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. Italics indicate opposite chamber/conference committee amendments. *hb0784* HOUSE BILL 784 A2 (3lr1040) ENROLLED BILL — Economic Matters/Finance — Introduced by Prince George’s County Delegation Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at _________________ _______ o’clock, ________M. ______________________________________________ Speaker. CHAPTER ______ AN ACT concerning 1 Prince George’s County – Alcoholic Beverages – Class B and Class C Beer, Wine, 2 and Liquor Licenses, Entertainment Permits, Inspections, and Penalties, and 3 Workgroup 4 PG 302–23 5 FOR the purpose of authorizing the holder of a Class B beer, wine, and liquor license, a 6 Class C (fraternal/sororal/service organization) beer, wine, and liquor license, and 7 a Class C (veterans’ organization or club) beer, wine, and liquor license in Prince 8 George’s County to serve beer, wine, and liquor by the glass or by the bottle for 9 on–premises consumption; authorizing the holder of a certain entertainment permit 10 to contract with one or more promoters to publicize, sell tickets for, organize, operate, 11 produce, or stage an event, which may include patron dancing and entertainment; 12 applying certain provisions relating to a certain entertainment permit to contracted 13 promoters; authorizing certain inspections of certain licensed premises by or on 14 2 HOUSE BILL 784 behalf of the Board of License Commissioners for Prince George’s County; limiting 1 the number of certain inspections; requiring a certain inspector to provide a report 2 of an inspection to the license holder and the Board within a certain time period; 3 requiring the Board each year to publish a list containing the number of inspections 4 conducted of each licensed premises in the previous calendar year; requiring the 5 Board to establish a certain fine structure and to publish and maintain a list of 6 penalties certain penalties and fines information for certain violations of alcoholic 7 beverages laws; establishing the Workgroup to Study Best Practices for Safe Event 8 Promotion and the Leveraging of Alcoholic Beverages Licenses in Prince George’s 9 County; and generally relating to alcoholic beverages in Prince George’s County and 10 the Workgroup to Study Best Practices for Safe Event Promotion and the Leveraging 11 of Alcoholic Beverages Licenses in Prince George’s County. 12 BY repealing and reenacting, without amendments, 13 Article – Alcoholic Beverages 14 Section 26–102 and, 26–902(a), 26–1011(a), and 26–1017(a) 15 Annotated Code of Maryland 16 (2016 Volume and 2022 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Alcoholic Beverages 19 Section 26–902(c), 26–1011(c), and 26–1017(c) and 26–1103 20 Annotated Code of Maryland 21 (2016 Volume and 2022 Supplement) 22 BY adding to 23 Article – Alcoholic Beverages 24 Section 26–2606 and 26–2803 25 Annotated Code of Maryland 26 (2016 Volume and 2022 Supplement) 27 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 28 That the Laws of Maryland read as follows: 29 Article – Alcoholic Beverages 30 26–102. 31 This title applies only in Prince George’s County. 32 26–902. 33 (a) There is a Class B beer, wine, and liquor license. 34 (c) (1) The license authorizes the license holder, at a hotel or restaurant at 35 retail at the place described in the license, to sell beer, wine, and liquor: 36 HOUSE BILL 784 3 (i) BY THE GLASS OR BY T HE BOTTLE for on–premises 1 consumption; and 2 (ii) subject to paragraph (2) of this subsection, for off–premises 3 consumption only: 4 1. from the main bar; and 5 2. in the main portion of the dining room facilities. 6 (2) The off–sale privilege set out in paragraph (1)(ii) of this subsection is 7 limited to those license holders who had the privilege on July 1, 1970. 8 26–1011. 9 (a) There is a Class C (fraternal/sororal/service organization) beer, wine, and 10 liquor license. 11 (c) (1) The license authorizes the license holder to sell beer, wine, and liquor BY 12 THE GLASS OR BY THE BOTTLE for on–premises consumption by a member or guest 13 accompanied by a member. 14 (2) The license holder may allow a person that has leased a private room or 15 other area of the licensed premises for a private social gathering to bring beer, wine, and 16 liquor onto the licensed premises for on–premises consumption. 17 26–1017. 18 (a) There is a Class C (veterans’ organization or club) beer, wine, and liquor 19 license. 20 (c) The license authorizes the license holder to sell beer, wine, and liquor BY THE 21 GLASS OR BY THE BOTT LE at retail at the place described in the license for on–premises 22 consumption. 23 26–1103. 24 (a) This section does not apply to a license holder that seeks to provide 25 entertainment if: 26 (1) the license of the license holder is issued under § 26–1003, § 26–1006, § 27 26–1008, § 26–1009, § 26–1010, § 26–1011, § 26–1014, § 26–1015, § 26–1016, § 26–1018.1, 28 or § 26–1616(h) of this title; or 29 (2) the license is a veterans or fraternal Class C license and the license 30 holder provides entertainment that: 31 4 HOUSE BILL 784 (i) is under the direct supervision of the license holder; 1 (ii) is for adults, children, and families of the organization or the 2 public; and 3 (iii) when offered, ends not later than midnight. 4 (b) There is an entertainment permit. 5 (c) The Board may issue the permit to a holder of a Class B (on–sale) license in 6 accordance with this section. 7 (d) (1) (i) Subject to subparagraph (ii) of this paragraph, the permit 8 authorizes the permit holder to: 9 1. impose a cover charge, offer facilities for patron dancing, 10 and provide entertainment; OR 11 2. CONTRACT WITH ONE OR MORE PROMOTERS TO 12 PUBLICIZE, SELL TICKETS FOR , ORGANIZE, OPERATE, PRODUCE, OR STAGE AN 13 EVENT, WHICH MAY INCLUDE PA TRON DANCING AND ENTERTAI NMENT. 14 (ii) The permit holder shall comply, AND ENSURE THAT ANY 15 CONTRACTED PROMOTER COMPLIES, with all requirements under county law, including 16 zoning and use and occupancy laws. 17 (2) The Board shall determine the number of days in a week that a permit 18 holder may exercise the privileges of the permit. 19 (3) The permit is in effect from 9 p.m. to 2 a.m. the following day. 20 (e) Before being issued the permit, an applicant shall: 21 (1) submit evidence to the satisfaction of the Board that: 22 (i) the applicant holds a Class B (on–sale) license; 23 (ii) there are no unpaid taxes due from the applicant to the State, 24 the county, or a municipal corporation; and 25 (iii) the applicant AND ANY CONTRACTED P ROMOTER meets all 26 other requirements for the permit; and 27 HOUSE BILL 784 5 (2) (i) IN CONSULTATION WITH ANY CONTRACTED PROMO TER, 1 develop a security plan to prevent the premises for which the permit is sought from posing 2 a threat to the peace and safety of the surrounding area; and 3 (ii) submit the plan for review to the Board and the Chief of the 4 County Police Department. 5 (f) (1) The Chief of the County Police Department may submit comments to 6 the Board on the adequacy of the security plan within 30 days after receipt of the security 7 plan. 8 (2) The Board shall consider the comments, if any, of the Chief of the 9 County Police Department and subsequently issue the permit, refuse to issue the permit, 10 or condition the issuance of the permit on changes to the security plan. 11 (3) If the Board issues the permit with a security plan that the Chief of the 12 County Police Department does not support, the Board shall specify in writing to the Chief 13 of the County Police Department the reasons why the Board has determined that the 14 security plan is adequate. 15 (g) (1) Before issuing the permit, the Board shall hold a public hearing in 16 accordance with the requirements for a public hearing on an application for a license under 17 § 26–1511 of this title. 18 (2) At the public hearing, the Board shall give the applicant, supporters of 19 the applicant, and opponents of the applicant an opportunity to be heard. 20 (3) In making its determination whether to approve the application and 21 issue the permit, the Board shall consider whether: 22 (i) approval and issuance of the permit is necessary for the 23 accommodation of the public; 24 (ii) the applicant is a fit person to receive the permit; 25 (iii) the applicant has made a material false statement in the 26 application; 27 (iv) the applicant has committed any fraudulent act in connection 28 with the application; 29 (v) the operation of the business, if the permit is issued, will unduly 30 disturb the peace of the residents of the neighborhood where the place of business is located 31 or to be located; and 32 (vi) there are any other reasons that justify the disapproval of the 33 application or the refusal to issue the permit. 34 6 HOUSE BILL 784 (4) The Board shall hold a similar public hearing on receipt of a petition to: 1 (i) revoke the permit; or 2 (ii) protest the renewal of the permit. 3 (h) The permit holder AND ANY CONTRACTED P ROMOTER: 4 (1) shall implement and follow the approved security plan described under 5 subsection (e)(2) of this section at all times when the permit holder exercises the privileges 6 of the permit; 7 (2) when the privileges authorized by the permit are being exercised, may 8 not allow an individual who is under the age of 21 years on the premises for which the 9 permit is issued unless the individual is employed by or is an immediate family member of 10 the permit holder; and 11 (3) may employ sworn security personnel as part of the security plan 12 described under subsection (e)(2) of this section if the sworn security personnel have full 13 police powers in the jurisdiction where the premises of the permit holder is located. 14 (i) The Board at any time may prohibit, condition, or restrict the type of 15 entertainment offered by a permit holder, including lewd, exotic, loud, or raucous 16 entertainment, if after a hearing the Board determines that the entertainment: 17 (1) adversely impacts or unduly disturbs the community; and 18 (2) is not conducive to the peace, health, welfare, or safety of the residents 19 of the county. 20 (j) (1) Subject to paragraph (2) of this subsection, the Board may immediately 21 suspend the permit if the Board reasonably believes that the permit holder OR A 22 CONTRACTED PROMOTER : 23 (i) violated this section; or 24 (ii) is not in compliance with a county zoning property standard or 25 use and occupancy requirement. 26 (2) If the Board immediately suspends a permit, the Board shall: 27 (i) give the permit holder notice of the suspension and a hearing on 28 the suspension at which the permit holder may be heard and present evidence; and 29 (ii) hold the hearing within 30 days after the suspension is imposed. 30 HOUSE BILL 784 7 (k) (1) At the hearing, the Board shall determine: 1 (i) whether the permit holder violated this section or other law; and 2 (ii) if a violation occurred, what penalty to impose among those listed 3 in paragraphs (2) and (3) of this subsection. 4 (2) Subject to paragraph (3) of this subsection, if the Board finds that a 5 person has violated this section or any other law, the Board: 6 (i) may revoke or continue the suspension of the permit; and 7 (ii) shall impose on the person a penalty of: 8 1. for a first offense, at least $1,000 but not more than 9 $12,500; and 10 2. for each subsequent offense, at least $5,000. 11 (3) The Board: 12 (i) shall revoke the permit of a person who the Board determines 13 violated this section or any other law twice in 24 months; and 14 (ii) may not consider an application from the person for a new permit 15 or an application for a new permit for the premises that was the subject of the revocation 16 until at least 12 months after the order of revocation is issued. 17 (4) If the Board determines that the permit holder did not violate this 18 section, the Board shall immediately reinstate the permit. 19 (l) (1) The circuit court may issue a temporary restraining order to 20 immediately close to the public the entire operation of the premises if the county establishes 21 that: 22 (i) the security plan described under subsection (e)(2) of this section 23 has not been implemented; and 24 (ii) the public health, safety, or welfare requires emergency action. 25 (2) On issuance of a temporary restraining order under paragraph (1) of 26 this subsection, the county shall give the permit holder written notice of and reasons for 27 the closure. 28 8 HOUSE BILL 784 (3) The permit holder promptly shall be given an opportunity for a hearing 1 in circuit court on the granting of the temporary restraining order in accordance with Title 2 15, Chapter 500 of the Maryland Rules. 3 (m) The Board shall adopt regulations to carry out this section. 4 (n) The annual fee for the permit is $1,500, which is in addition to the annual fee 5 for the Class B license. 6 26–2606. 7 (A) (1) THIS SECTION APPLIES ONLY TO INSPECTIONS PERFORMED BY OR 8 ON BEHALF OF THE BOARD. 9 (2) UNLESS THE INSPECTION IS PERFORMED ON BEHALF OF THE 10 BOARD AND DOES NOT RE LATE TO HEALTH AND S AFETY, THIS SECTION DOES NO T 11 APPLY TO INSPECTIONS CONDUCTED BY ONE OR MORE OF THE FOLLOWIN G 12 PERSONS: 13 (I) A POLICE DEPARTMENT ; 14 (II) A FIRE DEPARTMENT OR FIRE INSPECTOR ; OR 15 (III) A HEALTH DEPARTMENT . 16 (B) AN INSPECTION OF A LI CENSED PREMISES MAY BE CONDUCTED WITH 17 OR WITHOUT PRIOR NOT ICE IN ORDER TO: 18 (1) PROVIDE ASSISTANCE T O THE BOARD IN ANY MATTER 19 PERTAINING TO ALCOHO LIC BEVERAGES ; 20 (2) CONDUCT BACKGROUND I NVESTIGATIONS AND CRIMINAL 21 HISTORY RECORDS CHEC KS ON ALL LICENSE AP PLICANTS; 22 (3) MAKE ROUTINE INSPECT IONS OF LICENSED EST ABLISHMENTS IN 23 THE COUNTY TO ENSURE THAT THEY ARE IN COM PLIANCE WITH ALL APP ROPRIATE 24 STATE LAWS, LOCAL LAWS, RESTRICTIONS , AND BOARD RULES AND REGUL ATIONS; 25 (4) COORDINATE INFORMATI ON WITH OTHER APPROP RIATE 26 REGULATORY AGENCIES ; 27 (5) TAKE APPROPRIATE ACT ION ON ANY WRITTEN R EPORT OF 28 VIOLATIONS FORWARDED BY A UNIFORMED OFFIC ER OF A MUNICIPAL OR COUNTY 29 POLICE DEPARTMENT , THE MARYLAND–NATIONAL CAPITAL PARK POLICE, OR THE 30 STATE POLICE; 31 HOUSE BILL 784 9 (6) INVESTIGATE COMPLAIN TS MADE AGAINST A LI CENSED 1 ESTABLISHMENT ; OR 2 (7) INITIATE COVERT INSP ECTIONS AND INVESTIG ATIONS OF 3 LICENSED ESTABLISHME NTS THAT MAY BE NECE SSARY TO ENSURE COMP LIANCE OR 4 TO PROVE OR DISPROVE ALLEGED VIOLATIONS . 5 (C) EXCEPT FOR AN INSPECT ION CONDUCTED IN RES PONSE TO A 6 COMPLAINT, THE BOARD MAY NOT CONDUCT AN INSPECTION OF A L ICENSED 7 PREMISES MORE THAN T WO TIMES IN A CALEND AR MONTH WITHOUT THE PRIOR 8 CONSENT OF THE LICEN SE HOLDER. 9 (D) EXCEPT FOR INSPECTIONS CONDUCTE D IN ACCORDANCE WITH 10 SUBSECTION (B)(7) OF THIS SECTION, WITHIN WITHIN 2 5 BUSINESS DAYS AFTER AN 11 INSPECTION UNDER THI S SECTION, THE INSPECTOR SHALL PROVIDE TO THE 12 LICENSE HOLDER AND T HE BOARD A REPORT OF THE INSPECTION. 13 (E) (D) ON OR BEFORE DECEMBER 31 EACH YEAR, THE BOARD SHALL 14 PUBLISH ON THE BOARD’S WEBSITE A LIST OF THE TOTAL NUMBER OF INSPECTIONS 15 CONDUCTED OF EACH LI CENSED PREMISES BY T HE BOARD IN THE PRIOR CA LENDAR 16 YEAR. 17 26–2803. 18 (A) THE BOARD SHALL ESTABLISH A STANDARD FINE ST RUCTURE FOR 19 VIOLATIONS OF THIS T ITLE THAT GIVES THE BOARD FLEXIBILITY TO CONSIDER 20 AGGRAVATING OR MITIG ATING FACTORS WHEN D ETERMINING THE AMOUN T OF A 21 FINE IMPOSED UNDER T HIS TITLE. 22 (B) THE BOARD SHALL PUBLISH MONTHLY AND MAINTAIN ON ITS WEBSITE: 23 (1) A LIST OF PENALTIES FOR VIO LATIONS OF THIS TITL E; AND 24 (2) THE STANDARD FINE ST RUCTURE ESTABLISHED UNDER 25 SUBSECTION (A) OF THIS SECTION , INCLUDING A LIST OF AGGRAVATING AND 26 MITIGATING FACTORS T HAT THE BOARD MAY CONSIDER WH EN DETERMINING THE 27 AMOUNT OF A FI NE IMPOSED UNDER THI S TITLE. 28 SECTION 2. AND BE IT FURTHER ENACTED, That: 29 (a) There is a Workgroup to Study Best Practices for Safe Event Promotion and 30 the Leveraging of Alcoholic Beverages Licenses in Prince George’s County. 31 10 HOUSE BILL 784 (b) The Workgroup consists of the following members: 1 (1) the Chair of the Prince George’s County Senate Delegation, or the 2 Chair’s designee; 3 (2) the Chair of the Prince George’s County House Delegation, or the 4 Chair’s designee; 5 (3) the Chair of the Prince George’s County Council, or the Chair’s 6 designee; 7 (4) the State’s Attorney for Prince George’s County, or the State’s 8 Attorney’s designee; 9 (5) the Chair of the Board of License Commissioners for Prince George’s 10 County, or the Chair’s designee; 11 (6) the Director of the Board of License Commissioners for Prince George’s 12 County, or the Director’s designee; 13 (7) the following members, appointed by the County Executive of Prince 14 George’s County: 15 (i) one representative of the Prince George’s County Police 16 Department; 17 (ii) one representative of the Prince George’s County Fire 18 Department; and 19 (iii) one representative of the Prince George’s County Permitting, 20 Inspections and Enforcement Department; and 21 (7) (8) the following members, appointed by the Chair of the Prince George’s 22 County House Delegation: 23 (i) one individual who is knowledgeable of the event promotion 24 industry in Prince George’s County; 25 (ii) one individual who is a current holder of an entertainment 26 permit under § 26–1103 of the Alcoholic Beverages Article; and 27 (iii) one individual who is a former holder of an entertainment permit 28 under § 26–1103 of the Alcoholic Beverages Article. 29 (c) The Chair of the Prince George’s County House Delegation shall designate the 30 chair of Chair of the Board of License Commissioners for Prince George’s County, or the 31 Chair’s designee, shall chair the Workgroup. 32 HOUSE BILL 784 11 (d) The Prince George’s County House Delegation Board of License 1 Commissioners for Prince George’s County shall provide staff for the Workgroup. 2 (e) A member of the Workgroup or any subgroup established under subsection (g) 3 of this section: 4 (1) may not receive compensation as a member of the Workgroup or 5 subgroup; but 6 (2) is entitled to reimbursement for expenses under the Standard State 7 Travel Regulations, as provided in the State budget. 8 (f) The Workgroup shall: 9 (1) identify any current barriers to safe event promotion in Prince George’s 10 County; 11 (2) identify available options for safe event promotion activities and 12 promotion restrictions; 13 (3) review current and previous practices of event promotion; and 14 (4) make recommendations on best practices for safe event promotion and 15 the feasibility of permitting event promoters in Prince George’s County; and 16 (5) examine how other counties in the State leverage alcoholic beverages 17 licenses to generate revenue for their county. 18 (g) (1) The Workgroup may establish a subgroup within the Workgroup to 19 assist the Workgroup in carrying out its duties, including by conducting research and 20 producing reports. 21 (2) A subgroup established under paragraph (1) of this subsection may 22 include an individual who is not a member of the Workgroup, including a representative of 23 an insurance carrier or any other relevant expert. 24 (h) On or before December 1, 2024, the Workgroup shall report its findings and 25 recommendations to the Chair of the Prince George’s County Council and the County 26 Executive of Prince George’s County and, in accordance with § 2–1257 of the State 27 Government Article, the Chair of the Prince George’s County Senate Delegation and the 28 Chair of the Prince George’s County House Delegation. 29 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 30 July 1, 2023. Section 2 of this Act shall remain effective for a period of 2 years and, at the 31 end of June 30, 2025, Section 2 of this Act, with no further action required by the General 32 Assembly, shall be abrogated and of no further force and effect. 33