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. *hb0784* HOUSE BILL 784 A2 3lr1040 By: Prince George’s County Delegation Introduced and read first time: February 8, 2023 Assigned to: Economic Matters Committee Report: Favorable with amendments House action: Adopted Read second time: March 10, 2023 CHAPTER ______ AN ACT concerning 1 Prince George’s County – Alcoholic Beverages – Class B Beer, Wine, and Liquor 2 Licenses, Entertainment Permits, Inspections, and Penalties, and Workgroup 3 PG 302–23 4 FOR the purpose of authorizing the holder of a Class B beer, wine, and liquor license in 5 Prince George’s County to serve beer, wine, and liquor by the glass or by the bottle 6 for on–premises consumption; authorizing the holder of a certain entertainment 7 permit to contract with one or more promoters to publicize, sell tickets for, organize, 8 operate, produce, or stage an event, which may include patron dancing and 9 entertainment; applying certain provisions relating to a certain entertainment 10 permit to contracted promoters; authorizing certain inspections of certain licensed 11 premises by or on behalf of the Board of License Commissioners for Prince George’s 12 County; limiting the number of certain inspections; requiring a certain inspector to 13 provide a report of an inspection to the license holder and the Board within a certain 14 time period; requiring the Board each year to publish a list containing the number 15 of inspections conducted of each licensed premises in the previous calendar year; 16 requiring the Board to establish a certain fine structure and to publish and maintain 17 a list of penalties certain penalties and fines information for certain violations of 18 alcoholic beverages laws; establishing the Workgroup to Study Best Practices for 19 Safe Event Promotion in Prince George’s County; and generally relating to alcoholic 20 beverages in Prince George’s County and the Workgroup to Study Best Practices for 21 Safe Event Promotion in Prince George’s County. 22 BY repealing and reenacting, without amendments, 23 2 HOUSE BILL 784 Article – Alcoholic Beverages 1 Section 26–102 and 26–902(a) 2 Annotated Code of Maryland 3 (2016 Volume and 2022 Supplement) 4 BY repealing and reenacting, with amendments, 5 Article – Alcoholic Beverages 6 Section 26–902(c) and 26–1103 7 Annotated Code of Maryland 8 (2016 Volume and 2022 Supplement) 9 BY adding to 10 Article – Alcoholic Beverages 11 Section 26–2606 and 26–2803 12 Annotated Code of Maryland 13 (2016 Volume and 2022 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Alcoholic Beverages 17 26–102. 18 This title applies only in Prince George’s County. 19 26–902. 20 (a) There is a Class B beer, wine, and liquor license. 21 (c) (1) The license authorizes the license holder, at a hotel or restaurant at 22 retail at the place described in the license, to sell beer, wine, and liquor: 23 (i) BY THE GLASS OR BY T HE BOTTLE for on–premises 24 consumption; and 25 (ii) subject to paragraph (2) of this subsection, for off–premises 26 consumption only: 27 1. from the main bar; and 28 2. in the main portion of the dining room facilities. 29 (2) The off–sale privilege set out in paragraph (1)(ii) of this subsection is 30 limited to those license holders who had the privilege on July 1, 1970. 31 26–1103. 32 HOUSE BILL 784 3 (a) This section does not apply to a license holder that seeks to provide 1 entertainment if: 2 (1) the license of the license holder is issued under § 26–1003, § 26–1006, § 3 26–1008, § 26–1009, § 26–1010, § 26–1011, § 26–1014, § 26–1015, § 26–1016, § 26–1018.1, 4 or § 26–1616(h) of this title; or 5 (2) the license is a veterans or fraternal Class C license and the license 6 holder provides entertainment that: 7 (i) is under the direct supervision of the license holder; 8 (ii) is for adults, children, and families of the organization or the 9 public; and 10 (iii) when offered, ends not later than midnight. 11 (b) There is an entertainment permit. 12 (c) The Board may issue the permit to a holder of a Class B (on–sale) license in 13 accordance with this section. 14 (d) (1) (i) Subject to subparagraph (ii) of this paragraph, the permit 15 authorizes the permit holder to: 16 1. impose a cover charge, offer facilities for patron dancing, 17 and provide entertainment; OR 18 2. CONTRACT WITH ONE OR MORE PROMOTERS TO 19 PUBLICIZE, SELL TICKETS FOR , ORGANIZE, OPERATE, PRODUCE, OR STAGE AN 20 EVENT, WHICH MAY INCLUDE PA TRON DANCING AND ENT ERTAINMENT . 21 (ii) The permit holder shall comply, AND ENSURE THAT ANY 22 CONTRACTED PROMOTER COMPLIES, with all requirements under county law, including 23 zoning and use and occupancy laws. 24 (2) The Board shall determine the number of days in a week that a permit 25 holder may exercise the privileges of the permit. 26 (3) The permit is in effect from 9 p.m. to 2 a.m. the following day. 27 (e) Before being issued the permit, an applicant shall: 28 (1) submit evidence to the satisfaction of the Board that: 29 4 HOUSE BILL 784 (i) the applicant holds a Class B (on–sale) license; 1 (ii) there are no unpaid taxes due from the applicant to the State, 2 the county, or a municipal corporation; and 3 (iii) the applicant AND ANY CONTRACTED P ROMOTER meets all 4 other requirements for the permit; and 5 (2) (i) IN CONSULTATION WITH ANY CONTRACTED PROMO TER, 6 develop a security plan to prevent the premises for which the permit is sought from posing 7 a threat to the peace and safety of the surrounding area; and 8 (ii) submit the plan for review to the Board and the Chief of the 9 County Police Department. 10 (f) (1) The Chief of the County Police Department may submit comments to 11 the Board on the adequacy of the security plan within 30 days after receipt of the security 12 plan. 13 (2) The Board shall consider the comments, if any, of the Chief of the 14 County Police Department and subsequently issue the permit, refuse to issue the permit, 15 or condition the issuance of the permit on changes to the security plan. 16 (3) If the Board issues the permit with a security plan that the Chief of the 17 County Police Department does not support, the Board shall specify in writing to the Chief 18 of the County Police Department the reasons why the Board has determined that the 19 security plan is adequate. 20 (g) (1) Before issuing the permit, the Board shall hold a public hearing in 21 accordance with the requirements for a public hearing on an application for a license under 22 § 26–1511 of this title. 23 (2) At the public hearing, the Board shall give the applicant, supporters of 24 the applicant, and opponents of the applicant an opportunity to be heard. 25 (3) In making its determination whether to approve the application and 26 issue the permit, the Board shall consider whether: 27 (i) approval and issuance of the permit is necessary for the 28 accommodation of the public; 29 (ii) the applicant is a fit person to receive the permit; 30 (iii) the applicant has made a material false statement in the 31 application; 32 HOUSE BILL 784 5 (iv) the applicant has committed any fraudulent act in connection 1 with the application; 2 (v) the operation of the business, if the permit is issued, will unduly 3 disturb the peace of the residents of the neighborhood where the place of business is located 4 or to be located; and 5 (vi) there are any other reasons that justify the disapproval of the 6 application or the refusal to issue the permit. 7 (4) The Board shall hold a similar public hearing on receipt of a petition to: 8 (i) revoke the permit; or 9 (ii) protest the renewal of the permit. 10 (h) The permit holder AND ANY CONTRACTED P ROMOTER: 11 (1) shall implement and follow the approved security plan described under 12 subsection (e)(2) of this section at all times when the permit holder exercises the privileges 13 of the permit; 14 (2) when the privileges authorized by the permit are being exercised, may 15 not allow an individual who is under the age of 21 years on the premises for which the 16 permit is issued unless the individual is employed by or is an immediate family member of 17 the permit holder; and 18 (3) may employ sworn security personnel as part of the security plan 19 described under subsection (e)(2) of this section if the sworn security personnel have full 20 police powers in the jurisdiction where the premises of the permit holder is located. 21 (i) The Board at any time may prohibit, condition, or restrict the type of 22 entertainment offered by a permit holder, including lewd, exotic, loud, or raucous 23 entertainment, if after a hearing the Board determines that the entertainment: 24 (1) adversely impacts or unduly disturbs the community; and 25 (2) is not conducive to the peace, health, welfare, or safety of the residents 26 of the county. 27 (j) (1) Subject to paragraph (2) of this subsection, the Board may immediately 28 suspend the permit if the Board reasonably believes that the permit holder OR A 29 CONTRACTED PROMOTER : 30 (i) violated this section; or 31 6 HOUSE BILL 784 (ii) is not in compliance with a county zoning property standard or 1 use and occupancy requirement. 2 (2) If the Board immediately suspends a permit, the Board shall: 3 (i) give the permit holder notice of the suspension and a hearing on 4 the suspension at which the permit holder may be heard and present evidence; and 5 (ii) hold the hearing within 30 days after the suspension is imposed. 6 (k) (1) At the hearing, the Board shall determine: 7 (i) whether the permit holder violated this section or other law; and 8 (ii) if a violation occurred, what penalty to impose among those listed 9 in paragraphs (2) and (3) of this subsection. 10 (2) Subject to paragraph (3) of this subsection, if the Board finds that a 11 person has violated this section or any other law, the Board: 12 (i) may revoke or continue the suspension of the permit; and 13 (ii) shall impose on the person a penalty of: 14 1. for a first offense, at least $1,000 but not more than 15 $12,500; and 16 2. for each subsequent offense, at least $5,000. 17 (3) The Board: 18 (i) shall revoke the permit of a person who the Board determines 19 violated this section or any other law twice in 24 months; and 20 (ii) may not consider an application from the person for a new permit 21 or an application for a new permit for the premises that was the subject of the revocation 22 until at least 12 months after the order of revocation is issued. 23 (4) If the Board determines that the permit holder did not violate this 24 section, the Board shall immediately reinstate the permit. 25 (l) (1) The circuit court may issue a temporary restraining order to 26 immediately close to the public the entire operation of the premises if the county establishes 27 that: 28 (i) the security plan described under subsection (e)(2) of this section 29 has not been implemented; and 30 HOUSE BILL 784 7 (ii) the public health, safety, or welfare requires emergency action. 1 (2) On issuance of a temporary restraining order under paragraph (1) of 2 this subsection, the county shall give the permit holder written notice of and reasons for 3 the closure. 4 (3) The permit holder promptly shall be given an opportunity for a hearing 5 in circuit court on the granting of the temporary restraining order in accordance with Title 6 15, Chapter 500 of the Maryland Rules. 7 (m) The Board shall adopt regulations to carry out this section. 8 (n) The annual fee for the permit is $1,500, which is in addition to the annual fee 9 for the Class B license. 10 26–2606. 11 (A) (1) THIS SECTION APPLIES ONLY TO INSPECTIONS PERFORMED BY OR 12 ON BEHALF OF THE BOARD. 13 (2) UNLESS THE INSPECTION IS PERFORMED ON BEHA LF OF THE 14 BOARD AND DOES NOT RE LATE TO HEALTH AND S AFETY, THIS SECTION DOES NO T 15 APPLY TO INSPECTIONS CONDUCTED BY ONE OR MORE OF THE FOLLOWIN G 16 PERSONS: 17 (I) A POLICE DEPARTMENT ; 18 (II) A FIRE DEPARTMENT OR FIRE INSPECTOR ; OR 19 (III) A HEALTH DEPARTMENT . 20 (B) AN INSPECTION OF A LI CENSED PREMISES MAY BE CONDUCTED WITH 21 OR WITHOUT PRIOR NOT ICE IN ORDER TO: 22 (1) PROVIDE ASSISTANCE T O THE BOARD IN ANY MATTER 23 PERTAINING TO ALCOHO LIC BEVERAGES ; 24 (2) CONDUCT BACKGROUND I NVESTIGATIONS AND CR IMINAL 25 HISTORY RECORDS CHEC KS ON ALL LICENSE AP PLICANTS; 26 (3) MAKE ROUTINE INSPECT IONS OF LICENSED EST ABLISHMENTS IN 27 THE COUNTY TO ENSURE THAT THEY ARE IN COM PLIANCE WITH ALL APP ROPRIATE 28 STATE LAWS, LOCAL LAWS, RESTRICTIONS, AND BOARD RULES AND REGUL ATIONS; 29 8 HOUSE BILL 784 (4) COORDINATE INFORMATI ON WITH OTHER APPROP RIATE 1 REGULATORY AGENCIES ; 2 (5) TAKE APPROPRIATE ACT ION ON ANY WRITTEN R EPORT OF 3 VIOLATIONS FORWARDED BY A UNIFORMED OFFIC ER OF A MUNICIPAL OR COUNTY 4 POLICE DEPART MENT, THE MARYLAND–NATIONAL CAPITAL PARK POLICE, OR THE 5 STATE POLICE; 6 (6) INVESTIGATE COMPLAIN TS MADE AGAINST A LI CENSED 7 ESTABLISHMENT ; OR 8 (7) INITIATE COVERT INSP ECTIONS AND INVESTIG ATIONS OF 9 LICENSED ESTABLISHME NTS THAT MAY BE NECE SSARY TO ENSURE C OMPLIANCE OR 10 TO PROVE OR DISPROVE ALLEGED VIOLATIONS . 11 (C) EXCEPT FOR AN INSPECT ION CONDUCTED IN RES PONSE TO A 12 COMPLAINT, THE BOARD MAY NOT CONDUCT AN INSPECTION OF A L ICENSED 13 PREMISES MORE THAN T WO TIMES IN A CALEND AR MONTH WITHOUT THE PRIOR 14 CONSENT OF T HE LICENSE HOLDER . 15 (D) EXCEPT FOR INSPECTION S CONDUCTED IN ACCOR DANCE WITH 16 SUBSECTION (B)(7) OF THIS SECTION , WITHIN 2 5 BUSINESS DAYS AFTER AN 17 INSPECTION UNDER THI S SECTION, THE INSPECTOR SHALL PROVIDE TO THE 18 LICENSE HOLDER AND T HE BOARD A REPORT OF THE INSPECTION. 19 (E) (D) ON OR BEFORE DECEMBER 31 EACH YEAR, THE BOARD SHALL 20 PUBLISH ON THE BOARD’S WEBSITE A LIST OF THE TOTAL NUMBER OF INSPECTIONS 21 CONDUCTED OF EACH LI CENSED PREMISES BY T HE BOARD IN THE PRIOR CA LENDAR 22 YEAR. 23 26–2803. 24 (A) THE BOARD SHALL ESTABLISH A STANDARD FINE STRUCTURE FOR 25 VIOLATIONS OF THIS T ITLE THAT GIVES THE BOARD FLEXIBILITY TO CONSIDER 26 AGGRAVATING OR MITIG ATING FACTORS WHEN D ETERMINING THE AMOUN T OF A 27 FINE IMPOSED UNDER T HIS TITLE. 28 (B) THE BOARD SHALL PUBLISH MONTHLY AND MAINTAIN ON ITS WEBS ITE: 29 (1) A LIST OF PENALTIES FOR VIO LATIONS OF THIS TITL E; AND 30 (2) THE STANDARD FINE ST RUCTURE ESTABLISHED UNDER 31 SUBSECTION (A) OF THIS SECTION , INCLUDING A LIST OF AGGRAVATING AND 32 HOUSE BILL 784 9 MITIGATING FACTORS T HAT THE BOARD MAY CONSIDER WHEN DETERMINING THE 1 AMOUNT OF A FINE IMP OSED UNDER THIS TITL E. 2 SECTION 2. AND BE IT FURTHER ENACTED, That: 3 (a) There is a Workgroup to Study Best Practices for Safe Event Promotion in 4 Prince George’s County. 5 (b) The Workgroup consists of the following members: 6 (1) the Chair of the Prince George’s County Senate Delegation, or the 7 Chair’s designee; 8 (2) the Chair of the Prince George’s County House Delegation, or the 9 Chair’s designee; 10 (3) the Chair of the Prince George’s County Council, or the Chair’s 11 designee; 12 (4) the State’s Attorney for Prince George’s County, or the State’s 13 Attorney’s designee; 14 (5) the Chair of the Board of License Commissioners for Prince George’s 15 County, or the Chair’s designee; 16 (6) the following members, appointed by the County Executive of Prince 17 George’s County: 18 (i) one representative of the Prince George’s County Police 19 Department; 20 (ii) one representative of the Prince George’s County Fire 21 Department; and 22 (iii) one representative of the Prince George’s County Permitting, 23 Inspections and Enforcement Department; and 24 (7) the following members, appointed by the Chair of the Prince George’s 25 County House Delegation: 26 (i) one individual who is knowledgeable of the event promotion 27 industry in Prince George’s County; 28 (ii) one individual who is a current holder of an entertainment 29 permit under § 26–1103 of the Alcoholic Beverages Article; and 30 10 HOUSE BILL 784 (iii) one individual who is a former holder of an entertainment permit 1 under § 26–1103 of the Alcoholic Beverages Article. 2 (c) The Chair of the Prince George’s County House Delegation shall designate the 3 chair of the Workgroup. 4 (d) The Prince George’s County House Delegation shall provide staff for the 5 Workgroup. 6 (e) A member of the Workgroup or any subgroup established under subsection (g) 7 of this section: 8 (1) may not receive compensation as a member of the Workgroup or 9 subgroup; but 10 (2) is entitled to reimbursement for expenses under the Standard State 11 Travel Regulations, as provided in the State budget. 12 (f) The Workgroup shall: 13 (1) identify any current barriers to safe event promotion in Prince George’s 14 County; 15 (2) identify available options for safe event promotion activities and 16 promotion restrictions; 17 (3) review current and previous practices of event promotion; and 18 (4) make recommendations on best practices for safe event promotion and 19 the feasibility of permitting event promoters in Prince George’s County. 20 (g) (1) The Workgroup may establish a subgroup within the Workgroup to 21 assist the Workgroup in carrying out its duties, including by conducting research and 22 producing reports. 23 (2) A subgroup established under paragraph (1) of this subsection may 24 include an individual who is not a member of the Workgroup, including a representative of 25 an insurance carrier or any other relevant expert. 26 (h) On or before December 1, 2024, the Workgroup shall report its findings and 27 recommendations to the Chair of the Prince George’s County Council and the County 28 Executive of Prince George’s County and, in accordance with § 2–1257 of the State 29 Government Article, the Chair of the Prince George’s County Senate Delegation and the 30 Chair of the Prince George’s County House Delegation. 31 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 32 July 1, 2023. Section 2 of this Act shall remain effective for a period of 2 years and, at the 33 HOUSE BILL 784 11 end of June 30, 2025, Section 2 of this Act, with no further action required by the General 1 Assembly, shall be abrogated and of no further force and effect. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.