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