director of the Montgomery County Revenue Authority or the designee of the 29
Executive Director, for use by a multiuse facility that accommodates a golf course, a 30
restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property. 31
HOUSE BILL 277 5
(c) The license authorizes the license holder to: 1
(1) sell beer and wine for off–premises consumption; 2
(2) sell beer, wine, and liquor for on–premises consumption; and 3
(3) offer samples of alcoholic beverages at no charge or for a fee. 4
(d) The restrictions contained in § 25–902(b) of this title do not apply to the 5
issuance of a Class B–BWL (clubhouse/lodge) license. 6
(e) The license holder may also hold: 7
(1) a Class 4 limited winery license in accordance with § 25–407 of this 8
title; and 9
(2) a Class 7 micro–brewery license in accordance with § 25–405 of this 10
title. 11
(f) The annual license fee is $1,000. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2023. 14