MD
Maryland House Bill HB277

Maryland 2023 Regular Session

Maryland House Bill HB277 Compare Versions

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1- WES MOORE, Governor Ch. 89
21
3-– 1 –
4-Chapter 89
5-(House Bill 277)
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+ *hb0277*
89
9-Montgomery County – Alcoholic Beverages – Holders of Class B–BWL
10-(Clubhouse/Lodge) License and Class 7 Micro–Brewery License
10+HOUSE BILL 277
11+A2 3lr0563
1112
12-MC 16–23
13+By: Montgomery County Delegation
14+Introduced and read first time: January 25, 2023
15+Assigned to: Economic Matters
16+Committee Report: Favorable
17+House action: Adopted
18+Read second time: March 10, 2023
1319
14-FOR the purpose of providing that the restriction on holding or having a financial interest
15-in other retail alcoholic beverages licenses for holders of a Class 7 micro–brewery
16-license does not apply to a holder of a Class B–BWL (clubhouse/lodge) license in
17-Montgomery County who is issued a Class 7 micro–brewery license; and generally
18-relating to alcoholic beverages in Montgomery County.
20+CHAPTER ______
1921
20-BY repealing and reenacting, without amendments,
21- Article – Alcoholic Beverages
22-Section 2–216(e)(2), 25–102, and 25–1003
23- Annotated Code of Maryland
24- (2016 Volume and 2022 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, with amendments,
27- Article – Alcoholic Beverages
28-Section 25–401 and 25–405
29- Annotated Code of Maryland
30- (2016 Volume and 2022 Supplement)
24+Montgomery County – Alcoholic Beverages – Holders of Class B–BWL 2
25+(Clubhouse/Lodge) License and Class 7 Micro–Brewery License 3
3126
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
27+MC 16–23 4
3428
35-Article – Alcoholic Beverages
29+FOR the purpose of providing that the restriction on holding or having a financial interest 5
30+in other retail alcoholic beverages licenses for holders of a Class 7 micro–brewery 6
31+license does not apply to a holder of a Class B–BWL (clubhouse/lodge) license in 7
32+Montgomery County who is issued a Class 7 micro–brewery license; and generally 8
33+relating to alcoholic beverages in Montgomery County. 9
3634
37-2–216.
35+BY repealing and reenacting, without amendments, 10
36+ Article – Alcoholic Beverages 11
37+Section 2–216(e)(2), 25–102, and 25–1003 12
38+ Annotated Code of Maryland 13
39+ (2016 Volume and 2022 Supplement) 14
3840
39- (e) (2) A holder of a Class 6 pub–brewery license or a Class 7 micro–brewery
40-license may hold or have a financial interest in one retail license that does not apply to
41-premises to which a Class 6 pub–brewery license or Class 7 micro–brewery license applies.
41+BY repealing and reenacting, with amendments, 15
42+ Article – Alcoholic Beverages 16
43+Section 25–401 and 25–405 17
44+ Annotated Code of Maryland 18
45+ (2016 Volume and 2022 Supplement) 19
4246
43-25–102.
47+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
48+That the Laws of Maryland read as follows: 21 2 HOUSE BILL 277
4449
45- This title applies only in Montgomery County.
4650
47-25–401.
48- Ch. 89 2023 LAWS OF MARYLAND
4951
50-– 2 –
51- (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
52-Division I of this article apply in the county without exception or variation:
52+Article – Alcoholic Beverages 1
5353
54- (1) § 2–201 (“Issuance by Comptroller”);
54+2–216. 2
5555
56- (2) § 2–202 (“Class 1 distillery license”);
56+ (e) (2) A holder of a Class 6 pub–brewery license or a Class 7 micro–brewery 3
57+license may hold or have a financial interest in one retail license that does not apply to 4
58+premises to which a Class 6 pub–brewery license or Class 7 micro–brewery license applies. 5
5759
58- (3) § 2–204 (“Class 2 rectifying license”);
60+25–102. 6
5961
60- (4) § 2–207 (“Class 5 brewery license”);
62+ This title applies only in Montgomery County. 7
6163
62- (5) § 2–210 (“Class 8 farm brewery license”);
64+25–401. 8
6365
64- (6) § 2–211 (“Residency requirement”);
66+ (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 9
67+Division I of this article apply in the county without exception or variation: 10
6568
66- (7) § 2–212 (“Additional licenses”);
69+ (1) § 2–201 (“Issuance by Comptroller”); 11
6770
68- (8) § 2–213 (“Additional fees”);
71+ (2) § 2–202 (“Class 1 distillery license”); 12
6972
70- (9) § 2–214 (“Sale or delivery restricted”);
73+ (3) § 2–204 (“Class 2 rectifying license”); 13
7174
72- (10) [§ 2–216 (“Interaction between manufacturing entities and retailers”);
75+ (4) § 2–207 (“Class 5 brewery license”); 14
7376
74- (11)] § 2–217 (“Distribution of alcoholic beverages — Prohibited practices”);
75-and
77+ (5) § 2–210 (“Class 8 farm brewery license”); 15
7678
77- [(12)] (11) § 2–218 (“Restrictive agreements between producers and
78-retailers — Prohibited”).
79+ (6) § 2–211 (“Residency requirement”); 16
7980
80- (b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of
81-this article does not apply in the county.
81+ (7) § 2–212 (“Additional licenses”); 17
8282
83- (c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
84-Division I of this article apply in the county:
83+ (8) § 2–213 (“Additional fees”); 18
8584
86- (1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this
87-subtitle;
85+ (9) § 2–214 (“Sale or delivery restricted”); 19
8886
89- (2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle;
87+ (10) [§ 2–216 (“Interaction between manufacturing entities and retailers”); 20
9088
91- (3) § 2–206 (“Class 4 limited winery license”), subject to § 25–407 of this
92-subtitle;
89+ (11)] § 2–217 (“Distribution of alcoholic beverages — Prohibited practices”); 21
90+and 22
9391
94- (4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this
95-subtitle; [and]
96- WES MOORE, Governor Ch. 89
92+ [(12)] (11) § 2–218 (“Restrictive agreements between producers and 23
93+retailers — Prohibited”). 24
9794
98-– 3 –
99- (5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of this
100-subtitle; AND
95+ (b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 25
96+this article does not apply in the county. 26
97+ HOUSE BILL 277 3
10198
102- (6) § 2–216 (“INTERACTION BETWEEN M ANUFACTURING ENTITIE S
103-AND RETAILERS ”), SUBJECT TO § 25–405 OF THIS SUBTITLE .
10499
105-25–405.
100+ (c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 1
101+Division I of this article apply in the county: 2
106102
107- (a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in
108-the county.
103+ (1) § 2–203 (“Class 9 limited distillery license”), subject to § 25–406 of this 3
104+subtitle; 4
109105
110- (b) The license may be issued to the holder of:
106+ (2) § 2–205 (“Class 3 winery license”), subject to § 25–403 of this subtitle; 5
111107
112- (1) a Class B beer, wine, and liquor (on–sale) license that is issued for use
113-on the premises of a restaurant located in the county;
108+ (3) § 2–206 (“Class 4 limited winery license”), subject to § 25–407 of this 6
109+subtitle; 7
114110
115- (2) subject to subsection (c) of this section, a Class D beer and wine license
116-that is issued for the sale of beer and wine, at retail, at the place described in the license,
117-for on– and off–premises consumption;
111+ (4) § 2–208 (“Class 6 pub–brewery license”), subject to § 25–404 of this 8
112+subtitle; [and] 9
118113
119- (3) a Class H beer and wine license that is issued for the sale of beer and
120-wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises
121-consumption;
114+ (5) § 2–209 (“Class 7 micro–brewery license”), subject to § 25–405 of this 10
115+subtitle; AND 11
122116
123- (4) a Class BD–BWL license that is issued for the sale of beer and wine for
124-on– and off–premises consumption, and liquor for on–premises consumption, at the place
125-described in the license;
117+ (6) § 2–216 (“INTERACTION BETWEEN M ANUFACTURING ENTITIE S 12
118+AND RETAILERS”), SUBJECT TO § 25–405 OF THIS SUBTITLE . 13
126119
127- (5) a Class B–BWL (clubhouse/lodge) license that is issued for the sale of
128-beer and wine for on– and off–premises consumption, and liquor for on–premises
129-consumption, at the place described in the license; or
120+25–405. 14
130121
131- (6) a Class D beer, wine, and liquor license that is issued for the sale of
132-beer, wine, and liquor for on–premises consumption, at the place described in the license.
122+ (a) This section applies to a Class 7 micro–brewery (on– and off–sale) license in 15
123+the county. 16
133124
134- (c) The Commission may not issue more than an aggregate amount of two Class
135-7 micro–brewery licenses to holders of Class D beer and wine licenses in the Town of
136-Kensington.
125+ (b) The license may be issued to the holder of: 17
137126
138- (d) A holder of the license shall enter into a written agreement with the Alcohol
139-Beverage Services for the sale and resale of malt beverages brewed under the license.
127+ (1) a Class B beer, wine, and liquor (on–sale) license that is issued for use 18
128+on the premises of a restaurant located in the county; 19
140129
141- (e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a
142-Class 7 micro–brewery license may:
143- Ch. 89 2023 LAWS OF MARYLAND
130+ (2) subject to subsection (c) of this section, a Class D beer and wine license 20
131+that is issued for the sale of beer and wine, at retail, at the place described in the license, 21
132+for on– and off–premises consumption; 22
144133
145-– 4 –
146- (i) brew in two locations using the same Class 7 micro–brewery
147-license; and
134+ (3) a Class H beer and wine license that is issued for the sale of beer and 23
135+wine at a hotel or restaurant, at retail, at the place described in the license, for on–premises 24
136+consumption; 25
148137
149- (ii) obtain a Class 2 rectifying license for the premises at the two
150-locations authorized under item (i) of this paragraph.
138+ (4) a Class BD–BWL license that is issued for the sale of beer and wine for 26
139+on– and off–premises consumption, and liquor for on–premises consumption, at the place 27
140+described in the license; 28
151141
152- (2) The holder of a Class 7 micro–brewery license may brew in two locations
153-using the same Class 7 micro–brewery license if the license holder:
142+ (5) a Class B–BWL (clubhouse/lodge) license that is issued for the sale of 29
143+beer and wine for on– and off–premises consumption, and liquor for on–premises 30
144+consumption, at the place described in the license; or 31
145+ 4 HOUSE BILL 277
154146
155- (i) requests permission by submitting a written application to the
156-Commission; and
157147
158- (ii) obtains written approval from the Commission.
148+ (6) a Class D beer, wine, and liquor license that is issued for the sale of 1
149+beer, wine, and liquor for on–premises consumption, at the place described in the license. 2
159150
160- (3) Before authorizing a holder of a Class 7 micro–brewery license to brew
161-in two locations using the same Class 7 micro–brewery license, the Commission shall:
151+ (c) The Commission may not issue more than an aggregate amount of two Class 3
152+7 micro–brewery licenses to holders of Class D beer and wine licenses in the Town of 4
153+Kensington. 5
162154
163- (i) make a determination that a second location to brew additional
164-capacity is necessary due to insufficient space at the existing Class 7 license location; and
155+ (d) A holder of the license shall enter into a written agreement with the Alcohol 6
156+Beverage Services for the sale and resale of malt beverages brewed under the license. 7
165157
166- (ii) consider any other factor relevant to approval of the application.
158+ (e) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a 8
159+Class 7 micro–brewery license may: 9
167160
168- (4) Notwithstanding any other provision of this article, a holder of a Class
169-7 micro–brewery license may not serve or sell malt beverages for on– or off–premises
170-consumption at the second brewing location authorized under this subsection.
161+ (i) brew in two locations using the same Class 7 micro–brewery 10
162+license; and 11
171163
172- (F) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS
173-ISSUED A CLASS 7 MICRO–BREWERY LICENSE IS NOT SUBJECT TO TH E LICENSURE
174-RESTRICTION ON HOLDERS OF CLASS 7 MICRO–BREWERY LICENSES SET FORTH
175-UNDER § 2–216(E)(2) OF THIS ARTICLE.
164+ (ii) obtain a Class 2 rectifying license for the premises at the two 12
165+locations authorized under item (i) of this paragraph. 13
176166
177-25–1003.
167+ (2) The holder of a Class 7 micro–brewery license may brew in two locations 14
168+using the same Class 7 micro–brewery license if the license holder: 15
178169
179- (a) There is a Class B–BWL (clubhouse/lodge) license.
170+ (i) requests permission by submitting a written application to the 16
171+Commission; and 17
180172
181- (b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the
182-Executive Director of the Montgomery County Revenue Authority or the designee of the
183-Executive Director, for use by a multiuse facility that accommodates a golf course, a
184-restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property.
173+ (ii) obtains written approval from the Commission. 18
185174
186- (c) The license authorizes the license holder to:
175+ (3) Before authorizing a holder of a Class 7 micro–brewery license to brew 19
176+in two locations using the same Class 7 micro–brewery license, the Commission shall: 20
187177
188- (1) sell beer and wine for off–premises consumption;
178+ (i) make a determination that a second location to brew additional 21
179+capacity is necessary due to insufficient space at the existing Class 7 license location; and 22
189180
190- (2) sell beer, wine, and liquor for on–premises consumption; and
191- WES MOORE, Governor Ch. 89
181+ (ii) consider any other factor relevant to approval of the application. 23
192182
193-– 5 –
194- (3) offer samples of alcoholic beverages at no charge or for a fee.
183+ (4) Notwithstanding any other provision of this article, a holder of a Class 24
184+7 micro–brewery license may not serve or sell malt beverages for on– or off–premises 25
185+consumption at the second brewing location authorized under this subsection. 26
195186
196- (d) The restrictions contained in § 25–902(b) of this title do not apply to the
197-issuance of a Class B–BWL (clubhouse/lodge) license.
187+ (F) A HOLDER OF A CLASS B–BWL (CLUBHOUSE /LODGE) LICENSE THAT IS 27
188+ISSUED A CLASS 7 MICRO–BREWERY LICENSE IS NOT SUBJECT TO TH E LICENSURE 28
189+RESTRICTION ON HOLDERS OF CLASS 7 MICRO–BREWERY LICENSES SET FORTH 29
190+UNDER § 2–216(E)(2) OF THIS ARTICLE. 30
198191
199- (e) The license holder may also hold:
192+25–1003. 31
200193
201- (1) a Class 4 limited winery license in accordance with § 25–407 of this
202-title; and
194+ (a) There is a Class B–BWL (clubhouse/lodge) license. 32 HOUSE BILL 277 5
203195
204- (2) a Class 7 micro–brewery license in accordance with § 25–405 of this
205-title.
206196
207- (f) The annual license fee is $1,000.
208197
209- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
210-1, 2023.
198+ (b) The Board may issue a Class B –BWL (clubhouse/lodge) license to the 1
199+Executive Director of the Montgomery County Revenue Authority or the designee of the 2
200+Executive Director, for use by a multiuse facility that accommodates a golf course, a 3
201+restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property. 4
211202
212-Approved by the Governor, April 11, 2023.
203+ (c) The license authorizes the license holder to: 5
204+
205+ (1) sell beer and wine for off–premises consumption; 6
206+
207+ (2) sell beer, wine, and liquor for on–premises consumption; and 7
208+
209+ (3) offer samples of alcoholic beverages at no charge or for a fee. 8
210+
211+ (d) The restrictions contained in § 25–902(b) of this title do not apply to the 9
212+issuance of a Class B–BWL (clubhouse/lodge) license. 10
213+
214+ (e) The license holder may also hold: 11
215+
216+ (1) a Class 4 limited winery license in accordance with § 25–407 of this 12
217+title; and 13
218+
219+ (2) a Class 7 micro–brewery license in accordance with § 25–405 of this 14
220+title. 15
221+
222+ (f) The annual license fee is $1,000. 16
223+
224+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
225+1, 2023. 18
226+
227+
228+
229+Approved:
230+________________________________________________________________________________
231+ Governor.
232+________________________________________________________________________________
233+ Speaker of the House of Delegates.
234+________________________________________________________________________________
235+ President of the Senate.